Viacom

Posted on October 16, 2016 by Barbara

Ryan Doody, Georgina Macdonald

Viacom’s Holdings

Viacom, Inc. (VIAB) is an American media conglomerate with particular interests in cinema with Paramount Pictures, America’s oldest film studio; and cable television as the sixth largest cable ownership company globally, in order of revenue. Viacom houses media networks that reach approximately 700 million global subscribers with leading channels including MTV, VH1, BET, COMEDY CENTRAL and Nickelodeon.

Click here to see a list of all Viacom’s holdings

National Amusements

National Amusements, Inc. have a controlling interest of the media company. National Amusements is Viacom founder and billionaire Sumner Redstone’s holding company. This company holds a majority stake in both Viacom and its sister company, CBS Corp. Viacom was originally founded by media magna Sumner M. Redstone in 1971 and then reestablished in 2005 after splitting its original format into two publicly traded companies; Viacom and CBS Corporation. Sumner Redstone then became CEO of the newly defined Viacom, Inc. until February 2016. At the age of 92, Redstone resigned from his chairmanships at both CBS and Viacom after a court-ordered psychiatric examination.

The Redstone’s Legal Battles

This court-ordered examination by a geriatric psychiatrist is just one noteworthy outcome that has come out of a continuous stream of legal battles within and around the famously fractious Redstone family. The specific inquiry into the 92 year old’s health came after the newly-dismissed Viacom CEO Philippe Dauman sued Redstone, claiming that his dismissal was proof that Sumner was under the control of his daughter, Shari Redstone. At the time there were many rumors that Sumner Redstone’s failing health had allowed his daughter to run his company for him. These rumors were further supported by his supposed successor being someone close to Shari. Dauman and the five other board members dismissed by Redstone this year have sued to prevent their ouster. Their strategy was to prove that Shari took advantage of her father’s mental incapacity in order to seize control of the billion dollar companies. Their ‘legal drama’ and public familial feuding has been highly publicized over the last few years presenting the company as volatile, unstable and, thus, detrimentally impacted their professional image.

Management

Sumner M. Redstone, Founder & Executive Chairman

Sumner Redstone, Majority Shareholder of Viacom and Nat’l Amusements ; Chairman Emeritus

Shari E. Redstone, Non – Executive Vice Chair of Board of Trustees of Viacom

Acting CEO of Viacom Inc.; President and CEO of Viacom G.E.O.

Former CEO and President of Viacom Inc.

The Country’s Oldest Movie Studio

Paramount Pictures Corporation has experienced its worst fiscal year in Brad Grey’s twelve years as Chairman and CEO of the corporation. During his comments about their dismal year, Grey painted a ‘rosier picture’ for the future of Paramount Pictures. He hinted that with the dismissal of Dauman, the era of cost-cutting and streamlined content was over. Moreover, he insinuated that this would further allow a move ahead with more inventive content by acquiring more sub companies to provide blockbuster results; as in the spirit of Disney’s buying of companies such as Marvel, Pixar and Lucasfilm which has set up its slates for the next decade

The development of content is certainly the main issue with Paramount Pictures. It is reported that since the departures of Marvel, DreamWorks Animation and DreamWorks SKG, the corporation has been floundering for lucrative content for development. Grey also commented on repairing Paramount’s image within the film industry. They are seen as ‘penny-pincher’ with a poor business affairs process; a destabilized management team within their production division; and an inability to successfully launch branded sequels (as seen this year with Star Trek Beyond and Teenage Mutant Ninja Turtles).

“Recently, we’ve missed more than we should have.’ Grey said to Deadline magazine; but he went on to say that Paramount has ‘a very strong, diverse slate ahead.’ A true statement, according to critics; their roster includes a huge range of films from Oscar contenders like Scorsese’s Silence to the next chapter of the billion dollar franchise; Transformers: The Last Knight (Click here for news and spoilers).

CBS Merger

Over the past year, Viacom has flirted with the idea of re-merging with CBS, and as of November 2016 it seems inevitable. Shari Redstone has said in an interview that she “think[s] it makes sense at this point in time to explore whether it’s in the interest of both companies to merge again” (13). Viacom’s poor cable performance has put it at a weak position when it will eventually negotiate the merger with CBS. While it is uncertain who will lead the company, the most likely contender is Les Moonves, CBS’s current CEO (4).

Cable Performance

Viacom’s cable holdings have not seen nearly as much success in the past year as they have had in the past. As of November 20, 2016, there are no Viacom channels in the top 5 cable networks during Primetime. In fact, in the list of the 15 top channels on cable based on total day viewership, Viacom channels – Nickelodeon and Nick at Night – only appear twice (10).

*Highlighted channels are owned by Viacom

Source: medialifemagazine.com

The two most notable absentees from this list are MTV and Comedy Central – two of Viacom’s major channels. Comedy Central has seen a drop in viewership mainly due to the end of two of its most popular shows – The Daily Show with Jon Stewart and The Colbert Report. After Jon Stewart’s departure, Comedy Central’s viewership declined a painful 37% (11); the channel has yet to see a comparable replacement.

The new era of Comedy Central programming has yet to see the same success as its predecessors. The Daily Show with Trevor Noah’s average rating of 0.32 is about half that of Stewart’s. The Daily Show’s lack of success represents the channels struggle as a whole. While Trevor Noah may be likeable, In the words of Hayley C. Cuccinello of Forbes Magazine: “His dimples and adorable South African accent just aren’t cutting it” (11)

MTV has described the channel’s cable ratings plunge as a “transitional era” where it’s largely youthful demographic access the channel’s content primarily OTT through the MTV app. Its TV ratings have fell 29% between 2014 and 2015, yet MTV can still boast over 49 million Facebook likes, which is significantly higher than channels like Fox News that have higher TV ratings. While it may have digital success, MTV as a cable network will have to seriously innovate its content if it wants to stay relevant (12).

Argentina’s Largest TV Station

Management within Viacom has been a revolving door in recent months. Following the controversial departures of Dauman in August and Tom Dooley in September of this year, Robert Bakish became the company’s third CEO in three months. Bakish is a Viacom veteran; he became the President and CEO of Viacom International Media Networks in 2007 after worked for the company since 1997. (16)

Bakish’s move has already influenced many of Viacom’s strategies moving forward. He claims his desire is to strengthen the company both domestically and internationally; expected due to his background in global media networks. Bakish’s promotion moves complementarily with Viacom’s acquisition of one of Argentina’s main free-to-air channels, Telefe. The massive deal was announced in November this year, with Viacom pledging $345 million for the channel. (15) This certainly was a surprise purchase due to it’s well-known financial instability. This acquisition strengthens Viacom’s already prominent standing in South America; Telefe reaches 95% of all households in the country and reportedly has attracted 33% share of viewership year-to-date in 2016. However, the fiscal impact of a $345 million buy will be interesting to watch in a company with a reported $12 billion debt. (18)

Bibliography

James, Meg. November 8, 2016. LA Times. Sony Vue Dumps Comedy Central, Nickelodeon, MTV and Other Viacom Channels. Retrieved November 28, 2016. http://www.latimes.com/business/hollywood/la-fi-ct-sony-vue-viacom-20161108-story.html
James, Meg. July 8, 2016. LA Times. Why Viacom Chief Philippe Dauman is fighting his longtime boss, Sumner Redstone. Retrieved November 26th, 2016. http://www.latimes.com/entertainment/envelope/cotown/la-et-ct-why-philippe-dauman-fights-sumner-redstone-20160706-snap-story.html
Cohan, William D. June 16, 2016. Vanity Fair. “It’s a Coup D’état Without a Doubt”: Is Shari Redstone Making Power Moves at Viacom? Retrieved November 26th, 2016. http://www.vanityfair.com/news/2016/06/shari-redstone-power-moves-viacom
Fox, Emily Jane. November 2, 2016. Vanity Fair. Finally, There is a Winner in the Redstone Family Drama. Retrieved November 3rd, 2016. http://www.vanityfair.com/news/2016/11/bob-bakish-viacom-compensation
Board of Directors. Retrieved November 24, 2016. http://www.viacom.com/about/pages/boardofdirectors.aspx#
Paramount Pictures. Retrieved November 1, 2016. http://www.paramount.com
Executives: Brad Grey. Retrieved November 1, 2016. http://www.paramount.com/inside-studio/studio/executives/meet-executives/brad-grey
Fleming Jr, Mike and Cieply, Michael. November 3, 2016. Deadline. Brad Grey Fights For Paramount’s Future Part Two. Retrieved November 4, 2016. http://deadline.com/2016/11/brad-grey-paramount-pictures-future-sumner-redstone-shari-redstone-1201847371/
Fleming Jr, Mike and Finke, Niki. October 8, 2010. Deadline. Paramount to End Relationship with Marvel in 2012. Retrieved November 4, 2016. http://deadline.com/2010/10/disney-paramount-marvel-restructure-marketing-distruibution-deal-76534/
Media By The Numbers: This Week’s Cable Ratings. November 23, 2016. Retrieved 28, 2016. http://www.medialifemagazine.com/this-weeks-cable-ratings/
Cuccinello, Hayley C. April 28, 2016. Forbes. Trevor Noah’s ‘Daily Show’ Reaches 100th Episode, But Noah Is Still Struggling. Retrieved November 28, 2016. http://www.forbes.com/sites/hayleycuccinello/2016/04/28/trevor-noahs-daily-show-reaches-100th-episode-but-noah-is-still-struggling/#67c25575820e
Zara, Christopher. April 15, 2015. International Business Times. MTV Ratings Decline Raises Relevance Questions As Young People Cut Cable Cord For Devices. Retrieved November 28, 2016. http://www.ibtimes.com/mtv-ratings-decline-raises-relevance-questions-young-people-cut-cable-cord-devices-1881468
Walters, Natalie. November 23, 2016. TheStreet. Viacom (VIAB) Merging With CBS Again ‘Might Make Sense,’ Shari Redstone Says. Retrieved November 29, 2016. https://www.thestreet.com/story/13890410/1/viacom-viab-merging-with-cbs-again-might-make-sense-shari-redstone-says.html
Fox, Emily Jane. October 19, 2016. The Hive. Will Les Moonves Soon Run Viacom, Too? Retrieved November 29, 2016. http://www.vanityfair.com/news/2016/10/les-moonves-cbs-viacom-merger
Steele, Anne. November 15, 2016. Wall Street Journal. Viacom to Buy Argentina’s Telefe for $345 Million. Retrieved November 29, 2016. http://www.wsj.com/articles/viacom-to-buy-argentinas-telefe-for-345-million-1479231471
James, Meg. October 31, 2016. LA Times. Viacom Names Robert Bakish as Acting CEO. Retrieved November 28, 2016. http://www.latimes.com/entertainment/envelope/cotown/la-et-ct-viacom-ceo-20161031-story.html
James, Meg. November 9, 2016. LA Times. Paramount Quarterly Profit Plummets; Paramount Loses $137 million. Retrieved November 27, 2016. http://www.latimes.com/business/hollywood/la-fi-ct-viacom-earnings-paramount-20161108-story.html
Orr, Emma and Shaw, Lucas. August 24, 2016. Bloomberg. Viacom Said to Rethink Resistance to $12 Billion Downgrade. Retrieved November 27, 2016. https://www.bloomberg.com/news/articles/2016-08-24/viacom-said-to-rethink-resistance-to-12-billion-debt-downgrade

Hulu

Posted on December 1, 2014 by dpbaylis

by Daniel Bayliss

Hulu Logo. Courtesy of thenextweb.com [1]

Hulu Headquarters

12312 West Olympic Boulevard Los Angeles, CA 90064 [2]

Phone: 1-(310) 571-4700 Website: www.hulu.com

Twitter: @hulu

Key Executives [3]

Mike Hopkins, CEO

Craig Erwich, Senior Vice President & Head of Content

Tian Lim, Chief Technology Officer

Elaine Paul, Chief Financial Officer

What is Hulu?

Created in 2007, Hulu is a premium, over-the-top service that distributes content to millions of users that stream its programming. The Hulu destination website hulu.com was created in 2008.

Users can stream TV shows like Modern Family, Grey’s Anatomy, and Glee. That list is much more expansive, as Hulu offers programming from NBC, FOX, ABC, etc. In addition, Hulu offers numerous movies, documentaries [4], clips, its own original content, and more.

In addition to the free Hulu service, there’s also a paid subscription service called Hulu Plus. For $7.99 per month, subscribers can watch from a library of streamed shows, movies, clips, etc. that is significantly larger than the selection offered by the free service. There are also a number of electronic devices, like XBox, tablets, and phones that have the ability to stream Hulu Plus.

Photo courtesy of app advice.com. This picture shows just several devices that you can use to access Hulu Plus.

Hulu’s original programming also brings their own advertising and sponsorship opportunities into the mix [5]. Hulu also works with websites like Facebook, Yahoo!, MSN, and others to provide web syndication abilities.

Financials

Due to Hulu being a privately held company [6], the only public monetary updates come from within the company.

The year 2012 was significant for Hulu financially. According to former CEO Jason Kilar, the company brought in approximately $695 million in revenue [7], which was a 65% increase from 2011’s revenue totals.

Photo courtesy of Hulu.com. This graph shows a consistent increase between the fourth quarter of 2010 to the fourth quarter of 2012, a factual example of Hulu Plus’ increasing popularity.

The revenue increase also brought about an increase in Hulu Plus subscriber totals, bumping the total up from 1.5 million subscribers in 2011 to 3 million subscribers in 2012. These totals are the result of Hulu investing upwards of $500 million in content in 2012, in addition to the running total of $1 billion that has been paid to the content owners since Hulu’s launch back in 2007 [8]. Hulu also served over 1,000 advertisers in 2012, which was 28% more than in 2011 [7].

Hulu experienced more financial success in 2013 [9]. Their revenue and subscription totals rose to $1 billion and 5 million paying subscribers, respectively [10]. And under the assumption that it holds onto its subscribers for a year, Hulu is set to make $479 million just in subscription revenues.

In July 2013, the three companies that own Hulu — Fox Entertainment Group, NBCUniversal and Disney — invested $750 million in Hulu for its future endeavors and investments. As of September 28, 2013, Hulu had collected a total of $380 million of that number [11]. This investment came on the heels of the three companies deciding against a sale of Hulu.

Within the Company

A huge part of Hulu’s success is due to all their advertising efforts, which includes branded content like the Ford–sponsored show Escape My Life and Subway-sponsored The 4 to 9ers. While branded content is an increasingly popular trend, one that Hulu has taken advantage of in the past [12], November’s departure of Bryan Thoensen, the head of branded content at Hulu, from the company has caused Hulu to change its efforts. Hulu’s new plan will revolve around sponsorships sold for the their self-produced content [13]. This is different from the past when Hulu would also bring along shows and combine them with brands from the start.

Photo courtesy of adage.com. This screenshot of Hulu’s NewFronts portion of their website shows some of its brand content work for 2014 [13].

Back in October it was reported that CEO Mike Hopkins was considering reducing the amount of advertisements that pop up on Hulu Plus [14]. No definitive answer has been issued as to whether or not this will happen. Some executives within the company encouraged the idea due to statistical data suggesting the company’s heavy ad usage. In a study conducted by Comscore in December 2013, Hulu showed users 82 ads per month, while YouTube monthly total for ads seen by users was about 32 [15].

Photo courtesy of app advice.com. This picture shows the Hulu app on an iPhone. There’s a “free” selection of videos as well as the possibility of upgrading to Hulu Plus, as seen in the upper-left hand corner.

Apple‘s decision back in 2011 to receive 30 percent of each Hulu Plus subscriber’s monthly bill was finally justified this year. In early October it was confirmed that Hulu’s most recent update made it compatible with iOS 8 and on the iPhone 6 and iPhone 6 Plus. The Hulu in-app update also gives users the ability to subscribe to the Hulu Plus service as soon as they open the app [16]. which means that Apple takes over the billing relationship for those customers.

Hulu also confirmed in late October that it has renewed its distribution deal with Viacom. In the newest deal was the agreement to continue streaming shows like Comedy Central’s “The Daily Show with Jon Stewart” and “Workaholics,” MTV scripted shows “Awkward” and “Happyland,” and numerous Nickelodeon shows due to the desire for a more expansive selection for kids [17].

More Content Updates

After they were cancelled by ABC, comedy shows Selfie and Manhattan Love Story have been picked up by Hulu [18]. Selfie’s creator Emily Kapnek tweeted the news out on November 20. Kapnek also said that the show’s six remaining un-aired episodes would also immediately be made available on Hulu.

Photo courtesy of guardianlv.com.

Hulu will also now stream “HuffPost Live Conversations” as agreed upon between Hulu and the Huffington Post’s digital video branch last month [19]. The deal, which Hulu hopes will increase its informative news display, will span three years.

Original Content Updates

Photo courtesy of liljas-library.com

Among the many items offered on Hulu are some shows created originally for Hulu. Hulu’s original content selection received a huge boost when the company issued a straight-to-series order for a show based on a Stephen King novel. J.J. Abrams’ Bad Robot Productions will produce 11/22/63, which was originally written by King in 2011 [20]. The intense, thriller will revolve around a teacher that has to travel back to 1963 to stop Lee Harvey Oswald from assassinating then-president John F. Kennedy.

Photo courtesy of imdb.com

Due to its increasing popularity, the company has decided to bring back Hulu Original “The Wrong Mans” for a second season [21]. A joint venture between Hulu and BBC Comedy, the show will return with four brand-new episodes that pick up with characters Phil Bourne (James Corden) and Sam Pinkett (Matthew Baynton), who were assumed to be dead, coming back and venturing off on some journey across the world. The season premieres on December 24.

Hulu has also started planning for 2015 with news of another original content piece [22]. The company ordered a new TV show called Difficult People to begin production early on next year. The show comes with executive producers Amy Poehler and Dave Becky, and Billy Eichner and Julie Klausner will star in Difficult People [23].

Sources

[1] Hulu Company Logo, thenextweb.com, RT: 11/29/2014

[2] Hulu Company Description, Bloomberg Businessweek, RT: 11/29/2014

[3] Hulu Executives, Hulu.com, RT: 11/29/2014

[4] Hulu Documentaries, Hulu.com, RT: 11/29/2014

[5] Hulu Original Programming, Hulu.com, RT: 11/29/2014

[6] Hulu: The IPO That Never Happened, Inside Business 360, RT: 11/29/2014

[7] A Big 2012, Hulu.com Blogs, RT: 11/29/2014

[8] Hulu 2012 Breakdown, Gigaom, RT: 11/29/2014

[9] Hulu 2013 Breakdown, Subscriptioncontent.net, RT: 11/29/2014

[10] Hulu 2013 Sales, Bloomberg, RT: 11/29/2014

[11] Walt Disney’s 2013 Fiscal Year, Walt Disney’s 2013 Annual Fiscal Report, RT: 11/29/2014

[12] Farmed and Dangerous, Tubefilter, RT: 11/29/2014

[13] Hulu Restructures Branded Content Plan, adage.com, RT: 11/29/2014

[14] Hulu CEO Mulls Cutting Number of Ads, NYPost, RT: 11/29/2014

[15] Hulu Plus May Cut Back Ads, Cynopsis Media, RT: 11/29/2014

[16] Hulu Makes Peace With Apple’s 30 Percent Cut, Gigaom, RT: 11/29/2014

[17] Hulu-Viacom, Variety, RT: 11/29/2014

[18] Hulu Picks Up ABC-Cancelled Shows, Deadline, RT: 11/29/2014

[19] Hulu Adds HuffPost Live Videos, Huffington Post, RT: 11/29/2014

[20] Hulu Orders New Show Based on King Novel, Hollywood Reporter, RT: 11/29/2014

[21] The Wrong Mans Back on Hulu, The Futon Critic, RT: 11/29/2014

[22] Hulu Picks Up Difficult People, comingsoon.net, RT: 11/29/2014

[23] Hulu Orders New Show, TV Series Finale, RT: 11/29/2014

Cablevision

Link

by Steven Spohr

Summary

Source – Cablevision.com

Founded in 1973, Cablevision Systems Corporation is a leading telecommunications company that primarily offers television, phone, and Internet services to millions in the NY metropolitan area. Initially serving a mere 1,500 customers on Long Island, Cablevision has since expanded to offer WiFi, a leading local newspaper, and business communications solutions to its over 3 million subscribers. Former properties include Madison Square Garden and Rainbow Media Holdings. [1]

Source – Optimum.com

Cablevision’s television, phone, Internet, WiFi, and business solutions all operate under the ‘Optimum’ brand name. These include (but are not limited to) –

Optimum TV – exclusive home of News 12 Networks, a series of local news channels
Optimum Voice
Optimum Online
Optimum WiFi
Optimum Lightpath – a “leading provider of integrated business communications solutions that meets the needs of larger companies” [1]

Source – www.newsday.com/

Cablevision also owns Newsday Media Group, which runs two local papers. Newsday is a Pulitzer Prize-winning daily newspaper that has been in circulation since 1940. Over 70% of Long Island adults read Newsday, and its articles and reporting have won numerous awards and made it the top paper on Long Island. To provide the most local news possible, Newsday works closely with MSG Varsity (part of the News 12 Networks) to provide detailed coverage of local high school and college sports. amNewYork offers a quick read of city news and events. In addition to the papers, NMG owns Star Community Publishing, which producers weekly shopper publications in Long Island and Queens. It is the largest publisher of its kind in the Northeastern United States. [2]

Leadership

The Dolan family founded Cablevision and continues to lead the company today. Key personnel include [3] –

Charles Dolan – Founder and Chairman / Source – Sean Smith, The Boston College Chronicle

James Dolan – Chief Executive Officer / Source – Al Iannazzone, Newsday.com

Kristin Dolan – Chief Operating Officer / Source – Variety.com

Brian Sweeney – President / Source – POST Online Media

Gregg Seibert – Vice Chairman and Chief Financial Officer / Source – Business Wire

Hank Ratner – Vice Chairman / Source – The Madison Square Garden Company

Financials

A detailed map of Cablevision’s stock pricing in 2014. / Source – Yahoo! Finance

2014 has seen Cablevision’s stock (CVC) prices gradually increase throughout the year. Starting the year at $17.22/share, CVC stock stands at $20.32/share as of November 29th. February 3rd saw the year’s low of $15.85. Prices peaked in late July, mid-September, and late November. [4]

The following financial information is from Cablevision’s Third Quarter 2014 Results.

Net revenue increased 3.7% to $1.62 billion.
Cable advertising revenue grew 6.8%
Average Monthly Cable Revenue per Customer increased 5.7% to $154.50/customer/month. [5]

These figures represent a continued loss of subscribers for Cablevision across the board. Between satellite TV providers, rival phone companies, and the public’s shift to watching TV online, Cablevision’s audience is becoming fragmented. The company chose to increase its subscription rates in response to decreasing numbers, which is represented by the net revenue and AMCR/C increases. [6]

Recent News

The latter half of 2014 has been a busy one, with notable hirings, financial news, legal troubles, and more.

August 4th

August 4th saw Cablevision’s announcement that it has hired David Dibble as Chief Technology Officer, a newly-created role. Dibble is formerly of Yahoo!, and his hiring is part of Cablevision’s efforts to “become the premier connectivity provider in the market, delivering a peerless customer experience”. [7]

November 7th

A New York Times article revealed a major legal proceeding against Cablevision. The National Labor Relations Board has charged Cablevision CEO James Dolan with “illegally threatening to deny company technicians in Brooklyn a pay increase unless they voted to quit their union”. The NLRB also charged Cablevision itself with “illegally [undermining] the union’s representation of those workers by sponsoring a nonbinding poll to determine whether they wanted to leave their union”, while some workers reported they were being ‘spied on’ during the vote. Federal law states that such a vote can only be conducted by the labor board, not the company. CEO Dolan fired back, calling the NLRB “a tool of Big Labor” and questioning the validity of its findings. The case is ongoing, and Cablevision has stated it will appeal to federal courts, if necessary. [8]

CEO Dolan has plenty of reasons to be frustrated, especially with his ongoing legal troubles with the National Labor Relations Board. / Source – ESPN.com

November 11th

Cablevision teamed up with Time Warner Cable to release the first ever “New York Television Audience Insights Report”. The report sampled the 3.5 million subcribers of Cablevision and TWC in the New York area, which is half of the TV homes in the region. Its aim was to help advertising and marketing departments and companies get better value out of their advertising purchases. Some key findings include –

74% of all TV programming watched was outside of traditional TV ‘prime time’ (8-11PM).
On average, a subscriber will only watch 25 channels in a month.
a whopping 90% of all viewing comes from a mere 100 channels. [9]

These new insights will help create better statistics for TV viewership and aid advertisers in spending money more efficiently.

November 18th

New York City Mayor Bill de Blasio announced that the city is planning an extensive new WiFi network across the five boroughs. The project, dubbed LinkNYC, would provide not only free WiFi, but also no-cost domestic calling and video chat. The 10,000 hotspot system would replace the city’s decaying network of archaic payphones and operate completely with money generated through advertising. Projected to cost around $200 million, LinkNYC would bring in over $500 million over the next twelve years, according to city officials.

This announcement led some to think Cablevision’s Optimum WiFi network would be threatened by this new, massive competition. Cablevision officials have not only dismissed these musings, but have actively worked with New York City on a number of initiatives, possibly including LinkNYC itself. [10]

Mayor-Elect De Blasio Makes Announcement

Mayor de Blasio’s ambitious project looks to dramatically improve WiFi services within the five boroughs. / Source – PIX 11

November 22nd

The Lewisboro Ledger revealed that Cablevision has a new deal with the town of Lewisboro (Westchester County). The deal, which primarily concerns franchising fees, has a number of key improvements –

Over $270,000 in new franchising fees are expected in 2015.
Free cable would be provided to 16 municipal and school buildings, including the public library.
New offers would include a senior discount for those aged sixty-five and older.
Town Board meetings would become available for live-streaming.
The town’s parks and baseball fields will become WiFi-equipped. [11]

November 25th

Kids video-on-demand network Kabillion announced a carriage deal with Cablevision. Kabillion, which is the only independently-owned VOD network ranked in the Top 10 Kids Free On Demand list, will now reach over 50 million homes nationwide. The deal is beneficiary to Cablevision too, as Kabillion reports views exceeding 65 million in 2014. [12]

Bibliography

Hulu

Posted on April 21, 2014 by Caroline Soss

By Caroline Soss

Photo courtesy of: [1] www.crunchbase.com

ADDRESS

12312 West Olympic Boulevard
Los Angeles, CA 90064 [2]

CONTACT

Phone (310) 570-4700
Website www.hulu.com
Twitter @hulu

PROFILE

Hulu is an over-the-top video service provider streaming on-demand programming from NBC, ABC, A&E, AMC, FOX, The CW, MTV and more.

Hulu offers advertisement-supported free programming with limited commercial interruption on its website Hulu.com. Regular advertisers include Johnson & Johnson, McDonald’s, Microsoft, GEICO and Target.

Photo courtesy of: [4] www.vulture.com

For a monthly fee of $7.99, Hulu Plus subscribers can stream unlimited premium and exclusive content from any Hulu+ enabled device. These devices include smart televisions, game consoles, smartphones/tablets and media players like Apple TV and Roku [3].

Hulu delivers over 70,400 hours of video from 514 different content partners [5]. Hulu streams popular TV shows such as FAMILY GUY, SCANDAL, THE VOICE, PARKS AND RECREATION, SATURDAY NIGHT LIVE, THE DAILY SHOW WITH JON STEWART [6] and more than 800 films from The Criterion Collection [7].

Photo courtesy of: [6] www.hulu.com

Hulu also produces its own original content like DEADBEAT, EAST LOS HIGH, THE AWESOMES and THE HOTWIVES OF ORLANDO [8].

Watch Hulu’s promo for their 2014 Originals here. Video courtesy of: [9] www.hulu.com.

Hulu.com was launched in 2008 as a joint venture between Comcast’s NBCUniversal and News Corporation [10]. Today, NBCUniversal, The Walt Disney Company’s Disney-ABC Television Group and 21st Century Fox’s Fox Broadcasting Company together own Hulu’s online subscription service [11].

As of February 2014, Hulu reported more than five million Hulu+ subscribers and thirty million monthly free service users [12] with over four billion videos streamed in 2013 [13].

KEY EXECUTIVES

CEO Mike Hopkins, photo courtesy of: [14] www.engadget.com

Last October, Hulu replaced its acting CEO with Mike Hopkins, former President of Distribution at Fox for five years [14]. Within weeks of joining the company, Hopkins hired Disney’s Elaine Paul as CFO [11]. In February 2014, Hopkins hired NBC’s Peter Naylor as SVP of Advertising Sales [13] and Sony’s Tiam Lim as Chief Technology Officer [12]. In March 2014, Disney’s Tim Connolly joined the company as Head of Distribution [15]. In April 2014, Warner Bros.’ Craig Erwich was hired as Hulu’s SVP and Head of Content [16].

FINANCIALS

Hulu is a privately held company and not required to publicly release its financial information. However, CEO Mike Hopkins reported Hulu earning one billion dollars in annual revenue at the end of last year [17]. In 2013, Hulu’s owners (Comcast, Disney and 21st Century Fox) also dropped offers to sell Hulu and instead invested $750 million dollars into the company [11].

Photo courtesy of: [18] www.techcrunch.com

FOCUS IN THE U.S.

In February 2014, Hulu sold its Japanese subsidiary to Tokyo-based Nippon Television Network Corporation. Since 2011, Hulu had streamed 13,000+ videos from fifty different American and European content providers to Japan. While Hulu will continue to make its content and brand available for use by Nippon TV as well as provide infrastructure service to the Japanese company, Hulu will focus on the U.S. rather than internationally [19].

MULTI-PLATFORM

Hulu aims to operate on all types of platforms with 50% of Hulu+ subscribers streaming solely on devices [17].

Photo courtesy of: [21] blog.hulu.com

In April 2014, Amazon.com launched Amazon Fire TV – the company’s new set-top box/game console hybrid positioned to replace media players like Apple TV, Roku and Xbox [20].

Amazon Fire TV streams not only Amazon’s own online video subscription service (Amazon Prime) but also partner on-demand services, including Hulu Plus. Hulu promises the “most enhanced and updated version of the Hulu Plus Living Room experience on Amazon Fire TV” [21]. Further, Amazon added Hulu Plus to the list of services available through voice search by speaking into the Fire TV remote – making Hulu even easier to utilize on this new platform [22].

NEW CONTENT

Hulu is continuing to grow its content library with both current season television and original programming [17].

Photo courtesy of: [23] blog.hulu.com

In April 2014, CEO Mike Hopkins announced Hulu will be exclusively streaming NBCUniversal-produced THE MINDY PROJECT and Golden Globe-winning comedy BROOKLYN NINE-NINE as well as popular series like KEEPING UP WITH THE KARDASHIANS and TOP CHEF. These high-in-demand hit programs will not be available to competitors Netflix or Amazon Prime, ultimately giving Hulu monopoly control over more content [23].

Hulu also recently acquired the rights to stream ELEMENTARY, the highly rated CBS drama starring Jonny Lee Miller and Lucy Liu [24], and popular CBS classics like THE BRADY BRUNCH and CHEERS.

Photo courtesy of: [25] blog.hulu.com

Hulu is expanding its library of popular TV shows from past decades [25]. This may be a tactic to keep fairly older viewers, who grew up with this content, entertained; 60% of Hulu subscribers fall between the ages of 18 and 49 years old with an average age of 39 [26].

Photo courtesy of: [26] www.hulu.com/advertising

However, the Nielsen Company will continue excluding broadband-only households, a large total of Hulu Plus viewership, in the ratings for the 2014-2015 television season [27].

ORIGINAL CONTENT

Hulu developed twenty original series in 2013 and plans to launch twenty more this year [28]. Hulu’s original shows THE AWESOMES, BEHIND THE MASK and THE WRONG MANS were among the top ten weekly shows watched on Hulu when they aired in 2013 and were all recently renewed for another season in 2014 [17].

New in 2014, Hulu’s original comedy series DEADBEAT, starring Tyler Labine, is receiving strong reviews from Variety, the New York Post and the Philadelphia Inquirer since its premiere [29]. All ten episodes of the show’s first season were uploaded to Hulu on April 9th, 2014, and only hours later DEADBEAT as dubbed “Hulu’s best show yet” [30].

Photo courtesy of: [29] www.hulu.com

DEADBEAT follows Kevin Pacalioglu (Tyler Labine), a lazy stoner who can see the dead and becomes a freelance medium to pay his rent, helping ghosts move on to the afterlife by competing in eating contests and proposition their ex-girlfriends.

Watch the DEADBEAT series trailer here. Video courtesy of: [31] www.hulu.com.

Critics, however, argue that Hulu being owned by television companies may explain why competitor Netflix is still spending so much more than Hulu on original programming [32].

TV EVERYWHERE

In the past year, Hulu has hired 260 new employees to complete a staff of more than 725 members with plans to continue growing the company [17].

As public interest in more convenient Internet TV Everywhere services grows, analysts predict subscribers may more easily authenticate their pay services through a social media account like Facebook or Twitter – a business tactic that may be in Hulu’s near future [33].

SOURCES

[1] Hulu CrunchBase Profile. CrunchBase. RT: 4/18/14

[2] Company Overview of Hulu, LLC. Bloomberg BusinessWeek. RT: 4/18/14

[3] Hulu – About. Hulu.com. RT: 4/18/14

[4] “Streaming Scorecard: Is Hulu Plus Still the TV King?” Vulture. RT: 4/19/14

[5] “Hulu Names Warner Bros. TV’s Craig Erwich Head of Content.” Variety. RT: 4/18/14

[6] Hulu Popular TV Shows. Hulu.com. RT: 4/20/14

[7] “‘The Great Beauty’ Debuts Only on Hulu Plus.” Blog.hulu.com. RT: 4/19/14

[8] “A New Year With New Hulu Originals.” Blog.hulu.com. RT: 4/19/14

[9] Hulu Promos 2014 Hulu Originals. Hulu.com. RT: 4/20/14

[10] “Hulu Opens to Public.” Hulu.com. RT: 4/18/14

[11] “Hulu Hires Disney’s Elaine Paul as CFO.” Variety. RT: 4/18/14

[12] “A World-Class Builder Joins the Hulu Ranks.” Blog.hulu.com. RT: 4/18/14

[13] “A Big Sales Win – Welcome Peter Naylor.” Blog.hulu.com RT: 4/18/14

[14] “Hulu officially announces its new CEO, former Fox exec Mike Hopkins.” Engadget. RT: 4/18/14

[15] “Hulu Hires Disney’s Tim Connolly as Head of Distribution.” Variety. RT: 4/18/14

[16] “Hulu Original Series Chief Departs Amid New Programming Push.” The Hollywood Reporter. RT: 4/18/14

[17] “A Strong 2013.” Blog.hulu.com. RT: 4/18/14

[18] “The Second Screen Becomes The First Screen: Hulu Says 50% Of Its 5M Subscribers Use Devices Exclusively.” TechCrunch. RT: 4/18/14

[19] “Hulu Says Sayonara, Sells Off Japanese Unit to Nippon TV.” TechCrunch. RT: 4/18/14

[20] “Amazon Fire TV review: the set-top that tries to do everything.” Engadget. RT: 4/19/14

[21] “Hulu Plus on Amazon Fire TV.” Blog.hulu.com. RT: 4/19/14

[22] “Amazon Fire TV’s voice search expands to cover Hulu Plus and Showtime, but not Netflix.” Engadget. RT: 4/19/14

[23] “We’re Flipping Out for NBCU Library Shows Only on Hulu Plus.” Blog.hulu.com. RT: 4/19/14

[24] “Hulu Plus Acquires Subscription Video on Demand Rights for Popular CBS Drama ‘ELEMENTARY.’” Business Wire. RT: 4/19/14

[25] “More CBS Shows Coming to a Hulu Plus Screen Near You.” Blog.hulu.com. RT: 4/19/14

[26] Hulu Advertising. Hulu.com. RT: 4/18/14

[27] “Nielsen Capitulates, Agrees to Withhold Broadband Households from Local Ratings – For Now.” MediaPost. RT: 4/19/14

[28] Hulu Exclusive Series. HuluMovies. RT: 4/20/14

[29] Deadbeat. Hulu.com. RT: 4/20/14

[30] “‘Deadbeat’ Is Hulu’s Best Show Yet.” Flavorwire. RT: 4/19/14

[31] Deadbeat Series Trailer. Hulu.com. RT: 4/21/14

[32] “Netflix has nothing to fear from Hulu’s sad little content expansion.” BGR. RT: 4/20/14

[33] “Hulu’s Original Content Strategy Continues to Progress Steadily.” Adweek. RT: 4/20/14

Zynga

Posted on March 15, 2014 by Matthew Porter

: By Matt Porter

Zynga Logo [1]

Contact

699 8th Street San Fransisco, California 94103

Facebook: Zynga

Twitter: @Zynga

YouTube: ZyngaNetwork

Key Executives [2]

Mark Pincus: Founder, CPO, Chairman of the Board of Directors [3]

Don Mattrick: CEO [4]

Clive Downie: COO [5]

David Lee: CFO and CAO [6]

About [7]

Zynga Inc. is the world’s leading developer in games for social platforms. Zynga develops games for Facebook, Android, Apple, as well as their site Zynga.com. The company is best known for its franchises FarmVille, Zynga Casino, and Words With Friends. Their games are played by 100 million monthly consumers, and their games have reached over 1 billion people worldwide. However, Zynga has seen a steady decrease in active users since the company’s peak in Q2 2012 as seen in the chart below [8].

Zynga Daily Active Users Since 2009 [8]

Zynga has always stuck with the idea that games should be free and social. The main revenue for Zynga comes from advertisements. While the games are free for users, there is premium in-game content that users can purchase, creating another revenue stream for the company [13].

Zynga founded zynga.org, an organization using the social gaming platform to raise money for charity. The organization uses in-game purchases in games like FarmVille, and has used the proceeds to help with disaster relief in Haiti, Japan, and other countries [14].

History

Zynga Inc. was founded in 2007 by Mark Pincus and six other co-founders who are no longer with the company. Pincus founded the company with one mission: “connecting the world through games” [12]. Pincus founded Presidio Media in April 2007, but in July of 2007, changed the name to Zynga– a name to honor his American bulldog, Zinga [13].

Zynga started out on MySpace, during a time where other ad-based games saw success. Pincus was smart enough to predict that Facebook would be the future, and immediately shifted platforms for his brand new company. In 2007, Zynga released its first game, a free social poker game, for Facebook. In 2008, Zynga released Mafia Wars, a highly successful free-to-play game. Since then, the company has seen success with franchises such as Words With Friends and Farmville [13].

Finance

Zynga Inc. went public in 2011 and saw an early increase in stock value. However, as many of their consumers moved to mobile device, and their online games saw less active users, the value decreased [11]. The company saw a loss of $25.2 million, which is an average of three cents per share. They saw a smaller loss than they did in 2012 however, in which the company lost $48.6 million, or six cents per share. Their sales also dropped in Q4 2013 by 43%, from $311.2 million to $176.4 million [11]. Unfortunately, the financial reports for Q1 2014 will not be released until April 23. However, Zynga’s stock value rose from January to March, and since March 12, has been slowly declining. The value’s peak this quarter was at 5.29 per share on March 12. Currently, it is just over 4.00 per share [9].

Zynga Stock Value Q1 2014 [9]

According to analysts, the reason for this is that Zynga’s main competitor, King Digital, went public in mid-March [10]. King Digital produced the popular game Candy Crush and while their IPO was a dud when they went public on March 26, Zynga stocks were affected by the competitor’s decision to go public.

Acquisition of NaturalMotion

Natural Motion Logo [15]

Zynga acquired NaturalMotion, a United Kingdom-based gaming company, on January 30, 2014. NaturalMotion has developed the games CSR Racing and Clumsy Ninja, among others. The deal involved $391 million dollars and 39.8 million shares in Zynga stock [16].

NaturalMotion co-founder and CEO Torsten Reil e-mailed his staff the day of the acquisition the following: [17]

“We are excited by this opportunity – it allows us to continue on our path whilst fast-tracking important areas such as scalable server infrastructure, live game operations and network cross promotion at scale.”

Kim-Mai Cutler of Tech Crunch believes that the deal was very smart for Zynga and that it will be beneficial because “Zynga gets a good portfolio of current and upcoming games, a character with real franchise potential in Clumsy Ninja, a middleware business and a 260-person gaming company that is culturally focused on quality” [16].

Corporate Structural Change

Mark Vranesh, former Zynga CFO and CAO [18]

Zynga announced on April 10 that its veteran CFO and CAO, Mark Vranesh, would be leaving the company. Vranesh had worked for Zynga for six years, and became the CFO in 2012 [19]. Replacing him was David Lee, the senior vice president for enterprise finance at Best Buy. Lee officially started working on April 14, reporting directly to CEO Don Mattrick. Vranesh will be helping Lee through the end of April to ensure a smooth transition for the company [20]. It is not clear at this time where Vranesh will take his career next.

2014 Title Releases

Riches of Olympus Logo [21]

Riches of Olympus (February 6, 2014)

Developed by the Zynga Casino team, Riches of Olympus is a mobile slot-machine game emulating Las Vegas style and quality. The game is available on the Apple Store, as well as Google Play. According to the official Zynga press release, the game will feature innovative mobile slot mechanics, such as sticky wilds, mega stack symbols, unique reel arrays and burst wilds [22].

Riches of Olympus screenshot [23]

Hit it Rich! Ted (March 13, 2014)

Hit it Rich! Ted screenshot [24]

Hit it Rich! is Zynga’s flagship social slot franchise. The game features addictive gameplay and releases different versions that include characters from popular films, television shows, etc. In March, Zynga released a version of Hit it Rich! feauring Ted, the talking stuffed bear from the popular R-rated comedy [24]. This was an interesting choice of a character, as Ted was released in 2012 and its sequel is not due until 2015.

Hit it Rich! FarmVille (April 10, 2014)

Hit it Rich! FarmVille 2 screenshot [25]

Hit it Rich! FarmVille follows the same philosophy of the previously mentioned Ted edition, however this edition of the popular Zynga game promotes their own brand. This title was released just a week before the FarmVille 2 mobile game. Together the two franchises had reached 750 million users, so it was a logical step to combine the two [25].

FarmVille 2: Country Escape (April 17, 2014)

FarmVille 2: Country Escape on iPad [26]

Zynga released FarmVille 2: Country Escape, the first mobile-entry in the popular FarmVille franchise. The game was built from the ground up for the mobile experience, with touch controls designed to ease the use of planting crops and interacting with animals. Users manage their own farms, can visit their friends’ farms, and send crops and animals to connected users. For the first time the series’ history, users can play the game without an internet connection. The title is available on the Apple Store and Google Play [26].

Watch the trailer for FarmVille 2: Country Escape

Celebrations

Words With Friends turns five. [27]

2014 marked the fifth year anniversary for the popular Zynga title, Words With Friends. Since its conception in 2009, the title has had as many as 55 million matches going on in a single moment [27]. This game is essentially a social version of Scrabble, allowing players to connect around the world and take turns earning points for placing words on a virtual board. FarmVille will turn five this year as well [28]. The company has been celebrating the birthday now that the latest FarmVille title has released. In addition to the milestone of their titles, Zynga has made history of its own. Edwin M. Lee, Mayor of the City and County of San Fransisco named April 18, “Zynga Day” [28].

The Future

Under CEO Don Mattrick, who formally worked with Microsoft and Xbox, it is clear that Zynga is refocusing on the games that make the company unique. The acquisition of NaturalMotion was a smart move to help strengthen their game catalog, and hopefully this and the corporate restructuring can boost them over their competitors.

Sources

[1] Zynga Logo Image

http://images.businessweek.com/ss/09/11/1112_most_intriguing_companies/image/020_zynga.jpg

[2] Zynga Leadership Team Members

http://company.zynga.com/about/leadership-team/zynga-leadership-team

[3] Mark Pincus Photo

http://i.forbesimg.com/media/lists/people/mark-pincus_416x416.jpg

[4] Don Mattrick Photo

http://cdn2.independent.ie/business/article29286054.ece/d6e7a/ALTERNATES/h342/FIN_20130522_BBW_041_27682355_I1.JPG

[5] Clive Downie Photo

http://i0.wp.com/allthingsd.com/files/2013/10/Clive-Downie_1-319×480.jpg?resize=319%2C480

[6] David Lee Photo

http://venturebeat.files.wordpress.com/2014/04/david-lee_zynga-cfo_final-headshot.jpg

[7] About Zynga

http://company.zynga.com/about

[8] Zynga Daily Active Users

http://www.statista.com/statistics/193422/daily-active-users-of-zynga-since-2009/

[9] Zynga Inc. Stock Chart

http://finance.yahoo.com/echarts?s=ZNGA+Interactive#symbol=ZNGA;range=3m

[10] Why King Digital’s IPO will hurt Zynga

http://www.thestreet.com/story/12541345/1/why-zynga-znga-is-tumbling-on-monday.html

[11] Zynga Names David Lee Financial Chief

http://online.wsj.com/news/articles/SB10001424052702303603904579493833027723694

[12] Zynga’s Story

http://company.zynga.com/about/our-story

[13] Zynga History

http://venturebeat.com/2011/12/12/zynga-history/

[14] History of Zynga.org

http://zynga.org/about/history/

[15] Natural Motion Logo

http://wwwtemp.naturalmotion.com/wp-content/uploads/2012/04/NM-Games-Logo1.png

[16] Zynga Buys NaturalMotion

http://techcrunch.com/2014/01/30/zynga-naturalmotion/

[17] NaturalMotion Company E-mail Update

http://blog.zynga.com/2014/01/30/naturalmotion-update/

[18] Mark Vranesh photo

http://socialtimes.com/files/2012/11/mark-vranesh.jpg

[19] Zynga names David Lee new CFO

http://www.foxbusiness.com/industries/2014/04/10/zynga-names-david-lee-new-cfo/

[20] Zynga CFO Mark Vranesh Will Leave the Company Next Month

http://www.gamasutra.com/view/news/215261/Zynga_CFO_Mark_Vranesh_will_leave_the_company_next_month.php?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+GamasutraNews+(Gamasutra+News)

[21] Riches of Olympus logo

http://zlive-s3-assets.s3.amazonaws.com/5002520-5da29e3bf3-450×215.png

[22] Zynga Casino Launches Riches of Olympus

http://blog.zynga.com/2014/02/06/zynga-casino-launches-riches-of-olympus/

[23] Riches of Olympus Screenshot

https://lh4.ggpht.com/_hsuF92FBC8h6bHuwkJq32E2IVyQJ4jNjoqn7n9TWNKo2cgQZmKrCdVBUSk0PiAVdw=h900

[24] Hit it Rich! Ted Edition

http://blog.zynga.com/2014/03/13/ted-joins-zyngas-hit-it-rich-slots/

[25] Hit it Rich! FarmVille 2 edition

http://blog.zynga.com/2014/04/10/rake-in-the-social-casino-dough-with-farmville-2-slots-in-hit-it-rich/

[26] FarmVille 2: Country Escape Press Release

http://blog.zynga.com/2014/04/17/farmville2countryescape/

[27] Five Years of Words With Friends

http://blog.zynga.com/2014/01/24/words-with-friends-celebrates-f-i-v-e-years-of-word-play/

[28] Zynga Day

http://blog.zynga.com/2014/04/18/zyngaday/

YouTube

Posted on March 15, 2014 by Blair Shulman

By Blair Shulman

Photo courtesy of techtipsworld.com [1]

YouTube, LLC

901 Cherry Ave.
San Bruno, CA 94066

Phone: +1 650-253-0000

Fax: +1 650-253-0001

www.youtube.com

A Brief History

It’s hard to believe that YouTube is only 9 years old. The video sharing website was created in 2005 by former PayPal co-workers Chad Hurley, Steve Chen and Jawed Karim. Little did they know it would go on to be the third most visited site in the world after Google and Facebook. YouTube’s first video clip was posted in April 2005 and by November, users were sending up to 8 terabytes of data per day (which is the equivalent of the entire contents of a Blockbuster store). [2] This attracted the attention of Google who paid $1.65 billion in stock for the company in the fall of 2006. By then, the site was gaining more than 700 million views a week. Today, more video content is uploaded to YouTube in 60 days than all three U.S. television networks have created in 60 years. [2]

Key Executives

Chad Hurley (Advisor and Co-Founder) [3]

Chad Hurley (Former CEO, Advisor and Co-Founder) [3]

Steve Chen (Co-Founder) [4]

Jawed Karim (Co-Founder) [5]

Susan Wojcicki (Chief Executive Officer) [6]

Financial Statistics

In 2006, YouTube officially became a subsidiary of Google, Inc. in a $1.65 billion deal. Although Google has never released any specific numbers in regards to YouTube’s revenues, they do release numbers about their own growth, revealing some information about YouTube’s results. On April 16, 2014, Google released financial results for the quarter ending March 31, 2014. According to Larry Page, CEO of Google, Google’s revenue was $15.4 billion, up 19 percent year on year. [7] Site revenue, which represents sites Google operates (like Google.com, YouTube, and Gmail), generated revenue of $10.47 billion, or 68 percent of total revenue. That’s a 21 percent increase over last year. Network revenue, aka “Adsense,” did $3.4 billion in revenue, a four percent increase over last year. [8] YouTube uses Google AdSense to generate their automatic media advertisements that are targeted to site content and audience on both their mobile and desktop sites. Another focus of the report was Google’s desire to develop advertisements that facilitate brand-building, in particular on YouTube. According to the Chief Business Officer of Google, Nikesh Arora, nearly all Super Bowl advertisers this year also had paid spots on YouTube. “We’ve seen a trend of brands coming over to YouTube as an addition to their TV campaigns,” Arora says, “The real fun will begin when people do brand building campaigns starting on digital, including YouTube. This is definitely the Holy Grail.” [9]

In The News

Susan Wojcicki Named New CEO of YouTube: Susan Wojcicki, one of Google’s earliest employees and former Senior Vice President of Ads and Commerce, became the new CEO of YouTube in February of 2014. The 45-year-old mother of four replaced Salar “SK” Kamangar, who was the CEO of YouTube for just over three years. Before that, Salar ran day-to-day activities at Google and took over the CEO position from YouTube co-founder Chad Hurley in 2010. [10] Kamangar now stands as the Senior Vice President of YouTube and Video for Google.

Photo courtesy of marketingland.com [16]

Wojcicki joined Google in 1999 as the 16th employee, becoming the search engine’s first marketing executive. [11] In her various positions at Google, Wojcicki has overseen product management of AdSense, Google Book Search and Google Video. Prior to Google, she worked at Intel, Bain & Co. and R.B. Webber & Co. [11] This move most likely signals a desire on Google’s part to start monetizing YouTube and its advertising content in a big way, since Wojcicki’s previous positions at Google have been centered around managing its entire ad sales department. In Google’s own statement, CEO Larry Page said, “YouTube is a billion person global community curating videos for every possibility. Anyone uploading their creative content can reach the whole world and even make money. Like Salar, Susan has a healthy disregard for the impossible and is excited about improving YouTube in ways that people will love.” [12]

Screenshot courtesy of makerstudios.com [12]

Screenshot courtesy of makerstudios.com (click to enlarge) [15]

Disney Buys Maker Studios: The Walt Disney Company completed a deal on March 24, 2014 to pay $500 million to acquire Maker Studios. The deal could end up closing for as much as $950 million if specific growth targets are met by Disney. [13] Maker Studios is a YouTube multi-channel network that produces high-quality videos for some of the most “YouTube famous” users on the site such as PewDiePie and channels such as Epic Rap Battles of History. [13] Financed by venture capitalists and grants from YouTube, Maker Studios now operates over 55,000 channels, boasts 380 million subscribers and 5.5 billion views per month. [14] It’s not unclear why Maker Studios looked desirable to Disney. The YouTube video supplier can help promote Disney’s many characters and franchises to a young target audience. Maker can also serve as an example of how to successfully interact with the “raised-on-the-Web” generation. [13] When Maker succeeds, YouTube succeeds as well. This recent acquisition was a huge win for the YouTube, Maker and Disney families.

Turning YouTube Stars Into Real Celebrities: Welcome to the next major evolution of YouTube’s business. New YouTube CEO Susan Wojcicki has helped to devise a plan to propel YouTube users to the next level of stardom. YouTube is chock full of “stars” who broadcast their content to thousands of loyal subscribers every day. But how many of these stars can the public actually put a name and a face to? That’s why YouTube is spending millions on advertising to overcome this awareness challenge. Popular YouTube users will now be getting their own promotional TV spots and premium-priced ad rates as part of an effort to package online video stars like traditional TV celebrities. [17] The first stars to get the ads will be chef Rosanna Pansino and beauty gurus Michelle Phan and Bethany Mota. The ads will be shown on networks like The CW and ABC Family, local TV and billboards in New York and Chicago, Teen Vogue, Seventeen, Entertainment Weekly and even in NYC subways. [18] The ads are being developed by ad agency Co:Collective. One challenge Wojcicki notes is “trying to get advertisers who traditionally bought TV to understand the YouTube platform.” [18] But Wojcicki believes in patience, hard work and continual growth. “As the platform matures and we have better monetization, we want to be able to continue to grow the whole ecosystem in a way that’s good for advertisers, good for publishers and good for users,” Wojcicki said. [18]

YouTube user Michelle Phan’s homepage, boasting more than 6 million subscribers

Sources:

[1] YouTube Company Logo, techtipsworld.com, RT: 4/12/14

[2] “Brief History YouTube”, time.com, RT: 4/12/14

[3] Photo of Chad Hurley, politic365.com, RT: 4/12/14

[4] Photo of Steve Chen, twitter.com, RT: 4/12/14

[5] Photo of Jawed Karim, commons.wikimedia.org, RT: 4/12/14

[6] Photo of Susan Wojcicki, hub.jhu.edu, RT: 4/12/14

[7] “Google Inc. Announces First Quarter 2014 Results“, investor.google.com, 4/16/14, RT: 4/19/14

[8] “Google misses Q1 2014 earnings with $15.42 billion in revenue“, arstechnica.com, 4/16/14, RT: 4/19/14

[9] “Despite 19% Revenue Growth, Google Q1 Earnings Disappoint Investors“, forbes.com, 4/16/14, RT: 4/19/14

[10] “YouTube’s Chad Hurley to step down as chief executive“, theguardian.com, 10/29/10, RT: 4/19/14

[11] “Google Names Susan Wojcicki CEO of YouTube“, variety.com, 2/5/14, RT: 4/19/14

[12] “Google Confirms Ads & Commerce SVP Susan Wojcicki Is The New YouTube CEO“, techcrunch.com, 2/5/14, RT: 4/19/14

[13] “Disney Buys Maker Studios, Video Supplier for YouTube“, nytimes.com, 3/24/14, RT: 4/19/14

[14] “With Disney Buying Maker, Do All Big Media Companies Need To Up Their YouTube Game?“, forbes.com, 4/1/14, RT: 4/19/14

[15] Screenshot of Maker Studios website, makerstudios.com, RT: 4/19/14

[16] Photo of Susan Wojcicki’s tweet after being appointed CEO of YouTube, marketingland.com, 2/5/14, RT: 4/19/14

[17] “YouTube’s Big Plan to Turn Its Stars Into Real Celebrities“, wired.com, 4/16/14, RT: 4/19/14

[18] “Exclusive Interview: Susan Wojcicki’s Plan to Make YouTube ‘Stars’ Real-Life Famous“, adage.com, 4/14/14, RT: 4/19/14

Yahoo

Posted on March 15, 2014 by Samantha Ho

By Sam Ho

Yahoo Logo [1]

701 1st Ave, Sunnyvale, CA 94089

Phone: (408) 349-3300

Company Profile

As the world’s largest start up company, Yahoo is a global technology corporation that started as a simple search engine and has grown into a web portal at the global forefront of highly personalized, “daily habit” products and services. Whether through the Yahoo home page or their own personalized page, affectionately named My Yahoo, 800 million monthly users in 60 countries around the world have access to weather, mail, sports, finance, games, and many more powered through Yahoo services.[2]

Key Executives [3]

Marissa Mayer, CEO, President, and Director

David Filo, Co-Founder and Chief Yahoo

Ken Goldman, Chief Financial Officer

Kathy Savitt, Chief Marketing Officer

History

Founded in 1994 by two Stanford PhD candidates, David Filo and Jerry Yang, Yahoo initially began as a website, titled Jerry and Dave’s Guide to the World Wide Web, that listed David and Jerry’s favorite internet sites. After gaining heavy popularity, the two discovered that their little guide could become a successful business and renamed it. The web directory continued to change in the 1990s and diversified into a web portal to provide eager users with the services of Yahoo! Mail, Yahoo! Games, and Yahoo! Groups.[4] Adding weather, sports, and finance to the mix, the web portal became the center of daily habits. In 2005, it acquired the popular photo sharing service Flickr and its 1 million loyal and consistent users.[5] In 2013, it continued to expand its reach towards more active online users by buying the famous blogging site, Tumblr, for $1.1 billion.[6] Specializing in search, content, and communication tools, Yahoo is standing its ground at the forefront of technology.

1996 Yahoo Homepage [7]

2013 Yahoo Homepage [8]

Financial Snapshot

Publicly traded since 1995, Yahoo‘s stock (YHOO) is currently up 0.08% since its previous

Yahoo Financial Chart [10]

close at $36.38. [9] On April 15th, 2014, the Yahoo! Inc. reported its first quarter 2014 results in accordance with a live stream online. While the company’s stock has performed exceedingly well at the markets over the past two years, its revenues have failed to gain traction. The GAAP revenue for the quarter was $1.13 million, down 1% from the Q1 2013. The company’s quarterly GAAP net earnings also dropped by 20 percent to $312 million. Net earnings per share for the quarter were $0.29, down 17 percent.

Despite its poor marks compared to its Q1 2013 results, Yahoo made smaller successes in its display and search ad revenues, which make up 12.4% and 14.2% of its value respectively. Compared to the first quarter of 2013, its Q1 2014 GAAP display revenue of $453 million remained consistent because of the 7% increase in Number of Ads Sold. With Paid Clicks increased approximately by 6% and the Price-per-Click increased by about 8%, the 2014 GAAP search revenue of $445 million experienced a successful 5 percent increase compared to the first quarter of 2013. [11]

Making Changes

CEO Marissa Mayer at the 2014 Consumer Electronics Show [12]

The Comeback Kid: With 13 years of employment at Google, including the title of first female engineer at the company, it was only right for Marissa Mayer to set her sights on Yahoo. Named Yahoo CEO, President, and Director in July 2012, Mayer has been determined to lead Yahoo out of its 3rd place spot and into a place at the forefront of technology.[3] With about two years as evidence, she is well on her way after rolling out a new homepage, redesigning Yahoo Mail and saving Flickr from near death. As she continues to orchestrate more acquisitions for the company, such as her biggest move yet to buy Tumblr, Marissa Mayer is breaking Yahoo records and making strong steps towards modernizing the pioneer portal.[13]

Yahoo Advertising: Starting in 2014, Yahoo wants to place itself at the center of the online ad ecosystem with its latest creations: Yahoo Advertising and Yahoo Ad Manager. Launching under a new unifying brand, the idea of Yahoo Advertising aims to simplify a fragmented market. Buyers will be able to automatically buy across Yahoo’s various channels, including the Web, video, mobile, and Tumblr, all in a central interface called Yahoo Ad Manager. [12] Tapping into the

Yahoo Gemini – Mobile and Native Ads [14]

ever-growing 430 million mobile Yahoo users, Yahoo Gemini, a function within Yahoo Ad Manager, will be the first of its kind to combine mobile search and native advertising in one accessible solution.[14] The successful future of this new system is evident in the digital ads within Yahoo’s newly launched digital magazines, Yahoo Food and Yahoo Tech. Instead of a simple box in the corner, the native ads of each site are integrated and authentic, allowing consumers to treat each promoted brand as informative content. Yahoo’s belief that “storytelling aids brand retention” embodies the new shift towards fully integrated marketing and a push towards more successful ad sales. [15]

Yahoo Screen on Roku [18]

Yahoo Screen: Rivaling competitors such as Hulu, Netflix, and YouTube, Yahoo‘s video streaming service, Yahoo Screen, combines over 70 original web shows and a diverse array of content from partners such as Saturday Night Live, The Onion, GQ, ABC News, and Vogue.[16] In mid April 2014, Yahoo and Vevo announced that they will be expanding their partnership through a deal that will bring Vevo’s videos, live concert events, and other original programming to the Yahoo site. [17] In addition to new content, Yahoo Screen has been expanding the source through which its content is viewed. In 2013, the video streaming service launched its own mobile app for Apple iOS devices and soon followed that decision with its launch on the Apple TV. During its first quarter in 2014, Yahoo Screen launched its own channel on another home TV box, called Roku. Providing a new variety of content to eager users and new ways to receive their desired entertainment, Yahoo is slowly pushing its way into online video with much more focus and quality. [16]

The Future of Yahoo

Yahoo Smart TV [22]

As Yahoo works to repair and reorganize within its own systems, Marissa Mayer and the company are looking to journey outside of Yahoo‘s own boundaries, finding a place within Television. Yahoo is in talks to acquire News Distribution Network Inc., which could make Local TV news a big part of the online landscape.[19] In addition, Yahoo is rumored to have interest in producing its own TV content in competition with Netflix original programming.[20] Combined with its latest creation, Yahoo Smart TV, Yahoo hopes to bring its sphere of influence to the Televised world.

Yahoo Buys Aviate [23]

In many ways for the company’s CEO, mobile is the future. Delivering her first keynote at the Consumer Electronics Show in January 2014, Mayer started with an exciting announcement that Yahoo had acquired Aviate. With the technology to customize the Android’s smartphone home screen based on personal information, the company is looking towards its future in the mobile industry. While Apple owns the iOS mobile operating system and Google owns Android, Aviate could be Yahoo’s golden ticket. [21]

Sources

[1] Yahoo Logo RT: 19 April 2014

[2] Yahoo Corporate Information RT: 16 April 2014

[3] Yahoo Executive Team RT: 16 April 2014

[4] Silicon Valley Historical Association: Yahoo! Inc. From 2008. RT: 17 April 2014

[5] “Flickr At 10: 1M Photos Shared Per Day, 170% Increase Since Making 1TB Free”. From 10 Feb 2014. RT: 18 April 2014

[6] “Yahoo buys Tumblr, promises to not ‘screw it up'”. From 20 May 2013. RT: 17 April 2014

[7] 1996 Yahoo Homepage Image. RT: 19 April 2014

[8] “Yahoo’s new homepage is a good first step” From 20 Feb 2013. RT: 17 April 2014

[9] YHOO Profile. RT: 19 April 2014

[10] “Yahoo sales sag with mixed results in ads” From 15 April 2014. RT: 18 April 2014

[11] Yahoo Reports First Quarter 2014 Results. RT: 19 April 2014

[12] “Yahoo Reboots Ad Business in Attempt to Own Ad Tech”. From 7 Jan 2014. RT: 18 April 2014

[13] “How CEO Marissa Mayer turned around Yahoo”. From 16 July 2013. RT: 19 April 2014

[14] “Yahoo’s ‘Gemini’ Pairs Native Ads and Mobile Search”. From 19 Feb 2014. RT: 19 April 2014

[15] “Reaching Consumers in a Fragmented Entertainment Marketplace”. From 8 April 2014. RT: 19 April 2014

[16] “Yahoo’s Push Into Video”. From 16 April 2014. RT: 19 April 2014

[17] “Yahoo Expands Partnership with Vevo”. From 14 April 2014. RT: 19 April 2014

[18] “New on Roku: Yahoo Screen”. From 24 March 2014. RT: 19 April 2014

[19] “Yahoo Could Finally Bring Local TV News to the Internet”. From 2 April 2014. RT: 19 April 2014

[20] “Yahoo’s Venture into TV? Unattractive Option, Good Choice”. From 8 April 2014. RT: 19 April 2014

[21] “Marissa Mayer wants Yahoo to be big in mobile. Meet Aviate”. From 9 April 2014. RT: 19 April 2014

[22] “Yahoo’s Plan to Save or Kill Television”. From 9 Jan 2014. RT: 20 April 2014

[23] “Yahoo acquires Aviate to build context-sensitive Android apps”. From 7 Jan 2014. RT: 20 April 2014

Netflix

Link

By Carly Goldstein

Company Logo

100 Winchester Circle

Los Gatos, CA 95032

(408) 540-3700

www.netflix.com

Executives [1]

Courtesy of Netflix.com

Reed Hastings, Founder and CEO

Courtesy of Netflix.com

Kelley Bennett, Chief Marketing Officer

Courtesy of Netflix.com

Tawni Cranz, Chief Talent Officer

Courtesy of Netflix.com

David Wells, Chief Financial Officer

About [2]

Courtesy of internettrailer.com

As a leader in internet television, Netflix not only allows its members to instantly stream movies and television for a monthly fee, but also provides customers with original content. Users can also choose to select and receive content through the mail for an additional monthly cost. Competitors of the service include Hulu and Amazon.

History [3]

Courtesy of http://smokingsection.uproxx.com/

Netflix was founded in 1997 by Reed Hastings and Marc Randolph. The company provided online movie rentals that would be delivered to the costumer’s home within several business days. In 2007, Netflix introduced streaming, allowing subscribers to instantly watch movies and television shows on their electronic devices. Netflix began to introduce original content in 2012. As of 2013, the service has over 40 million users globally.

Financials

Domestically, the company reported an increase in net additions of 2.33 million in the fourth quarter, 14% above the 2.05 million of the same quarter of the previous year.[4] Internationally, Netflix reported a net addition of 1.74 million in the fourth quarter, increasing the number of international members to 10.93 million. [4] In the coming months, Netflix aims to broaden its international presence by offering its services in Germany. [5]

Courtesy of Google Finance

In April of 2013, the company tested a new membership plan in which subscribers could simultaneously stream on four different devices for $11.99 per month. [6] Netflix continues to adjust their prices and aims to offer three different membership options for new members in the coming year. The options include the $11.99 price as well as a $6.99 subscription for those who only require instant streaming on one device.[4]

The first quarterly report of 2014 will be shared on April 21st. However, consensus estimates a dramatic increase from the first quarterly report of 2013. [7] Currently, the Netflix stock rests at 346.73.

Original Content

Courtesy of http://o.aolcdn.com/

Beginning in 2012, Netflix has produced a variety of original programming including television series, documentaries and children’s programs. Lillyhammer, a Norwegian drama starring Steven Van Zandt, is considered Netflix’s first series and premiered on February 6, 2012.[8] Other original content includes The Ropes, Bad Samaritans, Hemlock Grove, and Turbo FAST. The site has also premiered a variety of documentaries and comedy specials such as Mitt and The Square. The later was the first movie of its kind to be nominated for an Academy Award for best documentary. [9]

Courtesy of upload.wikimedia.org

Netflix also produces material that no longer has a place on television. Several years after it’s cancellation, Arrested Development was resurrected for a fourth season on the streaming service in May of 2013. [10] In 2014, the season earned a Golden Globe nomination for Jason Bateman for best actor in a comedy series. [11] Netflix will also be reviving The Killing after it’s cancellation on AMC. [12] The show’s final season will premiere on the site some time this year.

Courtesy of upload.wikimedia.org

On February 1, 2013, Netflix released House of Cards. The show, based on the English television program of the same name, follows Frank Underwood, played by Kevin Spacey, a ruthless politician who does whatever it takes to gain more political power. House of Cards also stars Robin Wright and Kate Mara. The program received favorable reviews from critics, earning 3 Emmys and a Golden Globe after its first season[13], becoming the first show of its kind to do so.

As a result of the success of the first season, Netflix ordered a second season of House of Cards which was released on February 14, 2014. Utilizing Procera Network, it was reported that 15% of users of a particular internet service viewed the first episode within 14 hours of its release, an increase from the 2% of users who watched the first episode of the first season within the premiering weekend. [14]

10 days before the premiere of the second season, Netflix announced the renewal of House of Cards for a third season. [15]

Courtesy of www.galaticnewsone.com

Orange is the New Black premiered on Netflix on July 11, 2013. The program stars Taylor Schilling as Piper Chapman, a thirty-year old woman sentenced to 15 months in jail after she is convicted of crime committed ten years before. The show is based on a memoir by Piper Kerman of the same name. The show was nominated for a Golden Globe for best performance by an Actress in a drama television series, as well as a Grammy for its theme song. [16]

Netflix announced the premiere date of the second season of Orange is the New Black after the credits of the final episode of House of Cards. [17] The show’s second season is set to be available on June 6, 2014.

Looking Ahead

Courtesy of www.wired.com

Within this year, Netflix will be premiering numerous projects. Animated comedy, Bojack Horse, staring Will Arnett and Aaron Paul, will be released in the coming months.[18] As will Marco Polo, a adventure drama produced by The Weinstein Company.[19] The company will continue to show its interest in children’s programming when animated shows Puss in Boots, King Julien and Veggie Tales in the House are available for streaming later this year. [20] The second seasons of Orange is the New Black and Hemlock Grove will also premiere in June and July, respectively.

In 2015, Netflix will not only release its third season of House of Cards, but also release new original series. Science fiction drama Sense8, from the writers of The Matrix, will debut sometime in 2015. [21] Also set to be available for streaming in 2015, Narcos, a drama depicting the Medellin Cartel in Colombia, and Grace and Frankie a situational comedy staring Jane Fonda and Lily Tomlin. [22]

Courtesy of http://www.digitaltrends.com/

In February of 2014, it was announced that Disney will collaborate with Netflix to create four original series for Marvel heroes: Daredevil, Jessica Jones, Iron Fist and Luke Cage. The Marvel’s Defenders project will cost over $200 million over a three year span and film predominately in New York City. Filming will begin July of 2014 and premiere on Netflix sometime in 2015. [23]

Sources

[1] “Officers and Directors”. netflix.com. RT: 4/10/14

[2] “Company Overview” . pr.netflix.com RT: 4/11/14

[3] “Company Timeline”. pr.netflix.com RT: 4/11/14

[4] “Letter to Shareholders” . ir.netflix.com. January 22, 2014. RT: 4/11/14

[5] “Netflix Inc. Will Arrive in Germany”. Value Walk. April 16, 2014. RT: 4/18/14

[6] “Netflix Consumers Get Ready”. Bloomberg Businessweek. January 24, 2014. RT: 4/18/14

[7] “Earnings for Netflix Projected to Rise”. Forbes. April 16, 2014. RT: 4/18/14

[8] “Lillyhammer”. wikipedia.org. RT: 4/15/14

[9] “The Square Awards”. IMDB.com. RT: 4/15/14

[10] “New Arrested Development Season”. The New York Times. April 4, 2013. RT: 4/15/14

[11] “Golden Globes 2014”. Los Angeles Times. January 12, 2014. RT: 4/15/14

[12] “The Killing Shock”. Entertainment Weekly. November 15, 2013. RT: 4/16/14

[13] “House of Cards Awards”. IMDB.com. RT: 4/13/14

[14] “House of Cards Viewing Soars”. Variety. February 14, 2014. RT: 4/13/14

[15] “Netflix Renews House of Cards”. The Hollywood Reporter. February 4, 2014. RT: 4/13/14

[16] “Orange is the New Black Awards”. IMDB.com. RT: 4/13/14

[17] “Orange is the New Black Season 2 Date Revealed”. eonline.com. February 15, 2014. RT: 4/13/14

[18] “Netflix Adds Bojack Horseman”. Variety. December 11, 2013. RT: 4/18/14

[19] “Netflix Announces Pickup”. Variety. January 14, 2014. RT: 4/18/14

[20] “DreamWorks’ Puss in Boots”. videoink.com. March 13, 2014. RT: 4/18/14

[21] “Matrix Creators to Film Netflix Series”. Chicago Tribune. March 17, 2014. RT: 4/18/14

[22] “Jane Fonda, Lily Tomlin to Star in in Netflix Sitcom”. Los Angeles Times. March 19, 2014. RT: 4/20/14

[23] “Disney to Spend $200 Million on Marvel Series”. Variety. February 26, 2014. RT: 4/20/14

IAC

Posted on March 15, 2014 by Carlos Bonachea

By Carlos Bonachea

Courtesy of IAC Press Kit [1]

555 W. 18th St.
New York, NY 10011
Phone: 212-314-7300
Website: www.iac.com

Key Executives

Barry Diller - Chairman and Senior Executive, IAC & Chairman and Senior Executive, Expedia, Inc.Chairman and Senior Executive, IAC - Chairman and Senior Executive, Expedia, Inc.

Barry Diller – Chairman and Senior Executive, IAC & Chairman and Senior Executive, Expedia, Inc.
Courtesy of the official IAC website [2].

Executive Vice President and Chief Financial Officer Courtesy of the official IAC website

Jeff Kip – Executive Vice President and Chief Financial Officer
Courtesy of official IAC website [3].

Victor Kaufman – Vice Chairman, oversees all strategic planning, financial and legal matters.
Courtesy of official IAC website [4].

IAC remains at the forefront of internet commerce, communication, and media by strategically managing the investment, acquisition, and sale of some of the worlds most innovative companies [5]. IAC began as Silver King Communications Inc., a television company led by Barry Diller, who previously was in charge of Fox Broadcasting as well as Paramount Pictures prior to that. [6]

IAC now boasts over 1.3 billion total monthly visits amongst it’s network of sites and controls over 150 brands and products all at the cutting edge of web commerce and modern living. IAC has spawned six independent publicly traded companies – Expedia, TripAdvisor, HSN, Tree, Interval, and Live Nation (formerly Ticketmaster). Simply put IAC is the 9th largest network in the world and one of Fortune’s most admired companies in the internet services sector. [5] [7]

Some of the many brands owned by IAC.

Financials

From April 22 2013 to April 17, 2014 stock prices of IAC (IACI) have risen 55.2% from $44.25 a share to $68.67 a share, proving IAC’s value to it’s investors. [8]

2013 Q4 statements show that revenue for IAC is down 5% from 765.3M in Q4 2012, to 724.5M.

IAC Head Quarters in NYC Photo courtesy of Vimeo on Flickr.

IAC saw a 48% adjusted EPS growth from 0.7 in Q4 2012 to 1.04 in Q4 2013.

IAC also has enjoyed and increase in adjusted net income of 38% from 66.2 in Q4 2012 to 91.1 in Q4 2013.

Thus IAC has now entered its 19th consecutive quarter of double-digit operating income before amortization growth.

Financial Statements courtesy of IAC’s public quarterly report [9].

Media

Logo courtesy of IAC official Profile

Vimeo is one of IAC’s hottest commodities and a worthy innovator in the realm of web video and user generated content. Vimeo currently has over 100 million unique monthly users and over 22 million register users which provide content. Vimeo is known to be the best video player “in the galaxy” which attracts some of the best independent filmmakers. Though Vimeo is within the media branch of IAC which accounts for a relatively small portion of revenue compared to ‘web search and applications’ or the Match group the media prospects of IAC prove to be some of the most innovative. [11]

As of March 18 2014, Vimeo has acquired ‘Cameo‘ a video making app which the leaders at Vimeo say is going to be independently run much like the recent acquisition of Echograph about a year prior. This is very much inline with the philosophy of supporting new ideas which is so close to the core ideals of IAC. [10]
Another company in the Media branch is CollegeHumor which, thought it does not directly create a majority portion of IAC’s revenue, it has a huge impact in pop culture and the multimedia habits of the 18-14 demographic. It draws over 100 million monthly video views and the number 9 most subscribed to channel on youtube. [12]

Match

The Match group of IAC is comprised of all the the websites and brands which deal with dating and matching people together. Match.com being the primary website but also including many other brands. Meetic, the European leader in online dating, Chemistry.com, okcupid, and tinder. There are also some brands which specialize in helping advertisers find their audience.
Match.com recently made an exclusive partnership with Major League Baseball to further find matches based on team preferences. This joint effort can mean serious revenue for the Match group in future quarters. [13]
IAC in an effort to restructure some of the company for unknown reasons recognized Greg Blatt as the new Chairman of the newly created Match Group, on the Board of directors as of December 19 2013. This strategic moves serves as an indicator of the companies success in the Match department.

IAC thus far has proven to be a very innovative company which has harnessed the reach of its network to self facilitate more growth across company and brand lines. This innovative approach is reshaping not only pop-culture and the way we access media but the daily lives of the average person. IAC will continue to shape the way the internet does business and the way people interact. With projected financial statement the decrease in operating costs will lead to a great deal of profit in the following quarters which will more than likely prompt another large media acquisition given the highly increased capital which IAC now has.

Sources

[1] IAC Online Press Kit RET: 4/13/2014

[2] Official IAC Website– Bio Page on Barry Diller – Photo credit: Michele Asselin RET: 4/13/2014

[3] Official IAC Website– Bio Page on Jeff Kip RET: 4/13/2014

[4] Official IAC Website– Bio Page on Victor Kaufman RET: 4/13/2014

[5] Official IAC Website– Overview of Brands RET: 4/14/2014

[6] Official IAC Website– Timeline of company progress, acquisitions and sales RET: 4/15/2014

[7] CNN Money– IAC’s ranking as one of the world’s most admired companies by Fortune RET: 4/15/2014

[8] Google Finance– IAC share value from 4/22/13 – 4/17/14 RET: 4/15/14

[9] IAC public quarterly report– RET: 4/15/2013

[10] Re/Code– Article by Peter Kafka on the aquisition of Cameo by IAC’s media company Vimeo; published March 18 2014; RET: 4/11/2014

[11] Official IAC Website– Vimeo brand profile and overview RET: 4/13/14

[12] USA Today– Match.com partnership with MLB RET: 4/14/14

AOL

Posted on March 15, 2014 by Raven Irabor

By Raven Irabor

Photo Courtesy Of: Hot Digital News

Location:

770 Broadway

New York, NY 10003

United States

Phone: 1-212-652-6400

www.aol.com

Key Executives:

(Left to Right)

CEO/Chairman: Timothy M Armstrong

Exec. VP/Chief Financial Officer: Karen E Dykstra

Exec. VP/CEO: AOL Brand Group: Susan M Lyne

Exec. VP/Secretary/Gen. Cnsl: Julie M Jacobs

ABOUT AOL

Brief Overview:

AOL Inc is a brand company that focuses on producing original content that connects and engages its audience on a local and global scale.

History:

Originally known as Quantum Computer Services, AOL has been in the business of improving internet service for over 25 years. In 1989, the familiar epigram, “You’ve got mail” was introduced alongside its first instant messaging service. Due to an employee contest, Quantum Computer Services changed its name to AOL (America Online) in 1992. AOL first began expanding its products and services with its homepage that was launched in 1995. Over time AOL has acquired: Mapquest, CompuServe, ICQ, Moviefone, Netscape, AOL/Time Warner merge, Advertising.com, TechCrunch, AOL Huffington Post Media Group, Patch, Gravity, and many other companies. AOL made history in 2005 by becoming the first internet company to win an Emmy. In 2006, America Online officially changed its name to AOL and began offering its services free of charge. [1] [2]

AOL Inc. then and now [3] [4]

AOL: The Brand

FINANCIALS

Summary:

2013 Fiscal Overview

According to Armstrong, 2013 was AOL’s most successful year in the last decade. In the past year, AOL Inc revenue was $2.32 billion, an increase from $2.192 billion in 2012. This increase was predominately due to its growth in its advertisement business. AOL Inc. was able to come ahead in analysts’ estimated reporting of revenues but not of earnings. In 2013, it earned 43 cents per share while the estimation was 46 cents per share. The fourth quarter of 2013 shows a 13 percent increase of revenue in comparison to 2012’s fourth quarter. Subscription revenue declined by 10 percent, $156.7 million, in the fourth quarter. The anchor on AOL’s success was its newest acquisition, Patch. Due to major cutbacks and layoffs, Patch weighed down the company’s earnings for 2013. With the acquisition of Gravity, AOL is hoping for a better turn out for 2014. [5] [6] [7] [8]

WHAT’S BEEN GOING ON

The leaders at AOL Inc. are constantly looking at the realm of media and figuring out innovative ways to constantly push forward their presence in the industry. In the beginning of the year, Hale, an investment firm that specializes in distressed business, joined AOL Inc in the holdings of Patch. Patch was acquired by AOL in 2009. Armstrong had high aspirations for this company, but it gave back little financial return. The idea for Patch was that AOL would be able to use it as a platform to create a series of hyper-local news sites, which would then allow AOL to get its hands into local and even national advertisement [9]. Unfortunately, in April AOL agreed to sell its minority holding to Hale as it was not reaping the benefits it had expected [10]. While Patch failed to be AOL’s ticket to advertising revenue, its new project shall be its next venture into further success in the advertising world.

In March AOL announced that they plan to launch One. One will be an ad system/software that helps companies automate the process of buying and selling advertisements online. According to Armstong, “the move represents a switch in focus from original content to ad technology.” With this expansion, AOL will now be able to reach audiences that its original contest would not have reached. With AOL making $1.6 billion in ad revenue, Armstrong plans on taking full advantage of this new window of opportunity [11].

In a continuum of advertising ventures, AOL also announced in the beginning of the quarter of its acquisition of Gravity. Gravity is a content personalization start up venture. It works with online publishers to offer tailored customized content based on the activity of each visitor. Gravity’s technology will act as a catalyst in all of the areas of AOL Inc. to create more engaging, relevant and valuable experiences for its consumers, advertisers and publisher partners. [12]

Other than advertisements being part of the new wave of media experience, video has become another popular avenue. In April AOL announced its media makeover on its site. In an interview with Maureen Sullivan, president of aol.com, she talks about the overwhelming increase of video streaming. More and more AOL users are consuming more video based content. This caused for AOL to push more towards video. With content producing partners such as: ESPN, HSN, and Conde Nast, AOL will begin providing its users with more video content related to their previous searches. This will allow users to have a more personalized web experience and also allow advertisers to reach a more direct audience.

AOL has not completely left its focus on producing original content. In April, AOL announced the renewal of its four original web series:

CITY BALLET

HARDWIRED 2.0

THE FUTURE STARTS HERE

#CANDIDLYNICOLE

These shows have allowed AOL not only to reach the number one spot for premium curated network on the web, but also to give advertisers a whole different platform to reach consumers. AOL’s full slate of new original series for 2014 will be announced at the Digital Content NewFronts on April 29^th in Brooklyn, New York [13].

Since its spun off from Time Warner in 2009, AOL has been pressured by shareholders to make moves such as a patent deals. In April, AOL agreed to share and patent licenses to Microsoft Corp (MSFT). This deal has brought AOL to an increase of 43% the day of the closing, the biggest one day increase since 11/25/09. The arrangement, which will give more than 800 patents and related applications to Microsoft, AOL generate additional funds amid slow advertising growth and a decline in dial-up Internet subscribers. [14]

With AOL moving from content producing to a largely advertisement based company, it will be interesting to see how these new ad based ventures benefits the company and contributes to the ever growing world of media.

SOURCES

[1] 25 Years of AOL. April 20, 2014

[2] AOL Overview. April 20, 2014

[3] AOL Then. April 21, 2014

[4] AOL Now. April 21, 2014

[5] AOL’s Q4 Revenue Grows To $679M But Earnings Per Share of $0.43 Fall Short Of Estimates. April 20, 2014

[6] AOL Q3 Beats Estimates On Sales Of $561M But Net Income Weighed Down By $25M Patch Restructuring. April 20, 2014

[7] Setting Its Sights On Content Personalization, AOL To Acquire Gravity For $90.7M. April 20, 2014

[8] Analysis Tools. April 21, 2014

[9] AOL Calls Patch Spin Out A “Pivot”. April 20, 2014

[10] AOL Chief Tim Armstrong’s Pay Drops 46%. April 20, 2014

[11] AOL Chases $32 Billion Market With Automated Ad System. April 20, 2014

[12] AOL Makes It Personal With Agreement to Acquire Gravity. April 19, 2014

[13] AOL Announces Renewal of Four Original Web Series for 2014. April 19, 2014

[14] AOL Jumps After $1.06 Billion Patent Accord With Microsoft. April 20, 2014

Principles & Practices

Website by the students of TRF235

Category Archives: Other Media Companies

Viacom

Hulu

Cablevision

Link

Hulu

ADDRESS

CONTACT

PROFILE

KEY EXECUTIVES

FINANCIALS

FOCUS IN THE U.S.

MULTI-PLATFORM

NEW CONTENT

ORIGINAL CONTENT

TV EVERYWHERE

SOURCES

Yahoo

Making Changes

Netflix

Link

IAC

AOL

Location:

Key Executives:

ABOUT AOL

Brief Overview:

History:

FINANCIALS

Summary:

WHAT’S BEEN GOING ON

SOURCES