How Sensitive Is Viacom’s Share Price To Its International Subscription Revenues?

Viacom‘s (NASDAQ: VIA) International & Other Segment accounts for 70% of the company’s valuation. The division is comprised of a diverse portfolio of domestic and international channels (such as BET,Comedy Central, MTV International), which derive the majority of their revenues from subscription fees. We estimate that these subscription revenues will grow at an annual rate of 4% over the next few years. We currently estimate that for every 2.5% change in the International segment’s subscription revenues, the company’s valuation would change by 1%.