iHeartMedia

Posted on February 18, 2016 by Clelia Ryan

iHeartMedia Logo -Source iheartmedia.com

Headquarters

iHeartMedia, Inc.
200 East Basse Road
San Antonio, Texas 78209-8328

Corporate Structure

Bob Pitman: Chairman and CEO [3]

Richard J. Bressler: President, CFO and COO [3]

Wendy Goldberg: Executive VP & Chief Communications Officer [3]

John Sykes: President of Entertainment Enterprises [3]

About

[source – Electro Area Youtube Channel]

iHeartMedia has become a major force in the mass media industry. It was founded under Clear Channel Communications when they purchased their first radio station in 1972. Today, iHeartMedia Inc. is the parent company of iHeartMedia Capital I, Clear Channel Outdoor Holdings (CCO) as well as iHeartMedia (IHRT) [14].

iHeartMedia has the largest impact of any media platform in America, reaching 245 million monthly listeners through radio. Their reach expands to 150 different markets and ownership of 850 stations. iHeartRadio is a digital platform to listen to all iHeartMedia stations [1]. The company proves to be very successful in the digital radio space. In 2014, Clear Channel Media formally changed its name to iHeartMedia. CEO Bob Pittman states, “The new name will reflect the company’s multi-platform presence and ability to embrace innovation and new technology” [9]. This name change allows the company to align itself with the iHeartRadio name that consumers are familiar with. iHeartRadio is responsible for many live music events throughout the year, such as the Jingle Ball national tour, iHeartRadio Music Festival and iHeartRadio Awards.

Radio

Radio is a still huge media outlet and continues to reach 91% of Americans ages 12+ each week [23]. As of January 2016, iHeartRadio has 80 million register users and total listening hours grew by 30% [18]. iHeartRadio has coined deals with some of the most well known on-air personalities such as Ryan Seacrest and Elvis Duran of New York’s Z100. Seacrest hosts of LA’s number one morning stations, 102.7 KISS-FM. He also hosts nationally syndicated programming with the broadcasts of On Air with Ryan Seacrest and American Top 40 with Ryan Seacrest [16].

Ryan Seacrest [16]

The iHeartRadio website and app provides “Live Radio“, allowing listeners to listen live to over 858 stations. They also provide “For You“, a feature that suggests stations based on the users preferred selection of genres. Finally, “Artist Radio” is a custom made station with songs by an artist selected by the listener and related music [17].

Right Here, Right Now: Financial Woes

Bloomberg’s Lucas Shaw Reports on iHeartMedia’s Debt [20]

Click here to view a Bloomberg video summarizing iHeartMedias debt crisis [20].

Recently, iHeartMedia has been making headlines for their massive debt reported at the end of 2015. The company is reported to have approximately $20.6 billion of debt [2]. In 2008 the company was bought by private equity firms Bain Capital Partners LLC and Thomas H. Lee Partners for $28 billion in a leveraged buyout. The buyout came during the economic recession and it was expected that in the coming years iHeartRadio would profit greatly [10]. However since 2008, iHeartMedia has been battling to pay off debt.

In response to the news, it was announced on March 8th that iHeartMedia Inc. hired Moelis & Co. as a financial advisor [4].

Also on March 8th, many bondholders became displeased with iHeartMedia’s executive decision to move $500 million in assets to a subsidiary. As a result bondholders filed notices of default. These bondholders argue that in transferring their shares of Clear Channel Outdoor Holdings Inc. to Broader Media LLC, iHeartMedia violated debt agreements. This was done in an attempt to clear up some of their massive debt [5].

In a press release issued on March 8th, iHeartMedia announced they filed a lawsuit in State District Court in Bear County Texas to prove their transfer of shares was done legally [6]. On behalf of the company, Chief Communications Officer Wendy Goldberg states, “We believe our recent contribution of Clear Channel Outdoor Holdings Inc. stock to our subsidiary Broader Media LLC constituted a permitted investment under, and fully complied with, our financing agreements” [5].

On March 10th, iHeartMedia was granted a temporary restraining order which rescinds the default noticed filed against the company. Moving forward, iHeartMedia and the bondholders, who issued the default notices, will have a court hearing before a judge. This hearing may determine how iHeartMedia will move froward in paying off their $20.6 billion in debt [11].

The trial regarding this matter is set to take place in a Texas state court on May 16, 2106. The shares in question are valued at $1.2 billion [12] .

Click for updating stock prices [19]

On April 25, 2016. iHeartMedia Inc.’s stock (IHRT) closed at $1.18 per share. This is a major drop in price compared to June 2015, when it was selling for $7.50 per share. Subsidiary, Clear Channel Outdoor Holdings also saw a drop in stock price from a year ago. It closed at $4.88 as opposed to its price of $11.21 seen in April 2015 [19]. In their Fourth Quarter and Full Year Report iHeartMedia stated a 3% revenue increase to $1.8 billion [18].

iHeartMedia’s Place in Political Advertising

Brendon DelToro [22]

On February 16th, iHeartMedia announced Brendon DelToro has been appointed to Vice President For Political Strategy. DelToro will aid in managing iHeartMedia’s relations with candidates and other political organizations. This year the company plans to have an iHeartMedia Campaign 2016 Command Center to keep track of over 2,000 elections in 150 markets. Brendon’s role will be to merge the political sales teams across iHeartMedia’s broad market reach [7]. The goal of iHeartMedia’s engagement with the political campaign is to allow political and advocacy groups to have access to iHeart’s 80 million users.

iHeartMedia is also planning on capitalizing on the 2016 election by having advertisers pay to place ads via radio rather than the traditional TV route. Candidates strive to target specific demographics, which is getting more difficult to do through traditional TV. Digital radio platforms, specially iHeartMedia can provide campaigns with data that is relevant for targeting the key audiences [8].

Continuing Their Place in the Entertainment Industry

Despite their well known debt and pending court hearings, iHeartMedia continues to hold their place in the music and entertainment industry.

iHeartMedia celebrated their 3rd annual iHeartRadio Music Awards on April 3rd. This award show is primarily driven by fans and users of the iHeartRadio app to vote for nominees.

iHeartRadio Music Awards Promotional Ad [13]

On social media the iHeartRadio Awards generated 115 billion impressions. This number includes the promotional period of the show throughout the television broadcast. This massive number of engagements far exceeds that of other popular award shows such as the MTV Video Music Awards. Chris Williams, Chief Product Officer credits the shows success to the fan engagement and radio personalities involvement [13].

Photo from the 2015 iHeartRadio Pool Party [15]

This summer, iHeartRadio will also be hosting their iHeartRadio Summer Pool Party. Tickets to this exclusive event at Miami’s Fontainebleau will be given to listeners across the country through on-air contests. This years lineup will feature Kygo, Flo Rida, DNCE and Jason Derulo [15]. Seasonal concert events such as the iHeartRadio Pool Party and Jingle Ball Tours are proven to boost listenership across iHeartRadio stations nationwide.

Summary

iHeartMedia is a well respected entertainment company but struggles with being profitable, due to its burdensome debt servicing obligations. Looking ahead, iHeartMedia’s debt crisis and battle with bondholders will have an effect on the financial future of the company. Overall, iHeartMedia remains competitive in the digital radio industry against companies such as Spotify and Pandora providing similar services.

Works Cited

[1] iHeartMedia Corporate. iheartmedia.com, Retrieved April 23, 2016

[2] “The Largest U.S. Radio Operator Is Saddled With $20 Billion Debt”. bloomberg.com, Retrieved April 23, 2016

[3] iHeartMedia Our Team. iheartmedia.com, Retrieved April 23, 2016

[4] “iHeartMedia hires Moelis to tackle debt burden”. newsdaily.com, Retrieved April 23, 2016

[5] “iHeartMedia, Lenders in Fight Over Disputed Share Transfer”. bloomberg.com, Retrieved April 23, 2016

[6] “iHeartMedia, Inc. Responds to Lender Group Allegation”. Businesswire.com, Retrieved April 23, 2016

[7] “iHeartMedia Names Brandon DelToro Vice President for Political Strategy”. iheartmedia.com, Retrieved April 23, 2016

[8] “Inside iHeartMedia Strategy to Steal Presidential Ad Dollars From TV” adage.com, Retrieved April 23, 2016

[9] “Clear Channel Rebrands As iHeartMedia” adage.com, Retrieved April 23, 2016

[10] “Coming, the collapse of radio’s iHeartMedia”. Medialifemagazine.com, Retrieved April 23, 2016

[11] “Court Rescinds Default Notices Against iHeartMedia”. Insideradio.com, Retrieved April 23, 2016

[12] “iHeartMedia Default Fight Set to Go to Trial” wsj.com, Retrieved April 23, 2016

[13] “2016 iHeartRadio Music Awards Social Engagement Captures 115 Billion Impressions Across U.S.” broadwayworld.com, Retrieved April 23, 2016

[14] “iHeartMedia Loses A Director, Gets More Time To Resolve Its Massive Debt Problems” billboard.com, Retrieved April 23, 2016

[15] “iHeartRadio Is Throwing Miami’s Biggest Pool Party of the Year With Flo-Rida, Kygo and More” miaminewtimes.com, Retrieved April 23, 2016

[16] “Ryan Seacrest Inks New Mega Deal with iHeartMedia” hollywoodreporter.com, retrieved April 23, 2016

[17] iHeartRadio. iheartradio.com, retrieved April 23, 2016

[18] iHeartMedia Investors. iheartmedia.com, Retrieved April 23, 2016

[19] iHRT Stock Price. Google.com/ihrt+stock+price, Retrieved April 23, 2016

[20] “Has iHeartMedia Defaulted on Debt?” uk.finance.yahoo.com, Retrieved April 23, 2016

[21] iHeartMedia Sizzle Reel. https://www.youtube.com/channel/UC6pQXJ0jHO8P9ih4rPRh8Kg, Retrieved April 24,2016

[22] Photo Brendon DelToro. allaccess.com, Retrieved April 24, 2016

[23] “Why Radio Fact Sheet”. rab.com, Retrieved April 24, 2016

Emmis Communications – Jake Kalmenson

Posted on February 18, 2016 by smwarren

Emmis Communications

by Jake Kalmenson

1 Emmis Communications’ Logo

Emmis Communications

40 Monument Circle, Suite 700

Indianapolis, IN 46204

http://www.emmis.com

About

Emmis Communications is a media conglomerate based in Indianapolis that specializes in broadcast radio and publishing. The company holds 24 radio stations in six different markets, as well as six magazine publications in five different markets. The company was established in 1979 when Jeff Smulyan purchased WSVL, a radio station in Shelbyville, Indiana. After a few years of struggling to get the operation going, WENS was finally launched, penetrating the market as an adult contemporary format—the station was nearly an automatic hit. One significant member of the newly launched radio station was David Letterman who was just entering broadcast as a career. His fast appeal as a personality contributed mightily to the overall success of the radio station. With the success of the companies first acquisition, Smulyan used his profits and reinvested them into the company, eventually turning Emmis Communications into a multi-media company that today ranks among the top 10 in the radio industry in the United States. 2

3 Jeff Smulyan – Founder and Board Member – Emmis Communications

Jeff Smulyan serves as the founder and Chairman of the Board of Emmis Communications. In 1989, Smulyan and a group of investors purchased the Seattle Mariners. Only three years later they decided to sell it. Evidently, Jeff isn’t solely a radio guy, he has immersed Emmis into the magazine publication industry as well as the digital marketplace. He graduated from the University of Southern California with a B.A. in history and Telecommunications, as well as earned a Juris Doctor degree from the USC Law School. 4

5 Rick Cummings – President of Programming

Rick Cummings joined the media company as its first program director for WENS-FM. He later went on to become the national program director for Emmis Communications in 1984. Later on in 2002, he became the President of Programming.6

RADIO: Emmis has a variety of stations in a multitude of markets, however a few in particular help bring in the majority of its revenues. These include its two flagship stations: Power 106 and Hot 97

Power 106

7 Power 106

Power 106, Emmis’ Los Angeles-based hip-hop station, is a huge brand and has been the number one urban-hit station in LA for years. The station serves as a portal to debut hits as well as break new artists as millions of people tune in each day. For years KPWR (Power 106) had “Big Boy” host the morning show. However, last year the huge radio company Clear Channel (IHeart Radio) entered the market as a clear competitor with the launch of 92.3. The largest radio conglomerate used its leverage to strip Power 106 of its long-time morning show host by offering him a bigger contract. Since Big Boy left KPWR, the station has seen a serious dip in its ratings: the company moved from #5 in the market to #16 by the end of the year. 8

9 Kanye West at Power 106

Hot 97

10 Hot 97 Logo

WQHT or “Hot 97” became the first all hip-hop station in 1992 when the format changed from dance to hip-hop and R&B. This change was in response to the station experiencing an all-time-low in ratings. Ever since, the station has been a powerhouse, trendsetting and defining hip-hop culture in the number one radio market, New York City. Hot 97’s principal demographic is 18-34 year olds. The station has facilitated the breaking of big time artists including: Jay Z, Nas, Chris Brown, Ne-Yo and 50 Cent.11

Concerts

Every year Emmis Communication takes advantage of its powerful position in the music industry by hosting multiple music festivals. In Los Angeles, Power 106 puts on the concert ‘PowerHouse,’ which features many of the top hip-hop artists in the world. Additionally, the company’s New York hip-hop radio station ‘Hot 97’ hosts the music festival “Summer Jam” which takes place at MetLife stadium in New York City. In recent news, Emmis Communications has expanded its ‘Summer Jam’ to Tokyo.

12 Summer Jam Takes Tokyo

Financial

In the financial report released November 30th, 2015, Emmis Communications released its net revenues per sector of the company. Evidently, radio revenues were the highest at $132,789,000 nine months into the year. As compared to last year, the company is down almost $5 million in revenue. Revenues from publishing remained steady: only dropping in the $10,000 range. What stands out most is that the company generated a significantly higher amount in the field of ‘Emerging Technologies,’ which refers to online radio and digital advertising. In 2014, the company saw $318,000 in revenue, whereas in 2015 the company saw almost $1 million in revenue: $985,000.13

14 Financial Results for Q3

Emmis Communications or (EMMS) currently sells for 58 cents per share. Over the last month (since March 28th) the company’s stock price has fluctuated within a range of 10 cents. It has hit a high of .65 cents per share, meanwhile hitting a low of 55 cents per share.

15 EMMS Stock – Month

As shown below, the price has significantly wavered since 2012: it hit a high of over $3 per share, meanwhile also hitting a low of its current state, .58 cents per share. The company’s owner has attributed its fallen stock price to the recent struggles the company has faced in Los Angeles as well as the general consensus that radio is a declining industry.

16 EMMS Stock – Year

Recent News

Due to the difficulties the company has seen with its flagship station KPWR, it has taken action to cut costs by laying off employees, cutting executive salaries and lowering its budget. After experiencing a weak fiscal quarter, the company laid off 32 employees, cutting about 3% of its workforce. In addition to the layoffs, the company is also shaving the salaries of all its senior executives. In an article published by The Indy Star, the company is looking to cut “$7.5 million from its budget, as well as $5.3 million from its radio properties.” Additionally, Smulyan decided not to renew the contract of Mike Corbin–someone who had worked for the company for nearly 10 years, as well as Deon Levingston, the company’s New York general manager. 17

What’s to Come

While the situation in Los Angeles as well as the decline of its stock price might suggest a variable future for the company, many believe that the low valuation is a result of an overreaction to a declining radio industry. While studies show that more and more people are using streaming services to consume music, there continues to remain strong evidence showing that radio is still the most dominant medium for music consumption. According to the Nielsen Total Audience Report, AM/FM radio still reaches over 90% of all Americans and 223 million people each week.18

Sources:

“Emmis Communications.” Emmis Communications Home Comments. N.p., n.d. Web. 25 Apr. 2016.
“History of Emmis Communications.” History of Emmis Communications. N.p., n.d. Web.
“Jeff Smulyan – Chairman, CEO, and Founder.” Emmis Communications. N.p., n.d. Web. 25 Apr. 2016.
Ibid.
“Rick Cummings – Emmis Communications.” Emmis Communications. N.p., n.d. Web. 25 Apr. 2016.
Ibid.
“Power 106 | Where Hip Hop Lives.” Power 106 | Where Hip Hop Lives. Emmis Communications, n.d. Web. 25 Apr. 2016.
“Emmis Radio: Power 106 KPWR – Los Angeles.” Emmis Communications. N.p., n.d. Web. 25 Apr. 2016.
“Kanye West – Awesome – [LEAKED MUSIC].” Power 106. N.p., n.d. Web. 25 Apr. 2016.
“HOT 97 | Where Hip Hop Lives.” HOT 97 | Where Hip Hop Lives. N.p., n.d. Web. 25 Apr. 2016.
“RADIO: New York – HOT 97 WQHT – Emmis Communications.” Emmis Communications. N.p., n.d. Web. 25 Apr. 2016.
“Hot 97’s Summer Jam Takes Its Talents To Tokyo.” Vibe. N.p., 30 Mar. 2016. Web. 25 Apr. 2016.
Newton, R. Emmis. “801.” The Mathematical Gazette 12.178 (1925): 475. Summary of Financial Results. Web.
Ibid.
“Emmis Communications Corporation.” : NASDAQ:EMMS Quotes & News. Google Finance, n.d. Web. 25 Apr. 2016.
Ibid.
Briggs, James. “Emmis Communications Confirms Layoffs.” Indystar. Indystar, n.d. Web.
“STATE OF THE MEDIA: AUDIO TODAY 2014.” Nielsen. N.p., n.d. Web.
Contents, Table Of. EMMIS COMMUNICATIONS CORPORATION (n.d.): n. pag. Emmis Communications 10-K. Emmis Communications. Web.
“Emmis Announces International Expansion of HOT 97 Summer Jam.” PR Newswire. PR Newswire, n.d. Web.
“Emmis Communications Income-statement 2016-Q3.” Emmis Communications Quarterly Income Statement 2016 Q3, 2016 Q2. Amigo Bulls, n.d. Web. 25 Apr. 2016.
“HOT 97 | Where Hip Hop Lives.” HOT 97 | Where Hip Hop Lives. Emmis Communications, n.d. Web. 25 Apr. 2016.
Owen, Laura. “Left on the Dial: With Young People Trading AM/FM for Streaming, Will Radio Find a Home in Your next Car?” Neiman Lab. Neiman Lab, n.d. Web.
“RADIO: New York – HOT 97 WQHT – Emmis Communications.” Emmis Communications. N.p., n.d. Web. 25 Apr. 2016.
“RADIO REACHES 223M LISTENERS EACH WEEK.” Inside Radio. Inside Radio, n.d. Web.
“Top Audio Companies.” : Media Ownership Database. State of the News Media, n.d. Web. 25 Apr. 2016.

CBS Radio

Posted on February 18, 2016 by Rachel Lipsitz

By: Rachel Lipsitz

CBS Radio logo [1]

Contact Information [2]

1271 Avenue of the Americas FL 44

New York, NY 10020

212.649.9600

Cbsradio.com

Key Executives [3]

Andre Fernandez, President

Scott Herman, Chief Operating Officer

Ezra Kucharz, President, Local Digital Media

Chris Oliviero, Executive Vice President, Programming

Jo Ann Haller, Senior Vice President and General Counsel

Bob Phillips, Senior Vice President and Director of Sales

Overview

CBS Radio is the nation’s number 2 radio group, including 117 stations, 26 of which are in the largest radio markets in the country. In 2015 alone, CBS radio estimated generating around $1.3 billion in revenue[4]. CBS Radio’s geographically dispersed stations serve to target many different demographics through a broad range of formats, including: rock, classic, adult contemporary, top 40, sports and country [5].

History

CBS Radio was created as a radio network in 1927. From 22 stations that started to air in 1928, the company grew to 114 stations in just a single decade and by 1932 was earning an annual profit of $3 million [6]. In the late 1940s, CBS Radio was able come out on top due to its development of long-playing records by its Columbia Records division. In 1995, Westinghouse Electric Corporation acquired CBS for $5.4 billion. In 1997, Westinghouse changed the name of his new company to CBS Corporation and moved its headquarters from Pittsburgh to New York City [7]. In 1999, entertainment conglomerate Viacom announced that it was taking over CBS in a deal worth $37 billion, but only lasted until 2005 when CBS split into two, where CBS Radio became a part of CBS Corporation under its broadcasting division [8].

Competitors

iHeartMedia logo [29]

Emmis Communications logo [30]

Entercom Communications logo [31]

CBS Radio has four direct competitors: Emmis Communications, Entercom Communications, iHeartMedia and Cumulus Media. CBS Radio competes within their respective markets for audience, advertising revenues and programming with other radio stations [9]. These company’s radio stations, which also include their online internet streaming services, compete with services like Spotify and Pandora.

Financials

CBS Interactive Stock Chart from Yahoo Finance updated April 23, 2016 at 3:30 pm [10]

CBS Corporation is a publicly traded company and on April 23, 2016, was traded at $56.59 per share, which is is down from last years price, which was $60.63 per share. Right now, the company’s stock value lies between the 52 week low of $38.51 per share and the 52 week high of $63.95 per share [11].

The majority of CBS Radio’s revenues are generated from the sales of local and national advertising [12]. In 2015, CBS Radio’s radio revenue decreased by 6% and took a $484 million write-down on the value of its FCC radio licenses [13].

Financials CBS Radio of Local Broadcasting [14]

Due to the fact that CBS Radio is a subsidiary of CBS Corporation, the financials for the radio division are combined with the financials for the local broadcasting television division.The Local Broadcasting revenues for the fourth quarter of 2015 were $719 million. CBS Radio revenues were down 5%, which reflected the continued decrease in the radio advertising marketplace [15].

CBS Sports Radio

CBS Sports Radio Logo [34]

CBS Sports Radio was launched in January 2013 and offers 24/7 national sports coverage and programming to over 330 stations, including stations in all of the top 10 markets. CBS Sports has many different programs across across multiple weekdays and weekend time periods that feature expert sports commentary by very experienced broadcasters [16].

98.5 The Sports Hub [33]

Most recently, CBS Radio’s 98.5 The Sports Hub finished first overall during the three-month winter Nielsen Audio Ratings period as sports talk continued to dominate the Boston radio market [17]. The Sports Hub earned an 11.8 share overall from the period of December 31 to March 23, which is a higher than the station got last winter, when the New England Patriots were in the SuperBowl [18].

CBS Corporation Potentially Getting Rid of Radio Division

Leslie Moonves, Chairman and CEO of CBS Corporation [35]

CBS Chairman and CEO, Leslie Moonves, recently made a public announcement about exploring other options for CBS Radio due to the fact that it is no longer the crown jewel of the company. Some of the options that Moonves is referring to is either spinning off the radio divisions as a separate company or selling the stations as a whole [19].

“We have 117 radio stations and we think that will be a great standalone company. As a standalone high-cash, relatively low-growth business, it will do really really well and it’ll do better as a standalone than part of the other divisions of CBS” [20].

-Leslie Moonves

On March 30, 2016, Andre Fernandez sent a memo to the CBS Radio staff informing them what was discussed in a meeting with Leslie Moonves, regarding the future of the company. In the memo, Fernandez tells the staff that the primary course of action by CBS Corporation is to split CBS Radio off via an IPO [21]. By making CBS Radio an IPO, the goal would be to become their own publicly traded company, which would allow the radio division to define their own operating strategy. The memo also stated that there are other options that are being explored for how the company should handle the situation: there is the possibility that CBS Radio will become part of another company [22].

Due to the fact that CBS Radio has acquired many assets throughout the decades, the company should have major tax consequences depending on how the sale of the division is structured [23].

Some Restructuring Within the Company

Karen Mateo, SVP/Communications, who has played an integral part at CBS Radio’s management division for 13 years, announced that she will be leaving the company.

Todd Cavanah was recently named the new vice president of programming for CBS Radio Chicago. Cavanah will be in charge of program oversight for the six Chicago radio outlets and will be in charge of identifying opportunities to improve ratings, which are directly connected to each station’s ability to generate ad revenue [24].

Chad Fitzsimmons was promoted to VP of Music Initiatives at CBS Radio. His new position will put him in charge of creation and execution of CBS Radio’s concert series, which includes We Can Survive and The Night Before [25].

“The exponential growth and critical acclaim that our national events have experienced over the last few years is a direct result of Chad’s vision and passion for the unique and powerful marriage of radio and the music industry” [26].

-Chris Oliviero

2016 Regional Edward R. Murrow Awards

Edward R. Murrow Awards logo [36]

At the 2016 Regional Edward R. Murrow Awards, The Radio Television Digital News Association announced the winners, where 11 respected CBS Radio stations received a total of 25 awards. Stations in San Francisco and Philadelphia were honored with the Overall Excellence award for Large Market Radio stations [27].

“It brings me great pride to see our stations recognized for their continued excellence in journalism. Telling the stories that mean something to the local communities we serve has been the hallmark of CBS Radio for decades, and that long standing commitment to our audience is the foundation upon everything we do as broadcasters” [28].

-Leslie Moonves

Future

Considering the recent announcement that CBS Radio is thinking about becoming an IPO, the future of the company can be going in a few different directions. Throughout the coming weeks and months, people will be keeping a close eye on what Leslie Moonves and Andre Fernandez decide to do with the company, and how much of their decision they decide to share with the public and with their investors. The fact that CBS Radio is making new management changes gives hope to many that the structure of the company should not change much if they decide to become an IPO, but watching what happens in the future with CBS Radio and CBS Corporation will be interesting.

Sources

CBS Radio: Houston @ Dave Farra. Retrieved April 24, 2016.
CBS Radio Contant Information. Retrieved April 24, 2016.
CBS Radio Executives. Retrieved April 24, 2016.
Fitch Expects CBS Radio To Remain Sound. Retrieved April 24, 2016.
CBS Corporation, Investor Relations, SEC Filings. Page 10. Retrieved April 24, 2016.
Erickson, Harold. January 26, 2016. CBS Corporation. Britannica. April 24, 2016.
Columbia Broadcasting System. Retrieved April 24, 2016.
Columbia Broadcasting System. Retrieved April 24, 2016.
CBS Corporation, Investor Relations, SEC Filings. Page 11. Retrieved April 24, 2016.
CBS Interactive Stock Chart. Retrieved April 23, 2016.
CBS Historical Stock Quotes. Retrieved April 24, 2016.
CBS Corporation, Investor Relations, SEC Filings. Page 11. Retrieved April 24, 2016.
Kelps, Kevin. April 10, 2016. Radio Dials Up Doubt For Stations. Crain’s Cleveland Business. April 24, 2016.
CBS Corporation, Investor Relations, SEC Filings. Page 20. Retrieved April 24, 2016.
CBS Corporation, Investor Relations, SEC Filings. Page 20. Retrieved April 24, 2016.
CBS Sports Radio, About Us. Retrieved April 24, 2016.
Finn, Chad. April 13, 2016. Sports Hub Dominates Latest Boston Radio Ratings. Boston Globe. April 24, 2016.
Finn, Chad. April 13, 2016. Sports Hub Dominates Latest Boston Radio Ratings. Boston Globe. April 24, 2016.
Wagoner, Richard. March 25, 2016. Is CBS Getting Rid of its Entire Radio Division? Daily News. April 24, 2016.
Moonves: CBS Radio Will Do Better On Its Own. Retrieved April 24, 2106.
Andre Fernandez Addresses the Future of CBS Radio in an Email to Staffers. Retrieved April 24, 2016.
Andre Fernandez Addresses the Future of CBS Radio in an Email to Staffers. Retrieved April 24, 2016.
Morgan, Richard. March 31, 2016. CBS Plans to Spin Off Radio Business With an IPO. NY Post. April 24, 2016.
Lazare, Lewis. April 21, 2016. CBS Radio Adds New Management Layer to Chicago Programming Ranks. Chicago Business Journal. April 24, 2016.
CBS Radio Promotes Fitzsimmons. Retrieved April 24, 2016.
Chad Fitzsimmons Elevated to VP/Music Initiatives at CBS Radio. Retrieved April 24, 2016.
Ross, Kevin. April 19, 2016. CBS Radio Stations Honored with 25 2016 Regional Edward R. Murrow Awards. Radio Facts. April 24, 2016.
CBS Radio, Press Room. Retrieved April 24, 2016.
iHeartMedia Logo. Retrieved April 25, 2016.
Emmis Communications Logo. Retrieved April 25, 2016.
Entercom Communications Logo. Retrieved April 25, 2016.
Cumulus Media Logo. Retrieved April 25, 2016.
98.5 The Sports Hub Logo. Retrieved April 25, 2016.
CBS Sports Radio Logo. Retrieved April 25, 2016.
Leslie Moonves Executive Picture. Retrieved April 25, 2016.
Edward R. Murrow Awards Logo. Retrieved April 25, 2016.

Viacom

Posted on February 18, 2016 by Zaynah Anderson

About the Company

Viacom is an American global mass media company. The company and its content reach audiences in over 160 countries with content produced nationally and internationally [2]. It is the sixth largest broadcast and cable company as far as revenue but has the largest portfolio of ad-supported cable networks in the United States. Viacom’s cable networks are among some of the most popular and most watched channels by families across the world. This includes BET, VH1, MTV, TV Land, Comedy Central, Spike TV, Nickelodeon including all of its spin-offs, amongst many others [3]. In fact,Viacom has been rated the number one family cable network for numerous years.

Key Executives

Phillippe Dauman serves as President, CEO, and the Executive Chairman [4].

Wade Davis serves as Executive Vice President and CFO.

Thomas E. Dooley serves as Chief Operating Officer.

Sumner M. Redstone [5], is a majority owner of the company and also serves as Chairman Emeritus of the Board of Directors. However, his unstable health conditions [6] have decreased his ability to be present in the flesh during meetings as he is currently struggling with physical and speech mobility [7].

The Deal on Dish

Tensions between Viacom and Dish, a satellite-TV provider, had been brewing for quite a while before the issue was publicized nearing the Wednesday, April 20, 2016, deadline for a new carriage contract [8]. The root of the problem was a supplier-distributor disagreement in which Dish felt the carrier fees being charged by Viacom was unreasonable and overpriced. They stated that they only wanted to sign a contract that took into account the significant changes in the TV landscape and the way media is consumed. The company threatened to drop Viacom’s channels if Viacom didn’t compromise on the new deal [9].

Viacom however, suggested that they had offered Dish a best-of-its-kind deal for its very popular channels and explained that they have extended the deadline multiple times for Dish [10]. Refusal to come to an agreement would have resulted in a blackout of Viacom channels at midnight-eastern standard time. This would have been bad news for Viacom who has suffered low viewership with media being consumed in non-linear ways and would certainly impact ad revenue if it lost Dish’s 14 million viewers. The situation caused Viacom stock to drop nearly 10% on Tuesday with the fate of Viacom and Dish’s partnership still in the air [11]. However, the share prices increased the next day after CEO Charlie Ergen hinted in a conference call on Wednesday, that he would be interested in pursuing a new deal with Viacom should the company adhere to their conditions [13].

KEEPVIACOM.COM

In efforts to boost awareness on this issue, Viacom launched a website under the name www.keepviacom.com. The site broadcasted Dish’s plan to get rid of a total of 18 Viacom channels and allowed concerned visitors to learn more about the situation under a tab called “Get The Facts.” Other important tabs featured on the web page included “Shows You Will Miss” outlining viewer favorites and other shows that would have been gone forever.

One of the most important features on the site was a link titled “What People Are Saying” which provided a live feed from a discussion board of distressed Dish users and other Viacom supporters that spoke out against Dish threatening to drop the channels. Many Dish users openly expressed willingness to leave the cable provider should they drop the Viacom channels. The website also provided direct access to Dish’s Facebook page encouraging viewers to “make their voice heard” by posting on the page and urging them to join in the conversation on both Facebook and Twitter in which the hashtag #KeepViacom was trending. People of all ages used the hashtag to support Viacom and prevent Dish network from dropping the channels. The site made sure users of Dish network were able to voice their opinions by including Dish’s phone number on the digital protest site along with tips on how to get through to the company via phone [14].

Aftermath

Within the 24 hours leading up to the fate of Viacom and Dish’s relationship, hundreds of thousands passionate consumers reached out to Dish. Their voices proved to have been heard as the network did not drop the channels. Instead, Dish rose to the occasion meeting the deadline and renewing a multiyear deal with Viacom. The “keep Viacom” site has since been taken down, replaced by a message expressing gratitude and assuring users that an agreement with Dish had been met [15].

Fortunately, an agreement was reached putting both Viacom and Dish in a better position. The renewed multi-year deal includes plans for bringing select Viacom content onto Sling TV, Dish’s single and multi-stream service, as well as keeping all Viacom channels available for Dish subscribers [17].

Viacom in International Markets

Viacom has made an imprint in international markets through both acquisitions and expansions. Viacom’s acquisition of channel 5 in the United Kingdom has contributed to the company’s continued growth with a 20% growth in operating income in the country. With the acquisition of channel 5, Viacom was able to garner 23 others crucial networks allowing the company to gain access to 100% of the UK’s television audience. Viacom also has assets in India’s television market [18]. With a recent launch of VOD digital streaming service VOOT that gives India exclusive rights to consume over 17,000 hours of content through the service that is available on Android, and iOS devices for free with lots of kid-friendly content from Nickelodeon and MTV readily accessible [20].

Financial Plans

Despite ratings revealing that Viacom may be experiencing trouble with viewership, considering the decrease in ad revenue by 1% year over year and a decrease in overall revenue by 6% year over year, the CEO Phillippe Dauman assures everyone that Viacom will bounce back soon and see a growth in both ad revenue and overall ratings. They are making strides to accomplish this by using other tools of measurement aside from Nielsen in order to get advertisers acclimated with new ad formats. In addition to allowing them to make use of other platforms more frequently used to consume Viacom content such as laptops and tablets. One such tool is a service called Vantage which allows advertisers to place their ads more accurately along a variety of different platforms using varied consumer data as a catalyst [22].

Social Media

Viacom maintains communication with fans and investors via social media outlets such as Facebook in which the overall company has close to 150,000 likes and Twitter where it has over 23,000 followers. These numbers do not include the subscriber base for Viacom’s individual channel networks such as MTV and Nick for example, in which the numbers would soar much higher.

Forecast

Looking ahead Viacom’s future looks promising [23]. Many of its networks have plans for renewing shows for additional seasons after audience viewership numbers soared. The networks have also green-lighted lots of original content that will be introduced that should certainly garner some positive feedback. As of Friday, April 22, 2016, Viacom’s share price is $43.78, an increase of 2.87% [24]. Leading into May, the stock is now at the highest it’s ever been since the beginning of February.

Viacom’s 2nd Quarter Earnings Conference call is set to release on April 28, 2016, which will provide additional information into the company’s future and finances [25].

Sources

[2] “ABOUT VIACOM.” Viacom. N.p., n.d. Web. 15 Apr. 2016. http://www.viacom.com/about/pages/default.aspx.

[3] “Viacom Brands.” Viacom. N.p., n.d. Web. 15 Apr. 2016. https://www.viacom.com/brands/pages/default.aspx.

[4]”SENIOR MANAGEMENT.” Viacom. N.p., n.d. Web. 15 Apr. 2016. http://www.viacom.com/about/pages/seniormanagement.aspx#.

[5] “BOARD OF DIRECTORS.” Viacom. N.p., n.d. Web. 15 Apr. 2016. http://www.viacom.com/about/pages/boardofdirectors.aspx?bioid=1.

[6] Ackner, Daniel. “Inside the Viacom “Brain Drain”” Vanity Fair. N.p., n.d. Web. 13 Apr. 2016. http://www.vanityfair.com/news/2016/04/inside-the-viacom-brain-drain.

[7] Person, and Vanity Fair Magazine. “Read Sumner Redstone’s E-mails About His Succession Plans.” Vanity Fair. N.p., n.d. Web. 3 Feb. 2015. http://www.vanityfair.com/news/2015/05/sumner-redstone-retirement-health-viacom-future.

[8] Ingram, Mathew. “Dish vs. Viacom Fight Is All About the Shifting Balance of Power in TV.” Fortune Dish vs Viacom Fight Is All About the Shifting Balance of Power in TV Comments. N.p., 19 Apr. 2016. Web. 20 Apr. 2016. http://fortune.com/2016/04/20/dish-vs-viacom/.

[9] James, Meg. “Dish Network CEO Charlie Ergen Threatens to Permanently Drop Viacom Channels.” Los Angeles Times. Los Angeles Times, 20 Apr. 2016. Web. 20 Apr. 2016. http://www.latimes.com/entertainment/envelope/cotown/la-et-ct-dish-charlie-ergen-viacom-dispute-20160420-story.html.

[11 ]Lieberman, David. “Viacom Warns That Its Networks May Go Dark On Dish Network.” Deadline. N.p., 19 Apr. 2016. Web. 20 Apr. 2016. http://deadline.com/2016/04/viacom-dish-contract-negotiations-impasse-1201740218/.

[12] “Charlie Ergen.” About DISH. N.p., n.d. Web. 20 Apr. 2016. http://about.dish.com/leadership/executive-leadership/charlie-ergen.

[13] Littleton, Cynthia. “Viacom Stock Plunges as Dish Renewal Fight Heats Up.” Variety. N.p., 19 Apr. 2016. Web. 20 Apr. 2016. http://variety.com/2016/tv/news/viacom-dish-stock-drop-renewal-deadline-1201756655/

[14] “Viacom and DISH Agree to Multi-Year Renewal.” Viacom. N.p., 21 Apr. 2016. Web. 22 Apr. 2016. http://news.viacom.com/press-release/viacom/viacom-and-dish-agree-multi-year-renewal.

[15] Frankel, Daniel. “Dish Deal Shows Viacom Channels Haven’t Lost Their Value, Analysts Say.” FierceCable. N.p., 22 Apr. 2016. Web. 22 Apr. 2016. http://www.fiercecable.com/story/dish-deal-shows-viacom-channels-havent-lost-their-value-analysts-say/2016-04-22.

[21] “1st Quarter ’16 Earnings Presentation.” (n.d.): n. pag. Viacom. 9 Feb. 2016. Web. 1 Mar. 2016.

[17] Perez, Sarah. “Streaming Service Sling TV Will Add MTV, Comedy Central, Nick Jr & More, following Viacom deal.” TechCrunch. N.p., 22 Apr. 2016. Web. 23 Apr. 2016. http://techcrunch.com/2016/04/22/streaming-service-sling-tv-will-add-mtv-comedy-central-nick-jr-more-following-viacom-deal/.

[18] Pelts, Shirley. “Welcome to Market Realist.” India: Why Is It Viacom’s Valuable Asset? N.p., 24 Mar. 2016. Web. 1 Apr. 2016. http://marketrealist.com/2016/03/india-viacoms-valuable-asset/?utm_source=yahoo&utm_medium=feed&utm_content=read-next-a&utm_campaign=viacoms-acquisition-channel-5-stronghold-uk.

[20] “Voot Video-on-Demand Service Launched in India.” NDTV Gadgets360.com. N.p., 30 Mar. 2016. Web. 1 Apr. 2016. http://gadgets.ndtv.com/tv/news/voot-video-on-demand-service-launched-in-india-819555.

[21] “1st Quarter ’16 Earnings Presentation.” (n.d.): n. pag. Viacom. 9 Feb. 2016. Web. 1 Mar. 2016.

[23] Lazaroff, Leon. “Viacom Could Go Higher Even after Dish Deal Removes Overhang.” TheStreet. N.p., 22 Apr. 2016. Web. 24 Apr. 2016. http://www.thestreet.com/story/13541284/1/viacom-could-go-higher-even-after-dish-deal-removes-overhang.html

[24] “Viacom, Inc.” Yahoo! Finance. N.p., n.d. Web. 22 Apr. 2016. http://finance.yahoo.com/q?uhb=uh3_finance_vert&fr=&type=2button&s=viab.

[25] “Events & Presentations.” Viacom Inc. -. N.p., n.d. Web. 23 Apr. 2016. http://ir.viacom.com/eventdetail.cfm?eventid=170845.

Pictures (not cited above):

[1] “Voot Image Logo.” Viacom18. N.p., n.d. Web. 24 Apr. 2016. http://www.viacom18.com/viabuzz/viacom18-digital-ventures-voot/.
[2] “Viacom Brands Logo. “Whoever Controls the Media, Controls the Mind.” N.p., 25 Dec. 2014. Web. 24 Apr. 2016. http://annesmedia.blogspot.com/.

21st Century Fox

Posted on February 18, 2016 by Jamie McCoy

[1] 21st Century Fox Logo

COMPANY

21^st Century Fox is a world premier portfolio of cable, broadcast, film, pay TV and satellite assets extending across six continents. With an audience of more than 1.8 million subscribers whom speak approximately 50 local languages daily, 21^st century Fox is a home to global portfolio cable and broadcasting networks and properties, including FOX, FX, FXX, FXM, FS1, Fox News Channel, Fox Business Network, FOX Sports, FOX Sports Networks, National Geographic Channels, STAR India, 20 local television stations in the U.S. and more than 300 international channels.[2]

BACKGROUND

Rupert Murdoch founded 21^st Century Fox on June 28, 2013 when he decided to split the company’s predecessor, News Corporation, into two separate media properties. Murdoch believed the split would “unlock the true value of both companies and their distinct assets, enabling investors to benefit from their separate strategic opportunities,” which he also proposed would allow for each division to gain more focused management. 21^st Century Fox primarily deals in the film and television industries.

KEY EXECUTIVES

[3] Rupert Murdoch: CEO and Chairman

[4] Lachlan K. Murdoch: Executive Co-Chairman

[6] James Murdoch

[5]Chase Carey

FINANCIALS

In the 2015 fiscal year, the cable networks business assisted in driving the performance of 21st Century Fox by gaining double digits in affiliates as well as advertising revenue. At its core, the sports and news networks have assisted in the development and growth of 21st Century Fox this year. They have faced a few concerns such as change in foreign currency exchange rates as well as interest rates and stock prices, however, they are working to manage these potential risks and concerns. There is currently no 2016 fiscal year report. [7]

BUDGET CUTS

Due to financial troubles from fiscal year 2015, 21^st Century Fox has entered 2016 seeking to cut $250 million in expenses for the current fiscal year, primarily through buyouts amid unprecedented challenged in its core television and film businesses. [8] Because of higher programming and marketing costs, along with an increasingly turbulent media environment, Fox’s corporate bottom line has been under increased financial pressure. Consumers are switching to digital platforms for entertainment and are either using their pay-TV subscriptions less or are canceling them all together, resulting in less revenue for Fox and other programming companies that rely heavily on cable programming fees for profit.

21^st Century Fox intends to trim its West Coast workforce to help reach the cost-reduction goal and has been offering ‘generous’ benefit packages to employees at Fox Networks who resign voluntarily. Failure to meet the cost-reduction goal through voluntary buyouts will most likely result in job cuts for employees and additional restructuring for the company.[9]

INVESTMENTS

[10] FuboTV Logo

Despite early financial challenges for the fiscal year 2016, 21^st Century Fox has made some seemingly wise investments, many of which include joining the U.K. satellite TV operator, Sky, to lead the raising of $15 million in the Series B for TV startup, FuboTV. [11] FuboTV was launched in January 2015 and is the fastest-growing virtual MVPD in the U.S., as it bundles sports TV networks with entertainment content that complements its core offering. It is also currently the second largest service and top provider for live streaming of soccer in the U.S. FuboTv plans on using the funding provided by 21^st Century Fox and Sky to expand its lineup of TV networks and build new features to enhance the viewing experience for its audience members. [12] While neither investor is currently licensing content to FuboTV, both 21^st Century Fox and Sky intend to work closely with this startup as it continues to grow.

PARTNERSHIPS

[13] Give a Note Foundation Logo

To commemorate the series final of Fox’s groundbreaking reality series, “American Idol,” 21^st Century Fox is partnering with the National Association for Music Education’s Give a Note Foundation to distribute a new wave of 21^st Century Fox Give a Note Grants. [14] The grants will support up to 20 under-funded music education programs at schools across the United States. The 15-season television program has not only created and discovered some of music’s biggest stars, but has also inspired millions of young students across the country to take part in their school’s music programs. 21^st Century Fox is very proud to honor American Idol’s legacy by backing the Give a Note Foundation and supporting music education act schools across America. [15]

OVERVIEW

While it is clear that 21^st Century Fox has left fiscal year 2015 with some financial challenges, it is also apparent that the company is making strategic strides in the right direction in attempt to gain more suitable finances for the current fiscal year moving forward. The company is not only making an attempt to cut its spending by $250 million through buyouts, but is also investing its money in more promising projects and programs such as FuboTV. Unlike the current state of the entertainment industry’s media landscape, startups like FuboTV, which are more in line with popular media consumption methods like online streaming, are more likely to provide a stable source of revenue. Lastly, despite the financial turmoil and transitions the company has been experiencing, 21^st Century Fox is still upholding the profound legacy of one of its biggest television hits, American Idol, by participating in partnership with the Give a Note Foundation to provide under-funded music programs in schools across America with grants.

Sources:

21^st Century Fox Logo. com. Retrieved: April 24, 2016.

Busniess Wire. (March 10, 2016). “FuboTV – the Leading Sports-First Virtual MVPD – Raises $15 Million Series B Investment Led by 21^st Century Fox and Sky.” Business Wire. Web. Retrieved: April 24, 2016.
Rupert Murdoch Photo.com. Retrieved: April 24, 2016.

Lachlan K. Murdoch photo. The Age. Retrieved: April 24, 2016.

Chase Carey Photo. Hollywood Reporter. Retrieved: April 24, 2016.

James Murdoch Photo. Deadline. Retrieved: April 24, 2016.

21^st Century Fox Annual Fiscal Report. com. Retrieved: April 24, 2016.

The Guardian. (Feb. 1, 2016). “Fox Seeks $250m Worth of Staff Cuts.” The Guardian. Web. Retrieved: April 24, 2016

Flint, Joe and Keach Hagey. (Feb. 1, 2016). “Fox, Offering Buyout, Targets $250 Million in Cost Cuts.” The Wall Street Journal. Web.

FuboTV Logo. Web. Retrieved: April 24, 2016.

Spangler, Todd. (March 9, 2016). “Soccer-Streaming Startup FuboTV Raises $15 Million Led by 21^st Century Fox, Sky.” Variety. Web. Retrieved: April 24, 2016.

Busniess Wire. (March 10, 2016). “FuboTV – the Leading Sports-First Virtual MVPD – Raises $15 Million Series B Investment Led by 21^st Century Fox and Sky.” Business Wire. Web. Retrieved: April 24, 2016.

21^st Century Fox. (April 1, 2016). “21^st Century Fox Partners with Give a Note Foundation to Honor ‘American Idol’ Series Finale by supporting Music Programs at U.S. Schools.” CSRWire. Web. Retrieved: April 24, 2016

James, Meg. (February 1, 2016). “Fox to Reduce Workforce; Targets 425 million Budget Cuts.” Los Angeles Times. Web. Retrieved: April 24, 2016

Flint, Joe and Keach Hagey. (Feb. 1, 2016). “Fox, Offering Buyout, Targets $250 Million in Cost Cuts.” The Wall Street Journal. Web.

Disney/ABC

Posted on February 18, 2016 by Darian Ruderman

(Courtesy of onmogul.com) https://onmogul.com/jobs/music-production-intern-disney-channels-summer-2015

500 South Buena Vista Street
Burbank, CA 91521-4581
(818) 560-1000
www.disneyabcpress.com

History/About the Company

In 1995, Disney/ABC Television Group was born when The Walt Disney Company announced that it would acquire Capital Cities/ABC Inc. for $19 billion [1].

Since then, Disney/ABC Television Group has expanded to provide entertainment, news and kids programming to viewers via more than 200 affiliated stations across the U.S. Disney/ABC Television Group’s properties include ABC Television Network, ABC Owned Television Stations Group, ABC Entertainment Group, Disney Channels Worldwide, Freeform, formerly known as ABC Family, as well as Disney/ABC Domestic Television and Disney Media Distribution. Hyperion publishing and the Company’s equity interests in A+E Networks and Hulu round out the Group’s portfolio of media businesses [2].

Key Senior Executives

(Courtesy of Disney) http://www.disneyabcpress.com/disneyabctv/executives/

(Courtesy of Disney) http://www.disneyabcpress.com/disneyabctv/executives/

Channing Dungey’s new presidency makes her the first African-American to ever lead a major broadcast network. Formerly the executive vice president of ABC drama development, Dungey helped develop series such as “Scandal,” “Quantico,” “Marvel’s Agents of SHIELD,” “How to Get Away With Murder” and “American Crime” [3].

Chairman and CEO of The Walt Disney Company (Courtesy of Disney) https://thewaltdisneycompany.com/about/

Finances

(Courtesy of Yahoo! Finance) http://finance.yahoo.com/q?s=DIS

The Disney/ABC Television Group is publicly traded under The Walt Disney Company (DIS) on the New York Stock Exchange. On Friday, April 22, DIS closed out at $103.77 per share. In the past three months, Disney’s stock prices have been on a pretty steady incline, with a brief dip in early February. The recent strong numbers are a direct result of the Disney release of “Star Wars: The Force Awakens.” Global success of the movie drove record quarterly operating income at both Studio Entertainment and Consumer Products & Interactive Media, which grew at 86% and 23%, respectively [4]. The company reported their quarter one earnings call for 2016 on February 9, 2016. The earnings results webcast can be heard here: https://ditm-twdc-us.storage.googleapis.com/q1-fy16-earnings.mp3.

It was announced on Thursday, April 21, that the Walt Disney Company sold its 50% stake in Fusion, the multi-platform network launched in 2013, making Univision the sole owner. As the majority owner of Fusion, Univision (NYSE: UCI) will create a separate media group that will include recently acquired The Onion and other digital properties. Univision also will take over ABC’s role in handling distribution and ad sales for Fusion’s multi-platform network and will have editorial control [5]. Disney has been changing its own channel line up, rebranding its ABC Family channel as Freeform, targeting millennial women, while investing in Vice Media Inc., which focuses on young men [6]. In recent years, Fusion has been losing money, making the company’s move, most likely, a financially smart one.

2016-2017 Season

Named as the new president of ABC Entertainment, Channing Dungey faces the hard task of mending an ABC schedule with some holes. With five of its nine half-hour comedies already scheduled to return in 2016-17, and another two virtual shoe-ins for renewal, ABC’s sitcom lineup is arguably the strongest on TV. Certainly it is the most stable; “Modern Family” and “The Middle” next fall will embark upon their eighth seasons, while the homegrown “Black-ish” is getting closer to beginning syndication with its season three pick-up [7].

Set to premiere next for ABC is “Uncle Buck,” based on the hit movie of the same name. The series will star Uncle Buck (Mike Epps) as a fun-loving but irresponsible guy who needs a job and a place to stay. His brother and sister-in-law need some help around the house, wondering if they could be the answer to each other’s problems [8]. The show is set to premiere this Summer on June 14, following a preview of the revived game show “To Tell the Truth,” Hosted by “Black-ish” star Anthony Anderson.

(Courtesy of ABC) http://tvseriesfinale.com/tv-show/uncle-buck-abc-comedy-debuts-june/

To get a sneak peek at the new comedy series “Uncle Buck,” starring Mike Epps and Nia Long, click the link to view the official trailer: http://abc.go.com/shows/uncle-buck/video/most-recent/VDKA0_1thuvv8f

Along with “To Tell The Truth,” “100,000 Pyramid,” another game show that is being rebooted from the original, will make its debut on Sunday, June 26 at 9 p.m. following the second season premiere of “Celebrity Family Feud.” Both “Pyramid,” which was originally aired in 1973 and hosted by Dick Clark, and “To Tell the Truth,” which aired in 1956 and was hosted by Budy Collyer [9], will bring a new and older skewing audience to ABC during primetime on Sunday nights.

In The News

(Courtesy of ww.oscar.go.com) http://oscar.go.com/news/oscar-news/oscars-2016-nominee-contenders-and-categories

On February 28, 2016, ABC aired the 88th Academy Awards hosted by comedian Chris Rock, which brought its lowest ratings in eight years. The network has been airing the Oscars since the emergence of television, outside of the periods in the 1950s and 1970s when the award show was aired on NBC [10]. The low viewership was seen as surprising seeing that this year’s Oscars were one of the most talked about awards in recent years, due to backlash and protests over the Academy’s lack of diverse nominees [11]. Also making news was Leonardio Decaprio’s first Academy Award win. Chris Rock held the controversial hosting gig, addressing #OscarsSoWhite with a mixture of jokes and serious statements [12]. Despite all of the talk around and leading up to the event, viewers decided not to tune in, as the numbers clearly speak for themselves.

On Monday, April 18, Ben Sherwood unveiled a plan for ABC to expand the availability of its programming via authenticated streaming platforms by offering to establish such deals on behalf of its 200-plus affiliate stations around the country. The initiative dubbed “Clearinghouse” is described as a “turnkey” solution for ABC’s affiliate stations. Sherwood said that the 14 ABC affiliates in the Hearst TV station group have agreed to lead the pilot program for a technological and administrative template that ABC has hammered out with DirecTV for its Watch ABC app [13].

The new “Pyramid” game show will be hosted by Michael Strahan, who on Tuesday, April 19, announced that he would be leaving his daytime gig at “Live! With Kelly and Michael” for a full-time role on ABC’s flagship morning show “Good Morning America” [14]. With GMA’s ratings leadership in extreme danger of being overshadowed by NBC’s “Today Show,” executives at ABC have come up with something that looks great on paper – adding more of Michael Strahan, the former football player who has transformed himself into one of the most winning personalities on today’s TV screen [15]. ABC’s Summer Schedule is sure to be a busy one, packed with a new spinoff series and various rebooted game shows featuring various of celebrities.

(Courtesy Disney Channel) http://www.eonline.com/news/758430/disney-channel-is-airing-every-original-movie-ever-to-celebrate-a-massive-milestone-see-the-schedule

On Wednesday, April 20, Disney Channel unveiled plans for the 100th DCOM Celebration, a summer programming marathon centered on the airing of the network’s 100th original move since 1997. Things kick off May 27 with a four-day marathon of the 51 most popular original movies followed by encore presentations of these and every other movie in the franchise through June [16]. Releasing 100 movies in 19 years is no small feat, and is surely something to celebrate!

[1] Fabrikant, Geraldine. “Walt Disney To Acquire ABC In $19 Billion Deal To A Giant For Entertainment.” The New York Times. The New York Times, 31 July 1995. Web. 22 Apr. 2016. http://www.nytimes.com/1995/08/01/business/media-business-merger-walt-disney-acquire-abc-19-billion-deal-build-giant-for.html?pagewanted=all

[2] “Overview.” Our Business Areas. Disney, n.d. Web. 22 Apr. 2016. http://datg.disneycareers.com/en/our-business-areas/overview/

[3] Birnbaum, Debra. “Channing Dungey Named ABC Entertainment President, Replacing Paul Lee.” Variety. Variety Media, LLC., 17 Feb. 2016. Web. 22 Apr. 2016. http://variety.com/2016/tv/news/channing-dungey-abc-entertainment-president-1201708379/

[4] The Walt Disney Company. THE WALT DISNEY COMPANY REPORTS RECORD QUARTERLY EARNINGS FOR THE FIRST QUARTER OF FISCAL 2016. N.p., 9 Feb. 2016. Web. 22 Apr. 2016. https://ditm-twdc-us.storage.googleapis.com/q1-fy16-earnings.pdf

[5] Jarvey, Natalie. “Disney’s ABC Sells Fusion Stake to Univision.” The Hollywood Reporter. The Hollywood Reporter, 21 Apr. 2016. Web. 22 Apr. 2016. http://www.hollywoodreporter.com/news/disneys-abc-sells-fusion-stake-886643

[6] Palmeri, Chritopher. “Disney Pulls Out of Fusion Joint Venture With Univision.” Bloomberg.com. Bloomberg, 21 Apr. 2016. Web. 25 Apr. 2016. http://www.bloomberg.com/news/articles/2016-04-21/disney-pulls-out-of-fusion-joint-venture-with-univision?cmpid=yhoo.headline

[7] Crupi, Anthony. “Laugh It Up: Already Flush With Comedies, ABC Looks for More Homegrown Sitcoms for 2016-17.” AdAge. AdvertisingAge, 21 Mar. 2016. Web. 22 Apr. 2016. http://adage.com/article/media/flush-comedies-abc-seeks-homegrown-sitcoms/303203/

[8] “Watch Uncle Buck TV Show – ABC.com.” ABC. Disney, n.d. Web. 22 Apr. 2016. http://abc.go.com/shows/uncle-buck

[9] McLennan, Cindy. “To Tell the Truth, $100,000 Pyramid: ABC Game Show Reboots Coming in June – Canceled TV Shows – TV Series Finale.”Canceled TV Shows TV Series Finale. TV Series Finale, 20 Apr. 2016. Web. 22 Apr. 2016. http://tvseriesfinale.com/tv-show/tell-truth-100000-pyramid-abc-game-show-reboots-coming-june/

[10] Guerrasio, Jason. “The Oscars Had the Lowest Ratings in Years, and ABC Is Trying to Get Control to Revamp Them.” Business Insider. Business Insider, Inc, 01 Mar. 2016. Web. 22 Apr. 2016. http://www.businessinsider.com/oscars-abc-contract-2016-3

[11] The Show Averaged 34.3 Million Viewers on Sunday Night. “Oscars Brings in Third-lowest Viewership in History.” CNNMoney. Cable News Network, 29 Feb. 2016. Web. 25 Apr. 2016. http://money.cnn.com/2016/02/29/media/oscars-ratings-academy-awards/

[12] Griggs, Brandon. “Chris Rock: ‘You’re Damn Right Hollywood Is Racist'” CNN. Cable News Network, 29 Feb. 2016. Web. 22 Apr. 2016. http://www.cnn.com/2016/02/28/entertainment/chris-rock-oscars-so-white-feat/

[13] Littleton, Cynthia, and David S. Cohen. “ABC Tries to Expand Affiliate Streaming Access with Clearinghouse Initiative.” Variety. Variety Media, LLC., 18 Apr. 2016. Web. 22 Apr. 2016. http://variety.com/2016/tv/news/abc-affiliate-streaming-clearinghouse-watch-abc-1201755595/

[14] Holloway, Daniel. “‘Uncle Buck,’ ‘To Tell the Truth’ Premiere Dates Set as ABC Unveils Summer Schedule.” Variety. Variety Media, LLC., 19 Apr. 2016. Web. 22 Apr. 2016. http://variety.com/2016/tv/news/uncle-buck-to-tell-the-truth-premiere-dates-abc-summer-1201757030/

[15] Steinberg, Brian. “ABC’s Morning Madness: Will Michael Strahan Blitz Score Touchdowns for ‘GMA,’ ‘Live’?” Variety. Variety Media, LLC., 20 Apr. 2016. Web. 22 Apr. 2016. http://variety.com/2016/tv/news/michael-strahan-good-morning-america-abc-kelly-ripa-1201757700/

[16] Hipes, Patrick. “Disney Channel Original Movie ‘The Swap’ Set As Network Plans 100-Pic Celebration.” Deadline. Penske Business Media, LLC., 20 Apr. 2016. Web. 22 Apr. 2016. http://deadline.com/2016/04/disney-channel-original-movie-the-swap-dcom-marathon-1201741163/

Discovery Communications

Posted on February 18, 2016 by Isabella Hattem

Discovery Communications’ logo [27]

Contact Information

One Discovery Place
Silver Spring, MD 20910 [1]

240-662-2000

https://corporate.discovery.com/

Key Executives

David Zaslav President and CEO
Discovery Communications[2]

Jean-Briac (JB) Perrette President
Discovery Networks International [3]

Andrew Warren Chief Financial Officer and Senior Vice President [4]

Marjorie Kaplan President of Content
Discovery Networks International[5]

History

Discovery Communications was founded in 1985 by John Hendricks [6]. On June 17, 1985 The Discovery Channel was launched on air to about 156,000 subscribers in the United States and premiered the show “Iceberg Alley,” a program about the North Atlantic waters. Two years later, Discovery Channel premiered one of its most popular traditions, “Shark Week.”

In 1991, Discovery Communications acquired its second channel, TLC for $30 million [7], and soon after, purchased Animal Planet in 1996.

Animal Planet Logo [28]

After rapid growth and expansion, by 2001, The Discovery Channel became the nation’s most distributed television brand. This significant growth increased as Discovery Communications spread into other countries, as well as acquired more channels. By 2004, the company had reached over 1 billion subscribers worldwide [8].

Today, Discovery Communications owns over 50 different channels and media companies including The Oprah Winfrey Network, Science Channel, and Eurosport [9]. Discovery Communications reaches 3 billion subscribers worldwide and is available in over 220 markets [10].

Finances

Discovery Communications stocks [11]

Discovery Communications is a publically traded company and has seen fluctuations in its stock throughout the last several months. Despite these fluctuations, in the past three months, the company’s stock has yet to fall below $24.33 per share and has hit its high at $29.42 per share on Friday, March 18, 2016. After several months of having stocks below their simple moving average, the company was able to surpass this on March 1, 2016 [12]. Since then, Discovery Communications has seen a positive trend in their stock prices, with their stocks having not fallen below the simple moving average in almost two months. Discovery Communications is set to release their first quarterly report on May 5, 2016.

Winter Releases

President Obama on DNews [13]

On April 11th, President Obama hosted five episode of Science Channel’s “Science Presents DNews,” in which he discussed a variety of topics ranging from pollution to medicine to technology [14]. The partnership between Science Channel and the White House aligned with the White House Science Fair that took place on April 13th as well as the US Science and Engineering Festival that also took place throughout that window.

For Peete’s Sake

“For Peete’s Sake” is a reality TV show that premiered on OWN: the Oprah Winfrey Network on March 19, 2016. “For Peete’s Sake” follows the lives of the family of former NFL player, Rodney Peete and his wife, “21 Jump Street” actress, Holly Robinson Peete [15]. The show takes a comedic look at Rodney and Holly’s four kids, as well as Robinson Peete’s eccentric, 80-year-old mother. OWN‘s latest docuseries has been added to the network’s Saturday night schedule. It was produced exclusively for The Oprah Winfrey Network by Tremendous! Entertainment and has signed on Colleen Needles Steward, John Ferriter, Kyell Thomas, Shannon Keenan Demers and Andy Meyer as producers, alongside the Peete’s, who will also be executive producers on the show [16].

It’s Not You, It’s Men

Also premiering on The Oprah Winfrey Network this season is “It’s Not You, It’s Men,” a relationship talk show hosted by musicians, Tyrese Gibson and Rev Run [17]. The show uses Gibson’s status as a bachelor and single father to contrast Rev Run’s 20 years of marriage in an attempt to generate with diverse opinions and conflicting viewpoints. Each episode, Gibson and Rev Run use their difference in experience to discuss topics such as modern romance, dating, and relationships with a featured celebrity guest. Past guests have included Jordin Sparks, Marlon Wayans, and Vin Diesel. “It’s Not You, It’s Men” premiered on January 23, 2016. It is produced by CBS Television Distribution in association with Voltron Productions and Simmons/Lehman productions. Gibson and Rev Run are executive producers on the show along with Jerome Martin, Isabella Castro, Michael Lehman, and creator/showrunner Eric Pankowski [18].

New Programming and Upfronts

Following Discovery’s success last year in not spending money on a lavish upfront party, Discovery has opted to take a similar approach this year, and has broken up their upfronts into 14 smaller agency presentations throughout the country, and have decided to reallocate the former upfront money to content production [19]. The goal in this is to expand and improve content, while also increasing the Discovery Communications presence internationally.

Discovery Channel

Discovery Channel Logo. [29]

In an effort to gain new viewers, Discovery Channel is adding their first two scripted television series. The first, titled “Harley and the Davidsons,” is a miniseries that follows the story of William Harley and Arthur Davidson, creators of the iconic motorcycle. Discovery is hoping to attract audiences to the series by featuring “Game of Thrones“ stars, Michiel Huisman and Robert Aramayo [20]. The show is set to air September, 2016. The second scripted series, entitled “Manifesto,” is an FBI drama from the minds of Kevin Spacey and Dana Brunetti and tells the story of one man’s search and take down of “Unabomber,” Ted Kaczynski [21].

TLC

The Learning Channel Logo [30]

Following major scandals in the past several years with both “Here Comes Honey Boo Boo” and “19 Kids and Counting,” TLC is trying hard to gain back audiences it may have lost. Because of this, The Learning Channel also has ordered its first scripted series, to be produced by Tyler Perry. The show will follow a young woman forced to return to her home in a trailer park amid scandals in her life in D.C. [22]. Additionally, the network hopes to further pick up more viewers by adding two shows that follow a similar format as “Trading Places,” as well as two other shows about large families that will likely take the place of “19 Kids and Counting.”

Additionally, this summer TLC will be launching under a new campaign with the slogan: “I Am.” The “I Am” campaign uses its current stars and shows to encourage viewers to think positively about themselves, and to recognize the unique aspects of themselves that make each person special. In light of TLC’s recent controversies, TLC president and general manager, Nancy Daniels, said “with real people, real things happen.” The campaign symbolizes the network’s desires to move on from the scandals, and to remind their viewers of their positive message.

What’s Next

On April 19, Discovery Communications and HBO announced that they would join together in purchasing equity stakes in OTOY, a virtual reality and 3D graphics company [24].

OTOY Logo [23]

Both Discovery and HBO hope to use this newfound access to holographic technology to produce innovative forms of technology on various different media platforms. Discovery aims to get this content out on TV, web, mobile, as well as to create wearable technologies for both virtual reality and augmented reality [25]. Discovery hopes that this outlet will be the source to “[take] Discovery VR, to a whole new level” [26].

Works Cited

[1] “Discovery Communications, Inc.” Discovery Communications Inc. N.p., n.d. Web. 24 Apr. 2016.

[2] “David M. Zaslav.” (n.d.): n. pag. Discovery Communications Inc. Discovery Communications. Web. 23 Apr. 2016.

[3] “Jean-Briac (JB) Perrette.” (n.d.): n. pag. Discovery Communications Inc. Discovery Communications. Web. 23 Apr. 2016.

[4] “Andrew Warren” (n.d.): n. pag. Discovery Communications Inc. Discovery Communications. Web. 23 Apr. 2016.

[5] “Marjorie Kaplan” (n.d.): n. pag. Discovery Communications Inc. Discovery Communications. Web. 23 Apr. 2016.

[6] DiscoveryComms. “Discovery Communications Founded with Launch of Discovery Channel.” YouTube. YouTube, 18 June 2015. Web. 24 Apr. 2016.

[7] “Discovery Communications, Inc. – Company Profile, Information, Business Description, History, Background Information on Discovery Communications, Inc.” Discovery Communications, Inc. – Company Profile, Information, Business Description, History, Background Information on Discovery Communications, Inc. N.p., n.d. Web. 24 Apr. 2016.

[8] “Discovery Communications Through the Decades.” Discovery Through the Decades. N.p., n.d. Web. 24 Apr. 2016. <http://30yearsofdiscovery.com/>.

[9] “Discovery Communications, Inc.” Discovery Communications Inc. N.p., n.d. Web. 24 Apr. 2016.

v[10] “Discovery Communication: AT A GLANCE.” (n.d.): n. pag. Discovery Communications Inc. Web.

[11] “Discovery Communications, Inc.” Yahoo! Finance. N.p., n.d. Web. 24 Apr. 2016.

[12] “Discovery Communications Inc. Series A DISCA (U.S.: Nasdaq).” DISCA Advanced Charting. N.p., n.d. Web. 24 Apr. 2016.

[13] DNewsChannel. “President Obama Explains Scott Kelly’s Year In Space.“YouTube. YouTube, 11 Apr. 2016. Web. 24 Apr. 2016.

[14] “Obama To Present Science Channel Segment All Week.” Deadline. N.p., 11 Apr. 2016. Web. 24 Apr. 2016.

[15] “Holly Robinson Peete and Rodney Peete to Star in New Docuseries on OWN.” Oprah.com. N.p., n.d. Web. 24 Apr. 2016.

[16] “OWN Orders Holly Robinson Peete and Rodney Peete Docuseries.” The Hollywood Reporter. N.p., n.d. Web. 24 Apr. 2016.

[17] OWN. “Tyrese and Rev Run’s Sage Advice for the Single Ladies | It’s Not You, It’s Men | OWN.” YouTube. YouTube, 12 Mar. 2016. Web. 24 Apr. 2016.

[18] “Watch: OWN Previews New Primetime Series ‘It’s Not You, It’s Men’ (Tyrese Gibson & Rev Run Host).” Shadow and Act. N.p., n.d. Web. 24 Apr. 2016.

[19] Lynch, Jason. “Discovery Communications Is Thinking Globally (and Digitally) With Advertising Bouncing Back.” AdWeek. N.p., 31 Mar. 2016. Web. 25 Apr. 2016.

[20] Littleton, Cynthia. “‘Game of Thrones’ Actors to Star in Discovery Miniseries ‘Harley and the Davidsons’.” Variety. N.p., 07 Jan. 2016. Web. 25 Apr. 2016.

[21] Wagmeister, Elizabeth. “Kevin Spacey, Dana Brunetti FBI Drama ‘Manifesto’ Lands Series Order at Discovery Channel.” Variety. N.p., 31 Mar. 2016. Web. 25 Apr. 2016.

[22] Lynch, Jason. “Discovery Communications Is Thinking Globally (and Digitally) With Advertising Bouncing Back.” AdWeek. N.p., 31 Mar. 2016. Web. 25 Apr. 2016.

[23] “OTOY TO PRESENT ENTERPRISE CLOUD PLATFORM AT NVIDIA GPU TECHNOLOGY CONFERENCE.” Visual Computing Leadership from NVIDIA. N.p., n.d. Web. 24 Apr. 2016.

[24] “HBO, Discovery Acquire Stakes in 3D Graphics Firm Otoy to Create Holographic Content.” Variety. N.p., 19 Apr. 2016. Web. 24 Apr. 2016.

[25] “HBO and Discovery Invest in OTOY to Create Universal Publishing Platform for TV, Movies and Original Holographic Content • OTOY.” OTOY HBO and Discovery Invest in OTOY to Create Universal Publishing Platform for TV Movies and Original Holographic Content Comments. N.p., 19 Apr. 2016. Web. 24 Apr. 2016.

[26] Villarreal, Yvonne. “HBO and Discovery Communications Get into VR with 3D Graphics Firm Otoy.” Los Angeles Times. Los Angeles Times, 19 Apr. 2016. Web. 25 Apr. 2016.

[27] “Discovery And France’s TF1 Group In Talks For Strategic Alliance.“Deadline. N.p., 13 Nov. 2012. Web. 25 Apr. 2016.

[28] “Animal Planet Logo.” Logo Database. N.p., n.d. Web. 25 Apr. 2016.

[29] “Discovery Channel Logo | Logok.” Logok. N.p., 15 Apr. 2014. Web. 25 Apr. 2016.

[30] “TLC.” Peacock Productions. N.p., n.d. Web. 25 Apr. 2016.

NOTE: there was a formatting issue i was unable to fix regarding the spacing on the titles for Marjorie Kaplan and Andrew Warren

Comcast/NBCU

Quote

Posted on February 18, 2016 by Conor Matthews

Conor Matthews

Comcast NBCUniversal logo featuring the iconic rainbow peackock

Since the invention of the radio, American families have gathered around the heath of the house daily, clamoring around an electric conduit of entertainment. History has developed the American hearth in time, from radio to television and film, and now, to the Internet. Since its inception, the American hearth’s form has changed, but one constant has remained—NBC. If the social, emotional, and cultural importance of Television, Radio, and Film are likened to a literal and metaphorical hearth, then NBCUniversal is the fortress in which this hearth was built.

The Construction of America’s TV Fortress

In 1926 David Sarnoff founded the National Broadcasting Company (NBC), making it America’s first permanent radio network. [1] NBC ruled the Golden Era of Radio in the 1930s, and Sarnoff was busy developing television for NBC.

Americans gather around the “American hearth” to watch TV

In 1939 at the World’s Far, Sarnoff presented regular television service on behalf of NBC. Meanwhile, Universal—founded by Carl Laemmle in 1912—was producing huge blockbusters that garnered Academy Awards. The two media companies would hold America’s attention independent of each other until their merger in 2004, at the hands of their parents General Electric and Vivendi.

The Acquisition of America’s TV Fortress

Comcast, however, bought the entire NBCUniversal assets from GE and Vivendi in March 2013. The merge augmented Comcast’s power to produce, and distribute media, a move critiqued by Susan Crawford as being too monopolistic. “‘Comcast [is] in a prime position to be the unchallenged provider of everything — all data, all information, all entertainment — flowing over the wires in its market areas’”.[2] Despite naysayers, the merge proved fruitful as NBC emerged as No. 1 in adults 18-49 for the Primetime Season 2013-14 year; the first time in over 10 years that NBC earned this superlative.[3]

The list of assets owned by NBCUniversal, and through extension Comcast, is expansive. NBC Cable boasts the names of well-known cable networks like Bravo, E!, USA, and Syfy; while NBCU has four broadcast assets—NBC, NBC News, NBC Sports, and Telemundu.

The Optimization of America’s TV Fortress

NBCU’s unwavering dominance in the TV industry has allowed the company to look inward at the current way their business operates, specifically their relationship to advertisers. No matter the client or project, however, NBCU remains focused on retaining the bold, and effective brand their audience knows well.

On February 24, 2016, NBCU announced a reworking of NBCUx, a development that allows programmatic buys for advertising clients on the company’s linear TV networks. NBCUx uses NBCU’s Advanced Targeting Platform to pinpoint correlations between the ad’s audience and the clients’ consumers.[4] NBCUx aids clients in understanding which ad slots are most cost efficient and worthwhile. Prior to the 2016 announcement of NBCUx, NBCUx was first used by a few select clients on NBCU’s digital platforms after the company’s 2015 Upfront. Since then, the success of NBCUx has been noted by Mike Farrell of Multichannel, who writes, “With ATP, NBCU has demonstrated that ads have a higher reach, and are more efficient as they are run across the entire portfolio”.[5] Khrishan Bhatia, EVP of Business Operations and Strategy, noted that last year NBCU’s digital growth was comprised of 40% video.[6] In turn, 40% of that 40% came from programmatic sources.

The 2016 expansion of NBCUx enables clients looking to buy ads on TV to forgo the traditional Nielsen model, which uses demographics ratings. NBCUx is pioneering programmatic buys in the TV world. Bhatia told reporters, “It’s the industry’s first national programmatic TV offering at scale”. NBCUx will be NBCU’s main talking point at their May 17, 2016 Upfront in New York City.[7]

NBCUx is working hard to pinpoint valuable customers and audiences of TV, something metadata and cookie mining is already helping many online platforms do. The advertisements on online platforms, however, lack what the television advertisements do possess —ads that make people want to get up and buy a product. On the subject of advertisements, Jim Bankoff, charmain and CEO of Vox Media details, “‘awareness creation, identity creation, brand building [are] the kind of things that television and magazines have been good at, creating that experience and telling marketers’ stories’”.[8] Understanding this dichotomy, NBCU is utilizing its 2015 $200million investment in the digital publisher, Vox Media, to reinvigorate the online ad-viewing experience.[9] The synthesis of this partnership is an inventory tool called Concert.

Concert guarantees brands advertisements that are mutually beneficial for both parties, utilizing “data targeting and a large, fraud-free audience that results in performance that’s 12 times what the average banner ad delivers”. Bankoff elaborates, “…now marketers who are looking to build brand can take advantage of the capabilities but can have beautiful advertising that performs well for them that doesn’t irritate—and actually delights—the audience…”.[10] Between all of NBCU and Vox Media’s online properties, Concert will have an audience of over 170 million people, with a majority of that audience being an extremely valuable demographic—Millennials.

Bobby Moynihan of ‘Saturday Night Life’ stars in a Fiat commercial [11]

Continuing to optimize their relationship with advertisements, The NBCU Content Studio was created with brands in mind. Specifically, NBCU will utilize the celebrity brands they have, like Jimmy Fallon of The Tonight Show Starring Jimmy Fallon, and Bobby Moynihan of Saturday Night Live to create content for companies looking to promote their own brand.[11] The NBCU Content Studio enables companies to fulfill the growing need to publish their own branded video content across multiple platforms like, Snapchat, Facebook, YouTube, and their own website. The clients will be able to utilize NBCU’s “creative talent, data, distribution and scale (including its partners BuzzFeed, Vox and AOL)”, while putting a representative of NBCU Television in front of the audience. The NBCU Content Studio is an example of NBCU’s understanding of the cogent convergence of brand and media.

The Future of America’s TV Fortress

Looking at the future of NBCUniversal indicates the same strong emphasis on online platforms as the company is doing currently. Specifically, in April 2016, NBCU and Amazon reached an agreement for the latter to carry SeeSo as part of their Amazon Prime bundle.[12] SeeSo is a comedy-only streaming service which features NBC sitcoms and other syndicated comedy programs. SeeSo’s potential success, or lack thereof, will help inform potential future endeavors of the company into OTP streaming services.

NBCUniversal’s May 17 upfront will be a critical moment to test the work the company has done on NBCUx, Concert, and The NBCU Content Studio. By buying into NBCU’s Upfront, clients will validate or invalidate NBCU’s efforts to optimize the workings of their company and brand. Furthermore, this coming year will serve as a test-run for the three projects. While some clients will leave NBCU’s Upfront with three more tools at their dispense, the work will continue after this year. NBCU’s relentless position at the top of the media industry inspires to make what works, really work.

[1] “Credo & History.” NBCUniversal Careers. NBCUniversal, n.d. Web. 22 Apr. 2016.
<http://www.nbcunicareers.com/our-company/credo-history>.

[2] Gustin, Sam. “Comcast’s NBCUniversal Deal: As One Media Era Ends, Another
Begins.” TIME. N.p., 14 Feb. 2014. Web. 22 Apr. 2016.
<http://business.time.com/2013/02/14/
comcasts-nbcuniversal-deal-as-one-media-era-ends-another-begins/>.

[3]”NBC Finishes No. 1 In 18-49 Demo For 2013-14 Primetime Season.” The Deadline.
N.p., 14 Sept. 2014. Web. 24 Apr. 2016. <http://deadline.com/2014/09/
nbc-ratings-primetime-2013-2014-primetime-season-835093/>.

[4] LaFayette, Jon.”New Currencies Used in NBCU Ad Data Deals.” Broadcasting & Cable. N.p., 14 Apr. 2016. Web. 19 Apr. 2016. <http://www.broadcastingcable.com/news/
currency/new-currencies-used-nbcu-ad-data-deals/155515>.

[5] Farrell, Mike. “#AdvancedAd 2016: Programmatic Expands Choice.” Multichannel
News. N.p., 5 Apr. 2016. Web. 19 Apr. 2016.
<http://www.multichannel.com/news/advanced-advertising/
advancedad-2016-programmatic-expands-choice/403878>.

[6] Lynch, Jason. “NBCUniversal Will Start Selling TV Advertising Programmatically This
Fall.” AdWeek. N.p., 24 Feb. 2016. Web. 21 Apr. 2016.
<http://www.adweek.com/news/television/
nbcuniversal-will-start-selling-tv-advertising-programmatically-fall-169850>.

[7] Andreeva, Nellie. “NBCUniversal Folds All Cable Networks Into NBC Upfront
Presentation.” The Deadline. N.p., 30 Mar. 2016. Web. 23 Apr. 2016.
<http://deadline.com/2016/03/
nbcuniversal-upfront-presentation-nbc-usa-syfy-msnbc-1201728552/>.

[8] Lynch, Jason. “NBCUniversal and Vox Team Up to Sell Cross-Platform, Premium
Digital Advertising.” AdWeek. N.p., 4 Apr. 2016. Web. 22 Apr. 2016.
<http://www.adweek.com/news/television/
nbcuniversal-and-vox-team-sell-cross-platform-premium-digital-advertising-170588>.

[9] Baysinger, Tim. “Why NBCU Invested $200 Million in Vox.” AdWeek. N.p., 13 Aug.
2015. Web. 23 Apr. 2016. <http://www.adweek.com/news/television/
why-nbcu-invested-200-million-vox-166368>.

[10]Lafayette, Jon. “NBCU, Vox Harmonize in Digital Ad ‘Concert’.”
Broadcasting & Cable. N.p., 4 Apr. 2016. Web. 23 Apr. 2016.
<http://www.broadcastingcable.com/news/currency/
nbcu-vox-harmonize-digital-ad-concert/155173>.

[11] Lynch, Jason. “NBCU’s New Studio Is Creating Branded Content for Viewers Beyond Its Own Platforms.” AdWeek. N.p., 20 Mar. 2016. Web. 22 Apr. 2016.
<http://www.adweek.com/news/television/
nbcus-new-studio-creating-branded-content-viewers-beyond-its-own-platforms-170264>.

[12] Would, Kristofer. “NBCUniversal’s comedy streaming service to allow
subscriptions via Amazon Read more: http://www.digitaltrends.com/movies/
nbcu-seeso-amazon-subscription/#ixzz46relKHHk Follow us: @digitaltrends on
Twitter | digitaltrendsftw on Facebook.” Digital Trends. N.p., 20 Apr.
2016. Web. 22 Apr. 2016. <http://www.digitaltrends.com/movies/
nbcu-seeso-amazon-subscription/>.

AMC Networks

Posted on February 18, 2016 by Jason Zaccaro

AMC Networks logo [1]

AMC Networks

11 Penn Plaza, New York, NY

http://www.amcnetworks.com/

History

AMC networks was originally founded in 1980 as Rainbow Media Holdings LLC, a division of cable vision. In 2011 Rainbow Media became independent of cablevision, and was spun off as AMC networks, taking the moniker of its most successful and widely recognized channel, with Josh Sapan as president and CEO. It officially became a publicly traded company on July 1^st, 2011. AMC networks encompasses the AMC channel, the IFC channel, Sundance TV and WeTV, as well as a 49.9% interests in BBC America, a joint venture with BBC worldwide. As part of an effort to become a more international AMC also acquired Chellomedia, which operates cables networks internationally, primarily in Europe, in 2013 for $1.04 billion dollars. Chellomedia became AMC international on July 8^th, 2014.

Key Executives

Josh Sapan, CEO of AMC Networks [3]

Ed Carroll, COO of AMC Networks [2]

Sean Sullivan, Executive VP and CFO of AMC Networks [4]

Finances

AMC networks has expanded rapidly since 2007. The main driver of this success has been the AMC channel, due primarily to the success of original programing, namely Mad Men, The Walking Dead, and Breaking Bad. AMC’s fourth quarter earnings for 2015 exceeded most projections, posting a $1.23 earnings per share, up from $1.06 the previous fourth quarter, and up from the $1.18 that was projected. AMC posted a net revenue of $2.581 billion dollars in 2015, an 18.6% increase from 2014. AMC also posted revenue of $678.85 million in 2015, which represents a 10.82% increase over 2014. Despite all this growth, concerns over industry wide issues such as cord cutting, as well as worries over the stability of The Walking Dead, AMC’s flagship franchise, has caused stock prices to fall to $65.19, from a 52 week high of $87.18. AMC traditionally draws most of its revenue from cable subscriptions, with beloved original programming such as Breaking Bad and Mad Men, leading to customers who are very vocal with their cable providers about wanting the AMC channel. However, huge audiences, particularly in certain demographics that are sought after by advertising companies, has led to increases in revenue from advertising. Advertising revenue grew 23.6% in 2015, to $945 million. Revenue from distribution grew as well in 2015, and still represents the majority of AMC networks revenue, growing 21.5% from 2014 to 2015, to $1.190 billion.

AMC’s Stocks For the 2015 Fiscal Year. For up to the minute stock reports http://www.nasdaq.com/symbol/amcx/stock-chart [10]

Fear the Walking Dead promotional poster for season 2 [26]

Current Programing

The Walking Dead promotional material [26]

Based on the popular comic book series and set in a post-apocalyptic world overrun by zombies, The Walking Dead is AMC’s flagship program. This is due in no small part to its popularity among the coveted 18-49 demographic. The season 6 finale of The Walking Dead, which aired on April 3^rd, took the top spot for that week in cable programming, beating out even the NCAA Final Four, with a total viewership of over 14.1 million. Of that 14.1 million, 8.7 million where people within the 18-49 demo that advertising companies place a premium on, equaling a 6.9 rating. Talking Dead, the talk show that immediately follows The Walking Dead placed 5^th overall with 6.3 million viewers, but was 3^rd among the 18-49 demo, with 3.8 million viewers and a 3.1 rating. Fear the Walking Dead, a spinoff series of The Walking Dead, has managed to replicate its success, albeit to a lesser degree. Fear the Walking Dead has managed to beat out even the NBA playoff games, to hold on to the top spot in the weeks since The Walking Dead concluded its 6^th season. The success of The Walking Dead has been used to help launch more of AMC’s original shows, as placing the premieres of these new series immediately after episodes of the Walking Dead has helped to increase their exposure greatly.

Fear the Walking Dead is not the only spin off series that AMC has launched, as Better Call Saul, a spinoff of Breaking Bad, has just concluded its second season. Another original show, into the Badlands, a post-apocalyptic martial arts series, was launched following the Walking Dead to great success, enjoying the 3^rd highest rated first season for a cable television series ever, averaging 5.6 million viewers per episode.

Into the Badlands promotional Material [26]

AMC Networks other channels such as IFC, possess nowhere near the same kind of influence as AMC does, especially when it comes to negotiating distribution deals with cable providers, as they are simply not in as high demand. IFC specializes primarily in showing smaller, independent films.

Upcoming Programming

Much of AMC’s upcoming content focus on new seasons of already popular franchises, although there are certainly more original shows being launched as well. Both The Walking Dead and Fear the Walking Dead have been renewed for a 7^th and 3^rd season respectively. Fear The Walking Dead will increase its episode count to 16 episodes per season, up from 15. In addition to the Walking Dead Franchise, the Breaking Bad spinoff Better Call Saul, has been renewed for a 10 episode third season, after averaging 4.4 million viewers per episode in season 2, of which 2.5 million were in the 18-49 demographic. Into the Badlands has also been renewed for a 10 episode second season, that will premier in 2017. As part of AMC’s strategy to expand more internationally, the second season of Into the Badlands will air simultaneously in 125 countries, similar to how the first season did.

Promotional material for the upcoming Preacher [26]

Better Call Saul promotional poster [26]

A completely new show, The Preacher, will be launched after the mid-season finale of Fear the Walking Dead. The Preacher will star Dominic Cooper and follows a Texas preacher who is possessed by a mysterious entity, and will be a drama mixed with dark comedy. The series is based off a comic book series, and the hope is that premiering it after Fear the Walking Dead will cause more people to see it, similar to the strategy AMC employed with into the Badlands.

Advertising

The huge success of The Walking Dead franchise has caused AMC executives to be hopeful that they can continue their trend of increasing revenue from ad sales, and that their network can be seriously considered as an alternative to broadcast networks when looking to buy ad space, especially considering that AMC has the top 2 cable programs in both total viewership, and among the 18-49 demographic. AMC has been criticized for having a seemingly huge reliance on The Walking Dead franchise for success, but by using the franchise to help launch new original shows, AMC is continually diversifying its programming offerings. AMC has made it a point to target scatter advertising buys, as opposed to those bought during upfront season. The Walki
ng Dead currently pulls in among the highest advertising prices, with the average cost for a commercial being $502,000.

Overview

AMC’s Mad Men promotional poster [26]

AMC has experienced a near meteoric rise to prominence in the past few years. Primarily focusing on showing movies, like the American Movie Classics name suggests, it was only in 2007 that they started to produce widely successful original programming. Following the example HBO set with The Soprano’s, AMC set out to produce I high quality program, with the hope that critical acclaim would bring with it viewership. After Mad Men won 3 consecutive outstanding drama Emmys, AMC started to shift it’s focus to original content, and now has 10 original shows. AMC finished 4^th among all cable networks with the 18-49 demographic, a number which only seems poised to increase in the coming years.

Sources

AMC Network Works its Angles. Retrieved April 20, 2016. http://www.underconsideration.com/brandnew/archives/amc_network_works_its_angles.php#.VxglxTArKM8
Ed Carroll. Retrieved April 20, 2016. http://www.amcnetworks.com/about-us/leadership/ed-carroll
Josh Sapan. Retrieved April 20, 2016. http://www.amcnetworks.com/about-us/leadership/joshua-sapan
Sean Sullivan. Retrieved April 20, 2016. http://www.amcnetworks.com/about-us/leadership/sean-sullivan
Szalai, Georg. March 10, 2011. The Hollywood Reporter. Cablevision’s Rainbow Channels Unit to Be Renamed AMC Networks in Spin-Off. Retrieved April 20, 2016. http://www.hollywoodreporter.com/news/cablevisions-rainbow-channels-unit-be-166575
Kissel, Rick. November 17, 2015. ‘Into the Badlands’ Ratings: AMC Drama Opens Strong Sunday. Retrieved April 20, 2016. http://variety.com/2015/tv/news/ratings-amc-into-the-badlands-opens-strong-sunday-1201641489/
Prudom, Laura. March 8, 2016. ‘Into the Badlands’ Renewed for Season 2 at AMC. Retrieved April 20, 2016. http://variety.com/2016/tv/news/into-the-badlands-renewed-season-2-amc-1201725696/
Porter, Rick. April 5, 2016. TV by the numbers. Cable weekly Top 25: ‘Walking Dead’ finale, Final Four lead the week of March 28-April 3. Retrieved April, 20 2016. http://tvbythenumbers.zap2it.com/2016/04/05/cable-weekly-top-25-march-28-april-3-2016/
Porter, Rick. April 19, 2016. TV by the numbers. Cable weekly Top 25, April 11-17: ‘Fear the Walking Dead,’ NBA dominate. Retrieved April 20, 2016. http://tvbythenumbers.zap2it.com/2016/04/19/cable-weekly-top-25-april-11-17-2016/
AMC Networks Inc. Stock Chart. Nasdaq. Retrieved April 20, 2016. http://www.nasdaq.com/symbol/amcx/stock-chart
Seward, Zachary. August 13, 2013. Quartz. AMC is succeeding by breaking the rules of legacy television. Retrieved April 20, 2016. http://qz.com/114483/amc-is-succeeding-by-breaking-the-rules-of-legacy-television/
Nule, Taylor. April, 19, 2016. Vista Voice. AMC Networks Inc (AMCX) Downgraded by Zacks Investment Research. Retrieved April 20, 2016. http://www.thevistavoice.org/2016/04/19/amc-networks-inc-amcx-downgraded-by-zacks-investment-research/1076381/
Boston, Claire. March 23, 2016. AMC Networks Sells $1 Billion of Junk-Bonds for Debt Repurchase. Retrieved April 20, 2016. http://www.bloomberg.com/news/articles/2016-03-23/amc-networks-plans-750-million-junk-bond-offering-to-repay-debt
Grant, Jack. March 15, 2016. AMC Using ‘Fear The Walking Dead’ To Launch Newest Drama ‘Preacher’. Retrieved April 20, 2016. http://www.benzinga.com/trading-ideas/long-ideas/16/03/7710999/amc-using-fear-the-walking-dead-to-launch-newest-drama-preach
Gibbons, Kent. March 15, 2016. AMC Calls For ‘Better Call Saul’ Season 3. Retrieved April 20, 2016. http://www.multichannel.com/news/networks/amc-calls-better-call-saul-season-3/403348
Steinberg, Brian. February 26, 2016. AMC, Sensing Ad Dollars On Table, Makes Bid For ‘Scatter’. Retrieved April 20, 2016. http://variety.com/2016/tv/news/amc-networks-2016-tv-upfront-scatter-advertising-1201715687/
Szalai, Georg. February 25, 2016. The Hollywood Reporter. AMC Networks Stock Drops Sharply Despite Strong Earnings. Retrieved April 20, 2016. http://www.hollywoodreporter.com/news/amc-networks-stock-drops-sharply-869502
Lynch, Jason. April 19, 2016. AMC Networks Doesn’t Need a Big Upfront Event. It Has The Walking Dead With new shows, network targets millennials every Sunday. Retrieved April 20, 2016. http://www.adweek.com/news/television/amc-networks-doesn-t-need-big-upfront-event-it-has-walking-dead-170901
Steinberg, Brian. February 25, 2016. AMC Networks Profit Grows in Q4 But Stock Drops on Subscriber Worries. Retrieved April 20, 2016. http://variety.com/2016/tv/news/amc-networks-q4-walking-dead-into-the-badlands-1201714772/
Idov, Michael. May 15, 2011. The Zombies at AMC’s Doorstep. Retrieved April 20, 2016. http://nymag.com/arts/tv/upfronts/2011/amc-2011-5/
AMC Networks Inc. Cl A. Wall Street Journal. Retrieved April 20, 2016. http://quotes.wsj.com/AMCX
AMC Stock Information. AMC Networks. Retrieved April 20, 2016. http://investors.amcnetworks.com/stockquote.cfm
Prudom, Laura. ‘Fear the Walking Dead’ Renewed for Season 3 on AMC. Retrieved April 20, 2016. http://variety.com/2016/tv/news/fear-the-walking-dead-renewed-for-season-3-on-amc-1201754580/
Tartaglione, Nancy. February 2, 2016. Bruce Tuchman Exiting As President AMC Global, Sundance Channel Global. April 20, 2016. http://deadline.com/2016/02/bruce-tuchman-leaving-amc-networks-sundance-global-1201694854/
AMC Networks Inc. Announces Proposed Offering of $750 Million of Senior Notes. Nasdaq. Retrieved April 20, 2016. http://www.nasdaq.com/press-release/amc-networks-inc-announces-proposed-offering-of-750-million-of-senior-notes-20160323-00458
AMC. Retrieved April 21, 2016. http://www.amc.com/all-shows
Preacher trailer. Youtube. Retrieved April 25, 2016 https://youtu.be/UNgI2sRzr8I https://youtu.be/UNgI2sRzr8I

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