IP Democracy: Must-Read: Mermigas Interview with Freston

Diane Mermigas at the Hollywood Reporter is looking at the new split-in-two Viacom, and has this in-depth interview with Tom Freston, who is heading up Viacom (the entertainment/cable arm that retains the name of its predecessor as opposed to the Viacom-CBS spin-off) and is on a high following his negotiations to buy DreamWorks. Freston lays out his strategy for growing the company in the new IP media world.

Viacom is poised to capture a big chunk of the new media marketplace and Freston is optimistic about a range of mobile and IP-based video initiatives.

Freston’s confidence also is buttressed by the fact that MTV Networks’ new-media ventures generate $500 million of the new Viacom’s more than $8 billion in annual revenue, with more than $100 million coming from global wireless services. Its new digital businesses are growing at better than 50% annually compared with the overall 14% annual growth of the new Viacom’s core businesses, Freston says. MTV Networks has 112 global channels (20 of which were launched outside the U.S. this year) and 95 Web sites, and broadband services operating in 160 countries and serving 430 million households. It also has 50 wireless alliances serving 700 million wireless users. Online revenue is headed toward $500 million a year worldwide. And that’s just the beginning, Freston says.

Two interesting heads-up items in the piece: Viacom is planning to launch a social networking service that ties together the company’s vast youth-oriented properties and an iPod-esque (if not an iPod per se) service for Viacom TV shows is in a “test mode” at the company.

Posted by Cynthia Brumfield on December 16, 2005 10:52 AM to IP Democracy