Viacom Networks is a very large organization that caters to the needs of many different people young and old. A need is something that is required or wanted. They fall into two categories, either biological or psychological. Viacom's operations include three networks that accommodate these differences. MTV, Nickelodeon, and VH1 produce huge profits for Viacom by catering to moody teenagers, fickle kids, and music loving baby boomers. They have become part of the entertainment lifestyles of three consumer generations. They key is connectivity with the mindset of each core market segment. With nearly $625 million in earnings, their profit margins have been the envy of other broadcast networks and Hollywood studios.
The stages of the family life cycle are being used by each of the networks in order to reach viewers successfully. As families age, they progress through a series of predictable stages, called the family life cycle. At each point, unique problems and life situations must be addressed. The MTV Networks have a thorough understanding of each stage, which gives their marketers powerful insight into the needs and expectations of families. .
The first stage is Young Singles. Young singles are in the process of setting up their first household. During this stage, courtship activities make social events, recreation and entertainment important. This category accounted for twenty-five percent of all households in 1990 and is expected to grow to twenty-seven percent by 2010. Households are family members, and occasionally others, who share the same housing unit. For marketers, it is the standard purchase and consumption unit. The Viacom Networks stay in tune with a staff of young executives, whose success depends of pleasing young viewers much like themselves. The average employee is age 28, and their corporate climate is much like a college dorm, or romper room in the case of Nickelodeon. In order to stay current, MTV sends researchers into the field to dig through dorm room, closets, and CD collections of eighteen to twenty-four year olds.