Posted on July 1, 2009 at 2:52 PM
Filed under: Corporate Strategy | Divesting and Restructuring | Joint Ventures and Alliances
Tagged: paramount , Viacom Inc.

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The business is profitable but not growing, and one of these days it will start shrinking. Several rivals are in exactly the same boat.

It's a classic recipe for co-opetition -- in this case, combining manufacturing and back-office operations in a joint venture with one or more rivals to cut costs, and just running the customer-facing part of the business.

That's what's in store for the DVD distribution channels of the major movie studios, according to a media industry investor quoted in a Reuters report on Wednesday.  And, the report says,  Viacom  Inc.'s (NYSE:VIA.B) Paramount may be leading the way. It's said to be in preliminary talks with several other studios over a possible DVD joint venture. - Kenneth Klee


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