Discovery Communications

Posted on November 30, 2016 by wqiu100

By Erin Qiu, Ryan Wagner

[1] Discovery Communications logo

DISCOVERY COMMUNICATIONS, INC.

One Discovery Place

Silver Spring, MD 20910

240-662-2000

OVERVIEW

John Hendrick found Discovery Communications, Inc. (DCI), a global mass media and entertainment company based in Maryland, in 1985 [2]. The company first started with a single channel, The Discovery Channel, and later offered non-fiction programming through its network entertainment brands including The Learning Channel (TLC), Animal Planet, Science and Turbo/Velocity, Discovery Education, Investigation Discovery, OWN:Oprah Winfrey Network, and Eurosport. The company’s programs can be mainly separated into three types: Nonfiction, Sports, and Kids. DCI explores science fields, inspiring and entertaining people with its content. It also produces educational programs and services to schools. DCI in global entertainment reaches 3 billion cumulative subscribers in more than 220 countries and territories [3].

                 
   [4] TLC         [5] Animal Planet [6]Science Channel  (7)Turbo         (8)Velocity    (9)Discovery Education (10)Investigation Discovery (11)OWN:Oprah Winfrey Network (12)Eurosport

KEY EXECUTIVES

Discovery Communications is made up of an executive board that oversees all functions of the company [13]. The President and Chief Executive Officer, David M. Zaslav, also acts as Director and member of the Executive Committee and the President and CEO of Discovery Communications Holdings LLC. Zaslay makes a salary of $10,610,000, while Andrew Warren, the Senior Executive Vice President and Chief Financial Officer makes about $2,530,000 [14].

: Robert J. Miron – Chairman

: David M. Zaslav – President and Chief Executive Officer

: Andrew Warren – Senior Executive Vice President & Chief Financial Officer

: Bruce Campbell – Chief Development, Distribution & Legal Officer

: Adria Alpert Romm – Chief Human Resources & Global Diversity Officer

: David C. Leavy – Chief Corporate Operations and Communications Officer

FINANCIAL INFORMATION

Discovery Communications is a publicly traded company on the New York Stock Exchange in Series A under the ticket name DISCA. On November 29, 2016, the closing price per share was $27.65. Over the previous 52 weeks, Discovery Communications has marked its highest sale price at $31.39 and its lowest sale price at $23.66 [15]. Over the past two years, DCI has noticed a decline in stock. While this drop in stock price occurred back in 2014, the company has since seen stabilization.

[16] 2 Year Overview of Stock Prices for DSCA

Much of Discovery Communication’s revenues are made possible through distribution fees charged for their services. Additional revenues are generated through consumer advertising, with national options for purchasing ad slots either upfront or in scatter markets. In fact, in 2015, distribution made up 48% of their revenue, while advertising made up 47%, leaving 5% due to other revenue [17].

In their 2016 third quarterly report, Discovery Communications identifies a 22% decrease in net income since last year’s third quarter, dropping funds from $279,000,000 to $219,000,000. Due to currency changes, DCI’s International Networks saw a decrease of 16% which was not offset by the domestic increase in network of 3%, unfortunately.

INDUSTRY

Since its foundation in 1985 as a simple channel, DCI gradually expanded itself and established its New World Headquarters in Maryland in 2003 [18]. During these years, DCI added a second network by acquiring The Learning Channel (TLC) from Financial News Network Inc. (FNN) [19]. It also launched network’s website (Discover.com), and created channels for Animal Planet, Discovery Science, Discovery News, and partnered with Global Education to launch the Nonprofit Discovery Channel. With all these achievements, DCI became the World’s Most Widely Distributed Television Brand in 2001. After 2003, DCI continued launching networks including Discovery Education in 2004, its first First-Free-to-Air Channel in 2006, and Investigation Discovery in 2008, and teamed up with Oprah for OWN: Oprah Winfrey Network in 2011 [20]. In 2008, the owners of Discovery Communications, Advance/Newhouse and Discovery Holding combined their stakes and began trading as a public company on the NASDAQ stock exchange [21]. As DCI built partnerships and made investments in the U.S., it also paved the way to international partnerships and investments as well.

INTERNATIONAL PARTNERSHIPS AND INVESTMENTS

DCI has established its mighty international networks throughout the years since 1989 when it launched the Discovery Channel in the United Kingdom and Scandinavia [22]. Discovery Networks International includes five regional operations and covers all major cable and satellite markets, which includes the Asia-Pacific region, Central and Eastern Europe, the Middle East and Africa, Latin America/U.S. (Hispanic), Northern Europe, and Southern Europe. In each of these regions, DCI distributes an average of 10 channels in every market. Discovery Networks International not only offers customized schedules, but also programs in 45 languages worldwide via 352 distribution feeds [23]. Between 2014 and 2016, DCI has announced partnerships with several companies. In 2014, DCI launched the digital studio New Form with Brian Grazer and Ron Howard [24], and the same year, it acquired All3Media with Liberty Global [25]. In 2015, Liberty Global and Discovery Communications made a joint investment in Lionsgate and acquired stake in the company [26].

CURRENT PROJECTS

In August 2016, DCI and Liberty Global renewed their distribution agreement, a long-term deal that allows DCI to distribute its programs across 12 countries, including Austria, Belgium, the Czech Republic, Germany, Hungary, Ireland, Poland, Romania, Netherlands, Slovakia, Switzerland and the UK in Europe. The agreement also encompasses digital rights which enable viewers to watch programs anywhere [27].

Eurosport has also obtained the rights to distribute all matches of the Wimbledon tennis tournament live in an additional 16 countries for the next three years, 2017 to 2019, by extending the deal with The All England Club. The deal includes both TV and digital rights. A new deal has also been agreed upon that allows Eurosport to present all four Grand Slams: Wimbledon, the Australian Open, Roland-Garros, and the US Open [28].

In October 2016, DCI announced a partnership with World Wildlife Fund (WWF) that conserves an almost one million acres of land for tigers in India and Bhutan. The project, Project C.A.T. (Conservation Acres for Tigers), tries to protect and increase the wild tiger population, and allows rangers to better observe wild tigers’ health and collect data. DCI would also produce and distribute public service announcements and in-program content that bound with Project C.A.T., in the purpose of raising public awareness. DCI is planning to air a new documentary about tigers on its global networks in 2018 [29].

[30] Project C.A.T.

FUTURE PROJECTS

In 2005, DCI gained the rights to distribute the four Oympic Games in the 2018-2024 period in Europe on all TV and all platforms, including free-to-air television, subscription/pay-TV television, internet and mobile phone in all languages across 50 countries and territories on the European continent [31]. However, DCI has to agree upon on the requirements by The International Olympic Committee (ICO) and local market to broadcast a minimum of 200 hours of the Olympic Games and 100 hours of the winter Games of free-on-air television during the Games period [32].

        
 [33][34]International Olympic Committee Awards All TV and Multiplatform 
Broadcast Rights in Europe to Discovery and Eurosport for 2018-2024 
Olympic Games

DCI made a $100 million investment and entered into a strategic partnership witn Group Nine Media. The Group Nine Media Company is a new media holding company, consisting of Thrillist Media Group, NowThis Media, The Dodo, and Discovery’s digital network Seeker. The goal is to create one of the world’s largest digital-first content companies. The brand, Media Nine Group, not only allows each individual companies to remain independent but also enables the companies to support one another. The content studio and Thrillist’s sales team, The Colab will combine with NowThis Studios, The Dodo, and Seeker’s combined content team to create a major advertising solutions group across all the new brands. The company will also combine technology capabilities to create a publishing platform to power all brands. A new video department will be generated that will be responsible for creating OTT/on-demand and linear TV programming across all properties [35].

SOURCES

[1] Discovery Communications Logo. Google Images. Retrieved: November 29^th 2016.

[2] Our History. Discovery Communications. Retrieved: November 29^th 2016.

[3] Investor Relations. Discovery Communications. Retrieved: November 29^th 2016.

[4] TLC Logo. Google Images. Retrieved: November 29^th 2016.

[5] Animal Planet Logo. Google Images. Retrieved: November 29^th 2016.

[6] Science Channel Logo. Google Images. Retrieved: November 29^th 2016.

[7] Turbo Logo. Google Images. Retrieved: November 29^th 2016.

[8] Velocity Logo. Google Images. Retrieved: November 29^th 2016.

[9] Discovery Education Logo. Google Images. Retrieved: November 29^th 2016.

[10] Investigation Discovery Logo. Google Images. Retrieved: November 29^th 2016.

[11] OWN:Oprah Winfery Network Logo. Google Images. Retrieved: November 29^th 2016.

[12] Eurosport Logo. Google Images. Retrieved: November 29^th 2016.

[13] Leadership. Discovery Communications. Retrieved: November 29^th 2016.

[14] Key Executives. Yahoo Finance. Retrieved: November 29^th 2016.

[15] Summary. Yahoo Finance. Retrieved: November 29^th 2016.

[16] 2 Year Overview of Stock Price for DSCA. Yahoo Finance. Retrieved: November 29^th 2016.

[17] 2015 Annual Report. Discovery Communications. Retrieved: November 29^th 2016.

[18] Our History. Discovery Communications. Retrieved: November 29^th 2016.

[19] Associated Press (April 2^nd 1991). THE MEDIA BUSINESS; Discovery to Buy a Channel. The New York Times. Retrieved: November 29^th 2016.

[20] Our History. Discovery Communications. Retrieved: November 29^th 2016.

[21] Discovery to combine stakes in Discovery Communications with Advance/Newhouse (December 13^th 2007). CNNMoney. Retrieved: November 29^th 2016.

[22] Our History. Discovery Communications. Retrieved: November 29^th 2016.

[23] Businesses & Brands. Discovery Communications. Retrieved: November 29^th 2016.

[24] Jarvey, Natalie (April 2^nd 2014). Brain Grazer, Ron Howard Launch ‘New Form’ Digital Studio With Discovery. The Hollywood Reporter. Retrieved: November 29^th 2016.

[25] Newsroom. Discovery Communications. Retrieved: November 29^th 2016.

[26] James, Meg and Faughnder, Ryan (November 10^th 2015). Lionsgate sells 6.8% stake to John Malone’s Liberty Global and Discovery. Los Angeles Times. Retrieved: November 29^th 2016.

[27] Briel, Robert (August 2^nd 2016). Liberty Global and Discovery sign 12-market carriage deal. Broadband YV News. Retrieved: November 29^th 2016.

[28] Dickens, Andrew (March 8^th 2016). Eurosport serves Wimbledon further. C21Media. Retrieved: November 29^th 2016.

[29] Paul, Jonathan (October 19^th 2016). Discovery, WWF partner for Project C.A.T. Realscreen. Retrieved: November 29^th 2016.

[30] Project C.A.T. Logo. Google Images. Retrieved: November 29^th 2016.

[31] Press Release (June 29^th 2015). IOC AWAEDS ALL TV AND MULTIPLATFORM BROADCAST RIGHTS IN EUROPE TO DISCOVERY AND EUROSPORT FOR 2018-2024 OLYMPIC GAMES. Olympics. Retrieved: November 29^th 2016.

[32] BBC and Discovery Communications sign long-term Olympics Games partnership (February 2^nd 2016). BBC. Retrieved: November 29^th 2016.

[33] International Olympic committee Awards All TV and Multiplatform Broadcast Rights in Europe to Discovery and Eurosport for 2018-2024 Olympic Games. Google Images. Retrieved: November 29^th 2016.

[34] International Olympic committee Awards All TV and Multiplatform Broadcast Rights in Europe to Discovery and Eurosport for 2018-2024 Olympic Games. Google Images. Retrieved: November 29^th 2016.

[35] Newsroom. Discovery Communications. Retrieved: November 29^th 2016.

Scripps Interactive

Posted on November 29, 2016 by Barbara

by Bridget McAllister & Andrew Mendosa

Scripps Networks Interactive is a U.S.-based network television company specializing in home and lifestyle content. Their primary brands are Food Network, the Cooking Channel, the DIY Network, the Travel Channel, Great American Country, and HGTV.[1]

Scripps Interactive’s popular networks.

EXECUTIVE PROMOTIONS

Scripps has seen some shake-up of its lead executive team in the last month; programming executive Allison Page was promoted mid-November to General Manager of US Programming & Development for all six of Scripps’ brands. She was previously not involved with programming for the Cooking Channel or Food Network. The move was announced November 14^th by Kathleen Finch, the company’s Chief Programming, Content, & Brand Officer, and hopes to capitalize off Page’s observed success propelling HGTV in particular to the forefront of cable TV. Under Page’s leadership, HGTV became the #1 cable network for women, and has seen consistent growth for nine consecutive quarters.[2]

Page will be joined by Julie Taylor as new Senior Vice President of Program Planning & Strategy for all six networks in the United States.[3]

Shannon Jamieson Driver, a Scripps veteran who has already been leading marketing campaigns for all six of Scripps’ lifestyle networks, was promoted to General Manager of U.S. Brand Marketing.[4]

Mark Neil, former Chief Financial Officer for Scripps Interactive, was lured away from Scripps in late October by A&E Networks UK. A 25-year veteran of the media landscape, Neil will be leaving his contract with Scripps effective immediately in January 2017.[5] Stepping into the role is Lori Hickok, who has been with Scripps since 1988.[6]

High-ranking female executives of Scripps Networks Interactive, here featured on the cover of Cablefax Magazine.

FINANCIAL DEVELOPMENTS

On November 7^th, Scripps Interactive released their third quarter 2016 earnings report. Scripps exceeded analyst estimates, reporting earnings of over $803 million despite expectations of closer to $795 million. EPS (earnings per share) was reported at $1.26, where the same quarter 2015 was only $1.03.[7] [8]

Since the release of their third quarterly earnings report, Scripps has had the most animated rise in stock value it’s seen since July; a stock was worth just over $65 on the day of the release and the day after, rising each day afterward to $67, then just over $68, and so on. On November 14^th, the day promotions were announced for Allison Page, Julie Taylor, and Shannon Jamieson Driver, stock value for Scripps shot up to nearly $74. While stock value has cooled after this peak, their stock value maintained stronger than the beginning of November at just over $69 at the closing of the market yesterday, November 28^th. This is a happy upturn from earlier fourth quarter, when stocks reached a low of barely above $61 in mid-October.[9]

Scripps Networks Interactive plans, too, to present on December 6^th at the 44^th annual UBS Global Media and Communications Conference, an organized corporate event where companies engage with the general community and, in particular, current and potential investors. Scripps has announced only that they will be updating investors on the company’s strategy going forward into the new year.[10] [11]

SOCIAL MEDIA PRESENCE

On November 18^th, Scripps used one of its most popular brands, Food Network, to expand its social media interaction. Food Network launched a conversation-simulating bot for Facebook Messenger, which gives users suggestions for recipes, interesting ingredients, or foods that compliment one another, just in time for the holiday season. Liesel Kipp, Vice President of Product Management for Scripps, explained that the bot’s intended purpose is to deepen the personal, friendly relationship consumers have with the much-trusted Food Network, and to increase consumer involvement with the brand on a daily, real-world basis. The bot currently “knows” approximately 60,000 Food Network recipes.[12]

DISTRIBUTIONS

Scripps Interactive and media conglomerate Tribune Media agreed on October 28^th upon a multi-year extension of their partnership regarding Food Network; namely, Scripps will continue to allow Tribune to broadcast Food Network over its cable networks. Food Network is one of Scripps’ most coveted and successful brands. Both companies have expressed great excitement for the deal.[13]

However, Scripps also announced in early November that they will not be continuing their distribution deal with Netflix. In their third quarterly earnings call, CEO Ken Lowe explained that Scripps will be pursuing more traditional routes of advertising and distribution. Lowe explained that the decision was ultimately influenced by the monetization of content. The call stated that Netflix was no longer a promising source of revenue for Scripps’ brands, especially as Netflix has increased its focus on its own original content.[14] However, Scripps announced in late September that it will be joining Viacom in moving its content to DirecTV Now, an AT&T-owned streaming service to be launched later this year. It is unknown whether Food Network, HGTV, and Scripps’ other brands will be immediately available on the platform when it launches. [15]

INTERNATIONAL HORIZONS

A newly released study taken in the Asia-Pacific region reveals that Scripps’ brands, Food Channel, Food Network, HGTV, and Travel Channel are “significantly outranking” their competitors in the home and travel categories. The consumers are described as “highly engaged”, meaning Scripps’ audience is the most receptive to advertisers. Scripps’ audience members in the region tend to be wealthy, and are more likely to visit restaurants they see advertised, renovate their homes, or purchase higher priced ingredients compared to competition.[16]

Scripps Interactive also hopes to expand availability of the Food Network in Brazil through pay-tv platforms NET and Claro. Through a distribution deal with these platforms announced in early November, Food Network is now available to nearly 7 million Brazilian households.[17] This adds to the expansion of Food Network availability in Chile, Argentina, and Mexico from August through September.[18] [19] [20]

On October 19^th, plans were announced to launch the Cooking Channel in Canada through a distribution deal with Canadian media company Corus Entertainment. This would build upon Scripps Interactive’s existing brand presence in Canada, joining Food Network, HGTV, and the DIY Network.[21]

However, Scripps has set its sights past North America and even Asia to Europe, where its popular channels are currently unavailable. Scripps successfully purchased Polish broadcast network TVN last year, and announced on October 25^th that it will use TVN as a foothold to make HGTV, Food Network, and the Travel Channel available in Europe for the first time in 2017. Though initially only in Poland, it remains unannounced whether Scripps has any nearby plans to branch out to other countries.[22]

Scripps Networks Interactive is based in Knoxville, Tennessee, located at 9721, Sherrill Blvd. Their head of investor relations is Mike Gallentine, who can be reached at (865) 560-4473.[23]

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iHeart Media & Entertainment

Posted on October 16, 2016 by trlevy

by TALIA LEVY and VALERIE POWELL

[16] iHeartMedia Company Logo

iHeartMedia, Inc

200 East Base Road

San Antonio, Texas

HISTORY

iHeart Media was originally founded in San Antonio, Texas under the name Clear Channel Communications. The company was founded by Lowry Mays and B.J. McCombs in 1972. In 2008, the company became private by a leveraged buyout through Bain Capital, LLC and Thomas H. Lee Partners.

iHeartMedia has the widest reach in America for any radio or television outlet with an audience of over a quarter of a billion listeners each month. The company currently covers 150 of the U.S. markets with 858 broadcast radio stations. iHeartMedia delivers a variety of content including music, talk shows, news, and sports through broadcast stations, satellite, online, via smartphones and via live shows. iHeartRadio currently has 92 million registered users with a year-over-year growth of 22% with an increase of 8% in total listening hours. As of September 30th, cumulative upgrades and downloads have reached a new record of 1.1 billion [4].

KEY EXECUTIVES

Bob Pittman [12] Chairman and Chief Executive Officer

Wendy Goldberg [13] Executive Vice President and Chief Communications Officer

16aabe89605896347ecf40b25200cc7d_400x400

William Eccleshare [15] Chairman and CEO, Clear Channel International

Richard J. Dressler [14] President, Chief Operating Officer and Chief Financial Officer

FINIANCIAL

For the second quarter of 2016, iHeartMedia’s loss widened to $278.89 million due to billboard sales in Turkey that expanded the ongoing debt $56.6 million. The loss was more than five times the amount of 2015’s second quarter loss of $54.66 million [3]. Even though there was a large loss in the second quarter, the company is still generating revenue in the third quarter of 2016 for a total of $857.1 million. Due to a growth in network business and the Presidential Election, digital advertising and broadcast radio primarily drove the growth in revenue of $10.2 million (1.2%) from the previous year’s third quarter revenue [4].

The increase in revenue allows iHeart to stay on top of their current debt of $20.78 billion as of June 30th, 2016. The large debt is mainly due to a buyout in 2008 by two Boston private-equity firms, allowing them to gain 70% of the iHeartMedia Company. Debtwire senior credit analyst, Seth Crystall, explains that iHeart is a “powerful brand” and will continue to increase revenue to make up from their current losses by the transformation of their listeners to their mobile app [3].

[17] Singer Taylor Swift singing at the iHeartRadio Music Awards.

iHEART MUSIC FESTIVALS

The iHeart Music Festival Tour is iHeartRadio’s biggest live musical event, generating a large income for the company, with a portion of the ticket profits going towards the Ryan Seacrest Foundation. iHeartMedia’s President of National Programming Group, Tom Poleman, says, “Fans wait all year to hear who will be playing this tour and we’re thrilled to announce an impressive lineup” [11]. The concerts are held in major cities throughout the country by the iHeartRadio stations in those areas. The Jingle Ball Tour is iHeartRadio’s biggest musical event, generating a large income for the company. The tour is sponsored by Capital One, which allows card holders to gain early access to tickets before going to the general public [7].

[18] Bon Jovi Photographed performing at an iHeartRadio live concert.

The live iHeart Radio concerts are a mutually beneficially event for both the artists involved and iHeartMedia. For example, most recently the artist The Weekend celebrated the release of his new album Starboy in Toronto by headlining the iHeartRadio Canada Jingle Ball. Thirty minutes of his live set was broadcasted on the iHeartRadio App, along with 112 of iHeart Media’s radio stations including KISS in Los Angeles and Z100 in New York [1]. The iHeartRadio Jingle Ball in Toronto also included performances by major artists such as Niall Horan, The Chainsmokers, and Alessia Cara.

[23] iHeartRadio celebrated One Direction’s 2013 album Midnight Memories with a special release party.

iHEART GLOBALLY

Recently, iHeartRadio expanded into Canada with the collaboration of North America’s fastest growing digital audio service, Bell Media [2]. Canadians now have instant access to stations and to free streaming channels via iOS, Android apps, and at iHeartRadio.ca. iHeartRadio Canada uses content from Bell Media, which has over 105 licensed radio stations and 100 streaming channels [2]. With the expansion into Canada, iHeartRadio’s Jingle Ball will now be present in Toronto.

[21] iHeartMedia’s Fiesta Latina is a part of the company’s Hispanic initiative.

This part quarter iHeart partnered with Hispanic radio legend Enrique Santos, to create a new Hispanic initiative to develop new programming content for iHeartMedia across their various platforms. This new initiative recognizes the increasing size of the the U.S. Hispanic community that are both English and Spanish speakers, as well as utilizes Santos’ popular reputation within the Latino community [8].

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[22] iHeart partnered with Telemundo to air the program.

Building off of this new initiative, just this past November iHeart celebrated the best in Latin Music at the iHeartRadio Fiesta Latina. They partnered with Telemundo to air the exclusive TV special and streamed the event live on Telemundo.com. Telemundo is an American-Spanish language television network owned by Comcast through NBCUniversal [10]. The event broadcasted live on iHeartMedia Spanish-Pop, Tropical, regional Mexican and Spanish Adult Hit radio stations all across the country [8].

THE FUTURE

This coming January, iHeartMedia will be launching a new On-Demand music streaming service, that will put them amongst competition of services like Spotify and Apple Music. The iHeartRadio All Access service will offer its subscribers unlimited on-demand listing to over 30 million songs. They will also offer a cheaper option, iHeartRadio Plus, which will gives its subscribers the ability to instantly replay songs they heard on iHeartRadio stations, through the app. According to iHeartRadio,the company has not yet decided how to price the two new services. However, $9.99 a month has become an industry standard for full on-demand subscriptions services. iHeartMedia earns most of its revenue through on-air advertisements, which they still will continue to air, despite the new revenue from the subscription service.

[19] iHeart will be unveiling 2 different On-Demand services. iHeartRadio Plus and iHeartRadio All Access.

iHeartMedia is not the only major radio based company making the switch, Pandora is creating its own on-demand based product estimated to cost $4.99 a month in the near future [6]. According to iHeart, iHeart All Access will “include a full on demand music collection experience – but one still tied directly to radio.” the company said. When listeners hear a song on the radio that they like, for the first time ever they will be able to replay that song or even save it directly to their playlist.

[20] iHeart Radio’s On-Demand service is expected to launch in January 2017.

Sources:

[1] Bliss, Karen. “The Weeknd’s Album Release Day Live Set Broadcast on IHeartRadio.”Billboard. Billboard Music, 26 Nov. 2016. Web. 27 Nov. 2016.

[2] Dupuis, Renee. “IHeartRadio Now Available in Canada: Free Streaming Service Brings Canadians Biggest and Best Music Experience.” Bell Media. Bell Media Canada, 6 Oct. 2016. Web. 29 Nov. 2016.

[3] Hendricks, David. “IHeartMedia’s Second-quarter Loss Widens to $278.9 Million.” San Antonio Express-News. San Antonio Express-News, 4 Aug. 2016. Web. 29 Nov. 2016.

[4] IHeartMedia, Inc. IHEARTMEDIA, INC. REPORTS RESULTS FOR THIRD QUARTER 2016. Rep. IHeartMedia, INC., 9 Nov. 2016. Web.

[5] Karp, Hannah. “IHeartMedia to Launch On-Demand Music Service.” The Wall Street Journal. Dow Jones & Company, 23 Sept. 2016. Web. 15 Oct. 2016.

[6] Lovelace, Berkeley, Jr. “Pandora CEO on On-demand Services: We’re in the Perfect Position.” CNBC. CNBC, 14 Sept. 2016. Web. 29 Nov. 2016.

[7] McAlone, Nathan. “The Biggest Radio Powerhouse in the US Just Took Aim at Apple and Spotify with a New Service.” Business Insider. Business Insider, 23 Sept. 2016. Web. 29 Nov. 2016.

[8] Ross, Kevin. “IHeartMedia, Inc. Reports Financial Results for the Third Quarter Ended September 30, 2016.” Radio Facts. N.p., 10 Nov. 2016. Web. 29 Nov. 2016.

[9] Stine, Randy. “IHeartMedia Shows Revenue Growth in Q3.” Radio World. Radio World, 10 Nov. 2016. Web. 29 Nov. 2016.

[10] Telemundo. “IHeartRadio Fiesta Latina 2016.” Telemundo. N.p., n.d. Web. 29 Nov. 2016.

[11] Vitucci, Danielle. “IHeartMedia Rings in the Holiday Season with the Return of Its Iconic 2016 National “iHeartRadio Jingle Ball Tour Presented by Capital One”.” IHeartMedia Rings in the Holiday Season with the Return of Its Iconic 2016 National “iHeartRadio Jingle Ball Tour Presented by Capital One” | Business Wire. BusinessWire, 11 Oct. 2016. Web. 29 Nov. 2016.

[12] Bob Pittman. iHeartMedia, Inc. Retrieved: November 28th 2016

[13] Wendy Goldberg. iHeartMedia, Inc. Retrieved: November 28th 2016

[14] Richard J. Dressler. iHeartMedia, Inc. Retrieved: November 28th 2016

[15] William Eccleshare. iHeartMedia, Inc. Retrieved: November 28th 2016

[16] iHeartMedia. RadioFacts. Retrieved: November 28th 2016

[17] iHeartMedia. Yahoo News. Retrieved: November 28th 2016

[18] iHeartMedia. VectorNetworks. Retrieved: November 28th 2016

[19] iHeartMedia. Hollywood.com. Retrieved: November 28th 2016

[20] iHeartMedia. Business Wire. Retrieved: November 28th 2016

[21] iHeartMedia. Aaarena.com. Retrieved: November 28th 2016

[22] iHeartMedia. iHeart.com. Retrieved: November 28th 2016

[23] One Direction Last First Kiss IHeartRadio Album Release Party. Perf. One Direction. Youtube, 3 Jan. 2014. Web. 20 Nov. 2016.

Disney

Link

Emma Lipstone and Susy Solino

[1] The Walt Disney Company Logo

The Walt Disney Company

500 South Buena Vista St.
Burbank, CA 91521

Website: thewaltdisneycompany.com
Phone Number: (818) 560 – 1000

Company

The Walt Disney Company was founded on October 16, 1923 by Walter Elias Disney and is headquartered in Burbank, CA. The Company is one of the biggest media and entertainment corporations in the world. [2]. Walt Disney Studios is home to the four major film studios: Walt Disney Animation Studios, Pixar Animation Studios, Marvel Studios, and Lucasfilm Ltd. The Walt Disney Company also owns and operates Walt Disney Studios Motion Pictures, Disney Music Group, Disney Theatrical Group, DisneyToon Studios, Touchstone Pictures, and DisneyNature. [3].

Disney’s animation studio has produced around fifty-five animated feature films, with the fifty-sixth being Moana that was just recently released. Pixar has produced seventeen films; the most recent being Finding Dory. In 2009, Disney purchased Marvel Studios and has since produced multiple movies based off of Marvel comic book characters including: The Avengers, X-Men, Spider-Man, and Guardians of the Galaxy. Most recently in 2012, Disney acquired Lucasfilm Ltd. which is the studio best known for creating the Star Wars and Indiana Jones franchises.

In addition to popular film franchises, Walt Disney Company owns and operates many television channels that produce popular television series’. The biggest subsidiary under Disney Media Networks is ABC, which produces hit network shows such as Scandal and How to Get Away with Murder. [5]. Disney also owns ESPN and operates A&E Networks in a joint venture with Hearst Corporation, along with a portion of Hulu.

[9] Some of The Walt Disney Company Conglomerates

Financials

The Walt Disney Company (NYSE: DIS) stock has been declining in the past few quarters.

According to the earnings report released on November 10, 2016, operating income at Cable Networks decreased $207 million to $1.4 billion for the quarter due to decreases at ESPN and the Disney Channels. [6].

ESPN has been losing subscribers to online streaming, such as Netflix or over-the-top streaming services. Also, social media has provided access to a lot of breaking news and sports live broadcasting, luring viewers away from cable television. One of the biggest issues facing ESPN and The Walt Disney Company is that the sports cable network has already paid huge rights fees for the next 5 years, yet subscribers are only paying $8 a month to cover the games, which will not exist in a few years. The increase in programming and production costs were due to The Olympics programming internationally, the World Cup of Hockey rights, and higher contractual rates for college sports. [7].

However, the growth at Freeform, which is the old ABC Family, has been very successful this quarter due to lower programming and production costs, as well as a decrease in marketing expenses. These were driven by fewer hours of original scripted programming in the current quarter.

[33] Disney stock prices for last 2 years

Key Executives

[8] Robert A. Iger: Chairman and Chief Executive Officer

[8] Alan N. Braverman: Senior Executive Vice President

[8] Christine M. McCarthy: Senior Executive Vice President and Chief Financial Officer

[8] Zenia Mucha: Executive Vice President and Chief Communications Officer

[8] Jayne Parker: Executive Vice President and Chief Human Resources Officer

Box Office Reports

[12] Movie poster for “Captain America: Civil War” (2016)

2016 was announced as The Walt Disney Company’s most successful International Box Office record to date, reporting over $3.56 Billion through October 16th in just international sales, surpassing their 2015 general record of $3.56 Billion. [10]. This was due to a powerhouse series of releases throughout 2016, beginning with the summer blockbuster Captain America: Civil War which brought in 1.15 Billion worldwide viewers, $745 million Internationally and was named the No. 1 film of the year internationally and globally. [11].

[14] Movie poster for “Zootopia” (2016)

The animated release of Zootopia also helped spike Disney’s international numbers as it was named the biggest animated film to ever be released in China and brought in $682.3 million internationally. Elsewhere in the studio, 2016’s surprise remake of The Jungle Book also experienced a successful release, bringing in $602.3 million internationally as well as the title of “Top Western Film of all Time” in India and the No. 3 film of the year overseas. [13]. Furthermore, while being in the box office for nearly 16 weeks, Finding Dory managed to break records and pass the billion dollar global box office line by bringing in $484.8 million domestically and $519.9 million internationally, making it Pixar’s second billion dollar release and earning a rank as the 5th biggest animated film of all time, globally. [15].

As though breaking international box office records was not enough, Disney also managed to set new industry records for reaching $2 billion domestic (July 16th) and $5 billion global (July 10). As well as earned three new spots in the Hall of Fame for domestic box offices with Finding Dory, Captain America: Civil War, and Zootopia. All of this success comes with still two-and-a-half months and three major releases remaining in their calendar year. [16].

Dory, the star of “Finding Dory” (2016), now the fifth highest grossing animated film of all time. [17]

Recent and Future Releases

[18] Movie poster for Marvel’s “Doctor Strange” (2016)

Marvel Studio’s Doctor Strange represents another large victory for The Walt Disney Company’s Marvel unit, even on the heels of the overwhelming success of Captain America: Civil War.

Doctor Strange was projected to collect anywhere from $65 million to $75 million in ticket sales from the United States and Canada through opening weekend, positively surprising analysts and bringing in $85 million and the #1 rank instead. Since its release, Doctor Strange has made over $200 million domestically and over $400 million internationally, crossing $600 million worldwide in under 4 weeks. [19].

Moana, who was scheduled for a holiday release, has surpassed the high expectations set by Doctor Strange, bringing in over $81 million domestically throughout its opening weekend. [20].

[22] Movie poster for “Moana” (2016)

Further down the line, fans eagerly await the release of Star Wars: Rogue One. As well as Disney’s live action remake of Beauty and the Beast and the recently announced remakes of Mulan and Snow White. All of which are predicted to be box-office heavy hitters. [21].

[23].

Diversity

videothumbnail_elanaofavalor_teaser_02_ce1b790c

[24] Elena of Avalor, Disney’s first Latina princess.

In light of a growing diverse culture and need for representation in the film industry, Disney had begun fighting back against claims of their white-washing tactics and ill representation in their films by allowing more diverse roles in their characters and plots.

[25] Moana, Disney’s first Polynesian heroine.

This year’s recently released Moana revolves around Tahitian and Pacific Islander culture and will be the first Disney film every to be translated into the Tahitian language. [26]. Furthermore, Disney introduced the world to their first Latina princess earlier in the year with the release of their television series Elena of Avalor, a Disney Channel show revolving around latin customs and characters [27] further proving the Company’s desire to focus on promoting more representation of diversity through their media. In addition to their animated strikes towards representation, Disney has announced their search for Chinese actors to star in the upcoming Mulan remake. [28].

jungle-book-to-mulan-all-the-live-action-disney-movies-in-the-works-right-now

[29] Movie poster for Disney’s upcoming live action remake of “Mulan,” featuring a Chinese actress.

Future Integration

In addition to divulging into a more diverse space, Disney has also shown interested in expanding into a more digital and web space with their media. In September 2016, Disney began showing signs of interest for acquiring the social media giant, Twitter Inc., going as far as to work with advisors to put together a potential bid for the company. [30]. While eventually deciding to go against the deal for image reasons, as the social network is known for its reputation of bullying and harassment, the interest in social media gives clear insight that Disney has begun exploring new digital horizons. [31]. Many analysts have taken note of Disney’s interest to expand digitally and predict that the streaming giant, Netflix, might be next on the company’s list of potential assets. [32].

Bibliography

Walt Disney Company Logo. Retrieved November 1, 2016. http://logok.org/disney-logo/
Walt Disney History. Retrieved November 1, 2016. https://d23.com/disney-history
The Walt Disney Company. Retrieved November 1, 2016 https://thewaltdisneycompany.com/about/#our-businesses
Box Office Reports. Retrieved October 28, 2016. boxofficemojo.com
Johnson, Madeleine. June 16, 2016. Your Complete Guide to All the Things Owned by Disney. Retrieved November 21, 2016. https://www.zacks.com/stock/news/220682/your-complete-guide-to-all-the-things-owned-by-disney
November 10, 2016. The Walt Disney Company Reports Fourth Quarter and Full Year Earnings for Fiscal 2016. Retrieved November 11, 2016. https://ditm-twdc-us.storage.googleapis.com/q4-fy16-earnings.pdf
October 31, 2016. Disney: ESPN Still has a Big Problem. Retrieved November 2, 2016. http://seekingalpha.com/article/4017145-disney-espn-still-big-problem
The Walt Disney Company About. Retrieved November 1, 2016. https://thewaltdisneycompany.com/about/
The Walt Disney Company. Retrieved November 2, 2016. https://storify.com/LA346TeamDisney/the-walt-disney-company
McNary, Dave. October 17, 2016. ‘Captain America: Civil War,’ ‘Finding Dory’ Push Disney to International Box Office Record. Retrieved October 18, 2016. https://variety.com/2016/film/news/captain-america-civil-war-finding-dory-disney-box-office-record-1201891155/
Tartaglione, Nancy. October 17, 2016. Finding Money: Disney Tops Full-Year Intl Box Office Record with $3.56B+ (So Far). Retrieved October 18, 2016. http://deadline.com/2016/10/walt-disney-studios-all-time-international-box-office-record-captain-america-zootopia-1201837655/
Freeman, Molly. November 25, 2016. Captain America: Civil War Character Posters- Superhero Fight Time. Retrieved November 27, 2016. http://screenrant.com/captain-america-3-civil-war-posters-iron-man/
Laughing Place Disney Newsdesk. October 17, 2016. 2016 International Box Office is Disney’s Best Year Ever. Retrieved October 19, 2016. http://www.laughingplace.com/w/news/2016/10/17/2016-international-box-office-disneys-best-year-ever/
Disney Zootopia. Retrieved November 10, 2016. http://movies.disney.com/zootopia
October 10, 2016. “Finding Dory” Keeps Swimming to $1 Billion. Retrieved October 20, 2016. https://thewaltdisneycompany.com/finding-dory-keeps-swimming-1-billion/
Derisz, Ricky. October 18, 2016. ‘Captain America: Civil War’ Helps Disney Break its Own $3 Billion International Box Office Record…With More to Come. Retrieved October 19, 2016. http://moviepilot.com/p/captain-america-civil-war-disney-box-office-record/4127909
Disney Movies: Finding Dory. Retrieved November 21, 2016. http://movies.disney.co.uk/finding-dory
CS. April 4, 2016. Doctor Strange Filming Wraps as Mads Mikkelsen’s Villain is Revealed. Retrieved November 15, 2016. http://www.comingsoon.net/movies/news/673101-doctor-strange-filming-wraps-as-mads-mikkelsens-villain-is-revealed#/slide/1
Faughnder, Ryan. November 1, 2016. ‘Doctor Strange’ is Expected to Draw a Massive Audience for Disney’s Marvel Studios. Retrieved November 2, 2016. http://www.latimes.com/entertainment/envelope/cotown/la-fi-ct-movie-projector-20161031-story.html
The Associated Press. November 27, 2016. ‘Moana’ Wins Box Office with Huge Opening Weekend. Retrieved November 27, 2016. http://www.nydailynews.com/entertainment/movies/moana-wins-box-office-huge-opening-weekend-article-1.2888989
Acuna, Kirsten and Phillips, Ian. October 26, 2016. Disney Announced all its Movies Coming in the Next 4 Years – Here’s What you have to Look Forward to. Retrieved October 28, 2016. http://www.thisisinsider.com/disney-movie-schedule-2016-to-2019-2016-10/#strange-cumberbatch-will-play-a-surgeon-who-injures-his-hands-severely-in-accident-2
Disney Moana. Retrieved November 25, 2016. http://movies.disney.com/moana
May 23, 2016. Beauty and the Beast Official US Teaser Trailer. Retrieved November 15, 2016. https://www.youtube.com/watch?v=c38r-SAnTWM
Ranere, Dianna. August 12, 2016. Disney’s Elena of Avalor Renewed for 2nd Season #ElenaOfAvalor. Retrieved October 28, 2016. http://www.fsm-media.com/disneys-elena-avalor-renewed/
Lodi, Marie. July 1, 2016. Why People are Upset About this Character’s Weight in Disney’s New Movie “Moana”. Retrieved November 10, 2016. http://hellogiggles.com/moana-maui-people-angry-obese-stereotype/
October 25, 2016. Walt Disney Animation Studios’ “Moana” to be First Film Ever Translated into the Tahitian Language. Retrieved October 26, 2016. https://thewaltdisneycompany.com/moana-first-film-translated-tahitian-language/
Hughes, Ruth. October 16, 2016. Teen Spirit: Meet the new Plucky Disney Princess Elena of Avalor. Retrieved October 17, 2016. http://www.express.co.uk/life-style/life/720813/Disney-Channel-Elena-Of-Avalor-princess
Biek, Katherine. October 5, 2016. Disney Seeks Chinese Actress for ‘Mulan’ Remake. Retrieved November 20, 2016. http://www.whio.com/news/national/disney-seeks-chinese-actress-for-mulan-remake/fG3AO2Pqefhu4NVlI8ycfI/
Edwards, Ally. October 16, 2016. Jungle Book to Mulan: All the Live Action Disney Movies in The Works Right Now. Retrieved October 17, 2016. http://moviepilot.com/posts/3590427
Roettgers, Janko. September 26, 2016. Disney is Looking into Buying Twitter (Report). Retrieved October 20, 2016. http://variety.com/2016/digital/news/disney-twitter-acquisition-possible-1201870392/
New Statesman. October 18, 2016. Disney Didn’t Buy Twitter- Partly because it Can’t Master the Bare Necessities. Retrieved October 19, 2016. http://www.newstatesman.com/science-tech/social-media/2016/10/disney-didn-t-buy-twitter-partly-because-it-cant-master-bare
Williams, Trey. October 5, 2016. Netflix Said to be in Disney’s Crosshairs, and Analysts see a Streaming Rationale. Retrieved October 21, 2016. http://www.marketwatch.com/story/disney-remains-center-of-merger-talk-this-time-its-netflix-2016-10-03
The Walt Disney Company (DIS). Retrieved November 20, 2016. https://finance.yahoo.com/quote/DIS?p=DIS

Comcast/NBCU

Posted on October 16, 2016 by shmarath

by Alex E. Álvarez, Olivia Maguire and Shruti Marathe

Comcast Corporation [1]

Comcast Corporation
Comcast Center
1701 JFK Boulevard
Philadelphia, PA 19103

Company Overview

COMCAST is a global media and technology company composed of four businesses, with COMCAST Cable and NBC Universal being its two primary entities. The cable division is one of the largest in the United States providing video, internet and phone services to individuals and businesses under the XFINITY brand. NBC Universal manages news, entertainment in all its forms and sports, including broadcast and cable networks, television production companies, television station groups, filmed entertainment and Parks and Resorts. Its other two businesses are Spectacor and Ventures focused more on business and management. [2]

Key Executive: Brian L. Roberts, Chairman and CEO. [3]

New Venture Abroad

Euronews Logo [4]

Michael Peters, CEO of Euronews [5]

COMCAST is venturing in a new market as it is in talks with European broadcaster, Euronews, to buy a stake in the company. The stake is estimated to be between 15 to 30% of the company, and they aim to find a deal by the end of this year. The branch NBC News is looking to strengthen Euronews’ offerings, but keeping it as a collaborative partnership. This network airs in more than 150 countries and more than ten languages, and it will allow a new visibility for NBC Universal.

Egyptian billionaire Naguib Sawiris pauses during a Bloomberg Television interview in London, U.K., on Thursday, May 24, 2012. Sawiris said he'd be willing to sell his Telekom Austria AG stake to Carlos Slim's America Movil SAB if the Austrian government is uncooperative. Photographer: Simon Dawson/Bloomberg via Getty Images

Naguib Sawiris | Photographer: Simon Dawson/Bloomberg via Getty Images [6]

Naguib Sawiris, an Egyptian billionaire, holds a 53% stake, and will remain the controlling shareholder.

Furthermore, Euronews has made moves this past year to expand worldwide launching Africanews, a sister channel, in January, a subsidiary in Singapore in October, and some distribution pacts in Latin American in May. CEO, Michael Peters, renovated the identity of Euronews with a new mission statement focused more on a “global experience of news, knowledge and culture”. [7] [8]

The Secret Life of Pets

600x875_pts_wild_duke6_rgb_0328_2-1-600x875

The Secret Life of Pets Movie Poster [9]

At the box office, COMCAST’s biggest success was The Secret Life of Pets, which reached third place in movies with highest total gross of all time from Universal Pictures. In 2016, the movie that reached the highest position, besides The Secret Life of Pets, was Jason Bourne, which reached the 31^st position of all-time.

Screenshot from Box Office Mojo [10]

According to Box Office Mojo, the film had a production budget of $75 million, the film made a total gross of $104 million in its first weekend, and it ranked first place for its first two weekends [10].

It was released in more than 4,000 theaters, which shows that it was expected to be a hit. The movie has a total domestic gross of more than $350 million, and more than $500 million in the foreign market adding up to an amount very close to the billion mark. After 21 weekends from its release, The Secret Life of Pets is still in more than a hundred theaters, and making an average of $1,000 per screen. Deadline reported that due to the success in the box office, Universal and Illumination, the production company, set the release date for a sequel in July 13, 2018. [11] Merchandising has also contributed to profits. Comcast has sold Secret Life of Pets themed toys in stores and online.

Harry Potter

Comcast’s deals with the Harry Potter franchise spell success for the conglomerate going forward. Comcast subsidiary Universal Studios holds theme park rights to Harry Potter, and maintains high profit from Harry Potter World in Florida. The newly released motion picture, Fantastic Beasts and Where to Find Them, add to the franchise.

Attendance at the parks is expected to increase with new excitement about Harry Potter being generated. Comcast also has the potential to generate greater income in China with the piloting of a Universal Studios resort in Beijing. ^[12]

Conceptual image of Universal Studios Beijing resort

Comcast’s screening rights to the Harry Potter films is also beneficial. NBC has acquired the rights to screen all eight Harry Potter films and the coming movies of the Fantastic Beasts series. ^[13]Streaming access includes the cable networks like USA and Syfy. Such rights will benefit NBC content as a whole as it brings in viewers.

Movie poster for Warner Brother’s Fantastic Beasts and Where to Find Them. NBC has streaming rights beginning July 2018.

Trouble with the FCC

Comcast received some bad press last month when forced to pay a $2.3 million civil penalty to the Federal Communications Commission (FCC). ^[14] The dollar amount marks the largest FCC fine ever held to a cable operator. Comcast followed through as they were persecuted for charging customers for services and equipment they didn’t order. Over 1,000 customers complained for the charges on the premium channels, DVRs, etc. that they didn’t order. Some customers reported expressly telling Comcast they didn’t want certain services and were still charged. Travis LeBlanc, the chief of the FCC Enforcement Bureau, released a statement saying “”It is basic that a cable bill should include charges only for services and equipment ordered by the customer — nothing more and nothing less.” ^[15]Comcast worked to remedy the problem.

Comcast Buys Out Ed Snider

The Comcast Corporation bought the remaining 24% stake in the Comcast Spectacor company, that was owned by Philadelphia Flyers creator, Ed Snider. Ed Snider and his family owned the last 24% of Comcast Spectacor, the overseeing company of the Philadelphia Flyers and the arena in which they play, The Wells Fargo Center, among a few other businesses. This purchase will grant the Comcast Corporation 100% ownership of Comcast Spectacor. The deal was put into motion after Snider died from a terminal illness earlier this year.

Ed Snider, creator of the Philadelphia Flyers [16]

The purchase includes becoming full time owners of the Philadelphia Flyers hockey team. The Flyers are worth $660 million dollars, according to Forbes, although exact purchasing numbers of the entire buy are not available at this time. Ed Snider was the CEO of Spectacor, which fused in 1996 with Comcast to form Comcast Spectacor; however, at the end of this deal no parts of Ed Snider’s family will have any ownership of any of the Spectacor businesses. [16]

[1]

Logo of the Philadelphia Flyers [18]

Netflix to Xfinity X1

Soon, Netflix will be available on Comcast’s Xfinity X1 devices. This move is said to raise the total number of subscriptions to Netflix in the United States, anywhere from 4 to 5 million more subscribers with the new partnership, according to Cowen & Co. Customers of Comcast’s Xfinity X1 can sign up for Netflix directly through the service with Comcast then directly billing the customers on their Comcast bill for the normal $9.99 Netflix rate. Comcast says that them directly billing for Netflix is as an added benefit to its customers. Details have not been made public but it is circulating that Netflix will only pay a one-time “bounty fee” to Comcast for any new subscribers it gains through the deal. Netflix’s Co-founder says the merge will reduce the annoyance of switching between different cables and plugins and that consumers can access their favorite content without switching from one system to another. [17]

A man scrolls through a selection of viewing choices on the Netflix Inc. application on a tablet device in this arranged photograph in London, U.K., on Tuesday, Jan. 5, 2016. Netflix Inc., which delivered the best return of any stock in the S&P 500 last year, has ambitious plans for this year so it can produce something new next year: serious profits. Photographer: Chris Ratcliffe/Bloomberg via Getty Images

Man carefully selecting which content he wants to view [19]

Sources

[1] Comcast Logo. Image. Corporate Comcast: News + Info. Logo Media Library. Retrieved November 28, 2016. http://corporate.comcast.com/news-information/logo-media-library

[2] Comcast Corporation. Company Overview. Retrieved November 25, 2016. http://corporate.comcast.com/news-information/company-overview

[3] Brian L. Roberts. Image. Corporate Comcast: News + Info. Executive Biographies. Retrieved November 28, 2016. http://corporate.comcast.com/news-information/leadership-overview/brian-l-roberts

[4] Euronews. Image. Retrieved November 28, 2016. http://www.euronews.com/

[5] Michael Peters. Image. Lyon Mag. Retrieved November 25, 2016. https://www.lyonmag.com/article/76248/michal-peters-8220-euronews-doit-se-rinventer-avec-le-numrique-8221

[6] Naguib Sawiris. Image. October 16, 2016. “Naguib Sawiris, Wind Mobile Founder: I Am ‘Finished with Canada'”. Huffington Post. Retrieved November 28, 2016. http://www.huffingtonpost.ca/2013/10/16/naguib-sawiris-finished-with-canada_n_4109239.html

[7] Reuters. November 11, 2016. “NBC Universal Is In Talks for a Stake In This European Network”. Fortune. Retrieved November 25, 2016. http://new.fortune.com/2016/11/10/comcast-nbc-news-euronews/

[8] Barraclough, Leo. November 11, 2016. “NBC News, Euronews in Talks for Strategic Partnership”. Variety. Retrieved November 25, 2016. http://variety.com/2016/tv/global/nbc-news-euronews-talks-strategic-partnership-1201915855/

[9] The Secret Life of Pets. Retrieved November 28, 2016. http://www.thesecretlifeofpets.com/

[10] Box Office Mojo: The Secret Life of Pets. Retrieved November 25, 2016. http://www.boxofficemojo.com/movies/?page=main&id=illumination2015.htm

[11] Tartaglioni, Nancy. August 2, 2016. “‘The Secret Life of Pets’ Wags Past $400M Global; Sets Sequel Release Date”. Deadline. Retrieved November 25, 2016. http://deadline.com/2016/08/secret-life-of-pets-crosses-400-million-global-box-office-sequel-release-date-1201797380/

[12] Press, Associated. “Universal Signs Deal for Beijing Theme Park.” The Hollywood Reporter. Web. Retrieved Nov. 29, 2016. http://www.hollywoodreporter.com/news/universal-beijing-theme-park-deal-823339

[13] Smith, Gerry. “NBC Buys Rights to ‘Harry Potter,’ ‘Fantastic Beasts’ Franchises.” Bloomberg.com. Bloomberg. Retrieved Nov. 29, 2016. https://www.bloomberg.com/news/articles/2016-08-08/nbc-buys-rights-to-harry-potter-fantastic-beasts-franchises

[14] Gonzales, Richard. “Comcast Fined $2.3 Million For Improperly Charging Customers.” NPR. NPR, Retrieved Nov. 29, 2016. http://www.npr.org/sections/thetwo-way/2016/10/11/497588744/comcast-fined-2-3-million-for-improperly-charging-customers

[15] Wattles, Jackie. “Comcast Hit with FCC’s Biggest Cable Fine Ever.” CNNMoney. Cable News Network, Retrieved Nov. 29, 2016. http://money.cnn.com/2016/10/11/news/companies/comcast-fine-fcc/

[16] Carchidi, Sam. Sept. 23rd, 2016. “Comcast buying remaining Fyers’ shares from Snider’s Estate.” Philly.com. Retrieved Nov. 29, 2016 http://www.philly.com/philly/sports/flyers/20160923_Comcast_buying_remaining_Flyers_shares_from_Snider_s_estate.html

[17] Spangler, Tom. Nov. 4th, 2016. “Netflix Launching on Comcast X1 Next Week, Could Yield Up to 5 Million New Subs.” Retrieved Nov. 28, 2016 http://variety.com/2016/digital/news/netflix-comcast-x1-launch-1201909773/

[18] Philadelphia Flyers, Image, nhl.com, http://flyers.ice.nhl.com/club/page.htm?id=80263

[19] Shen, Lucinda. Aug. 8, 2016. Image. “The Majority of Netflix Subscribers will be International Within 2 Years” Retrieved Nov. 29, 2016 http://fortune.com/2016/08/23/the-majority-of-netflix-subscribers-will-be-international-within-2-years/

CBS Corp.

Posted on October 16, 2016 by bdsanche

Jordana Lanz, Adam Schoenberg, Bryan Sanchez

CBS Corporation Logo[1]

History

CBS Corporation originated in 1927 as the United Independent Broadcasters. From 1928 to 1997 the company transitioned from its original name to Columbia Broadcasting System, Inc. and then to CBS Inc. It was not until the mass media company was purchased for $5.4 billion by Westinghouse Electric Corporation that it evolved into CBS Corp. in 1997[2]. Viacom Inc. acquired CBS for $45 billion in 1999. Six years later, the companies split but both remained controlled by Sumner Redstone through National Amusements. Today, CBS Corp. remains as a major media conglomerate, operating within the entertainment industry as a leader in cable, publishing, radio, film, and interactive media.[3]

Finances

In Q3 2016, CBS Corp. reported its highest quarterly diluted EPS in the history of the company. Third quarter revenue rose 4% to $3.4 billion, led by a 32% growth in retransmission fees, revenues from CBS Television, and growth of their digital platforms. This continued growth in revenue has allowed for a 6% increase in operating income, now standing at $798 million, with some offset from increased spending in programming. National ad revenue fell 3%, but this was due to preemptions from the Democratic and Republican conventions, the first Presidential Debate, and competition from the Olympics.[4]

Revenues from entertainment rose by 1% to $1.95 billion, while revenues from cable networks were up by 14% to $598 million. Apart from growing retransmission and licensing fees revenue, CBS All-Access and Showtime’s over the top service, now draw in 2 million subscribers collectively. CBS’ decision to stream Star Trek: Discovery, as well as 3 yet unnamed shows, exclusively on All-Access[5], will help them reach their goal of 4 million subscribers by 2020.[6]

On 4 July, 2016, CBS announced that it would be separating its radio business. An IPO will be held in early 2017, with full separation by 2018. After CBS Radio’s 2015 restructuring, total costs amounted to $36.8 million, with $18.9 million in severance payments and $4.4 million in cancelled contracts; in preparation of the departure, CBS Radio has borrowed $1.46 billion through a $1.09 billion senior secured loan due 2023[4].

Live Content

NFL Logo[7]

Logos of Republican and Democratic Parties[8]

2016-08-01-1470024501-2875993-rioolympics

Rio 2016 Logo[9]

CBS’s primary television network is one of the most watched in the country, one filled with robust live content. These marquee broadcasts of both major parties’ conventions, the first Presidential Debate, and broadcasts of the 2016 Olympics attract massive audiences despite advertising revenue losses caused by 10-hours of primetime preemptions [4]. The company had strong ratings in each of the presidential debates, highlighted by the 10.4-rating/15% share they achieved during the second debate[10]. The company has also benefitted from broadcasting NFL football from the AFC conference as well as five Thursday Night Football games per their recent agreement with NBC and the NFL [11].

Original Content

Promotional image for Bull, starring Michael Weatherly(pictured above)[12]

Title Card for Season 5 of The Big Bang Theory[13]

The network is also successful due to its strong history of original content, both new and old. The Big Bang Theory has consistently ranked as a top scripted series this fall, posting strong numbers as a live program (3.1 rating) and syndicated series (5.4 rating)[14]. The show was previously ranked as the most viewed on live television and consistently draws over 14 million live viewers[15]. Currently there are talks to create a spin-off titled Sheldon, produced by the same creators of The Big Bang Theory [16]. CBS’s Bull is TV’s most watched new series based on live and delayed viewing. The drama drew an average of 17.6 million viewers over the shows first six episodes, and is bolstered by strategic scheduling of the program behind the ever-popular NCIS[17]. Kevin Can Wait is TV’s #1 new comedy, drawing an audience average of 11.8 million live and online through week six, and most recently scoring within the top five for new series in total viewers and viewership within the 18-49 year old demographic[17]. With full ownership of all these shows, both old and new, the organization has positioned itself to monetize additional content across all CBS platforms for years to come, as they did so successfully this past year on their over the top services.[4]

ufkevinjames_pres_cleared_2weeks_c430_hr01_prores422_p_878941_640x360

Promotional Image for Kevin Can Wait, staring Kevin James(pictured above)[18]

CBS All Access

CBS All Access Logo[19]

In the fall of 2014, CBS Corp. launched “CBS All Access,” a digital subscription package allowing users access to thousands of episodes and full seasons of past and current CBS programming, as well as live stream content, for $5.99 a month. This offer includes current primetime programs made available immediately after first air. This past August 2016, CBS Corp. announced an addition to that existing offer, providing viewers a $9.99-per-month option with no advertisements [20]. Although the live-stream content will continue airing commercials during the broadcast, the ability to stream real-time on any device is a continuation of the company’s priority to provide customers with mass content on wherever platform preferred [21].

While other companies are similarly offering packaging deals, CBS Corp. is more hesitant than other major conglomerates to combine their programs with those offers. AT&T’s DirecTV Now—an over-the-top service offering over 100 channels for $35 per month—will fail to include features of CBS content by launch (November 30th, 2016) due to unsettled financial negotiations. If an agreement remains unachieved, DirecTV Now will become a direct competitor for CBS in providing TV content. And so the potential success of the AT&T owned service without CBS programming could directly threaten CBS’s influence in the industry. However, a DirecTV Now failure to succeed would increase CBS corp.’s leverage[22].

Potential CBS-Viacom Merger

Although CBS Corp. and Viacom (which both remain controlled by the Redstone family through National Amusements) split in 2006, the two separate companies have been collaborating with financial advisors to review a possible re-merger [23]. While the deal would force CBS to inherit Viacom’s debt caused by a decrease in affiliate revenue and yearly net income, CBS Corp. CEO Leslie Moonves recognizes the benefits of securing Viacom owned Paramount Pictures. The potential merger would not only grant CBS possession of MTV, Nickelodeon, and Comedy Central, but also the rights to a studio to create original content to be distributed [24]. If the two companies agree to merge, the partnership will allow heavy leverage for negotiating with cable distributors[25].

CBS Radio Split

CBS Radio Logo[26]

In the spring of 2016, CBS Corp. released a memo regarding the pursuit of CBS Radio transitioning to a standalone company. Shortly after, CBS filed its IPO with the SEC. This past fall, CBS announced a detailed financing plan for the radio business to work as an independent, publicly traded company[4]. Under the name “CBS Radio Inc.,” the division “will eliminate intellectual property licensing agreements with CBS so that it can keep using the “CBS” mark in call letters.” The split will provide CBS Radio an industry advantage because of the current value of the profitable local stations leading in news and sports radio, while additionally offering professional growth for the radio employees. However, the separation will allow CBS Corp. the freedom to utilize operating segments in competition with CBS Radio, which will increase appeal to investors. This is a risk for CBS Radio, which generates much smaller financial resources than their parent company.[28]

Works Cited

CBS Corporation Logo. Digital image. Https://www.nyse.com/publicdocs/nyse/events/images/CBS_web_1920.png. N.p., n.d. Web. 29 Nov. 2016.
“Timeline: The History of CBS.” NoCable.org. N.p., n.d. Web. 29 Nov. 2016
“CBS CORPORATION ANNOUNCES PROPOSED $1.46 BILLION DEBT FINANCING BY CBS RADIO INC. IN CONNECTION WITH THE SEPARATION OF THE CBS RADIO BUSINESS.” CBS Corporation. N.p., n.d. Web. 29 Nov. 2016.
Corporation, CBS. “CBS Corporation Reports Third Quarter 2016 Results.” PR Newswire: Press Release Distribution, Targeting, Monitoring and Marketing. PR Newswire Association LLC, 3 Nov. 2016. Web. 29 Nov. 2016.
“Where Star Trek: Discovery Will Air – CINEMABLEND.” CINEMABLEND. N.p., 2016. Web. 30 Nov. 2016.
Porch, Scott. “CBS Digital Chief Says CBS All Access Targeting to Hit 4 Million Subscribers by 2020.” Decider | Where To Stream Movies &Amp; Shows on Netflix, Hulu, Amazon Instant, HBO Go, 16 Nov. 2016, decider.com/2016/11/16/cbs-all-access-targeting-4-million-subscribers-by-2020/.
NFL Logo. Digital image. Http://i.nflcdn.com/static/content/public/static/img/share/shield.jpg. N.p., n.d. Web. 29 Nov. 2016.
Republican and Democratic Party Symbols. Digital image. Https://thebrandbuilder.files.wordpress.com/2008/09/logo-politics1.jpg. N.p., n.d. Web. 29 Nov. 2016.
2015 Rio Olympics Logo. Digital image. Http://cdn.mos.cms.futurecdn.net/8a1813ebb675372564938ce7419479a3.jpg. N.p., n.d. Web. 29 Nov. 2016..
Littleton, Cynthia, and Oriana Schwindt. “Trump-Clinton Second Debate Ratings Fall 21% With 66.5 Million Viewers.” Variety. Variety Media, 10 Oct. 2016. Web. 29 Nov. 2016.
Deitsch, Richard. “NBC, CBS to Split Two-year, $450 Mil. Thursday Night Football Package.” Si.com. N.p., 1 Feb. 2016. Web. 28 Nov. 2016.
Bull Title Card. Digital image. Http://www.2016auditions.com/wp-content/uploads/2016/11/bull-poster.jpg. N.p., n.d. Web. 29 Nov. 2016
The Big Bang Theory Title Card. Digital image. Http://basementrejects.com/wp-content/uploads/2012/09/big-bang-theory-season-5-title-card.jpg. N.p., n.d. Web. 30 Nov. 2016.
Porter, Rick. “‘Big Bang Theory,’ ‘Empire’ and Football Lead Week 9: Broadcast Top 25 and Network Rankings.” TV By The Numbers by Zap2it.com. Tribune Media Company, 22 Nov. 2016. Web. 29 Nov. 2016. / Porter, Rick. “Syndicated TV Ratings: ‘Ellen’ Ties ‘Live with Kelly’ in the Week of Nov. 7-13.” TV By The Numbers by Zap2it.com. Tribune Media Company, 23 Nov. 2016. Web. 29 Nov. 2016.
Levin, Gary. “New TV Season Finds Hits (‘Bull,’ ‘Survivor’), but More Misses (‘Exorcist,’ Anyone?).” USA Today. Gannett Satellite Information Network, 26 Oct. 2016. Web. 29 Nov. 2016.
Andreeva, Nellie. “‘The Big Bang Theory’ Eyes Young Sheldon Spinoff Prequel Series On CBS.” Deadline. Penske Business Media, 07 Nov. 2016. Web. 29 Nov. 2016.
“2016-17 Season Ratings for New TV Shows (week 9) – Canceled TV Shows – TV Series Finale.” Canceled TV Shows – TV Series Finale. TV Series Finale, 22 Nov. 2016. Web. 29 Nov. 2016.
Kevin Can Wait Promo Card. Digital image. Http://thumbnails.cbsig.net/CBS_Production_Entertainment_VMS/2016/05/18/688093763801/UFKEVINJAMES_PRES_CLEARED_2WEEKS_C430_HR01_ProRes422_P_878941_640x360.jpg. CBS, n.d. Web. 29 Nov. 2016.
CBS All Access Promo Card. Digital image. Http://trekcore.com/blog/wp-content/uploads/2016/01/cbs-aa-header.jpg. N.p., n.d. Web. 29 Nov. 2016.
“CBS Launches Commercial-Free Streaming Option.” The Wall Street Journal. Dow Jones & Company, n.d. Web. 29 Nov. 2016.
“CBS ALL ACCESS” ROLLS OUT COMMERCIAL-FREE OPTION FOR SUBSCRIBERS.” CBS Corporation. N.p., n.d. Web. 29 Nov. 2016.
“AT&T’s Online Version of DirecTV Said to Launch Without CBS.” Bloomberg.com. Bloomberg, n.d. Web. 29 Nov. 2016.
“Viacom and CBS Boards Hire Advisers for Potential Merger.” The Wall Street Journal. Dow Jones & Company, n.d. Web. 29 Nov. 2016.
Lee, Edmund. “Here’s What It Would Take for CBS and Viacom to Merge.” Recode. N.p., 28 Sept. 2016. Web. 29 Nov. 2016.
Https://www.facebook.com/CNBC. “Shari Redstone Said CBS, Viacom Are Right to Explore Merger.” CNBC. CNBC, 14 Nov. 2016. Web. 29 Nov. 2016.
CBS Radio Logo. Digital image. Https://cbskfrog.files.wordpress.com/2012/05/cbs_radio_logo.png. N.p., n.d. Web. 29 Nov. 2016.
“CBS CORPORATION ANNOUNCES PROPOSED $1.46 BILLION DEBT FINANCING BY CBS RADIO INC. IN CONNECTION WITH THE SEPARATION OF THE CBS RADIO BUSINESS.” CBS Corporation. N.p., n.d. Web. 29 Nov. 2016.
“After Split, CBS Radio Will Make a Name For Itself.” Insideradio.com. N.p., 12 July 2016. Web. 29 Nov. 2016.

Sony Corporation

Posted on October 16, 2016 by crtraver

Charlotte Traver, Brendan Weaver, David Sorokanich

Sony Entertainment Logo [15]

Company

Located in New York, NY, Sony Corporation of America is the US headquarters of Sony Corporation, which is based in Tokyo, Japan. Sony is involved in multiple businesses including electronics and mobile, film and television, music, gaming, digital services, and others. Sony employs about 125, 300 people and recorded annual sales of $71.7 billion of the fiscal year ending in March 2016.

Background

Sony Electronics is a leading provider of audio/video electronics and products. Sony Mobile is also a leading company in providing video, game, audio and communications technology products. Sony Pictures Entertainment is a huge innovator in major motion picture production and produces major blockbusters regularly. Sony Music Entertainment is one of the most well-known global recorded music companies and features artists famous on both a local and international scale. Sony/ATV Music Publishing works alongside Sony Music Entertainment and is the world’s leading music publisher. Sony Interactive Entertainment LLC is known for the PlayStation, a popular gaming console owned by millions of Americans. Other businesses that may not be as well known include Sony DADC, Sony Biotechnology Inc., Micronics, Inc., and Sony Card/Sony Rewards. [7]

Sony Pictures Executives

CEO of Sony Entertainment where he oversees the Sony’s global enterprise including Sony Music Entertainment, Sony Pictures Entertainment, and Sony/ATV Music Publishing

Michael Lynton: CEO of Sony Entertainment where he oversees the Sony’s global enterprise including Sony Music Entertainment, Sony Pictures Entertainment, and Sony/ATV Music Publishing [18]

Senior Executive Vice President & Chief Financial Officer for Sony Pictures Entertainment he oversees the company’s financial affairs and development

Philip Rowley: Senior Executive Vice President & Chief Financial Officer for Sony Pictures Entertainment he oversees the company’s financial affairs and development [18]

Executive Vice President & Chief Communications Officer of Sony Pictures Entertainment responsible for the distribution and implementation of Sony Pictures Entertainment communications

Robert Lawson: Executive Vice President & Chief Communications Officer of Sony Pictures Entertainment responsible for the distribution and implementation of Sony Pictures Entertainment communications [18]

Chairman of Sony Pictures Entertainment Motion Pictures Group in which he oversees the production and distribution of all Sony films

Tom Rothman: Chairman of Sony Pictures Entertainment Motion Pictures Group in which he oversees the production and distribution of all Sony films [18]

Senior Executive Vice President & General Counsel for Sony Pictures Entertainment and is the highest ranking legal consultant for Sony and is head of its law department

Leah Weil: Senior Executive Vice President & General Counsel for Sony Pictures Entertainment and is the highest ranking legal consultant for Sony and is head of its law department [18]

Sony Entertainment Financials

Screenshot of MarketWatch Report on Sony Corp. Stocks on Nov. 29, 2016 [13]

Sony Entertainment’s 2016 Q2 Earnings, which were finalized on September 30, 2016, show a 10.8% decrease in Sales and Operating Revenue compared to 2015’s Q2. Q2 is also showing a 45.7% decrease in Operating Income, a 40.5% decrease in Income before Income Taxes, and a 4.8% decrease in Sony Entertainment net income attributed to stockholders. These are all in comparison to the success Sony Entertainment showed in Q2 of 2015. [12] Furthermore, as of November 29, 2016, Sony Entertainment stock prices are at $29.49 per share. This is much lower in comparison to the past three months in which shares were at a high of $34.17. [13]

Sony Launches China Writers Initiative

On November 1, 2016, Sony Pictures Entertainment launched a China Writers Initiative, which will allow emerging and well-known writers from China access to the studios. Writers will be able to work with Hollywood film and television executives and screenwriters to collaborate on ideas for both Hollywood and Hollywood Chinese productions. The program was developed with Sony Pictures China and is intended to be a mutually educational program for both countries involved. Sony Pictures will select four writers at a time to travel to Los Angeles and work at the Sony Pictures Studios. A finalist will then be selected and able to produce their chosen project. [6]

Sony Dives into Virtual Reality

Sony Interactive Entertainment of America has been on the forefront of virtual reality technology and has just recently made VR accessible for all. With the release of the PlayStation VR in October 2016, virtual reality is available for all gamers who wish to take gaming to a new level. Virtual reality takes players into an immersive atmosphere never experienced before, one in which players are in the game themselves and experience something entirely different from traditional gaming. The release of the PlayStation VR included 30 games, but Sony Interactive Entertainment predicts that the PlayStation VR will have 50 games by the end of the year. President Shawn Layden of Sony Interactive Entertainment commented that virtual reality brings a “new medium into the homes of PS4 fans”. Sony Interactive Entertainment hopes that virtual reality will soon enter the homes of many average Americans, as more and more interactive experiences independent of gaming are released. A variety of VR experiences such as Hulu, Allumette, Invasion! and others will soon offer their own interactive experiences. [9]

[11]

Sony’s PlayStation VR outsold other virtual reality headsets released in 2016, including the HTC Vive and Facebook’s Oculus Rift. The PlayStation VR is predicted to outsell both the HTC Vive and Oculus Rift by more than 295,000 headsets, which is largely due to price. The PlayStation VR is a simple add on to the PlayStation 4, so users find this headset to be a better choice since many already own the console. However, SuperData Research’s director of research Stephanie Llamas seems to think that without a push in marketing from Sony, they will forever remain behind their potential.

-Is 2016 The Year Virtual Reality Finally Goes Mainstream? by NPR [14]

New Chairman and CEO of Sony Music

Michael Lynton, CEO of Sony Entertainment, announced that Doug Morris will transition from operational management of Sony Music Entertainment and assume the role of Chairman in April 2017, and Rob Stringer, who was formerly Chairman and CEO of Columbia Records, will become CEO of Sony Music. Over the last six years as CEO, Morris has increased Sony Music’s market share and profitability. This has helped Sony achieve its status as the second largest music company in the world. He has also helped Sony reach its impressive status by initiating partnerships with record labels, extending a joint venture deal with Syco Entertainment, and by supporting the growth and development of Vevo, which he founded with Eric Schmidt in 2009. [4]

Rob Stringer, new CEO of Sony Music [17]

New Bob Dylan releases from Sony Music

A massive 36CD box set of Bob Dylan’s 1966 concert tours of the US, UK, Europe, and Australia was released on November 11 by Columbia Records and Legacy Recordings, the catalog division of Sony Music Entertainment. The box set, “The 1966 Live Recordings”, commemorates the 50th anniversary of the live performances. The recordings are drawn from three main sources: soundboards, CBS Records mobile recordings, and audience tapes. The majority of the recordings are previously unreleased in any format and are being made available for the first time ever. [10]

Sony Pictures Classics Acquires The Comedian

Sony Pictures Classics has announced that they’ve acquired North American rights to Taylor Hackford’s comedy, THE COMEDIAN, starring Robert De Niro and Danny DeVito. Written by Art Linson, the film centers around an aging comic whose attempts to reinvent himself fail to impress an audience that only wants to know him as a former television character he played. Warner Bros. International will be handling foreign distribution of the film, under its deal with Cinelou.[2]

Sony Pictures Acquires TEN Sports From ZEE

Sony Pictures have entered into agreements to acquire TEN Sports Network from Zee Entertainment Enterprises Limited for 385 million dollars. The acquisition will add South Asia’s leading sports network to SPN’s portfolio of channels. Ten Sports holds broadcast rights to wrestling, cricket, football, golf, motorsports, and cycling events. SPN comprises Sony Entertainment Television, one of India’s leading Hindi general entertainment television channels.[5]

Sony has acquired TEN Sports Network from Zee Entertainment Enterprises [16]

Sony and Multi-Deal International

In its commitment to broaden its global presence and its support of local language productions, Sony Pictures International Productions has signed a multi-picture development deal with filmmakers Eduardo Cisneros and Jason Shuman. The deal will allow Mexico and LA-based Cisneros and Shuman to write and produce three new films. Cisneros is one of the most successful writers in the Latin American film industry, with successes such as Instructions Not Included and Familia P. Luche. In 2014, Cisneros and Shuman began collaborating, writing the FOX feature comedy “Upgrade.” [3]

Sony Recognized as a Leader in Combating Climate Change

For the second year, Sony has been recognized as one of the highest performing companies on the CDP Japan 500 Climate Change Report 2016. CDP surveyed over 5,500 companies globally to compile their list. Their inclusion in the list recognizes the company’s effort to reduce the energy consumption of its manufactured products, curb greenhouse gas emissions at its operating sites, and accelerate use of renewable energy. Sony is one of 193 companies worldwide to be ranked as an “A” company, a distinction it has achieved for 2 consecutive years. [1]

Actions Sony has taken to combat climate change [19]

Works Cited

Sony Recognized as a Leader in Combating Climate Change in the CDP Japan 500 Climate Change Report 2016 for 2nd Consecutive Year. Retrieved November 27, 2016.
SONY PICTURES CLASSICS ACQUIRES CINELOU’S THE COMEDIAN. Retrieved November 27, 2016.
SONY PICTURES INTERNATIONAL PRODUCTIONS SIGNS MULTI-PICTURE DEVELOPMENT DEAL WITH EDUARDO CISNEROS AND JASON SHUMAN. Retrieved November 27, 2016.
ROB STRINGER PROMOTED TO CHIEF EXECUTIVE OFFICER OF SONY MUSIC ENTERTAINMENT. Retrieved November 27, 2016.
Sony Pictures To Acquire TEN Sports From ZEE. Retrieved November 27, 2016.
SONY PICTURES ENTERTAINMENT MOTION PICTURE GROUP LAUNCHES CHINA WRITERS INITIATIVE. Sony Pictures. Retrieved: November 28, 2016.
Who We Are. Sony.com. Retrieved: November 29, 2016.
Company News. Sony.com. Retrieved: November 27, 2016.
Gilbert, Ben (November 29, 2016). PlayStation is on track to crush Facebook and HTC in the first year of VR sales. Business Insider. Retrieved: November 28, 2016.
Columbia/Legacy Set to Release Bob Dylan: The 1966 Live Recordings, A Monumental Box Set featuring Every Known Recording from the Artist’s Mythic and Controversial 1966 Tour of the US, UK, Europe and Australia. Retrieved November 27, 2016.
PlayStation VR – Games Preview Summer 2016 | PSVR. Youtube.com. Retrieved November 28, 2016.
Sony Corporation 2016 Q2 Report. Retrieved November 26, 2016. https://www.sony.net/SonyInfo/IR/library/fr/16q2_sony.pdf
MarketWatch Reports on Sony Corporation Stocks. Retrieved November 29, 2016. http://www.marketwatch.com/investing/stock/sne/profile
NPR on Virtual Reality. Retrieved November 25, 2016. http://www.npr.org/sections/alltechconsidered/2015/12/30/461432244/is-2016-the-year-virtual-reality-finally-goes-mainstream
Sony Entertainment Logo. Retrieved November 27, 2016. https://www.sony.co.uk
Ten Sports Logo. Retrieved November 28, 2016. http://www.afaqs.com/news/story/44872_Ten-Sports-unveils-new-network-logo
Rob Stringer Photo. Retrieved November 29, 2016. https://www.sonymusic.com/executives/rob-stringer/
Sony Management Team. Retrieved November 29, 2019. http://www.sonypictures.com/corp/management.html
Sony CRS Reporting. Retrieved November 29, 2016. https://www.sony.net/SonyInfo/csr_report/environment/

21st Century Fox

Posted on October 16, 2016 by gemarzol

Georgia Velkes, Jenna Levine, and Gabrielle Marzolf

Overview

In 1985, News Corporation, a newspaper company from Australia owned by Rupert Murdoch, acquired Twentieth Century Fox Film Corporation. Murdoch subsequently
built the company into one of the biggest media companies in the world. [1]

Rupert Murdoch
Executive Chairman

In 2012, News Corporation split into two companies. News Corporation kept all the newspaper assets and media assets were put into a new company named 21st Century Fox. 21st Century Fox has holdings in multiple media businesses internationally and in the United States, including broadcast and cable television networks like FOX, FX, Fox News Channel, and National Geographic, which reach over 1.8 billion subscribers. [2] The film company, 20th Century Fox, is one of the Big Six Hollywood Studios that produce and distribute films worldwide.

Financials

The company had a strong fiscal quarter ending September 30, 2016 with total revenue increasing 7% to $6.51 billion and a net income increase of 22% to $821 million. [3] A significant portion of that boost came from the Cable Network Programming division.

Gretchen Carlson, former anchor at Fox News

The Fox News Channel experienced significant growth, despite the Roger Ailes scandal in the beginning of the quarter, in which former anchor Gretchen Carlson sued Ailes for sexual harassment. Fox settled the lawsuit, which incited controversy throughout the company, and Ailes resigned. During the lawsuit, Fox faced great controversy and criticism, which increased when Ailes left the company with a $40 million exit agreement.

Roger Ailes, former CEO/Chairman of Fox News

In spite of the controversy, cable revenues increased 10% to $3.81 billion, driven by higher ratings and advertising revenue. The US presidential election, broadcasted on Fox News, increased domestic advertising revenue by 6% and gained the network more viewers. The film business revenue increased more than 6.8% to $1.91 billion which is credited to the theatrical release of “Independence Day: Resurgence” and the home entertainment release of “Deadpool” during the quarter. [4] The positive earnings release showed a 14.6% rise in the stock price over the past 3 months, gaining $3.62. [5]

New Licensing Agreements

As the television industry and television consumption transforms, 21st Century Fox’s goal is to become a central player in the new digital age. Fox Networks Group recently made a deal with AT&T Inc. and its DirecTV subsidiary. DirectTV launched a streaming service called DirecTV Now that allows viewers to stream their programming instead of watching it via satellite transmission. Fox News, Fox Business, FX and many more Fox networks will be available on AT&T’s live streaming service in addition to the content offered to DirecTV subscribers. [6] Fox has also made a licensing deal with Hulu to carry Fox channels on the new over-the-top (OTT) live TV subscription service Hulu will soon release. [7] The deal includes the FOX broadcast network along with the Fox Sports channels, National Geographic and more.

While 21st Century Fox licenses content to companies that partner programming with new technology like OTT providers, issues have arisen with subscriptions services like Netflix. In September, 21st Century Fox filed a lawsuit against Netflix for illegally “poaching” two under-contract executives: Tara Flynn, the former VP of Creative Affairs at Fox21, and Marcos Waltenberg, the former VP of Promotions at 20th Century Fox. [8] In retaliation, Netflix sued 21st Century Fox for the alleged use of illegal contract clauses. The outcome of these lawsuits could potentially impact how businesses manage employment contracts in the future. [9]

TV Ratings

This past quarter Fox Networks Group saw a huge increase of ratings with not only the presidential election and Fox News, but also the FOX network as a result of their rights to the World Series.

Fox News (http://www.foxnews.com)

Huge interest in this year’s presidential election saw primetime coverage reach a total of 71 million viewers, and Fox News channel’s 12.2 million viewers beat out CNN’s 11.2 million views for the most viewers of any cable channel for the 7pm-3am time slot, leaning toward a generally conservative audience. [10] When the election results announced Donald Trump as president elect, Fox News Channel maintained over 10 million viewers.

This fall, Fox’s overall ratings for the season rose from fourth to first place, with nearly 40 million viewers and a 12.1 rating with the 18-49 demographic. Previously, NBC was the number one network, however the World Series ratings boosted Fox to the top with an 8% advantage over its competitors. [11] Furthermore, unlike other networks, Fox has not experienced a ratings drop related to professional football broadcasting. Analysts suggest that Fox retained viewers because the network does not show any primetime games and delivers the best overall Sunday coverage including their post-show program, The OT. [12] Over Thanksgiving, Fox Sports aired the Washington Redskins versus Dallas Cowboys game, which, with 35.1 million viewers, was the highest rated program of the holiday and the highest rated NFL game to date. [13]

20th Century Fox

20th Century Fox

Unlike the other business divisions of 21st Century Fox, the film studio exhibited a weak performance over the past year, which resulted in leadership changes. Over the summer official Fox sources announced that the Chairman/CEO of the studio, Jim Gianopulos, would leave and Stacy Snider would replace him. [14] Since Snider has taken over, she has made a number of changes senior management, resulting in the departure of the marketing president Marc Weinstock, who left for Annapurna Pictures. [15]

Deadpool (2016) official movie poster

With all the personnel changes at the studio, senior management is focusing on the upcoming slate of movies for the next two to three years. After the commercial success of “Deadpool”, the studio faces pressure to release similarly profitable films. “Avatar 2” has been rumored to be released around Christmas 2018, so the studio will face pressure to follow up the highest grossing film of all time at the global box office. Fox’s film adaption of “Assassin’s Creed” generated anticipation of how the company would transition the content from a video game format to the big screen. [16]

The film is not yet released, but the hype surrounding the film shows that Fox is not afraid to take risks, and presents the company as more forward thinking.

Fox has the production and distribution rights to Marvel characters related to the X-Men property, including X-Men, Deadpool and Wolverine. Between films utilizing these characters and sequels to popular franchises—“Alien: Covenant”, “Kingsman: Golden Circle” and a total of four Avatar sequels—the studio has a significant amount of content to exploit over the next two to five years. [17]

Conclusion

Overall, 21st Century Fox is well poised for continued growth in revenue and income going forward. Strong licensing revenue to emerging and existing OTT providers as well as traditional networks and broadcasters is expected to continue and a strong pipeline of franchise tentpole films over the next three to five years should ensure continued financial success of the film studio. The introduction of new leadership at the studio and Fox News will ensure continued growth and success at these important divisions of the company.

References:

[1] 21st Century Fox. Rupert Murdoch. Retrieved November 29, 2016. https://www.21cf.com/managment/rupert-murdoch

[2] 21st Century Fox. Investor Relations. Retrieved November 29, 2016. https://www.21cf.com/investor-relations

[3][4] Lang, Brent. November 2, 2016. Variety. 21st Century Fox Earnings Get Lift From Fox News, ‘Deadpool’ Home Entertainment Debut. Retrieved November 29, 2016. http://variety.com/2016/film/news/21st-century-fox-earnings-get-lift-from-fox-news-deadpool-home-entertainment-debut-1201907353/.

[5] Nasdaq. FOXA Earnings Data. Retrieved November 29, 2016. http://www.nasdaq.com/earnings/report/foxa

[6] Moritz, Scott. November 21, 2016. Bloomberg. AT&T Expands Fox Programming Pact to Include Online TV Service. Retrieved November 29, 2016. https://www.bloomberg.com/news/articles/2016-11-21/at-t-expands-fox-programming-pact-to-include-online-tv-service

[7] Spangler, Todd. November 1, 2016. Variety. Hulu Inks Disney, 21st Century Fox Deals for Internet TV Service. Retrieved November 29, 2016. http://variety.com/2016/digital/news/hulu-disney-21st-century-fox-live-tv-1201906066/

[8] Flint, Joe. September 16, 2016. Wall Street Journal. 21st Century Fox Sues Netflix for Poaching Employees. Retrieved November 29, 2016. http://www.wsj.com/articles/21st-century-fox-sues-netflix-for-poaching-employees-1474053655

[9] Patten, Dominic. October 19, 2016. Deadline. Netflix Hits Back At Fox In Exec-Poaching Lawsuit, Claims Studio “Bullies” Employees Into Contracts. Retrieved November 29, 2016. http://deadline.com/2016/10/netflix-fox-lawsuit-cross-complaint-executive-poaching-1201839020/

[10] O’Connell, Michael. November 9, 2016. The Hollywood Reporter. TV Ratings: 71 Million Watched 2016 Election Returns Pour In; CNN and Fox News Set Records. Retrieved November 29, 2016. http://www.hollywoodreporter.com/live-feed/tv-ratings-nbc-leads-early-election-night-numbers-945493

[11] [12] O’Connell, Michael. November 4, 2016. The Hollywood Reporter. World Series Catapults Fox to No. 1 Slot for the Fall Season. Retrieved November 29, 2016. http://www.hollywoodreporter.com/live-feed/world-series-catapults-fox-no-1-slot-fall-season-944192

[13] O’Connell, Michael. November 25, 2016. The Hollywood Reporter. TV Ratings: NBC Parade Climbs – But Fox Football Dominates Thanksgiving. Retrieved November 29, 2016. http://www.hollywoodreporter.com/live-feed/tv-ratings-nbc-parade-climbs-but-fox-football-dominates-thanksgiving-950471

[14] Fleming, Mike, Jr. June 16, 2016. Deadline. Fox Makes It Official: Stacey Snider Is Chairman/CEO In June 2017; Jim Gianopulos Takes Role At 21st Century Fox. Retrieved November 29, 2016. http://deadline.com/2016/06/jim-gianopulos-stacey-snider-fox-executive-changes-1201773922/

[15] McClintock, Pamela. November 7, 2016. The Hollywood Reporter. Fox Shake-Up: Marketing President Marc Weinstock Departing Studio. Retrieved November 29, 2016. http://www.hollywoodreporter.com/news/fox-shake-up-marketing-president-marc-weinstock-departing-studio-944878

[16] Pech, Dana. November 9, 2016. Movie Pilot. Why ‘Assassin’s Creed’ Will Break The Video Game Movie Curse. Retrieved November 29, 2016. http://moviepilot.com/p/why-assassins-creed-will-break-the-video-game-movie-curse/4142547

[17] Chitwood, Adam. November 27, 2016. Collider. Fox Sets Release Dates for Two Secret Marvel Movies; Pushes ‘Kingsman 2’ to October 2017. Retrieved November 29, 2016. http://collider.com/fox-marvel-movies-release-dates-deadpool-3/

Images

(In order of appearance)

[1] Retrieved November 29, 2016. https://www.zacks.com/stock/news/194013/what-rupert-murdochs-news-corp-and-21st-century-fox-really-own

[2] Retrieved November 29, 2016. http://www.wikimedia.org/wikipedia/commons/thumb/c/c8/Rupert_Murdoch_-_Flickr_-_Eva_Rinaldi_Celebrity_and_Live_Music_Photographer.jpg/220px-Rupert_Murdoch_-_Flickr_-_Eva_Rinaldi_Celebrity_and_Live_Music_Photographer.jpg

[3] Retrieved November 29, 2016. http://cdn.thedailybeast.com/content/dailybeast/articles/2015/06/26/how-a-fox-news-host-handled-sex-assault/jcr:content/image.img.2000.jpg/1435310106558.cached.jpg

[4] Retrieved November 29, 2016. http://www.adweek.com/files/imagecache/node-inline/media-visionary-roger-ailes-hed-2015.jpg

[5] Retrieved November 29, 2016. http://global.fncstatic.com/static/v/all/img/og/og-fn-foxnews

[6] Retrieved November 29, 2016. http://www.manutd.com/sitecore/shell/~/media/D971B02AD7A246678E4092D1D2AE12C6.ashx?w=1280&h=720&rgn=0,281,2160,1501

[7] Retrieved November 29, 2016. https://images-na.ssl-images-amazon.com/images/M/MV5BMjQyODg5Njc4N15BMl5BanBnXkFtZTgwMzExMjE3NzE@._V1_UY268_CR1,0,182,268_AL_.jpg

Cumulus

Posted on October 16, 2016 by kavincen

By: Kaitlyn Vincent and Cairo Spencer

Cumulus Logo

History

Cumulus was co-founded in 1997 by brothers Lew and John Dickey in Atlanta, Georgia. The company broadcasts local programming as well as sports, syndicated media, entertainment brands and much more. The company has 447 owned-and-operated stations in 90 different US markets. The two platforms of Cumulus includes Cumulus Radio and Westwood One which contribute to massive reach of 245 million listeners per week. [1]

Similarly, Cumulus is known for the station NASH, which launched in 2013 and is the Nation’s leading provider of country music. In addition to the NASH radio sector, NASH has a country weekly magazine, television, live events and their own record label. Cumulus is now the second largest radio company behind iHeartMedia. [2] [13]

Key Executives

Mary G. Berner – President and Chief Executive Officer

John Abbot – Executive Vice President, Treasurer and Chief Financial Officer

Richard S. Denning – Senior VP, Secretary & General Counselor

Affiliates

Cumulus Radio and Westwood One are both syndicated services of Cumulus Media. In 2013, Cumulus acquired Westwood One which focuses on selling syndicated advertisements. Together they have become the exclusive radio broadcast partner to some of the biggest brands in news, entertainment, sports and talk. This includes major sports such as NFL, the NCAA and the Olympics, major events such as the Academy of Country Music Awards, the American Music Awards, the Billboard Music Awards, and even the Grammys. Cumulus has risen to become the nation’s leading provider of country music and lifestyle entertainment through its renowned NASH brand; named for the country music center that is the Nashville, Tennessee brand. NASH caters to country music fans nationwide through the use of radio programming, exclusive digital content, and live events. Cumulus Radio serves a demographically-diverse group across its 90 US markets. [1]

Cumulus and Westwood One Stations

Management

Cumulus hired Mary Berner, a former CEO of Reader’s Digest Executive, as the new Chief Executive Officer to try and turnaround the company in 2015. Before Mary stepped in, Cumulus’ stocks were dropping tremendously. One of Cumulus’ major shareholders, Crestview Partners, pushed out the founder Lew Dickey as the CEO and replaced him with Mary Berner. Before the turnover, the shares had dropped 80% of their value whereas after the turnover the shares dropped 39% after a couple of months. [8] [13]

In the coming months Mary is striving towards a “multi-year exercise” starting with fixing the operational basics. Secondly, she’ll be working on retaining the employees and improving satisfaction within the company due to a 50% turnover rate in 18 months in the company of 6,000 people. Her final area of concern is the rating decline for the company. [5]

“This company has lost more than a dollar of revenue for every dollar of expense reduction over the past four years,” she said. “So I’m focused on intelligently managing the cost structure.” – Mary Berner [7]

Although Cumulus’ headquarters is in Atlanta, Mary Berner is stationed within New York City, within the large market in which its syndicated service Westwood One caters to. According to Mary, there are four challenging feats she is facing with Cumulus which includes inescapable clean-up items from prior years, non-existent investment in systems, annual cost escalation due to the dynamic industry, and major capital investments. [5]

The New Cumulus CEO, Mary Berner

Financial

Cumulus had a low third quarter with a $286.1 million in the quarter. This was down from the $289.4 million in 2015. The low numbers are due to CEO Mary Berner’s adjustment period, the falling rating decline, and the lack of company structure. Recently however, Cumulus is heading into the fourth quarter with a positive stride with a 35.58% increase over the past 5 days. The price target for the company is currently at $5.00. Consequently, the Wall Street analysts recommend a hold recommendation for investors. [5] [8]

saupload_4dd239dc80a88d2069655e86796c52b8-1

Cumulus Media Equity Stub 2016

Cumulus is consumed in $2.5 billion in debt ever since the former CEO, Dickey Berner bought up several stations and lost Citadel back in 2010. However, a spokesperson disclosed that enough generated operational cash and asset sales will prevent Cumulus from becoming bankrupt and expects to gain $200 million at the end of 2017 from real estate sales. Furthermore, “We have no plans to file for bankruptcy and the next maturity for debt is not for three more years until May of 2019, so we have significant runway to begin to stabilize and ultimately grow the business,” the Cumulus spokesman said. [16]

In terms of trends, as of November 28, the 14-day ADX for Cumulus Media is at 39.28 which indicates a strong trend for investors. However, this number reflects the trend strength but not the direction of the trend. In another technical reading, Cumulus presently has a 14-day Commodity Channel Index of 31.93 which reflects the company’s normal oscillation since the reading is between -100 to +100. This represents how the Cumulus commodities are in a normal range between the overbought and oversold territory. These technical readings further reflect the positive direction for Cumulus entering into the fourth quarter. [6] [7] [12]

Recent Antitrust Lawsuit

Last April, Cumulus was sued for an antitrust suit by Talk Radio Network Enterprises LLC and three other Radio networks for allegedly conspiring with Westwood One, Cumulus’ advertising package bundler. This suit was filed in Oregon due to a group of radio producers claiming that Westwood One and Cumulus were trying to monopolize a national radio that solely benefits the Cumulus station while undermining independent programmers. By conspiring to monopolize, Cumulus Media and Westwood are violating the Sherman Antitrust Act. In addition, these companies are already thwarted due to Cumulus Media controlling 90% of the national syndicated ad bundling market. [9]

In a complex system of advertising bundling, the companies buying advertisements expect a certain amount of trust from Westwood One. These companies have been experiencing a lack of transparency of payment from Westwood. Similarly, Westwood has been accused of paying the companies lower than the deserved amount. However, this month the Oregon judges decided to gut the claim by rejecting half of the allegations based on prejudice. According to an attorney for the group of Radio Networks, they have no intent of stopping the suit. [10]

The Issue

While, Mary is working to solve the company’s problems, the main issue with the company is the large amount of debt it holds. This monetary debt is due to the former purchase of Citadel, a Nevada-based broadcasting holding company and the general decline in Radio revenue due to the amount of music streaming services online. Michael Harrison, a former radio station owner and publisher of RadioInfo agrees:

“Cumulus is suffering from the tail end effects of the era of consolidation… The biggest problem in the industry, he said, is “smothering debt,” – Michael Harrison [7]

Overview

The biggest question for Cumulus is how to combat the growing online streaming music services and the consolidation of radio amidst their staggering debt and turnover struggles. Cumulus must continue to cut spending and manage to find a solution that will boost revenue through services that can compete as opposed to services that tail behind the forefront of the changing world of radio. In terms of debt handling, the company has until May of 2019 to pay it off which should hopefully be enough time for Berner to stabilize the company.

Works Cited

[1] Cumulus Website. Retrieved: November 28, 2016.

[2] Jackson, Hazel. “Market Rating: Are Analysts Bullish Cumulus Media Inc (NASDAQ:CMLS) After Last Week?” Money Making Articles Hot Stuff. Retrieved: November 21, 2016.

[3] NASH Website. Retrieved: November 28, 2016.

[4] Cumulus Key Executives. Retrieved: November 28, 2016.

[5] “Big Challenges Remain For Radio’s Number Two.” Radio Ink. Streamline Publishing, Inc. Retrieved: November 28, 2016.

[6] Ho, Rodney. “Cumulus Media Drowning in Debt, Stock Slides.” Radio and TV Talk. Cox Media Group. Retrieved: November 29, 2016.

[7] Grantham, Russell. “Cumulus Media Hit by Debt, Radio Industry Troubles.” Cumulus Media Hit by Debt, Radio Industry Troubles. Cox Media Group. Retrieved: November 29, 2016.

[8] Karp, Hannah. “Cumulus CEO Aims to Revive Radio Broadcaster.” The Wall Street Journal. Dow Jones & Company. Retrieved: November 29, 2016.

[9] Sege, Adam. “Cumulus Hit With Antitrust Suit Over Advertising Payouts.” Law360. Portfolio Media, Inc. Retrieved: November 29, 2016.

[10] Koenig, Bryan. “Cumulus Media Gets Advertising Antitrust Suit Gutted.” Law360. Portfolio Media Inc. Retrieved: November 29, 2016.

[11] Oliveira, Michael Wiggins De. “Cumulus Media: A Highly Speculative Equity Stub.” Seeking Alpha. Retrieved: November 30, 2016.

[12] Weakley, Vanessa. “Looking at the Gauges on Cumulus Media Inc. (CMLS).” Microcap. Retrieved: November 30, 2016.

[13] Atkinson, Claire. “Cumulus Media’s New CEO Can’t Stop Company Slide.” NYPost. Retrieved: November 30, 2016.

[14] “Struggling Cumulus Media Loses its CFO” American City Business Journal. Retrieved: November 30, 2016.

[15] “Organizational Leadership Changes at Cumulus Media” MusicRow. Retrieved: November 30, 2016.

[16] Grantham, Russell. “Radio Giant Cumulus Tumbles After Flying High”. Cox Media Group. Retrieved: November 29, 2016.

Viacom

Posted on October 16, 2016 by eamccann

Beth McCann, Divya Yeleswarapu, Hugh Sims

http://hoitalent.com/positions/content-operator/

Viacom Logo [1]

VIACOM, INC.

1515 Broadway, New York, NY 10036

(212) 258-6000

viacom.com

ABOUT

Viacom Networks [3]

American media conglomerate Viacom, Inc. is a media company home to television, cinema, online and mobile networks and brands in over 160 countries and territories, reaching approximately 700 million subscribers around the globe.

Their leading brands include MTV, VH1, CMT, BET, Nickelodeon and its various channels, Comedy Central, Spike, and Paramount Channel. Viacom owns Paramount Pictures as well, which is a major producer and distributor for movies [2].

HISTORY

Viacom and CBS Logos [21]

Viacom got its start in 1971. Viacom acquired its various networks over the course of 30 years, purchasing various channels including MTV, Nickelodeon, and BET. In the 1990s they entered a merger with CBS [4]. However, the two separated into two companies in 2005, now known as CBS Corporation and today’s Viacom Inc. The split was made to separate radio and television from the rest of the company [21]. Today, Viacom continues to create new shows for their various networks and launch new ideas.

CURRENT AND FUTURE MEDIA

Recently, Viacom has been concerned with attracting younger viewers from children’s ages to young adults aged 18-25. They are trying to stay relevant in the developing world of streaming content but still trying to pull in viewers for live shows.

Rocko’s Modern Life Poster [5]

On Nickelodeon, Viacom is attempting to draw in new and old audiences alike with programming reminiscent of shows on in the 1990s. Viacom announced in August they would have an hour long special of the classic 90s Nickelodeon cartoon Rocko’s Modern Life [5].

In October they announced there would be a special of Double Dare, a game show from the 1980s and 1990s [6]. They later said they would be releasing Legends of the Hidden Temple: The Movie to come out based off of the popular 1990s Nickelodeon show [7]. They are attempting to appeal to a younger generation who has never seen this content as well as nostalgic young adults.

Legends of the Hidden Temple: The Movie-Official Trailer [8]

DirectTV Now Logo [15]

Viacom is also launching some of its networks on DirecTV Now, AT&T’s streaming service. They want to deliver more content to fans in more places and allow them to stream content at their own convenience [9].

However, Viacom is also developing tactics to aid in the live viewing experience for consumers. Viacom Labs created what they called a “breakthrough television format” that they hope to launch in 2017 on MTV Music. They have created a TV format that pulls livestreams of fans in a real time feed during the scheduled television show [10]. It creates an interactive and unique experience for fans and will help to motivate people to watch shows in real time rather than stream them days later.

MANAGEMENT

Philippe Dauman-Former CEO and President [11]

Within the last few months, Viacom has gone through some major changes in management. As of August 20^th, Chief Executive Philippe Dauman resigned which ended the legal fight between members of the Viacom board and Redstone’s National Amusements Inc. This is a privately held company that holds 80% of the voting shares of Viacom and CBS Corp. Under the agreement, Dauman received about $72 million and was replaced by previous COO Thomas Dooley who served as interim CEO until the end of Viacom’s fiscal year [16].

Robert Bakish-New CEO of Viacom [12]

Recently, Viacom declared that Robert Bakish will be acting chief executive replacing Tom Dooley. Bakish, a 19-year company veteran who headed the company’s international media networks, has also been named President and CEO of a newly created group called Viacom Global Entertainment Group [17]. The group will run Viacom’s most popular networks including MTV, Comedy Central, VH1, Spike and others [18].

FUTURE OF THE COMPANY

whats-next-for-the-tv-industry-find-out-from-cbs-ceo-les-moonves-at-ignition-2015

Leslie Moonves- CEO of CBS [13]

In terms of Viacom’s future, there is a lot leaning on this merger with CBS. According to The Hollywood Reporter the Viacom special committee who is working exclusively on the merger hopes to wrap everything up by the year’s end [19]. It is planned that CBS Corp. President and CEO Leslie Moonves would eventually oversee the combined entity. However, the company is determined to move forward whether as a stand-alone company or in a potential combination with CBS. Newest interim CEO Bob Bakish has a lot of goals and wants to push the company forward in terms of speed, sharing, and a global outlook. He is planning to invest in new content and to deliver significant audiences on genres other than high-dollar programming. Bakish said, “We’re not going to stand still while the CBS merger is being evaluated. I believe there’s a lot of work we can do in the near-term to make us stronger, no matter what the next chapter of Viacom is. It’s time to move forward [20].”

FINANCES

The first day of trading since the split between Viacom and CBS Corporation showed a 2.8 percent increase in the shares of CBS Corp. to $26.20, and a 1.1 percent increase in the shares of Viacom, to $41.59 [21]. In the current year 2016, they averaged out their most recent 50-day span at $41.47 per share. As of November 2016, Viacom has a 6.1% market share and is among the top 5 competitors in the cable and entertainment industry [24]. Due to the ongoing internal management battle, Viacom’s stock performance has gone down with -8.06% in the last 90 days, compared to the industry average of -0.22%. However, in comparison to CBS Corporation, Walt Disney Company, and Comcast Corporation, Viacom’s recent one day and five day stock performance, 3.58% and 1.4% respectively, has exceeded them all [22].

Viacom 52 Week Share Price [14]

This major media company has had declining performance over the last 11 years, however, it has never made negative profits and instead managed to stay afloat, but the drop in total revenue has been alarming. Over the last year their 52 Week High was $47.17 and their 52 Week Low was $38.61 [23].

Their total revenue has capped off at 13.05 B which is not where they want to be, considering that their profit margin is 15.85% and the typical average for a media company is usually around 23% [22]. In 2012, revenue increased about 16.7% because NBC Universal merged with Comcast Corporation, which provided Viacom with unforeseen and extra production materials, allowing mega growth through 2013 and the year-end stock price to cap off at $87.34 [23].

The revenue has seen a sharp decrease over the last five years by dropping 3.74% and ending the year 2015 with a drop of 44.36% to a monetary outcome of $6.18B as their gross income. It was the lowest value over the defined period. That left them with a free financing cash flow of $2.17B, which was a 12.75% decrease from the previous year 2014. However, the little glimmer of hope that Viacom took from its bleak financials into the current year 2016 is that the net operating cash flow has only been seeing growth over the last five years, and capped at a 17.43% increase coming in [22][24]. Therefore, this media conglomerate has cash to grow and operate its company through the many bumps in the reel.

OVERVIEW

Despite turmoil within the company and stress from the possible CBS, Viacom continues to move forward by creating new content for their networks and trying to reach as large an audience as possible.

SOURCES

[1] Viacom-HoiTalent. Retrieved November 25, 2016. http://hoitalent.com/company/viacom/

[2] About Viacom. Retrieved November 14, 2016. http://www.viacom.com/about/pages/default.aspx

[3] Dampier, Phillip. April 1, 2014. Stop the Cap! Viacom Demands 100% Rate Increases for Hundreds of Small Cable Systems, Military Bases. Retrieved November 14, 2016. http://stopthecap.com/2014/04/01/viacom-demands-100-rate-increases-for-hundreds-of-small-cable-systems-military-bases/

[4] Viacom Timeline. Retrieved November 14, 2016. http://www.viacom.com/about/pages/history.aspx

[5] Acquire Media. August 11, 2016. Nickelodeon Brings Back Rocko’s Modern Life for Brand-New, Original One-Hour TV Special Based on the Classic ‘90s Hit Animated Series. Retrieved November 14, 2016. http://ir.viacom.com/releasedetail.cfm?ReleaseID=984177

[6] Acquire Media. October 6, 2016. Nickelodeon Announces Brand-New Double Dare Special Commemorating Iconic Game Show’s 30th Anniversary Year, Wednesday, Nov. 23, at 9 p.m. (ET/PT). Retrieved November 14, 2016. http://ir.viacom.com/releasedetail.cfm?ReleaseID=992484

[7] Acquire Media. October 6, 2016. Nickelodeon’s Original TV Movie Event, Legends of the Hidden Temple, Bows Saturday, Nov. 26, at 8 P.M. (ET/PT). Retrieved November 14, 2016. http://ir.viacom.com/releasedetail.cfm?ReleaseID=992490

[8] July 23, 2016. Legends of the Hidden Temple: The Movie l First Official Trailer I Nick – YouTube. Retrieved November 25, 2016. https://www.youtube.com/watch?v=U7eHPW7n7Ko

[9] Acquire Media. October 4, 2016. Viacom Networks to Launch on DIRECTV NOW. Retrieved November 14, 2016. http://ir.viacom.com/releasedetail.cfm?ReleaseID=992023

[10] Acquire Media. October 24, 2016. First Ever Livestream-to-TV Format Pioneered by Viacom Labs, Greenlit for On-Air Series. Retrieved November 14, 2016. http://ir.viacom.com/releasedetail.cfm?ReleaseID=995056

[11] January 15, 2015. Viacom Extends Employment Agreement with President and Chief Executive Officer Philippe Dauman Through 2018. Retrieved November 26, 2016. http://www.businesswire.com/news/home/20150115006254/en/Viacom-Extends-Employment-Agreement-President-Chief-Executive

[12] Senior Management. Retrieved November 26, 2016. http://www.viacom.com/about/pages/seniormanagement.aspx

[13] Salem, Yasir. November 19, 2015. What’s next for the TV industry? Find out from CBS CEO Les Moonves at IGNITION 2015. Retrieved November 24, 2016. http://www.businessinsider.com/cbs-ceo-les-moonves-to-speak-at-ignition-2015-7

[14] Viacom, Inc. Retrieved November 26, 2016. https://www.google.com/finance?cid=703770

[15] DirectTV Now Logo. Retrieved November 16, 2016. http://www.multichannel.com/sites/default/files/public/styles/blog_content/public/DirecTV%20Now%20400×300.jpg?itok=Mb9HjA3j

[16] Reuters. August 20, 2016. Viacom Says CEO Dauman to Resign Post Immediately; Dooley Steps In. Retrieved November 12, 2016. http://fortune.com/2016/08/20/viacom-ceo-to-resign-immediately/

[17] Reuters. October 31, 2016. Viacom names Bob Bakish acting CEO. Retrieved November 14, 2016. http://fortune.com/2016/10/31/viacom-has-a-new-acting-ceo/

[18] Yu, Roger. November 1, 2016. Viacom names Bakish as acting CEO. Retrieved November 14, 2016. http://www.usatoday.com/story/money/2016/10/31/viacom-names-bakish-acting-ceo/93083054/

[19] Masters, Kim. November 10, 2016. CBS-Viacom Merger Intrigue as Les Moonves Pushes for Clear Control. Retrieved November 14, 2016. http://www.hollywoodreporter.com/news/cbs-viacom-merger-intrigue-as-les-moonves-pushes-clear-control-945477

[20] Lieberman, David. November 9, 2016. Viacom’s Bob Bakish Vows To Accelerate Growth As It Weighs CBS Merger. Retrieved November 16, 2016. http://deadline.com/2016/11/viacom-bob-bakish-accelerate-growth-plans-consider-cbs-merger-1201851548/

[21] Alfano, Sean. January 3, 2006. CBS, Viacom Formally Split. Retrieved November 16, 2016. http://www.cbsnews.com/news/cbs-viacom-formally-split/

[22] List of VIA’s Competitors and Stock Performance. Retrieved November 16, 2016. http://csimarket.com/stocks/competitionNO2.php?code=VIA

[23] Viacom Inc. – Stock Performance. Retrieved November 16, 2016. http://ir.viacom.com/stockquote.cfm

[24] IBISWorld US – Industry, Company and Business Research Reports and Information. Retrieved November 16, 2016. http://clients1.ibisworld.com/reports/us/industry/majorcompanies.aspx?entid=1245

Principles & Practices

Website by the students of TRF235