Viacom's (NYSE:VIA) MTV Networks division excels at observing culture, putting it through its own unique processing filter, and then spitting out entertainment assets that further shape the zeitgeist -- until you begin to wonder whether a new trend is a chicken or an egg. Think The Real World -- talk about seminal.
The subsidiary is also fond of targeting specific demographics. For instance, LOGO was developed to serve the gay community. VH1 came into existence to make sure that once the younger viewers of flagship brand MTV grew beyond bubble gum and teen music, Viacom could still retain those eyeballs with a mixture of programming aimed at the college-age-plus crowd. TV Land is for older viewers who pine nostalgically for the tube days of their youth, while Spike TV is trying to bring those video-game-playing "missing" males back to the cable dial. The list of examples goes on.
And now, MTV Networks wants to target those who appreciate the Caribbean side of life. A corporate press release reports that a new cable channel dubbed Tempo will debut in Caribbean markets this October. It will be available in North America next year. This news is surely music to the ears of Parrothead fanatics who worship at the altar of Jimmy Buffet. It will also be welcomed by fans of Wyclef Jean, who will be assisting in the creation of programs and documentaries for Tempo.
Viacom investors should welcome a new asset such as this. Media conglomerates like News Corp. (NYSE:NWS), Time Warner (NYSE:TWX), and Disney (NYSE:DIS) love their cable properties, which tend to thrive more easily than the big broadcasters these days (see this article on how cable helped Viacom).
Cable can offer economical programming for the aforementioned highly defined demographic groups that advertisers want to reach; plus, these channels receive fees from cable systems for the privilege to carry the content (although this is not always the case in the beginning, since new channels may have to pay for placement or forgo fees until they become established).
MTV Networks is an old pro at developing music and lifestyle programming; it also knows the world markets and how to react to the entertainment needs of local communities, whether they're located in Africa or Japan. A Caribbean-flavored network is a good fit for the company, and I think any attempt to be ahead of the curve, and go after an audience that might offer value, is smart strategy. Univision (NYSE:UVN) and General Electric's (NYSE:GE) Telemundo (a subsidiary of NBC Universal) offer proof that demographic trends must be anticipated as early as possible.
So, get ready, all you Caribbean fans out there. Make those margaritas and watch out for the sharks. A cool, balmy wind will be headed your way on the cable dial. Viacom investors will happily await your viewing eyeballs.
Recent articles on the media:
Have an opinion? Let it be known on the Fool's Viacom discussion board.
Fool contributor Steven Mallas owns shares of Disney and General Electric. The Fool has a disclosure policy.
