Viacom+MGM+Lionsgate in new channel

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Viacom will seemingly go head-to-head with HBO and CBS’ Showtime offering with a new high-end channel being launched to US viewers later in 2009.
The plan is for the as-yet unnamed channel to produce fresh and original TV series as well as feature classic Hollywood movies from the MGM and Lionsgate stables. Viacom will be the lead investor in the channel, which will seemingly place the new service head to head not only with Time Warner’s Home Box Office but also “sister” network CBS’ Showtime services. Viacom split CBS off as a separate business at the end of 2005.

Viacom owns the Paramount studio and MTV Networks bouquet of thematic channels. Paramount had a long-standing contract with Showtime, but this was not renewed at the end of last year. MGM and Lionsgate have similar contracts in place with Showtime, good until the end of this year, and reportedly will not renew them.

The channel could, for example, become home to Paramount’s movies like the new Indian Jones blockbuster (Kingdom of the Cracked Skull), as well as the James Bond franchise.

However, the new venture might also have its work cut out. HBO, which despite 20 years of hits has now had two tough seasons where new hits have been harder to come by. Showtime has seen viewer ratings for its screened movies fall by 80% since 2001, says Nielsen, encouraging Showtime to offer less cash for movies.


Source: Rapid TV News