This is Jesse Pujji and today we are breaking down ViacomCBS. This episode has a different format - you'll hear from both an investor and from company management.
Chris Marangi from Gabelli Asset Management starts us off with a history of ViacomCBS. He goes deep into the dynamics of content creation, curation, and distribution, hitting home the value of IP. Then he helps break down how ViacomCBS is transitioning from a shrinking linear business to a growing streaming business.
Next, I sit down with the CFO of ViacomCBS, Naveen Chopra. He shares his views on the business today, how he thinks about capital allocation, and how streaming will evolve for ViacomCBS. Please enjoy this Business Breakdown.
For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.
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Show Notes - Pt 1 with Chris Marangi
[00:03:31] - [First question] - What is ViacomCBS
[00:04:10] - What a typical media conglomerate looks like
[00:06:45] - The scale and size of ViacomCBS today
[00:09:03] - Starting as a radio business and becoming a diversified conglomerate
[00:11:25] - What the competitive landscape looked like fifteen years ago
[00:14:07] - Economics of a typical cable network channel like ESPN or MTV
[00:16:23] - Key differentiators between a good and a bad channel revenue-wise
[00:17:22] - The important roles movies play and how the film industry works writ large
[00:18:12] - Durable competitive advantages in producing strong content
[00:19:26] - How much of their market cap is their catalog
[00:20:04] - Adopting a streaming model and the impact of this inflection point
[00:24:33] - Thoughts on customer acquisition in movies and streaming services
[00:25:33] - What has to go right for their market cap to double in the next decade
[00:27:55] - What will have gone wrong if they don’t grow over the next decade
[00:28:26] - Lessons for entrepreneurs and investors when studying ViacomCBS’s story
[00:29:33] - Learn more about ViacomCBS and the cable industry; Cable Cowboy
Pt 2 with Naveen Chopra
[00:30:27] - [First question] - Overview of the different businesses within ViacomCBS
[00:34:07] - Size of the broadcast arm of ViacomCBS’s business and the costs of running it
[00:37:23] - How wide the range of content expenses can be
[00:39:35] - Thoughts on making movies and the business model pre-pandemic
[00:42:47] - Is the box office opening night really that important?
[00:44:40] - How much box office attendance is down post-pandemic
[00:46:19] - Same day releases for streaming and box office can help acquire subscribers
[00:51:45] - Leveraging intellectual property to generate revenue
[00:53:23] - How much Netflix invests in content compared to ViacomCBS and competitors
[00:54:11] - Thoughts on the business model for streaming service revenue
[00:58:01] - Scaling Paramount+ to compete and compensate for pandemic impacts
[01:02:16] - What he’s most excited about for ViacomCBS and Paramount+ looking forward
[01:06:00] - Things in the macro-environment that could be good and bad for ViacomCBS
[01:07:54] - Lessons for entrepreneurs and investors when studying ViacomCBS’s story
