According to a company press release, Viacom's (
) kid focused channel Nickelodeon ended up being among the top
cable networks in Q2 2011, an arena in which companies like Time
), Disney (
) and News Corp (
) have significant presence. This performance was led by programs
such as iCarly. The company also states that this was 65th
consecutive quarter when Nickelodeon's stood as basic cable's top
total day network with kids in the range of 2-11 years as well as
among total viewers. This certainly begs the question, is
Nickelodeon important to Viacom & assuming so, then how
The answer to the first question is yes. We estimate that this
single channel contributes about 16% to Viacom's stock.
This is a result of two factors. One, the channel earns a
dual-stream of revenue including subscriber fee and advertisement
fee. Secondly, it has a very high penetration in the U.S. owing to
its popularity among kids.
Our price estimate for Viacom's stock stands at
, slightly above the market price.
See our complete analysis for Viacom's stock.