Time Warner Cable

Posted on February 18, 2016 by smwarren

BY RICARDO SMITH

Time Warner Cable Logo [1].

Company Overview

Time Warner Cable is an American cable telecommunications company. It is the second largest cable provider in terms of revenue only behind Comcast [2]. Time Warner Cable serves over 16 million customers in 29 different states [1]. The company was formed in 1992 through the merger of Time Inc. and Warner Communications’ respective cable businesses, following the merger of the two companies in 1989 [1]. Time Warner Cable was spun off as an independent operation in March 2009 [1]. Since its inception, Time Warner Cable has been a trailblazer in the cable industry. They have lead the way in technical innovation through the use of fiber optics to enhance the customer experience. Time Warner Cable provides cutting edge technology, a diverse selection of entertainment content, and superior service to homes across the United States [1]. On April 25^th, 2016, a deal was approved by the U.S Department of Justice for the purchase of Time Warner Cable by Charter Communications [3].

A screenshot from a Time Warner Cable commercial advertising one-hour windows [11]

A screenshot from a Time Warner Cable commercial advertising one-hour windows [6].

Customer Service

Time Warner Cable has a reputation for poor customer service. According to the American Costumer Satisfaction Index, Time Warner Cable was the most unpopular company in America in 2014 with a score of 54 out of a possible 100 [4]. Their television service was the second worst ranked brand on the list, followed by Comcast’s Internet Service Provider [4]. Cable companies have recently come under scrutiny for their increasing subscription fees and lack of choice in the market [5]. Cable prices have more than doubled in the past ten years [5]. The rise of over the top subscription video on demand has caused a decline in cable subscriptions [5]. A leading industry analyst estimated that the top 8 cable companies lost 463,000 subscribers in the second quarter of 2015 compared to 141,000 in the second quarter of 2014 [5]. The decline has caused companies to raise their prices [5]. In response to their poor customer service ratings, Time Warner has taken a number of steps. The company launched an ad campaign acknowledging it’s poor customer service and promising to improve it [6]. The main focus of this initiative is a one-hour window for all customer appointments. In 2015, the company reported a 13% decrease in care calls per customer relationship, 98% on-time percentage for customer appointments, and 15% improvement in first-visit resolution [7].

Time Warner Cable’s 2015 earnings report [7].

2015 Performance

In the fourth quarter of 2015, Time Warner Cable’s revenue grew by 4.9% [7]. The company earned $6.07 billion in 2015 [7]. This represents a 3.9% increase in yearly revenue, Time Warner’s highest in five years [7]. The company attributes the increase to accelerated growth in residential and business services [7]. The company’s operating income before depreciation and amortization (OIBDA) increased slightly for the fourth quarter and the whole year [7]. In their best year of residential subscriber performance ever, Time Warner added 618,000 new customer relationships, 1,000,000 high-speed data upgrades, and 1,036,000 voice subscribers in 2015 [7]. Time Warner made significant investments in 2015 to improve the customer experience and expand their network [7]. As a part of this effort, the company introduced an initiative to convert their infrastructure to an all digital system called TWC Maxx [7]. The new system results in increased Internet speeds, state-of-the-art television services, and improved overall reliability [7]. In 2015, TWC Maxx was fully implemented in six major cities and begun in 4 others [7]. The company has continued expanding the program in 2016 [8].

Comcast logo [11].

Proposed Comcast Merger

In November 2013, it was reported that Charter Communications was to put in an offer to purchase Time Warner Cable for around $135 per share [9]. As a result, Time Warner Cable stock rose by 10% [9]. Charter and Comcast stock also rose based on the rumor [9]. The offer was eventually rejected [10]. On February 13^th, 2014 Comcast announced that it intended to acquire Time Warner Cable through a stock swap [11]. The announcement was met with great opposition from government officials, industry executives, and consumer advocacy groups alike [12]. People were largely opposed to the merger based on Comcast’s behavior in past deals [13]. Following its acquisition of NBCUniversal, Comcast became a partial owner of Hulu [13]. As a part of the deal, Comcast was supposed to remain a silent partner and not influence or interfere with the operation of the company [13]. As of July 2013, Hulu was for sale [13]. In that same month, a meeting to decide the company’s fate took place between the operating partners; Walt Disney, 21^st Century Fox, and Comcast [13]. According to anonymous sources with knowledge of the conversation, Comcast told the other partners that it could enhance Hulu’s value, which caused them to decide not to sell the company [13]. This action directly violated the terms of Comcast’s NBCUniversal deal [13]. Other grievances included programmers experiencing continued difficulty in making their content available for streaming in Comcast markets and Comcast’s lack of promotion for a stand-alone broadband service that isn’t connected to a television package [13]. The proposed deal would have given Comcast a 57% market share of broadband services [13]. In April 2015, FCC Chairman Tom Wheeler came out in direct opposition of the merger [14]. In light of the strong public reaction, Comcast terminated the merger ahead of the official FCC decision later that month [14].

Charter Communications logo [15].

Charter Merger

Following the failure of the Comcast merger, Charter Communications announced that it would be merging with Time Warner Cable on May 26^th, 2015 in a $56.7 billion deal that combined cash and stock options [15]. Charter also announced that they would be purchasing Bright House Networks, previously controlled by Time Warner, in a separate deal for $10.1 billion [15]. This deal was met with far less opposition based on the lower combined market share in broadband service and Charter’s lack of recent negative PR [16]. In order to smooth the approval process, Charter promised not to impose data caps and not charge online content providers for direct connections to its network [16]. On April 25^th, 2016, the U.S Department of Justice approved the sale with conditions [17]. On the same day, FCC chairman Tom Wheeler circulated his approval to other FCC commissioners [17]. The order is expected to get enough votes for approval [17]. In their official statement, the Department of Justice said they worked closely with the FCC to coordinate their reviews of the deal and devise comprehensive remedies for the issues that it presents [18]. As part of the approval, Charter is forbidden from including clauses in their Pay-TV contracts that bar content creators from exploiting their programming through online video on demand [3]. This condition was included largely because Time Warner is notorious for being the most aggressive provider with these clauses [17]. The conditions also forbid Charter from retaliating against programmers for licensing to online video on demand [3]. These conditions will last for seven years [3]. The sale will not become official until California public utility regulators submit their approval [17]. They are scheduled to vote in the summer of 2016 [17].

Overview

Time Warner Cable’s recent acquisition by Charter Communications will begin a new chapter in the company’s history, as well as the state of cable television altogether. Charter is expected to retire the Time Warner Cable brand [18]. Combining their resources will allow the two companies to cut costs and hopefully provide better prices for their customers. The new Charter’s future success will rely heavily on their public perception in the aftermath of this merger.

Sources

[1] Time Warner Cable. Company Overview for Time Warner Cable. Time Warner Cable. Retrieved April 25 2016.

[2] National Cable and Telecommunications Association. Industry Data. National Cable and Telecommunications Association. Retrieved April 25 2016.

[3] The United States Department of Justice (April 25 2016). Justice Department Allows Charter’s Acquisition of Time Warner Cable and Bright House Networks to Proceed with Conditions. The United States Department of Justice. Retrieved April 27 2016.

[4] American Customer Satisfaction Index. American Customer Satisfaction Index. American Customer Satisfaction Index. Retrieved April 25 2016.

[5] Darrow, Barb and Jones, Stacy (August 18 2015). Cable consumers keep cutting the cord. Can anyone blame them?. Fortune. Retrieved April 25 2016.

[6] Morran, Chris (October 5 2015). Time Warner Cable Admits Its Customer Service Stinks. Pinky Swears To Do Better. Consumerist. Retrieved April 25 2016.

[7] Time Warner Cable Inc. (January 28 2016). Fourth-Quarter and Full-Year 2015 Earnings Summary. Time Warner Cable. Retrieved April 25 2016.

[8] Time Warner Cable Inc. (February 8 2016). Time Warner Cable Takes Next Step to Transform TV and Internet Experience in Central and Northern New York. Time Warner Cable. Retrieved April 25 2016.

[9] Yousuf, Hibah (November 22 2013). Cable stocks surge on takeover chatter. CNN Money. Retrieved April 25 2016.

[10] CNBC (January 13 2014). Time Warner Cable rejects Charter’s $61B bid as inadequate. CNBC. Retrieved April 25 2016.

[11] Comcast (February 13 2014). Time Warner Cable To Merge With Comcast Corporation To Create A World-Class Technology and Media Company. Comcast. Retrieved April 25 2016.

[12] Steel, Emily (April 22 2015). Comcast Critics Cast Doubt on Its Intentions. The New York Times. Retrieved April 25 2016.

[13] Steel, Emily (April 21 2015). Comcast’s Track Record in Past Deals May Be Hitch for Merger With Time Warner Cable. The New York Times. Retrieved April 25 2016.

[14] Trefis Team (April 28 2015). Comcast-TWC Merger Called Off; Where Do These Companies Stand Now. Forbes. Retrieved April 26 2016.

[15] Charter Communications Inc. (May 26 2015). Charter Communications to Merge with Time Warner Cable and Acquire Bright House Networks. Charter Communications Inc. Retrieved April 25 2016.

[16] Economides, Nicholas (March 22 2016). Why a Charter-Time Warner Cable Merger Won’t Actually Kill Cable Companies. Fortune. Retrieved April 25 2016.

[17] King, Hope and Stetler, Brian (April 25 2016). Giant cable merger cleared by regulators. CNN Money. Retrieved April 25 2016.

[18] Morran, Chris (April 25 2016). 5 Things You Should Know About the Approved Merger of Time Warner Cable and Charter. Consumerist. Retrieved April 27 2016.

AT&T/DIRECTV

Image

by: Sophia Malik

AT&T and DirecTV logos [1]

Company

AT&T is a leading global telecommunications company with many subsidiaries and business ventures, including DirecTV and Cricket Wireless. Its services and products include wireless communications, data/broadband and Internet services, video services, local exchange services, long-distance services, telecommunications equipment, managed networking and wholesale services [2]. Recently, the company has been working to improve employee relations, improve the brand name, and invest in new streaming technology to appeal to the ever-profitable millennial target audience.

Background

In 1876, Alexander Graham Bell invented the telephone. That was the foundation of the company that would become AT&T – a brand that is now intimately tied with innovation in communications.

_ Alexander Graham Bell with the first telephone [3]

In 1984, the former AT&T agreed to divest its local telephone operations but retain its long distance, R&D and manufacturing arms. From this, SBC Communications Inc. (first known as Southwestern Bell Corp.) was born.

Twelve years later, the Telecommunications Act of 1996 drove major changes in the competitive landscape. SBC expanded its U.S. presence through a series of acquisitions, including Pacific Telesis Group (1997) and Ameritech Corp. (1999). In 2005, SBC acquired AT&T Corp., creating the new AT&T, a leader in global communications for businesses. The acquisition of BellSouth in 2006 consolidated the ownership of Cingular Wireless.

AT&T led one of the most significant transformations in communications since the invention of the telephone: the birth of the mobile Internet. In 2013, AT&T bought Cricket to give customers in the growing prepaid market more access to mobile Internet services. In 2015, they completed their purchase of 2 Mexican wireless companies, Iusacell and Nextel Mexico. Today, they are encoiraging smartphone adoption and on their way to becoming a leading wireless provider in that country, too. Their 2015 acquisition of DIRECTV makes them the world’s largest pay TV provider.

Randall Stephenson, AT&T CEO talks DirecTV acquisition [4]

Today, AT&T’s share price is $38.21 [5]. This number is the result of a nearly 6% increase in EPS. [6]

Stock Price [7]

Key Executives

Randall Stephenson, Chief Executive Officer (2007-current) [8]

David S. Huntley, Chief Compliance Officer (2014-current) [8]

Ralph de la Vega, Chairman of AT&T Inc. (2016) [8]

Lori Lee, Senior Executive Vice President and Global Marketing Officer, AT&T Inc. (2015-current)[8]

Online Content

Fullscreen

Fullscreen Streaming Service [9]

With the goal of staying relevant in the increasingly social world, AT&T is launching a new streaming service, debuted through their DirecTV platform on April 26th, 2016. This streaming service, Fullscreen, targets a younger generation of 18-35 year olds who attain much of their TV watching through online portals and OTT services. ATT&T will co-produce premium content that will air both on fullscreen subscription video on demand service and on a Fullscreen programming block on AT&T’s AUDIENCE, available to DIRECTV and U-verse TV subscribers [10].

AT&T Restructuring

Along with a changing platform for providing content, AT&T is experiencing changes throughout the entire company. Most of the changes occurring in the company today stem from the desire to evolve into the digital sphere of providing entertainment. However, the companies attention to human resources and customer relations, as in their employee initiative which helps to mentor young students [11]. They have also been spending more on advertising. AT&T spent “more than $109 million on video advertising and claimed 60.7 percent of all consumer engagements in the wireless industry from March 16 to April 15” [12]. There is also a more sustained focus on customer satisfaction and fairness. As part of a deal with the FCC in leu of last year’s merger with DirecTV, AT&T is offering $5 internet for low-income families. [13]

Sources

[1] AT&T and DirecTV. Digital image. Https://s.yimg.com/uu/api/res/1.2/KyvjY0LgpQZ463vTiwNjVA–/aD01NjM7dz0xMDAwO3NtPTE7YXBwaWQ9eXRhY2h5b24-/http://media.zenfs.com/en_US/Entertainment/Variety/directtv-att.jpg. N.p., n.d. Web. Apr. 13.

[2] AT&T Company Profile | Reuters.com.” Reuters. Thomson Reuters. Web. 13 Apr. 2016.

[3] “Telephone Call.” SpringerReference. http://cdn.history.com/sites/2/2013/11/alexander-graham-bell-makes-telephone-call-AB.jpeg. Web. 13 Apr. 2016.

[4] “AT&T Completes DIRECTV Acquisition | AT&T.” YouTube. N.p., n.d. Web. 12 Apr. 2016.

[5] “AT&T Publishes 2015 Annual Report.” Investor Relations News, Financial Reporting for T:NYSE. N.p., n.d. Web. 15 Apr. 2016. <http://www.att.com/gen/landing-pages?pid=5718>.

[6] “AT&T Publishes 2015 Annual Report.” Investor Relations News, Financial Reporting for T:NYSE. N.p., n.d. Web. 15 Apr. 2016. <http://www.att.com/gen/landing-pages?pid=5718>.

[7] “AT&T Inc.” : NYSE:T Quotes & News. N.p., n.d. Web. 20 Apr. 2016. <https://www.google.com/finance?q=NYSE:T>.

[8] “Executive Bios Landing Page | AT&T Investor Relations | AT&T.” Executive Bios Landing Page | AT&T Investor Relations | AT&T. N.p., n.d. Web. 11 Apr. 2016. <http://www.att.com/gen/investor-relations?pid=7811>.

[9] Fullscreen Logo. 2016. Arm Digital. Web. 14 Apr. 2016. <http://armdigital.in/site/wp-content/uploads/2014/06/Fullscreen.jpg>.

[10] “AT&T Has Signed on as the Premier Launch Sponsor for Fullscreen | AT&T.” AT&T Has Signed on as the Premier Launch Sponsor for Fullscreen | AT&T. AT&T, n.d. Web. 24 Apr. 2016. <http://about.att.com/newsroom/premier_launch_sponsor_for_fullscreen.html>.

[11] “AT&T Employees Mentor 1 Million Hours, Surpassing Goal – AT&T People | Planet | Possibilities.” Www.about.att.com. N.p., n.d. Web. 15 Apr. 2016. <http://www.about.att.com/content/csr/home/blog/2016/01/at_t_employees_mento.html>.

[12] Gibbs, Collin. “AT&T Spends $109M to Reclaim ‘king of Wireless TV Advertising’ Crown.” FierceWireless. N.p., n.d. Web. 15 Apr. 2016. <http://www.fiercewireless.com/story/att-spends-109m-reclaim-king-wireless-tv-advertising-crown/2016-04-25>.

[13] CNN Wire. “AT&T Offering $5 Internet to Low-income Families.” WGNTV. N.p., 2016. Web. 24 Apr. 2016. <http://wgntv.com/2016/04/24/att-offering-5-internet-to-low-income-families/>.

YouTube

Posted on February 18, 2016 by Kyle Desiderio

Youtube Logo [1]

The Founders

Co-Founder: Chad Hurley [8]

Co-Founder: Steve Chen [9]

Co-Founder: Jawed Karim [10]

Current Key Executives

YouTube CEO: Susan Wojciki [2]

YouTube Chief Business Officer: Robert Kyncl [3]

YouTube Overview & History

Google Acquired YouTube in late 2006 [7]

YouTube is a worldwide video sharing company, which was launched in April 14, 2005 by three former PayPal employees [4]. Soon after their launch, Google purchased the company for $1.65 billion, making it the most expensive acquisition for Google at that time [5]. YouTube now operates as a subsidiary of Google. Since it’s launch, YouTube popularity has skyrocketed, serving as the premier destination to post videos, and creating a network of channels with a significantly easier barrier of entry compared to more established mediums. Youtube has positioned itself as a significant competitor to traditional media, with the coveted 18-49 year-old market accessing YouTube’s mobile site than any cable television network [6]. Many established networks and personalities now use YouTube as an extension to reach a much wider audience, such as The Ellen Show and The Tonight Show Starring Jimmy Fallon. With YouTube’s massive popularity, especially with the younger demographic, much of the company’s recent actions focus on profiting on their large user base.

Finances

Google's Stock plummeted after its Q1 Earnings Report [14]

Google’s Stock plummeted after its Q1 Earnings Report in mid April [14]

While Google is a publicly traded company, it is unclear what effect YouTube has on their stocks. Google has never released the earnings of YouTube and many have speculated that the web service has focused on building a strong user base rather than creating a profit [11]. Despite YouTube announcing it’s paid subscription plan, YouTube Red, a vast majority of YouTube’s revenue comes from advertisements, taking 45% of profits from every video allowing ads [12]. However, within the past few months, Google’s stock (now known as Alphabet, but still retaining the GOOG stock market tag) has fluctuated wildly especially with the April release of their First Quarter 2016 results, reporting a disappointing net income of $5.25 billion [13]. These earnings were more than $310 million less than average expectations, causing nearly a 5% drop in stock within 24 hours of the earnings release. Much of this can be attributed to spending that increased nearly 27%, focusing on improving YouTube’s servers and content acquisition for YouTube Red that was released in February 2016 [14]. While these numbers might be disappointing, the company seems to be doubling-down on its approach to attract viewers now, and worry about profits later, and it does seem unlikely that this will have a lasting effect on Google’s entire stock.

YouTube Red

YouTube Red, announced in late 2015, was the company’s attempt to launch into the paid subscription market. For $9.99/month users are able to view videos without advertisements, download videos, receive a free subscription to Google Music, and gain exclusive content [15]. While there was some controversy, YouTube released the first round of their exclusive content, to very mixed results, in February 10, 2016.

A Trip To Unicorn Island

Lilly Singh stars in YouTube’s first documentary [31]

YouTube Red’s first documentary, A Trip to Unicorn Island focuses on YouTube star Lily Singh and is produced by Astronauts Wanted. The piece focuses on Singh, holder of the YouTube account ||SuperWoman|| with more than 8 million subscribers, during her first worldwide tour [16]. The documentary is clearly targeted at her tween fanbase as she delves into her struggle with depression and preaches self-acceptance. However, mainstream media has given the piece little to no attention and currently holds a 4.2 rating on IMDb [17].

Dance Camp

Taking from the success of made-for-tv Disney films such as High School Musical, Dance Camp is a teen musical featuring songs created by YouTubers themselves [18]. Similarly to A Trip to Unicorn Island, YouTube’s first foray into the musical world has received essentially no professional press, as has user reviews hovering around 3.5 [19].

Scare PewDiePie

Scare PewDiePie features YouTube’s most subscribed user [32]

This web series centers the most subscribed YouTuber, Felix Kjellberg, otherwise known as PewDiePie, as he navigates different sets inspired off popular horror video games. The show format mimics what made his channel so popular; commentating and screaming the more terrified he becomes. His name popularity seems to have garnered some of the most press as well, with episode seven offered to the public for free amassing nearly 24 million views [20].

Lazer Team

Lazer Team, created by Rooster Teeth, is the most traditional offering in YouTube Red’s launch. [33]

The most “traditional” offering of YouTube Red is Rooster Teeth‘s Lazer Team, which prior to appearing on Red’s lineup received an actual theatrical release in late January [21]. The film created notoriety in the Summer of 2014 when it received nearly $2.5 million in a crowdfunding campaign on Indiegogo [22]. The internet company Rooster Teeth has had a very close relationship with YouTube over the company’s life cycle, so it isn’t surprising that the sci-fi movie was brought to YouTube instead of a more traditional physical DVD release. The movie also brings some credibility to the subscription service, since it is the only content to receive enough professional reviews to warrant a Metacritic score, receiving “mixed or average reviews” with a 42% [23].

The Future

While YouTube Red’s offerings have received very mixed critical reception, the company has plans to release much more content within 2016. This new content seems to branch out into new demographics, while still maintaining headlining YouTube stars such as Bad Internet written by College Humor and reality show Prank Academy starring PrankVsPrank, which was just began releasing episodes in April [24]. Much of this content targets YouTube’s very young demographic, and while it might attract viewers, it still remains to be seen if they have the capital to spend $10 every month for YouTube Red, especially when Netflix and Hulu‘s offerings seem to be much more well-received.

Live and 360 Video

YouTube Gaming was launched to directly combat video game live-streaming from Twitch.tv [34]

Despite the fact that YouTube has had a chokehold in streaming archived video, the company has fallen behind in the live-streaming market. Streaming services such as Twitch, Periscope, and even Facebook Live might not necessarily have the numbers that YouTube does, but it has left YouTube with a significantly smaller portion of that market. To combat this, YouTube released YouTube Gaming in August 2015 to combat Twitch, and continues to expand into the live video world [25]. According to a report by VentureBeat, Google might soon be entering the mobile market as well with an app called YouTube Connect, which would directly combat the popularity of Periscope [26]. YouTube was also the host of the first live-streamed event in the 2016 election cycle, with stars interviewing candidates live onto the website [27].

On April 18, YouTube also announced that it would combine live streaming with some of its newest technology: 360 degree video [28]. The company also announced that it would immediately begin to introduce spatial sound recognition into it’s 360 video, creating a more immersive sound experience. The effect of this announcement was released to the public during Coachella 2016, where artists such as Matt & Kim and Open the Gates was live-streamed to the public with 360 degree video [29].

As the cost of producing 360 degree-quality videos has reduced in price, YouTube has put capable cameras in all of their creative studios, allowing use for all YouTube content creators [30]. While the effects of this announcement are already being felt, this could also have massive implications for the virtual reality world, where live-streaming has never been compatible with the new technology, but now could be when paired with Google’s own Google Cardboard VR device.

Works Cited

[1] YouTube Logo. Digital image. YouTube. Google, n.d. Web.

[2] Susan Wojciki. Digital image. Twitter. Twitter, n.d. Web.

[3] Robert Kyncl. Digital image. Twitter. Twitter, n.d. Web.

[4] Hopkins, Jim. “Surprise! There’s a Third YouTube Co-founder.” USA Today. N.p., 11 Oct. 2006. Web. 25 Apr. 2016.

[5] Associated Press. “Google Buys YouTube for $1.65 Billion.” NBC News. N.p., 10 Oct. 2006. Web. 25 Apr. 2016.

[6] Google. “YouTube Statistics.” YouTube. YouTube, n.d. Web. 25 Apr. 2016.

[7] Google Logo. Digital image. Crunch Base, n.d. Web.

[8] Chad Hurley. Digital image. Bio.com. A&E Networks Television, n.d. Web.

[9] Steve Chen. Digital image. Bio.com. A&E Networks Television, n.d. Web.

[10] Jawed Karim. Digital image. Wikipedia. Wikipedia, n.d. Web.

[11] Oreskovic, Alexei. “How Much Money Does YouTube Make? Don’t Ask the New CFO.” Business Insider. Business Insider, Inc, 16 July 2015. Web. 25 Apr. 2016.

[12] Edwards, Jim. “The Biggest Stars on YouTube Make Huge Incomes … Yet They Can’t Keep the Vast Majority of It.” Business Insider. Business Insider, Inc, 03 Aug. 2015. Web. 25 Apr. 2016.

[13] “Alphabet Investor Relations.” Alphabet Investor Relations. Alphabet, Inc., 21 Apr. 2016. Web. 25 Apr. 2016.

[14] Owens, Jeremy. “Google’s Big Plans for YouTube and Cloud Lead to Big Spending.” MarketWatch. N.p., 22 Apr. 2016. Web. 25 Apr. 2016

[15] Google. “YouTube Red.” YouTube. YouTube, n.d. Web. 25 Apr. 2016.

[16] Lenker, Margert. “YouTube Fans See a Different Side of Lilly Singh in YouTube Red’s ‘A Trip to Unicorn Island’.” Variety. N.p., 11 Feb. 2016. Web. 25 Apr. 2016.

[17] “A Trip To Unicorn Island (2016).” IMDb. IMDb.com, n.d. Web. 25 Apr. 2016.

[18] Spangler, Todd. “‘Dance Camp’: YouTube’s First Movie Has More Adult Themes Than Disney Musicals.” Variety. N.p., 12 Oct. 2015. Web. 25 Apr. 2016.

[19]”Dance Camp (2016)” IMDb. IMDb.com, n.d. Web. 25 Apr. 2016.

[20] PewDiePie. “LEVEL 7 | I’M NOT CRAZY (OUTLAST IRL GAMEPLAY).“YouTube. YouTube, 10 Feb. 2016. Web. 25 Apr. 2016.

[21] Brouwer, Bree. “Rooster Teeth To Release ‘Lazer Team’ In Theaters, On YouTube Red On January 27 – Tubefilter.” Tubefilter. N.p., 15 Dec. 2015. Web. 25 Apr. 2016.

[22] “Lazer Team by Rooster Teeth.” Indiegogo. N.p., n.d. Web. 25 Apr. 2016.

[23] “Lazer Team.” Metacritic. N.p., n.d. Web. 25 Apr. 2016.

[24] “Get Your Popcorn Ready! Our First YouTube Red Originals Are Now Available.” Official YouTube Blog. YouTube, 10 Feb. 2016. Web. 25 Apr. 2016.l

[25] Sarkar, Samit. “YouTube Gaming Launches Aug. 26 with Website and Mobile Apps.” Polygon. N.p., 25 Aug. 2015. Web. 25 Apr. 2016.

[26] Yeung, Ken. “Google Is Building YouTube Connect, a Livestreaming App to Take On Periscope.” VentureBeat. N.p., 23 Mar. 2016. Web. 25 Apr. 2016.

[27] “YouTube Creators Live From Tomorrow’s #DemDebate.” Official YouTube Blog. Google, 16 Jan. 2016. Web. 25 Apr. 2016.

[28] “One Step Closer to Reality: Introducing 360-degree Live Streaming and Spatial Audio on YouTube.” Official YouTube Blog. Google, 18 Apr. 2016. Web. 25 Apr. 2016.

[29] Philips, Amy, and Noah Yoo. “YouTube Launching 360-Degree Live Streams With Coachella 2016.” Pitchfork. N.p., 16 Apr. 2016. Web. 25 Apr. 2016.

[30] Popper, Ben. “YouTube Introduces Live 360 Video, the Gateway Drug to Virtual Reality.” The Verge. N.p., 18 Apr. 2016. Web. 25 Apr. 2016.

[31] A Trip To Unicorn Island Poster. Digital image. Punjab2000. N.p., 12 Feb. 2016. Web. 25 Apr. 2016.

[32] Scare PewDiePie. Digital image. IMDb. N.p., 10 Feb. 2016. Web.

[33] Lazer Team. Digital image. IMDb. N.p., 10 Feb. 2016. Web.

[34] YouTube Gaming Logo. Digital image. PC Advisor. N.p., n.d. Web.

Netflix

Posted on February 18, 2016 by smwarren

Netflix Logo, Courtesy of Netflix (1)

Corporate Headquarters

100 Winchester Circle

Los Gatos, California 95032

(408) 540-3700

www.netflix.com

Officers and Directors

Reed Hastings, Founder and CEO (2)

Kelly Bennett, Chief Marketing Officer (2)

Jonathan Friedland, Chief Communications Officer (2)

David Wells, Chief Financial Officer (2)

Neil Hunt, Chief Product Officer (2)

Tawni Cranz, Chief Talent Officer (2)

Company History

In 1997, Reed Hastings and Marc Randolph founded Netflix after previously working together as high ranking software engineers at a company called Pure Software. At the beginning, Netflix was an online movie rental service. Over time Netflix adopted a subscription based model that offered endless movie options for a monthly fee.

400303 05: Packages of DVDs await shipment at the Netflix.com headquarters January 29, 2002 in San Jose, CA. The online DVD rental site has 500,000 subscribers who can rent, receive and return unlimited discs per month by mail. (Photo By Justin Sullivan/Getty Images)

Netflix DVD Rental, Courtesy of Huffington Post (5)

Devices Compatible With Netflix Streaming, Courtesy of Techforanyone.com (6)

The new idea proved to be effective, and in 2002, Netflix officially became a publicly traded company under the ticker “NFLX” with 600,000 active members in the United States. In 2005, that number grew to a reported 4.2 million users, which Netflix was able to sustain by introducing their ground breaking streaming service that allowed viewers to watch shows instantly. By the end of 2010, Netflix had become a major player in the technology world by partnering up with top electronics companies such as Microsoft, Apple, and Blue-ray. The reason for this was to enter other market places and reach all possible consumers. That became possible in 2011; Netflix began to stream internationally and entered countries in Europe and Latin America.(3) In 2013, Netflix produced it’s first original series called House of Cards, which became wildly successful and is still on the air today. Since then, Netflix has been nominated for 79 Emmys and has won 13, and is now viewable in over 50 countries and reports over 70 million subscribers.(4)

Finances

Netflix Memberships, Courtesy of CNBC (7)

Netflix reported earnings were double what most analyst expected. Impressively, Netflix posted a first-quarter EPS of 6 cents, which is up a full cent per share from the year-earlier period. Revenue came in at $1.96 billion, against 1.57 billion in 2015. Now in over 130 countries, Netflix has over 81 million subscribers.(7) This quarter, net additions amounted to a record 6.74 million shattering the old mark of 5.59 million in 2014 and operating income has been cut almost in half to $47 million vs. 97 million a year ago. One of the main reasons for the great quarter is because of the rapid membership growth. Netflix reported 6.74 million new members, which 4.51 million are international. US revenue grew 18% and profited $413 million, or had a 35.5% margin compared to a 31.7% margin a year ago. International revenue also improved, increasing 57% and contributing a loss of $104 million, which was better than expected due to the rapid expansion. In most of the international markets, Netflix is only offered in English and payment methods are extremely limited. Going forward, Netflix will add more local languages and payment options to ensure their international plan becomes as profitable as their United States core.(8)

Netflix Stock Price, Courtesy of Yahoo (9)

In 2015, Netflix stock price reached over $702.60 per share, which resulted in splitting the stock and giving shareholders an extra 6 shares lowering the price to $100.37 a share. Today, Netflix closed at $95.90 per share, comparably better than 79.77 a year ago.(9)

Global Distribution

International expansion is “vital” for Netflix to grow due to a subscription plateau in the United States. The company plans to be in 200 countries by the end of 2016 and in January announced it was live in more than 190 countries already.

Netflix Global Coverage, Courtesy of Netflix (11)

While English is the main language, Netflix added Arabic, Korean, and Chinese to the 17 languages already programed into the system. Netflix is now available on almost every device that can connect to the internet, and provides the best possible stream based on bandwidth. Although the company has still not made money going abroad, the actual service has been receiving high praise from its international consumers. The hopes that the company will eventually become fully “global’ seems to dwindle relying on China and North Korea, but Netflix does not seem to be giving up.(10)

Content

In the next quarter, Netflix will release seven new seasons of original content that will include shows like Unbreakable Kimmy Schmidt, Bloodline, Grace and Frankie, and Orange is the New Black. Also,the company will release the original films The Do-Over, Special Correspondents, and The fundamentals of Caring, which are set to have stars like Adam Sandler, Ricky Gervais, and Paul Rudd behind the projects. Most importantly, the second quarter marks the beginning of the first talk show on Netflix called Chelsea, starting Chelsea Handler.

Chelsea Poster, Courtesy7 of Chelsea Handler's Twitter

Chelsea Poster, Courtesy of Chelsea Handler’s Twitter (12)

This talk show is important because it will abandon the tradition “all episodes at once” model and enter into the realm of nightly streaming. Chelsea will start three nights a week and will be recorded in front of a live audience to compete with other Late Night shows. Lastly, since Netflix is now virtually global, the company has stepped up production of non-English series following the success of last years’s Narcos, which was filmed in both Spanish and English. Netflix plans to release their first french series Marseille on May 5th 2016, and Hibana their first Japanese film in June. These series will give Netflix an edge in non-english countries and will result in a global audience.(8)

Competition

Netflix has become the lead pioneer in streaming companies, but with so much success comes competition. The biggest threat to Netflix seems to be the emergence of Amazon. According to Nielsen, in the fourth quarter of 2014, Netflix had a 36% market share on American households to Amazon’s 13% and Hulu Plus‘s 6.5%.(15)

Amazon Vs Netflix, Courtesy of Techradar.com (17)

These numbers could change due to Amazon’s membership offering of $8.99 a month, one dollar less than Netflix sets to make it’s price in may. Amazon only sold Prime memberships for $99 previously, but on April 17th that changed to challenge Netflix. This is important because it could mean a huge loss in market share for Netflix moving forward. The price adjustment comes at a perfect time for Amazon because Netflix plans on raising their subscription fee from $7.99 to $9.99 a month. It should be interesting to see how Netflix reacts.16

Overview

Ultimately, Netflix shows that they are a media powerhouse that looks to make a major impact not only in the United States, but around the world. It will be interesting to see if their experiment in timed streaming will work, and if they can keep Amazon from gaining ground in the marketplace.

Sources

theodysseyonline.com accessed April 23, 2016
Netflix.com Officers and Directors accessed April 23, 2016
Media.Netflix.com accessed April 23, 2016
Bustle.com accessed April 24, 2016
huffingtonpost.com accessed April 23, 2016
techforanyone.com accessed April 24, 2016
CNBC.com accessed April 24, 2016
Shareholders PDF accessed April 24, 2016
yahoo.com accessed April 24, 2016
Media.Netflix.com Netflix around the world accessed April 24, 2016
Help.Netflix.com accessed April 24, 2016
Twitter.com accessed April 24, 2016
N/A
Youtube.com accessed April 24, 2016
Investorpedia.com accessed April 24, 2016
Geekwire.com accessed April 24, 2016
techradar.com accessed April 24, 2016

Hulu

Posted on February 18, 2016 by Jonah Rappaport

hulu company logo [1]

Founded: March 2007 by Beth Comstock & Jason Kilar

Jason Kilar [3]

Beth Comstock [2]

CEO: Mike Hopkins

Mike Hopkins [19]

SVP, Head of Distribution: Tim Connolly

Tim Connolly [19]

SVP, Head of Content: Craig Erwich

Craig Erwich [19]

SVP, General Counsel: Chadwick Ho

Chadwick Ho [19]

About

Hulu is an OTT (over the top) streaming service launched in 2008 to provide users with “hundreds of thousands of hours of the best of the best television programming and movies to subscribers with limited commercials” [4]. Hulu offers its services in both the United States and Japan on two pay scales: “with limited commercials for $7.99 per month or with no commercials for $11.99 per month” [4]. New users can also try Hulu for a 30-day free trial.

Compared to other OTT streaming services like Netflix and HBO Go, Hulu has the benefit of being owned by three of the largest programming distributors: NBCUniversal, Fox, and Disney-ABC. In total, Hulu has over 500 content partners [4], providing them a great advantage in programming over their competitors. On the advertising side, Hulu has partnerships with over 2,000 brand and companies, helping it gain recognition as one of “the top ad-supported online video sites” [4]. Hulu boasts a subscriber base of 9 Million users whose viewership trends are tracked by ComScore, Nielson, and Quantcast.

Background

Hulu was first announced during the Super Bowl XLII broadcast via an Alec Baldwin-starring commercial. Initially, the platform was available for free via an ad-supported system and at a premium level called “Hulu Plus” without ads. Archived content from its three powerhouse distributors (NBC/Fox/Disney) could be viewed in on an unlimited basis on both platforms. In 2011; however, Hulu announced that content would be available on the service the day after premiering once users authenticated their service-providers [5]. Later that year, the company struck a deal with the CW Network to also premiere their content next-day [6]. Two years later, Hulu signed on with BBC Worldwide North America to “bring as many as 2,000 episodes from 144 different BBC titles to a wider American audience” [7].

In Early 2015, AT&T struck a deal with Hulu to allow for streaming on “the telecom company’s websites and mobile apps” [11]. In June of 2015, Showtime became “the first premium service to be offered by Hulu” [8], in a monumental deal that allowed the company to effectively compete HBO Go by offering the addition of Showtime‘s premium content at only an additional $8.99/month as compared to HBO Go‘s $11.99/month charge [8]. This deal also showcased the Hulu platform’s ability to support premium add-ons, highlighting them as a powerful distribution tool for premium content providers. In

Original Programming

In 2011, Hulu partnered with documentary film-maker, Morgan Spurlock, on a 6-episode series titled, “A Day In The Life” [9]. The show was available to both free and premium subscribers and chronicled Spurlock as he followed a famous individual around for a day. In 2013, the company ramped up it’s original content by premiering “three original series and seven exclusive shows” [10]. As of April, 2016, the platform boasts 23 original titles, ranging from shows like The Awesomes to Deadbeat.

Exclusive Rights Deals

Currently, Hulu is focussed on acquiring rights to exclusive content and original series in order to lure potential users. This January, the company gained exclusive rights to stream “Lifetime’s critically acclaimed drama series from A+E Studios, UnREAL” [11] This move, which gambled on the success of a critically acclaimed show after it’s first season, highlights the mindset of much of the company’s moves thus far in 2016. In addition to UnReal, Hulu also picked up the rights to Chance, “a provocative psychological thriller that focuses on a forensic neuropsychiatrist who reluctantly gets sucked into a violent and dangerous world of mistaken identity, police corruption and mental illness” [12].

On January 27, Hulu announced a “landmark output deal” with IFC Films that makes “Hulu the exclusive streaming home for all future documentary releases from IFC Films, which will include all documentaries from the brands IFC Films, Sundance Selects and IFC Midnight” [15]. In a first-of-its-kind deal, all IFC films will now go directly from theaters to the Hulu platform in the first “one-window” agreement of its kind [15].

Curious George [17]

In March, Hulu and Universal announced a deal that gives the platform exclusive rights to the Curious George series for past and future releases within the window of a three-year deal [16]. In total, Hulu users “gain access to all nine seasons – over 100 episodes – of CURIOUS GEORGE^® TV series”. Additionally, Hulu will be the home to all Curious George feature-length films and the destination of “direct-to-TV specials” [16].

Content Creator

Aside from picking up the rights to existing content, Hulu sees itself as a platform for content creators to flex their muscles. Speaking at the Code/Media conference, CEO Mike Hopkins said, “What we’re trying to do is give creators the resources they need … and go for it” [14]. While the company is “lacking a defining show like “Orange Is the New Black” or “Transparent,” [14] Hulu is confident in its ability to win bidding wars for broadcast smash-hits, something apparent in the company’s success at beating out Netflix and HBO Go for the rights to Fox‘s Empire.

Virtual Reality

On March 24, Hulu announced the launch of it’s virtual reality application. Available on Samsung’s Gear VR platform, Hulu says that it will be bringing all current content to the app and will be “augmenting the experience with some of the very best 360-degree video content available” [18]. Additionally, the company states that users will be able to “watch the entire Hulu 2D library in immersive 360-degree environments” [18].

Overview

With the competitive world of OTT streaming as fiery a battle as ever, Hulu sees to distance itself from the competition by providing its users with innovative, exclusive content. To reel in new customers, the company hopes to be the first to strike gold in new ventures such as virtual reality and will continue to hope that its licensing deals continue to drive revenues.

Sources

[1] http://www.freelogovectors.net/hulu-logo-eps-file/

[2] Dan, Avi. “GE’s CMO Beth Comstock Inspires Innovation Through Instigating.” Forbes. Forbes Magazine, 19 Apr. 2012. Web. 25 Apr. 2016. <http://www.forbes.com/sites/avidan/2012/04/19/ges-cmo-beth-comstock-inspires-innovation-through-instigating/#61e6696d3de4>.

[3] Jason Kilar, Chief Executive Officer of Hulu LLC, Speaks during A…” Getty Images. N.p., n.d. Web. 25 Apr. 2016. <http://www.gettyimages.com/detail/news-photo/jason-kilar-chief-executive-officer-of-hulu-llc-speaks-news-photo/123197454>.

[4] About Hulu.” Watch TV and Movies on Xbox, PS3, Apple TV, and More. N.p., n.d. Web. 25 Apr. 2016. <http://www.hulu.com/press/about>.

[5] Stelter, Brian. “Fox to Limit Next-Day Streaming on Hulu to Paying Cable Customers.” The New York Times. The New York Times, 26 July 2011. Web. 25 Apr. 2016. <http://www.nytimes.com/2011/07/27/business/media/fox-to-limit-next-day-streaming-on-hulu.html>.

[6] Wasserman, Todd. “Hulu to Get Current Season of Gossip Girl and Other CW Content.” Mashable. N.p., 28 Oct. 2011. Web. 25 Apr. 2016. <http://mashable.com/2011/10/28/hulu-gossip-girl-cw/#0f8HZKPPEsqq>.

[7] Hulu BBC Deal: A Positive Step After Some Cloudy Times » CEOWORLD Magazine.” CEOWORLD Magazine. N.p., 18 Sept. 2013. Web. 25 Apr. 2016. <http://ceoworld.biz/2013/09/18/hulu-bbc-deal-a-positive-step-after-some-cloudy-times>.

[8] Perez, Sarah. “Showtime Becomes The First Premium Service To Be Offered By Hulu.” TechCrunch. N.p., 23 June 2015. Web. 25 Apr. 2016. <http://techcrunch.com/2015/06/23/showtime-becomes-the-first-premium-service-to-be-offered-by-hulu/>.

[9] Emami, Gazelle. “Morgan Spurlock ‘A Day In The Life’: Original Series Premieres On Hulu (VIDEO).” The Huffington Post. TheHuffingtonPost.com, n.d. Web. 25 Apr. 2016. <http://www.huffingtonpost.com/2011/08/17/morgan-spurlock-a-day-in-the-life_n_929008.html>.

[10] Gates, Sara. “Hulu Expands Original Content, Announces Three Series And Seven Exclusive Shows (VIDEO).” The Huffington Post. TheHuffingtonPost.com, n.d. Web. 25 Apr. 2016. <http://www.huffingtonpost.com/2012/05/21/hulu-expands-original-content_n_1532718.html>.

[11] Smiley, Minda. “AT&T Strikes Deal with Hulu to Offer Subscription Service to Its Customers.” The Drum. N.p., 25 Apr. 2016. Web. 25 Apr. 2016. <http://www.thedrum.com/news/2015/05/14/att-strikes-deal-hulu-offer-subscription-service-its-customers>.

[12] News.” TV Shows and Movies. Ed. Press Admin. N.p., n.d. Web. 25 Apr. 2016. <http://www.hulu.com/press/posts/hulu-acquires-exclusive-svod-rights-to-unreal>.

[13] News.” Watch TV and Movies on Xbox, PS3, Apple TV, and More. N.p., n.d. Web. 25 Apr. 2016. <http://www.hulu.com/press/posts/hulu-picks-up-chance>.

[14] CHMIELEWSKI, Dawn. “Hulu Finally Gets Serious With Original TV Series — But Is It Too Little, Too Late?” Recode. N.p., 18 Feb. 2016. Web. 25 Apr. 2016. <http://recode.net/2016/02/18/hulu-finally-gets-serious-with-original-tv-series-but-is-it-too-little-too-late/>.

[15] Press Admin. “HULU STRIKES FIRST EVER DEAL FOR PAY ONE WINDOW RIGHTS WITH IFC FILMS.” Hulu.com. N.p., n.d. Web. 25 Apr. 2016. <http://www.hulu.com/press/posts/hulu-strikes-first-ever-deal-for-pay-one-window-rights-with-ifc-films>.

[16] Press Admin. “HULU and UNIVERSAL INK GROUNDBREAKING DEAL FOR CURIOUS GEORGE® TV.” Hulu News. N.p., 17 Mar. 2016. Web. <http://www.hulu.com/press/news>.

[17] http://www.rivercenter.org/event/curious-george-2/

[18] Press Admin. “Hulu Launches Virtual Reality Application.” Hulu News. N.p., n.d. Web. 25 Apr. 2016. <http://www.hulu.com/press/posts/hulu-launches-virtual-reality-application>.

[19] Press Admin. “Executives.” Hulu Executives. N.p., n.d. Web. 25 Apr. 2016. <http://www.hulu.com/press/executives>.

Weinstein Company

Posted on February 18, 2016 by Julia Teti

By Julia Teti

[14]

The Weinstein Company

345 Hudson Street New York, NY 10014 [3]

http://weinsteinco.com

Introduction

MV5BMzU5MjEwMTg2Nl5BMl5BanBnXkFtZTcwNzM3MTYxNA@@._V1_UY268_CR0,0,182,268_AL_

The King’s Speech, Best Picture Winner 2011, Source: imdb.com [15]

Known for it’s numerous films; The Weinstein Company is responsible for the distribution of such movies as The Reader, The King’s Speech, and Silver Linings Playbook and within this past year Macbeth, Carol and The Hateful Eight.[1] A winner of multiple prizes when it comes to awards season, The Weinstein Company is a dominant film distributor and, though still relatively new to Hollywood, is distributing films that have received numerous critical accolades and various nominations among other accomplishments.

History

In 2005, the founders of Miramax (1979), Robert and Harvey Weinstein, launched the distribution company known as The Weinstein Company. Dimensions Films is also part of The Weinstein Company as a genre label founded in 1993 by Robert Weinstein. The Weinstein Company has received over 300 Oscar nominations and has won 81 Academy Awards in the short time since it’s founding. The Weinstein Company also is very strong in the realm of television; however, the focus here will be placed on its accomplishments and noteworthy happenings in film.[1] Headquarters for the company are located in New York, NY. The Weinstein Company does not disclose for the public it’s financial reports.

Awards and Accolades

The Hateful Eight, Source: imdb.com [16]

Known for it’s award winning films, The Weinstein Company saw a year in which none of its films were nominated in the Best Picture category, the first time since 2008.[2] The Weinstein Company has boasted films such as The King’s Speech and The Artist, both of which took home the Oscar for Best Picture. The year 2016 saw The Weinstein Company receiving ten nominations for it’s three films Carol, The Hateful Eight, and The Hunting Ground.[2] For these three films that did receive nominations, The Hateful Eight won the Oscar for Best Original Score, by Ennio Morricone.[6] Harvey Weinstein has been known to be associated with the Oscars and for campaigning heavily for his nominated films, dating back to before the founding of The Weinstein Company through the Weinstein brother’s previous company Miramax. With the issue of this awards season being equal representation of races in film, Weinstein had stated he would cause a stir with the Academy if Ennio Morricone did not win for his category.[6]

Executives [3]

Photo of Mr. Robert Weinstein (right), Co-Founder, Co-Chairman and Principal and Mr. Harvey Weinstein (left), Co-Founder, Co-Chairman and Principal [17]

Corporate Shake Ups

Erik Lomis, former Distribution Chief for The Weinstein Company, left his position as of March 2016 to pursue the role of Lead Distributor at Megan Allison’s Annapurna Pictures.[5] The news came in early March of 2016 as Lomis decided not to renew his contract with The Weinstein Company. Lomis has created positive business relationships with theatre owners and various talents in the film industry. Lomis is credited for taking Quentin Tarantino’s ambition to release The Hateful Eight in 70mm and making the idea come to fruition. Lomis is not the only associate to leave The Weinstein Company as of recently.[5]

[18]

RADiUS-TWC heads Tom Quinn and Jason Janego exited in summer of 2015.[5] Meryl Poster, former TV President, and Stephen Bruno, Marketing Chief, also dissolved their relationships with The Weinstein Company. With the loss of Janego and Quinn, The Weinstein Company is reconfiguring its boutique distributor RADiUS, responsible for such films as It Follows and Citizenfour. The Weinstein Company is currently planning to expand RADiUS day-and-date releases into new niche markets. An interviewing process has begun for the role of senior acquisitions executives to manage the VOD division. RADiUS is credited in helping The Weinstein Company with a scaled down, multi-platform release of the film Snowpiercer. The Weinstein brothers are also currently downsizing with a more focused slate of films for the 2016-year.[4]

Current Film: Jane’s Got a Gun

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Jane Got a Gun, Source: imdb.com [19]

The Weinstein Company’s latest film to come to theaters is Jane Got a Gun, starring Natalie Portman and Joel Edgerton. The film had been hit with constant delays. In production, Jane Got a Gun’s original director, Lynne Ramsay, quit, various casting changes were made, and the loss of an original distributor, until The Weinstein Company acquired it in September of 2015.The film premiered at the Museum of Modern Art in New York on January 27, 2016. With an unknown production budget, Jane Got a Gun’s wide release date was January 29, 2016.[7] The film’s domestic gross is currently $1,513,793 and made $835,572 in its opening weekend with it’s widest release being shown in 1,210 theaters. The close date for the film was February 25, 2016.[8]

Future Projects

With a shift to television, The Weinstein Company will be releasing fewer films this year. As of now, The Weinstein Company has three films with set release dates; The Founder is being released August 5, 2016, Hands of Stone is set to be released August 26, 2016, and Lion is going to be released November 25, 2016.[10] Originally, The Weinstein Company had the release dates for The Founder and Lion switched. In previous years, The Weinstein company has seen much success when releasing it’s films around the Thanksgiving holiday, which may be the cause for the change in the McDonald’s origin story starring Michael Keaton being released in August rather than November. Lion, a more touching family story, has the advantage a very dominant cast, including Nicole Kidman, Dev Patel and Rooney Mara, who recently saw success with her second Oscar nomination for Carol, another Weinstein Company production.[9] With the changed date, this means publicity for The Founder is beginning in full swing.

[20]

The trailer for the film premiered on April 21, 2016 and a poster for the film was previously released.[13] By creating space between the two films, The Weinstein Company is offering opportunity for its films to be considered awards season bait as they are spread further apart. Further in the future, Rooney Mara will be working in another Weinstein production, portraying New Testament figure Mary Magdalene in a biopic.[12] Being eyed to play the role of Jesus Christ is Joaquin Phoenix. A deal is in the works with the actor for the Garth Davis film.[11] In terms of distribution, The Weinstein Company will be working with the production company See-Saw Films, with whom they worked with on the release of The King’s Speech, Macbeth, and this November’s Lion.[12] Helen Edmundson and Philippa Goslett write the film’s screenplay, and production is scheduled to begin this summer. The Weinstein Company is planning to release the film in 2017.[11]

Sources

[1] The Weinstein Company. (n.d.). Retrieved April 24, 2016

[2] Piccalo, G. (2016, January 14). Oscars 2016: Where was Harvey Weinstein’s nomination? Retrieved April 24, 2016,

[3] The Weinstein Company Inc.: Private Company Information. (n.d.). Retrieved April 24, 2016

[4] Thompson, A. (2016, March 8). The Weinstein Co. to Reconfigure RADiUS. Retrieved April 24, 2016,

[5] McClintock, P. (2016, March 10). Weinstein Co. Shake-Up: Distribution Chief Erik Lomis Exiting (Exclusive). Retrieved April 24, 2016

[6] Harvey Weinstein Jokes About Academy’s Diversity Problem. (2016, February 26). Retrieved April 24, 2016

[7] Chi, P. (2016, January 28). Natalie Portman on Making ‘Jane Got a Gun’: ‘There Was an Obstacle Every Hour, Every Day’. Retrieved April 24, 2016

[8] Jane Got a Gun (2016) – Box Office Mojo. (n.d.). Retrieved April 24, 2016

[9] D’Alessandro, A. (2016, March 01). Weinstein Co.’s ‘The Founder’ Moves To August; ‘Lion’ To Roar During Thanksgiving Week. Retrieved April 24, 2016

[10] Upcoming Movies by Studio / Distributor. (n.d.). Retrieved April 24, 2016

[11] Jaafar, A. (2016, April 22). Joaquin Phoenix Eyed To Play Jesus Christ In Mary Magdalene Pic. Retrieved April 24, 2016

[12] Siegel, T. (2016, February 9). Weinstein Co. in Talks to Acquire Mary Magdalene Biopic. Retrieved April 24, 2016

[13] Khatchatourian, M. (2016, April 21). Michael Keaton Builds McDonald’s Empire in ‘The Founder’ First Trailer. Retrieved April 24, 2016

[14] Weinstein Company Logo. The Weinstein Company. Retrieved April 24, 2016

[15] The King’s Speech Poster. IMDB Media. Retrieved April 24, 2016

[16] The Hateful Eight Poster. IMDB Media. Retrieved April 24, 2016

[17] Photo of Robert and Harvey Weinstein. The Hollywood Reporter. Retrieved April 24, 2016

[18] RADiUS TWC logo. Retrieved April 24, 2016

[19] Jane Got a Gun Poster. IMDB Media. Retrieved April 24, 2016

[20] The Founder Trailer. Youtube. Retrieved April 24, 2016

[21] Photo of David Glasser. Retrieved April 25, 2016

Warner Bros. Pictures

Posted on February 18, 2016 by Jeremy Frierman

Jeremy Frierman

Corporate Headquarters

4000 Warner Blvd. Burbank, CA 91522

Phone: (818)- 954- 6000

www.warnerbros.com

Overview

On April 4, 2016 Warner brothers, Albert, Sam, Harry and Jack founded Warner Bros. Entertainment. Almost a century later, they have released over 7500 films, including multiple billion-dollar productions in the same year. They are currently a division of the media conglomerate, Time Warner. In the last 15 years, Warner Bros. has surpassed the billion-dollar marker for both domestic and international box office. This includes the past 9 years of reaching over $3 billion globally.

Key Executives

Kevin Tsujihara – Chairman and Chief Executive Officer, Warner Bros.

Edward A. Romano – Vice Chairman, Warner Bros. Entertainment

Richard J. Fox -Executive Vice President, International, Warner Bros. Entertainment

Financials

Warner Bros. is a division of Time Warner Cable. Time Warner is represented by TWX, and as of April 25, they are up over 15 points from their numbers taken in February 2016. Time Warner’s first quarterly report of 2016 will be released on May 4.

Current Releases

As of April 25, 2016, Warner Bros. Pictures has garnered 12.5% of the available market share. This percentage equates to over $400 million of gross profit, tracking sixteen total movies, including four released this year. Three of the four movies Warner Bros. have released this year (Batman V. Superman: Dawn of Justice, How to Be Single and Barbershop: The Next Cut) collected the majority of the year’s total gross up to this point. However, Batman V. Superman: Dawn of Justice has clearly been the company’s best investment as it compiled over $300 million in just one month of operation. This has lead the company to become the third highest earning distributor of market share and total gross.

Batman V. Superman is the follow up film to Zack Snyder’s 2013 superhero flick, Man of Steel. After seeing the success of Marvel’s Cinematic Universe, DC Comics knew that it wanted to expand and compete with its dynamic array of superhero figures. DC’s model to create their own cinematic universe compares to the already executed universe that Marvel has created. Just as Marvel had started with Iron Man, DC began their approach with Man of Steel. Batman V. Superman was the long awaited follow up that would launch DC into their next phase, a phase that looks all to familiar when you consider that Marvel’s third Avengers film will already be released as of next year. That’s why the reception that it received was so incredibly important because it potentially make or break DC’s long term plans for years to come. Batman V. Superman opened to an Easter weekend record of over $170 million across North America. That is the sixth best opening for a film in cinematic history.

Marketing

In just its first week of release (Mar. 25 – 31), Batman V. Superman obtained over $200 million domestically and over $500 million internationally. Even with the movie receiving negative reviews and consistent criticism (28% on Rotten Tomatoes), it still only took Warner Bros. a week to surpass their budget of over $200 million. Much of this financial success can be attributed to the strategic and substantial marketing campaign that Warner Brothers executed. Warner Bros. has always made it a point to efficiently market its biggest movies as exhibited in the past with the Harry Potter series as well as the Dark Knight and Hangover trilogies. For this movie, Warner Bros. outlined a campaign that would consist of interactive and viral content, along with mass-produced advertising. In totally, roughly $150-160 million was spent on marketing Batman V. Superman, including about $30 million on TV spending alone.

The campaign started around the central villain of the movie, Lex Luthor (played by Jesse Eisenberg). Marketers wanted to make the campaign as interactive as possible, which is why they took the fictional character and put him in the real world. Luthor’s fictional company, LexCorp Industries, was given a fictional website and a twitter account was created for Luthor in order to allow the fans to legitimately interact with the character. Furthermore, Fortune did an interview with Eisenberg (as exhibited below) as Luthor to discuss his inheritance of the company along with his future plans.

The campaign continued its interactive nature through Snapchat filters, specially made behind the scenes exclusives broadcasted internationally and even provided live streaming content for this year’s NCAA March Madness.

Warner Bros. went on to partner with a total of 130 companies in order to market the movie, including Turkish Airlines, Facebook and Amazon. Turkish Airlines even paid for an elusive Super Bowl spot, as well as advertisements in over 40 international markets.

Henry Cavill and Ben Affleck in a spoof trailer on Jimmy Kimmel Live

Along with making the campaign as interactive as possible, Warner Bros. certainly didn’t shy away from using its A-list actors as huge selling points in advertising the movie. Ben Affleck’s character Bruce Wayne was seen driving a Jeep Wrangler through Metropolis. Eisenberg and Affleck can be seen jetting around the world with Turkish Airlines. And of course, the stars all took to Late Night to promote the film, including The Tonight Show, Jimmy Kimmel Live and even Graham Norton (UK). Much of this was through a huge publicity tour that Affleck and Henry Cavill that started all the way in China.

Upcoming Releases/In Development

Warner Brothers certainly has no need to fret regarding a lack of upcoming content. Suicide Squad will be released this summer as a part of the DC universe, but instead, focusing on its villains. Other summer releases for Warner Bros. includes the comedies

Jared Leto as The Joker, in Suicide Squad

Keanu and War Dogs, along with blockbuster The Legend of Tarzan and action flick, Central Intelligence. And that’s just in the next few months. Warner Brothers will close out their year with the release of the Harry Potter spinoff, Fantastic Beasts and Where to Find Them. 2017 will see the release of the prequel Kong: Skull Island, Christopher Nolan’s WWII epic Dunkirk and of course, the all important Justice League Part One.

Conclusion

Warner Brothers Pictures has continued its tradition of producing some of the year’s biggest blockbusters in the year. Batman v. Superman is this year’s example of how far Warner Brothers is willing to go in order to see its coveted investments succeed, and succeed historically. Through an extensive marketing campaign, Batman V. Superman was able to obtain over $800 million after just one month of its release. The rest of 2016 will see the release of many more big budgeted films and with over $400 million in the books, the future looks promising for Warner Brothers Pictures.

Sources

Relativity Media

Posted on February 18, 2016 by Noah Mintz

by Noah Mintz

Relativity Media Logo [1]

RELATIVITY MEDIA

9242 Beverly Blvd #300, Beverly Hills, CA

http://relativitymedia.com

OVERVIEW:

Founded in 2004 by venture-capitalist and movie enthusiast, Ryan Kavanaugh, Relativity Media has and continues to produce, distribute, and structure financing for more than 200 films through their Relativity Studios division. These films have successfully accumulated more than $17 billion of revenue in the worldwide box office and generated over 60 Academy Award nominations [2]. Upon its inception, Relativity Media was widely praised for reimagining the Hollywood landscape in their buying of “textured, mid-budget films… To bankers, Kavanaugh appeared to have cracked the code, having come up with a way to forecast a famously unpredictable business by replacing the vagaries of intuition with the certainties of math” [3].

KEY EXECUTIVES:

RYAN KAVANAUGH, Chief Executive Officer [4]

RAMON WILSON, Interim President [4]

CAROL GENIS, Managing Director [4]

FINANCIALS & RESTRUCTURING:

After six years of financing and distributing high-profile films for major film studios like Sony Pictures Entertainment and Universal Pictures, Relativity Media began making and distributing their own movies in 2010 with their first original film, Season of The Witch (2010). Many industry professionals predicted the company’s downfall after witnessing Kavanaugh’s proven history of financial irresponsibility [5]. Yet Relativity persevered, dealing out successful high-grossing films like Immortals (2011 – $83.5 million), Limitless (2011 – $79.3 million), and Safe Haven (2013 – $71.3 million) [6]. Ryan Kavanaugh’s algorithmic, low-risk business model finally proved to be successful. With over $560 million of assets by the summer of 2015, Relativity seemed relatively untouchable. Yet when an outstanding $330 million in debt to various lenders came due in July of the same year (not to mention the $1.8 billion of debt due in the following years), Relativity was forced to file for Chapter 11 bankruptcy protection on July 30th in New York State Bankruptcy Court [5].

Relativity’s Ryan Kavanaugh Breaks Silence, Points Fingers in Emotional Post-Bankruptcy Interview [5]

With this major speed bump in Kavanaugh’s plan for the future of Relativity Media, the production company came out of the 2015 fiscal year on a surprisingly high note: ranking 12th amongst all other production companies in total market share with 0.6%, and grossing $74.2 million on four movie releases (making them the third largest mini-major production company) [7]. Similarly, things began to look up for Relativity Media at the start of this Spring when United States Bankruptcy Judge Michael Wiles confirmed a reorganization plan for Relativity on February 8th, 2016. With an offer from Trigger Street Productions‘ notable industry moguls Kevin Spacey and Dana Brunetti, Relativity was set to have their debt reduced by over $630 million [8]. Although the deal included Relativity losing their television, fashion, and sports agency divisions to various lenders as a partial settlement for their egregious debt, the film division, Relativity Studios, was granted approval to release their upcoming films Masterminds, The Disappointments Room, Before I Wake, Kidnap, and The Strangers 2 upon successful completion of the deal. Just one month after the negotiation was proposed on the other hand, Spacey backed out, citing his busy acting schedule as an excuse for his inability to serve as Relativity Studio’s new chairman [9][10]. Brunetti did remain on board, however, and now serves as the studio’s President of Production in both film and television operations [11]. After multiple other financial dealings fell through including the unsuccessful Trigger Street negotiation, Relativity entered bankruptcy court once again on March 19th, now with only $16 million of financial help from various capital groups, as opposed to the $100 million Kavanaugh had pledged upon filing Chapter 11 [10].

Image from The Wrap’s “Ryan Kavanaugh’s Relativity Media Declares Chapter 11 Bankruptcy” [13]

On top of Relativity’s fruitless financial dealings, news broke of Relativity Media’s apparent ‘Ponzi Scheme’ in late March. According to Variety magazine’s online article, “The New York investment firm Colbeck Capital aided and abetted Relativity Media’s fraudulent acquisition of a crucial film-release loan — money that was misspent on corporate expenses and to support the high-flying lifestyle of Relativity founder Ryan Kavanaugh” [9]. This claim by RKA Film Financing seeks over $110 million in damages, and has the potential to put Relativity further in debt if found guilty [9].

Amongst Relativity Media and Kavanaugh’s slew of shortcomings and failures to fulfill many of its early bankruptcy pledges, Judge Michael Wiles shockingly granted Relativity Media approval to exit bankruptcy status after many negotiations and a successful $400 million refinancing plan with UK investment firm, Maple Leaf Films (of Maple Leaf Capital Group) [12]. While the investment company has an oddly shady past and limited credits in the film industry, Maple Leaf Films proved to be a significant life saver for the drowning Relativity Media. In the meantime, as they begin the post-bankruptcy reorganization phase, Relativity must face RKA Film Financing and FTI Consulting in court. In the coming months, Relativity will attempt to resolve RKA’s ‘Ponzi Scheme’ claim against the company, and FTI’s fee dispute that began in the summer of 2015 and could cost Relativity an added $4 million of debt [9].

PROJECTION & CONCLUSION:

Upon Relativity Media’s ultimate emergence from bankruptcy, Ryan Kavanaugh and his newly diminished team of industry professionals will continue in their attempt to regain the reputation that was lost in the summer of 2015. With the help of Maple Leaf Films’ convenient endorsement and Judge Wiles’ thoughtful compassion in bankruptcy court, Relativity looks to rebound with its upcoming films Masterminds (which was postponed from its original 2015 release), The Disappointments Room, Before I Wake, Kidnap, and Strangers 2. After a full year without a release, Relativity needs a break. While these upcoming releases do not necessarily ensure a future of success for Relativity, the big-named high-profile comedy, Masterminds, looks to be the company’s one saving grace. With Kristen Wiig, Zach Galifianakis, Owen Wilson, and Jason Sudeikis as the headlining cast, the 2016 comedy earned a 96% in the “Want to See” category on Rotten Tomatoes [14]. While it falls under the throw away genre of stupid comedies, it is likely to make Relativity some much needed cash. Check out the trailer below.

[17]^

There is no certainty when it comes to the future of Ryan Kavanaugh and his brainchild, Relativity Media, but on Relativity’s website dedicated to the company’s reorganization, the CEO and Chairman of the board said it best. While their shaky past two years have further diminished the reputation of a company once recognized as a revolutionary force in the film industry, Kavanaugh promised that “the Relativity that emerges from the Chapter 11 process will be better capitalized and have greater financial flexibility” [15].

Finally, here’s a sneak peek of Realtivity Media’s upcoming film slate directly from their website.

Screenshot of Relativity Media’s upcoming film slate direct from their corporate website [16].

SOURCES CITED:

[1] Logopedia. “Relativity Media – 2013 (Free Birds).jpg.” Wikia. Retrieved on: April 22, 2016.

[2] “Relativity Corporate Site – Leadership: About.” Relativity Media. Retrieved on: April 22, 2016.

[3] Wallace, Benjamin. Janruary 25, 2016. “The Epic Fail of Hollywood’s Hottest Algorithm.” Vulture Magazine. Retrieved on: April 22, 2016.

[4] “Relativity Corporate Site – Leadership.” Relativity Media. Retrieved on: April 22, 2016.

[5] Siegel, Tatiana. August 05, 2015. “Relativity’s Ryan Kavanaugh Breaks Silence, Points Fingers in Emotional Post-Bankruptcy Interview (Exclusive).” The Hollywood Reporter. Retrieved on: April 22, 2016.

[6] “Box Office By Studio – All Time: Relativity.” Boxofficemojo.com. Retrieved on: April 22, 2016.

[7] “Studio Market Share – 2015.” Boxofficemojo.com. Retrieved on: April 22, 2016.

[8] Gardner, Eriq. February 08, 2016. “Judge Officially Confirms Relativity’s Reorganization Plan.” The Hollywood Reporter. Retrieved on: April 22, 2016.

[9] Rainey, James. March 10, 2016. “Colbeck Capital Aided Ryan Kavanaugh’s ‘Ponzi Scheme,’ Film Lender Claims.” Variety Magazine. Retrieved on: April 22, 2016.

[10] Rainey, James and Lang, Brent. March 15, 2016. “Without Kevin Spacey or New Equity, Relativity Now Must Face Judgment Day.” Variety Magazine. Retrieved on: April 22, 2016.

[11] Lang, Brent and Littleton, Cynthia. March 13, 2016. “Relativity Relaunch: Kevin Spacey Nixes Chairman Role, Dana Brunetti Sets Deal.” Variety Magazine. Retrieved on: April 22, 2016.

[12] Rainey, James. March 17, 2016. “Relativity Media Claims Lifeline From Obscure Maple Leaf Films.” Variety Magazine. Retrieved on: April 22, 2016.

[13] Cunningham, Todd and Donnelly, Matt. July 30, 2015. “Ryan Kavanaugh’s Relativity Media Declares Chapter 11 Bankruptcy.” The Wrap. Retrieved on: April 22, 2016.

[14] “Masterminds (2016).” Rotten Tomatoes. Retrieved on: April 22, 2016.

[15] “Relativity Corporate Site – Reorganization.” Relativity Media. Retrieved on: April 22, 2016.

[16] “Relativity Corporate Site – Films.” Relativity Media. Retrieved on: April 22, 2016.

[17] Movieclips Trailers. “Masterminds Official Trailer #1.” YouTube. Retrieved on: April 22, 2016.

Paramount Pictures- Julia Dorin

Posted on February 18, 2016 by smwarren

Paramount Pictures

5555 Melrose Avenue, Los Angeles, CA. 90038

www.paramount.com

HOW IT ALL STARTED

Paramount Pictures, founded in 1912 by Adolph Zukor, is the fifth oldest film studio on Earth. Along with Zukor, Paramount’s founding fathers include Jesse L. Lasky ad Cecil B. DeMille, whose innovation and determination have created an empire. Since its conception in 1912, Paramount has become one of the foremost production and distribution companies in the entertainment industry [1]. Owned by media conglomerate Viacom, Paramount maintains a solid reputation and has branched into various divisions including Paramount Animation, MTV Films, Comedy Central Films, Nickelodeon Movies and many others. Paramount has had multiple successful releases in 2016 so far and anxiously awaits the release of various new projects.

THE TEAM

Led by Chairman and Chief Executive Brad Grey, Paramount Pictures develops and produces iconic pictures such as “The Big Short”, ”The Wolf of Wall Street”, “Star Trek”, and many more. Grey took over the company in 2005, leading it to great success by finishing first in the global market in 2011, and maintaining high morale and a good reputation throughout his tenure. However as of late, Grey has faced financial trouble as the leader of Paramount, showing a substantial decrease in operating profit from last fiscal year’s $205 million to this fiscal year’s $111 million [2]. Another revered executive, Rob Moore, serves as the Vice Chairman for Paramount Pictures. Moore works to oversee the company’s Worldwide Marketing and distribution of films and television programs. Other executives include Frederick Huntsberry, Marc Evans, and Amy Powell, all who contribute to Paramount’s long-lasting success [3].

Brad Grey- CEO of Paramount Pictures [12]

FINANCES

So far this year, Paramount Pictures has acquired a total film gross of $311,567,245 from a variety of films. “Daddy’s Home” grossed a total of $150,357,137 since its release in December of 2015. “The Big Short”, also released in December of 2015 grossed $70,259,870 as well as receiving the Academy Award for Best Writing, Adapted Screenplay. The film was also nominated for another four Oscars and four Golden Globe awards as well. Paramount also released “Anomalisa”, which was nominated for Best Animated Feature Film in the 2016 Academy Awards. Other releases such as “Zoolander 2” and “Whiskey Tango Foxtrot” have contributed to Paramount’s total film gross thus far [4]. Paramount is known for some of the most grandiose pictures ever produced, such as James Cameron’s 1996 Blockbuster “Titanic”, which was awarded the Oscar for Best Picture during the year of its release. Other top notch production includes “Interstellar”, starring Matthew McConaughey, which won an Academy Award for Best Achievement in Visual Effects during the 2015 Oscars.

[9]

[10]

THE FUTURE

Looking ahead, Viacom is searching for a minority investor in Paramount in order to expand its content through the help of another company. Philippe Dauman, Viacom’s Chief Executive, believes a new investor would aid in Paramount’s recently dropping stock price and decreased ratings, which is depicted by the 2015 market share of 5.9%. Ideally, Paramount is looking for a Chinese investor to expand the company’s horizons and broaden its foreign influence. With the strict censorship implemented by China’s government, a Chinese partner would be extremely helpful for Paramount’s future success due to China’s massive population being about twenty percent of the total world population. Other interested parties include high profile companies such as Amazon, Apple, and Lionsgate Entertainment who have expressed the desire to get involved with Viacom’s Paramount Pictures. However, there is some controversy surrounding a new investor due to Paramount’s decrease in net worth. Viacom paid $9.8 billions dollars to acquire Paramount in 1994, yet current predictions value the company at only $5.5 billion today [5]. 21^st Century Fox has demonstrated great interest in buying a portion of Paramount, which could be a smart business move and allow the company to begin paying off some of their debt [6].

GLOBAL EXPANSION

[11]

Paramount recently gained rights to continue sharing their content to European countries after a long investigation with the European Union. The EU charged many companies including Google with anti-trust violations, claiming that streaming services such as Sky, which were carrying Paramount programs, were unfairly inaccessible to those outside of certain territories in the European Union. After much debate, Viacom and Paramount Pictures have reached a peaceful and satisfactory conclusion with the EU, allowing the production company to continue to license their programs through premium pay-TV output license agreements. This agreement also abolishes the prospect of fines as well as establishing a basis to solve other disagreements between various entertainment companies and the European Union [7]. Symbiosis between the EU and Paramount Pictures aids the company in reaching global success and distributing their programs and films across the world.

COMING UP

As one of the most iconic companies in the industry, Paramount has produced classic films such as “The Godfather”, and with numerous new releases on the horizon, they continue to hope for more success at the box office. Anticipated releases include “Star Trek Beyond”, “Ben-Hur”, and “Teenage Mutant Ninja Turtles: Out of the Shadows”, all of which Paramount has great hope for [8]. Huge blockbusters are essential not only to increase the company’s market share price and total gross but to maintain their outstanding reputation as well. Films such as “Star Trek Beyond” bode well for Paramount, due to the franchise’s already established consumer base, making the film a much anticipated release in the coming year.

Although Paramount Pictures has seen better days fiscally, the company still holds its head high and continues to produce and distribute projects that change the way audiences view cinema. With the implementation of a new investor combined with the already established leadership of Brad Grey and his team, Paramount will certainly make a comeback in the industry. With the increase of foreign cooperation, Paramount executives have high hopes that their company to extend beyond country borders, making their films renowned around the world.

SOURCES

[1] Paramount.com. (2016). The Paramount Story. Retrieved 25 April 2016.

[2] Atkinson, C. (2016). Paramount’s Brad Grey Needs Big Success to Save his Job. New York Post. Retrieved 25 April 2016.

[3] Paramount.com (2016). Paramount Executives. Retrieved 25 April 2016.

[4] Boxofficemojo.com. (2016). Paramount Yearly Comparisons. Retrieved 25 April 2016.

[5] Bond, P. (2016). Paramount’s Suitors? Here’s Seven Top Prospects. The Hollywood Reporter. Retrieved 25 April 2016.

[6] Atkinson, C. (2016). 21st Century Fox Eyes Minority Slice of Paramount Pictures. New York Post. Retrieved 25 April 2016.

[7] Jafaar, A. (2016). Paramount Offers Concessions in EU Anti-trust Investigation. Deadline Hollywood. Retrieved 25 April 2016.

[8] Boxofficemojo.com. (2016). Paramount Upcoming Releases. Retrieved 25 April 2016.

[9] Paramount.com. (2015). Daddy’s Home Image. Retrieved 25 April 2016.

[10] Wikipedia. (2015). Anomalisa Poster. Retrieved 25 April 2016.

[11] Trekcore. (2015). Star Trek and Beyond Poster. Retrieved 25 April 2016.

[12] Paramount.com. (2015). Brad Grey Executive Biography. Retrieved 25 April 2016.

MGM

Posted on February 18, 2016 by Bradley Hanford

MGM Logo [1]

Finances

After a bankruptcy declaration in 2011, Metro-Goldwyn-Mayer has regained its position as a profitable major film studio in the last five years. MGM Studios is owned by the larger parent company of MGM Holdings Inc., a company formed from what was formerly Spyglass Entertainment [2]. In 2015, the studio made $1.56 billion in revenue, resulting in an operating income of $258.78 million. This was up from $1.44 billion and $243.03 million, respectively, in 2014. 2015 was the company’s third consecutive year of posting record revenue and income. MGM Holdings’ total assets currently stand at $3.045 billion [3]. The studio has been in the process of repurchasing its stocks since its bankruptcy, and in March announced that $300 million more would be added to their repurchasing plan. The ramping up of the repurchasing plan has been taken as a sign of confidence in the company’s continued growth [4].

Recent Acquisitions

In January of 2016, MGM fully acquired the United Artists Media Group, a film and television production company that had been a joint venture with Mark Burnett, Roma Downey and Hearst Productions. MGM had acquired a 55% stake in Burnett, Downey and Hearst’s One Three Media and LightWorkers Media in September 2014, and relaunch the companies as United Artists. As of January 2016, all revenues, expenses and assets of United Artists are now consolidated under the MGM name [5].

Gary Barber [6]

Mark Burnett [7]

Jonathan Glickman [8]

Executives

MGM’s three top executives are Chairman and Chief Executive Officer Gary Barber, President of the Television and Digital Group Mark Burnett, and President of the Motion Picture Group Jonathan Glickman. Barber and Glickman were previously the heads of Spyglass Entertainment, where Barber oversaw the production of a total of $5 billion in box office productions. MGM became the first studio to release back-to-back films making over $1 billion at the box office under Barber’s leadership with The Hobbit: An Unexpected Journey and Skyfall. Burnett was named to his position in January 2016, when MGM fully acquired his United Artists company. His former United Artists co-owner Roma Downey is President of LightWorkers Media, which is now the “faith and family division of MGM Television” [9].

Current Releases

How To Be Single [14]

MGM has only released two films thus far in 2016, both of which were coproduced with New Line Cinema and were distributed by New Line’s parent studio Warner Brothers [10] [11]. These films were How To Be Single and Barbershop: The Next Cut, both relatively small-scale but still distinctly mainstream offerings, opening in 3,343 and 2,661 theaters respectively. How To Be Single was by far the more successful, bringing in $46.8 million in domestic box office revenue and a total of $105.3 million worldwide, against a production budget of $38 million [12]. Barbershop was less successful, though not necessarily a flop. It brought in $20.2 million in its opening weekend (April 15-17) against predictions in the high-$20 millions range. Its production budget has not been released to the press [13]. These films also show that MGM is willing to target underserved demographics with their films, with How To Be Single being described as attempting to be a “feminist rom-com” and Barbershop being specifically marketed towards African-Americans.

Upcoming Releases

MGM has three more coproductions with release dates in 2016, each with their own significant potential for profit.

Me Before You is slated for a June 3 release, and is a romantic drama abou a young woman (Emilia Clarke) who falls in love with a paralyzed man she is caring for (Sam Claflin) [15]. The plot description puts in squarely in the vein of other successful films like The Fault In Our Stars and Me and Earl and The Dying Girl, which also dealt with themes of serious illness and young adult romance. The film’s cast should also appeal to this young demographic, as Emilia Clarke is a rising star due to her role as Daenerys Targaryen on the HBO television show Game of Thrones (also in the film is Clarke’s Thrones co-star Charles Dance) [16], and Sam Claflin has gained fame from the Hunger Games series [17]. The film is based on the acclaimed novel of the same name by Jojo Moyes. MGM is co-producing the film with New Line Cinema (a division of Warner Bros.) and Sunswept Entertainment [18].

Ben-Hur is the first of MGM’s two remakes of classic films in 2016, and will be released on August 19. It’s also the more outwardly risky- its director, Timur Bekmambetov, is hardly an established hitmaker, and the only big name in its cast is Morgan Freeman in a supporting role (the title role is played by the essentially unknown Jack Huston) [19]. Still, Ben-Hur has the name recognition of one of the most famous and successful films ever made, as well as the appeal of a big-budget summer blockbuster. MGM is co-producing the film with Paramount Pictures [20].

The Magnificent Seven, set for release on September 23, is a remake of the classic John Sturges Western starring Steve McQueen and Charles Bronson, itself a remake of Akira Kurosawa’s legendary Seven Samurai. The film is being directed by Antoine Fuqua (Training Day, Southpaw), and stars Denzel Washington, Chris Pratt, and Ethan Hawke, among others [21]. That combination of commercially successful director and all-star cast is a solid predictor for the film’s financial success. Pratt, especially, has been a major draw at the box office, headlining such hits as Guardians of the Galaxy and Jurassic World [22]. MGM is co-producing the film with Columbia Pictures, a subsidiary of Sony Pictures [23].

MV5BMTM4ODI5MjA2N15BMl5BanBnXkFtZTcwODUwODk1OQ@@._V1_UY317_CR0,0,214,317_AL_

Michael B. Jordan [28]

In Development

Future projects of MGM’s include a recently announced reboot of the Tomb Raider series, which they will coproduce with Warner Bros [24] (Daisy Ridley, star of Star Wars: The Force Awakens, has been confirmed as being in talks to star in the series) [25]. This would be the newest in a succession of recent MGM coproductions with Warner Bros., including films like the Hobbit trilogy and Creed and its upcoming sequels [26]. Other future MGM productions include a remake of the 1968 heist thriller The Thomas Crown Affair with Creed star Michael B. Jordan [27].

Conclusion

It’s not clear whether MGM will make a return to producing or distributing films by themselves, or whether they will continue serving only in a co-producer or co-distributor role, as they have since their bankruptcy. The studio has released progressively more films per year since the 2010 bankruptcy, climbing from one release in 2010 to seven in 2015 [29]. Metro-Goldwyn-Mayer is still a long way from their former position as the largest and most profitable movie studio in Hollywood [30], but the success they’ve had in their recent films and their continued financial growth bodes well for the future of the company.

[1] Koscis, James (November 10th, 2009). MGM Logo. James Koscis Design + Imaging. Retrieved: April 18th 2016.

[2] Ovide, Shira and Spector, Mike (November 5th, 2010). Everything You Need to Know about the MGM Bankruptcy. The Wall Street Journal. Retrieved: April 10th 2016.

[3] Investor Relations. MGM Studios. Retrieved: April 12th 2016.

[4] Lieberman, David (March 25th, 2016). MGM Board Adds $300M To Stock Repurchase Plan. Deadline. Retrieved: April 13th 2016.

[5] McNary, Dave (December 14th, 2015). Mark Burnett Named President of MGM Television. Retrieved: April 12th 2016.

[6] Today. MGM Studios. Retrieved: April 12th 2016.

[7] Today. MGM Studios. Retrieved: April 12th 2016.

[8] Today. MGM Studios. Retrieved: April 12th 2016.

[9] Today. MGM Studios. Retrieved: April 12th 2016.

[10] How to Be Single (2016)- Company Credits. IMDb. Retrieved: April 15th 2016.

[11] Barbershop: The Next Cut (2016)- Company Credits. IMDb. Retrieved: April 15th 2016.

[12] How to Be Single (2016). Box Office Mojo. Retrieved: April 10th 2016.

[13] Barbershop: The Next Cut (2016). Box Office Mojo. Retrieved: April 10th 2016.

[14] How To Be Single. IMDb. Retrieved: April 10th 2016.

[15] Titles- Me Before You. MGM Studios. Retrieved: April 17th 2016.

[16] Game of Thrones. IMDb. Retrieved: April 17th 2016.

[17] Sam Claflin. IMDb. Retrieved: April 17th 2016.

[18] Me Before You- Company Credits. IMDb. Retrieved: April 17th 2016.

[19] Ben-Hur. IMDb. Retrieved: April 18th 2016.

[20] Ben-Hur (2016)- Company Credits. IMDb. Retrieved: April 18th 2016.

[21] The Magnificent Seven. IMDb. Retrieved: April 18th, 2016.

[22] Chris Pratt. IMDb. Retrieved: April 18th, 2016.

[23] The Magnificent Seven (2016)- Company Credits. IMDb. Retrieved: April 18th, 2016.

[24] McNary, Dave (February 25th, 2016). Warner Bros. Joins MGM on ‘Tomb Raider’ Reboot. Variety. Retrieved: April 20th, 2016.

[25] Ritman, Alex (March 21st, 2016). Daisy Ridley Confirms ‘Tomb Raider’ Reboot Talks. The Hollywood Reporter. Retrieved: April 20th, 2016.

[26] McNary, Dave (February 25th, 2016). Warner Bros. Joins MGM on ‘Tomb Raider’ Reboot. Variety. Retrieved: April 20th, 2016.

[27] Kit, Borys (February 24th, 2016). Michael B. Jordan, MGM to Remake “The Thomas Crown Affair. The Hollywood Reporter. Retrieved: April 20th, 2016.

[28] Michael B. Jordan. IMDb. Retrieved: April 23rd, 2016.

[29] Metro-Goldwyn-Mayer: Completed. Movie Insider. Retrieved: April 23rd, 2016.

[30] Metro-Goldwyn-Mayer, Inc. Encyclopedia Britannica. Retrieved: April 23rd, 2016.

Principles & Practices

Website by the students of TRF235

Monthly Archives: February 2016

Time Warner Cable

AT&T/DIRECTV

Image

Company

Key Executives

Online Content

AT&T Restructuring

YouTube

The Founders

Current Key Executives

YouTube Overview & History

Finances

YouTube Red

A Trip To Unicorn Island

Dance Camp

Scare PewDiePie

Lazer Team

The Future

Live and 360 Video

Works Cited

Netflix

Hulu

Weinstein Company

Relativity Media

RELATIVITY MEDIA

9242 Beverly Blvd #300, Beverly Hills, CA

http://relativitymedia.com

Paramount Pictures- Julia Dorin

MGM