Analyst States Nickelodeon is Underperforming, Needs to Improve Programming
Pivotal Research Group analyst Brian Wieser wrote that the Nickelodeon cable network is “dragging (parent company) Viacom down” by underperforming in ratings compared to many of its competitors. Wieser’s analysis states that TV viewership among kids 2-11 has been up in the past 10 months, but not at Nickelodeon, and added that, “Kids have not abandoned TV for new video platforms,” countering arguments that Nickelodeon’s ratings drops were due to increased competition for online video or Netflix. He added that advertising growth at Nickelodeon is not expected until the second half of 2013, and is”highly dependent upon Nickelodeon improving its programming, including its content procurement, scheduling and marketing efforts.”
Despite his report, Wieser was bullish on Viacom stock, giving it a “buy” recommendation.