Viacom Consolidates Its 3 Top Networks Groups Into 2 Under Doug Herzog & Cyma Zarghami

There will be no replacement for departing MTV Networks Music & Logo Group Van TofflerViacom CEO Philippe Dauman just announced a restructuring, with the company’s three largest TV networks groups — MTV Networks Music & Logo Group, Entertainment Group and Kids & Family Group — consolidated into two under Entertainment Group president Doug Herzog and Kids & Family Group president Cyma Zarghami.

Doug-HerzogCyma-ZarghamiThe renamed Viacom Music and Entertainment Group, led by Herzog, will consist of MTV, MTV2, LOGO, VH1, Comedy Central and Spike, as well as the related digital networks and MTV’s “Always On.”

The expanded Viacom Kids & Family Group will comprise all the brands currently in the Nickelodeon Group, including Nickelodeon, Nick Jr., TeenNick, Nick at Nite, NickMom and NickToons, as well as TV Land, CMT and CMT Pure Country.

In the restructuring, Toffler’s MTV Networks Music & Logo Group has been split into two, with Herzog taking in flagship MTV, MTV2, Logo and VH1, while Zarghami adds to her portfolio CMT and CMT Pure Country. Additionally, TV Land, which was in Herzog’s Entertainment Group, is being moved to Zarghami’s Kids & Family Group, which likely prompted the abrupt exit yesterday of  TV Land President Larry Jones, a 27-year Viacom veteran.

The other two Viacom network groups — the Debra Lee-led BET Networks and Viacom International Media Networks under Bob Bakish — remain intact, with Herzog, Zarghami, Lee and Bakish continuing to report to Dauman.

Toffler made a surprise announcement Tuesday that he would be be leaving Viacom after 28 years.

VIACOM LOGODuring the Q4 earnings call a couple of weeks ago, Dauman said he expects to see a “substantial net cost savings throughout our organization” as a result of a restructuring that includes an “organizational realignment as well as rationalization of content that no longer meets our goals.” Viacom has been going through rough times, with its shares depressed following the Q4 results, in part because of declines in domestic ad revenue.

Here is Dauman’s memo on the reorganization:

Dear Colleagues,

In the nearly 30 years I have been fortunate to be associated with Viacom, we have always been a leading force in our industry, through our breakthrough programming, through our creative innovation and most of all through our ability to continually reinvent ourselves.

Today, we are announcing changes in three of our domestic network groups, creating two new organizations built around proven leaders with great creative track records. Doug Herzog, will lead the newly formulated Viacom Music and Entertainment Group, and Cyma Zarghami, will lead the expanded Viacom Kids and Family Group. The new groups are an enormous opportunity for us to take advantage of our strong creative teams, to share our expertise, and to promote greater cross marketing and, in some cases, cross channel programming activity.

· The Viacom Music and Entertainment Group will consist of MTV, MTV2, LOGO, VH1, Comedy Central and Spike, as well as the related digital networks and MTV’s “Always On,” which fuses the immediacy of social conversation with the power of television. MTV, VH1 and LOGO are among the most iconic and engaging brands in our industry, and thanks to Van ‘s long-term and stable leadership, they have top teams who will no doubt make this a seamless transition.

The Music and Entertainment Group will house a portfolio of popular programs, ranging from Teen Wolf and the VMAs on MTV and Guy Code on MTV2; to Bar Rescue and Ink Master on Spike; to Love & Hip Hop on VH1; to Broad City, Key & Peele and South Park on Comedy Central; to RuPaul’s Drag Race on LOGO.

The role is in part a coming home for Doug, who joined MTV in 1984 and rose to become President of MTV Productions, and later, President of Comedy Central, where among his notable accomplishments, he launched The Daily Show and South Park. Before rejoining Viacom in 2004, Doug served as President of USA Network and also President of Entertainment for FOX Broadcasting Company. Doug has a proven ability to move seamlessly between the business and creative worlds. He understands what it takes to stay relevant and on the leading edge of popular culture, and under his leadership, Comedy Central, Spike and TV Land have established distinctive programming voices in the entertainment landscape. Doug will continue to be based in Los Angeles and New York.

· The Viacom Kids and Family Group will comprise all the brands currently in the Nickelodeon Group, including Nickelodeon, Nick Jr., TeenNick, Nick at Nite, NickMom and NickToons, as well as TV Land, CMT and CMT Pure Country.

TV Land, which originated in this group, and features classic shows and new originals such as Younger, and CMT, which appeals to heartland audiences and includes major events like the CMT Music Awards, have talented teams and established brand presence. Both will benefit from the expanded group’s leadership in family programming that includes iconic live action and animated Nickelodeon, Nick Jr. and TeenNick programs like SpongeBob SquarePants, Dora the Explorer and Nickelodeon’s Kids’ Choice Awards.

Cyma, who will celebrate 30 years with Nickelodeon this year, has a long history and formidable track record as a creative programmer and successful executive. She is an insightful and extremely capable leader and has grown Nickelodeon and its sibling networks into brands that are beloved by kids and families around the world. The successful Teenage Mutant Ninja Turtles franchise is just one example of her ability to reimagine properties and take them to new heights. Cyma joined Nickelodeon in 1985, was named general manager of Nickelodeon in 1996 and became Group President in 2006.

Doug and Cyma, along with Debi Lee at BET Networks, Bob Bakish at Viacom International Media Networks and Brad Grey at Paramount Pictures, will continue to report to me. TV Land will move to the Viacom Kids and Family Group immediately, and the other networks will transition between now and Van’s departure in mid-April. More information on the specific organizational changes will come from the Group leaders in the coming weeks.

Our industry is in transition and change does not always come easy, but we have a tremendous amount of talent at Viacom and we are innovating at every level and at every brand. We are working hard to adapt to changing audience behavior, to incorporate new forms of distribution and to better integrate technology into everything we do. That includes our expanded data and research capabilities; our multi-platform, multi-distributor approach; our groundbreaking advertising sales units, Velocity and Echo; and our new central hub for digital research and development, The Viacom Lab. Just to name a few.

I have great confidence that by working together to embrace the changing landscape and by continuing to bring our best creative work to audiences — we will succeed. Thank you for your continued dedication and hard work. I know you join me in congratulating Doug and Cyma on their new responsibilities.

Warm regards,


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