MTV and Paramount in massive profit slump

Parent company Viacom sees 69% loss

Viacom, the owners of MTV, Paramount Pictures and the Rock Band franchise, has announced a massive 69 per cent loss in profits.

The loss is being put down to redundancy payouts – 880 jobs were cut in December – and a write-down of assets.

The loss equates to a $387 million year-on-year, with profits down to $173 million (£120 million) from $560 million (£350 million) the same time in 2008.

Poor DVD sales

Viacom is putting the profit slump down to a decline in advertising and a slowing of DVD sales, with Viacom President Philippe Dauman saying the company's fourth-quarter results "reflect the realities of a challenging economy."

In 2008, the company had successful DVD releases of Iron Man, Kung Fu Panda, and Indiana Jones and the Temple of the Crystal Skull, but still saw a 6 per cent dip in the home entertainment market.

There was some good news regarding the cinema revenue. Paramount saw 28 per cent jump in revenues to $350 million (£240 million). The company is hoping that its 2009 film slate will also perk things up – with the likes of Star Trek, Transformers 2: Revenge of the Fallen and "GI Joe all coming out this year.

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Marc (Twitter, Google+) is the content team lead for Future Technology, where he is in charge of a 14-strong team of journalists who write many of the wonderful stories that end up on TechRadar, T3.com and T3 magazine. Prior to this he was deputy editor of TechRadar, had a 10-month stint editing a weekly iPad magazine, written film reviews for a whole host of publications and has been an integral part of many magazines that are no longer with us.