Viacom Has Been Stockpiling Video for DTC Service Launch, CEO Says

Viacom has cut back the past couple of years on its licensing of content to subscription VOD services, amassing a big library with which to go direct to consumer with its $340 million Pluto TV acquisition (see 1901230029), Viacom CEO Bob Bakish said in a call Tuesday with analysts. He said Pluto will be "a key driver for transforming our company," and the deal should close in March. He said Pluto provides access to more than 12 million monthly users and is a marketing engine for Viacom's own SVOD products like Nick Hits. For Q1 ended Dec. 31, revenue of $3.09 billion was little changed from the year-ago quarter as operating income fell 16 percent to $602 million. Viacom expects single-digit percentage revenue growth the rest of the fiscal year.