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Viacom, MGM And Lionsgate To Enter Premium Cable Space

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Viacom, MGM and Lionsgate have announced a deal that will introduce them to the competitive premium cable and video-on-demand space. Industry pundits are unsure whether the offering is a legitimate one, or is simply a tactic by the companies to negotiate better terms with Showtime.

Conspiracists see clues to the phantom-channel theory everywhere including the suspicious lack of detail in the launch announcement, which was oddly scheduled on a Sunday afternoon — read by some as an attempt to evade scrutiny in the media or on Wall Street.

Viacom had no comment on the suggestion, but a source close to the studios said, “This is a real venture.”

More details are expected to emerge shortly. CBS and Showtime have been undergoing a number of changes in recent years and analysts say Showtime now makes most of their revenue from original programming the create.