Viacom’s Profit Rises
Typically, when profit rises, one wouldn’t believe it to be primarily due to cost cuts. According to a New York Times article, Viacom’s profit rose in the third quarter. The company controls Paramount Pictures and MTV.
The odd part of this is, Viacom’s two major sources of revenue, which are advertising and feature films, actually dropped. Feature films such as “Transformers: Revenge of the Fallen” and “G.I. Joe: the Rise of the Cobra” had revenue dropped by 6 percent. However, the profit was made through releasing fewer movies and cutting jobs and costs. Paranormal Activity” helped boost Paramount’s profit. It was a low-budget film made for about $15,000 and was able to get about $85 million in ticket sales.
Yes, it’s bad for those 850 who lost their jobs at Viacom. However, I guess overall, sometimes cutbacks in companies are actually very beneficial in saving the industry.
