Jan. 28 (Bloomberg) -- Viacom Inc. Chief Executive Officer Philippe Dauman said the owner of MTV Networks and the Paramount film studio is ``recession-resistant'' and met a target for Internet revenue last year.

Digital sales reached the $500 million goal Dauman set after he took over the New York-based company in 2006. Internet businesses will become a larger and more integrated part of Viacom, Dauman said in an interview today. Overall, the company hasn't seen any effect of an economic slowdown, he said.

``So far we are not really seeing any impact of all the talk of the economy,'' Dauman said in an interview with Bloomberg Television today in New York. ``We have the benefit of good ratings and a shortage of inventory in the ad sales marketplace.''

Viacom is partly sheltered from a deteriorating economy because consumers continue to go to the movies and watch TV during a recession, said Dauman, who is 53. The comments echoed those made by CBS Corp. CEO Leslie Moonves, who called the broadcasting network ``almost recession-proof'' last week. Both companies are controlled by Sumner Redstone.

``Our company and the businesses we are in tend to be recession-resistant,'' Dauman said. ``Not immune, of course, to a slowdown, but resistant.''

Viacom's Class B shares gained $1.20, or 3.3 percent, to $37.60 as of 4:02 p.m. in New York Stock Exchange composite trading. The shares, up 7 percent last year, fared better than other media stocks. Time Warner Inc., the world's largest media company, fell 24 percent in 2007 and Disney, the second-largest, dropped 4.5 percent. CBS lost 13 percent.

Possible Recession

U.S. retail sales fell last month, unemployment climbed, and factory production slowed. Purchases of new homes in the U.S. unexpectedly fell to a 12-year low in December, signaling little prospect for a recovery.

The possibility of a recession led Goldman Sachs Group Inc. to reduce profit estimates for media companies including Viacom and Disney. Goldman said Jan. 9 that Viacom's earnings before interest, taxes, depreciation and amortization may gain 6 percent this year, down from a previous prediction of 8 percent.

Overall, traditional advertising sales in the U.S. will decline 3 percent to 5 percent this year, Goldman estimates.

Viacom also hasn't seen negative effects of the Hollywood writers' strike on its business, Dauman said today. A labor agreement signed this month by studios and the directors' union laid ``a good path'' for negotiations with the Writers Guild of America, he said.

Steven Spielberg

Film and television members of the WGA walked off their jobs Nov. 5 seeking payment for programs that are shown on the Internet and mobile devices. The two sides started talking again last week after Hollywood studios and broadcasters reached a labor deal with the Directors Guild of America.

Steven Spielberg, who is directing the fourth ``Indiana Jones'' film for Paramount, can opt out of his contract with Viacom at the end of the year. If the director and the co- founders of the DreamWorks studios decide to leave, it wouldn't have a big financial impact on Viacom, Dauman said. He also said he hoped Spielberg would remain with Paramount.

``Steven has, as an individual, the right to go on a different path,'' Dauman said. ``It will be his decision to make, but whatever he chooses to do, we will be in business with them for many years to come.''

Nickelodeon Unit

Regardless of Spielberg's decision, Paramount will continue distributing films for Glendale, California-based DreamWorks Animation SKG Inc., maker of ``Shrek'' movies. Spielberg, Jeffrey Katzenberg and David Geffen co-founded DreamWorks. The company spun off its animation studio in 2004 and sold the live-action operation to Viacom in 2006.

Separately today, Viacom's Nickelodeon unit named Brown Johnson president of animation for Nickelodeon and the MTVN Kids and Family Group. Brown, who brought the hit children's programs ``Blue's Clues'' and ``Dora the Explorer'' to TV, will head development and production for all animated programming.

Viacom also formed a partnership with Royal Caribbean Cruises Ltd. to start a Nickelodeon-themed cruise for families. The first Nickelodeon cruise will start in August and run for one week, the companies said today.

To contact the reporter on this story: Andy Fixmer in New York at afixmer@bloomberg.net; Greg Miles in New York at gmiles1@bloomberg.net.

Last Updated: January 28, 2008 16:10 EST