20th Century Fox (film only)

Posted on March 25, 2015 by Abby Elyssa

by ABBY ELYSSA

[20] 20th Century Fox Logo

HISTORY

Twentieth Century Fox Film Corporation, or 20^th Century Fox, is one of America’s top six film studios and a film distributor overseen by 21^st Century Fox. The corporation was formed in 1935, after the Twentieth Century Pictures and the Fox Film Corporation merger. William Fox, a film distributor, founded the Fox Film Corporation in 1914. When the Great Depression hit, the Fox Film Corporation had trouble financing its high-tech equipment, prompting the merger. Joseph Schenck and Darryl F. Zanuck founded Twentieth Century Pictures in 1933. In 1981, Marvin Davis, who eventually sold it to publisher Rupert Murdoch in 1985, bought the corporation. Murdoch consolidated both his film and television companies into Fox Inc., which was under News Corporation. In 2013, it split into two publishing and television/film companies, News Corporation and 21^st Century Fox respectively. Its two highest grossing films were both of James Cameron’s Avatar (2009) and Titanic (1997) [1].

TOP EXECUTIVES

James N. Gianopulos, [2] Chairman & CEO

Stacey Snider, [3] Co-Chairman

FINANCIALS

In 2014, 20^th Century Fox released 24 films domestically. The films are produced and/or distributed by the following companies: Twentieth Century Fox and Fox2000 (mainstream audiences), Fox Searchlight Pictures (specialized audiences), and Twentieth Century Fox Animation (animated films). Fox International Productions, Inc. co-produces, co-finances and acquires local-language motion pictures for international distribution. This year, the corporation plans to release 26 motion pictures total.

The corporation generates revenue through film distribution for theatrical exhibition in America, Canada and international markets, the distribution of films and other programming in various media formats, the distribution of films and other programming for exhibition on premium pay and subscription video-on-demand (SVOD), and through the distribution of films on free television networks and other broadcast program services.

In 2014, the corporation released approximately 1,249 produced and acquired titles, up from 1,230 the previous year. The Corporation also had 1,004 international releases, up from 934 the previous year. 20^th Century Fox also continued its arrangement to distribute DreamWorks Animation’s new release animated films and other catalog motion pictures and programming. It plans to distribute three DreamWorks films in 2015. Last year, 20^th Century Fox also continued its worldwide home video distribution agreement with Metro-Goldwyn-Mayer (MGM), Lions Gate Films Inc. (Lions Gate) (U.S. only) and Anchor Bay Entertainment, LLC (Anchor Bay) (U.S. and Canada) [4].

IN THEATERS

“Kingsman: The Secret Service”

The action/adventure drama stars Colin Firth, Samuel L. Jackson, Mark Strong, Taron Egerton and Michael Caine. The film was directed by Matthew Vaughn and is based on the comic book “The Secret Service” by Dave Gibbons and Mark Millar. The film follows a spy organization with a new and young recruit and outside technological threats [5].

The film was released on February 13, 2015. Its opening weekend (President’s Day Weekend) grossed $36.2 million and received a #2 rank in 3,204 theaters, averaging 11,300 per theater, 29% its total gross. It grossed $124.7 million domestically and $266.8 overseas ($391.6 worldwide) [6]. The film is especially popular in South Korea, with a record-breaking $40 million at the box office, out-grossing James Bond and Jason Bourne. It’s Korea’s biggest hit since Avatar [7].

“Home”

Home is a 3-D animated comedy, distributed by 20^th Century Fox that stars Jim Parsons, Rihanna, Jennifer Lopez and Steve Martin. The film was directed by Tim Johnson and is based on the children’s book The True Meaning of Smekday by Adam Rex. The film follows a runaway alien who ends up on planet Earth and finds a friend in search of adventure as well [8].

The film was released on March 27, 2015 and grossed $52.1 million its opening weekend. DreamWorks Animation, which produced the film, estimated an opening gross between $30-35 million. The film opened at #1 in 3,708 theaters, averaging $14,053 per theater, 39.8% its total gross [9]. Home also pulled in an international gross of $25.4 million, higher than its projected $24 million. The film’s domestic total is $130.8 million and $112.6 overseas ($243.5 million worldwide) [10].

“The Longest Ride”

The romantic drama based on Nicholas Sparks’ novel of the same name, stars Scott Eastwood, Britt Robertson, Jack Huston and Oona Chaplin. The film was directed by George Tillman, Jr. and follows the lives of two couples from different time periods facing the same relationship troubles [11].

The film was released on April 10, 2015 and grossed $13 million its opening weekend ranking #3. It opened in 3,366 theaters and averaging $3,868 per theater, 86.6% its total gross. Its domestic total is $15 million and $2.8 million overseas ($17.8 million worldwide) [12]. This is a good opening weekend for a Nicholas Sparks’ adaptation. The Longest Ride is above last year’s The Best of Me ($10 million), and is grossing similar figures as The Notebook and Nights in Rodanthe. The film is projected to earn $30 million against a $34 million budget [13].

UPCOMING

Poltergeist (May 22, 2015)

The supernatural thriller is a remake of the 1982 film of the same name and stars Sam Rockwell, Jared Harris and Rosemarie Dewitt. The film was directed by Gil Kenan and follows a suburban family living in a haunted home with their daughter held captive [14].

Spy (June 5, 2015)

The action comedy stars Melissa McCarthy, Jason Stratham, Rose Byrne, Miranda Hart, Bobby Cannavale, Allison Janney and Jude Law. The film was directed by Paul Feig and is about an unlikely CIA analyst who goes on the agency’s most dangerous missions and tries to halt a global disaster [15].

THE FUTURE

On April 11, 2015, 20^th Century Fox passed the $1 billion box office mark. This is the fastest time the company reached this since 2010 after Avatar was released. Kingsman: The Secret Service and Home have been major assets, and are still in 31 and 69 markets respectively [16].

20^th Century Fox is currently teaming up with Hasbro to create a Play-Doh movie, based on the manufacturer’s modeling clay. The corporation is in contact with director Paul Feig (Bridesmaids, Spy) and screenwriter Jason Micallef for the project [17].

The corporation also seeks to expand its international YouTube presence. 20th Century Fox plans to do this through a deal with U.K. based tech group, Rightster [18]. Rightster currently manages the corporation’s branded content in Europe and Latin America. The two-year deal will let Rightster manage 20th Century Fox’s YouTube marketing strategy for 35 of its channels. This will focus on channel management and audience development, with execution of content and influencer-driven viral marketing campaigns [19].

SOURCES

[1] “20th Century Fox Film Corporation: American Motion-Picture Studio.” Britannica. 20 Aug. 2014. Web. 9 Apr. 2014.

[Image, James] Lang, Brent. “Fox’s Jim Gianopulos Leads Studio Through Uncertain Times.” Variety. 19 Aug. 2014. Web. 16 Apr. 2015.

[2] “Management.” 21st Century Fox. Web. 9 Aug. 2014.

[3] “Stacey Snider Joins 20th Century Fox Today As Co-Chairman.” Deadline Hollywood. 3 Nov. 2014. Web. 16 Apr. 2015.

[4] “Annual Reports.” 21st Century Fox. Web. 13 Aug. 2014.

[5] “Kingman: The Secret Service.” IMDb. Web. 15 Apr. 2015.

[6] “Kingsman: The Secret Service.” Box Office Mojo. Web. 13 Apr. 2015.

[7] Cunningham, Todd. “How ‘Kingsman: The Secret Service’ Blew Away Bond, Bourne in South Korea.” The Wrap. 23 Mar. 2015. Web. 14 Apr. 2015.

[8] “Home.” IMDb. Web. 15 Apr. 2015.

[9] “Home.” Box Office Mojo. Web. 15 Apr. 2015.

[10, 13] Subers, Ray. “Weekend Report: ‘Furious 7’ Repeats, Sets Opening Day Record in China.” Box Office Mojo. 12 Apr. 2015. Web. 16 Apr. 2015.

[11] “The Longest Ride.” IMDb. Web. 16 Apr. 2015.

[12] “The Longest Ride.” Box Office Mojo. Web. 16 Apr. 2015.

[14] “Poltergeist.” Movie Insider. Web. 16 Apr. 2015.

[15] “Spy.” IMDb. Web. 16 Apr. 2015.

[16] Busch, Anita. “Fox Hits $1B International Box Office Mark.” Deadline Hollywood. 6 Apr. 2015. Web. 15 Apr. 2015.

[17] Siouty, Michelle. “20th Century Fox and Hasbro in Talks to Create Play-Doh…the Movie.” Movie Pilot. 17 Apr. 2015. Web. 15 Apr. 2015.

[18] Harrington, John. “Rightster Group Deepens Relationship with 20th Century Fox.” Proactive Investors. 17 Apr. 2015. Web. 17 Apr. 2015.

[19] Jarvey, Natalie. “20th Century Fox Pacts With Rightster to Bolster YouTube Presence Abroad.” Hollywood Reporter. 16 Apr. 2015. Web. 17 Apr. 2015.

[20] “20th Century Fox Logo.” Fox Movies. Web. 17 Apr. 2015.

Buena Vista/Disney Pictures

Posted on March 25, 2015 by Jordyn Rosenberg

by JORDYN ROSENBERG

[2] Walt Disney Pictures Logo

HISTORY

The Lion King

From 1988 to present day, Disney Pictures has released some of the most successful films in Hollywood. Disney’s most iconic and memorable titles include, The Lion King, The Little Mermaid, Aladdin and Beauty and The Beast. Disney has pushed the boundaries of the film industry since its beginning with the production of the first full length animation film, Snow White and The Seven Dwarfs, in 1937, as well as the release of their first live action film, Treasure Island, in 1950 [1].

Treasure Island

After the death of Walt Disney in 1966 his brother Roy Disney took the lead. The company only continued to grow when Robert Iger was named chief executive officer in 2005. Currently, Disney owns Walt Disney Animation Studios, Marvel, Touchstone, Disneynature & Lucasfilms. On February 5th 2015, Thomas O. Staggs, [16] Chairman of Walt Disney Parks and Resorts, was named Chief Operating Officer of The Walt Disney Company.

FINANCIALS

In 2015, Buena Vista or Disney Pictures Studios held 10.8% market share and earned a total gross of $319 million. With only three movie releases thus far in 2015, the studio is ranked 4th. [13] The studio is behind 20th Century Fox, Universal, and Warner Bros. The companies rank is anticipated to rise with the rest of their 2015 slate. [3] After a full slate of 13 movies in 2014, the company grossed $1,617.5 billion, held a market share of 15.6% and ranked 2nd behind 20th Century Fox. The Walt Disney Company released its first quarterly report [14] for 2015 on February 3rd. Within the overall company, earnings per share increased 23% to $1.27 billion from $1.03 billion in the 2014 fourth quarter report [15]. Specifically, in studio entertainment, revenues have decreased 2% to 1.9 billion from 1.8 billion in 2014. Lower theatrical distribution numbers were a result of the performance of Big Hero 6 in comparsion to the release of Frozen last year.

KEY EXECUTIVES

[22] Alan Bergman – President, The Walt Disney Studios

Alan Horn - Chairman, Walt Disney Studios

[23] Alan Horn – Chairman, The Walt Disney Studios

[24] Robert Iger – Chairman and Executive Officer, The Walt Disney Company

IN THEATERS

Cinderella

Cinderella

The live-action remake, directed by Kenneth Branagh, of the notorious Disney animation, Cinderella, did well in the box office opening weekend. Opening at number 1, the weekend of March 13th 2015, the movie earned an opening weekend gross of $67,877,361 domestically. Including international gross, the film made over $70 million opening weekend and made their $95 million budget in the second week. In total, Cinderella has made $438,036,467 worldwide [6]. With a large part of the target audience being female children, the cast, including, Lily James and Richard Madden, was fairly unknown [7]. The seven minute Frozen Fever short at the beginning of the film, based of the extremely popular animation Frozen, may have been a drawing factor for audiences. Although the film had one of the biggest debuts of the year, its numbers fell short of what was expected by Disney. The lower figures mean the new film fell behind Disney’s last live-action remake, Maleficent [8].

Monkey Kingdom

Monkey Kingdom

The Disneynature film, set in South Asia, follows the story of a macaque monkey, named Maya. With a new son, Kip, and her longtime home, Castle Rock, being taken over, Maya faces various struggles. Her ultimate goal is to get her home back and establish a good future for her son. The movie is narrated by Tina Fey. The director of the film, Mark Linfield, spent over 2 and a half years filming and following the animals for the movie [9]. The movie was released on April 17th. The opening weekend numbers have yet to be released. . .

SPRING 2015 RELEASES

McFarland, USA

McFarland USA

Released on February 20th, 2015, the sports-drama, McFarland USA, tells the story of a high school cross-country team as they attempt to succeed under the supervision of a new coach, played by Kevin Costner. The director of the film, Niki Caro, expressed that film is especially timely with the current debate over immigration [5]. The movie is set in a highly immigrated area and a majority of the athletes are from migrant families. Opening weekend grossed $11,020,798 and the movie made an overall domestic total of $42,715,645 [4]. The film was not as successful as Disney had hoped, opening at number 4 in theaters and continually falling in rank week to week. .

FUTURE SLATE

Tomorrowland

Tomorrowland

Tomorrowland will be released on May 22nd 2015. The movie was directed by Brad Bird and stars Academy Award winning actor, George Clooney. The cast also includes Britt Robertson, this year’s “Star of Tomorrow” award winner [11] at CinemaCon, and Judy Greer. The films tells the story of a young girl who finds a mysterious and magical pin. Touching the pin reveals a new and better world [10]. Disney is keeping the details of the plot a vaulted secret. Disney’s new sci-fi/fantasy film is inspired by the Disneyland park attraction and Disney World’s Epcot theme park. In a newly released featurette, Disney informs audiences of the tie between the film, Walt Disney and his original team’s vision for the future. The film is inspired by Walt’s vision of what the future would be like, as well as his ideas for the development of society [12]. The nostalgia of the film and reference to Walt Disney, adds Tomorrowland to Disney’s list of inspired remake films, such as last year’s Maleficent and this year’s Cinderella.

FUTURE FOR DISNEY PICTURES

Star Wars: The Force Awakens

On March 12th 2015, The Walt Disney Company held their 2015 annual meeting of shareholders [17]. At the meeting, CEO Robert Iger and Chief Creative Officer, John Lassester [18] announced exciting future projects for Disney. In October of 2012 Walt Disney Studios bought Lucasfilm for $4 billion [19]. At this years annual meeting, Disney acknowledged three new Star Wars projects the studio has been working on. Star Wars: The Force Awakens will premier in theaters on December 18th 2015. The film is the 7th episode of the Star Wars series and is set thirty years after the last Star Wars film, Star Wars: Episode VI – Return of the Jedi, which was released in 1983. The film was directed by J.J. Abrams and stars Mark Hamill, Harrison Ford, & Carrie Fisher. The 2nd official teaser was released in April 16th 2015.

Disney Annual Meeting of Shareholders 2015

At the meeting, Iger announced the production of another Star Wars film, Rogue One. Set to release on December 16th 2016, the film written by George Lucas is a spin-off to the original franchise. Finally, Star Wars: Episode VIII will arrive in theaters on May 26th 2017 [20]. The film will be directed by Rian Johnson and will continue the Star Wars story after episode 7. In addition, Disney Animation has officially announced plan of production for Frozen 2. After the huge success of the original film, it is no surprise that Disney is taking advantage of a sequel [21]. A release date has yet to be set for the film.

SOURCES

[1] Walt Disney Studios History. Walt Disney Studios. Retrieved: April 16th 2015

[2] Walt Disney Studios Logo. Walt Disney Studios. Retrieved: April 16th 2015

[3] Walt Disney Studios Current Slate. Walt Disney Studios. Retrieved April 16th 2015

[4] McFarland USA. Box Office Mojo. Retrieved April 16th 2015

[5] Johnson, Ted (February 21st 2015) What McFarland USA Says About Immigration. Variety. Retrieved April 16th 2015

[6] Cinderella (2015). Box Office Mojo. Retrieved April 16th 2015

[7] Acuna, Kirsten (March 16th 2015) Cinderella Opening Weekend. Business Insider. Retrieved April 16th 2015

[8] Lang, Brent (March 16th 2015) Cinderella Falls Short. Variety. Retrieved: April 16th 2015

[9] Miller, Gregory (April 16th 2015) Monkeys of ‘Monkey Kingdom’ NY Post. Retrieved: April 16th 2015

[10] Breznican, Anthony (January 18th 2015) George Clooney & Tomorrowland. Entertainment Weekly. Retrieved: April 16th 2015

[11] Lang, Brent (March 11th 2015) Britt Robertson Tomorrowland. Variety. Retrieved: April 16th 2015

[12] White, James (April 16th 2015) Tomorrowland Featurette. Empire Online. Retrieved: April 16th 2015

[13] Box Office by Studio: Buena Vista. Box Office Mojo. Retrieved: April 17th 2015

[14] Walt Disney First Quarter 2015. Walt Disney Studios. Retrieved: April 17th 2015.

[15] Walt Disney Fourth Quarter 2014. Walt Disney Studios. Retrieved: April 17th 2015

[16] Thomas Staggs COO. Walt Disney Pictures. Retrieved: April 17th 2015

[17] Disney Annual Shareholders Meeting 2015. Walt Disney Company. Retrieved: April 17th 2015

[18] John Lasseter. Walt Disney Company. Retrieved: April 17th 2015

[19] Krantz, Matt (October 30, 2012). Disney Lucasfilm. USA Today. Retrieved: April 17th 2015

[20] Kludt, Tom (March 12 2015). Star Wars Episode VIII. CNN Money. Retrieved: April 17th 2015

[21] Graser, Mark (March 12 2015). Frozen 2. Variety. Retrieved: April 17th 2015

[22] Alan Bergman. Walt Disney Studios. Retrieved: April 17th 2015

[23] Alan Horn. Walt Disney Studios. Retrieved: April 17th 2015

[24] Robert Iger. Walt Disney Company. Retrieved: April 17th 2015

[25] Lion King Movie Poster. Fan Pop. Retrieved: April 17th 2015

[26] Treasure Island Poster. Wikimedia. Retrieved: April 17th 2015

[27] Alan Bergman Picture. Walt Disney. Retrieved: April 17th 2015

[28] Alan Horn Picture. Walt Disney. Retrieved: April 17th 2015

[29] Robert Iger Picture. Walt Disney. Retrieved: April 17th 2015

[30] Cinderella Poser. Wikia. Retrieved: April 17th 2015

[31] Monkey Kingdom Poster. StitchKingdom. Retrieved: April 17th 2015

[32] McFarland USA Poster. IMP Awards. Retrieved: April 17th 2015

[33] Tomorrowland Poster. WP Images. Retrieved: April 17th 2015

[34] Star Wars: The Force Awakens. IMDB Media. Poster Retrieved: April 17th 2015

[35] Annual Shareholders Meeting Image. Visions Fantastic. Retrieved: April 17th 2015

DreamWorks Studios

Posted on March 25, 2015 by Sophia Hoeke

by SOPHIA HOEKE

DreamWorks Studios is a production company based in Universal City, California, and they are most widely known for producing feature films, however, they also produce television programming, music, and video games. The founders of DreamWorks studios are Jeffery Katzenberg, Steven Spielberg, and David Geffen. They founded the company in 1994 and the current CEO is Stacey Snider. DreamWorks has produced films such as Shrek (2001), American Beauty (1999), Meet the Fockers (2004), A Beautiful Mind (2001), Saving Private Ryan (1998), and Cast Away (2000).

When DreamWorks was founded in 1994, all three male founders, Steven Spielberg, Jeffrey Katzenberg, and David Geffen, were already industry royalty and paired together knowing they were about to create something great. Geffen confidently stated that it was the first time in his career that he actually wanted to work with partners.

Shrek was the first franchise that really turned DreamWorks Studios into the booming company the Katzenberg always wanted, but not in the way he intended. The film incorporated a celebrity cast, a boy-friendly narrative, obnoxious pop-culture references, and more, and eventually lead to the company producing all of the recognizable crazy-funny, talking-animal type films, but this was not the artistic direction in which the founders had wished the company would pursue.

As of Fall 2004, DreamWorks Studios is no longer affiliated with DreamWorks Animation. Dream Works Animation spun off into a publicly traded company that solely produced animated feature films and TV programs. DreamWorks Studios’ founder, Jeffrey Katzenberg, moved with DWA and currently holds their position of CEO.

Here is a video by Ethan Jones of Movie Munchies of the variation of the DreamWorks logo as it progressed and the turned into the DreamWorks Animation logo after the separation in 2004.

In late March, it was announced that Steven Spielberg is signed to direct “Ready Player One”, a screenplay of the original Science Fiction novel written by Ernest Cline, the only catch is, this film is being produced by Warner Bros., not Dreamworks Studios. So the question is why did Spielberg make this temporary move and what effect will it have on Dreamworks?

According to this news clip by Jeff Sneider, a film reporter for The Wrap, Spielberg may be the perfect fit to head this project because he was raised as a gamer and the plot of the movie is based around ‘80’s pop culture. Although Spielberg did not grow up in the ‘80’s, he certainly had a hand in creating the pop culture of the time. So those reason may have to do with Spielberg’s choice to take a leave of absence from his own studio, leaving it temporarily in the hands of Michael Wright and Halle Berry.

Bloomberg Business also fills us in on Spielberg’s collaboration with Walt Disney Co. to produce Roald Dahl’s The BFG. Walden Media is a principle investor in the Vancouver-based production of this film about everyone’s favorite big friendly giant. One of the reasons that Spielberg is helping Disney out with this project is that Disney is currently taking care of all DreamWorks Studios distribution deals, and has lent DreamWorks $156 million with another $90 million coming this September to help with their company debt. Michael Wright, DreamWorks Studios’ CEO says,

“Over the years, we have enjoyed a fruitful collaboration, and we couldn’t be more excited to be working with Disney in this expanded capacity on ‘The BFG,’”

As of last year, Disney had distributed 11 DreamWorks Studios films, and this collaboration will only lead to continuing future endeavors between the two companies.

So with DreamWorks Studios going through these tough times with little to no feature films in production over the past few months and temporarily losing their founder and top director, Steven Spielberg, what have they been doing?

DreamWorks has been very busy negotiating and making plans with The Foundation for Investment in the Riviera Maya to build an amusement park in the popular tourist city of Cancun in Punta Maroma. The new park will be modeled similarly to the other DreamWorks Studios amusement park located just outside of New York. There will be restaurants, commercial spaces, theaters, and aquatic attractions themed around Madagascar, Antz, Shark Tale, Puss in Boots, and of course, Shrek.

This is not the only amusement park endeavor that DreamWorks Studios has been working on recently. In Singapore, DreamWorks is launching it’s first ever suspended roller coasted themed around one of their famous characters, Puss in Boots.

Hollywood Reporter also tells us that there are also plans being made by DreamWorks executives to collaborate with the same trio of Chinese production companies that developed Transformers: Age of Extinction in conjunction with Paramount. Jiaflix, China Movie Channel, and 1905 Pictures are all joining with DreamWorks Studios to put into action their plans for the Need For Speed sequel. Jiaflix president, Marc Ganis, confidently stated,

“We expect this partnership, which brings together a winning brand like Need For Speed with the team that propelled Transformers 4 to unprecedented success, will create one of the next great franchises for movie fans around the world.”

The film does not have a cast, writer, or director yet, but the proposal from these three companies has been made to DreamWorks, and they are eagerly awaiting a response.

Another production deal that is underway but being kept a very big secret is a Netflix original series produced by DreamWorks called Dinotrux. Rotoscopers tells us that this project has been in production for some time now and is set to be released in Summer 2015. Other than the projected release date, and a promotional Facebook page containing only graphic images, no more information has been released.

DreamWorks has been having a seemingly quiet year, however that has not been the case. There have not been many feature films released in the last few months nor have many been put into production, but the efforts of the studio to stay afloat despite their recent downward spiral are prevalent. The company has invested in various projects as stated above and is making sacrifices where necessary. In example, temporarily carrying on without their founder and primary director, Steven Spielberg, while he partners with companies that will help DreamWorks with their debt. All of these smaller projects and partnerships will hopefully help DreamWorks Studios find it’s way back to producing feature films.

MGM Motion Pictures

Image

by MARIA J. NACER

-[1] MGM Logo

Metro-Goldwyn-Mayer Headquarters

MGM Studios Inc.
245 N Beverly Dr.
Beverly Hills, CA 90210
Phone: (310) 449-3000 Website: mgm.com

ABOUT

MGM Motion Pictures is one division of the entertainment company, Metro-Goldwyn-Mayer. The division is mainly focused on the production and global distribution of film content. [2] The company was founded in April of 1924 by Marcus Loew, a film exhibitor and distributor. Loew had bought Metro Pictures Corp. in 1920, and after four years he merged his company with Goldwyn Pictures and Louis B. Mayer Productions.

MGM takes credit in the development, production, and co-production of many great classic films like; The Wizard of Oz, Gone With the Wind, the James Bond and Rocky franchises,The Hobbit, 21 Jump Street, among thousands of other movies.[3]

To learn more about the company and their films click here.

FINANCIALS

MGM generates revenues by exploiting their content through traditional and digital distribution platforms, as well as from licensing content and intellectual property rights. The company’s last financial report available is from 2014. The same reveals that MGM’s total revenue for the year ended December 31, 2014 was $1.44 million, which suggest that their revenues were $82.5 million lower than the $1.53 billion revenue for 2013.[4] However, this was to be expected being that MGM 2013 revenues include the $1.1 billion gross from the worldwide release of Skyfall from the James Bond franchise.[5]

Although the film division of MGM Studios did better on 2013 than in 2014 in terms of revenues, their net income for 2014 was $155.6 million, a $33.4 million higher than their 2013 net income which was $122.1 million. This was mostly due to their worldwide television licensing which increased $97.1 million in revenues from 2013 to 2014 thanks to their success of their televisions series, which include Teen Wolf, Vikings, among others.[4]

Another thing to consider from the film revenue side of MGM is that The Hobbit: The Battle of the Five Armies grossed $955.1 million at the box office and those numbers will be shown in the financial report for 2015 which could possibly mean an increase from 2014 in film revenues and in net income.[6] The same thing can be expected from the 2016 financial reports where the company will include the gross numbers from big revenues movies like Spectre and possibly Creed (Rocky 7).

SPRING 2015 RELEASED

-[7] “Hot Tub Time Machine 2” movie poster.

So far, MGM’s only Spring 2015 released movie was Hot Tub Time Machine 2, which came out in theaters in February 20. The box office results for the comedy sequel were not good, being that they could not breakeven with a total gross of $12.3 million for a production budget of $14 million. [7] This number were quite disappointing considering that the first one grossed $64.5 million worldwide with a production budget of $36 million back in 2010.

UPCOMING

The new comedy Hot Pursuit is just weeks away from coming out in theaters. The movie that is set to come out in theaters in May 8, was co-produced by Metro-Goldwyn-Mayer Pictures and New Line Media, a Warner Bros. subsidiary. [8]

-[10] “Hot Pursuit” movie poster.

The movie features actresses Reese Witherspoon and Sofia Vergara. Witherspoon is a cop given the task to escort a key witness (Vergara) in the trial of a drug lord. The comedy promises to be really good, hopefully resulting in good box office gross for MGM studios. [9]

To watch trailer and learn more about the movie click on Hot Pursuit.

-[11] “Poltergeist” movie poster.

Another soon to be released film by MGM is Poltergeist, the remake of the 1982 classic horror film. The movie is the result of a co-production with 20th Century Fox and the work of filmmaker Sam Raimi with director Gil Kenan. Featuring the story of a family whose new house is haunted by evil forces, the film opens in theaters May 22.[11] Reviewers say that the marketing has done a good job with differentiating the movie from the original film and the predictions suggest that the movie can easily end up with more that $100 million gross.[12]

To watch trailer click here.

MV5BMjA2Nzk0NzIyN15BMl5BanBnXkFtZTgwMjEyNTE5NDE@._V1_SX214_AL_

-[13] “MAX” movie poster.

Coming out in June 26 is Max. An MGM film co-produced with Warner Bros. that tells the story, inspired by true life events, of a dog that helped US Marines in Afghanistan and is adopted by the family of his handler after a traumatic experience in the battle field. [24]

Aside from all of the above, the most important movie for MGM in 2015 will be Spectre, the 24th film of the James Bond franchise. The last James Bond movie produced over $1 billion and the studio is hoping to top this with a production budget higher than Skyfall’s $200 million.[14]

-[18] “Specter” movie poster.

Metro-Goldwyn-Mayer is co-producing this film with Sony, and it appears that they have been having some problems with the budget. Although it had been determined that the production budget would be larger than the one for Skyfall, the movie has gone overbudget using more than $300 million for production.[15] In order to decrease their budget Sony and MGM accepted a deal proposed by Mexico in which Mexican officials gave $20 million in tax incentives in exchange for changes to be made to the scrip that portray a positive image of the country. [16] Fortunately, for both MGM and Sony it is much likely that Spectre’s total gross will be higher than the last movie predictions even say that they will breakeven on the first weekend with a approximate domestic gross of $365 million. [17]

The movie is set to come out in November 2015, if interested in the synopsis click here or watch the trailer below.

-[20] “Creed” movie poster.

The last movie MGM will be releasing in 2015 is Creed a spinoff of the Rocky movies. In the film Rocky Balboa (Sylvester Stallone) becomes the trainer and mentor of Apollo Creed’s grandson, Adonis Johnson (Michael B. Jordan). The movie directed by Ryan Coogler is set to come out November 25 of this year. [19]

FUTURE

There are many thing coming in the future for MGM Motion Pictures. MGM studios bought the rights to Robert C. O’Brien’s children’s book Mrs. Frisby & The Rats of Nimh. With Ice Age 5 writer, Michael Berg, working on the script, the story is currently being developed into a live action/animated hybrid to be shown on the big screen. The release date is yet to be announced since the rights where just bought and the movie is still in the process of development, but sources say that the company has plans to turn the series of books into a franchise. [21]

Another project MGM has taken on is the production of the horror film The Belco Experiment. James Gunn, the director of Guardians of the Galaxy, wrote the script several years ago and made a the deal with the head of MGM Motion Picture, Jonathan Glickman. The movie is set to start production in June in Colombia with Peter Safran as co-producer and Greg McLean as director. [22]

OVERVIEW

Although, MGM Motion Pictures had some ups and downs in the last few years, especially in 2010 when they had to filed for bankruptcy, the company has come a long way and is still standing strong.[23] Their 2015 releases and future projects show great potential for success.

SOURCES

[1]“Leo the Lion (MGM).” Moviepedia. wikia, n.d. Web. April 17, 2015

[2] “Metro-Goldwyn-Mayer, Inc. (MGM): American Movie Company.” Encyclopædia Britanica. Encyclopædia Britannica, Inc., August 29, 2013. Web. April 17, 2015.

[3] “Corporate.” Metro Goldwyn Mayer. MGM, 2015. Web. April 2016.

[4] Metro Goldwyn Mayer. MGM Holdings Inc. Delaware: Metro Goldwyn Mayer, 2014. Print

[5] “Skyfall.” Box Office Mojo. IMDb, April 17, 2015. Web. April 17, 2015.

[6] “The Hobbit: The Battle of the Five Armies.” Box Office Mojo. IMDb, April 17, 2015. Web. April 17, 2015.

[7] “Hot Tub Machine 2.” Box Office Mojo. IMDb, April 17, 2015. Web. April 17, 2015.

[8] “Hot Pursuit: Armed and Sort of Dangerous.” hotpursuitmovie.com. Warner Bros. Ent., 2015. Web. April 16, 2015.

[9] Madden, Sidney. “Reese Witherspoon and Sofia Vergara are a comedy dream team in ‘Hot Pursuit’.” People’s Choice. One Three Digital, February 13, 2015. Web. April 16, 2015.

[10] “Hot Pursuit.” Metro Goldwyn Mayer. MGM, 2015. Web. April 2016.

[11] “Poltergeist.” Metro Goldwyn Mayer. MGM, 2015. Web. April 2016.

[12] “2015 Box Office Predictions.” IMDb. amazon.com, 2014. Web. April 17, 2015.

[13]“Max.” Metro Goldwyn Mayer. MGM, 2015. Web. April 2016.

[14] “Skyfall.” Box Office Mojo. IMDb, April 17, 2015. Web. April 17, 2015.

[15] Agar, Chris. “ ‘Spectre’ Is Over Budget at $300+ Million; Script Leaks.” Screen Rant. Valnet Inc., 2015. Web. April 16, 2015.

[16] “Mexican officials paid Sony and MGM $20million to rewrite new James Bond film ‘Spectre’ to make their country look good.” DailyMail.com. Associated Newspaper Ltd., March 17, 2015. Web. April 17, 2015.

[17] “2015 Box Office Predictions.” IMDb. amazon.com, 2014. Web. April 17, 2015.

[18] “Spectre.” Metro Goldwyn Mayer. MGM, 2015. Web. April 2016.

[19] “Creed.” comingsoon.net., Craveoline Media, LLC., 2015. Web. April 17, 2015.

[20] “Apollo Creed Movie Poster.” DeviantArt. DeviantArt, 2015. Web. April 16, 2015.

[21] Harris, Rob. “MGM To Adapt Classic Children’s Book, Mrs. Frisby & The Rats of Nimh With Ice Age Writer.” MoviePilot. Moviepilot Inc., March 10, 2015. Web. April 16, 2015.

[22] McMilan, Graeme. “James Gunn Unveils Film Project ‘The Belco Experiment’.” The Hollywood Reporter. The Hollywood Reporter, March 31, 2015. Web. April 16, 2015.

[23] “MGM Files for Bankruptcy Protection.” DealBook. The New York Times Company, November 3, 2010. Web. April 16, 2015.

[24] Lafferty, Jennifer. “Military Dog Drama ‘Max’ Comes to Theaters in January.” Stack Gamer. Yardbarker part of FOX Sports Digital, October 27, 2014. Web. April 16, 2015.

[25] “Spectre Official Teaser Trailer #1 (2015) – Daniel Craig Movie HD.” YouTube. YouTube, LLC, March 27, 2015. Web. April 17, 2015.

[26] “MGM 90th Trailer.” YouTube. YouTube, LLC, January 22, 2014. Web. April 17, 2015.

Universal Pictures

Posted on March 25, 2015 by Sarah Grabman

by SARAH GRABMAN

Universal Studios Inc. (Universal Pictures) is a major motion picture studio under NBCUniversal owned by Comcast that produces and distributes films for theatrical release and produces, acquires, and distributes direct-to-home video titles, classic titles, and consumer products.[1]

Universal Pictures has found a lucrative home in the franchise model which has contributed to some of the top grossing films in American history including Jurassic Park, Jaws, The Fast & Furious, and Despicable Me.

Universal Pictures also owns many subsidiaries including Universal Studios Home Entertainment, Focus Features, Working Title Films, Illumination Entertainment, Universal Animation Studios, and is part of a joint venture with United International Pictures.

P R O M I N E N T P E O P L E

Donna Langley

Ronald Meyer Donna Langley

Chairman and COO Chairman

H I S T O R Y

Universal Pictures was founded by the German-born “Father of the Hollywood Star System”, Carl Laemmle, in 1912 as a merger of smaller motion picture companies. [2] Universal Pictures became the model of the vertically integrated studio system in control of the entire filmmaking process from production, distribution, and exhibition. Universal Pictures was the largest studio in Hollywood for approximately a decade after its inception and has remained one of the most influential and prominent film studios in the world.

The Universal City Studios were opened to the public in March 1915, and made the filmmaking process suitable for tourism. They continue to function as active studios and are open for studio tours through the Universal Studios Theme Parks.

F I N A N C I A L S

Universal Pictures Inc. is privately owned company and does not release financial information to the public. However, as part of the “Big Six” film studios, its top competitors include Fox Filmed Entertainment, Paramount Pictures Corporation, and Sony Pictures Entertainment Inc.

2015 has been an incredibly successful year with blockbusters including Fifty Shades of Grey and Furious 7. Universal Pictures International has achieved the $1 billion worldwide box office milestone for the ninth consecutive year in record time.[3]

M O N E Y A N D T R A G E D Y || F U R I O U S 7

Furious 7, directed by James Wan and featuring a superstar cast including Vin Diesel, Paul Walker, and Dwayne “The Rock” Johnson, has made over $810 million in the worldwide box office so far [4]. It is estimated to reach at least $1.2 billion, proving to be one of top-grossing films ever made. It set the opening day record in China making $68.8 million and is the highest grossing film in the franchise.[5]

The emergence of locations with cheaper services and tax incentives are threatening the tradition of exclusive production in soundstages and studios in Hollywood. The majority of Furious 7 was filmed in Atlanta, Georgia and a few scenes were shot in Abu Dhabi and Colorado. The production of Furious 7 created 7,500 jobs and $47 million for the local Georgia state economy, contributing to the flourishing film and television industry. A “pro-business environment with competitive incentives” has made Georgia an attractive location for film production. [6]

Paul Walker, a key player of the Fast & Furious films, unexpectedly died in a car accident over Thanksgiving Break of 2013. Production was put on hold for nine months and eventually was able to resume and be completed through story rewrites, CGI, and his brothers acting as stand-ins. The untimely death of one of most prominent figures of the Fast & Furious franchise ultimately contributed to the widespread success of the film in the box office. Furious 7 became more than a blockbuster new edition of a franchise and added a sentimental and emotional arc that resonated with viewers. This is not to say that Paul Walker’s death was exploited by Universal for monetary gains, but was rather used to pay tribute and respect the work of the entire Fast & Furious franchise. [7]

F I F T Y S H A D E S O F S U C C E S S

Fifty Shades of Grey is an erotic film released on February 15, 2015 adapted from a bestselling novel of the same name by E.L. James. Fifty Shades was produced by Michael De Luca, directed by Sam Taylor-Johnson and starred Dakota Johnson and Jamie Dornan. Universal secured the rights to the bestselling trilogy over Warner Bros, Sony, Paramount, and Mark Wahlberg’s bids. NBCUniversal Chairman and COO, Ron Meyer, visited Newhouse and said that Universal would not have produced the film had it not been based on a bestseller. There was already “a built in audience” for the film and they made it true to the book in hopes that “five women together would see the movie” [8]. The decision to produce and release the film proved to be success. Fifty Shades made $165.9 million in the domestic box office and a solid $402 million in the foreign box office [9].

Producer Michael De Luca left his position as president of production at Sony’s Columbia Pictures to produce for Universal Pictures. He is responsible for producing the final two Fifty Shades movies which could earn him a hefty $20 million for the entire franchise. He has produced past hits including The Social Network, Moneyball, Captain Phillips, and 21 and is a highly beneficial addition to the studio. [10]

P R O J E C T I O N S

Ron Meyer attributed Universal’s diverse array of franchises to necessity. Since Universal does not own typical franchises like DC or Marvel Comics, they needed to find another source of steady income to keep the studio running. A studio’s main goal is to create hits and Universal has found success in the creation of franchises including The Fast & Furious and now the Fifty Shades trilogy [8]. The future of Universal Pictures is bright. Coming off a highly successful year of releases, Universal will continue to use the momentum that accompanies its many franchises.

On the release summer release docket are franchise continuations including Pitch Perfect 2, Jurassic World, Ted 2, and Minions. Universal is also releasing Trainwreck featuring Amy Schumer and Bill Hader and Straight Outta Compton featuring Ice Cube and Dr. Dre this summer. [11]

S O U R C E S

[1] Universal Pictures | NBCUniversal Careers. Retrieved April 16, 2015, from http://www.nbcunicareers.com/our-businesses/universal-pictures

[2] Carl Laemmle. (2015). In Encyclopædia Britannica. Retrieved from http://www.britannica.com/EBchecked/topic/327652/Carl-Laemmle

[3] UPI crosses $1bn in record time. Retrieved April 16, 2015, from http://www.screendaily.com/box-office/upi-crosses-1bn-in-record-time/5086232.article

[4] Furious 7 (2015) – Box Office Mojo. Retrieved April 17, 2015, from http://www.boxofficemojo.com/movies/?id=fast7.htm

[5] Weekend Report: ‘Furious 7’ Repeats, Sets Opening Day Record in China. Retrieved April 16, 2015, from http://www.boxofficemojo.com/news/?id=4055&p=.htm

[6] UNIVERSAL’S “FURIOUS 7” FILMED IN GEORGIA AND MADE A HUGE ECONOMIC IMPACT. Retrieved April 16, 2015, from http://www.mpaa.org/furious7/#.VS_0WBPF-Hs

[7] How Paul Walker’s Death Turned ‘Furious 7’ Into A Blockbuster. Retrieved April 17, 2015, from http://www.forbes.com/sites/scottmendelson/2015/04/09/how-paul-walker-helped-turn-furious-7-into-a-blockbuster/

[8] (2015, March 5). Ron Meyer. Lecture conducted from S. I. Newhouse School of Public Communications.

[9] Fifty Shades of Grey (2015) – Box Office Mojo. Retrieved April 16, 2015, from http://www.boxofficemojo.com/movies/?id=fiftyshadesofgrey.htm

[10 ] Michael De Luca Finalizes First-Look at Universal, Overseeing ‘Fifty Shades’ (2015, April 10). Retrieved April 16, 2015, from http://variety.com/2015/film/news/michael-de-luca-universal-fifty-shades-of-grey-1201470336/

[11] Retrieved April 16, 2015, from http://www.universalpictures.com/

Weinstein Company (film only)

Link

by ADAM WIVIOTT

Hollywood-Executives-Erik-Lomis-The-Weinstein-Company-Hollywood-Magazines-Successful-Hollywood-Producers-Beverly-Hills-Magazine-3

The Weinstein Company Logo [22]

The Weinstein Company was launched by Harvey and Bob Weinstein, the founders of Miramax Films in 1979, in 2005 and encompasses Dimension Films, which was founded by Bob Weinstein in 1993. [1] The Weinstein Company is known for its critically acclaimed and academy award worthy dramas including The Imitation Game, The Artist, The King’s Speech, and Django Unchained. The Weinstein Company is also known for some of its television programs such as Project Runway and all of its subsidiaries. [2]

KEY EXECUTIVES

Harvey Weinstein: Co-Chairman

Bob Weinstein: Co-Chairman

David Glasser: Chief Operating Officer

FINANCE

The Weinstein Company is an independent film company and ranks Number 7 on the Studio Market Share with 5.6%. [3] It has gone up a rank since last year, in which it was Number 8. With the releases of Paddington , Woman in Gold , and Eva this year, The Weinstein Company has grossed around $85 Million , domestically, with Paddington bringing in an estimated $75 Million to date. The Weinstein Company is also experiencing small revenue increases through The Imitation Game and Big Eyes, which are still playing in select theaters across the country. [4]

In Theaters Spring 2015:

PADDINGTON

Paddington is the story of a young Peruvian bear who travels to London in search of a home

The Weinstein Company started the year of strong with the release of Paddington in January. Paddington is the story of a young Peruvian bear who travels to London in search of a home. Finding himself lost and alone at Paddington Station, he meets the kindly Brown family, who offer him a temporary haven. [5] Paddington has grossed around $75 Million domestically and around $182 Million internationally, bringing in a total of $257 Million. [6] The success of Paddington has allowed room for the studio to release some of its more dramatic films that might not bring in as much revenue, but could potentially be considered for awards within the coming year.

EVA

Following the successful release of Paddington is the small foreign film Eva. Eva tells the story of a shy genius who is employed by his former university to design robot software. [7] Eva was released on March 13, and to date has only grossed $16,000 domestically. Being a foreign film, Eva has only shown in 50 theaters domestically, but has much more success internationally, being distributed in France, Russia, Spain, and Turkey and grossing over $2 million dollars. [8] With the minuscule success of Eva, the Weinstein Company is hoping to bring more box office revenue with the upcoming Woman in Gold.

WOMAN IN GOLD

Following the release of Eva is the Woman in Gold, which premiered on April 1st. This drama tells the story of Maria Altmann, Helen Mirren, an octogenarian Jewish refugee, who takes on the Austrian government to recover artwork she believes rightfully belongs to her family. [9] The film also stars big name actor Ryan Reynolds. To date the film has only grossed a mere $10 million domestically and $1 million internationally. However, the Woman in Gold is only in its second week of distribution, showing in 1504 theaters, so hopefully in the next couple weeks we should see a rise in distribution both domestically and internationally. [10] As of now it is only showing in three countries internationally: New Zealand, Turkey, and the United Kingdom.

[21]

Future Releases: Summer 2015

SOUTHPAW

Southpaw tells the story of Billy Hope, a boxer at the height of his game who’s life falls apart after the death of his wife

Coming July, 24, Southpaw tells the story of Billy Hope (Jake Gyllenhaal), a boxer in the height of his fame who’s life fall apart after his wife (Rachel McAdams) is murdered. [11] Directed by Antoine Fuqua (Training Day) and written by Kurt Sutter (one of the creators of Sons of Anarchy) and Richard Wenk (The Equalizer), Southpaw is looking to be one of the next great boxing dramas and could potentially create some Oscar or award worthy buzz. [12] This movie could bring in some good box office revenue for the Weinstein Company this summer.

[20]

UNDERDOGS

Underdogs (aka The Unbeatables), starring Nicholas Hoult and Katie Holmes, [13] tells the story of a young man named Amadeo who sets off on an unexpected adventure with the players of his beloved Foosball game and eventually comes faces to face with his terrible rival Guosso. The film has been circulating the foreign markets since 2013, bringing in around $25 million in box office revenue over the past couple years, and is expected to hit theaters domestically in August of this summer. [14]

Business Ventures

GOLD

"Interstellar" - European Premiere - Red Carpet Arrivals

The Weinstein Company has acquired U.S. rights to Gold, the Stephen Gaghan-directed film starring Matthew McConaughey and Edgar Ramirez. [15] The deal is in the vicinity of a $15 million minimum guarantee and a P&A guarantee north of $20 million to properly market a release on at least 2500 screens . CAA brokered the deal in an auction and Black Bear Picture’s Teddy Schwarzman is backing the film. [16]

HAPPY PEOPLE EAT AND DRINK COFFEE

happy-people-read-and-drink-coffee In addition to this, The Weinstein Company has acquired the film and publishing rights to French Author Agnes Martin Lugand’s debut Novel Happy People Read and Drink Coffee. [17] The film adaptation will be produced by Maeva Gatineau and Sebastien Fechner of Source Films, who brought the material to Weinstein, with Negeen Yazdi and Julie Oh overseeing for TWC. [18] The book centers on Diane, who is still mired in grief after losing her husband and daughter in a car accident the year before, and her cafe is no longer a sanctuary. Searching for a way to remain close to her husband, she takes a trip to a place he always wanted to visit — Ireland. The deal for the project was negotiated by Sarah Sobel, EVP Business & Legal Affairs, for TWC with attorney David Miercourt on behalf of Source.

SHE’S ALL THAT

The Weinstein Company and Miramax films are in talks of remaking the 1999 film She’s All That. The story is about a hot shot high school student (Prinze Jr.) who takes a bet from his jock friends to turn an unpopular, somewhat geeky wallflower (Cook) into prom queen. As of now, Kenny Leon is signed on to direct, which doesn’t inspire much confidence since he directed Lifetime’s 2012 remake of Steel Magnolia. Drawing from Steel magnolia, there is much speculation that this remake of She’s All That will feature a predominantly black cast, which will be a refreshing twist on the iconic romantic comedy genre. [19]

[1] The Weinstein Company, weinsteinco.com/about-us 4/15/15

[2] Weinstein Company Films, boxofficemojo.com 4/15/15

[3] Studio Market Share, boxofficemojo.com/studio/ 4/15/15

[4] Box Office Revenue, deadline.com/weinstein/revenue 4/15/15

[5] Paddington Movie Review, rottentomatoes.com/m/paddington 4/15/15

[6] Paddington Domestic and International Revenue, boxofficemojo.com 4/15/15

[7] Eva, imdb.com 4/15/15

[8] Eva International Box office, hollywoodreporter.com 4/15/15

[9] Woman in Gold, telegraph.co.uk/film/woman-in-gold 4/15/15

[10] Woman in Gold Box Office, boxofficemojo.com 4/15/15

[11] Southpaw, imdb.com 4/15/15

[12] Southpaw Cast and Crew, comingsoon.net/movie/southpaw 4/15/15

[13] Underdogs Actors and Actresses, boxofficemojo.com 4/15/15

[14] International Revenue, boxofficemojo.com 4/15/15

[15] Matthew McConaughey, deadline.com/tag/matthew-mcconaughey 4/16/15

[16] Rights to Gold, deadline.com 4/16/15

[17] Happy People Read and Drink Books, goodreads.com/book/ 4/16/15

[18] Rights to HPRDB, deadline.com/2015/04/happypeoplereadanddrinkcoffee 4/16/15

[19] Remake of She’s All That, firstshowing.net 4/16/15

[20] Southpaw Official Trailer, youtube.com 4/17/15

[21] Woman in Gold Official Trailer, youtube.com 4/17/15

[22] Weinstein Company Logo, images.google.com 4/17/15

NETFLIX

Posted on March 25, 2015 by Bess Howell

by BESS HOWELL

Netflix Logo – Courtesy of pr.netflix.com

Corporate Headquarters [3]

100 Winchester Circle Los Gatos, CA 95032

+1 (408) 540-3700

http://netflix.com/

Leadership [1]

– Reed Hastings: Founder and CEO

David Wells: Chief Financial Officer

Kelly Bennett: Chief Marketing Officer

Jonathan Friedland: Chief Communications Officer

Tawni Cranz: Chief Talent Officer

Ted Sarandos: Chief Content Officer

History [2]

Courtesy of 3dprint.com

In 1997, Reed Hastings and partner Marc Randolph founded Netflix. Initially, the company was founded to offer online movie rentals. Consumers were able to pick from a selection of titles and have them delivered to their homes. Two years later, Netflix became a subscription-based service, providing customers with unlimited movie rentals for a monthly rate. In 2002, Netflix became a publicly traded company on NASDQ. In 2007, Netflix introduced its extremely popular movie and television streaming service. International expansion began in 2012, Netflix becoming available in Latin America and the Caribbean. Netflix introduced original content in 2013, including the award-winning shows “House of Cards” and “Orange is the New Black.” Now with over 60 million global subscribers, Netflix is a notable name and pioneer in the television industry.

Financials [7]

Courtesy of Google Finance

Netflix’s 2015 first quarter earning results were extremely mixed, but in the end left investors happy and the company optimistic about the future [6]. Netflix reached the analyst forecasted revenue of 1.57 billion dollars, but per share earnings dropped to 38 cents. Although Netflix surpassed the previous year’s revenue, EPS dropped over 50 cents from 2014. This can be partially attributed to the Q1 net income, at 23.7 million, which decreased 55.4% from one year ago [9]. This loss is a result of the strong U.S. dollar, which greatly lowered international revenue. Without loses due to the foreign exchange rate, the per-share earnings would have been recorded at 77 cents [8]. Netflix stock increased over 18%, reaching an all time high of $530 dollars. Analysts believe this is due to the massive subscriber growth, which increased by 4.9 million in the first quarter of 2015 for a total of 62.3 million [5], 500,000 more than the company had expected. Stocks may not stay at the high price they reached, as CEO Reed Hastings proposed a stock split in the near future. If the stock split does not happen however, FBR & Co analyst Barton Crockett predicts that Netflix shares could reach $900 within the next year [4]. With a loyal consumer base, growing subscribers, and plans for global expansion, there is not much in the company’s way for it’s numbers to only go up.

Global Expansion

Netflix overseas expansion is the leading driver of subscriber growth. Courtesy of broadbandtrends.com

Global expansion has become a huge part of the Netflix business model. As subscriber growth slows in the United States, the company looks to other markets in order to both raise revenue and increase opportunities [12]. Currently operating in over 50 countries, Netflix announced in January that they planned to launch the service in 200 countries by 2016 [13], with the hopes of going global by 2020 [11]. Although the company currently loses money in it’s international business, they predict it to be profitable by 2017. Despite these loses, Netflix is extremely well received in its abroad markets. It was released in early April that less than a year after being launched in Europe, Netflix buttons are being added to remote controls that will be shipped all over the continent [16]. Already in 2015, Netflix has become available in Cuba [15], Australia, and New Zealand [10], and is set to launch in Japan this coming fall [14]. The company is also looking into the possibility of launching in China. Global expansion means the opportunity of having content viewed over the entire world, which will open Netflix up to many opportunities for both licensing and producing even more material[12].

Netflix Originals and Exclusives

In a consumer survey released yesterday that was conducted by FBR & Co, Netflix users said that they prefer the Internet streaming service to television [22]. Much of this has to do with the original content Netflix has been producing in the last few years. On February 27^th the company released the third season of its award winning original, “House of Cards,” which received global attention. It was released on April 2^nd that the show’s fourth season would air sometime in 2016 [23]. March 6^th marked the premier of “Unbreakable Kimmy Schmidt,” and on March 20^th their new dramatic thriller “Bloodline” was released. On April 10^th Netflix aired Marvel’s “Daredevil,” the first of a five series-deal [18]. The company also released the teaser for the fourth season of “Orange Is The New Black” two days ago [17]. For the rest of 2015, Netflix plans on releasing five more original series [18], as well as five additional original programs geared towards children [26].

At the Sundance Film Festival in January, Netflix made a deal with the notable Duplass brothers [24]. Netflix will finance four films produced by the team, which will go to directly to the service after a short theatrical window. This partnership paid off at SXSW this March when Netflix obtained the exclusive global rights to the film “6 Years,” Which was produced by the Duplass brothers [25] This film was not part of the deal signed in January, and thus was an extra acquisition for the company.

King Penguins, at sunrise on the coast of South Georgia Island. Southern Ocean,

“Our Planet” will be shot in 4K over the course of four years. Courtesy of hollywoodreporter.com

Netflix recently introduced its intentions for multiple new documentary projects. Teaming up with Silverback Films, the company that created “Planet Earth,” Netflix plans to produce an eight-part natural history series entitled “Our Planet.” [20] This four-year project is set to air in 2019. On March 4^th, the company also announced a planned partnership with Leonardo DiCaprio and production company Appian Way to create a series of Netflix exclusive documentary projects [21]. DiCaprio will produce all of the projects, which will concern the environment and conservation.

Promotions

Already in the first quarter of 2015, Netflix has partnered with various tech companies to help promote the brand and increase subscribers. On March 25^th T-Mobile announced that if customers buy a Samsung Galaxy S6 phone, they will get a free one-year subscription to Netflix [27]. The logic behind this partnership is to both drive the sales of S6 phones at T-Mobile, and create more potential long-term subscribers for Netflix. Separate from T-Mobile, Samsung enticed consumers in Australia earlier this month to buy from a series of new 4K smart TVs by offering six free months of Netflix [28]. This partnership came just weeks after the streaming service launched in Australia.

Samsung partners with Netflix – Courtesy of samsungpromotions.com

Netflix also came out with it’s first set of “Netflix Recommended TVs,” part of a program that the company launched in early 2015 to help integrate itself better with smart TVs. The recommendation is meant to promote the TV’s easy Internet access capabilities and help Netflix become more easily accessed through the television rather than the computer. The TVs will come from companies like Sony, LG, TCL, and Insignia, and will include the Netflix logo when in retail [29].

Netflix wants to push more consumers towards viewing their content, making it available through internet capable TVs more accessible. Courtesy of devices.netflix.com/recommendedtv

Overview

Netflix is truly an innovator in the television industry. CEO Reed Hastings said in a recent interview that “Internet TV is going to replace linear TV” within 20 years [30]. At the current rate Netflix is going, that could likely be possible. Netflix has excellent financials, global prospects, a loyal and growing subscriber base, notable content, and forward thinking business strategies. There is no reason why they should not be able to reach their goals in coming years.

Sources

[1] Officers and Directors, Netflix International Relations, Retrieved: April 15, 2015

[2] Company Timeline, Netflix Media Center, Retrieved: April 15, 2015

[3] Netflix Corporate Headquarters, Corporate Offices and Headquarters, Retrieved April 15, 2015

[4] Netflix stocks top $500 for the first time ever. Next stop = $900?, CNN Money, Retrieved April 16, 2015

[5] Netflix shares explode after unexpected subscriber growth, Business Insider, Retrieved April 16, 2017

[6] Netflix adds nearly 5 million subscribers in first quarter, USA Today, Retrieved April 15, 2015

[7] Letter to Shareholders, Netflix International Relations, Retrieved April 16, 2015

[8] Why Investors Are So In Love With Netflix Right Now, Time, Retrieved April 16, 2015

[9] Netflix Shares Soar On Q1 Report Showing Strong Sub Growth And Stock Split Plans, Deadline, Retrieved April 16, 2015

[10] Netflix Goes Live In Australia And New Zealand, Its First Launches In Asia Pacific, Tech Crunch, Retrieved April 16, 2015

[11] Analysts giddy at Netflix plans for international expansion, Market Watch, Retrieved April 16, 2015