Entertainment Industry

Category: Cable Television

On Location: HBO crew members out of 'Luck' with series shutdown

Stage used for filming HBO's 'Luck'Some uprooted their families to relocate to Los Angeles. Others recently bought houses or signed long-term leases and were banking on at least 10 months of steady work to pay down their debts. Many had turned down higher paying jobs to work for two of the top creative forces in the business -- Michael Mann and David Milch, executive producers of the HBO TV series "Luck."

Two weeks after HBO announced its sudden decision to shut down production of "Luck" in the wake of three horse fatalities, those who worked behind the scenes on the weekly TV series were grappling with the harsh realities of suddenly being out of work in a tough job market. "Luck" employed about 180 crew members, 23 actors with regular and recurring roles, 20 weekly or day player actors, in addition to dozens of extras.

Many local prop houses and vendors that had supplied services and equipment to the HBO series also lamented the demise of one of the higher-profile shows filming in Los Angeles at a time when fewer dramas are shooting locally because of competition from New York and other states.

Although TV shows are often canceled, it’s rare for one to be scrapped in the middle of production, especially after it has been ordered for a full season, as was the case with "Luck." When HBO halted production, it was filming just the second episode of the second season for “Luck,” the low-rated racetrack drama starring Dustin Hoffman and Nick Nolte.

“This is the only time in our history that we've done this and we don't take this decision lightly,'' said Michael Lombardo, president of programming at HBO. "It has some real costs in terms of dollars and in terms of the emotional costs. The fact that people made life decisions based on their expectation of employment for a 10-month period was not insignificant to us.”

Lombardo declined to say how big a financial toll this took on the network, cast and crew. To help cushion the blow, the Time Warner Inc.-owned cable network is setting up a fund to assist affected crew members, Lombardo said. “We have asked producers to put together a list of people on the crew who are in a challenging life circumstance because of this decision so we can figure out a way to make the landing a little bit more comfortable.”

Mann said he feels responsible for many of the crew members, several of whom had worked with him on other films and TV shows.

“We've got folks who relocated from New York to L.A. and committed themselves to one-year leases and now don't have a job,’’ Mann said. “You're talking about hard working men and women who are carpenters, assistant camera operators, sound editors, location managers, in a community where there is not a lot of production."

The shutdown was especially difficult because of the strong bonds formed on the set, Mann said.

“There was a unified spirit," said the director of such movies as “The Last of the Mohicans” and “Public Enemies.” “Every time you walked on the set you couldn't help feeling that everyone wanted to be there. A lot of folks had given up higher paying jobs to work for 'Luck.'”

The timing couldn’t be worse for Peter Clarke, prop master on “Luck,” whose wife is about to give birth any day.

“I’m concerned about how I’m going to make rent in four weeks,’’ said Clarke, a veteran prop master. “The job market is pretty lean right now. I can’t pick up and move to Louisiana because we’re about to have a baby.”

Production designer Tim Grimes moved from New York to Los Angeles last year to work on “Luck.”  Grimes, who rents an apartment in Hollywood, was making good money -- about $3,600 a week -- on the show, but most of that was going to pay off debts. After the first season ended, he had to collect unemployment benefits because work in L.A. was so sporadic.

“We were thinking we would be paid until December and having the carpet pulled from underneath us was the biggest blow,’’ he said.

James Kent, set decorator on "Luck," moved from western Massachusetts to Los Angeles last year to join "Luck." He said the shock of the show’s cancellation was compounded by anger over how crew members have been depicted. People for the Ethical Treatment of Animals "wanted to make us look like villains,’’ he said. “We were all very proud of the show and protective of the animals.”

"Luck’s" closure was felt far and wide in Los Angeles because the series filmed and spent heavily throughout the region, mainly at Santa Anita Park, but also at such locations as the Beverly Hilton, Hustler Casino in Gardena, Rod’s Grill in Arcadia and Marina del Rey.

HBO executives would not disclose the budget for “Luck,” but people who worked on the show said it was among the more expensive local TV dramas, spending about $140,000 per episode on prop rentals and purchases and set construction alone.

Among the beneficiaries was GMT Studios in Culver City, which rented three soundstages for “Luck.”

“The entire production community is hurting because filming is going out of state and this was one big show that was pretty substantial,’’ said Frank DiPasquale, president of GMT Studios. “They had a contract to be here till the end of October. It was definitely a setback for us.”

"Luck" was also a boon to the Santa Anita racetrack, which generated $10,000 to $20,000 a day in site fees from the series. About 75 people who work at the track earned extra income working as riders, gate guards and extras.

“It’s a big blow to us and something I don’t think we’ll be able to replace any time soon,’’ said Peter Siberell, director of special projects for Santa Anita Park.

 

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Photo: Workers rebuild part of a stage at GMT Studios in Culver City as the set of the HBO show "Luck" is dismantled. Credit: Katie Falkenberg / For The Times

Where the cameras roll
Sample of neighborhoods with permitted TV, film and commercial shoots scheduled this week. Permits are subject to last-minute changes. Sources: FilmL.A. Inc., cities of Beverly Hills, Santa Clarita and Pasadena. Thomas Suh Lauder / Los Angeles Times

Producer Mark Burnett invests in Youtoo

Mark Burnett and Vimby executives
Some technology and entertainment companies expect "social TV" to be the next wave in digital entertainment.

That means money has been flowing to start-up ventures that investors hope will become the next Facebook, Twitter or Zynga. On Thursday, Dallas technology company Youtoo (not related to YouTube) announced that Mark Burnett, the television producer behind "Survivor" and "Celebrity Apprentice," has made an undisclosed equity investment in the venture, which launched in September 2011.

Youtoo makes interactive TV and games for the television industry. Last year it launched its social network, Youtoo.com, and Youtoo TV, a cable channel available in about 15 million homes. Users can record 15-second videos of themselves on Youtoo.com and submit them to run on the television channel.  

Youtoo CEO Chris WyattChris Wyatt, chief executive of Youtoo, said Burnett hopes to incorporate Youtoo's interactive features into some of his TV productions. Youtoo plans to license its technology to TV networks and producers so they can augment their shows with interactive elements. The additional platform is designed to serve as a vehicle for advertising.

Burnett has been getting increasingly interested in the digital entertainment space. He also invested in Vimby -- short for Video in My Backyard -- a network of producers who create original short form video for the Web, segments for television and sponsored programming for major advertisers.

"In the next few months, you are going to see an entire pipeline of producers who will be using our technology," Youtoo's Wyatt predicted.

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Photos: Top: Producer Mark Burnett, center, is flanked by Vimby CEO Dean Waters and Vimby Chief Creative Officer David Goffin at Sony Studios in Culver City in 2011. Credit:  Robert Gauthier / Los Angeles Times

Lower right: Youtoo CEO Chris Wyatt. Credit: Youtoo

Ovation channel now available in 50 million homes

Charles Segars is Ovation's CEO
Ovation, the independently owned cable television channel that showcases art and artists, has etched a major milestone: It now is available in more than 50 million homes.

The Santa Monica-based cable channel announced this week that it secured a distribution deal with AT&T's U-verse subscription television service, putting the channel in more than half of the nation's households that subscribe to pay-TV. Ovation has increased its carriage by about 20% during the last year -- an achievement for a small independent that lacks the leverage of a major media company like News Corp., NBCUniversal or Walt Disney Co.

“When we acquired Ovation five years ago, it was in less than 5 million homes,” Charles Segars, chief executive of Ovation, said in a statement. “Our 10-fold growth proves that distributors and viewers agree with what we have been saying all along: Programming about art, artists and artistic expression rocks.”

The channel's expansion bodes well for the network because it demonstrates that cable, satellite and telephone companies are interested in carrying some highbrow programming at a time when distributors are under pressure to shed channels. Consumers have grown increasingly wary of rising cable bills. 

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Photo: Ovation Chief Executive Charles Segars in 2010 at the channel's Santa Monica headquarters. Credit: Christina House / Los Angeles Times

Sumner Redstone attends Viacom shareholders' meeting

Sumner Redstone Arrives Oscars

Who is the man behind the curtain at Viacom? Sumner Redstone, of course.

After much speculation about the health of the company's 88-year-old chairman, Viacom Inc. opened its annual shareholders meeting Thursday morning in New York by dramatically parting a curtain for the big reveal: the ginger-haired Redstone on stage, sitting at a table along with two other senior Viacom executives — Chief Executive Philippe Dauman and General Counsel Michael Fricklas.

Last week, Redstone — who lives in Los Angeles — made headlines after deciding not to fly across the country to attend the annual session with shareholders in New York. A company spokesman initially said that Redstone — who controls nearly 80% of Viacom's voting shares — had an "unavoidable conflict" that would prevent his attendance. Media reports about Redstone's decision to skip the meeting prompted inquiries from shareholders, leading Redstone to make the trip after all.

"To paraphrase my very good friend Mark Twain, who couldn't be here with us today ... reports of my absence from this meeting have been greatly exaggerated," Redstone said to open the meeting, after the curtain parted, according to a Viacom executive in attendance.

Redstone in recent years has been cutting back on public appearances as his mobility has become an issue. The mogul, who will turn 89 this spring, attended last month's 84th Academy Awards ceremony in Hollywood, and plans to participate in the festivities on Hollywood Boulevard when he receives a star on the Hollywood Walk of Fame later this month.

He also kicks off every Viacom and CBS Corp. (which Redstone also controls) quarterly earnings call with Wall Street analysts, via speaker phone, by boasting about Viacom and CBS' sunny futures and how much he adores his two handpicked lieutenants, Viacom's Dauman and CBS Chief Executive Leslie Moonves.

About 30 investors attended Viacom's meeting Thursday, along with about 90 Viacom employees. Two investors asked questions. One shareholder wanted to know whether Viacom's Hollywood movie studio, Paramount Pictures, was still in business with Steven Spielberg. Viacom's Dauman said "yes," noting that the celebrated director was an executive producer of the "Transformers" movies.

Another shareholder, an older woman, said that she thought the actor Timothy Olyphant ("Justified") was "very hot" and that he should appear in Paramount's movies.  

Instead, Katy Perry will star this summer in a 3-D concert movie called "Katy Perry: Part of Me," Dauman announced at the meeting.

"Across our divisions, we strengthened our operational efficiency while continuing to invest in programming and films that resonate with audiences around the world," Dauman said. "On the eve of its 100th birthday, Paramount Pictures finished the 2011 calendar year as the No. 1 studio at the domestic box office. The studio captured the top spot thanks to an unprecedented run of highly successful films, including an industry-leading six consecutive films that earned $100 million or more in U.S. theaters."

At the end of the 45-minute meeting, the curtain closed, preventing spectators from witnessing Redstone's departure.

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Photo: Sumner Redstone, center, arrives at the 84th Academy Awards ceremony in Hollywood on Feb. 26. Credit:  Paul Buck / European Pressphoto Agency

Plum TV, network for the rich and powerful, has new owners

Plum TV has been soldPlum TV, the tiny cable network that is distributed primarily in the backyards of the rich and powerful but has struggled to make money for itself, has new owners.

Veteran television executives Joseph Varet and Morgan Hertzan have acquired Plum TV out of bankruptcy for $1.17 million.

Although Plum is only in five million homes, it is well known among the elite. It is distributed in the Hamptons, Martha's Vineyard, Aspen, Sun Valley and Miami and focuses on the culture of those in the summer-home-and-private-jet set.

Varet and Hertzan, who co-founded LXTV, a producer of lifestyle entertainment content that is now owned by NBCUniversal, said they didn't want to limit their channel to only the one-percenters. Their plan is to broaden the channel's programming to include the wealthy along with the super rich.

“Plum offers a great opportunity to build an international lifestyle multimedia business and will provide platforms where advertisers can reach the most desirable demographic in an environment that reflects the quality and excellence of their brands," Hertzan said in a statement.

In an interview, Hertzan and Varet said they wanted the channel to be a television version of upscale magazines such as Architectural Digest, Conde Nast Traveler and Vanity Fair.

"All these magazines are talking to a consumer with disposable income that wants to make educated purchase decisions," Morgan said.

The network may have difficulty getting its distribution to a level where it can compete with other channels. Typically, a cable network needs to reach more than 30 million homes before national advertisers will even consider kicking the tires.

As part of its efforts to build Plum, the network will open an office in Los Angeles and build ties to the creative community here. Creative Artists Agency, which advised Varet and Hertzan on the deal, is also going to consult for Plum moving forward.

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Robert Rodriguez joins Magic Johnson, Sean Combs in Comcast TV group

RobertRodriguezElRey

To fulfill its commitment to increase diversity in the cable landscape, Comcast Corp. is launching four independent channels targeting minorities in the next two years, including one owned by former Lakers star Magic Johnson and another owned by former rapper and entrepreneur Sean "Diddy" Combs.

The Philadelphia-based cable giant said Tuesday it also would launch two English-language channels owned by Latinos. One will be owned by film director Robert Rodriguez ("Spy Kids," "El Mariachi") and the other by Spanish-language television veteran Constantino “Said” Schwarz.

El Rey channel will be a joint venture between Rodriguez and FactoryMade Ventures executives John Fogelman, a former top William Morris Endeavor talent agent, and Cristina Patwa. The channel, which is slated to launch in early 2014, is expected to feature Latino celebrities and producers. 

"This is the right time to create something new that has cultural significance and can reach the U.S. Latino audience that is really booming," Rodriguez said in an interview. 

The group envisions the channel as "an action-packed, general entertainment network in English for Latino and general audiences" with a mix of reality, scripted and animated series, movies, music, comedy and sports.

Young, U.S. born Latinos "are an under-served market, and Comcast really responded to our pitch," Rodriguez said. "They want to make this work."

Fogelman said his team started pitching Rodriguez on the project about a year ago when Comcast first announced that it would back start-up channels. "We knew if we could get Robert on board we would finally have that authentic voice. There is a groovy factor to him, you can see it in his films and the talent whom he gets to work with him."

Comcast announced three other channels.

Aspire, the Magic Johnson channel, is expected to launch this summer. The Atlanta-based network will be managed by the NBA Hall of Famer in partnership with GMC TV. Johnson said in an interview that he wants Aspire to be filled with entertaining and positive programming for African Americans families. Aspire's lineup will include movies, documentaries, short films, music, comedy, visual and performing arts, and faith and inspirational programs.

Combs' channel, which is expected to launch in 2013, will be called Revolt. Combs said in a statement the channel would be built "from the ground up in this new era of social media" and feature music videos, live performances, music news and interviews. It is expected to incorporate social media interaction for music artists and fans. Former MTV executive Andy Schuon is partnering with Combs on the venture.

The fourth channel -- BabyFirst Americas -- is expected to launch in April.  Proposed by TV veteran Schwarz, the channel is expected to emphasize the importance of early child development, including verbal, math and motor skills. It will be geared for infants and very young children and their parents.

Comcast promised the federal government that it would help launch 10 independent cable channels as part of its effort to win approval of its acquisition last year of NBCUniversal. Regulators were worried that the consolidation of two enormous media companies would make it even more difficult for small independent channels to compete.   

Comcast said it made its selections after sifting through more than 100 proposals.

Of the 10 networks, four will be majority African American owned, two will be majority American Latino owned, two will be operated by American Latino programmers, and two will provide additional independent programming. Comcast said it would carry the channels on its cable systems as part of its digital basic tier of service. 

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Photo: Director Robert Rodriguez arrives at the premiere of his movie "Spy Kids: All the Time in the World in 4D" in Los Angeles in July 2011. Credit:  Gus Ruelas / Reuters

Magic Johnson to head Comcast cable channel Aspire

MagicMagic Johnson, the former Laker and basketball Hall of Famer, has long been on an aspirational journey. This summer he plans to bring his upbeat message to new audiences with the launch of a 24-hour cable television channel named Aspire, via Comcast Corp.

Comcast plans to announce Tuesday that it will make available Johnson's 24-hour network in late June in about 11 million of its subscribers' homes. The initiative begins to fulfill a promise the cable operator made last year when it was seeking the federal government's approval of its more than $14 billion merger with NBCUniversal. 

The Philadelphia-based cable giant agreed to launch 10 new channels by 2018, including eight owned by African Americans and Latinos, to diversify its channel line-up.

"I told Comcast that I wanted to be sure I got the first one," Johnson said with a laugh during an interview with the Times.  

Johnson, who left professional sports 20 years ago and has since built a business empire, said the channel would focus on positive, uplifting images of African Americans. The basic cable outlet, which will be based in Atlanta, will join other channels targeting black viewers, like BET and TV One, and will offer opportunities for blacks who have struggled to find work in mainstream Hollywood.

“This is big for myself, for the African American community and the African American creative community," Johnson said. "I wanted a vehicle to show positive images and to have stories written, produced and directed by African Americans for our community. Aspire—that’s how I’ve been leading my life.”

Read the full story in Tuesday's Los Angeles Times.

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Photo: Earvin "Magic" Johnson speaks during the press conference held by the Magic Johnson Foundation at the Staples Center. Credit: Jayne Kamin-Oncea / U.S. Presswire

NBC's 'The Voice' is strong but 'Smash' not living up to hype

NBC's 'Smash' the musical

NBC has found a voice -- but hasn't yet nailed its dance steps.

The broadcast network used its Super Bowl platform to successfully launch "The Voice," a remake of a Dutch singing competition starring Christina Aguilera, Cee Lo Green, Adam Levine and Blake Shelton.

"The Voice" kicked off its second season immediately after the Feb. 5th game before moving to its regular Monday night time slot. This week, the show continued to belt out high notes attracting more than 16 million viewers -- approaching the audience of Fox's aspirational juggernaut "American Idol." 

"The Voice" was so strong that it muffled the ratings of CBS' Monday comedy block, which includes "Two and a Half Men." This month represented the first time in more than four years that NBC beat CBS in key ratings on a Monday night.

But NBC's highly anticipated drama "Smash" is proving less spectacular.

At the end of Comcast Corp.'s earnings call Wednesday, NBCUniversal Chief Executive Steve Burke conceded to his colleagues that while "The Voice" should remain strong, "Smash is more problematic." Burke apparently didn't realize that his microphone was still live.

The expensive, highly promoted program attracted 8 million viewers Monday night, a respectable turnout particularly for a network that has struggled this season to launch new shows. A pet project of NBC Entertainment Chairman Bob Greenblatt, the critically acclaimed series has produced some of the best ratings for NBC in the time period in nearly three years.

However, NBC made an enormous investment on "Smash" despite concerns that a show about the making of a Broadway musical, and the cut-throat competition of New York's theater world, might lack broad appeal among most Americans. 

The pilot cost more than $7 million and production of subsequent episodes runs about $4 million. The network has spent at least another $10 million to promote the series, which has an all-star producing team, including Steven Spielberg, Theresa Rebeck as well as Neil Meron and Craig Zadan, the team behind "Hairspray" and "Chicago."

Late last week, NBCUniversal marshaled its firepower to bolster "Smash," headlined by Katharine McPhee, Debra Messing, Anjelica Huston and Megan Hilty. 

A number of the company's cable networks, including USA, Bravo and even video game culture channel G4 and the bilingual channel mun2, replayed the pilot of "Smash" in an effort to drum up new viewers. 

The company's so-called cable road block exposed the program to an additional 1 million viewers. But, the ratings for the second episode of "Smash" on NBC Monday night dropped 26% in key audience demographics compared with its Feb. 6 premiere. 

As troubling for NBC and Burke, the show steadily lost viewers throughout its hourlong telecast Monday night.

Comcast Corp. Chief Financial Officer Michael Angelakis warned Wall Street analysts Wednesday that managing programming costs would be one of the biggest challenges that Comcast faces this year. That is particularly true for Burke, who is charged with deciding how best to allocate the company's considerable programming budget. 

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Photo: The cast of NBC's "Smash." Credit:  NBC

 

 

Comcast fourth-quarter profit jumps 26%; NBC and film lag

The Lorax Universal Pictures
Comcast Corp. beat analysts' estimates with a 26% increase in fourth-quarter profit, but two NBCUniversal units continued to struggle: the NBC broadcast network and Universal Pictures.

For the quarter ended Dec. 31, the Philadelphia cable television giant posted net income of $1.29 billion, or 47 cents a share, compared to $1.02 billion, or 36 cents per share, for the year-earlier period.  Revenue climbed 3% to $15 billion.

Once again, the company's core business of providing bundles of cable TV channels and high-speed Internet service bolstered its financial results. Comcast added 336,000 Internet customers during the quarter while losing 17,000 video subscribers, demonstrating that the cable company was doing a better job holding onto its customers than it did during the recession.

But NBCUniversal continued to be a mixed bag.

The New York media company, which Comcast co-owns with industrial giant General Electric Co., generated revenue of $5.7 billion -- an increase of less than 1% over the year-earlier period.  Operating cash flow declined 6.8% to $1.1 billion for the quarter. 

Cable television networks, including USA, Syfy, Bravo and MSNBC, increased revenue 5.3% to $2.2 billion.  Broadcast TV revenue declined 3.7% to $1.8 billion -- reflecting continued ratings problems at the NBC broadcast network. 

Filmed entertainment revenue dipped 1.8% to $1.3 billion, in part because of lower home entertainment sales. Theme parks revenue climbed 4% to $498 million.

Cable networks' operating cash flow increased 15.3% to $923 million, but NBC posted an $80-million loss. The broadcast unit produced $55 million in operating cash flow in the previous-year period. Operating cash flow at Universal Pictures dropped nearly 50% to $89 million.  

Comcast said its focus for the last year was integrating NBCUniversal operations, finding the right management team and stepping up investments in programming.

"As you look out over 2012 and 2013 we are going to start to, hopefully, see some of the seeds we planted bear fruit," NBCUniversal Chief Executive Steve Burke told analysts. "We've said the network is going to take us a number of years to turn around. We also think we can see some improvement in film; our film business has not been doing well but we have a very strong slate in 2012."

However, Michael Angelakis, Comcast's chief financial officer, warned analysts: "The real headwinds are programming costs."

One analyst suggested that Comcast's shiny new toy -- media company NBCUniversal and its peacock network -- could ultimately challenge the company's financials.

"Evolutionary biologists have cogently argued that the peacock's tail evolved, paradoxically, as a gigantic display of handicap," Bernstein Research senior analyst Craig Moffett wrote in a report.  "Only a very healthy specimen could survive carrying around such a burden."

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Photo:  Ashley, voiced by Taylor Swift, is a character in the upcoming Universal Pictures film: "Dr. Suess' The Lorax." Credit:  Universal Pictures

Viacom first-quarter profit drops 65% on weak advertising

LeadEven Tom Cruise wasn't enough for media company Viacom Inc. to pull off a nearly impossible mission: turning a crowd-pleasing first-quarter earnings.

The New York-based media company's profit plummeted 65% on lower advertising sales at its important cable television networks for the quarter ended Dec. 31. Advertising woes were particularly nettlesome at children's channel Nickelodeon, which has experienced a precipitous drop in ratings. 

Viacom's earnings were also dragged down by a $383-million charge for payments to former shareholders of the Rock Band video game franchise, part of the company's long-running legal dispute over Harmonix Music Systems. The payout was the latest sour note in Viacom's failed attempt to get into the video game business.

Net income dropped to $212 million, or 38 cents a share, compared to $610 million, or $1, during the same period the previous year. The earnings, reported Thursday, slightly beat analysts' forecasts.  Viacom's revenue increased 3% to $3.95 billion. Analysts, however, had expected slightly higher revenue.  

Hollywood-based movie studio Paramount Pictures delivered an admirable box office performance, boosted by the late-December release of "Mission: Impossible -- Ghost Protocol," starring Cruise and directed by Brad Bird. (The film has taken in $575 million worldwide.) The century-old Melrose Avenue film studio also thanked "Paranormal Activity 3" and "Puss In Boots" for its box office results. "The Adventures of TinTin" underperformed.

Paramount generated $1.6 billion in revenue, an increase of 4%.  Theatrical revenue was up 37% to $570 million.  Home entertainment sales dipped 6% to $598 million.  Overall, the expense-laden studio reported a $31-million deficit for the quarter.  

Viacom -- which is controlled by 88-year-old billionaire Sumner Redstone -- depends almost entirely on its collection of cable channels, including MTV, Nickelodeon, BET, VH-1 and Comedy Central, for income. Most alarming to analysts was Viacom's admission that advertising was off 3% to $1.35 billion for the quarter.  

The company's Media Networks unit took in $2.44 billion, which was a 3% increase over 2010.  Operating income for the media networks increased 7% to $1.1 billion.

"Despite some early headwinds, Viacom is off to a strong start in 2012," Viacom Chief Executive Philippe Dauman said during an early morning call with analysts. 

Dauman said the company would produce nearly 30% more hours of original TV programming this fiscal year to try to gain back lost ratings and boost advertising sales. The company expects to spend $3 billion on programming this year.

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Photo:  Tom Cruise in "Mission: Impossible -- Ghost Protocol." Credit: Paramount Pictures

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