Business Storytelling LP Portfolio Project 2

8/9/2019 Business Storytelling LP Portfolio Project 2

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TheBirthJOHN MALONE AND ROBERTJOHNSON RECALL THE LONG,WINDING ROAD TO VIACOM

he in i l ia l im etus that he l ed tu rn Black r.n terta inn i t 'n l Te levi-

BET's beadquarters in W ashington, D.C.

ro ra m m in a d ec i s io n t h a t h a s d ra wn so m e c r i t i c ism o ve r th e e a rs .


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SPRING 2012THE LOREM IPSUMS

L E A D E R S H I P P O R T F O L I O

History

In 1979, thirty-one years ago, the

concept for a company was

born and has since developed

into a household name. The

company was originally based

on an idea centered in serving

senior citizens, which was later

reconceived to exist as

designated and wholly definedby its name: Black Entertainment

Television (BET). Then privately

owned by Robert Johnson, who

saw to it that the company

break-ground 1 year later on

January 25, 1980 at One BET

Plaza in Washington, D.C.

John Malone, CEO of Tele-

Communications Inc., would help

by loaning Johnson $500,000

dollars in seed money that wouldgarner him a 20% stake in the

company. As a principle investor,

Malone would then provide

Johnson with sage advice to

get revenues up and keep costs

down (BET Holdings, Inc., 1995).

Advice that Johnson would

follow to the letter and that

would pay very lucratively in the

end.

Corporate Background

Information

The BET Networks, is currently owned by Viacom Inc.They staff 465 employees. While, their mainheadquarters is located in Washington D.C., they also

have offices in New York, Los Angeles, C.A., andChicago, IL. The company is public, bearing the NewYork Stock Exchange ticker symbols: VIA & VIA.B.

http://bet.mediaroom.com/index.php?s=38


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Product Portfolio / Brand Hierarchy

BET Networks (Viacom), consists of multiple service areas that include:

BET

BET provides contemporary entertainment for African Americans from an

authentic, unapologetic viewpoint of the Black experience. It provides hitmusic, entertainment and news.

BET JBET J is for a multicultural audience delivering R&B, soul, jazz and worldmusic along with movies, riveting talk shows, concerts and in-depth

interviews.

BET GOSPEL

BET Gospel features a mixture of current and vintage shows and originagospel-oriented programming.

BET HomeEntertainment

BET branded DVD content includes off-network shows, acquisitions, originadirect-to-video releases and exclusive BET Official CD/DVD 2-pack producline.

BET International

BET International is licensing BET content to television broadcasters on

multiple platforms, developing distribution opportunities for 24-hour BETbranded networks and adding locally derived content to the US mix - all toserve consumers of black culture globally.

BET RadioNetwork

BET Radio Network is available in more than 50 markets nationwide andoffers stations and listeners a variety of programming that includesentertainment news, celebrity interviews and special events coverage.

BET FoundationThe BET Foundation is a non-profit organization created to raise publicawareness to the numerous health-related challenges within African-

American community.

Rap-It-UpPartnership with the Kaiser Family Foundation, RAP-IT-UP is BETs call-to-action public education campaign designed to address the HIV/AIDS

epidemic within the African American community.

BET Event

Productions

BEP offers a full range of event production services, including event

management; venue selection; talent recruitment; sound, light, and stage

production.


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Between 2008 and 2009, there was a 26% decrease in operating income, which translated into a

decline from $792 million dollars to $586 million dollars. According to Viacom, the decline wasdue to lower year-over-year revenues, which more than offset a $352 million dollars net

reduction in expenses in the quarter (Retrieved from Website: http://www.Viacom.com). Net

earnings from continuing operations attributable to Viacom dropped by 32%, reducing quarterly

earnings from $454 million dollars to $277 million dollars. The diluted EPS was adjusted by $0.03,

from $0.46 - $0.49 to account for severance charges, reducing earnings per share by 23%.

Those challenges associated with the recession and endured by the country had a major

impact on companies like Viacom bottom line. Contrarily, while the risks associated with therecession were unavoidable the impact of the risks could have been somewhat mitigated. In

fact, according to President and CEO of Viacom, Philippe Dauman, While the global economy

continued to be a challenge in the second quarter, the diversity of our revenue streams,sequential improvement in our domestic advertising sales, our generation of cash and our

operational discipline all helped to temper the short-term impact. As we look to a longer-term

recovery, we continue to manage costs aggressively and make changes in the business that will

better position Viacom for growth. Importantly, our efforts to reinvigorate our cable networks,

and record-breaking results for several of our tent-pole events, including theMTV Movie Awards

and BET Awards 09.

Paramount Pictures performance in the second quarter was highlighted by the box

office success of its tent-pole films STAR TREK and Transformers: Revenge of the Fallen. Both films

are unqualified blockbusters that will generate substantial profit as they move through their

windows (Retrieved from Website: www.Viacom.com).

Annual Revenue

BET Networks (Viacom), is a publicly owned company that has more than 89 millionsubscribers and reaches 31 million households between the United States, Canada, the

Caribbean, the United Kingdom, and sub-Saharan Africa.

According to recent second quarter results in 2009, there was a decline by 14% from$3.86 billion dollars to $3.30 billion dollars. This decline in revenues was a direct effect of a

recession that rendered the following results:


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Market Research

BET Networks (Viacom), target market is centered in providing media andentertainment for African Americans. The demographic of the brand ranges broadly from

18-54 years of age. Median income, education, and lifestyle is undocumented. However,

BETs brand is widely varied and spans across the globe, reaching audiences in the U.S.,Canada, and the Caribbean. An international presence has also been established in theU.K. and Japan.

BET Networks (Viacom), have but a few competing interests in the market:

Networks Stock

Symbol

Exchange Price Change Growth (%)

BET Networks (Viacom) VIA NYSE $25.48 0.13(0.50%)

0

BET Networks (Viacom) VIA.B NYSE $24.20 0.1(0.41%) 0

NUE TV N/A N/A N/A N/A N/A

Black Family Channel N/A N/A N/A N/A N/A

TV One (Radio One & Comcast) CMCSA NASDAQ $14.81 0.14(0.94%)

7.1%

TV One (Radio One & Comcast) CMCSK NASDAQ $14.01 0.09(0.64%)

7.1%

Better Black Television N/A N/A N/A N/A N/A

In the case of New Urban Entertainment Television (NUE-TV), it was in existence for as little

as two years (July 17, 2000 October 31, 2002), targeting mature African-American audiences,

before permanently shutting down due to financial difficulties.

The Black Family Channel, an African American owned, cable television network, was in

existence for approximately 8 years (founded in 1999 May 1, 2007). Dealing exclusively with

gospel music, they struck a deal and sold their programming rights to the Gospel Music Channel.

Better Black Television, a recently created broadcasting network, is set to launch in the

year 2010. The principal founder of the company is Percy Miller (rapper Master P). The company

has yet to break-ground.

Which leaves TV One, the cable television networking company based in Silver Spring,

Maryland. They, too, target an African American audience, but deal more in the way of

lifestyle and entertainment oriented shows. The company has been around for 5 years, having

launched in January 2004. TV One is co-owned by Radio One and Comcast.

The results of the market research conducted in this case, brings me to one conclusion.

That, as it stands, BET Networks (Viacom) is off in the running as the top cable television network

in the country, targeting an African American audience. The only other company to come close

is TV One because Better Black Television has yet to break-ground.


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Brand Messaging

BET Networking (Viacom), mission statement is as follows: The nations leading

provider of quality entertainment, music, new, and public affairs television programming for

the African-American audience (Retrieved from Website: www.bet.com). Based on theirbroad array of digital networks- BET J, BET Gospel, and BET Hip-Hop, just to name a few, theyare certainly a premiere one-stop shop for African-American related broadcast. Also,

measuring from the competition, it goes without question that BET Networking (Viacom) is theleading provider of quality entertainment.

Stephen Hill, BET Networks (Viacom) current President of Music Programming &

Specials, touches on some very important company values respective of the brandmessage. Take a look at:

http://www.artistshousemusic.org/videos/black+entertainment+television

Stephen s style of storytelling is what is described in Stephen Dennings book, The Leaders

Guide to Storytelling: Mastering The Art and Discipline of Business Narrative, as plain, simpleand direct (p. 26). According to Denning, it is this type of storytelling that is most effective.Stephen expresses his ideas and thoughts clearly, concisely, and without sounding canned.He seems himself and comfortably engaged in what appears to be a one-on-one

conversation with the person interviewing him.


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In conclusion, BET Network (Viacom), has come a really long way since its inception in

1980. It started out with but a few employees and has since quadrupled in number. Its

founder, Robert L. Johnson, would launch the company with a lowly $15,000 that wouldgarner him billions upon his departure. The company and brand would pervade the minds of

millions and emerge as one of the largest niche market cable television networks in theworld. Simply put, John Malones sage advice to get revenues up and keep costs downprovided Johnson with just enough insight to garner him the success that it did. By 2001, the

brand had expanded into radio, movies, books, and the Internet.. Johnson would not onlyreap the benefits of a very lucrative pay-off, but would effectively parlay it into a wide rangeof other financial interests like real estate, hotels, fast food, gaming, and entertainment, asthe first African American billionaire.

Viacom would take the reigns thereafter and see to it that the companys forward

momentum continued. A momentum that would shelter them through a storm, as it was BETand MTVs increased ratings that would contribute to first quarter gains in ad revenues, whileconversely serving as a bulwark in mitigating some of the tension caused by the recession.Despite fourth quarter declines, their ratings would lend itself to Viacoms growth in profits,

which tripled overall. So, even in the face of difficult financial times, BET Networks (Viacom)would prove itself as nothing less than a premiere niche market cable television network.


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References

Artists House Music. Retrieved August 14, 2009 fromhttp://www.artistshousemusic.org/videos/black+entertainment+television

BET Holdings, Inc. (1995). Retrieved August 14, 2009 fromhttp://www.fundinguniverse.com/company-histories/BET-Holdings-Inc-Company-

History.html

Black Entertainment Television. Retrieved August 14, 2009 from http://www.bet.com/

Denning, S. (2005). The leaders guide to storytelling: mastering the art and discipline ofbusiness

narrative. Jossey Bass.

Encyclopedia Britannica. Retrieved August 16, 2009 fromhttp://www.britannica.com/EBchecked/topic/915871/Black-Entertainment-Television

National Cable & Telecommunication Association. Retrieved August 14, 2009 fromhttp://www.ncta.com/OrganizationType/CableNetwork/1422.aspx

Viacom. Retrieved August 14, 2009 from http://www.viacom.com/Pages/default.aspx

Business Storytelling LP Portfolio Project 2

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