By Zack Phillips Sinclair Broadcast Group, Inc. 10706 Beaver Dam Road Hunt Valley, Maryland 21030 (410) 568-1500 http://www.sbgi.net ABOUT THE COMPANY [2]: Sinclair Broadcast Group, Inc. (SBG), founded in 1986, currently owns, operates, programs, or provides sales services to 163 … Continue reading →
AMC Networks was originally known as, Rainbow Media Holdings, LLC. Rainbow, formed in 1980, started as a small network originally only including Bravo and SportsChannel New York. The Cablevision owned media conglomerate would, less than a decade later, go on to merge with NBC in 1988. This merger gave NBC 50% ownership of Rainbow Media in the original deal. After decades of trades, gains, and mergers, Cablevision considered taking Rainbow Media public, but did not actually go through with the deal until 2011. [1]
-courtesy of lyngsat-logo.com
On March 10th, 2011, Cablevision took Rainbow Media broke it off into a publicly traded company, AMC Networks today. Congruently, with AMC going public, Cablevision kept their cable business still as a private entity. [2]
Since going public, AMC has hit the ground running. Most recently, 2013, AMC Networks acquired the international content division of Liberty Global, Chellomedia, for a reported 750 millionEuros, or $1.04 billion. This deal now gives AMC Networks access to approximately 138 countries. [3]
Financials
Most recently, in the 3rd quarter of 2013:
Net revenue increased by 19.1% to $395 million
Operating income increased 40.9% to $122 million
Adjusted Operating Cash Flow (AOCF) increased 25.4% to $137 million
“Our solid financial results in the third quarter were driven by a return on our investment in original programming…Our shows are performing well on IFC, Sundance Channel and WE tv. At AMC, our acclaimed series Breaking Bad came to a close with record viewership and the Emmy Award for Oustanding Drama Series, and The Walking Dead kicked off its fourth season with record ratings that extended its reign as the #1 show on television among adults 18-49. With our Chellomedia acquisition, we believe we will over time further capitalize on demand for our content by growing internationally, a key strategy to ensuring our long-term success.”
Looking at AMC Networks‘ one year stock evaluation it seems that the company, although currently in the red, has stayed relatively stable since going public. [5]
Executive Vice President and Chief Financial Officer AMC Networks Inc.
-courtesy amcnetworks.com
Sean S. Sullivan is responsible for all of AMC Networks‘ financial needs. This includes, accounting, tax, financial planning, treasury, and investor relations. Along with financials, Sullivan, oversees the information technology and creative service departments, Broadcasting & Technology, programming origination and distribution division. He joined AMC Networks in September 2010 from HIT Entertainment. [8]
Recent News
Breaking Bad – “Felina”: The Final Episode Hype
-courtesy of businessinsider.com
Breaking Bad is considered one of the most compelling, addictive, and suspenseful dramas that has ever hit cable. Driven by plot and fueled by characters, AMC took viewers on a journey of a man’s total distraction, leaving in it’s wake one of the most highly anticipated final episodes ever for a series. In short, Walter White (Bryan Cranston), a high school chemistry teacher, diagnosed with cancer, finds himself at a crossroads in his life. He has always played it safe for his family, and now with a baby on the way, White turns to a life of crime. Partnering up with his former student, Jesse (Aaron Paul), to cook meth, White finds himself spiraling down a dark path which eventually becomes his own demise. Everything he aims to save in the beginning of series, he slowly looses, until he has nothing left to loose. This is what has the audience on the edge of their seats for the final episode. What many people admired about the episode, unlike many other series such as, Lost and The Sopranos, is that it left no question unanswered and tied all 5 seasons up with a big bang at the end, which everyone knew was coming – Walt’s death. “Felina” had the highest ratings of any episode in the series, 10.28 million viewers. Along with viewership, the final Breaking Bad episode created an explosion over the twitter-shpear. Walter White’s final hours on screen generated 1.2 million tweets, making it the most talked about television show for the week (out-ranking “The Voice” and “Grey’s Anatomy“). Breaking Bad had 12 Emmy Nominations in the 2013 season. [9][10]
The Walking Dead
– courtesy of collider.com
AMC defiantly has a way with drama. The hit apocalyptic zombie series, The Walking Dead, has accumulated what many would describe as a “cult” following. Much like other AMC shows, Breaking Bad and Mad Men, the viewers are drawn in by the concept, but, stay for the character development. AMC has made a name for itself in seeing just how far people will go when faced with a challenge, and for The Walking Dead, that challenge is to stay alive. Over the course of the series we see the protagonists stripped of humanity and brought down to nothing but animal instinct. How they act and, re-act, is what keeps viewers coming back week after week. It is not a typical zombie movie where the audience knows that, in the end, the humans will triumph and all is well in a matter of 2 hours. The Walking Dead has reinvented suspense, being known for killing off main characters at any moment. How do we know? Because numbers don’t lie. The most recent season of Walking Dead, season 4, had earth shattering numbers, which had the media buzzing with anticipation. The hour long zombie drama pulled in 16.1 million viewers and an 8.2 rating among adults 18-49. These statistics put the show up 30% in the demo from season 3’s finale (their pervious high). [11][12]
In The Works
AMC’s New Pilot: Preacher
Originally considered by, HBO, AMC has reportedly ordered the pilot to adapt the extremely dark DC comic , Preacher. HBO apparently passed up the deal due to the comic being too controversial. Although, they didn’t state what was controversial about it, it could be assumed that it was the dark religious aspect of the storyline. Originally authored by Garth Ennis and Steve Dillon, Preacher has been described as many things, but to sum them up: the series is full on crazy. With the wrap up of Breaking Bad,AMC needs to fill the void that the dark drama has left for viewers. Although the pilot has only been ordered, there has already star power around the potential new show. Seth Rogen, a devoted Preacher comic fan, has sent out a number of hinting tweets that he could be involved with the project:
He then followed up the tweet with another, naming some main characters in the series:
Will the show get green lighted? No one can say for sure. However, one thing can be said- this will defiantly be a defining moment for AMC and their content. Judging from the comic books themselves, this show will be darker than anything seen on TV before, pushing AMC to the top of drama original programing. [13]
“At A+E Networks, we are passionate about bringing human stories to life, knowing that it is in life itself that those stories originate. We are commited to empowering our employees, strengthening our partnerships and engaging audiences across the globe.”
Life is what you make it. We make it entertaining. “ (1)
A+E Television Networks, LLC is a media company and a joint venture between the Disney ABC-Television Group and Hearst Corporation. The company owns 10 separate channels: A&E, History Channel, Lifetime Channel, LMN, Bio, H2, History en Español, Crime & Investigation Network, Military History, and LRW Network. The network currently reaches more than 300 million households in over 150 countries. The network also includes two international divisions: A&E Networks UK & A&E Networks Asia (1)
History
A+E Networks was formed in in 1983 and in 1984 A&E launched to an estimated 6 million homes in the U.S. Soon after, Lifetime Television launched. As the years progressed, A&E introduced Biography, History Channel and History International. They have had many successes through the years such such as the History Channel reaching 70 million subscribers, the fastest cable network to do this since its inception. Also, in 2002 they were nominated for 22 primetime Emmys. They have had many successful TV shows such as The Sopranos, Intervention, Drop Dead Diva and critically acclaimed films such as Flight 93, which continues to be the highest rated A&E original movie. (1)
Financials
A&E Networks is not a publicly traded company therefore no detailed financial information is available (4)
In a historically first for A+E Networks, it was announced on September 18 that Lifetime, A&E and History would simulcast Bonnie & Clyde, a four-hour, two-night major event premiering on December 8th. (10)
The new hit TV show Devious Maids had its greatest viewership on September 23. A total of 3 million viewers watched the season finale against a very competitive night. The episode was a 50% jump versus the first episode. The program is also a series high in the most important demographic: 1.4 million in Adults 18-49 and 1.2 million in women Adult 18-49. The programs 19% hispanic viewership doubles Lifetime’s primetime average. The show tells the story of a group of maids bound together by their jobs, life and devious secrets. The show already has been renewed for a 13-episode second season airing next year. (12)
Also on September 24, Lifetime announced that their longest running series Army Wives would not return after seven seasons on air. To honor the program, the network is planning a two-hour retrospective episode that will air early 2014. The show followed the lives of a group of women living with their families in an active Army Post. Throughout its run, the drama received two Gracie Awards from the Alliance for Women in Media, a Sentinel for Health Award, many NAACP Image Award, NAMIC Award and Prism Award nominations. (14)
On September 27, A&E Networks announced that they are developing a new original scripted drama series entitled “The Returned” based on the popular French series Les Revenants. The story follows a small town where people who have been presumed dead suddenly appear mysteriously with no recollection of their deaths. The show will be a co-production between A&E Studios and FremantleMedia North America. (16)
A&E presents a new brand identity which included a new website, a new on-air look and the tagline BE ORIGINAL. A&E continues to be 100% original during its primetime programming and this is an opportunity to develop what makes the network succeeded. “A&E has always been a leader in quality original programming and has enjoyed a decade of growth. Our new tagline embodies who we are and not just what we do” said David McKillop, General manger & Executive Vice President. (17)
On October 25th, Lifetime renewed Drop Dead Diva for a sixth season. Drop Dead Diva tells the story of a model that dies and her soul resurfaces in a body of a plus-size deceased attorney. This comes to no surprise as the show continues to be a hit among women ages 18-49 (18)
A&E had its best October yet among their total viewers. They saw a 10% increase in total from last October and a 3% increase in Adults ages 18-49. Also, A&E jumped in rankings to #5 for the months in adults ages 25-54. They were one of the only three top ten networks to show an increase compared to last October showing that as time progresses, A&E is becoming more and more competitive. (21)
A&E Network renewed their distribution agreement with Time Warner Cable and their TV Everywhere platforms such as Video-On-Demand. All of their networks including Lifetime, History, LMN, etc will be included in the deal. They will be available in all types of mobile platforms such as Iphone and Ipads through Time Warner. (23)
Courtesy of mylifetime.com
Courtesy of history.com
A&E networks Asia will also launch Lifetime and H2 in the Phillipines. Lifetime channel will carry the renowned series The Client List and unforgettable and unscripted shows suchs as Masterchef Australia and Dance Moms. H2 delves deeper into the events presented in the History Channel and gives viewers deeper connections in a variety of subjects. H2 launched in September 2011 and is currently the #1 emerging ad-supported entertainment cable network in the United States among adults ages 25-54. (24)
On November 13, A&E Networks joined forces with French Pay TV Channel Canal Plus to create two new branded channels: Planete Plus A&E and Planet Plus Crime Investigation (CI). Both channels will be carried on the Gallic paybox’s satellite platform named CanalSat and will broadcast both A&E programming and local French and European productions. A&E Networks’ managing director in Europe Dean Possenniskie stated “We’re looking forward to working closely with Canal+ to bringing French audiences the highest quality factual entertainment programming and strengthening our viewership in this vital market.” My Ghost Story, Duck Dynasty, Storage Wars, and Pawn Stars are some of the programs that will air in Planete Plus A&E. Cajun Justice, Crime 360, and I killed My BFF will air in Planete Plus CI (26)
NBCUniversal is a mass media company, and as of early 2013 fully owned by Comcast Corporation[9], that delievers entertainment, news and sports all across the globe. NBCUniversal creates and distributes content for broadcast and cable television, film, and online. With cooperate owenership and influence all around the world, NBCUniversal is much deserving of its name.
Broadcast & Cable Television:
NBC and Telemundo broadcast television networks are at the forefront of NBCUniversal’s television presence. Telemundo offers premium spanish language programming aimed at the Hispanic community. It is a one stop shop for a variety of shows, ranging from news to telenovelas and reality television. With powerhouse shows such as The Voice, Community, TODAY, Law & Order: SVU, America’s Got Talent and many more, NBC offers a variety of content to all television watchers across America. NBCUniversal also owns several NBC affiliates throughout the country, delivering high quality regional based content to the nation’s biggest cities.
As far as cable is concerned, NBCUniversal continues to grow its reach across all different types of audiences. NBCUniversal has cable channel offerings such as E!, USA, SyFy, The Golf Channel, NBC Sports Network, MSNBC and many others. This diverse distribution of their cable investments shows how NBCU can make an impact on your television viewing experience no matter what you enjoy.
Film & Digital Media:
Universal Pictures, one the six major film studios, is also owned by NBCUniversal. With recent and future releases such as About Time, The Best Man Holiday, and Lone Survivor, NBCUniversal will look for star-power to bring in large gains as the holiday season quickly approaches.
On the web, NBCUniversal has its hands in many nontraditional media outlets such as Hulu, Fandango, and iVillage. Fandago and Hulu link its users to an online stream or even a physical ticket to explore a vast array of movies and television entertainment. iVillage is a lifestyle, entertainment and news website geared towards women that boasts an impressive 30 million unique visitors a month [14].
Financials:
NBCUniversal continues to bring in great profit over the years with 2013 being no exception. NBCUniversal had a very solid 3rd quarter of the year with revenue increasing by 3.9% [15]. However, a huge portion of the quarterly gains were seen by the great success Despicable Me 2has shown for Universal Pictures. On the television side of things, operating cash flow increased by 5.4% for the cable unit while plummiting by 61% for the broadcast unit [16].
NBCUniversal will look to bounce back with a great increase in revenue once the 2014 Winter Olympics in Sochi Russia being. NBCUniversal has exclusive rights to the Olympics and hope to bring in similar numbers to their 2012 Summer Olympic coverage, which generated $1.2 billion in revenue [16] .
What’s Happening Now?
Aiming for a Younger Demographic?
NBCUniversal just sealed a deal to bump its cable television offerings with the purchase of the childrens cable network, Sprout, from PBS and HIT Television Ventures. The numbers and terms of the transaction have yet to be released. Unlike some other television networks such as Nickelodeon and The Disney Channel, Sprout is aimed at children 5 and below. This unique age gap will give NBCUniversal the ability to introduce Sprout watchers to the NBCU brand. Sprout currently broadcasts the PBS show, Sesame Street, as well as Lazy Town and others that remain popular with the demographic. It will be interesting to see if NBCUniversal can hold on to the rights to some of the existing programming, or if they create their own original content. Another prospect to consider is NBCUniversal rebranding the channel to coincide with an age demographic more suitable to be a bridge to their other cable channels. [18]
The BPL on NBCSN:
With the relaunch of NBC Sports Network back in January of 2012, NBCSN has constantly been looking for ways to distinguish themselves from the crowd. Channels like FOX Sports 1, as well as the giant that is ESPN, both threaten to take away viewership from NBCSN. However, with the purchase of the exclusive rights to broadcast the Barclay’s Premier League, England’s top soccer league, NBCSN has done well since the late-august launch of the BPL on the network. Comparing to last years opening weekend of the BPL on FOX Soccer Channel and ESPN, NBC and NBCSN averaged a .5 rating, a 67% increase over the average .3 rating their competitors had [20]. To put this success even more into perspective, NBCUniversal had 9 million viewers watch the first 5 game weeks of the season. This is quite impressive when you look at the only 4.8 million viewers who tuned in to watch the first 5 game weeks last year [21]. While the number may not seem very high, it is quite understandable given the morning start times of these games because of the time change.
An Olympic-sized push:
The 2014 Sochi Winter Olympics are quickly approaching and NBCU is ready to go. NBCUniversal has begun its 100-day company wide countdown to the opening ceremony. There is a lot on the line for NBCU to make sure that this olympics is as profitable as ever, considering its $775 million rights fee [23]. As a way to promote the coverage of this worldwide event, NBCU will play high quality promotional commercials over the upcoming weeks across all of its broadcast and cable networks. Also, NBC and other NBCU channels have already begun to display the iconic peacock bug symbol with the olympic rings below it [24]. However it will be interesting to see if the time zone shift will have an impact on ratings as Sochi and New York have an 8-hour time difference.
Below is a Sochi 2014 promotional video NBCU will use across its variety of networks.
Last month NBCUniversal and Twitter announced a partnership to bring television and social even closer. Initially the deal works for Xfinity Comcast cable subscribers who will be able to essentially see a tweet about a show or movie and turn that into a direct link to watch or DVR it. Twitter will also be using this deal to advertise out an array of NBCUniversal content through promotional tweets. Look for both companies to push this social move onto other networks to heighten its popularity. [27]
Branson and NBCUniversal Liftoff:
Comcast and Virgin Galactic have partnered to bring the unique experience of the first commercial space flight, by no one other than Richard Branson, to the NBCUniversal family of networks next year. The coverage of this event will end with a 3-hour live special the day of the launch on TODAY. NBCUniversal will attempt to build hype around this event in hope that it will be considered a monumental moment in television history. [29]
AMC Networks is an entertainment company based in New York that owns a multitude of popular channels including AMC, IFC, WE tv, and the Sundance Channel. Their flagship channel, AMC, boasts the impressive feats of having the most
The various properties owned by AMC Networks
watched drama series in cable history with, The Walking Dead, and also stands as the only cable network to win an Emmy for “Outstanding Drama Series” four years in a row. AMC Networks also owns the film company IFC films and the highly regarded IFC center, a movie theater in New York City.
Key People at AMC Networks [2]: (All images curtesy of AMC Networks)
Charles Dolan– Executive Chairman
Joshua Sapan–President and Chief Executive Officer
AMC Networks enjoyed a financially beneficial third quarter here in Fall 2013. The Wall Street Journal reports that the networks earnings were up by 59% from last year, a rise that is sure to make investors very happy people. This growth can be
Past Year Stocks for AMC Networks. Courtesy of Seeking Alpha
contributed to a high demand from advertisers to be placed on their channels. The Journal states, “The growth was driven by a 36% rise in advertising revenue to $146 million, helped by a strong demand for original programming.”[3]
News Stories from Fall 2013:
-Harmonious Deals with Chellomedia
Logo courtesy of Chellomedia
One of the major moves that AMC Networks made this fall was the purchasing of Chellomedia, which is an international content division of Liberty Global, an acquisition that cost around $1.04 billion. Chellomedia focuses on operating digital and broadband channels across Europe and Latin America, a spread that will broadly widen the amount of viewers AMC could reach. It is estimated that Chellomedia reaches around 400 million viewers in 138 countries. This acquisition means that AMC will be able to access various netoworks in the aforementioned countries and have a much wider, international market for their already popular programs. Of the deal, Josh Sapan said, “This acquisition allows us to secure a large, global platform on which to distribute our increasingly successful original programming through a collection of strong, well-established and well managed assets worldwide.”[4] One criticism of this deal is that it makes AMC less likely to be bought out by a larger company, a move which some investors may have been expecting. Previously, it was thought that AMC may be the target of larger cable network companies New Corp or CBS Corp, but this acquisition seems to prove that AMC is still looking to expand before looking for potential buyers.[5] Overall, the acquisition of Chellomedia, likely to officially go through in early 2014, will broaden the reaches of AMC Networks, expand their global market, and allow them to become much less dependent on success in the US market.[6]
-Breaking Bad? More like Breaking Records!!
Promotion for beginning of fifth and final season of Breaking Bad. Courtesy of AMC
Throughout its airing, Breaking Bad has become one of the most highly regarded and well-liked shows on television. The show tells the story of a high-school chemistry teacher who is diagnosed with cancer and decides to secure financial security for his family by cooking and selling meth. The show has garnered both viewer and critical acclaim, and won “Outstanding Drama Series” at this years Emmy awards, after being nominated for the past 3. AMC saw record numbers for Breaking Bad almost every episode of the last season, with those numbers peaking on its final episode, “FiNaLe” where the average viewership was 10.3 million according to Nielsen. When it comes to the important adults 18-49 demographic, Breaking Bad achieved a 5.4 rating, reaching about 6.7 million people.[7] This impressive finale ranks third in cable series finales, finishing behind only The Sopranos and Sex and the City.
An interesting article on Slate discussed how Nielsen began ranking television shows on the number of people tweeting about them, and how that reflects on Breaking Bad. It was estimated that 9.3 million people tweeted about, or viewed tweets about Breaking Bad during its penultimate episode. This is an important statistic because it displays how many people are actively engaged in the show, a fact many advertisers would love to know so they can more intelligently places their advertisements. [8]
-Ratings Spring Back To Life With The Walking Dead
Another one of AMC Network’s hugely successful series, The Walking Dead, comes again from their flagship channel, and has been racking up huge ratings with every episode. This show follows a group of survivors during the zombie apocalypse and chronicles their
Main promotion for The Walking Dead. Courtesy of AMC
harrowing tale. The show has seen growing success over its first 3 seasons, with ratings and viewer numbers reaching record-breaking heights during the premiere of the fourth season. TVbythenumbers reports that 16.1 million people tuned in for the premiere with 10.4 million being of the adult 18-49 demographic.[9]The Walking Dead has become the #1 show on television across both cable and broadcast networks. Even compared to Sunday Night Football, The Walking Dead is 23 percent bigger than the perennial broadcast telecast.[10] These ratings and numbers have either stayed the same or grown with each passing episode. On the heels of such success, AMC Networks announced on October 29th that it has renewed The Walking Dead for a fifth season, in which they are likely to have continued success.[11]
-The Sundance Channel Brings a New Kind of Zombie to Life[12]
This fall The Sundance Channel premiered The Returned, a French hit, and one of the
Photo showing premise of The Returned: the reconnecting of those once thought to be dead
channel’s first forays into scripted TV series. The series tells the stories of people who come back to life exactly as they were before they died. The show, based on the French film, They Came Back, was a critical hit in France before being picked up by The Sundance Channel. The show is quietly doing very well for the channel, considering the small audience and fact that the show is subtitled to English. As mentioned earlier, The Returned has received critical acclaim, being lauded for its beautiful cinematography and emotionally believable characters.[13] Despite only having eight total episodes, the show has an impressive 92/100 score on metacritic.[14]
-Low Winter Sun: Maybe Sinking a Bit too Low?
Another AMC show to be grabbing headlines this fall was crime-drama Low Winter Sun. This show tells the story of a cop in Detroit who believes his girlfriend was murdered by another detective. Despite airing after the widely watched Breaking Bad, this show has
Promotion for Low Winter Sun. Courtesy of AMC.
never gotten the viewer attention AMC Networks was hoping for. Low Winter Sun has received mixed reviews, with many leaning towards the negative side, citing the show’s pace and darkness as its main adverse aspects.[15] The show has even drawn criticism from one of its stars, James Ransone. Ransone said of the show, “It wasn’t a good show…” and “If it doesn’t get canceled, I’ll be goddamn shocked…the ratings were terrible.”[16] AMC Networks has yet to decide if the show will be renewed for a second season, but the decision is likely to come by early December.
Randel A. (Randy) Falco – President/CEO and Chairman
Served as President and CEO of AOL Inc. from 2006-2009
Before that, had spent over 30 years at NBCUniversal Television Group; most recently as President and Chief Operating Officer
Responsible for both groups commercial and operational functions including affiliate relations, cable distribution, business development, information technology, and network and studio operations.
Andrew W (Andy) Hobson – Senior Executive Vice President & Chief Financial Officer
Shared several positions at Univision (Chief Strategic Officer, Executive Vice President)
Before Univision, Hobson was a principal at Chartwell Partners from ’90-’93; where he was instrumental in the 1992 leveraged buyout of Univision
Roberto Llamas – Executive Vice President, Chief Human Resources Officer
Llamas comes from a background where he was head of Human Resources at Nielsen; a company with over 35,000 employees in over 100 countries
Has held previous human Resources positions as Lehman Brothers, TRW, and General Electric
Beau Ferrari – EVP of Operations (Univision Networks)
Responsible for the growth and profitability of Univision’s content
Serves as interim co-head of Univision Sports; he is responsible for the content on the 24-hour channel Univision owns titled, Univision Deportes
History
Univision was started in 1960 as an International Spanish Network by Emilio Azćarraga; a media-mogul responsible for forming and operating Grupo Televisa (Leading Spanish Network at the time). Through a partnership with Jerrold Perenchio of Venevisíon, the two business bought out two major network stations ins Houston, TX and Chicago, IL respectively. This led to to the 1996 formation and announcement of the company now known as Univision Communications. THe company has been focused on pertaining to the hispanic demographic across the United States through various media channels featuring, television and radio. They have had a lot of success standing at the top of their class and ratings for a hispanic-television station.
Profile
Univision Communications Inc. is the leading media company serving Hispanic Americans. With a number of current channels owned and operated by Univision Communications Inc., Univision Communications Inc. stands alone at the top of the Spanish-American Television totem-pole. The recent news coming out that as of last year,was that Univision Communications Inc. had surpassed ABC for the most watched network at night reaching over 10.8 million homes on the average evening. The numbers do not lie, and the numbers are what has led ABC and Univision to fuse together for a somewhat of a merger, creating a new English-based news channel covering Sports, Entertainment, and original Media Content.
Ben Sherwood of ABC News has been quoted saying “Fusion will be the ultimate meeting place for English-speaking Latinos. Our goal for this young, vibrant, and media-hungry audience to come to Fusion to be informed, entertained, and empowered. It will be fresh, fun, and optimistic and great interest to latinos and non-latinos alike” (WSJ, 1). Fusion will be interesting to see, as watching ESPN has become very natural for the majority of Americans. Seeing the potential cross-branding initiatives of both companies come into full effect will be very interesting.
The medium has been necessary overdue to the high volume of hispanic viewers and the somewhat smaller numbers of American viewers. The medium that “Fusion” will be provide will be one unlike any other, as no major company such as ABC has ever made such a strong push into the Latino marketplace for telecommunications. Other current competitors to Univision include; Belo Corporation, Citadel Corporation, and TV Azteca; which is Univision’s top competitor.
Univision currently has been seeing a large share of their viewers tune in for their shows
Arranque de Pasion
Pq El Amor Manda
In addition to their 24-hour running show on sports titled, Univsion Deportes. Univsion offers multiple telenovelas which are spanish-based romantic dramas which seem to be the most popular based off of ratings in the hispanic marketplace. In addition to the telenovelas, the Univision Communications Inc. have worked very hard on various media platform operations. A mobile application for your smartphone will now allow the user to access exclusive Univision content and be regularly updated with new news developments, television episodes, in addition to exclusive webisodes featuring interviews with the cast members of some of the most highly-watched programs.
Univsion Deportes serves similar to ESPN’s “SportsCenter”, providing around the clock sports information and news headlines with a large team of anchors and reports. Univsion Deportes does not only entertain the hispanic or latino viewer, but anyone who can understand the spanish language will be able to see that the content is universal. Strongly pertaining to sports that are well-liked in the Spanish community, however, are still relevant in non-hospanic parts of the world.
Arranque de Pasion is a Webnovela series by Univision known for the drama between characters Checo and Ela. The stories and episodes vary on the never-ending lust and personal conflict that take place in this show. It is the 2nd highest rated show on the Univision network, and is becoming more popular in The United States.
ABC and Univision announced their finalized merger on February 11. This let the world know that two of the most powerful media players will be joining forces to bring together the American and Hispanic television communities together through cross-media branding and promotions. This will not only allow the American-based ABC to start branding themselves more in the hispanic markets, while Univision creates their name as a go-to news site in the United States and other english-speaking territories. The merger could not have taken place on a scale of much bigger proportion due to the conglomerate size of both of these companies individually.
The merger with ABC was a substantial power move for the American-based company, that saw the hand-writing on the wall of how successful the potential of a major media merger over different languages could possibly be. Teaming up with the strongest player in the spanish telecommunication game, ABC was able to do just that. Offering their content over cross-media platforms and opening doors for quality product enhancement from both the hispanic and non-hispanic communities alike.
(Picture Courtesy of Univision Corporate Website) [1]
Randy Falco
Joined Univision Communications in June 2011 as President and Chief Executive Officer. Before joining the company he was Chairman and CEO of AOL. Since his arrival, Univision has added three new cable networks and steadily increased its net revenue. [1]
Cesar Conde (Picture Courtesy of Univision Corporate Website)[1]
Cesar Conde
Mr. Conde is president of the Univision Networks and is responsible for every television network including Univision Network, Unimas and Univision Cable Network. He is also responsible for the Univision Studios which were established in 2009. He previously served as Executive Vice President of Univision Communications. [1]
Andrew W. Hobson (Picture Courtesy of Univision Corporate Website)[1]
Andrew W. Hobson
Joined Univision Communications in 1993 as Executive Vice President of Univision Network. In 2007 he became Senior Executive Vice President and Chief Financial Officer of Univision Communications playing a vital role in the company’s recent financial growth. [1]
Profile
Univision Communications is the leading spanish broadcaster in America with a pedigree of television, radio and interactive media operations. The company’s primary audience are Latin American families in the United States. Univision Communications runs the top-rated Univision Network, as well as sister networks UniMas and Galavision. In addition, the company owns and operates about 60 local TV stations and 70 radio stations all across the nation and an online division which owns and distributes a network of online and mobile products like Univision.com. Some major competitors include TV Azteca, S.A. de C.V, Liberman Broadcasting, Inc. and NBCUniversal Media, LLC. [2] Some of the most successful current programs are Sabado Gigante, which has been on the air since 1997, and Primer Impactosince 1994.
The following video summarizes what Univision’s vision consists on:
Television: The television segment owns a large number of TV stations and networks of which the most successful is Univision Network, the driving force behind the company. Univision Network has the largest spanish speaking television audience in the world and has reached parity with the 5 major english television networks outranking The CW several times. The television department also owns UniMas a spanish language broadcast television network, as well as Galavision a cable network in the U.S. In addition to the three major networks the company recently added three single format 24-hour cable networks: Univision Deportes Network, ForoTV and Univision Telenovelas. In 2009 the company founded Univision Studios, their own production division. Last year the company announced the creation of Fusion, an english language joint venture with ABC targeted at hispanic americans. [3]
Univision and ABC joint venture (photo courtesy of mediabistro.com) [10]
Radio: The radio segment owns and operates 69 radio stations in the United States. In 2003 Univision completed the acquisition of the Hispanic Broadcasting Corporation to form Univision Radio, the largest spanish language radio broadcasting company in the United States. In addition, the company founded Univision America this past summer, which is a spanish talk radio network that operates in major states like California, Texas and Florida. [3]
Univision America (photo courtesy of mediamoves.com) [11]
Interactive Media: This segment is responsible for operating a network of online products of which Univision.com is the most important. Univision interactive media was launched in 2009 to house Univision Movil and Univision.com, an online publisher that features entertainment, news and information. The interactive media segment also includes UVideos, a bilingual digital network and Univision Partner Group, a publishing network. [3]
Univision.com Homepage (photo courtesy of Univision.com) [12]
History
In 1955 KWEX-TV, the first full time Spanish language station in America was founded. The station changed owners several times until in 1968 the new owners decided to name it Spanish International Network after buying channels in New Jersey and LA. By the mid 1970s the company had grown into a national network in the United States. In 1986 a Partnership of Televisa (a major media production company) and Hallmark cards bought the network formally naming it UNIVISION. Univision online was launched in 2000. [4]
In the past decade Univision Communications has grown in many fronts of the industry launching UniMas, formerly known as Telefutura (2002), Univision Radio (2003), Univision Studios (2009) and Univision Interactive media (2009). [4]
Financials
During 2012 Univision Communications Inc. reported a steady rise in their financials. Both their OIBDA and their total net revenue increased in comparison to the previous numbers of 2011. For the full year, net revenue increased 7.4 percent to $2,442.0 million from $2,273.5 million in 2011 and OIBDA increased 7.4 percent to $1,003.2 million from $933.9 million in 2011. Moreover the increase took place in each of the three media production areas of the company (Television, Radio and Digital). [5]
(photo courtesy of Univision Corporate financial statement 2012) [5]
The new revamped UniMas was launched coast to coast on January 7th premiering two prime time series that same night: Made In Cartagenaand Quien eres tu.
(photo courtesy of underconsideration.com)
“Quinceañera” the groundbreaking production that catapulted Thalia and Adela Noriega is being rebroadcasted by Univision Telenovelas on January 7th.
Univision Communications announced a partnership with Samsung to carry their digital video network UVideos, in all 2013 Samsung smart TVs and connected devices.
Univision Network launches new talent competition show“Lo que mas quieres” on January 27th.
Lo que Mas Quieres ad campaign (photo courtesy of latinospost.com) [13]
Univision’s “Despierta America” established itself as the fastest growing morning show in the current season regardless of language registering its seven month of consecutive growth among adults 18-49 and 25-54.
Despierta America (photo courtesy of tucuentas. com) [14]
Univision’s “Premios Lo Nuestro“, which is Television’s longest running Latin music award show, aired on Feb 21 reaching 11.6 million viewers and making Univision No. 2 network for the night among adults 18-34 for fourth consecutive year.
WXTV Univision 41 New York received 22 Emmy Award nominations. According to Nielsen, Univision 41 was also the #1 newscast in the 6pm slot during the month of January.
On February 11 ABC and Univision announced their joint venture news and lifestyle network for Hispanics is being named Fusion and is set to launch during the second half of 2013.
Univision set milestone as the No 4. network in February sweeps ahead of NBC. Univision out performed NBC establishing a 26% margin among adults 18-49 and a 47% among adults 18-14.
The following video demonstrates the recent rating success of Univision.
Premiere of new romantic comedy telenovela “Porque el amor manda” on Univision Networkset for March 11.
“Nuestra Belleza Latina” a beauty competition show is set to launch its seventh season March 10 on Univision Network. The show includes sponsors like AT&T and Subway.
Seventh season of Nuestra Belleza Latina (photo courtesy of lagranciudad.net) [15]
The season finale of “Por ella soy Eva” made Univision stations #1 among adults 18-49 and adults 18-34 in several cities like Los Angeles and Houston and Chicago.
On March 11 Univision Radio and TuneIn announced an alliance to extend the reach of 50 terrestrial stations via TuneIn.
Univision Studios announced the premiere of “Arranque de Pasion, La historia de Ela“, an original webnovela produced exclusively for Univision Online and mobile properties set to begin April 1.
Arranque de Pasion webseries (photo courtesy of univision.com) [16]
Univision signs a major contract with DirecTV enabling the satellite provider to carry all of Univision’s own and operated broadcast stations, as well as the network feeds for Univision, UniMas, and Galavision.
Future of Univision
ABC News and Univision News merge to create Fusion in 2013 (photo courtesy of Univision Corporate Website) [4]
When it comes to its future Univision Communications seems stronger than ever. If the current trends continue the network could become a recurrent top four in the United States Television market because of the constant increase of the Latino population. Furthermore, Univision is on the verge of launching a great number of new series including “Los Heroes del Norte” (NotiMas) and “Que Bonito Amor“ (Univision), which are two long awaited primetime series set to premiere this April. Last but not least, Univision News is focusing greatly on the creation of the new joint venture with ABC news called Fusion (to be launched sometime this year). The new network will be carried by 5 cable operators and will serve 50 millions Hispanics; a number expected to double by 2050 [9]. This measures are expected to further enhance the company’s presence in the multimedia market during the next decades.
Tribune Company
435 North Michigan Avenue
Chicago, IL 60611
312.222.9100 / www.tribune.com
Company Overview
In 1847, this Chicago based company was created with the start up of the Chicago Daily Tribune, which had a circulation of 400 copies (1). After success in the newspaper industry, the Tribune Company has expanded its media platforms with the launch of its first radio station WGN in Chicago in 1924, and then its insertion into the TV industry in 1947 (2). With its rapid expansion in publishing, digital and broadcasting, Tribune has now become one of the principal multimedia companies in the nation.
After the company launched its first television station, KTLA- TV, Los Angles in 1947, the company expanded rapidly, tripling its station ownership by the next year. Now, Tribune is one of the leading broadcasters, with ownership of 23 major-market television stations across the US reaching an estimated 80 percent of TV households. The company also has a hand in the cable industry, with the WGN America cable network, which has an average viewership of over 70 million households through cable and satellite providers (3).
CEO of the Tribune Company, Liguori has worked for the Fox Broadcast Company, and most recently as Chief Operating Officer of Discovery Communications before coming on board with Tribune.
President of Broadcast media, Wert was appointed in February 2013, and is in charge of the company’s 23 television stations and WGN Radio in Chicago (4).
President & General Manager of WGN America & Tribune Studios, Cherniss is responsible for creation, strategy, and operations of the WGN superstation and Tribune Studios (5).
The staple of its broadcasting, WGN America, offers an array of content as “home of the superfan” with popular shows in syndication, movies, news, and Chicago based sports (7). As of July 2012, coverage estimates for WGN America were a little over 66 percent reaching a little under 76 million households (10).
With its ownership of 23 major-market television stations, Tribune has thirteen affiliations with The CW, seven with Fox, two with MyNetworkTV, and one with ABC (8). In addition to these major market stations, Tribune Broadcasting also has ownership of the CLTV, Chicagoland Television, which partnered up with Tribunes prominent WGN-TV station in Chicago to deliver 24 hour local and regional news coverage for the Chicago Area (18).
Tribune used to be a publicly traded company on the New York Stock Exchange as of 1983, but in late 2007 the company became privatized again. In December 2008, due to an unexpected decline of revenue and too much debt to handle, Tribune had to file petitions for Chapter 11 of the U.S. Bankruptcy Court (11). After four years of restructuring, Tribune was able to recover from Chapter 11 with a new term loan of $1.1 billion and $300 million revolving credit facility to maintain operations of the company (12). Even though Tribune is now a private company, they still voluntarily report annual and quarterly financial statements, but they are only estimations and subject to change. On September 23, 2012 the third quarter results were released publicly, and the company had an estimated $2.2 billion operating revenue with a net income of $254 million. Since these financial statements are voluntary for the company they only have reports of the entire company and subsidiaries together. The only assets reported for the broadcasting division were the broadcast rights for this quarter, which were $26 million (9). With an up haul of restructuring and reorganization, Tribune has shown with their profitable assets that they are on their way out of bankruptcy. Tribune also has equity interests in broadcasting and digital content like the Food Network, NimbleTV, and TOPIX, which all have been helpful in its financial return and have contributed a good amount of success to Tribune’s already existing assets.
As of April 2nd Tribune Broadcasting’s creative division, Tribune Creative Group has partnered up with the production company Turbo Dog Productions. With its advances with equipment and creative expertise, this newly formed partnership will expand Tribunes footprint in its advertising. Turbo Dog Productions will now be located in Manhattan under the newly formed Pix11 studio, with state-of-the-art equipment like Motion Capture technology, a Virtual Camera system, full CGI and VFX, and multiple green screens (14). Andrew Kessler, CEO of Turbo Dog Productions stated that this new collaboration, “will ensure we remain significantly ahead of our competition and further our ability to provide both our domestic and overseas clients with the highest quality of content over the full spectrum of visual creative materials” (14).
PHL17, Tribune’s MyNetworkTV affiliate in Philadelphia announced on March 28 that the station would broadcast the 2013 Season Opener for the Philadelphia Phillies baseball team game against the Atlanta Braves, with a pregame show at 6:30pm following up to the opener at 7:05pm (15). Nielsen ratings the next day estimated that the game averaged an 11.5 household rating, which set an unprecedented record high for the station over the last 17 years. These results gave an estimate that over 339 thousand homes tuned into the game, making it the number one programmed broadcast for the night (16).
Combined with its already prominent scheduling of popular syndicated shows like 30 Rock, How I Met Your Mother, It’s Always Sunny In Philadelphia, and Scrubs, WGN America announced on March 26th that they would be adding additional network shows to the mix. Hoping to boost ratings, Tribunes cable network will be airing marathon blocks of
The Vampire Diaries and Arrow. Original content from The CW Network, both of these shows have been the most popular shows to date for the network, with The Vampire Diaries being the highest-rated drama while Arrow has been the most-watched show. With the new addition of these shows through block programming, WGN America hopes to get viewers attention so they “can catch up on all the action-packed drama before the final original episodes of the season on The CW” (17).
Scripps Networks Interactive (SNI) is a cable television network that offers a variety of popular “slice of life” brands across numerous mediums such as television, digital media, mobile, and publishing. The network is practiced exclusively in the lifestyle genre housing syndicated shows on popular channels such as Food Network, Travel Channel, and HGTV. Scripps is truly an interactive network with shows that inspire its audience, about 144 million unduplicated viewers per month, to try new things and explore the world around them.
Due to the style of its shows Scripps is known for integrating products into the actual program. With its number 1 rank in persuading viewers to buy new products, Scripps Network has become a favorite among advertisers. [1][2]
History
Scripps Networks Interactive first began to develop into the company it is today in 1994 with the debut of HGTV (formally Home & Garden Television). However, its roots date back to 1878 when Edward W. Scripps founded The Penny Press in Cleveland. Penny Press established the E.W Scripps Company as one of the post-war era’s most influential newspaper publishers. Following the success of HGTV, the company debuted additional channels through the late 90s and early 2000s including but not limited to, the DIY Network(1999) and Cooking Channel (formally Fine Living Network) (2002). In 2008 Scripps expanded into two publicly traded companies. E. W. Scripps Company houses broadcast television, news, and community educational services. Scripps Networks Interactive houses interactive media, and cable television. Today, Scripps Networks Interactive has grown to include six channels all of which have an active online presence through channel websites, social media pages and online videos. [3]
Food Network: Food Network is a unique channel that reaches viewers through TV, the web and magazine. The channel is distributed to more than 100 million American households. The channel also has a growing international presence with availability in more than 150 countries, including Great Britain, India, Asia and Africa. [4]
DIY Network: DIY is a home improvement channel that answers questions about home craft projects and makeovers. DIY reaches more than 56 million American households. [5]
HGTV: The veteran channel of Scripps Networks Interactive has everything you could ask for about the home and its surrounding landscape. HGTV offers a number of how-to home improvement series that focus on artistic renovations, crafts and maintenance. HGTV boasts a following of more than 95 million American households. [6]
Cooking Channel: As its catch phrase “Stay Hungry”, suggests Cooking Channel is a station that is as passionate about food as its viewers. Following the model of many series on Scripps other channels Cooking Channel features various instructional shows about proper cooking habits and features various unique recipes. [7]
Travel Channel: Travel Channel is a station all about the world around us. Programs offer beautiful adventures to its viewers by looking at the culture, food and homes of different nations. Travel Channel reaches more than 95 million American households. [8]
GAC: Great American Country (GAC) offers programs that focus on style of country living. Programs give viewers access to country music videos, cooking shows and reality TV series. GAC reaches more than 59 million American households. [9]
Finances
As of April 8th 2013 Scripps Networks Interactive stock is priced at $66.89. This is an increase of about 1.43% from yesterdays stock prices. The companies current market capitalization, as of April 5th, is about $9.82 billion. The companies current annual net income is about 681.48 million which is a great increase of about 60% from 411.56 million in 2011. Scripps seems to be doing very well with 305.80 million this quarter. [10]
Recent/Future News
January 2013
Last July Scripps Networks Interactive closed a carriage deal with Comcast that included TV Everywhere. Over the next 18 to 24 months, Scripps chairman and CEO Kenneth Lowe, plans to expand the companies TV Everywhere deals. TV Everywhere deals are
sure to substantially benefit Scripps series especially those that specialize in cooking. TV Everywhere could extend the amount of time a viewer spends watching a show. With channels like Food Network, viewers can take their laptops, tablets or smartphones into the kitchen to continue watching a program while the cook along with the show host. Lowe stated that Scripps could see more ratings as a result because their will be multiple platforms rather than a single stationary TV screen. However, some trouble lies within properly tracking TV Everywhere ratings. Nielsen Media Research insists it can consistently and accurately track TV Everywhere ratings, however, Lowe remains somewhat apprehensive. He states that the problem is with pricing and technical issues with programmers and rating companies. [11]
February 2013
Scripps Networks Interactive has been making progressive moves to expand its presence over seas by selecting two new additions to its international leadership team. Derek Chang and Márcio Fonseca have been named managing director of Asia Pacific and Latin American respectively. Food Network and Travel Channel already have a substantial
viewership in some parts of the Asian Pacific but Scripps is looking to further expand its market reach through wider distribution and additional program availability. Both Food Network and Travel Channel shows are rich with content related to Asian countries and have become the premiere brands in the life style programming categories. Chang, along with Scripps, have great plans for the future of these channels. Similarly, though Scripps is less established in Latin America, managing director Fonseca will carry out various growth strategies to launch the networks international presences. With these two new managers Scripps Networks now has a growing presence in Europe, Middle East and Africa (EMEA) and Asia Pacific and Latin America. [12][13]
Late this February Scripps Networks Interactive ventured into the VOD market with its first streaming video-on-demand partnership with Amazon. Scripps licensed many episodes of its top series to Amazon Prime. Though the deal was only about $15million, small potatoes compared to deals by CBS and Time Warner, it is expected to grow over time. Customers of Amazon Prime will have access to series from HGTV, Food Network, Cooking Channel and Travel Channel. These programs include but aren’t limited to “Rachael Ray’s Week in a Day”, “Anthony Bourdain: No Reservations” and “Iron Chef America.” Some of these series will almost be available to buy and download from Amazon Instant Video. These new deals with Amazon are part of Scripps new initiative to offer their programs whenever and wherever their viewers want it. [14]
April 2013
Travel Channel prepares for the spring season with two new series added to its lineup; “Red, White & New,” and “Dig Wars”. These two original series will premiere in late April and mid-June respectively with back to back new episodes. “Red, White & New,” is produced by Powderhouse Productions, and has cast Steve Watson as its show host. Watson will travel across the nation to discover original and unique American inventions. The show aims to celebrate new American ingenuity by highlighting people who invent interesting tools that transform their lives in exciting ways.
These inventions include a robotic exoskeleton that gives its wearer a form of super human strength, an extreme design of the classic Pogo stick that allows high jumping with compressed air-power, a the world’s first working water-powered jet pack! Host Steve Watson will test these inventions first hand while discussing the inspiration behind each project with the inventors.
“Dig Wars,” is produced by Sharp Entertainment and in june it will feature three teams as they hunt down relics across the country to uncover this nations hidden history. These teams will challenge each other head-to-head to unearth the most valuable relics through the exploration of numerous historical locations in America. Each episode, once they arrive on site, teams will work from sunrise to sunset using their archeological knowledge to gain victory. When the hunt ends the team’s treasures will be judged by a local expert who declares the winner. [15]
Food Network prepares for the its spring line up with a the new program “Giving You The Business”. The series is produced by Cineflix, and will follow employees that are selected by the company’s CEO to compete for the opportunity to own a food franchise. The twist, however, is that the contestants don’t know they are in a competition. Hand-selected for their devotion to the company the employees take part in various hidden-camera challenges meant to test the skills and knowledge that are typical in management positions. The winner is judged by the CEO, and is awarded their own franchise. The show is set to premiere April 25th and will feature Famous Famiglia as its first victim with Walter Bond as the show’s host. [16]
21: Giving You The Business: http://www.scrippsnetworksinteractive.com/newsroom/company-news/Employees-unknowingly-compete-for-own-food-franchise-in-new-Food-Network-series/
22: Giving you the Business video: http://youtu.be/JPtTw1bmPD0
http://www.newscorp.com | @NWScorp | 1211 Avenue of the Americas New York, NY 10036 | (212) 852-7000
A Brief History
News Corporation was formed in 1979 when Rupert Murdoch needed a holding company for News Limited. News Limited began as a small Australian newspaper founded by the Murdoch family in 1923. Rupert Murdoch helped turn that small paper into one of the largest media conglomerates the world has ever seen. News Corporation has holdings in print, television, film, and web. They own everything from the Wall Street Journal to 20th Century Fox. Even after being hit by an international phone hacking scandal, it seems like nothing can slow down this media empire.
News Corporation is perhaps best known for their work on the small screen. They are behind such classic shows as The Simpsons, American Idol, Family Guy, Glee, and everything else under the Fox umbrella. The juggernaut behind one of the most successful networks in the world still has the drive to grow and prosper. Their effort, combined with that of NBC Universal and Disney saw the creation of Hulu.com, an ad-supported television streaming site. There is also a lot of speculation that the Murdoch Empire plans to add the LA Times to their collection.
Board of Directors
Rupert Murdoch – Chairman and Chief Executive Officer, News Corporation
Jose Maria Aznar – President, Foundation for Social Studies and Analysis, Former President of Spain
Chase Carey – President and Chief Operating Officer, News Corporation
Natalie Bancroft – Director, News Corporation
Peter L. Barnes – Chairman, Metcash Limited
News Corp continues to invest in cable TV while other content providers worry about the long term security of the revenue stream. It was announced in late March 2013 that the channel FX would be getting a sister channel named FXX [1]. FXX will be targeting the coveted 18-34 demographic. In order to reach this younger audience, content will be transplanted from FX to FXX. Shows like It’s Always Sunny in Philadelphia will be moved to FXX once the channel launches on Sept. 2nd[2]. Because the channel will be launching with a potential audience of 70 million homes, News Corp is hoping that such a large potential audience will bring in lots of ad money [2].
FXX isn’t the only new channel that News Corp will be launching. They will also be launching a new sports channel, dubbed Fox Sports 1 [1]. Launching the new channel won’t be as expensive for News Corp as it would seem. What the company is essentially doing is rebranding their existing Speed Channel into a seemingly different channel [1]. Because they already own the rights to NASCAR, the NFL, MLB, and more than twenty local sports channels, finding content for the new channel won’t be a difficult task [1].
Although it sounds like News Corp is just shifting around their existing content, the stock market is expected to respond positively [3]. It might take a few years for Fox Sports 1 to gain an audience, but investors see a lot of potential in the new channel. Matthew Harrigan, a Wunderlich Securities analyst, raised his price target to $36, a $4 jump [3]. Although they don’t expect to be able to compete with ESPN, that might not be the case for competitor NBC Sports. President and COO Chase Carey told investors that the channel should see a loss for the first few years in order to give it the financial boost it needs. He urged “not to try to beat ESPN”, stating that financial success of the network would come in time [6].
The company is doing very well financially. According to the second quarter earnings released for 2013, News Corp reported earnings of $1.58 billion, up from $1.5 billion a year ago [4]. Their current stock price sits at $31.57 a share [5].
Current stock listing for News Corp
Despite their financial success, News Corp is worried. Every TV network has been closely watching the Aereo court cases. After Aereo won the first two court cases again them, the content producers started to get upset. Producing content becomes a lot less profitable when your content can be streamed online without any compensation. President and COO of News Corp Chase Carey might end up changing the way his network runs if this trend continues. On April 8th at the National Association of Broadcasters in Las Vegas, Mr. Carey claimed that if Aereo came out on top in court, he would take Fox off the air in favor of a subscription-based service [7]. Although doubtful that Carey could pull Fox off the air, it’s too early to predict what will happen next.
Disney and News Corp. are trying to figure out what to do with Hulu. On April 7th, 2013 a bid was placed on the popular video streaming site [9]. The $500m offer came from Peter Chernin, the former president of News Corp [9]. It is not yet known if the offer will be accepted or not. Earlier reports indicated that even if somebody were to buy Hulu.com, they wouldn’t necessarily be buying the content that goes with it. After spending millions of the website, the new owner would still have to go through discussions with Disney, News Corp, and NBC regarding the cost to stream their content on the web [8].
Although News Corp is doing well, so are their competitors. The Walt Disney Company is currently listed at $58.82 on the NASDAQ [10]. Comcast, now the parent company of NBC Universal, is listed at $41.63 a share [11]. The competition will only increase, but News Corporation has what it takes to compete.
[1] News Corp continues to invest in TV; creates FXX, Fox Sports 1