Viacom's weak link grows a bit stronger
Article Abstract:
Viacom Inc's new business plan for Blockbuster has yielded modest gains for the video rental unit, helping prepare for the 20% spinoff planned for early 1999. Under the new plan, Blockbuster now buys tapes for $7 per cassette from the studios and shares the rental revenue with them, allowing it to carry more tapes than it did when it purchased tapes for $65 each and kept all rental fees. Blockbuster has been drawing in record numbers of customers, and could account for $550 million of Viacom's $2 billion in cash flow for 1998. In 1997, Blockbuster revenues were only $425 million. However, some analysts predict high marketing costs will diminish the video rental chain's profitability.
Comment:
Sees slight improvement in earnings from new business plan, preparing for 20% spin-off in 1999
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
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BET to establish a film unit aimed at black urban market
Article Abstract:
Black Entertainment Television (BET), the first black-owned cable network, will produce low-budget films with black stars that will be targeted at the black urban market. Production and financing will be done by African-Americans in the first black-owned company to have complete ownership rights to its films. Each film would cost about $3 million and have a $2 million advertising budget. The new film company, which also will produce 10 made-for-television films each year at a cost of $1 million each, will show its films in new theaters that have recently been built in predominantly black urban areas.
Comment:
Will create a new film company with low-budget films targeted at the black urban market
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
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Enigmatic architect of a cable resurgence
Article Abstract:
Tele-Communications Inc. president Leo J. Hindery Jr. has helped TCI reduce its debt and improve its stock price since he came to the company in early 1997. TCI's debt has been cut by 32% to a total of $9.6 billion by selling off some of its cable television operations, consolidating service to around 10 million homes in 10 states instead of the previous 24 states. Hinery's style is different than outspoken CEO John C. Malone and he has sought to maintain good relations with government regulators.
Comment:
TCI president Leo J. Hindery has overseen reduction of debt and increase in stock value
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
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