Viacom's Increased Investment In Media Networks Bodes Well While Studio Business Remains Subdued

Viacom's stock reacted positively to the earnings release, though it is still down over 30% this calendar year. This can be attributed to a shift in viewing habits as the younger generation is embracing digital video platforms, which has resulted in lower ratings and declining advertising income for Viacom's media networks. Viacom's programming including, Nickelodeon and MTV, primarily targets the younger generation, which is early to adapt to newer platforms. Having said that, Viacom has been m...