Viacom vs. Vertigo

2. VIACOM- THE HISTORY
In 1971, Viacom establishes itself as a public company, after previously being
apart of Columbia Broadcasting System (CBS).
In 1985, Viacom comes to own 66% of MTV Networks. By 1986, Viacom have
bought the remaining 34% of MTV. This set them back $185,000.
In 1987, National Amusements, Inc., acquires 83% of Viacom.
In 1994, Viacom completes a $9.9 billion merger with Paramount
communications. In 2006 Paramount pictures acquires DreamWorks.
In 1999, Viacom starts trading on the New York stock exchange.
In 2000, Viacom completes a $39.8 billion merger with CBS Corporation.
In 2003, Viacom purchases the remaining 50% interest in Comedy Central for
$1.2 billion.
Now, Viacom has forms Viacom International Media Networks (VIMN)

3. WHERE IN THE WORLD?
Where its based? New York
Where it has relations? :
A joint venture with TV-18 in India
Viacom expanded MTV and launched MTV Europe.
MTVN launches a MTV base in Africa. They also had a joint venture MTV group
Japan.

4. WHO OWNS VIACOM? WHAT VIACOM OWNS?
Viacom is owned by a number of people. Phillip Dauman is the president and the CEO
since 2006. Robert Bakish holds the same position, but for Viacom International
Media Networks.
Viacom is known as the ‘parent company’, meaning no one owns it, but it owns many
other companies, all in different media sectors. These include:
Directors cuts
production music The extreme music library
Publishing www.comedycentral.com
MTV Radio
www.addictin
Radio Online ggames.com
BET Radio Viacom www.atomfilms.co
m
MTV Films
MTV
TV Film
Paramount comedy
Paramount
Nickelodeon Comedy Pictures

5. STRUCTURE
Paranormal
Activity 2
Paramount
Pictures
Paramount Jackass 3D
Epix
Viacom Logo design-
‘Ezee
Trophies’
Nickelodeon TV success
Teenage
mutant ninja
turtles!

6. Paranormal Activity 2 trailer
http://www.youtube.com/watch?v=07XbSk7Rjt4&ob=av3e

7. VIACOM PRODUCTS
Addicting Games
Comedy Central
MTV
Nickelodeon/ Nick Jr
Paramount Pictures
MTV Films
Neopets

8. VIACOM NEWS
http://topics.nytimes.com/top/news/business/companies/viacom_inc/index.html
http://articles.chicagotribune.com/keyword/viacom
The New York Times: Viacom Inc.
The New York Times has an article called Viacom Inc. that describes the
company. ‘It’s an entertainment content company that provides
programming for cable and satellite television, motion pictures and
digital products.’
Chicago Tribune: Viacom to sell TV stations
The Chicago Tribune has an article called ‘Viacom to sell TV stations’
which explains how they wanted to sell their television networks.
‘Viacom is interested in selling the stations at a price close to $400
million.’

9. VERTIGO- THE HISTORY
Vertigo is the independent company that we have decided to look at.
A brief history of Vertigo.
Vertigo Films was founded in July 2002 to create and distribute
commercially driven independent cinema. It was created by Nick Love,
James Richardson, Rupert Preston and Rob Morgan.
Its current goal is to produce and distribute four films per year.
Vertigo currently has 36 films out on DVD. They have even set up their own
Youtube channel, Facebook page and twitter Facebook page.
2010 was an extremely special year for Vertigo. They distributed Europe’s
3D live action movie – Streetdance 3D, entering the UK box office at
number 1 beating Disney’s Prince of Persia and becoming one of the
most successful UK independent films of all time as it opened around
the world.
Where they are based.
Vertigo films are based in Kentish town, London.
Link to twitter page: https://twitter.com/#!/vertigofilms

10. STRUCTURE
Key players:
Nick Love (Writer/Director/Producer)
Allan Niblo (Producer)
James Richardson (Producer)
Rupert Preston (Oversees distribution activities but also acts as Producer)
Rob Morgan (Managing Director)
Nigel Williams (Pursued a number of business interests across film,
property and investment management)

11. BUSINESS ACTIVITY
Big screen adaptation for THE SWEENEY, and the production of
Streetdance 2 is currently in progress.
Vertigo Owns The Post Republic, which is a state of the art post production
company based in Berlin.
Vertigo is also partnered with Protagonist Pictures, which is a distribution
company.
Vertigo also partnered with LA based 3D experts Paradise FX and they set
up PFXE, which is considered Europe’s most experiences 3D facilities
Other Links:
company.
Protagonist Pictures: www.protagonistpictures.com
The Post Republic: www.post-republic.de
Screen WM: www.screemwm.co.uk
EM Media: www.em-media.org,uk
Film 4: www.filmfour.com
bLinQue LONDON: www.blinque.co.uk

12. PRODUCTS
• Point blank
• Street Dance 3D
• The Firm
• Wakewood
• The Children
• Outlaw
• Retreat

13. STREET DANCE 3D TRAILER
http://www.youtube.com/watch?v=cra8n0h3VAY&feature=fvsr

14. NEWSWORTHY?
http://search.proquest.com/uknews/docview/250296534/1331C4AECC928199C93/
1?accountid=17037
‘The producer, London independent production company Vertigo Films with the
BBC, could scarcely have dreamt how street dance would win the nation's
hearts when they conceived the project two years ago’
http://search.proquest.com/uknews/docview/517384309/1331C5A284561E938D4/
6?accountid=17037
‘And makers Vertigo Film are said to be looking for British talent to play Henry
and his pals.
Director Nick Moore, who made his debut with teen movie Wild Child, said: "We
are very excited at the prospect of creating something wonderful that will
delight Henry's existing fans as well as introducing him to a whole new
audience.”’

15. CONCERNS
As with any independent company, the main concern is that Vertigo will
release too many risky movies, and then go bankrupt.
Another concern is being bought out by a conglomerate, which probably
won’t happen with Vertigo
Production of The Sweeney. Originally DNA, who are owned by Fox
Searchlight, who are a subsidiary of NewsCorp owned the rights to The
Sweeney. Vertigo and DNA were going to make the film together. After
years of pre-production, DNA started to get nervous about budgets and
the cast. So eventually, DNA pulled out, Vertigo bought the rights as a
cost and now Vertigo are making the film themselves. They still have a
connection with DNA during the distribution. The concern here is if The
Sweeney is a flop, then Vertigo will lose money.

16. VIACOM VS. VERTIGO
There are many differences between Viacom and Vertigo, but the main
differences are the size difference and money. Because Viacom has so
much money, they have bigger production values, better marketing and
distribution, which can lead to globalization, because they have the
money to distribute their products worldwide.
However, Vertigo has a much smaller budget on their movies, meaning
there will be less of a range of products, mainly because they don’t
have the money to produce different genres with too many screen plays
and CGI effects, because they would have to pay another company to
do the effects. However, another difference between Vertigo and Viacom
is that Viacom has cross media ownership, meaning they own different
companies which produce difference products for the media industry.
For example, Viacom owns distribution companies, marketing
companies etc., because they have subsidiaries such as paramount
pictures. This means there are no extra costs to pay for a company.

17. VIACOM VS. VERTIGO
The way in which both a conglomerate and a independent company advertises
is also different, and this is due to money. Viacom are able to advertise their
products on TV, and also during peak times, when more people watch TV.
Viacom can also potentially sell advertising space to their competitors: The
rest of the ‘Big 6’ and independent companies, such as Vertigo. This is
vertical integration because they can support each other and their small
companies. This is an advantage to conglomerates because if they have a
business idea which goes wrong, they have their other companies to
supports them, and even though they will lose money, they will not go
bankrupt.
However, if Vertigo were to have a business idea that doesn’t work, they will
have nobody to help and they business will go bankrupt. Vertigo also
doesn’t have enough money to buy advertising space on TV, so they have
to advertise cheaply. This means via social networking sites, such as
Facebook and MySpace pages. Though they have no choice but to
advertise cheaply, they are trying hard to compete with the conglomerates.
An example of this is Street Dance 3D, as this went to America and made
more money than most of their other business ventures did.
Another part of the media industry that conglomerates can achieve is
horizontal integration, unlike independent companies. Viacom owns MTV,
comedy central and Nickelodeon. All of these produce different genres of
TV shows: MTV does some real life programs, comedy central does
comedy (duh!) and Nickelodeon makes children's programs. This is so they

18. VIACOM VS. VERTIGO
Viacom is also an example of a monopoly. They bought out MTV Networks
in two stages. The first in a chunk of 66%, and the next in 34%. This is
also an example of a takeover. This is a disadvantage to the audience
because people will have less variety and a choice in what they get to
watch. This also links with Viacom being an oligopoly because they are
one of the big 6, who between them own the majority of media sectors,
if not all. This doesn’t really apply to an independent company because
they do not have enough money to take over other businesses.
However, they do have ‘alliances’ with other companies, such as
Protagonist Pictures.