Zynga

Posted on April 25, 2016 by Rebecca Duke

by REBECCA DUKE

[1] Zynga logo

OVERVIEW

In 2007, Mark Pincus founded Zynga, the first social gaming company. Named after his dog Zinga, the company was created in order to make gaming more accessible and turn it into a more interactive, friendly experience [2]. Zynga has created some of the most successful social games to date, including Words with Friends, FarmVille, and Zynga Poker. Over one billion users have played Zynga games and connected via the company’s franchises.

[3] A sampling of Zynga games

Additionally, in 2009, Pincus formed Zynga.org, a 501(c)(3) non-profit organization that allows the success of social gaming to give back to those in need by connecting revenues from gamers to other non-profits around the world. One of Zynga.org’s biggest projects was the creation of co.lab, a gaming development technology program that gives underprivileged San Francisco kids the opportunity to learn about game design hands-on.

INDUSTRY

The creation of Zynga spawned the entire social gaming industry, an industry of which Zynga continues to be a leader. According to IBISWorld, the industry has grown rapidly ever since its conception in 2007 [4]. Growth peaked during the 2008 recession, when many companies were downsizing and left unemployed Americans with more leisure time. In recovery from the recession, customers are slowly investing more and more in social games in order to unlock achievements and progress more quickly in the game (for example, while playing FarmVille, a user could pay a few dollars to expedite the growth of their crops and thus move on to bigger and better tasks).

[5] FarmVille 2: Country Escape

Before social gaming, those interested in playing interactive games were required to own some form of external console, such as an Xbox or PlayStation. With Zynga, users can play games and connect with other gamers all across the globe as long as they have an internet connection and an account on a social networking site. The number of broadband connections in households has grown steadily each year, widening the potential market of social gamers. The social network aspect of gaming has introduced new customers that were not previously active gamers, namely females over 40.

KEY EXECUTIVES

[6] Mark Pincus – Founder and Executive Chairman of the Board

[7] Frank Gibeau – Chief Executive Officer and Board of Directors Member

Earlier in March, Mark Pincus stepped down as CEO of Zynga and was replaced by Frank Gibeau [8]. Pincus still sits as the Executive Chairman of the Board and oversees the company. Frank Gibeau is a 20-year veteran of Electronic Arts, one of Zynga’s leading competitors, so he is expected to bring positive change and expertise to the company and allow it to progress financially.

FINANCIALS

Zynga is a publicly traded company, listed on the NASDAQ under the ticker ZNGA. The stock price currently sits at 2.48, a relatively high number since averaging 2.15 over the past three months [9]. Zynga stock took a tumble in early and mid-February after the publication of a disappointing fourth quarter and annual report. After bringing in $185 million in revenue, the company’s operating income and net income amounted to losses of $55 million and $51 million, respectively. These numbers were a stark contrast to the third quarter, when Zynga brought in $10 million more in revenue and net income was $3 million. Zynga has two main revenue streams: advertising, namely video and banner ads, and the sale of “virtual goods” from in-game purchases [10].

[11] NASDAQ – ZNGA

One big change for Zynga that will bring in more cash flow is its future sale of real estate. Currently, Zynga operates out of a 670,000 square-foot office in Silicon Valley, a space that is now too large for its 2,300 employees [12]. Downsizing and liquidating their current office space could lead to a $300 million profit, given the astronomical increase in San Francisco properties since 2012.

[13] Zynga Headquarters

CURRENT PROJECTS

In January, Zynga announced a partnership with The Rubicon Project in developing SponsoredPLAY, a new form of native advertising that allows political candidates to take advantage of what mobile ads have to offer [14]. SponsoredPLAY beta ads have seen six times the engagement rate of normal mobile advertisements, a metric that is incredibly important in today’s age of distracted consumers. With these ads, players connect with brands through mini games that incorporate a piece of the brand’s image. Specifically, The Rubicon Project introduces political candidates as the brands, and encourages the candidates to use the technology to engage voters in a fun and educational way. The SponsoredPLAY ads are also linked to Twitter to create a social buzz around the political issues that the user finds compelling. Ads are expected to be finalized and placed in the games later this year, just in time for the presidential election.

[15] SponsoredPLAY Mockup

One of the two new Zynga games that launched on March 31, 2016 was Willy Wonka & the Chocolate Factory Slots. This was the first game of many to be licensed from Warner Bros. Interactive Entertainment, thanks to a multi-year agreement signed in mid-2015 [16]. The partnership allows for a realistic representation of the characters, sounds, and visuals from the original film. Willy Wonka Slots provides the player with nine different slot machines to begin, in addition to a special “High Roller World” with more levels that unlock after the player has earned over 24 million credits. The basic format of the game is similar to other Zynga games, where the user can play completely for free but has many opportunities to progress further with small increments of in-app credit purchases. The game can be downloaded for free on iTunes, Google Play, and Amazon or played on Facebook.

[17] Willy Wonka & the Chocolate Factory Slots

The second game that debuted at the end of March is Crazy Cake Swap, a variation on the wildly popular Match-3 genre [18]. Crazy Cake Swap is a mix of Candy Crush and Diner Dash, taking place in a bakery and offering different sets of goals for each level. The essentials are similar to other Match-3 games; of course, there’s the concept of matching three or more identical cakes to gain points. A player also only gets five lives and must wait or pay for more when they run out, and a similar wait-or-play model when the end of each “world” is reached. However, it provides a fun element of personalization by allowing users to upload their own photos or avatars, and has more of a storyline than other similar games. Crazy Cake Swap is distributed through the same outlets as Willy Wonka Slots and is free to play with the exception of optional in-app purchases.

[19] Crazy Cake Swap

FUTURE PROJECTS

Zynga has been promising investors two high-development games for awhile, CSR2 and Dawn of Titans, that are finally set to debut later in 2016 [20]. These games could bring in major revenue for Zynga if they become anywhere near as popular as Words with Friends or FarmVille. A recent trend with Zynga has been the overall decline in players, but huge increase in bookings for some of their popular games [21]. Essentially, this means that while there are fewer players, these players are spending a lot of time gaming. If Zynga can successfully recruit more of these avid gamers and grow their user base back up, they will continue to be a force to be reckoned with in the social gaming world.

[22] Dawn of Titans

SOURCES

[1] “Zynga Logo.” Pop Culture Blog. Dallas Morning News, 3 June 2013. Web. 25 Apr. 2016.

[2] “Zynga Leadership.” Zynga. Zynga, n.d. Web. 22 Apr. 2016.

[3] “About Game Cards.” Zynga. Zynga, n.d. Web. 25 Apr. 2016.

[4] “Social Network Game Development.” IBISWorld. IBISWorld, n.d. Web. 22 Apr. 2016.

[5] “Farmville 2: Country Escape.” Google Play. Google, n.d. Web. 25 Apr. 2016.

[6] “Mark Pincus.” Catchafire. Catchafire, 25 Sept. 2013. Web. 25 Apr. 2016.

[7] “Frank Gibeau.” Live Geek or Die. Disqus, 29 Mar. 2013. Web. 25 Apr. 2016.

[8] Takahashi, Dean. “Mark Pincus and Frank Gibeau Talk about the Future of Zynga and Social Mobile Gaming.” Venture Beat. VentureBeat, 2 Mar. 2016. Web. 20 Mar. 2016.

[9] “Zynga, Inc. (ZNGA).” Yahoo Finance. Yahoo!, n.d. Web. 24 Apr. 2016.

[10] Gobry, Pascual-Emmanuel. “How Zynga Makes Money.” Business Insider. Business Insider, 28 Sept. 2011. Web. 24 Apr. 2016.

[11] “Zynga’s Opening Day.” Gigaom. Knowingly, 16 Dec. 2011. Web. 25 Apr. 2016.

[12] Bruno, Alessandro. “ZNGA Stock: This Is Why the Bears Are Wrong on Zynga Inc.” Profit Confidential. Lombardi Publishing, 26 Feb. 2016. Web. 20 Mar. 2016.

[13] “Zynga Headquarters.” Games.com. AOL, 12 Nov. 2012. Web. 25 Apr. 2016.

[14] Pakula, Kelly. “Zynga & Rubicon Project Announce New SponsoredPLAY Custom Mobile Advertising Product for Political Campaign Advertisers.” Global Newswire. Nasdaq, 7 Jan. 2016. Web. 24 Apr. 2016.

[15] “Zynga Mockup.” Adweek. Adweek, 7 Jan. 2016. Web. 25 Apr. 2016.

[16] Shaul, Brandy. “Zynga Launches Willy Wonka & the Chocolate Factory Slots on Facebook, Mobile.” Social Times. Adweek, 31 Mar. 2016. Web. 24 Apr. 2016.

[17] “Willy Wonka Slots.” Zynga Blog. Zynga, 31 Mar. 2016. Web. 25 Apr. 2016.

[18] Allen, Jennifer. “Crazy Cake Swap Review: Sweet, Familiar, and ‘Friendly’.” Gamezebo. Gamezebo, 5 Apr. 2016. Web. 25 Apr. 2016

[19] “Crazy Cake Swap.” Google Play. Google, n.d. Web. 25 Apr. 2016.

[20] Morris, Chris. “What Will It Take To Turn Zynga Around?” Fortune. Fortune, 11 Feb. 2016. Web. 25 Apr. 2016.

[21] Nusca, Andrew. Here’s Why Changing CEOs Won’t Fix Zynga. Fortune. Fortune, 2 Mar. 2016. Web. 20 Mar. 2016.

[22] “Dawn of Titans.” NaturalMotion. NaturalMotion, 5 Mar. 2015. Web. 25 Apr. 2016.

Time Warner Cable

Posted on February 18, 2016 by smwarren

BY RICARDO SMITH

Time Warner Cable Logo [1].

Company Overview

Time Warner Cable is an American cable telecommunications company. It is the second largest cable provider in terms of revenue only behind Comcast [2]. Time Warner Cable serves over 16 million customers in 29 different states [1]. The company was formed in 1992 through the merger of Time Inc. and Warner Communications’ respective cable businesses, following the merger of the two companies in 1989 [1]. Time Warner Cable was spun off as an independent operation in March 2009 [1]. Since its inception, Time Warner Cable has been a trailblazer in the cable industry. They have lead the way in technical innovation through the use of fiber optics to enhance the customer experience. Time Warner Cable provides cutting edge technology, a diverse selection of entertainment content, and superior service to homes across the United States [1]. On April 25^th, 2016, a deal was approved by the U.S Department of Justice for the purchase of Time Warner Cable by Charter Communications [3].

A screenshot from a Time Warner Cable commercial advertising one-hour windows [11]

A screenshot from a Time Warner Cable commercial advertising one-hour windows [6].

Customer Service

Time Warner Cable has a reputation for poor customer service. According to the American Costumer Satisfaction Index, Time Warner Cable was the most unpopular company in America in 2014 with a score of 54 out of a possible 100 [4]. Their television service was the second worst ranked brand on the list, followed by Comcast’s Internet Service Provider [4]. Cable companies have recently come under scrutiny for their increasing subscription fees and lack of choice in the market [5]. Cable prices have more than doubled in the past ten years [5]. The rise of over the top subscription video on demand has caused a decline in cable subscriptions [5]. A leading industry analyst estimated that the top 8 cable companies lost 463,000 subscribers in the second quarter of 2015 compared to 141,000 in the second quarter of 2014 [5]. The decline has caused companies to raise their prices [5]. In response to their poor customer service ratings, Time Warner has taken a number of steps. The company launched an ad campaign acknowledging it’s poor customer service and promising to improve it [6]. The main focus of this initiative is a one-hour window for all customer appointments. In 2015, the company reported a 13% decrease in care calls per customer relationship, 98% on-time percentage for customer appointments, and 15% improvement in first-visit resolution [7].

Time Warner Cable’s 2015 earnings report [7].

2015 Performance

In the fourth quarter of 2015, Time Warner Cable’s revenue grew by 4.9% [7]. The company earned $6.07 billion in 2015 [7]. This represents a 3.9% increase in yearly revenue, Time Warner’s highest in five years [7]. The company attributes the increase to accelerated growth in residential and business services [7]. The company’s operating income before depreciation and amortization (OIBDA) increased slightly for the fourth quarter and the whole year [7]. In their best year of residential subscriber performance ever, Time Warner added 618,000 new customer relationships, 1,000,000 high-speed data upgrades, and 1,036,000 voice subscribers in 2015 [7]. Time Warner made significant investments in 2015 to improve the customer experience and expand their network [7]. As a part of this effort, the company introduced an initiative to convert their infrastructure to an all digital system called TWC Maxx [7]. The new system results in increased Internet speeds, state-of-the-art television services, and improved overall reliability [7]. In 2015, TWC Maxx was fully implemented in six major cities and begun in 4 others [7]. The company has continued expanding the program in 2016 [8].

Comcast logo [11].

Proposed Comcast Merger

In November 2013, it was reported that Charter Communications was to put in an offer to purchase Time Warner Cable for around $135 per share [9]. As a result, Time Warner Cable stock rose by 10% [9]. Charter and Comcast stock also rose based on the rumor [9]. The offer was eventually rejected [10]. On February 13^th, 2014 Comcast announced that it intended to acquire Time Warner Cable through a stock swap [11]. The announcement was met with great opposition from government officials, industry executives, and consumer advocacy groups alike [12]. People were largely opposed to the merger based on Comcast’s behavior in past deals [13]. Following its acquisition of NBCUniversal, Comcast became a partial owner of Hulu [13]. As a part of the deal, Comcast was supposed to remain a silent partner and not influence or interfere with the operation of the company [13]. As of July 2013, Hulu was for sale [13]. In that same month, a meeting to decide the company’s fate took place between the operating partners; Walt Disney, 21^st Century Fox, and Comcast [13]. According to anonymous sources with knowledge of the conversation, Comcast told the other partners that it could enhance Hulu’s value, which caused them to decide not to sell the company [13]. This action directly violated the terms of Comcast’s NBCUniversal deal [13]. Other grievances included programmers experiencing continued difficulty in making their content available for streaming in Comcast markets and Comcast’s lack of promotion for a stand-alone broadband service that isn’t connected to a television package [13]. The proposed deal would have given Comcast a 57% market share of broadband services [13]. In April 2015, FCC Chairman Tom Wheeler came out in direct opposition of the merger [14]. In light of the strong public reaction, Comcast terminated the merger ahead of the official FCC decision later that month [14].

Charter Communications logo [15].

Charter Merger

Following the failure of the Comcast merger, Charter Communications announced that it would be merging with Time Warner Cable on May 26^th, 2015 in a $56.7 billion deal that combined cash and stock options [15]. Charter also announced that they would be purchasing Bright House Networks, previously controlled by Time Warner, in a separate deal for $10.1 billion [15]. This deal was met with far less opposition based on the lower combined market share in broadband service and Charter’s lack of recent negative PR [16]. In order to smooth the approval process, Charter promised not to impose data caps and not charge online content providers for direct connections to its network [16]. On April 25^th, 2016, the U.S Department of Justice approved the sale with conditions [17]. On the same day, FCC chairman Tom Wheeler circulated his approval to other FCC commissioners [17]. The order is expected to get enough votes for approval [17]. In their official statement, the Department of Justice said they worked closely with the FCC to coordinate their reviews of the deal and devise comprehensive remedies for the issues that it presents [18]. As part of the approval, Charter is forbidden from including clauses in their Pay-TV contracts that bar content creators from exploiting their programming through online video on demand [3]. This condition was included largely because Time Warner is notorious for being the most aggressive provider with these clauses [17]. The conditions also forbid Charter from retaliating against programmers for licensing to online video on demand [3]. These conditions will last for seven years [3]. The sale will not become official until California public utility regulators submit their approval [17]. They are scheduled to vote in the summer of 2016 [17].

Overview

Time Warner Cable’s recent acquisition by Charter Communications will begin a new chapter in the company’s history, as well as the state of cable television altogether. Charter is expected to retire the Time Warner Cable brand [18]. Combining their resources will allow the two companies to cut costs and hopefully provide better prices for their customers. The new Charter’s future success will rely heavily on their public perception in the aftermath of this merger.

Sources

[1] Time Warner Cable. Company Overview for Time Warner Cable. Time Warner Cable. Retrieved April 25 2016.

[2] National Cable and Telecommunications Association. Industry Data. National Cable and Telecommunications Association. Retrieved April 25 2016.

[3] The United States Department of Justice (April 25 2016). Justice Department Allows Charter’s Acquisition of Time Warner Cable and Bright House Networks to Proceed with Conditions. The United States Department of Justice. Retrieved April 27 2016.

[4] American Customer Satisfaction Index. American Customer Satisfaction Index. American Customer Satisfaction Index. Retrieved April 25 2016.

[5] Darrow, Barb and Jones, Stacy (August 18 2015). Cable consumers keep cutting the cord. Can anyone blame them?. Fortune. Retrieved April 25 2016.

[6] Morran, Chris (October 5 2015). Time Warner Cable Admits Its Customer Service Stinks. Pinky Swears To Do Better. Consumerist. Retrieved April 25 2016.

[7] Time Warner Cable Inc. (January 28 2016). Fourth-Quarter and Full-Year 2015 Earnings Summary. Time Warner Cable. Retrieved April 25 2016.

[8] Time Warner Cable Inc. (February 8 2016). Time Warner Cable Takes Next Step to Transform TV and Internet Experience in Central and Northern New York. Time Warner Cable. Retrieved April 25 2016.

[9] Yousuf, Hibah (November 22 2013). Cable stocks surge on takeover chatter. CNN Money. Retrieved April 25 2016.

[10] CNBC (January 13 2014). Time Warner Cable rejects Charter’s $61B bid as inadequate. CNBC. Retrieved April 25 2016.

[11] Comcast (February 13 2014). Time Warner Cable To Merge With Comcast Corporation To Create A World-Class Technology and Media Company. Comcast. Retrieved April 25 2016.

[12] Steel, Emily (April 22 2015). Comcast Critics Cast Doubt on Its Intentions. The New York Times. Retrieved April 25 2016.

[13] Steel, Emily (April 21 2015). Comcast’s Track Record in Past Deals May Be Hitch for Merger With Time Warner Cable. The New York Times. Retrieved April 25 2016.

[14] Trefis Team (April 28 2015). Comcast-TWC Merger Called Off; Where Do These Companies Stand Now. Forbes. Retrieved April 26 2016.

[15] Charter Communications Inc. (May 26 2015). Charter Communications to Merge with Time Warner Cable and Acquire Bright House Networks. Charter Communications Inc. Retrieved April 25 2016.

[16] Economides, Nicholas (March 22 2016). Why a Charter-Time Warner Cable Merger Won’t Actually Kill Cable Companies. Fortune. Retrieved April 25 2016.

[17] King, Hope and Stetler, Brian (April 25 2016). Giant cable merger cleared by regulators. CNN Money. Retrieved April 25 2016.

[18] Morran, Chris (April 25 2016). 5 Things You Should Know About the Approved Merger of Time Warner Cable and Charter. Consumerist. Retrieved April 27 2016.

iHeartMedia

Posted on February 18, 2016 by Clelia Ryan

iHeartMedia Logo -Source iheartmedia.com

Headquarters

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

Corporate Structure

Bob Pitman: Chairman and CEO [3]

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

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

John Sykes: President of Entertainment Enterprises [3]

About

[source – Electro Area Youtube Channel]

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

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

Radio

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

Ryan Seacrest [16]

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

Right Here, Right Now: Financial Woes

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

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

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

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

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

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

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

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

Click for updating stock prices [19]

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

iHeartMedia’s Place in Political Advertising

Brendon DelToro [22]

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

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

Continuing Their Place in the Entertainment Industry

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

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

iHeartRadio Music Awards Promotional Ad [13]

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

Photo from the 2015 iHeartRadio Pool Party [15]

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

Summary

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

Works Cited

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Scripps Networks Interactive

Posted on October 22, 2014 by jlmccu01

by Julie McCullough

9721 Sherrill Blvd, Knoxville, TN 37932

(865) 694-2700

courtesy of dish.com

Scripps Networks Interactive started in 1875 when E.W. Scripps founded The Penny Press and soon became one of the most successful newspaper publishing companies. The E.W. Scripps Company later evolved, acquiring local television stations. It was not until the company bought HGTV and the Food Network that it became Scripps Networks Interactive, the leading developer in lifestyle media. [1]

Today, Scripps Networks Interactive develops lifestyle media across the platforms of cable television, digital, mobile, and publishing. Home of HGTV, Food Network, The Cooking Channel, Travel Channel, DIY Network, and Great American Country, SNI reaches viewers all over the world with the goal of changing and improving everyday lifestyles.

Key Executives [2]

Kenneth W. Lowe – President and Chief Executive Officer

Henry Ahn- Executive Vice President, Content Distribution and Marketing

Joseph G. Necastro- Chief Financial and Administrative Officer

Jim Samples- President, International

Lori A. Hickok- Executive Vice President, Finance

Burton Jablin- President

Tamara Franklin- Executive Vice President, Digital

Right Here, Right Now

Cable

SNI’s 2014 Upfront event in NYC revealed 35 new primetime and daytime series for the fall seasons of Food Network and Cooking Channel [3]. Among the new shows were Food Network’s Bobby Flay Fit, The Big Tip, and Chopped Teens Tournament and Cooking Channel’s Proper Pub Food and Compete to Eat. The channels are showing trends of gravitating toward competition and travel shows that take the audience out of the traditional home/kitchen. DIY Network and HGTV also premiered many new series and specials this fall. Among the lineup for DIY were The William Shatner Project, documenting renovations to the famous Star Trek actor’s house, The Property Brothers at Home, and Amish RENOgades, featuring Amish craftsmen as they travel outside of their community and learn to navigate the modern world and work on home improvement projects.
HGTV series this fall included Lakefront Bargain Hunt, A Hero’s welcome, White House Christmas, and Half-Price Paradise. [4]

courtesy of scrippsnetworksinteractive.com

In September 2014, Dish Network obtained the rights to deliver live and on-demand content from all six of SNI’s cable networks on their over-the-top internet service, “Dish Anywhere”. The pact allows dish subs to access authenticated Scripps Networks programming over any Internet connection, on devices including connected TVs, PCs, smartphones, tablets and video game consoles.[5] At the 2014 Bank of America Merrill Lynch Media, Communications and Entertainment Conference in September, President Burton Jablin and Chief Financial and Administrative Officer Joseph NeCastro stressed the OTT deal as a way to increase distribution for their up-and-coming networks, Cooking Channel and DIY Network, while giving their live viewers (which make up about 90% of total viewership) more opportunities to view their high-quality content, and appealing to a wider audience of millennials and cord-nevers. [6]

Also in September, Scripps announced the expansion of HGTV into Singapore. The global expansion of SNI’s content signifies the universality of the network’s themes. The expansion to Singapore will include localized original short-form content exclusively for the launch of HGTV in Asia based on the popular series Extreme Homes. Jim Samples, president of Scripps Networks International, commented, “The launch of HGTV across Asia-Pacific signifies the first time HGTV has launched as a premiere 24/7 channel destination focused on home and lifestyle programming outside North America, including the Caribbean. This is a testament to how successful Scripps Networks’ high quality lifestyle content has performed around the world, and we see great potential for this channel offering to drive value for audiences, affiliate and advertising partners alike.” [7]

Publishing/ Digital

At its first ever Newfront presentation in April 2014, Scripps showcased an array of web series produced for its lifestyle video platform ulive, as well as websites for SNI television channels like HGTV, DIY Network, Food Network, Cooking Channel, and Travel Channel. Many web series are designed as companions of SNI’s cable series. For example, “Star Salvation” runs on FoodNetwork.com parallel to season 10 of the TV series Food Network Star, giving eliminated finalists the opportunity to get back on the TV show. SNI’s strong focus on online content, as well as its presence at the 2014 Newfront presentations, signifies the company’s strong adaptability in today’s digital age. [8]

Vanilla Ice and Rev Run at 2014 Newfront (courtesy of adweek.com)

On Nov 17, 2014, SNI announced a cross-platform content partnership with Hearst Magazines to support the launch of the Citi Double Cash Card. Food Network and HGTV released seasonal holiday content in late November that connect across the holiday issues of Food Network Magazine, HGTV Magazine, food network.com, and HGTV.com. These holiday-inspired recipes, entertaining ideas, and DIY (do-it-yourself) projects were made to show consumers the two ways to earn cash back with the Citi Double Cash Card. [9]

Financials

SNI’s 2014 Upfront concluded selling just under 50% of inventory, hitting $1 billion in sales. There have been recent shifts toward scatter advertising. Scripps networks are very attractive to advertisers, as they have non-violent, popular, family-friendly content targeted to an upscale audience. There is also a higher demand for convergent buys, in which SNI packages TV ad space with corresponding digital content to appeal to a wider and more diverse audience. [6]

In October 2014, Scripps began offering its employees voluntary buyouts as a way to cut costs. “Each department will address its specific budget targets as they see fit. However, it is likely that this effort to bring costs in line with revenue will include the elimination of activities, projects and positions. We plan to announce any project and/or job eliminations resulting from this budget process by the end of the year,” said CEO Kenneth Lowe [10].

In better news, Scripps Network Interactive’s new cable and digital programming received very positive feedback from advertisers. The 2014 third-quarter earnings results shows that sales increased 4.5% to reach $644 million. “These solid third-quarter operating results demonstrate our unique competitive advantage, and our ability to create long-term value for shareholders in a changing marketplace,” Kenneth Lowe said in a press release accompanying the results [11]. TV station revenue has grown 22% since the third quarter of 2013, up $21.8 million for a total of $121 million. The company as a whole reported consolidated revenue of $208 million, an increase of 9.5%, or $18.1 million, from the year-earlier quarter. [12]

Looking forward, SNI has a promising financial future from ad revenues from both cable and digital. Bucking the trend of television in general, Food Network has lowered its median age in the last two years, due to much stronger growth in the 18-49 demo. At the Bank of America Merrill Lynch Conference, Burton Jablin and Joseph NeCastro outlined SNI’s plan of increasing viewership by expanding the Travel Channel, expanding their international brand, keeping Food Network and HGTV a healthy priority, and increasing distribution for Cooking Channel and DIY Network. [6]

courtesy of unpluggedtv.com

References:

[1] Scripps Networks Interactive- History (accessed October 24, 2014)

[2] Scripps Networks Interactive- Leaders (accessed October 24, 2014)

[3] Eater- Food Network and Cooking Channel Announce 35 New Shows for 2014 (accessed November 27, 2014)

[4]- Scripps Network Interactive- HGTV and DIY Network to Premiere 8 New Shows This Fall (accessed November 30, 2014)

[5] Variety- Dish Adds Food Network, HGTV and Other Scripps Cable Nets to Internet TV Lineup (accessed November 28, 2014)

[6]- Scripps Networks Interactive, Inc. at Bank of America Merrill Lynch Media, Communications and Entertainment Conference (accessed November 28, 2014)

[7]- Scripps Networks Interactive- SNI To Launch HGTV In Singapore on Starhub (accessed November 30, 2014)

[8] VideoInk- Scripps Networks Spotlights Programming for ulive and TV Network Sites (accessed November 28, 2014)

[9] MarketWatch- Scripps Networks Interactive and Hearst Magazines Create Original Cross-Platform Content Partnership to Support the Launch of the Citi® Double Cash Card (accessed November 28, 2014)

[10] BroadcastingCable.com- Scripps Networks Offering Buyouts to Cut Costs (accessed November 30, 2014)

[11] BroadcastingCable.com- Scripps Networks Net Up 2% in Third Quarter (accessed November 25, 2014)

[12]- TvNewsCheck.com- Scripps 3Q TV Station Revenue Grows 22% (accessed November 28, 2014)

Spotify

Posted on October 14, 2014 by hlu04

by Helen Lu

[1] Spotify’s Logo

KEY EXECUTIVES

[2] Spotify Founders- Martin Lorentzon & Daniel Ek

[3] Jeff Levick- Chief Business Officer

[4] Steve Savoca- Head of Content

[5] Ken Parks- Chief Content Officer & Managing Director USA

SPOTIFY OVERVIEW

[6] Spotify’s sleek interface layout for their multi-platform service.

Spotify is a privately-owned, digital music streaming service that provides on-demand access to tracks. It is available on multiple platforms, including computers, mobile, tablets, and home entertainment systems. Originally founded in Sweden in 2006, Spotify launched in the United States in 2011; it is now available in 58 markets. [7]

Spotify offers listeners the free model, “made possible by ads,” and the premium model for $9.99 monthly, which is ad-free, high-quality, and available offline. [8] With over 20 million songs, over 20,000 tracks added daily, and over 1.5 billion playlists, Spotify has accumulated 10 million active users and a total of 40 million active users. [9]

COMPETITORS

Rdio, Pandora, Rhapsody, Google Play Music, Beats, iTunes Radio, Music Unlimited, and Xbox Music are worthy contenders in this competitive space. Product reviews assess service quality with major factors include song catalog, user interface, support, and features. [10] Each racing for a market share, these top players in the market are making strategic ploys to stay afloat.

On November 12th, Youtube announced their own streaming service, Youtube Music Key for $9.99. It will be interesting to see how it will affect the music industry when it fully hits the market in 2015. [11]

[12] Spotify and The Echo Nest collaboration

In early March 2014, Spotify acquired The Echo Nest, a big data company to enhance the music discovery feature, forcing Rdio, Rhapsody, iHeartRadio, and Vevo to look elsewhere for a discovery algorithm. [13]

THE SPOTIFY STRATEGY

Spotify has successfully targeted college students, establishing a solid audience base and brand loyalty. With personal information confirming their status, Spotify offers students Spotify Premium for only $4.99. [13]

[13] Spotify engages their target audience: college students and 18-24 year-olds.

COLLEGE CASE STUDY

Spotify’s tenacious grasp on college students’ listening is reflected in their recently released research report of the Top 40 Musical Schools in America. The findings are a close study of the musical norms in the schools.

[14] Detailed graphs document music-genre distribution and listening spikes, showing not only what students listen to but also how they listen.

The data that Spotify is able to collect can be utilized for targeted advertising and marketing campaigns today. Moreover, with such a large following of the developing youth, Spotify is not only able to make significant advancements with the invaluable information about today, but accurate inferences about these soon-to-be adults tomorrow. [13]

#THATSONGWHEN

Spotify launched their #thatsongwhen campaign with advertising agencies Ogilvy & Mather and David to further engage their millennial base. #Thatsongwhen allows users to tie their emotional experiences to their favorite songs, to create, and to tell stories. The customization, personalization, and interactivity of a musical experience attracts and retains a young crowd. [15]

The stories are media clips that are charged with emotion, and of course, music. Don’t Go Chasing Girls is about a man’s early memory of his childhood crush that is easily triggered with TLC’s hit song, Don’t Go Chasing Waterfalls. Stories and songs are updated and posted on a live feed.

AD TAKEOVER

Spotify is introducing two new advertising options for eager advertisers:

1. The dubbed Video Takeover, only available on desktops, allows brands to takeover the screen during 15-30 second advertising breaks.

2.The dubbed Sponsor Sessions forces mobile users to view a 15-30 second video on their mobile devices in order to proceed onto 30 minutes of uninterrupted streaming. [16]

McDonald’s, Universal Pictures, and Ford are just some of the major sponsors that have opted into this advertising innovation. [17]

[18] McDonald’s format and utilization of Spotify’s advertising product – Video Takeover.

SPOTIFY PARTNERSHIPS

VODAFONE

Everything is going mobile, and music is no exception. This rapid trend of playing and streaming music from a smartphone is particularly prevalent in Australia. Due to these recent findings, Vodafone Australia has partnered with Spotify to bundle in Spotify Premium for free with their monthly plan. A Spotify Premium subscription generally costs $11.99 Australian dollars each month. The exclusive offers with Spotify vary, and are known as the Red Plans. [19]

[20] Research shows that 1.5 million Australians stream music from their mobile devices.

Vodafone believes that Spotify Premium’s features complement and maximize the use of their faster network speeds, value plans, and expanding 4G network. Both the companies and the listeners are benefitting from this collaboration as the marriage of these digital services follow consumer trends and meets consumer needs. [21]

CARPLAY

Apple Carplay is an a new feature configured in select 2014 vehicles. Spotify is on board for this innovative ride as it has updated and fixed some bugs for this new multimedia system. [22] The music player allows users to access their Spotify accounts using a compatible iPhone. [23] With a built-in display to play music, Carplay is an exclusive and luxurious market; the Ferrari FF is one of the few select cars with Carplay. Several automobile manufacturers, however, are making an effort to include and support this system in the future. [24]

[24] Spotify collaborates with Apple Carplay to incorporate music services in the latest car models.

UBER

Uber is a hip taxi service, and Spotify is a hip streaming service. These two successful startups partner up for a new listening experience. Passengers can link their custom playlists to Uber vehicles for a fun ride. Although this new feature has started off in ten cities, it makes a big splash in the car service industry and the music industry. This partnership allows both companies to co-promote their respective brands and to change with the times. The service is for Spotify Premium account holders. [25]

[26] Spotify and Uber modernize the standard cab-ride as they join forces to create a new listening experience.

SPOTIFY CONTROVERSY

Taylor Swift pulled her entire catalogue from Spotify’s music database as she believes that it does not fairly compensate artists. [27] As a popular musician, her bold move and her public statements rejecting the streaming business model has made headlines for weeks. Fans and critics are responding to her decision with distaste as both parties point out that there are other viable services, such as Youtube and SoundCloud, to play her music. [28] While she recently accepted the first-ever Dick Clark Award for Excellence at the 2014 American Music Awards Ceremony, she added another snide comment jabbing at Spotify and streaming services again. [29] Jason Aldean has followed Swift’s footsteps, and pulled his new album Old Boots, New Dirt from Spotify. [30]

Spotify executive, Ek, combats this frenzy and reports that artists that use Spotify to promote their music actually sell more, and that Spotify has returned over $2 billion to music industry today. Top artists like Swift are set to project over $6 million in revenue a year. [31] Despite the financial debate and moral controversy, the Spotify team still hopes for Swift to change her mind. [32]

[33] Taylor Swift is a firm believer in the value of music, and that it should not be free. Swift has pulled her music catalogue from Spotify.

It is unlikely that many artists will join Swift’s banning of the digital streaming business, as it is the digital age. Reports confirm that streaming services grew 28% in the first half of 2014. [26] Listeners’ habits changed; artists can sink, but digital streaming services will swim.

SPOTIFY: LOOKING AHEAD

Despite the recent controversies, Spotify has achieved success with their recent collaborations; the student discount and the partnership with Vodafone have led Spotify subscriptions to increase by 42%. [28] Spotify Family Plan has launched with popular demand and proven financial success with previous discount deals. The plan allows subscribers to add four family members to their account for half the price. [34]

Spotify’s name is globally recognized, and Spotify’s services are well integrated into the new digital age. Its key strategies and partnerships keep it on the bleeding edge of the music industry.

Sources

1. Spotify’s Logo, Spotifypress.com, RT:11.29.2014

2. Daniel Ek and Martin Lorentzon, RT: 11.29.2014

3. Jeff Levick, RT: 11.29.2014

4. Steve Savoca, Spotifypress.com, RT:11.29.2014

5. Ken Parks, Evolver.fm, RT: 11.29.2014

6. Spotify Interface Layout, RT: 11.29.2014

7. Spotify Business Information, investing.businessweek.com, RT: 11.29.2014

8. Spotify Official Website, spotify.com/us, RT: 11.29.2014

9. Spotify Press Information, spotify.com/information, RT: 11.29.2014

10. “Spotify and competitors play to their musical strengths”, usatoday.com, RT: 11.29.2014

11. “YouTube Launching Spotify-Style Paid Music Service”, TIME, RT: 11.29.2014

12. Spotify and The Echo Nest Collaboration, RT: 11.29.2014

13. “Will Spotify’s hat trick help it pull ahead of competition?”, Fortune, RT: 11.29.2014

14. How Students Listen, spotify.com, RT: 11.29.2014

15. “Spotify Ties Music to Personal Stories in Its New Ads”, adweek.com, RT: 11.29.2014

16. “Spotify Unveils Video Takeover Ad Product for Free Users”, telecompaper.com, RT: 11.29.2014

17. “Spotify is bringing video ‘takeover ads’ to its free service”, theverge.com, RT: 11.29.2014

18. Spotify Video Takeover Format, spotify.com, RT: 11.29.2014

19. “Vodafone offers postpaid customers free Spotify Premium access”, CNET, RT: 11.29.2014

20. “Spotify partners with Vodafone Australia for down under listeners”, rainnews.com, RT: 11.29.2014

21. “Vodafone Australia and Spotify join forces!”, vodafone.com, RT: 11.29.2014

22. “Spotify adds support for Apple’s CarPlay in update to iOS app”, talkingnewmedia.com, RT: 11.29.2014

23. “Spotify Adds CarPlay Support in Latest iOS Update”, macrumors.com, RT: 11.29.2014

24. “Apple CarPlay comes to Pioneer stereos as Spotify adds support”, engadget.com, RT: 11.29.2014

25. “Tuneup, redefined: You can now Spotify your Uber ride”, CNET, RT: 11.29.2014

26. Uber and Spotify Partnership, Uber.com, RT: 11.29.2014

27. “Taylor Swift is right about music, wrong about Spotify, says CEO Ek”, CNET, RT: 11.29.2014

28. “Why Taylor Swift Will Lose Her Battle With Spotify”, TIME, RT: 11.29.2014

29. “AMAs: Taylor Swift Continues Anti-Streaming-Service Stance in Dick Clark Award Speech”, hollywoodreporter.com, RT: 11.29.2014

30. “Jason Aldean Agrees with Taylor Swift, WIll Remove New Album From Spotify”, musictimes.com, RT: 11.29.2014

31. “$2 Billion and Counting”, spotify.com, RT: 11.29.2014

32. “Here’s Why Taylor Swift Pulled Her Music From Spotify”, TIME, RT: 11.29.2014

33. “Taylor Swift and the Whole Spotify Thing”, uloop.com, RT: 11.29.2014

34. “Spotify launching family plan with cheaper subscriptions for families”, theguardian.com, RT: 11.29.2014

CBS Films

Posted on October 5, 2014 by rkraiche

 by Rebecca Raichek

11800 Wilshire Blvd, Los Angeles CA 90025

Company Overview

CBS Films is a film company that is owned by CBS Corporation and produces, distributes, and acquires feature films. Created in 2007, CBS Films is a small production company who release about four to six films every year that consist of various different genres [1]. CBS Films are always on the lookout for new quality films regardless of genre, and generally focus on the production of smaller films since they are more agile and adapt to the market place says Vice President of Communications Grey Munford [2]. CBS Films looks to make good movies that are able to find an audience. Showtime and CBS help with the financing of the films, and the showcasing and syndication as well. Because CBS is good at putting premium content out, CBS films are able to reach their intended audience. They gain viewers through less of a traditional promotional and advertising way, but are still equally as successful as the big studios [2].

Key Executives

Terry Press: President

Terry Press source: cbsfilms.com/about

Reid Sullivan: Chief Financial Officer

Reid Sullivan source: cbsfilms.com/about

Scott Shooman: Executive Vice President Acquisitions and Co-Productions

Scott Shooman source: cbsfilms.com/about

Steven Friedlander: Executive Vice President Theatrical Distributions

Steven Friedlander source: cbsfilms.com/about

Financials

Since CBS Films was established in 2007, they have released 17 movies that have earned a total gross income of $321,882,427 [3]. The top earning movie was Last Vegas with $63,914,167, followed by The Woman in Black with $54,333,290. In the first quarter of 2014, the Entertainment sector of CBS Corporation which includes CBS Films earned $457 million which was a decrease for the first quarter in 2013 which was $480 million [4]. In the third quarter of 2014 which is the most recent, the Entertainment sector of CBS corporation earned $335 million which was a decrease from $431 million in 2013 [4].

Upcoming/Current Projects

Currently, CBS Films has one film in theaters and one that is coming out in February. In July 2014 CBS Films acquired the U.S rights to the British film Pride after it debuted at the Cannes film festival. Pride is a film about the true story of a gay and lesbian activist group in London supporting the national union of mineworkers strike. It stars Bill Nighy, Imelda Staunton, Dominic West, Paddy Considine, and is directed by Matthew Warchus. The film was distributed by Pathe and the acquisition deal was made by Scott Shooman who negotiated with Cameron McCracken and Pierre du Plessis [5]. Pride was a small film with a limited release of only 124 theaters in the U.S and has a total gross of $1,446,634 [6]. Critics gave the film great reviews and was given 94% rating on Rotten Tomatoes [7]. To advertise the film, CBS Films relied heavily on the use of social media and personal interactions through the audiences via Twitter. CBS Films retweeted audience reviews of Pride on their page instead of self-promoting the movie themselves. According to Vice President of Communications Grey Munford, “ the best thing you can do is retweet the good things other people are saying. People trust it more with reviews coming from other people.” He also stressed that “Pride was a social first movie- in the digital space social media is most important,” [2]. Pride will be available on Blue-Ray on December 23rd, 2014.

Promotional poster for Pride source: geekedoutnation.com

Another upcoming project for CBS Films is the release of The DUFF in February 2015. The trailer for The DUFF had it’s world release during the premiere of The Hunger Games as part of a strategy by CBS to target the demographic of Women Under 25 [2]. According to Munford, the trailer was strategically released during The Hunger Games because it was the single biggest movie released between November and February that would reach the target demographic [2]. The DUFF is about a high school girl who finds out she is the
“DUFF” of her friend group- the designated ugly fat friend, and she desperately tries to change her image. This film has also used social media to advertise, and actors Bella Thorne and Robbie Amell have tweeted a link to the trailer encouraging their fans and followers to watch it and see the movie when it is released.

Promotional poster for The DUFF source: collider.com

Starting in 2015, Lionsgate Entertainment will take over CBS Film’s distribution operations as a multiyear agreement. The deal also includes Lionsgate taking control over all international sales for CBS films. CBS will still produce and acquire their own films, but Lionsgate will have total control of distribution both in theaters and in home entertainment [8]. This deal comes after CBS Films has made a move to become a more significant studio in acquiring films, especially after they acquired Inside Llewyn Davis, Salmon Fishing in the Yemen, and most recently Pride [8].

Another upcoming project for CBS Films is the production of Scary Stories to Tell in the Dark which will be an adaptation of the books written by Alvin Schwartz. The films will be adapted by John August, and will be produced by Sean Daniel, Jason Brown, and Elizabeth Grave [9].

source: deadline.com

CBS Films is also adapting the Broadway musical 13 to film which will be written by Bert V. Royal, and produced by Laurence Mark [10].

Social Media

Because CBS Films is a smaller film company, they rely heavily on social media in order to advertise and promote their films. They have a Facebook account where they constantly post about their current and upcoming projects and provide behind the scenes pictures for the 5,700 people who like the page. Vice President of Communications for CBS Films Grey Munford, explained how social media has helped their films successfully compete with big budget movies at the box office. Their film The Woman In Black, starring Daniel Radcliffe, opened up within 2-3 million dollars of Fox’s big budget film Chronicle. [2]. The film used social media and built an online fan base to successfully advertise and also emphasized on the stardom of Daniel Radcliffe to persuade his current fans to see the movie.

source: gettypress.co.uk

CBS Films also used Radcliffe as an advertising tool to promote their Romantic- Comedy What If which he starred in as well. The film had a social media campaign through the new app We Heart It which is an image-sharing social network, and gained 22,000 followers [11].

source: gophoto.us

References

[1]. About CBS Films, cbsfilms.com/about, RT 11/27/14

[2]. G.Munford, Personal Communication, October 29 2014.

[3]. CBS Films All Time Box Office Results, boxofficemojo.com, RT 11/27/14

[4].CBS Corporation Investor Relations, investors.cbscorporation.com, RT 11/28/14

[5].“Pride Acquired by CBS Films”, variety.com, RT 11/27/14

[6].Pride (2014), boxofficemojo.com, RT 11/27/14

[7] Rotten Tomatoes, rottentomatoes.com, RT 11/29/14

[8]. “Lionsgate Takes Over CBS Films’ Distribution & Global Sales, deadline.com, RT 11/28/14

[9].“John August To Pen ‘Scary Stories To Tell In The Dark’ For CBS Films, deadline.com, RT 11/28/14

[10].“CBS Films Bringing Musical ’13’ to Big Screen, hollywoodreporter.com, RT 11/28/14

[11].“Young-adult movie campaigns mine social media” usatoday.com, RT 11/28/14

Additional References

YouTube

Posted on October 28, 2013 by Shea Donovan

By Shea Donovan

Youtube Logo

[1]

Youtube LLC
901 Cherry Ave
San Bruno, CA
94066
(650) 253-0000
[2]

Founders and Senior Vice President:

Steve Chen [3]

Chad Hurley [4]

Jawed Karim [5]

Senior Vice President – Salar Kamangar [6][7]

Youtube History:

Google Sphere

Eight years ago Youtube was created by three former Paypal employees, and since 2006 has been owned by Google. From the first Youtube video, uploaded on April 23, 2005 by founder Jawed Karim, Youtube has come a long way and has been hugely successful. Youtube was originally a video-sharing website, but today, even though video-sharing continues to be the main source of content, Youtube users can now get access to full length movies and other high-quality content such as short films that members of the Youtube Partnership Program upload. [8][9]

Revenue:

Youtube’s revenue comes primarily from advertising that takes place before a viewer can view a video. If the video has been uploaded by an uploader that is a member of the Youtube Partnership Program, 55% of the advertising commission for that video goes to the uploader, and 45% of the commission goes to Youtube.[10]

Current Projects:

Youtube has been working on expansion and integration. They are rumored to have a pay radio service similar to Spotify in the works and in addition, Youtube recently streamed the first “Youtube Music Awards” online at Youtube.com. Changes to Youtube.com include an integration with Google Plus.

Youtube Radio

Youtube is rumored to have a new radio service called Youtube Radio in the works. It is due to be released at the end of this year. This radio service would be similar to Spotify where it would be a paid subscription service and listeners would be able to listen to full albums of music. This radio service is targeted at mobile users, largely due to the 40% increase of Youtube use on mobile phones, since the release of the Youtube app. The new options that Youtube Radio would offer, different from Spotify, are that you can watch music videos through this service and you can also keep certain songs on your device for a short period of time.

This new radio service would help out the struggling music industry and also many problems Youtube has with copyrighted music. Within this new service, record companies would be able to work with Youtube to fix the problem of low per-stream payouts. Youtube will have to acquire the legal licenses from record labels and artists in order to stream music for Youtube Radio. This move for Youtube Radio will help resolve copyright issues that Youtube.com currently has, where Youtube users use copyrighted songs in their videos without permission. [11][12]

Youtube Music Awards

On November 3rd, 2013, Youtube aired their first ever Youtube Music Awards (YTMA). The award show was 90-minutes long and was held at Pier 36 in NYC. It was only streamed online on Youtube.com. There was chaos, awkwardness, and, unfortunately for Youtube, no more than 200,000 people tuned in to watch. Lady Gaga, Arcade Fire, M.I.A. and Eminem performed, as well as other artists, throughout the show.
Six music-related awards were given out: Breakthrough of the Year, Response of the Year, Innovation of the Year, Youtube Phenomenon, Video of the Year, and Artist of the Year. The award titles reflect other awards given at broadcast award shows on television, like the American Music Awards or Video Music Awards, but the recipient of each Youtube award was decided by video-sharing activity on Youtube.com from fans two weeks before the airing of the show.
Unfortunately, the show wasn’t as successful as Youtube has expected, due largely to the production ideas that creative director, Spike Joneze, came up with for the show. Jonze, a successful music video and film director, was the creative director for the show and he admitted that he had never “done anything live before or an awards show.” Jonze decided to have no rehearsal for the show because “the objective was to create an awards show unlike any other, where the audience gathered in a non-stuffy space and the production moved organically throughout the room.” Jonze also decided to have the hosts, Jason Schwartzman and Reggie Watts, find the winning artists in the crowd of people, “similar to a scavenger hunt.” [13][14]
The YTMA’s was another way Youtube was trying to branch out into new forms of entertainment. The amazing performances from talented, famous and non-famous, artists and the creative producing techniques definitely ended up making the YTMA’s stand out from the crowd of other award shows. Hopefully Youtube is planning on having the YTMA’s again next year and they can only get better. Click the image below to watch the full Youtube Music Awards: [15][16]

Google Plus + Youtube Integration

Youtube has been owned by Google since 2006, but it wasn’t until earlier this fall that there has been a cross-over of a Google app and Youtube. Google now requires Youtube users to have a Google Plus account, Google’s social network, in order to post comments on all Youtube videos. Now every time you post a comment, your real name is shown. This change is a result of the long history of some Youtube comments posted that are inappropriate and spam. Google hopes that if users are forced to show their real name next to their comments, the comments will be less crude and more substantial towards the videos.
Google has received a lot of backlash from this decision, many Youtube users saying, “anonymity is part of what makes the internet work, and to eliminate it and create a system where there’s a permanent record of anything anyone’s ever done or said on the web can get a bit 1984 rather fast.” Youtube users are now forced to sign up for a Google Plus account if they wish to comment on a video. In addition to showing users real names, other small changes that this integration has made on the comment section include not having a character limit on comments, which is causing excessive comments, and responses to users comments being sent to their Google Plus accounts instead of their Youtube accounts.
Google’s decision to integrate Google Plus into Youtube came from good intentions. It is a fairly new change to Youtube and whether Google will keep Google Plus integrated into the comments of Youtube is unknown. It is possible that Youtube users will find a way around this change, but in the mean time there are some positive results from this change. Many people are now being introduced to Google Plus, which is a good alternative social network to people who are getting bored with Facebook and Twitter, or just want to try out a new social network. One new change to the Youtube.com format and one is that there is now a Google Plus bar that allows you to view your ‘Favorites,’ ‘Subscriptions,’ ‘Playlists,’ and more, all in one place.
[17][18]

Sources:

[1] Youtube Logo: http://www.rudyhuyn.com/blog/2013/05/23/how-to-launch-the-official-youtube-app-from-your-app/
Retrieval date: 11/15/13

[2] Youtube Contact Information: http://www.youtube.com/t/contact_us
Retrieval date: 11/15/13

[3] Steve Chen Image: http://www.biography.com/people/steve-chen-201191
Retrieval date: 11/18/13

[4] Chad Hurley Image:
https://plus.google.com/u/0/+ChadHurley/posts
Retrieval date: 11/18/13

[5] Jawed Karim Image: http://en.wikipedia.org/wiki/Jawed_Karim
Retrieval date: 11/18/13

[6][7] Salar Kamangar -Image: http://www.google.com/press/images.html
Bio: http://en.wikipedia.org/wiki/Salar_Kamangar
Retrieval date: 11/15/13

Youtube Partnership Program: https://www.youtube.com/yt/creators/creator-benefits.html
Retrieval date: 11/15/13

[8][10] Youtube History and Revenue: http://en.wikipedia.org/wiki/Youtube
Retrieval date: 11/16/13

[9] Google Sphere: http://1.bp.blogspot.com/_4S6buKKlhfQ/TPaPhtK-1pI/AAAAAAAAAFU/UjAwDntghJk/app_sphere_youtube.png
Retrieval date: 11/16/13

[11] Youtube Radio Logo: http://iapps.co.il/sites/default/files/mzi.lfufdivu.175×175-75.jpg?1294755731
Retrieval date: 11/16/13

[12] NYTimes Youtube Radio Article: http://www.nytimes.com/2013/10/25/business/media/youtube-said-to-introduce-paid-music-service.html?ref=youtube&_r=0
Retrieval date: 11/17/13

[13] Yahoo News article on Youtube Music Awards:
http://news.yahoo.com/youtube-debuts-first-ever-music-awards-193440544.html
Retrieval date: 11/17/13

[14] Rolling Stones YTMA Article:
http://www.rollingstone.com/music/news/10-weirdest-moments-at-the-youtube-music-awards-20131104
Retrieval date: 11/17/13

[15] YTMA Play Button: http://mashable.com/2013/10/30/youtube-music-awards-putmeintheytmas/
Retrieval date: 11/19/13

[16] Youtube Music Awards: http://www.youtube.com/watch?v=yXBPbnv1H-U
Retrieval date: 11/20/13

[17] Google Plus Youtube, ‘To be or not to be?’ Image: http://blog.hasneounique.com
Retrieval date: 11/18/13

[18] Forbes Google Plus + Youtube Integration Article and Image: http://www.forbes.com/sites/insertcoin/2013/11/09/google-plus-creates-uproar-over-forced-youtube-integration/
Retrieval date: 11/18/13

Google Plus Youtube bar: Personal Image
Retrieval date: 11/19/13

Ion Media Networks

Posted on April 8, 2013 by Michael DelloStritto

by Mike DelloStritto

Ion Media Networks [14]

601 Clearwater Park Road West Palm Beach, FL 33401

Phone: (561) 659-4122

EXECUTIVES

: Brandon Burgess, Chairman and CEO [15]

: Chris Addeo, Marketing [16]

: Jeff Quinn, Finance [17]

: Douglas Holloway, Distribution [18]

ABOUT ION MEDIA NETWORKS

Ion Media Networks was founded in 1984 under the name “Paxson Communications”. It wasn’t until 2006 that the company rebranded itself into what is now known as Ion Media Networks. The company today focuses their efforts in three areas: general entertainment television, special interest television, and mobile television.

Ion is considered a pioneer when it comes to providing their audiences with special interest television. They are the first to have launched two 24/7 DTV channels: Qubo and Ion Life [1]. Qubo is a safe haven for young kids to access entertainment that is always “good fun”. Qubo claims to be one of the few networks that offer age-appropriate programming to the underserved age group of 5 to 8 year olds. Ion Life is a channel dedicated to those with healthy, active lifestyles. The various programming options on this channel look to inspire, entertain, and encourage people to live their best possible lives.

In addition to special interest television, Ion co-founded the industry movement to bring television to mobile devices. Ion is a founding member of Mobile Content Venture (MCV), along with NBCUniversal, Fox and leading broadcast station groups [2]. Their division of mobile television, Dyle, provides viewers with access to live, local broadcast television through compatible mobile devices in select markets.

General entertainment television is Ion’s most prominent media outlet. They are a leading, high quality U.S. network, constantly providing innovation and growth to the industry. They serve an adult audience ages 25-54, and have recently expanded their reach to 260 million Americans in over 100 million U.S. households [3]. Their viewership has doubled since rebranding to “Ion Television” in 2008, climbing from nowhere to inside the top 15 cable ratings [4]. Their slogan “Positively Entertaining” lives up to the bill with syndicated programming such as: Criminal Minds, Numbers, Cold Case, and their original series Flash Point, in addition to many others. Their programming also includes various movie titles.

THE BEGINNING OF THE CAMPAIGN

Ion Television’s lineup of fully syndicated programming makes it difficult to persuade marketers to advertise on their channel. It is presumably more attractive for marketers to reach out to one of Ion’s competitors such as CBS or Fox, and advertise where programming is more diverse. Ion isn’t holding an upfront in 2013 to gain advertising on their channels like ABC, A&E, truTV, and Bravo (to name a few) are holding [5]. Instead, Ion must develop unique and creative ways to reach their advertisers.

Announced on March 4, 2013, the rebranding of Ion television and their new multi-tiered B2B campaign, introducing the ‘Ionthusiasts’, is exactly the creative buzz the network needs [6]. To go along with the campaign, Ion television will be releasing their new network logo under their already established tagline “Positively Entertaining”.

: OLD [19]

: NEW [20]

INTRODUCING THE IONTHUSIASTS

The bulk of the campaign is centered on the “Ionthusiasts”. According to independent research studies conducted by the network, Ion leads all of cable in adult co-viewing in households watching TV together. The data shows Ion is number 1 in cable for hours watched per viewer, and 69% of these committed viewers are watching marathons on a routine basis. After digesting this data, Barker DZP, the New York-based agency that developed the creative decided, “Ion viewers are highly engaged and unique in their passion for the network’s programming, they make an appointment to watch this content live for several hours at a time, which is why ‘Ionthusiasts’ is such an appropriate descriptor” [7].

Barker DZP Advertising [21]

The campaign will carry media buys across many different platforms including spots in print and out-of-home; however, the most intricate are the online spots. The network chose Barker DZP’s approach because, “their campaign truly reflected the attributes of our viewers…we found the perfect moniker that fully represents the quality of our audience and their enthusiasm for the Ion Television brand” [8].

The Ionthusiasts have a separate website displaying the three fictional couples (the Ionthusiasts) based on Ion’s key demographics: adults 25-34, 35-44, and 45-54. Each couple has a “profile” explaining some key facts about the particular age demo. These facts include: why they watch Ion Television, the percentage of having kids, some hobbies they enjoy, and their personality traits [9].

Ion Demographics [22]

Each couple even has a little video so the advertisers can see each demographic in action.

Dean & Steph [23]

Next, there is a “Learn About Ion” tab that contains a sizzle reel of their top shows [10]. However, the site goes even more in depth with an interactive section, allowing advertisers and marketers to drill down even deeper into the types of people that watch Ion Television. In order to receive a username to partake in the interactive part of the site, you must be an employee of a media planning & buying agency, advertising agency, or an advertiser [11]. Once you receive a username, you can play an interactive game that follows one of the Ionthusiasts families through their day. At each stoppage you make a decision to progress the family further along; this is useful to an advertiser because an “Ionthusiasts Fact”, which gives the player even more intricate details about the exact viewer, supports each decision you end up making. As you can see in the picture, the fact explains, through an MRI Spring 2012 Study, that Ionthusiasts are pet owners, suggesting the answer to the question is to travel to the pet store [12].

Interactive game [24]

These Ionthusiasts Facts clue marketers and advertisers into the minute details of each demographic, creating opportunities for super specified advertising to develop. For example, if Pet Smart knows that Ion has a very dedicated viewing audience, and that same dedicated audience owns pets, purchasing a media buy on this channel would be ideal for both parties. In addition to gaining insight on viewers, the marketers that play the game can earn points that go towards prizes such as iPads, vacations, and gift cards.

THE ION LONGUE

Ion Lounge [25]

Ion Media Networks did not neglect their dedicated fans through their campaign and rebrand. They developed an offshoot from the Ion Television website called the “Ion Lounge” [13]. It is a fun, colorful, and interactive site for fans to get their Ion fix long after their favorite show is over. The Ion Lounge allows you to play games and answer trivia about the shows. Each time you complete a game or answer a question right, you earn points that can later be traded in for prizes. These prizes do not compare to the Ionthusiasts prizes the marketers can win, but rather act as a token of fan-hood for the network with items such as t-shirts, tumblers, and drawstring bags. In addition, fans can create their very own “Ion Lounge” and upload it to the gallery where others can view the creation. It’s simple, but a great way to keep the viewers active with the brand.

: Ion Longue homepage [27]

: Lounge example [26]

It takes a creative genius such as those working at Barker DZP to develop such an ambitious and unique plan for attracting advertisers, but it seems as though Ion certainly has a good thing in the works thus far. It is still early in the campaign, but I’m sure they are going to be very happy with the results when it comes to an end.

Sources:

[1] Ion Media Networks Milestones

[2] Mobile Content Venture

[3] Ad Age Branded Content

[4] Ion Media Networks Milestones

[5] 2013 Upfront Season Overview

[6] TV News Check – Ion New Look

[7] TV by the Numbers – Multi-Tiered B2B

[8] Broadcasting Cable – ‘IONTHUSIASTS’ Marketing Campaign

[9] Meet the Ionthusiasts

[10] Ion Television Sizzle Reel

[11] Ionthusiasts – How it Works

[12] Ionthusiasts – Dean & Stephanie

[13] Ion Lounge

[14] Ion Media Networks Logo

[15] Brandon Burgess

[16] Chris Addeo

[17] Jeff Quinn

[18] Douglas Holloway

[19] Old Ion Logo

[20] New Ion Logo

[21] Barker DZP Logo

[22] Ion Demographics

[23] Dean & Steph

[24] Interactive game

[25] Ion Lounge

[26] Lounge example

[27] Lounge homepage

Cumulus

Posted on April 8, 2013 by Joshua Campbell

by Josh Campbell

Cumulus Media, Inc.

3280 Peachtree Road, NW Suite 2300
Atlanta, Georgia 30305
TEL. (404) 949-0700
FAX. (404) 949-0740 [1]

Cumulus Media Logo [2]

1.0 Company Overview

Cumulus Media Inc. is the largest “pure-play” radio company in the United States, with roughly 550 stations in 110 cities, including major markets such as San Francisco, Houston, and Dallas. [3][4] Cumulus Media also operates Cumulus Media Networks, a network with over 4,500 radio affiliates to which Cumulus provides content [5]. Cumulus Media Networks syndicates talk shows by popular personalities like Dr. Sanjay Gupta, Mike Huckabee, Michael Savage, and Geraldo. [6] In addition to its radio holdings, Cumulus Media also owns SweetJack, a daily deals service similar to Groupon. [7] Cumulus is using its extensive radio network to market the relatively new SweetJack. [8]

2.0 Key People

Lewis W. Dickey [10]

Chairman, President, and CEO–Lewis Dickey: Lewis W. Dickey received his bachelor’s from Stanford University, and an MBA from Harvard University. In addition to serving in his current capacity at Cumulus Media, Mr. Dickey is also on the Board of Directors of the North American Broadcasting Co. and National Association of Broadcasters. [9]

Director–Alexis Glick: Alexis Glick received her bachelor’s degree from Columbia University and was previously employed as a Principal by CNBC, Inc., and as Vice President of Fox Business Network. [11]

3.0 Financials

3.1 Income Statement [12]

(2012): Revenue: $1,076,600,000 (+51.67%)

Gross Profit: $415,100,000 (+51.13%)

(2011): Revenue: $520,000,000 (+54.50%)

Gross Profit: $203,700,000 (+54.39%)

(2010): Revenue: $236,600,000 (-8.12%)

Gross Profit: $92,900,000 (+2.69%)

Cumulus Media has had several good years, with both revenue and gross profit rising by roughly fifty percent in 2012 and 2011. Much of this increase is likely due to a number of acquisitions that Cumulus has made recently, most notably its takeover of Citadel Broadcasting Corporation. [13] Cumulus is doing well when compared with what is arguably its biggest competitor, Clear Channel. Clear Channel Communications (CCC), while dwarfing Cumulus in revenue, earning $6,246,884 in 2012, lost money last year, pulling in a net income of -$425,500,000. [14]

3.2 Stock History and Target

Cumulus Media (NASDAQ: CMLS) started the year 2013 at 2.66, and has since risen to 3.28 as of April 5, 2013. On April 9, 2012, approximately this time last year, Cumulus Media was traded at 3.32. [15] This shows CMLS stock to be relatively stable in the long term, though there were some fluctuations in the short term. On November 27, Cumulus dipped to 2.16, its low point of this past year (Apr 2012-Apr 2013). Cumulus Media’s target for the end of the year 2013 is a stock price of 4.00. [16]

As a comparison, Clear Channel Communications (OTCBB: CCMO) is currently traded at 2.80. CCC’s stock price has decreased from a year ago, when it was traded at roughly 5.25. Over the past year, Clear Channel’s stock price has fluctuated to a far greater extent than that of Cumulus Media, hitting a high of 6.2 in late April and a low of 1.2 in late July [17]

4.0 Recent Activity

4.1 January

The beginning of 2013 saw legendary New York DJ Don Imus’s old contract with Cumulus expire. However, the well-known personality stayed on the air under new conditions specified in a deal inked with Cumulus in mid-December of 2012. [18]

Nash 94.7 Logo [23]

Possibly the company’s most publicized decision this year, the purchase of WFME from Family Stations for $40,000,000 allowed Cumulus to rebrand the previously religious station as NASH 94.7, a country music station–the first to serve the major New York City area in many years. [19][20] The station has proven that there was a latent market in NYC for country music; by March, NASH was already averaging 1 million listeners each week. [21] Cumulus CEO Lew Dickey has stated that he hopes NASH 94.7 will be just the start of a “multimedia entertainment brand” including not only radio, but also television, online, and publishing. He stated that this will help draw advertisers to the brand by offering one stop shopping for cohesive advertising on all platforms. [22]

4.2 February

Cumulus Media Networks signed a deal to distribute college football broadcasts by Gino Torretta, a former college athlete who currently provides play-by-play and commentary on a college football game each week. [24]

4.3 March

In March, 2013, Cumulus Media had its earning call for Q4 2012, which showed the net income of the company dip slightly, as many analysts had predicted. [25][26][27] Despite this, the stock price of Cumulus Media did not decrease significantly. [28]

4.4 April

In April, 2013, it was reported that the Senior Vice President, Treasurer, and CFO of Cumulus Media, Joseph P. Hannan, purchased 25,000 shares of Cumulus stock at the market price of $3.30 per share. This most recent purchase increases his total holdings in the company to 70,943 shares. [29] Insiders in Cumulus Media tend to buy CMLS stock in far greater quantities and with far greater frequency than competing company’s executives buy their respective company’s stock. This is seen as a good sign by many analysts. [30]

5.0 Future Plans

Lewis Dickey, the CEO of Cumulus Media, recently conducted a series of interviews with Bloomberg TV about the future of Cumulus Media and of the radio industry in general. Mr. Dickey was excited about the future of SweetJack, the previously mentioned daily deals service that Cumulus Media just started offering. Cumulus is optimistic about the future of SweetJack, believing that the “daily-deals” style business model is essentially a sound one. Cumulus has partnered with Clear Channel to air ads for SweetJack on the latter’s stations as well as Cumulus’s own affiliates. [31]

Cumulus hopes SweetJack will allow them to tap into the daily deals market [35]

Dickey also stated that he believes the radio industry is headed towards more consolidation of ownership, made possible by the Telecommunications Act of 1996. Responding to that trend in the industry, Cumulus is planning new acquisitions in the near future. [32] Cumulus industry has been keen on acquiring stations in the past, having orchestrated over 150 acquisitions since their founding in 1997, including the 2011 buyouts of Cumulus Media Partners, LLC and Citadel Broadcasting, which added 32 and 225 stations to Cumulus’s total amount, respectively. [33][34]

The future looks bright for Cumulus Media; The estimated earnings growth for the next fiscal year for Cumulus, at 83.9% are the highest among several large communications companies, including Discovery Communications, Scripps Communications, and CBS. [36][37]

Sources:

[1] http://www.cumulus.com/contact-us/

[2] http://www.allaccess.com/assets/img/editorial/raw/cu/cumulus2011.JPG

[3] http://www.cumulus.com/local-radio-2/

[4] http://www.cjr.org/resources/?c=cumulus

[5] http://www.cumulus.com/cumulus-media-network/

[6] http://affiliates.cumulusmedianetworks.com/

[7] http://www.sweetjack.com/local/

[8] http://www.clarkhoward.com/news/clark-howard/shopping-retail/sweetjack-heats-daily-deal-marketplace/nF3qr/

[9] http://quotes.wsj.com/CMLS/company-people/executive-profile/115649131?mod=WSJ_qtpeople_dir#less

[10] http://sportsrantz.com/media/files/2012/10/Dickey.png

[11] http://quotes.wsj.com/CMLS/company-people/executive-profile/66954?mod=WSJ_qtpeople_dir#less

[12] http://investing.businessweek.com/research/stocks/financials/financials.asp?ticker=CMLS&dataset=incomeStatement&period=A&currency=native

[13] http://www.businesswire.com/news/home/20110916005528/en/Cumulus-Media-Announces-Completion-Acquisition-Citadel-Broadcasting

[14] http://edgar.secdatabase.com/1389/73970813000003/filing-main.htm

[15] http://www.dailyfinance.com/quote/nasdaq/cumulus-media-inc/cmls“`

[16] http://www.nasdaq.com/symbol/cmls#.UWJhJavwL-s

[17] http://www.otcbb.com/asp/Info_Center.asp?symbol=ccmo

[18] http://mediadecoder.blogs.nytimes.com/2012/12/11/don-imus-signs-a-3-year-extension-for-his-radio-show/?ref=cumulusmediainc

[19] http://www.radioink.com/Article.asp?id=2602813&spid=24698

[20] http://www.allaccess.com/net-news/archive/story/114116/done-deal-cumulus-closes-on-wfme

[21] online.wsj.com/article/SB10001424127887323605404578382622285255296.html?KEYWORDS=cumulus+media

[22] http://www.youtube.com/watch?v=Kay-KNEIh38

[23] http://www.mediabistro.com/fishbowlny/files/2013/01/Nash947.jpg

[24] http://www.allaccess.com/net-news/archive/story/115585/cumulus-media-networks-to-distribute-touchdown-rad

[25] http://www.rttnews.com/2078870/cumulus-media-q4-loss-widens.aspx?type=bn

[26] http://www.dailyfinance.com/2013/03/13/what-does-wall-street-see-for-cumulus-medias-q4/

[27] http://seekingalpha.com/article/1284161-cumulus-media-s-ceo-discusses-q4-2012-results-earnings-call-transcript

[28] http://finance.yahoo.com/q?s=CMLS

[29] http://www.allaccess.com/net-news/archive/story/117089/cumulus-media-cfo-buys-25-000-shares-of-company-st

[30] http://www.nasdaq.com/article/cumulus-media-reports-cfo-buy-cm233440#.UWJ1OKvwL-s

[31] http://www.bloomberg.com/video/82123364-dickey-says-radio-industry-is-fragmented.html

[32] http://www.bloomberg.com/video/92870009-cumulus-planning-more-acquisitions-ceo-dickey-says.html

[33] http://www.businesswire.com/news/home/20110131007293/en/Cumulus-Media-Enters-Agreement-Acquire-Cumulus-Media

[34] http://www.forbes.com/2011/03/10/cumulus-media-to-acquire-citadel-broadcasting-marketnewsvideo.html

[35] http://nikigsbootcamp.com/wp-content/uploads/2011/11/sweetjack.jpg

[36] http://www.fnno.com/story/fast-lane/331-cumulus-media-has-highest-future-earnings-growth-broadcasting-industry-cmls-disca-cbs-auto-generated

[37] http://www.mysmartrend.com/news-briefs/news-watch/cumulus-media-has-highest-future-earnings-growth-broadcasting-industry-cmls–3

Clear Channel

Posted on April 3, 2013 by Lucy Bartozzi

by Lucy Bartozzi

http://www.clearchannel.com

200 E. Basse Road San Antonio, TX 78209

(210) 822 – 2828

About Clear Channel

Clear Channel Communications is a global media and entertainment company specializing in radio broadcasting and outdoor advertising. The company was founded in 1972 in San Antonio, TX with the purchase of a single FM radio station [1]. Currently, Clear Channel is privately owned by Bain Capital and Thomas H. Lee Partners [2]. Clear Channel operates as CC Media Holdings and consists of two main businesses: Clear Channel Outdoor Holdings and Clear Channel Media and Entertainment [1].

Clear Channel Media and Entertainment

Clear Channel Media and Entertainment (CCME) owns and operates 840 broadcast radio stations, reaching nearly 243 million monthly listeners. CCME services 150 U.S. markets, as well as 140 radio stations in Australia and New Zealand. This gives Clear Channel the largest reach of any radio or television outlet in the United States [3]. Operations of CCME include radio broadcasting, online and mobile services and products, program syndication, entertainment, traffic data distribution, and music research services [2]. CCME’s content is distributed on a variety of platforms including AM/FM stations, satellite radio, the Internet, in-vehicle navigation systems, iHeartRadio, and mobile devices. Properties of CCME include Premiere Networks, a national radio network with 90 radio programs in syndication, Katz Media Group, the leading media representation company in the United States, and Total Traffic Network, a service that delivers real-time local traffic flow and information to over 3,000 radio and 200 television affiliates [4].

iHeartRadio

iHeartRadio, launched in 2008 by Clear Channel, gives users access to over 1,500 live radio stations across the country and the ability to create custom stations. This service is available online and as a mobile application for smartphones and tablets, as well as in-vehicle systems and some gaming consoles. Users are able to stream a wide variety of content, including pop, country, talk, sports, and college radio. In just 13 months, iHeartRadio reached a milestone of 20 million registered users [5].

Key Executives [6]

Bob Pittman, Chief Executive Officer

Tom Casey, Chief Financial Officer and Executive Vice President

Robert H. Walls Jr., Executive Vice President and General Counsel

John Hogan, Chairman and CEO of Media and Entertainment

Financials [2]

Clear Channel estimates that nearly half of their revenue is derived from CCME, with the primary source of this revenue being the sale of commercials on their radio stations
Clear Channel’s total revenue for 2012 equaled $6,246,884
CCME’s total revenue for 2012 equaled $3,084,780, a $98 million increase from 2011
In 2012, CCME saw an increase in digital revenue, event sponsorship revenue, and traffic business revenue; however, direct expenses and SG&A expenses increased as well

New Developments at Clear Channel

On March 6, 2013 Clear Channel and eOne, the fastest-growing independent music company in the U.S., announced an agreement to share revenue from digital and terrestrial radio. Since its inception, eOne Music has charted more than 100 albums on Billboard’s Independent Chart. Clear Channel has recently entered into similar agreements with Big Machine Label Group, Glassnote Entertainment Group, DashGo, rpm Entertainment, Robbins Entertainment, and Naxos [7].

On March 11, 2013 Clear Channel introduced a new feature for their iHeartRadio service which will enable users to to add short local news, weather, and traffic updates into their custom station when listening online. Clear Channel hopes that these “Add-Ins” will provide users with a custom experience they can’t find anywhere else. Users will be able to receive localized information based on their current location or choose to receive updates from different markets across the country. Add-Ins will soon be available on the iPhone, Android, and other platforms [8].

On March 13, 2013 Clear Channel launched its second broadcast Electronic Dance Music (EDM) station, Evolution 93.5 Miami. The new format will feature non-stop dance music from artists such as Skrillex, David Guetta, Calvin Harris, and more. On March 25, the station began airing a two-hour long daily show titled “All Gone Pete Tong” featuring Pete Tong’s Essential New Tune of the Week and the hottest track from the global Top 100 chart on Beatport.com. The show broadcasts Monday through Friday from 7 – 9 p.m. EST and additionally features Tong’s mixes, on-air interviews, and guest-hosted radio shows. EDM fans across the country can listen to Evolution as well on iHeartRadio [9].

On March 28, 2013 Clear Channel announced the return of their iHeartRadio Music Festival, as well as the continuation of their partnership with Macy’s. For its third year, the event will be held at the MGM Grand in Las Vegas on September 20 and 21, 2013. Macy’s iHeartRadio Rising Star campaign will return as well, spotlighting America’s emerging musicians and giving one lucky artist or band the opportunity to perform at the iHeartRadio Music Festival. Clear Channel listeners, iHeartRadio fans, and Macy’s shoppers will have the opportunity to vote for their favorite performer online until May 12. Bon Jovi, Jason Aldean, Lil Wayne, Swedish House Mafia, Taylor Swift, Linkin Park, and Aerosmith are just a few of the names that have previously performed at the festival [10].

On April 1, 2013 Clear Channel Media and Entertainment announced a partnership with Big Machine Records to launch The Band Perry’s sophomore album, PIONEER. Following the release of the album on April 2, Clear Channel will launch a two-week on-air and online Artist Integration Program to introduce the new music to fans and listeners. On April 3, The Band Perry will perform for iHeartRadio Live at the iHeartRadio Theater. The goal of this campaign is to raise audience awareness by featuring custom content and spots on a multitude of Clear Channel’s different platforms [11].

Sources

[1] http://www.clearchannel.com/Corporate/Pages/about.aspx

[2] http://edgar.secdatabase.com/1389/73970813000003/filing-main.htm

[3] http://www.clearchannel.com/CCME/Pages/default.aspx

[4] http://www.clearchannel.com/CCME/Pages/Brands.aspx

[5] http://www.clearchannel.com/CCME/Pages/iHeart.aspx

[6] http://www.clearchannel.com/Corporate/Pages/our-team.aspx

[7] http://www.clearchannel.com/Pages/Clear-Channel-And-Entertainment-One-(Eone)-Announce-Agreement-To-Share-Digital-And-Broadcast-Radio-Revenue-With-Artists.aspx

[8] http://www.clearchannel.com/Pages/iHeartRadio-Introduces-Local-News,-Traffic-and-Weather-Add-Ins-to-its-Custom-Stations-.aspx

[9] http://www.clearchannel.com/Pages/Clear-Channel-Media-And-Entertainment-Brings-EDM-To-Miami%E2%80%99s-Airwaves-With-Evolution-93-5.aspx

[10] http://www.clearchannel.com/Pages/The-iHeartRadio-Music-Festival—The-Biggest-Live-Concert-Event-In-Radio-History—Returns-to-the-MGM-Grand-in-2013-.aspx

[11] http://www.clearchannel.com/Pages/Clear-Channel-Media-and-Entertainment-and-Big-Machine-Label-Group-to-Launch-Artist-Integration-Program-Around-The-Band-Perr.aspx

Principles & Practices

Website by the students of TRF235

Tag Archives: advertising

Time Warner Cable

iHeartMedia

Scripps Networks Interactive

Ion Media Networks

EXECUTIVES

ABOUT ION MEDIA NETWORKS

THE BEGINNING OF THE CAMPAIGN

INTRODUCING THE IONTHUSIASTS

THE ION LONGUE

Sources:

Cumulus

Cumulus Media, Inc.

1.0 Company Overview

Clear Channel