Exhibit 1

Entertainment Industry Statistics

A. Annual Film Industry Statistics
Major
Total U.S. Total U.S.

MPAA

Box Office Admissions

Releases

Revenues (millions)

Major

Average

Distributors Distributors

Total

Domestic

Filmed

Screens

Entertain.

Entertain.

Cost

(thousands)

Revenues

Operating

Per Film

($ millions)

($ millions)

Filmed Releasing

Income ($ millions)
($ millions)

1993
1992
1991
1990
1989
1988
1987
1986
1985
1984
1983
1982
1981
1980

5154
4871
4803
5022
5033
4458
4260
3778
3749
4031
3766
3453
2966
2749

1244
1173
1141
1189
1263
1085
1089
1017
1056
1199
1197
1175
1060
1022

161
150
164
169
169
160
129
139
153
167
190
173
173
161

25.7
25.1
24.5
23.7
23.1
23.2
23.6
22.8
21.1
20.2
18.9
18.0
18.0
17.6

17417
15938
14208
12676
11571
9121
8251
6839
6359
5839
5324
4548
3749
3997

1004
1288
948
1103
1130
1151
928
799
465
516
590
565
301
489

44.0
42.3
38.2
38.8
32.7
26.6
28.3
24.1
23.2
21.1
17.1
16.8
15.7
13.7

MPAA is the Motion Pictures Assosciation of America

Total releasing cost includes the film or negative costs, print costs, and advertising costs.

B. Film Industry Revenues by Source in 1995 and 1980.

Theatrical

Home
Video

Pay Network
Cable
TV

Syndication

1995
$ millions
% of total

4,900
27.20%

1980
$ millions
% of total

2,094
52.40%

Foreign Made for

TV TV Films

7,300
40.60%

1,400
7.80%

250
1.40%

750
4.20%

1200
6.70%

2200
12.20%

280
7.00%

240
6.00%

430
10.80%

150
3.80%

100
2.50%

700
17.50%

Source: Entertainment Industry Economics, Harold Vogel, Cambridge University Press, 1995.

Exhibit 1 (continued)
C. Network and Cable Industry Statistics

Network TV
Households
(millions)

Network TV
Ratings

Basic Cable
Households
(millions)

Pay-cable
Households
(millions)

1995

95.6

37.5

60.7

44.9

1980

79.9

50.1

17.6

7.4

Top 15 Cable Networks

Network

CNN
ESPN
TBS Superstation
USA
Discovery
TNT
Nickelodeon
C-Span
The Family Channel
Nashville Network
MTV
Lifetime
A&E
Weather Channel
Headline News

Top 15 Cable Systems

Subscribers
(millions)
61.7
61.6
60.6
60.1
59.5
59.1
59.0
58.9
57.7
57.4
57.4
57.0
56.6
53.4
51.6

Homes passed
Subscribers
by cable
(millions) (millions)
TCI
Time Warner Cable
Continental Cablevision
Comcast
Cablevision Systems
Cox Cable Communications
Newhouse
Jones Spacelink
Cablevision Industries
Adelphia Communications
Times Mirror
Falcon Cable
Viacom Cable
Simmons Comm.
Century Comm.

10.25
7.10
2.89
2.70
2.04
1.72
1.36
1.30
1.29
1.23
1.20
1.09
1.07
0.94
0.93

17.73
12.00
4.99
4.39
3.36
2.77
1.93
2.01
1.93
1.78
2.05
1.27
1.70
1.38
1.65

Source: Entertainment Industry Economics, Harold Vogel, Cambridge University Press, 1995.

Exhibit 3:

Paramount Consolidated Statement of Earnings ($ millions)

(1993 data includes 9 months of actuals and 3 months of casewriter's estimates)

1990
Revenues
Cost of Goods Sold
SG & A

Year ended
10/31
1991
1992

1993

3,869.0
(2,542.6)
(1,022.2)

3,895.4
(2,638.7)
(1,098.9)

4,264.9
(2,739.8)
(1,129.0)

4,641.6
(3,047.6)
(1,254.6)

Operating Income
Other Income(expense)
Interest Expense
Interest Income

304.2
(2.0)
(123.9)
202.7

157.8
0.1
(112.0)
133.8

396.1
(6.6)
(113.8)
121.6

339.4
(6.6)
(94.0)
78.5

Earnings before Taxes

Provision for Taxes
Extraordinary Items

381.0
(121.9)
(8.8)

179.7
(57.5)
0.0

397.3
(123.1)
(8.8)

317.3
(109.2)
(9.1)

Net Earnings

250.3

122.2

265.4

199.0

Depreciation and Amortization

Working Capital*
Capital Expenditures

171.7
550.3
187.9

186.1
850.4
172.9

202.3
704.9
120.0

221.1
802.7
111.8

Working capital is defined as (Current Assets - Cash - Short-term investments) - (Current Liabilities - Short-term debt)
Source: SEC Filings

Exhibit 4:

Paramount Consolidated Balance Sheet ($ millions)

(1993 data includes 9 months of actuals and 3 months of casewriter's estimates)
Year ended

1990

1991

10/31
1992

1993

ASSETS
Cash
Short-term investments
Trade receivables
Inventories
Other current assets
Total Current Assets
Property,Plant & Equipment
Accumulated Depreciation
Net Property, Plant & Equipment
Intangibles
Other Assets
Total Assets

1,112.8
553.6
808.7
577.9
478.7
3,531.7
871.2
(225.8)
645.4
1,138.9
1,223.2
6,539.2

555.3
1,020.7
904.1
590.4
606.7
3,677.2
1,027.4
(268.4)
759.0
1,239.3
965.3
6,640.8

324.3
912.0
979.3
580.2
540.0
3,335.8
1,375.9
(315.9)
1,060.0
1,528.1
1,130.3
7,054.2

380.6
626.5
1,062.2
633.7
538.3
3,241.3
1,572.2
(382.4)
1,189.8
1,560.3
1,454.1
7,445.5

LIABILITIES
Current Maturities of LT debt
Trade Accounts Payable
Income Taxes Payable
Accrued Expenses and other
Total Current Liabilities
Deferred Liabilities
Long-Term debt
Total Liabilities

21.7
143.7
161.2
1,010.1
1,336.7
661.2
712.1
2,710.0

198.3
119.8
131.4
999.6
1,449.1
777.0
519.9
2,746.0

10.0
143.7
139.2
1,111.7
1,404.6
786.0
812.1
3,002.7

10.1
196.5
64.5
1,170.5
1,441.6
871.2
1,002.9
3,315.7

EQUITY
Common Stock
Paid-In Capital
Retained Earnings
Translation Adjustments
Total Net Worth

117.4
575.9
3,120.4
15.5
3,829.2

117.8
629.5
3,136.4
11.1
3,894.8

117.5
665.7
3,264.6
3.7
4,051.5

119.6
778.1
3,252.2
(20.1)
4,129.8

Total Liabilities and Equity

6,539.2

6,640.8

7,054.2

7,445.5

Source: SEC Filings

Exhibit 5:

Viacom Consolidated Statement of Earnings

Year ended
12/31
1990
1991
Revenues
Cost of Goods Sold
SG & A
Income before Deprcn. & Amort.
Deprcn. & Amort.
Non-Operating Income (expense)
Interest Expense
Earnings before Taxes
Provision for Taxes
Other Income (expense)
Extraordinary Items
Net Earnings

1,599.6
(778.2)
(460.2)
--------361.2
(137.4)
(0.5)
(293.7)
--------(70.4)
(20.4)
0.9
0.0
--------(89.8)

Depreciation
Working Capital*
Capital Expenditures

Exhibit 6:

Income before Deprcn.& Amort.

Deprcn. & Amort.
Other Income (expense)
Interest Expense
Earnings before Taxes
Provision(benefit) for Taxes
Extraordinary Items

Depreciation
Working Capital*
Capital Expenditures

1,711.6
(790.8)
(475.6)
--------445.1
(132.9)
(6.5)
(297.5)
--------8.2
(42.1)
(12.7)
(3.1)
--------(49.7)

1,864.7
(854.0)
(518.0)
--------492.7
(144.8)
1.8
(194.1)
--------155.6
(84.8)
(4.6)
(17.1)
--------49.0

966.4
(430.4)
(267.2)
--------268.8
(72.1)
66.9
(80.7)
--------183.0
(70.6)
(0.5)
10.3
--------122.6

132.9
(186.4)
72.2

144.8
(201.4)
110.2

76.5
34.0
70.0

QVC Consolidated Statement of Earnings

Revenues
Cost of Goods Sold
SG & A

Net Earnings

6 Months ended
6/30
1992
1993

1/31
1991

Year ended
1/31
1992

1/31
1993

776.0
(479.9)
(220.4)
--------75.7
(16.2)
(27.3)
(49.1)
--------(17.0)
0.0
0.0
--------(17.0)

921.8
(534.7)
(256.1)
--------131.1
(16.7)
(22.5)
(39.0)
--------52.9
31.2
(2.1)
--------19.6

1,070.6
(621.8)
(284.0)
--------164.7
(17.1)
(20.6)
(18.4)
--------108.7
52.1
(1.5)
--------55.1

46.7
(6.4)
11.9

46.5
27.1
21.1

6 Months ended
7/31
1993
535.7
(314.0)
(144.1)
--------77.6
(8.1)
(7.9)
(0.9)
--------60.7
29.7
4.0
--------34.9
23.5
62.7
12.2

* Working capital is defined as (Current Assets - Cash - Short-term investments) - (Current Liabilities - Short-term debt)

Source: SEC Filings

Exhibit 7:

Viacom and QVC Consolidated Balance Sheets

Viacom
Year ended
12/31
1991

QVC

6 Months ended
6/30
1992
1993

Year ended
1/31
1992

1/31
1993

6 Months ended
7/31
1993

ASSETS
Cash
Total Current Assets
Net Property, Plant & Equipment
Intangibles
Other Assets

28.7
718.2
379.8
2,637.4
453.0

48.4
758.5
457.1
2,658.1
443.5

65.0
947.3
484.0
2,638.1
413.4

36.8
217.0
68.9
414.6
14.0

4.3
234.9
72.9
383.4
9.0

14.6
289.0
78.0
364.1
18.9

Total Assets

4,188.4

4,317.1

4,482.9

714.5

700.2

750.0

LIABILITIES
Current Maturities of LT debt
Total Current Liabilities
Long-Term debt
Other Long-Term Liabilities
Net Worth

0.0
875.9
2,320.9
292.1
699.5

0.0
911.5
2,397.0
252.1
756.5

0.0
848.3
2,475.0
278.5
881.1

49.7
236.3
152.5

24.1
227.6
7.6

3.1
214.8
7.3

325.8

465.1

528.0

Total Liabilities and Net Worth

4,188.4

4,317.1

4,482.9

714.5

700.2

750.0

Source: SEC Filings

Exhibit 8:

Stock Market Data (closing prices)

PCI
Paramount

VIA
Viacom
Class A

VIAB
Viacom
Class B

QVCN
QVC

S&P 500

1992 1st Quarter

2nd Quarter
3rd Quarter
4th Quarter

42.500
45.375
45.625
45.000

37.250
38.500
34.875
44.000

36.500
36.875
32.875
41.875

18.875
20.500
18.625
38.875

403.69
408.14
417.80
435.71

1993 1st Quarter

2nd Quarter

48.875
54.000

46.500
52.625

44.125
49.500

57.000
63.500

451.67
450.53

July 31
August 30

51.750
55.500

51.750
62.750

46.875
56.750

68.500
65.500

448.13
463.56

Dividend

0.800

0.000

0.000

0.000

120.0

53.4

67.1

37.7

Shares Outstanding (millions)

Exhibit 9: Pro Forma Combinations

Paramount - Viacom Combination
Pro Forma Revenues ($ millions)
Paramount
Entertainment

$2,021

Viacom Combined
$233

$2,254

Networks
Cable TV
Broadcasting
Live Entertainment
Publishing
Total

$187
$0
$216
$634
$1,667

$1,143
$421
$175
$0
$0

$1,330
$421
$391
$634
$1,667

$4,725

$1,972

$6,697

Paramount - QVC Combination

Pro Forma Revenues ($ millions)
Paramount
Entertainment
Networks
Cable TV
Broadcasting
Live Entertainment
Publishing
Total

QVC Combined

$2,021
$187
$0
$216
$634
$1,667

$0
$1,200
$0
$0
$0
$0

$2,021
$1,387
$0
$216
$634
$1,667

$4,725

$1,200

$5,925

Source: Merrill Lynch Analyst Report, September 14, 1993 and casewriter estimates

Exhibit 10:Cash flow forecasts

Paramount as stand alone company
1993
(est.)
Sales
EBITDA
Capital Expenditures
Increase in Net Working Capital
Depreciation (tax deductible)
Asset Sales Proceeds (after-tax)

4641.6
560.5

Viacom as stand alone company

1994

4905.0
660.6
160.1
45.6
162.0

1995

5264.3
737.0
177.3
62.1
172.0
900

1996

5648.6
790.8
176.7
66.5
184.0

1997

6060.0
848.4
202.9
71.2
196.0

1998

6500.7
910.1
216.6
76.2
209.0

1993
(est.)
Sales
EBITDA
Capital Expenditures
Increase in Net Working Capital
Depreciation (tax deductible)

2008.0
538.4

Est. EBITDA synergies w/ Paramount

1994

1995

1996

1997

1998

2173.0
642.0
210.9
5.0
181.0

2386.0
736.0
227.7
6.4
205.0

2595.0
825.0
228.3
6.3
229.0

2826.0
935.7
266.1
6.9
246.0

3077.5
1059.1
288.4
7.5
269.0

134.0

150.0

171.0

216.0

223.0

QVC as stand alone company

1993
(est.)
Sales
EBITDA
Capital Expenditures
Increase in Net Working Capital
Depreciation (tax deductible)

1231.0
190.0

1994

1416.0
215.0
55.0
9.3
47.0

1995

1628.0
255.0
63.2
10.6
54.0

1996

1873.0
302.0
72.8
12.3
62.2

1997

2153.0
358.0
83.6
14.0
71.5

Source: Paramount Communications 13E3 dated May 25, 1994 and casewriter estimates.

Exhibit 11:Capital Markets Information on September 10, 1993

One-YearTreasury Bills
Two-YearTreasury Note
Ten-Year Treasury Note
Thirty-YearTreasury Bond
AA Long-term Debt
A Long-term Debt
BBB Long-term Debt
BB Long-term Debt
B Long-term Debt

3.44%
4.00%
5.68%
6.25%
7.05%
7.24%
7.59%
9.00%
10.75%

Paramount Equity Beta

Viacom Equity Beta
QVC Equity Beta

1.0
1.2
1.5

Exhibit 12:
Summary Comparative Market Data for Selected Entertainment and Media Companies
Market Value of Total Capital as a Multiple of:
Est.
Est.
1993
1994
EBITDA EBITDA

Walt Disney
Time Warner
Turner Broadcasting

------

------

13.3
11.2
14.8

12.2
10.4
11.9

1998

2476.0
422.0
96.2
16.2
82.2

Market Value of total capital is the sum of the market value of common stock, preferred stock, and debt less cash and marketable securities.
Source: Paramount Communications 13E3 dated May 25, 1994.

Exhibit 13:
Summary Transaction Value Data for Selected Entertainment and Media Companies
Buyer

Target

Year

Market Value
Of Capital to
EBITDA

Matsushita
Time
Sony
Turner Broadcasting

Universal / MCA Studios

Warner
Columbia Pictures
MGM Film Library

1990
1990
1989
1987

16
12
22
20

Market Value of total capital is the sum of the market value of common stock, preferred stock, and debt less cash and marketable securities.
Source: Paramount Communications 13E3 dated May 25, 1994.

Exhibit 14:
Smith Barney Analysis of Paramount
Discounted Cash Flow Analysis
Values of Total Capital -- Debt + Equity

Price per share of common stock

Using Terminal Value Multiples of EBITDA:

14
15
16

Using Terminal Value Multiples of EBITDA:

14
15
16

10.0%
Discount Rates 11.0%
12.0%

$9,554
$9,163
$8,792

Total debt
Cash

$1,013
$1,007

Shares outstanding

120

$10,152
$9,736
$9,341

$10,750
$10,308
$9,888

Discount Rates

10.0%
11.0%
12.0%

$79.57
$76.31
$73.22

$84.55
$81.08
$77.79

$89.53
$85.85
$82.35

The discounted cash flow analysis calculates after-tax free cash flows to an all-equity firm for five years based on Paramount projections.
The analysis calculates a terminal value by applying an EBITDA multiple to the EBITDA in the fifth and final year of the proejctions.
The analysis then discounts the after-tax free cash flows and terminal value to obtain a value of debt and equity.
Source: Paramount Communications 13E3 dated May 25, 1994 and case writer adjustments

Exhibit 15:
Smith Barney Analysis of Paramount
Public Market Valuation
(The values that Paramount could expect to receive based on comparable publicly traded firms)
1994 Est.
EBITDA
Entertainment
Theatrical
Television
Stations and Networks
TV Stations
Networks - SciFi
Networks - USA
MSG
Theatres

Public Market Trading

Multiple of EBITDA

Public Market
Public Market Trading Value Range
Trading Value Rangewith 30% Acquisition Premium

$125.0
$60.0

12
11

15
14

$1,500.0
$660.0

$1,875.0
$840.0

$1,950.0
$858.0

$2,437.5
$1,092.0

$65.0
$0.0
$50.0
$24.0
$45.0

10

15

18

10

$520.0
$50.0
$750.0
$400.0
$360.0

$650.0
$75.0
$900.0
$600.0
$450.0

$676.0
$65.0
$975.0
$520.0
$468.0

$845.0
$97.5
$1,170.0
$780.0
$585.0

Theme Parks
Total Entertainment
Publishing
Educational
Business
Consumer
International
Macmillan
Total Publishing
Corporate Expenses
Total Value

$90.0
7
9
$630.0
$810.0
$819.0 $1,053.0
--------------- --------------- --------------- --------------- --------------- --------------- --------------$459.0
10.61
13.51
$4,870.0
$6,200.0 $6,331.0 $8,060.0

$154.0
9
11 $1,386.0
$1,694.0 $1,801.8 $2,202.2
$25.0
8
10
$200.0
$250.0
$260.0
$325.0
$36.0
10
12
$360.0
$432.0
$468.0
$561.6
$33.0
10
12
$330.0
$396.0
$429.0
$514.8
$30.0
12
14
$360.0
$420.0
$468.0
$546.0
--------------- --------------- --------------- --------------- --------------- --------------- --------------$278.0
9.48
11.48
$2,636.0
$3,192.0 $3,426.8 $4,149.6
($76.4)
$660.6

5
10.78

7
13.41

($382.0)

($534.8)

$7,124.0

$8,857.2

$59.32

$73.76

Equity Value per share

($496.6)

$9,261.2 $11,514.4

Source: Paramount Communications 13E3 dated May 25, 1994.

Exhibit 16:
Smith Barney Analysis of Paramount
Private Market Valuation
(The values that Paramount could expect to receive in a private market sale)
1994 Est.
EBITDA
Entertainment
Theatrical
Television
Stations and Networks
TV Stations
Networks - SciFi
Networks - USA
MSG
Theatres

Private Mkt. EBITDA

Multiple Range

Private Mkt. Value Range

$125.0
$60.0

16
14

18
16

$2,000.0
$840.0

$2,250.0
$960.0

$65.0
$0.0
$50.0
$24.0
$45.0

10

12

16
29
10

20
34
12

$650.0
$50.0
$800.0
$700.0
$450.0

$780.0
$75.0
$1,000.0
$1,000.0
$540.0

($695.2)

$77.13

$95.90

Theme Parks
Total Entertainment
Publishing
Educational
Business
Consumer
International
Macmillan
Total Publishing
Corporate Expenses
Total Value

$90.0
8
10
$720.0
$900.0
--------------- --------------- --------------- --------------- --------------$459.0
13.53
16.35
$6,210.0
$7,505.0

$154.0
11
13 $1,694.0
$2,002.0
$25.0
10
13
$250.0
$325.0
$36.0
12
14
$432.0
$504.0
$33.0
12
14
$396.0
$462.0
$30.0
18.4
23.3
$552.0
$699.0
--------------- --------------- --------------- --------------- --------------$278.0
11.96
14.36
$3,324.0
$3,992.0
($76.4)
$660.6

5
13.85

Equity Value per share

Source: Paramount Communications 13E3 dated May 25, 1994.

7
16.59

($382.0)

($534.8)

$9,152.0

$10,962.2

$76.22

$91.30