Viacom CFO Wade Davis Sees Strong Future in 'Free Price Point' TV Bundles
*By Chloe Aiello*
Viacom CFO Wade Davis says the company's recent acquisition of Pluto TV gives it a competitive advantage as it vies for consumers in a saturated market.
"The market for video products has been segmenting for some time now," Davis told Cheddar Tuesday. "With this segmentation, consumers have become a lot more value conscious, and we think that that underscores the opportunity in what we talk about as the free price point."
Last month, Viacom ($VIA) acquired Pluto, a free, ad-supported streaming platform, for $340 million. It claims an audience of 12 million, and differs from other free platforms like YouTube, because it offers traditional television channels, rather than user-generated content. (*Disclosure: Cheddar is a streaming partner of Pluto.*)
"One of the things that really differentiates Pluto is the fact that, although it has a big on-demand library ... the majority of its content consumption is on its linear channels-like experience. And so, we view having a very familiar TV-like interface as a very differentiating part of the offering."
When asked whether Viacom would launch its own subscription streaming service to rival the likes of Netflix (NFLX) or Hulu, Davis said Viacom already has "very targeted subscription streaming offerings," like Noggin, Comedy Central Now, NickHits, and a [recently announced MTV streaming](https://www.theverge.com/2019/2/4/18210646/mtv-play-uk-app-viacom-streaming-ott-services) offering.
Pluto "can be used to upsell and can also be used to manage churn out of subscription products," Davis added.
Viacom reported mixed earnings and revenue on before the bell on Tuesday. The media giant beat earnings forecast by Wall Street analysts, but slightly missed on revenue due to weak ad sales, [Viacom reported](https://ir.viacom.com/static-files/2794cb8a-0b40-4eef-9c8b-c969cc7b0d33). Davis said the company expects comparable performance next quarter.
"Once you take into account the effect of Easter that's going to impact the second quarter negatively. But we are still seeing a projection for full-year growth overall for domestic ad-sales," Davis said, adding that growth in the second year could offset some of the softness in the first half.
For full interview [click here](https://cheddar.com/videos/viacom-cfo-wade-davis-after-earnings-expect-ad-revenues-to-grow-this-year).
Nvidia on Wednesday became the first public company to reach a market capitalization of $5 trillion. The ravenous appetite for the Silicon Valley company’s chips is the main reason that the company’s stock price has increased so rapidly since early 2023.
Chris Williamson, Chief Business Economist at S&P Global, breaks down September’s CPI print and inflation trends, explaining what it means for markets.
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
