Company lowers rev projections, restructuring to add to costs
BERLIN — German musicvid network Viva Media, which had expected to break even this year, is now looking at a $9 million loss as a result of the advertising slowdown.
Company reported Friday that restructuring expenses would also add to those costs.
Viva has lowered its revenue projections from $59 million to $56 million for the current year.
Earlier this month, Viva and AOL Time Warner unveiled plans to revamp the broadcaster’s troubled adult contemporary vid channel Viva 2. New web, to be launched early next year as Viva Plus, will be an interactive channel offering a wide range of international music.
Although Viva 2 has been generating losses of nearly $5 million a year, execs say company will reach its break-even by 2002, a year earlier than originally planned.