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

21st Century Fox

Posted on October 16, 2016 by erlipins

Gina Reitenauer, Erika Lipinski, Dwayne Ellmore

[1]

Adress/ Contact Info:

1211 6TH AVE.

NEW YORK, NY 10036

(212) 852-7000

Key Executives:

James Murdoch Co-Chief Operating Officer

James Murdoch- CEO

Murdoch has been with the Fox corporation for over 20 years, over these years, he has held a variety of different leadership positions in the company. He was appointed as the CEO in 2015.

Lachlan Murdoch- Executive Chairman

L. Murdoch has been in the communications industry for over twenty years. Some of his past leadership positions for the company include: Board of Directors member, Deputy Chief Operating Officer, and Co-Chairman of the corporation.

Rupert Murdoch- Executive Chairman

R. Murdoch has served as both the CEO and Chairman of the company, a role that he had since 1979 when the corporation was known as “News Corporation” . R. Murdoch was appointed to his current position as Executive Chairman of the company on July 1st, 2015.

Reed Nolte- Executive Vice President of Investor Relations

Before becoming an executive at 21st Century Fox, Mr. Note held a variety of different financial positions at communications companies. Most notably, he was the Assistant Treasurer at Paramount Communications. Additionally, Mr. Nolte was previously the Vice President of Investor Relations at Viacom.

Julie Henderson- Chief Communications Officer

Ms. Henderson is the Chief Spokesperson for the company. Her previous experience in Public Relations and the communications field extensive; she has worked as the Senior Vice President of MPRM Public Relations and also Fox Interactive Media. Ms. Henderson has been apart of the 21st century fox team since 2012 when she took her current position.

John Nallen- Senior Executive Vice President, Chief Financial Officer

John Nallen assumed his current role at 21st century fox in July of 2013. Mr. Nallen originally joined the “News Corporation” back in 1995 after working at Arthur Andersen as a partner.

[2]

Brief Overview:

Twenty-First Century Fox is one of the largest mass media conglomerates in the world. The four major segments of this company include cable network programming, television, filmed entertainment, and direct broadcast satellite television. Twenty-First Century Fox is parent organization to many subsidiaries. For instance, Fox Entertainment Group is a subsidiary of which are many of Fox’s well-known divisions, such as FOX News Channel, Twentieth Century Fox Film, and Fox Network Group. Going even further, Fox Network Group is the parent of many other subsidiaries as well, one of them being Fox Broadcasting Company. [3]

[4]

FOX Broadcasting Company, like other traditional television outlets, is experiencing declining viewership. This is partly due to the fact that media consumers are embracing newer digital platforms, which leads broadcasting networks like FOX to be dependent on the news and coverage of national and international events, such as the 2016 Summer Olympics, the 2016 Election, and general sports coverage. For instance, FOX is hopeful that its coverage of the Super Bowl in 2017 will boost ratings as it did in the past. [5]

Finances:

Stock Price:

The stock of the 21st century corporation, has not changed much since the beginning of the year through the current fourth quarter of stock trading. The peak point of the stock price in 2016 was on April 25th, 2016 at $31.06. The lowest point of the stock price was on September 9th, 2016 when the stock price was $23.57. Since this low point, the stock has only rebounded to the point where it is as of Mid-November (Nov 15th, 2016) at $27.45. [6]

Revenue:

For the fiscal year 2015, the revenue for 21st Century Fox was $28.99 billion dollars and the the revenue for the 2016 fiscal year was $27.33 billion. In Quarter 4 of 2016, the company beat expert’s estimates coming in at $6.65 billion. This marked at 7% increase over the prior year’s Quarter 4 results. [7] As of 2016, 21st Century Fox is the 4th highest grossing media company in the world, only behind Alphabet, The Walt Disney Company, and Comcast. [8]

Current Projects/ Recent Releases:

Some Fox films in theaters now include: Trolls, Keeping Up with the Jones, and the recent release Rules Don’t Apply.

Rules Don’t Apply

Rules Don’t Apply was released by Twenty-First Century Fox on November 23rd, 2016, two days prior to Thanksgiving. There are many Thanksgiving releases this week from competing studios such as: Moana from Walt Disney Studios and Bad Santa 2 from Broad Green Pictures. We’ll see how Rules Don’t Apply performs in comparison to the films from other studios. Their last release, Trolls, was expected to gross 35 to 40 million, yet ended up grossing $45.6 million in its first week. [9]

Assassins Creed

[10]

Assassins Creed is based on the video game franchise and will hit theaters on December 21st, 2016. Several sources in the trade say that Assassins Creed won’t make money. The movie budget has not been released yet, but it is estimated to be between $100-200 million.[11] With a movie budget that high it could be hard to break even.

Listed in the image below are future releases to look out for:

[12]

What’s happening/ News:

On July 26th, 2016 former Fox CEO and Chairman, Robert Ailes, resigned from his position. Ailes was replaced by successor Rupert Murdoch. [13] The scandal broke out when Gretchen Carlson, an ex Fox News Anchor, filed a sexual harassment lawsuit against Ailes. Carlson won the case and received a settlement of $20 million from Fox. Afterward, dozens of other female workers at Fox came forward also accusing him of sexual harassment. Megyn Kelley, a Fox News Journalist, writes about her experience of sexual harassment from Robert Ailes in her new book Settle For More, released on November 15th, 2016. When corporate leaders are misogynistic and abuse their power, it shows a lot about the culture of the studio. The scandal has caused public-relation issues for Fox. Hopefully Murdoch assuming this position of power will end favorably. [14]

On another note, on Election Day 2016, FOX News debuted a new studio in honor of the company’s 20th anniversary. The studio cost $30 million. [15]

[16]

However, despite the new glitzy studio, FOX was still outnumbered by its opponents in the news sector of election coverage ratings; FOX News averaged 3.25 million viewers, putting it in fourth place behind NBC, ABC and CBS consecutively. [17]

However, Bill Shine and Jack Abernethy, the co-presidents of FOX News Channel, are both certain the new studio will lead to success. After gathering colleagues in the new studio, Abernethy assured them: “Our records show that about a little over 190 people have been here from the very beginning, continuously,” Jack said. “Most of you, like me, have been here for only a portion of that time. As I get reacquainted with folks, I find tremendous amount of pride in what we do here – I can assure you that Bill and I are going to do our very best to innovate.” [18]

Future Outlook:

An article written for Forbes suggests that three factors will spur growth for 21st Century Fox. These factors are:

Increasing advertising revenue due to premium content
- Because more than half of 21st Century Fox’s revenue comes from subscriptions and advertising, and based on recent success in ratings, it is likely that both consumers and advertisers alike will be drawn to the content. An example of a movie that indicates the recent success of the company’s content is Deadpool,
The ability to stream media
- With a 30% stake in Hulu, the company can compete with other media-streaming powerhouses like Netflix. With the addition of live streaming television on Hulu next year, FOX can expect a boost in revenue. Fox is also hoping to make streaming arrangements with Sony and Sling TV.
Entertainment production (both film and television)
- With an expected increase from $2.3 billion within the next year in terms of licensing revenues, and 20% of Fox’s value grounded in the production of film and television series, Fox is expecting growth and loyalty from distributors as new distribution platforms continue to emerge. [19]

Sources:

[1] “21st Century Fox Logo | Logok.” Logok. May 08, 2014. Accessed November 16, 2016. http://logok.org/21st-century-fox-logo/.

[2] “Executive Team.” Executive Team | 21st Century Fox. N.p., n.d. Web. 29 Nov. 2016. https://www.21cf.com/management/executive-team.

[3] “Businesses.” Businesses | 21st Century Fox. Accessed November 16, 2016. https://www.21cf.com/businesses.

[4] “Businesses.” Businesses | 21st Century Fox. Accessed November 16, 2016. https://www.21cf.com/businesses.

[5] Great Speculations. “Fox’s Broadcasting Revenue Growth Is Largely Dependent On Its Sports Programming.” Forbes. February 9, 2016. Accessed November 16, 2016. http://www.forbes.com/sites/greatspeculations/2016/02/09/foxs-broadcasting-revenue-growth-is-largely-dependent-on-its-sports-programming/#65c1dd6269b3.

[6] “21st Century Fox Inc. Cl A.” FOXA Stock Quote – 21st Century Fox Inc. Cl A Stock Price Today (FOXA:NASDAQ) – MarketWatch. N.p., n.d. Web. 29 Nov. 2016. http://www.marketwatch.com/investing/stock/foxa.

[7] Statista. “Revenue Generated by 21st Century Fox in the Fiscal Years 2011-2016. Accessed November 27th, 2016. https://www.statista.com/statistics/262513/21st-century-foxs-annual-revenue/

[8] O’Reilly, Lara. “The 30 Biggest Media Companies in the World.” Business Insider. Business Insider, 31 May 2016. Web. 29 Nov. 2016. http://www.businessinsider.com/the-30-biggest-media-owners-in-the-world-2016-5/#4-21st-century-fox–1867-billion-in-media-revenue-27.

[9] “‘Rules Don’t Apply’ Roundtable with Warren Beatty and Key Crew.” IndieWire. N.p., 27 Nov. 2016. Web. 29 Nov. 2016. http://www.indiewire.com/2016/11/rules-dont-apply-warren-beatty-crew-roundtable-interview-1201749928/.

[10] Nicolas Wright & James A. Woods and Dean Devlin & Roland Emmerich and James Vanderbilt. “Independence Day: Resurgence.” Independence Day: Resurgence | 20th Century Fox. N.p., n.d. Web. 29 Nov. 2016. http://www.foxmovies.com/movies/independence-day-resurgence.

[11] “Ubisoft Doesn’t Think Assassin’s Creed Movie Will Be Very Profitable.” Screen Rant. N.p., 08 July 2016. Web. 29 Nov. 2016. http://screenrant.com/assassins-creed-movie-ubisoft-box-office-predictions/.

[12] “20th Century Fox Upcoming Releases.” 20th Century Fox Upcoming Releases. N.p., n.d. Web. 29 Nov. 2016. http://www.boxofficemojo.com/studio/chart/?view2=upcoming&view=company&studio=fox.htm.

[13] 21 CF Staff. “Roger Ailes Resigns as Chairman and CEO of Fox News Channel and Fox Business Network, and Chairman Fox Television Stations”. 21st Century Fox Press Releases. July 21, 2016. Accessed November 22, 2016. https://www.21cf.com/news/21st-century-fox/2016/roger-ailes-resigns-chairman-and-ceo-fox-news-channel

[14] Grynbaum, Michael. “Fox Settles With Gretchen Carlson Over Roger Ailes Sex Harassment Claims“. The New York Times. September 6, 2016. Accessed November 23, 2016. http://www.nytimes.com/2016/09/07/business/media/fox-news-roger-ailes-gretchen-carlson-sexual-harassment-lawsuit-settlement.html

[15] 21 CF Staff. “FOX News Channel Celebrates Its 20th Anniversary by Introducing a New State-of-the-art Studio to Debut on Election Day.” FOX News Channel Celebrates Its 20th Anniversary by Introducing a New State-of-the-art Studio to Debut on Election Day | 21CF BLOG. October 7, 2016. Accessed November 16, 2016. https://blog.21cf.com/blog/2016/10/07/fox-news-channel-celebrates-20th-anniversary-new-studio.

[16] “Fox News Unveils Nearly $30 Million Election-Night Studio.” AdWeek. November 6, 2016. Accessed November 16, 2016. http://www.adweek.com/news/television/fox-news-unveils-nearly-30-million-election-night-studio-174405

[17] “Election Night Broadcast Numbers down a Bit from 2012: Tuesday Final Ratings.” TV By The Numbers by Zap2it.com. November 10, 2016. Accessed November 16, 2016. http://tvbythenumbers.zap2it.com/daily-ratings/tuesday-final-ratings-nov-8-2016/.

[18]”Fox News Unveils Nearly $30 Million Election-Night Studio.” AdWeek. November 6, 2016. Accessed November 16, 2016. http://www.adweek.com/news/television/fox-news-unveils-nearly-30-million-election-night-studio-174405

[19] Forbes. “These Three Factors Could Drive Growth For 21st Century Fox In Future”. September 27, 2016. Accessed November 28, 2016. http://www.forbes.com/sites/greatspeculations/2016/09/27/these-three-factors-could-drive-growth-for-21st-century-fox-in-future/#56b0884d30ae.

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

Disney/ABC– (TV broadcast & cable properties only)

Posted on December 1, 2014 by htfergus

[1] Disney/ABC Television Group Logo

by Alex Alomar

ABOUT DISNEY/ABC TELEVISION GROUP

Disney/ABC Television Group, through its many businesses is involved in the production and distribution of entertainment and news to the public. It is a premier entertainment media company. Disney/ABC regulates all of The Walt Disney television properties. [2] This includes properties such as ABC Television Network, ABC Entertainment Group, Disney Channels Worldwide, ABC Family, ABC News and more. [3]

Television Properties

[4] ABC Family Logo

Disney/ABC Television provides the world with a diverse composition of entertainment. One of its properties is ABC Family., which is one of the cable’s top 10 networks. [6] The network’s programming includes original series and movies. Pretty Little Liars (the No. 1 scripted show for females between the age of 12-34 in the year 2012) and Melissa & Joey (cable’s No. 1 program at 8 P.M. on Wednesdays) are both original ABC Family programs that contribute to its great success. ABC Family has a long list of original movies including Labor Pains, which features American actress and recording singer Lindsay Lohan.[6]

[5] Disney XD Logo

Another popular property that lies under Disney/ABC Television group is Disney XD. The cable channel was created by Disney for a rare outcome that had been yet to be distributed to cable. It provides a flashy series that include both animated and live-action original programming, including movies and series. It reaches an audience of those who are 6-14 and more specifically, boys in that age range (females still included). Disney XD programming pushes children on their chase for sports (Disney, adventure and humor.) [7] To achieve their goals, Disney XD joined ESPN in creating an original series titles Disney XD ESPN Sport Science. The program features two hosts who talk about myths in sports. The program has guest appearances from both celebrities and professional sports athletes. [8]

These are only two of many properties that are owned by fall under Disney/ABC Television Group. All programming from Disney/ABC Television Group properties reach a different fragment of the general audience. The company is able to attract the views from crowds that are female or male, young or old etc.

KEY EXECUTIVES

[9] Anne Sweeney

[10] Ben Sherwood

Anne Sweeney is the current President of Disney/ABC Television Group as well as the Co-Chair of Disney Media Networks. She has been involved with the company since 1996. Sweeney is in charge of managing Disney’s entertainment and news television properties. [11]

Ben Sherwood became the President of ABC News in December 2010. [12] Sherwood has been named to succeed Anne Sweeney as President of Disney/ABC Television Group. He will become active as President on Feb 1st, 2015, but is currently involved in all decision making that involves Disney/ABC Television Group as a co-president. [13]

FINANCIALS

The Walt Disney Company, in its third quarterly report of the year, revealed that it has a revenue of $12.16 billion, and increase for its second quarterly report of $11.65 billion. [14] Disney’s cable businesses ended its fourth quarter with a 5% increase in revenue, ending with a total of $5.2 billion. [15] A big contributor in the increase of revenue was ABC’s broadcasting of the FIFA World Cup, which concluded in a boost of advertisement revenue. [16]

DISNEY/ABC TELEVISION GROUP NEWS

New Deal with Streaming Company Shomi

[18] Shomi Logo

Disney/ABC Television has signed a deal with Shomi. Shomi is a Canadian company that provides an online streaming service, much like Netflix and Hulu. It is a new company that was founded this past August and officially launched on November 4th. [17] The deal includes family and kid friendly content from Disney. Well known films such as 102 Dalmatians and Who Framed Roger Rabbit, will now be available to Shomi users. A big part of the deal is the programming Shomi is obtaining from ABC programming. Shame will be streaming shows from ABC, ABC Family as well as ABC Studios. This includes two of ABC’s extremely successful TV series, Scandal and Revenge. [19]

Relaunch of WATCH Applications

[20] WATCH Applications

Disney/ABC Television Group has announced that it is relaunching its WATCH applications. The WATCH applications include an a different application for multiple properties. There is an application for ABC, ABC Family, Disney Channel, Disney XD and Disney Junior. The new features for the ABC application include allowing the user to to post on Facebook or Twitter about the current show they are watching without having to close and leave the application. [20] Disney/ABC Television Group created Disney Junior en Español, which will now allow users to watch and experience the application in Spanish. You can now also access the WATCH applications on Android and Kindle Fire Devices. The last addition to the application was being able to listen to Radio Disney live. [21]

New Fall 2014 Series: How To Get Away with Murder

[22] How to Get Away with Murder

ABC’s new original series How To Get Away with Murder, premiered this past fall on September 25th. The TV series is a drama produced by Shonda Rhimes, who is known for her with Grey’s Anatomy and Scandal. The show as been nothing but success for ABC. The show had the biggest new series premier of the Fall 2014 season. [23] It received 14.3 million views and a demo rating of 3.9. Although the number of viewers of the show has dropped, it is still pulling a strong audience. The show’s fall finale had 9.8 million viewers. [24]

SOURCES

[1] Disney/ABC Television Group Logo, RT 12/1/2014

[2] Disney/ABC Television Group Information, RT 12/1/2014

[3] The Walt Disney Company’s Properties, RT 12/1/2014

[4] ABC Family Logo, RT 12/1/2014

[5] Disney XD Logo, RT 12/1/2014

[6] ABC Family Programming Information, RT 12/1/2014

[7] Disney XD Programming Information, RT 12/1/2014

[8] Disney XD ESPN Sport Science, RT 12/1/2014

[9] Anne Sweeney, RT 12/1/2014

[10] Ben Sherwood, RT 12/1/2014

[11] Anne Sweeney Biography, RT 12/1/2014

[12] Ben Sherwood Biography, RT 12/1/2014

[13] Ben Sherwood Becoming President, RT 12/1/2014

[14] The Walt Disney Compnay Financials, RT 12/1/2014

[15] Disney Broadcasting Financials, RT 12/1/2014

[16] ABC Financials, RT 12/1/2014

[17] Shomi Launch Date, RT 12/1/2014

[18] Shomi Logo, RT 12/1/2014

[19] Disney/ABC and Shomi Deal, RT 12/1/2014

[20] WATCH Applications Information, RT 12/1/2014

[21] Disney Watch Applications’ Updates, RT 12/1/2014

[22] How To Get Away With Murder Image, RT 12/1/2014

[23] How To Get Away With Murder Season Premier, RT 12/1/2014

[24] How To Get Away With Murder Season Finale, RT 12/1/2014

DreamWorks Animation SKG

Posted on December 1, 2014 by gsantana

by Gabriel Santana

DreamWorks Animation SKG

1000 Flower Street | Gendale, CA 91201

DreamWorks Animation SKG Logo [1]

A Brief History

DreamWorks Animation is the product of Steven Spielberg, Jeffrey Katzenberg and David Geffen [2]. Prior to being established, DreamWorks Animation operated as a business division under DreamWorks LLC, founded by Spielberg, Katzenberg and Geffen in 1994 [3]. DreamWorks LLC gained recognition for producing Academy Award-winning films such as Gladiator and American Beauty [4]. From such success, Jeffrey Katzenberg was able to lead DreamWorks Animation as a publicly-traded company on October 28th, 2004 [5].

Jeffrey Katzenberg [6]
CEO and Director

Ann Daly [7]
President

Lew Coleman [8]
Vice-Chairman

Fazal Merchant [9]
Chief Financial Officer

Making A Name

With a strong, creative team and a passion for story, DreamWorks Animation SKG has become the world’s largest animation studio with a total of 30 feature-length films in its repertoire [10]. It has produced some of the most unforgettable and highly entertaining animated films of all time, the likes of which include Shrek, Madagascar and Kung Fu Panda. Each of the films mentioned have met both commercial and critical acclaim, and have done so well to even produce sequels that continue their success.

Promotional Banner for Shrek [11]

Finances

Money Talks

In late September of 2014, DreamWorks Animation began acquisition talks with Softbank, one of Japan’s largest telecommunications and Internet providers, for an approximate amount of $3.3 billion dollars. Softbank holds a focus on mobile Internet and content specific to the medium. Talks of an acquisition then grew quiet as the company was said to not be necessarily interested in takeover as much as partnership in regards to content [ ].

In early November of 2014,

Regaining Balance

Future Releases

In television, DreamWorks Animation SKG will release another original series on Netflix, the leading internet television network. All Hail King Julien will debut on December 19th, 2014. The show will tell the story of the world’s favorite lemur partying it up in Madagascar prior to the arrival of Alex and the gang from New York [ ].

In film, DreamWorks Animation SKG has a big year planned for 2015. Home, releasing on March 27th, 2015, is the story of a young girl named Tip who befriends Oh, an alien of the Boov race. The Boov’s have taken over planet Earth as their new home, while Tip and Oh journey in search as to why [ ]. B.O.O.: Bureau of Otherworldly Operations follows with a release on June 5th, and focuses on a ghost who must revise his approach to haunting by going back to ghost school [ ]. Closing out the year is Kung Fu Panda 3, with an approximate release date of December 23rd [ ]. In this third installment of the widely successful series, Po must confront a threat that hits home and another that’s supernatural [ ].

Down the road, DreamWorks Animation SKG plans to release Boss Baby on March 18th, 2016, a comedy starring the voices of Kevin Spacey and Alec Baldwin. The two renowned actors will play rival bosses, who are actually babies, battling it out for the World’s Best Boss title [ ].

Marvel’s recent announcement of upcoming superhero films, which include The Avengers: Age of Ultron, and Pixar’s Inside Out conflicts with DreamWorks Animation’s release of B.O.O. [ ]. B.O.O. is the first and most likely film of the 2015 line-up that DreamWorks Animation may have to move [ ]. Regardless, both 2015 and 2016 look promising of commercial and critical success for DreamWorks Animation SKG.

Conclusion

DreamWorks Animation SKG has had it’s fair share of ups and downs, like any company vying to remain prominent in the industry. The company has a solid track record and consistently produces content that pushes the boundaries of feature-length animated film with each release. Katzenberg and his team at DreamWorks Animation SKG are pressing forward, displaying perseverance as they continue to cater to the needs of both the film industry and audiences around the world.

Sources:

[1] Courtesy of DreamWorks Animation SKG Twitter Account

[2] DreamWorks Animation SKG | Investor Relations | FAQ

[3] DreamWorks Animation SKG | Investor Relations | FAQ

[4] DreamWorks Animation SKG | Jeffrey Katzenberg | Bio

[5] DreamWorks Animation SKG | Investor Relations | FAQ

[6] Courtesy of DreamWorks Animation SKG | Management Team

[7] Courtesy of DreamWorks Animation SKG | Management Team

[8] Courtesy of DreamWorks Animation SKG | Management Team

[9] Courtesy of DreamWorks Animation SKG | Management Team

[10] DreamWorks Animation SKG | Jeffrey Katzenberg | Bio

[11] Courtesy of DreamWorks Animation SKG | Movies | Shrek

[ ]

Focus Features

Posted on December 1, 2014 by jepflieg

by John Pflieger

[21] Focus Features Logo

Focus Features is a film production and distribution company that serves at the art house film department of the NBCUniversal brand. Started in 2002, Focus Features is currently run by CEO Peter Schlessel, who took the helm in late 2013 after Focus and the FilmDistrict merged in 2013 [1]. Focus Features has had great success over the last 12 years with critically acclaimed releases like Brokeback Mountain, Dallas Buyers Club, and Lost in Translation just to name a few. The former being the most successful Focus Feature production to date, grossing $83 million and receiving 3 Academy Awards and receive nominations for 5 more along with a slue of other awards [2][3].

Financials

Catering usually to more specific audiences then some of the major production house, Focus Features is currently ranked 12^th for top grossing production companies in the 2014 year, with a total gross of $104 million, which puts them in control of 1.1% of the current market share [4]. Though falling short to its 5^th ranked older brother Universal Pictures, the smaller production company has managed to sustain an average gross of $8.7 million per release over the course of its 11 releases in 2014 [4][5]. With award season approaching, Focus has the potential to see continued growth in revenue through the beginning of 2015. With Oscar buzz surrounding actor Eddie Redmayne of Focus Features most recent release The Theory of Everything, a nomination for best actor has the potential to increase revenue by about $600,000, where a win in the category could yield nearly $6 million in increased revenue[6][7]. Though Focus is only responsible for a small portion of NBCUniversal’s $1.4 billion filmed entertainment revenue, the small production house continues to boast impressive figures[8].

Recent Releases

“The Theory of Everything “

[22] The Theory of Everything Poster

The biographical film chronicles the life of astrophysicist Stephen Hawking as he fell in love with his wife Jane, explored the science of universal time, and struggled with the debilitating neurological disease of ALS [9]. Eddie Redmayne, who plays Steven Hawking, has already been labeled by Variety as one of the main contenders for the Best Actor Academy Award[6]. The film, which opened November 7^th in a limited release to 5 theaters grossed $208,763 and continued to succeed as it hit a wide release November 26^th in 802 theaters and grossed slightly over $5 million in its wide release opening[10]. As of December 1^st the film has grossed $9.6 million and has the potential to see continued success as the holidays and award season approaches[10].

“Kill The Messenger”

[23] Kill The Messenger Poster

A political thriller starring Academy Award nominated actor Jeremy Renner, tells the story of journalist Gary Webb, who stumbles across a dark story that involves drugs and government cover-ups[11]. The film opened October 10^th in 374 theaters and grossed $941,809 in its opening weekend. At its widest relapse the film was only in 427 theaters and to date has only grossed $2.4 million, having been stifled by the Buena Vista release of “Alexander and the Terrible, Horrible, No Good, Very Bad Day” which was release the same day and saw far greater success[12][13].

“The Boxtrolls”

[24] The Boxtrolls Poster

This family film tells the tail of an adventure of a group of unique creatures as they raise an orphan and fight for their lives in an effort to thwart their local town villain[14]. This film has been the most successful release for Focus Features this year having grossed nearly $50 million. The feature opened September 26^th 3,464 theaters and gross $17.2 million, which accounted for 34.9% of the films total gross domestically[15]. The film went on to gross $56.2 million worldwide, making a total of $105.7 million, which is a huge success not only for Focus Films, but also for the small Oregon based stop-motion animation house Laika Studios, which carried out the animation for “The Boxtrolls.”[15][16] The small animation studio also produced “ParaNorman” and “Coraline” for Focus Features, which are both in Focus Feature’s top 5 for most successful domestic grossing films[5]. Only days after the opening of “The Boxtrolls”, Focus Features signed an agreement with Laika to work with them on 3 more feature length films[17]. This agreement proves to be especially wise when looking at the fact that all three of the films that Laika and Focus have teamed up on have grossed over $100 million world wide, making them highly profitable[17]. There is still room for more success in the coming months, seeing that “The Boxtrolls” received 13 nominations in this years Annie Awards, and is only expected to receive more nods as award season get underway[18].

Upcoming

Focus Features consistently releases 10-12 films a year, making them a highly productive production house for the scale of their operation[5]. As of now, Focus has announced a few new projects that will be coming up in 2015 which will have the potential to make quite a splash in the market place in the upcoming year.

[25] 50 Shades of Grey Poster

One of the more anticipated Focus Features releases of 2015 is the adaptation of the novel 50 Shades of Grey. The popular 3 part book series will be treated as a trilogy by focus and will follow the saga of the novels quite closely. The film is scheduled to be released on Valentines Day, offering an interesting option for holiday viewing[19].

[26] Black Sea Poster

Another highly anticipated 2015 Focus release is the upcoming release starring Jude Law, “Black Sea”. The apparent action movie casts Law as a submarine captain who is working with a team of Russian and English crew members to salvage Nazi gold in a sunken U-boat. The film is scheduled to be released January 23 of 2015[20].

Future of Focus Features

The future for Focus Features appears to be very bright. With a recent 3 film deal with Laika Studios, this is a air of optimism, because with the success of the studio’s earlier films, we can only assume that with the proper marketing and distribution the next 3 should be just as successful. Also with the “50 Shades of Grey” series on the horizon, there are multiple prospects for continued growth. As we see the success of Comcast and NBCUniversal and their continued growth, the potential for the expansion of Focus Features is exponentially increased.

Citations:

1. Focus Features Announces More Key Senior Hires, hollywoodreporter.com, RT; 12/01/14

2. Brokeback Mountain, Boxofficemojo.com, RT: 12/01/14

3. Brokeback Mountain Awards, imdb.com, RT: 12/01/14

4. Studio Market Share, Boxofficemojo.com, RT: 12/01/14

5. Focus Features, Boxofficemojo.com, RT: 12/01/14

6. Contender: Lead Actor Preview, Variety.com, RT: 12/01/14

7. How Oscar Nominations Affect the Box Office, Businessinsider.com, RT: 12/01/14

8. Comcast Earnings Release, cmcsk.com, RT: 12/01/14

9. The Theory of Everything, Rottentomatos.com, RT: 12/01/14

10. The Theory of Everything, Boxofficemojo.com, RT: 12/01/14

11. Kill the Messenger, Rottentomatos.com, RT: 12/01/14

12. Kill the Messenger, Boxofficemojo.com, RT: 12/01/14

13. Alexander and the Terrible, Horrible, No Good, Very Bad Day, Boxofficemojo.com, RT: 12/01/14

14. The Boxtrolls, Rottentomatos.com, RT: 12/01/14

15. The Boxtrolls, Boxofficemojo.com, RT: 12/01/14

16. Laika Studios, Laikastudios.com, RT: 12/01/14

17. Focus Features, Laika Ink Three-Film Pact, hollywoodreporter.com, RT; 12/01/14

18. Boxtrolls leads Annie Award nominations, bbc.com, RT; 12/01/14

19. 50 Shades of Grey, fiftyshadesmovie.com, RT; 12/01/14

20. Black Sea, focusfeatures.com, RT; 12/01/14

21. Focus Features Logo, thewrap.com, RT; 12/01/14

22. The Theory of Everything Poster, imdb.com, RT; 12/01/14

23. Kill the Messenger Poster, imdb.com, RT; 12/01/14

24. The Boxtrolls Poster, imdb.com, RT; 12/01/14

25. 50 Shades of Grey Poster, imdb.com, RT; 12/01/14

26. Black Sea Poster, imdb.com, RT; 12/01/14

Rdio

Posted on December 1, 2014 by mrondra

Rdio logo. Photo courtesy of Rdio.

Contact Information [1]
Phone: (415) 763-7211
62 First Street, Suit 500
San Francisco, CA 94105
www.rdio.com

History

Rdio is an online music streaming service based in San Francisco [2]. It was founded in 2010 by Skype co-creator Janus Friis and began entirely as a subscription based music service [2]. While Rdio has been lauded for its design within the technology community, the company has experienced a slower take off the ground [2]. Rdio attempted to become a more holistic entertainment service through its launch of Vdio, a video service, in April of 2013 [2]. However the project was unsuccessful and discontinued just eight months later. Following a series of layoffs, Rdio announced on December 3rd of 2013 that Anthony Bay would be appointed as CEO [3]. Bay was previously global head of video at Amazon [3].

Key Executives [1]

Janus Friis, founder of Rdio. Photo courtesy of Forbes.com

Anthony Bay, Chief Executive Officer of Rdio. Photo courtesy of Patrick T. Fallon.

Carter Adamson, Chief Operating Officer. Photo courtesy of Lien Multimedia

Drew Larner, Vice Chairman and Strategic Advisor. Photo courtesy of fastcocreate.com

Scott Bagby, President of International. Photo courtesy of The Music Void.

Financials

On February 3rd of 2011 Rdio released it had raised $17.5 million worth of funds with a list of investors including Friis, Mangrove Capital Partners, and Skype [4]. Rdio’s biggest deal to date struck on September 16, 2013 when it announced a partnership with Cumulus Media, the second largest radio operator in the US [5]. In exchange for granting Cumulus an estimated 15% equity stake in Pulser Media, Rdio’s parent company, Cumulus will provide Rdio with programming and promotional services valued at $75 million over five years [6]. Although this deal was a trade and brought in no cash for either Rdio or Cumulus, it allowed Rdio the capability to offer a “fermium” subscription model [7]. Cumulus’ sale agents will sell commercial spots and share the ad revenue [7]. Rdio has yet to reveal its subscription numbers, however Spotifiy, its greatest rival, currently has 24 million users with 6 million paying [6].

Current News

Subscription Switch-Ups
Rdio proved it could adapt to the music streaming landscape after announcing it would offer a free subscription model for users through ad-supported stations this year [7]. It is essentially an Internet radio experience although Rdio still offers its paid subscription options, Web and Unlimited. This coincides with the hope that a freemium model will serve as a gateway for users to sign up for a paying subscription. Web allows full access to computers for $4.99 per month while Unlimited extends to all devices for $9.99 per month [8]. While Rdio has offered family plans since 2011, earlier this month the streaming service prices were lowered to $5 for each additional family member included on the plan (which levels its family plan price with Spotify) [8]. A family of two costs $14.99 per month with $5 for each additional person however if a family is bigger than five, users must pay the full monthly price of $9.99 for any additional members [8].

Taylor Swift Streaming Debacle

Taylor Swift’s music remains on Rdio despite her Spotify withdrawal. Photo courtesy of Rdio.

Taylor Swift made headlines last month when she pulled all her music from Spotify as she feels they do not fairly compensate music creators and is uncomfortable with the business model [9]. This has brought about questions for the future of music streaming with regard to whether other big name artists will follow suit in pulling their music. Bay has been speaking out in support of Swift and all artist’s choice in how their music is distributed [10]. Due to Swift’s fall out with Spotify, Rdio has been drawing attention to the fact that users still have access to her full catalog of music (with the exception of her most recent album, 1989) through both Rdio’s ad-supported Internet radio and paid subscriptions [10]. Additionally, Rdio currently has 30 million tracks in its library–10 million more than Spotify [11].

Toronto Film Festival Partnership [12]

Ellie Goulding during a Rdio sponsored performance. Photo courtesy of ET Canada.

This past September Rdio was the official music partner for the Toronto International Film Festival. Rdio had a “music hub” at the event with giveaways, listening stations, as well as live music. In fact, Rdio sponsored a free Ellie Goulding concert at Massey Hall. Attendees just needed to visit the “Rdio House” to receive tickets where they could browse through Rdio products and plug into listening stations to listen and browse through Rdio’s library of music. Bay explained the partnership with Toronto was a marketing opportunity to strengthen their presence in Canada.

Roku Launches Rdio App [13]
In August of 2014 Rdio announced plans to launch a new app on Roku. Rdio has been investing heavily in promotion, such as having a Rdio app featured on Roku’s television remote controls. With this, Rdio joins the ranks of just three other services (Netflix, Amazon, Vudu) who have been allotted a remote control button. As a result of this deal, Rdio can now be accessed through three avenues of television: Roku, Chromecast, and Apple TV.

Future Plans

Audio Upgrade [14]
On October 16th Rdio announced its plans to upgrade their entire music catalog to AAC audio files, which is a higher sound quality than MP3. This ushers in a new period for Rdio where users can choose which sound quality they prefer listening to on all devices. Paying users even have the ability to decide which sound quality they want for downloaded songs during offline listening. Rdio also expects that changing from MP3 streaming to 64 AAC streaming could reduce data consumption by a third. This is also welcome news for musicians such as Grateful Dead band member Bob Weir, who worries that poor audio quality during streaming impedes upon the listening experience . Therefore Weir has granted Rdio an exclusive selection of tracks from TRI Studios to support the company’s move in raising the bar of audio quality.

Global Expansion

Rdio acquisition of 9 new territories brings its reach to 60 countries

Rdio acquisition of 9 new territories brings its total reach to 60 countries. Photo courtesy of Rdio.

Rdio announced in May of 2014 that it would be available in nine additional countries throughout Europe and Asia, bringing its total reach to 60 countries [15]. There are five Mediterranean and Eastern European countries that Rdio will now be able to reach totaling 25 million people in Greece, Cyprus, Croatia, Slovakia, and Slovenia [15]. Asia has remained a relatively untapped market for Rdio although its services have been available in Malaysia and Hong Kong for just over a year [15]. 400 million people reside in the Asian countries Rdio is currently working toward expanding–Indonesia, the Philippines, Thailand, and Singapore [15]. While all five of the European territories have been classified as “high income”, Singapore remains the only Asian country that is also categorized within this higher income bracket. In an effort to further push its international reach, this March Rdio acquired Indian streaming service Dhingana with plans to relaunch it later this year [15]. At the time of the purchase, Dhingana had 9 million monthly active users [16]. It was also projected that India will become the largest purchaser of smartphones after China in 2014, an estimated 92% of which will be new users [16]. These are promising statistics considering over 75% of Dhingana users access the streaming service through their mobile devices [15].

Sources

[1] Company Overview of Rdio, Inc. investing.businessweek.com Retrieved: 28 Nov 2014

[2] CEO: Rdio’s problem? Not enough people use Rdio cnet.com Retrieved: 24 Nov 2014

[3] Rdio Names Former Amazon Exec Anthony Bay Its New CEO techcrunch.com Retrieved: 24 Nov 2014

[4] Rdio secures USD 17.5 mln in financing round telecompaper.com Retrieved: 13 Nov 2014

[5] Internet Radio Business with Free Listening Update billboard.com Retrieved: 24 Nov 2014

[6] Music Service Rdio in Deal With Cumulus nytimes.com Retrieved: 13 Nov 2014

[7] Rdio to Expand Its Offerings as Cumulus Partnership Heats Up This Summer billboard.com Retrieved: 13 Nov 2014

[8] Rdio Follows Spotify, Drops Family Plan Pricing pcmag.com Retrieved: 28 Nov 2014

[9] Here’s Why Taylor Swift Pulled Her Music From Spotify time.com Retrieved: 9 Nov 2014

[10] Rdio on Taylor Swift’s Spotify block: “This is art. It’s the artist’s choice” theguardian.com Retrieved: 13 Nov 2014

[11] Spotify and Rdio square off calgaryherald.com Retrieved: 30 Nov 2014

[12] Rdio Partner With Toronto Film Festival billboard.com Retrieved: 28 Oct 2014

[13] Rdio is getting ready to launch a completely revamped Roku app gigaom.com Retrieved: 24 Nov 2014

[14] Rdio upgrades the audio quality of its entire music library venturebeat.com Retreived: 28 Nov 2014

[15] Rdio Now Playing In Nine More European & Asian Countries billboard.com Retrieved: 15 Oct 2014

[16] Smartphone explosion in 2014 will see ownership in India pass US theguardian.com Retrieved: 15 Oct 2014

Netflix

Posted on December 1, 2014 by ptharami

by Paul Haramis

Netflix Logo – Courtesy of pr.netflix.com [1]

Corporate Headquarters [2]

100 Winchester Circle, Los Gatos, CA 95032

Phone: +1 (408) 540-3700

www.netflix.com

Key Executives [3]:

Reed Hastings, Founder and CEO

David Wells, Chief Financial Officer

Ted Sarandos, Chief Content Officer

Neil Hunt, Chief Product Officer

Greg Peters, Chief Streaming and Partnerships Officer

Tawni Cranz, Chief Talent Officer

History [4]:

http://www.qualitylogoproducts.com/blog/wp-content/uploads/2012/02/netflix-envelope-e1329161999677.jpg

Netflix didn’t offer streaming services until 2007 – Photo courtesy of qualitylogoproducts.com

Reed Hastings founded Netflix in 1997 with Marc Randolph [4]. The company was initially founded to offer online movie rentals. Customers would select a movie from the database and have it shipped directly to their home. In 1999, the company introduced monthly subscriptions, a format that the company still uses today. In 2002, Netflix first became available to the public on the NASDAQ. In 2007, Netflix began its streaming service, which has allowed the company to see exponential growth. Today there are more than 53 million members of Netflix, all of whom are scattered around the globe.

Financials [5]:

Courtesy of Google Finance

The third quarter was disappointing for Netflix as it fell short of its internal projections. They believed they would make around $1.41 billion dollars, but instead made around $1.22 billion dollars [4]. This is largely due to new subscriptions coming in at 980,000 as compared to the 1.3 million they projected. One of the biggest factors for the lower than anticipated new subscribers is believed to be the rise in price for a monthly subscription. The price rose from $7.99 a month to $8.99 a month. As part of their damage control, Netflix said that sometimes they over-predict their growth and sometimes they undersell it. This was to much avail as Netflix saw a 25% decrease in their stock after their third quarter earnings were released [6]. Some entrepreneurs saw this as an unbelievable opportunity. Netflix addressed fears that this was due to competition by saying, “Since our per-member viewing and retention in the US are as strong as ever, we don’t think increased competition from piracy, TV Everywhere, Amazon Prime Instant Video, Hulu, etc., is a major factor” [5]. This still didn’t prevent stock from dropping another 4% when HBO announced that HBO Go will be offered as a stand-alone streaming service and users won’t need an HBO cable subscription [5]. Netflix has been predicting this since 2011 and believes that since the content available on both is different, that both companies can continue to grow moving forward [5].

Original Content:

Netflix’s original content continues to be extremely strong and Netflix responded by creating additional new content as well as renewing current shows. In the third quarter, Netflix released an adult animated show “BoJack Horseman” as well as two new seasons of their hit shows “Orange is the New Black” and “The Killing” [5]. In addition, today Netflix announced that season 3 of the hit-show House of Cards, will be premiering on February 27, 2015 [7].

According to a Centris survey, 72% of domestic subscribers have watched some type of Netflix original programming [8]. This is up 15% from the first quarter of 2014 and is a great sign for Netflix that their subscribers are at least sampling their original programming. In another survey conducted for Netflix, 57% of subscribers stated that “original content was ‘extremely important,’ ‘quite important,’ or ‘moderately important” [8]. This information has pushed Netflix to churn out more original programming as they have a new show, “Marco Polo” set to release on December 12th. Netflix has reportedly spent $90 million dollars on the production of the show, which is expected to rival HBO’s hit show, “Game of Thrones” [9].

Netflix also recently announced that they will be creating an original series based on Lemony Snicket’s, “A Series of Unfortunate Events.” The books were international best sellers and the move allows Netflix to broaden its content reach with original programming [10].

Innovation

Netflix continues to innovate to make their product better and more expansive. This past quarter, Netflix has taken a number of big steps. The first was the completion of a four-year long project to switch over to HTML5 streaming [11]. The move should increase their streaming services as they will prevent users from having to download Microsoft Silverlight to stream Netflix. One of the most important tools for Netflix is their personal recommendations tool. This suggests new shows to users based on their previous shows and allows subscribers to keep watching new content. Netflix is continually testing new algorithms to improve this service and recently introduced a new feature that recommends shows based on characters from their original programming [12]. For example, subscribers can see programs recommended by Claire Underwood.

Photo courtesy of zap2it.com

This is a new way that Netflix believes it can keep pushing content on subscribers and keep their strong retention rate. The biggest innovation that Netflix made in the third quarter was their announcement of Crouching Tiger Hidden Dragon 2 straight to Netflix and select IMAX theaters [13]. This has several theater chains up in arms as they wonder about the potential future repercussions. Netflix also struck a deal with Adam Sandler and Happy Madison Productions to produce four movies released straight to Netflix [14]. It will be interesting to see if this causes a rise in subscriptions to view content that is exclusive to Netflix. It will also be interesting to see how many viewers the films get as Nielsen recently announced they will begin to track online viewing [15]. Netflix has refused to show viewership in the past as a way to alleviate pressure from its programming. It will be interesting to see how the new Nielsen ratings will effect the recent proclamation made by CEO, Reed Hastings this past weekend [16].

Global Expansion

The ultimate end goal for Netflix is to be a wide spread global company. In this past quarter, Netflix has made big strides in achieving that goal.

Photo courtesy of static.amigobulls.com

Earlier in the quarter, Netflix officially launched in six new European countries: France, Germany, Austria, Switzerland, Belgium, and Luxembourg [17]. This launch opened up Netflix to 63 million potential new households [17]. To accommodate the new European countries, many local and European content have been added to the database, as well as the addition of subtitles or dubbing European language over some current American content [17]. In the past two weeks, Netflix announced they will be launching in Australia and New Zealand in March 2015 [18]. The move pushes the number of countries and territories that Netflix is in over 50 [18]. Netflix will continue to grow that number as they expand globally.

Overview and Moving Forward:

Overall, despite failing to reach their projections, this has been an extremely successful quarter for Netflix as they continue to expand in both subscriptions and capabilities. It will be extremely exciting to tract their growth in the new year!

Sources:

[1] Netflix Logo, Netflix Media Center, Retrieved: November 29, 2014

[2] Company Overview, Netflix Media Center, Retrieved November 29, 2014

[3] Netflix: Officers & Directors, Officers & Directors, Retrieved: November 29, 2014

[4] Company Timeline, Netflix Media Center, Retrieved: November 29, 2014

[5] Letter to Shareholders, Quarterly Earnings, Retrieved: November 29, 2014

[6] Netflix Stock is Down 25% on This One Key Number in Earnings, MoneyMorning.com, Retrieved: November 29, 2014

[7] Netflix Announces ‘House of Cards’ Season 3 Premiere Date, Entertainment Weekly, Retrieved: December 1, 2014

[8] Netflix U.S. Viewership of Original Series Surges in Q3: Study, Variety, Retrieved: November 30, 2014

[9] Netflix is Creating One of the Most Expensive TV Shows in the World – Here’s Why It’s So Important, Business Insider, Retrieved: November 30, 2014

[10] Netflix to Adapt Lemony Snicket’s ‘A Series of Unfortunate Events’ into an Original Series, Netflix Media Center, Retrieved: November 30, 2014

[11] Netflix Goes HTML5 for Laptop Streaming, ZDNet, Retrieved: November 30, 2014

[12] Netflix Uses its Fictional Characters for Recommendations, Netflix Life, Retrieved: November 30, 2014

[13] Netflix Announces First Original Movie, Netflix Media Center, Retrieved: November 30, 2014

[14] O’Doyle Rules! Adam Sandler Heads to Netflix, Netflix Media Center, Retrieved: November 30, 2014

[15] Nielsen Plans to Track Netflix, Amazon — And It’s a Big Deal, Forbes, Retrieved: November 30, 2014

[16] Netflix CEO Reed Hastings says Cable TV Will be Dead by 2030, MSN, Retrieved: December 1, 2014

[17] Netflix Now in France, Germany, Austria, Switzerland, Belgium, and Luxembourg, Netflix Media Center, Retrieved: November 30, 2014

[18] Netflix, Inc. Heads to the Land Down Under, Nasdaq, Retrieved: November 30, 2014

Viacom

Posted on December 1, 2014 by htfergus

by Timothy Chew

[1] Viacom Logo

About Viacom

Viacom is an American mass media company that specialises in entertainment content in over 160 countries across television, film, mobile and online platforms. Viacom is the parent company to many of the world’s most elite entertainment brands including MTV Networks, Nickelodeon, VH1, BET Networks, Comedy Central, SPIKE, TV Land, CMT, Paramount Pictures and many more [2 ].

Reaching approximately 700 million global subscribers, Viacom’s media networks have become one of the largest media conglomerates in the world [3].

Television Networks

[4] Viacom’s Media Network Brands

Viacom is home to a wide variety of television networks and has successfully developed original entertainment content that has reached a diverse audience [4]. MTV is best known for producing the MTV Video Music Awards, Nickelodeon is one of the most influential television channels in children’s entertainment and Comedy Central is America’s number one comedy channel. Viacom has produced many popular television shows including MTV’s Awkward and Teen Wolf, Comedy Central’s The Daily Show, Nickelodeon’s SpongeBob SquarePants and many more [4].

Film

[5] Paramount Pictures Logo

Paramount Pictures Corporation is a film production and distribution studio that is also a subsidiary of Viacom. Paramount is the distributor for DreamWorks Animation, Marvel, MTV Films, Nickelodeon Movies, Paramount Pictures, Paramount Classics and Paramount Vantage [4]. In 2014, Paramount grossed $953.6 million, becoming the sixth highest grossing film studio in the box office [6]. Paramount has produced many major blockbusters films including “Titanic“, “Transformers“, “Forrest Gump“, “Shrek” and “Iron Man” [7].

Financials

Viacom has remained well positioned financially this year. In the fourth quarter of 2014, Viacom’s revenue has increased 9% from $3.6 billion to $3.9 billion [8]. Viacom’s Media Networks annual year-end revenue has rose significantly from $9.6 billion to 10.1 billion [8]. However, Viacom’s film entertainment’s suffered a decrease in annual year-end revenue dropping from $4.2 billion to $3.7 billion [8]. Viacom’s year-end operating income has rose to 5% to a record breaking $4.13 billion from $3.9 billion in 2013 [8].

Key Executives

[9] Philippe Dauman, President and Chief Executive Officer

[10] Thomas E. Dooley, Chief Operating Officer

[11] Wade Davis, Chief Financial Officer and Executive Vice President, Strategy & Corporate Development

Recent News

[12] Viacom Acquires Channel 5

Viacom Closes Acquisition of UK’s Channel 5

After announcing a deal on May 1st, Viacom has closed acquisition of British’s broadcaster Channel 5 for $725 million on September 10th [12]. This deal was made to expand Viacom’s investment in its entertainment content produced in the UK. In addition, Nickelodeon will be partnering with Channel 5’s pre-school program, Milkshake. Viacom and Channel 5 will collaborate to produce a new animated series called “Nella the Knight“, their first co-production which is under Viacom’s wing [12]. Viacom and Channel 5 will co-fund “Nella the Knight“, which will be produced in the UK. Channel 5 will also air episodes of SpongeBob SquarePants and Teenage Mutant Ninja Turtles [12]. Besides that, MTV UK and Channel 5 are partnering to commission a new series called 10,000 BC. In 10,000 BC, 20 participants leave the comforts of their modern life and travel back to the Stone Age. This 10 episode series is set to premiere on Channel 5 in 2015 [12].

[13] Viacom and Sony Partnership

Viacom and Sony Inks Internet Distribution Deal

Viacom announced a major programming deal with Sony to license live and on demand programming for at least 22 Viacom cable networks including Comedy Central, MTV, Nickelodeon, SPIKE, and VH1 for Sony’s cloud-based TV service [13]. This agreement marks Viacom’s first deal to provide its networks for an Internet based live TV and Video On Demand service. Sony’s new cloud-based TV service will integrate live TV content with a dynamic experience people are accustomed to look for form their network. This new service will provide access to hundreds of hours of Viacom programming to over 75 million Internet-enabled Sony devices in the U.S [14].

Releases

[15] Teenage Mutant Ninja Turtles, directed by Jonathan Liebasman

Teenage Mutant Ninja Turtles

 “Teenage Mutant Ninja Turtles” is an action comedy film that made tremendous success in the box office this summer. The film was produced by highly acclaimed “Transformers” producer Michael Bay and directed by Jonathan Liebasman. “Teenage Mutant Ninja Turtles” was a recreation of the original comic series. On its opening weekend, this summer blockbuster locked in a staggering $65 million [16]. Since its release, “Teenage Mutant Ninja Turtles” has made $191 million in the US and $286 million in the international market. This film surprisingly remained number 1 in the box office on its first two weeks of release [16].Unlike many films released this summer, this film managed to surpass its budget within 3 weeks of its release, proving to be a major success [16].

[17] Interstellar, directed by Christopher Nolan

Interstellar

“Interstellar” is a Sci-Fi thriller starring Matthew McConaughey and Anne Hathaway. The film is based on a team of explorers who travel to space on an adventure to search for a habitable planet that could potentially save the human race [17 . The film was director by Christopher Nolan. Unfortunately, “Interstellar” failed to reach its predicted $50 million on its opening weekend, and only made $47.5 million instead [18]. Although, “Interstellar” has not done quite as well domestically by only making $138 million since its premiere, it has been a major success in the foreign market making a whopping $331 million, surpassing its $165 million budget. Since its opening weekend, the film has made over $468 million worldwide proving to be a global success [19].

Upcoming Releases

[20] Eye Candy, MTV’s New Thriller

MTV Announces New Scripted Thriller

MTV announced a new scripted thriller series called “Eye Candy.” The new series is based on R.L Stine’s popular novel “Eye Candy.” The series is produced by Jason Blum and Catherine Hardwicke. “Eye Candy” revolves around tech genius, Lindy who is played by Victoria Justice [21]. Lindy begins online dating and suspects one of her strange suitors to be a potential serial killer. Lindy then partners with a team of hackers to solve these mysterious murders on the streets of New York. “Eye Candy” is an 10-episode, hour-long thriller that is set to premiere on January 12, 2015 [21].

Trailer [22].

Mission-Impossible-5-starring-Tome-Cruise

[23] Mission Impossible 5, directed by Christopher McQuarrie

Mission Impossible To Release Fifth Film

The fifth instalment of the Mission Impossible franchise is hitting theatres next winter. The film is directed by Christopher McQuarrie and written by Drew Pearce. “Mission Impossible 5” is produced by Paramount and J.J Abrams’ Production Company, Bad Robot. In “Mission Impossible 5“, Tom Cruise will be returning to his role of Ethan Hunt. The previous film, “Mission Impossible: Ghost Protocol” set the record very high after grossing a staggering $695 million globally [24]. Mission Impossible 5 is set to release on December 25th, 2015. The film’s trailer has not been released [25].

Sources

[1] Viacom’s Logo, Variety.com, RT: 11/30/2014

[2] About Viacom, Viacom.com, RT: 11/30/2014

[3] “Advertising Revenue Drive Media Networks Business“, Marketrealist.com, RT: 11/30/2014

[4] Viacom Brands, Viacom.com, RT: 11/30/2014

[5] Paramount Pictures’s Logo, Paramountguilds.com, RT: 11/30/2014

[6] Studio Market Share, Boxofficemojo.com, RT: 11/30/2014

[7] Paramount’s All Time Box Office Results, Boxofficemojo.com, RT: 11/30/2014

[8] Viacom’s Fiscal Report 2014, Viacom.com, RT: 11/30/2014

[9] Philippe Dauman, Viacom.com, RT: 11/30/2014

[10] Thomas E. Dooley, Viacom.com, RT: 11/30/2014

[11] Wade Davis,Viacom.com, RT: 11/30/2014

[12] Viacom Closes Acquisition of Channel 5, Viacom.com, RT: 11/30/2014

[13] Viacom and Sony Partnership,Viacom.com, RT: 11/30/2014

[14] Viacom Inks Pact with Sony, Variety.com, 9/10/2014, RT: 11/30/2014

[15] Teenage Mutant Ninja Turtles Poster, Teenagemutantninjaturtlesmovie.com, RT: 11/30/2014

[16] Box Office Results, Boxofficemojo.com, RT: 11/30/2014

[17] Interstellar Poster, Interstellar-movie.com, RT: 11/30/2014

[18] “Interstellar Final Box Office Fails to Hit $50 Million Estimates”, Variety.com, 11/10/2014, RT: 11/30/2014

[19] Box Office Results, Boxofficemojo.com, RT: 11/30/2014

[20] Eye Candy Poster, Hollywoordreporter.com, 11/02/2014, RT: 11/30/2014

[21] MTV’s New Scripted Thriller, Viacom.com, RT: 11/30/2014

[22] Eye Candy Trailer, Youtube.com, RT: 11/30/2014

[23] Mission Impossible 5 Poster, Screenrant.com, RT: 11/30/2014

[24] Box Office Results, Boxofficemojo.com, RT: 11/30/2014

[25] “Mission: Impossible 5 to Hit Theaters in December 2015”, Hollywoodreporter.com, 11/13/2014, RT: 11/30/2014

AMC Networks

Posted on December 1, 2014 by htfergus

by Griffin Morrow

AMC Networks and their cable family. [31]

Profile

AMC Networks Inc., operating under the title of Rainbow Media Holdings for decades, is a former subsidiary of Cablevison that was spun off in the Summer of 2011 as a publicly traded company [1]. The New York based organization owns and operates cable channels AMC, IFC, WE tv, and SundanceTV and recently acquired a stake in BBC America [2]. AMC, the obvious bell-cow of the cable bundle, has birthed dramas such as Mad Men and Breaking Bad that helped catalyze the so called “golden age” in cable television from 2007 onwards. This stretch of critical acclaim has scored AMC 207 Emmy nominations along with 33 wins [3], including five of the last six Emmys for Outstanding Drama Series [4].

Key Executives

Joshua Sapan – President and Chief Executive Officer (photos curtesy of AMC Networks [37])

Charles F. Dolan – Executive Chairman

Edward A. Carroll – Chief Operating Officer

Sean S. Sullivan – Executive Vice President and Chief Financial Officer

Programming Reach

Ranking as the 14th most watched network among the coveted 18-49 demo [5], AMC reaches 97 million American households. AMC Networks, however, finds itself in a unfortunate predicament. Other cable entities WE tv, IFC, and Sundance have failed to match the margins AMC has managed. Among the 18-49 demographic, WE tv ranks 39th, IFC stumbles into 58th, and Sundance checks in at a disappointing 88th [6].

Economics

Three year economic landscape since going public [33].

To the blind eye, AMC Networks would seemingly be reveling in their cult-like headlining dramas they’ve found in Madison Avenue and meth making high school chemistry teachers. Since going public on June 21st of 2011 AMC Networks shares are up nearly $29 in price, an increase of almost 82% over three years [7]. Affiliate fees augmented from a 2007 margin of 22 cents per customer per month to 33 cents in 2013 [8]. The recent 3Q report stated a stout 31% increase in net revenue from levels a year ago to $514.2 million [9]. So what’s not to like for AMC Networks? Ad revenues have slipped by 6% in this recent quarter with a 19% drop in audiences [10]. Operating income this quarter was $12 million short of last years. Shares hit a 52-week low on October 13th when prices fell to $52.75. Moreover, AMCX stock has tumbled by approximately 18% in the last year.

Life After Mad and Bad

Dramatic successes that once stoked the AMC flame have begun to fade. Viewers said goodbye to Breaking Bad last fall and will prepare to jettison Mad Men after it’s end next spring. Questions as to how the organization will survive such gigantic losses in programming have dominated industry conversations for some time. One common theme reigns supreme: if AMC plans on continuing on, they need something to replace their prior hits. And fast. The majority of the industry, AMC Networks investors in particular, are wondering if this is possible.

Zombies Devouring American Audiences

Iconic Walking Dead season 1 poster art where protagonist Rick Grimes investigates a desolate Atlanta.

Protagonist Rick Grimes investigates a desolate Atlanta in the iconic season 1 poster. [32]

The most life in AMC Networks ironically resides within the cold clammy hands of the undead. A television adaption of Robert Kirkman’s zombie apocalypse graphic novel “The Walking Dead” has has wowed audiences suspenseful storytelling and heaps of zombie carnage. The Walking Dead premiered on Halloween night in 2010 with 5.35 million viewers, an AMC first [11]. The show has produced end over end increase since. The Walking Dead ended it’s 4th season with an average of 13.3 million viewers [12], a growth margin that prompted AMC to renew the show for a sixth season before the fifth season even aired [13].

A “Walker” enjoying a mid-afternoon snack. [34]

The infectious love for zombies has proved so strong that the first episode of season five shattered television viewing history. An audience of 17.3 million viewers for the season five premiere crowded The Walking Dead as the highest rated show in cable television history [14]. The October 12th premiere, with help from the 7% increase in viewership, managed to out muscle typical ratings power house Sunday Night Football [15]. Playing off of a dedicated following from the graphic novel has allowed the show to become the most popular program among the 18-49 demographic for two consecutive years [16].

Lightning Doesn’t Strike Twice…

All in all, AMC networks has whiffed when it comes to finding their next trademark show. Recently premiering series that AMC networks hoped would share the same prestigious stage as their predecessors have fallen significantly short. Rubicon, a conspiracy thriller set against the New York skyline, proved anything but thrilling for viewers and was cancelled three months after debuting due to subpar ratings [17].

The Walking Dead stifles the average viewership of the other AMC programming. [35]

The Detroit based crime drama Low Winter Sun adapted from a two-part British mini-series of the same name lasted only ten episodes [18]. Even the more constant series such as Hell on Wheels, Halt and Catch Fire, and TURN have underperformed expectations.

there is importantnt text here that you can’t see

…or Does It?

While millions may have mourned the passing of anti-hero Walter White reign on television, they will not have to wait long to satisfy their Breaking Bad junkie addictions. Former show runner Vince Gilligan and AMC have partnered to produce a prequel to the former Emmy winning series [19]. Better Call Saul, airing this upcoming February, will star Bob Odenkirk and be set six years prior to the events of Breaking Bad. AMC has already renewed the spin off for a 13 episode second season despite a delayed production process [20]. AMC also green lit preliminary production on a companion series for current hit The Walking Dead earlier this year [21]. The show will be standalone from the current series, displaying a new set of characters in an entirely different region of the post-apocolyptic zombie world. Both spin offs are obvious attempts by AMC Networks to brandish new programming through past and present successes.

DirecTV and AMC Clash on Contract

AMC Networks warning message to DirecTV viewers about potential stoppages in content.

AMC Networks warning message earlier this month on website to DirecTV viewers about potential stoppages in content. [36]

DirecTV viewers may been in danger of losing AMC Networks‘ programming after this holiday season. AMC Networks went public with a contract dispute with the satellite provider during a November 2 episode of The Walking Dead [22]. They warned viewers that they were at risk of missing future content stating that DirecTV had not “engaged in meaning negotiations”. AMC Networks has gained a reputation of quarreling with service providers by often publicizing carrier contract disputes and using their viewer as meaningful leverage. Disputes have included Verizon FiOS [23], Suddenlink Communications [24], Rogers Communications [25], and AT&T U-Verse [26] over the past two years. The worst of the carrier disputes came when DISH dropped AMC Networks from their service for nearly four months [27]. The conflict, like the others, stemmed from AMC Networks aggressive price evaluation set in an attempt to profit from newfound success in dramatic programming.

International Distribution Taking Center Stage

AMC Networks rolled out programming in various international markets starting in November, an organizational first for a company that once prided itself on broadcasting classic American movies. AMC International started distribution in Europe with broadcasts in Spain on November 5th [28]. Broadcasts of the new international distribution arm furthered in Latin America a week later [29]. The company plans to continue it’s stretch across the globe with further rollouts. These recent investments into foreign markets can be linked to AMC Netoworks‘ $1.04 billion purchase of Liberty Global’s content division Chellomedia last year [30]. The array of TV networks will be distributed across an estimated 138 countries worldwide with access to more than 390 million foreign households.

Source:

[1] AMC Networks Becomes a Public and Separate Company AMC Networks RT: 11/24/14

[2] AMC close to $200 deal for stake in BBC America New York Times RT: 11/24/14

[3] Budget Squeezing, Producer “Bake-Offs” and Post-‘Breaking Bad’ Challenges The Hollywood Reporter RT: 11/24/14

[4] Emmy Nominee/Winner Database Television Academy RT: 11/24/14

[5] ‘The Walking Dead’ Is A Huge Hit. So Why Is AMC’s Stock Trading So Low? Forbes RT: 11/24/14

[6] ‘Dead’ Breathes Life into AMC Networks Adweek RT: 11/24/14

[7] Financials: AMC Networks Inc (AMCX.OQ) Reuters RT: 12/1/14

[8] AMC is Thriving by Breaking the Rules of Legacy TV The Atlantic RT: 11/24/14

[9] AMC Networks tops 3Q net income and revenue expectations Associated Press RT: 11/24/14

[10] Media Companies miss ad dollars after signing streaming deals NYPost RT: 11/24/14

[11] ‘The Walking Dead’ Snags AMC Highest Premiere Ratings of 2010 Time RT: 11/24/14