AMC Networks Inc.

Posted on March 25, 2015 by Hsin-Tzu Lin

by Hsin-Tzu (Teresa) Lin

ABOUT AMC NETWORKS INC. :

[1] AMC Networks Inc. Logo

Founded in 1980 (formally known as Rainbow Media Holdings LLC), AMC Networks Inc. [2] is an American Entertainment company currently standing as the one of the leading cable television broadcasters in the United States. AMC Networks owns and operates various popular channels within the cable television realm: AMC, The Independent Film Channel (IFC), Sundance TV, Women’s Entertainment TV (WE tv), and IFC Films [3]. The company also acquired Chellomedia in 2013 and through a joint venture with BBC Worldwide, now operates BBC America as well [3]. With an impressive programming portfolio, the cable network has aired many critical and popular series such as “Breaking Bad”, “Walking Dead”, and “Mad Men”, reaching more than 95 million households across the country [4].

HEADQUARTERS ADDRESS:

11 Penn Plaza,

New York, NY 10001,

United States

EXECUTIVES:

: Charles F. Dolan – Executive Chairman

: Joshua W. Sapan – President and Chief Executive Officer

: Edward A. Carroll – Chief Operating Officer

[5]

FINANCIALS AND STRATEGIES:

AMC Networks Inc. is a publicly traded company with a stock price of $77.27 as of April 16^th 2015 [3]. In its fourth quarter reports of 2014, AMC Networks exceeded expert estimates with the reported $1.15 earnings per share, vastly beating the prediction of $0.99 [6]. Its fourth quarter also showed promising numbers as the company’s revenue increased 40%[7] to $609.44 million [8], and also revealed a 24.3% jump in advertising revenues [7] to $255 million [9]. The company continues to expect the advertising sector to be the “growth driver” of the year. AMC Networks’ First Quarter 2015 report will be released May 4^th [10].

[17] Chellomedia’s Logo

It has been a fruitful and successful season for AMC Networks. With its strategic acquisition of Chellomedia[17] and partnership with BBC Worldwide, AMC Networks has greatly boosted its international revenue by 516% to $110.3 million [11], helping the company exceed estimated Q4 earnings. The company also seeks further development through striking a deal with Dish Network Corporation: to include AMC’s “Walking Dead” and “Mad Men” in Sling TV, its newly launched online video streaming service [12].

SPRING 2015 – THE SEASON OF NEW SERIES SPINOFFS:

AMC has carried numerous programs throughout its 30 years of existence. Amongst its most popular and successful are “Breaking Bad”, “Walking Dead”, and “Mad Men”. The former two of these series have sprung a spinoff off their original plot-lines, in hopes to further continue the series’ monumental success and keep their fan-base after losing “Breaking Bad” after the series has aired [26].

♦Breaking Bad and its spinoff “Better Call Saul”♦

Game changer underdog series “Breaking Bad” has finished its run, ending with 10.3 million viewers and a 5.2 rating within the adults the 18-49 demographic[13]. From its previous season (premiered in 2013), Walter White and Jesse Pinkman have brought in an astonishing 442% increase in viewership within just two years[13]. With this kind of result, AMC released a trial prequel spinoff series “Better Call Saul” earlier this year to extend the popular series further. “Saul” wrapped its first season with amazing results, raking in $2.53 million viewers overall, and very positive reviews (Click here to read why people think “Saul” might just be better than “Breaking Bad”). AMC Networks turned their best assets into best revenue generators, working to increase consumption of their most popular series even after it is gone.

♦“The Walking Dead” and its spinoff “Fear the Walking Dead”♦

One of AMC’s most popular cable television shows, “The Walking Dead”, delivered stellar numbers on its season finale. The Season 5 finale episode drew in an averaged rating of 8.2 within the adults 18-49 demographic[16] (and gathering 15.8 million viewers overall)[14]. This has been the highest rated season of “The Walking Dead” in this television season. Seeing the previous spinoff “Better Call Saul’s” success, “The Walking Dead” creator, Robert Kirkman, green-lighted another series spinoff “Fear the Walking Dead” to air in Summer 2015. The six-episode prequel mini-series[15] has already created significant anticipation within the “The Walking Dead” fan base, keeping the audience in the loop as they wait for Season 6 of “The Walking Dead” premiering in October[15].

: “Breaking Bad” spinoff – “Better Call Saul”

: “The Walking Dead” Prequel – “Fear the Walking Dead”

[18] [19]

This tactic of releasing spinoffs in order to maintain and possibly increase their audience base is currently working extremely well for AMC Networks Inc. “Better Call Saul” ended its first season strongly, and “Fear the Walking Dead” has generated great potential for its release in the summer. The success of “The Walking Dead” and “Breaking Bad” has been extremely beneficial to the company and creating a prequel/spinoff to the original series was a wise direction to lead to.

OTHER PROGRAM NEWS

AMC Networks also houses the growingly popular series “Orphan Black”, and the critically acclaimed, award winning “Mad Men”.

[21] Orphan Black Season 2 Cast

Just recently, Season 3 of “Orphan Black” ran across all 5 network channels of AMC Networks (AMC, SundanceTV, IFC, We TV, and BBC America) as a way to boost the series’ audience reach. AMC Networks COO Edward A. Carroll quotes…

“AMC Networks is a channel group known for high-quality storytelling and creating a premiere television event for ‘Orphan Black’ is a perfect opportunity to use our programming assets to help extend the reach of this quality series.”

[20]

[22] Mad Men in AMC Networks is not doing as well as it should

Although considered as one of the best dramas in cable, “Mad Men” does not pull as much of an audience as it should [23]. Unfortunately, “Mad Men” was ranked #21 amongst other cable dramas last year [23]. Despite this, AMC Networks announced that the ad spaces on “Mad Men’s” season finale on May 17^th have been completely sold out [24], still indicating the affluence and importance of the show.

WHAT IS NEXT?

As AMC Networks Inc. develops, CEO Josh Sapan quotes that international expansion “continues to be a focus” and allowing AMC Networks to “capitalize long term on international pay TV growth and drive long-term value for our shareholders.” [11] With the acquisition of Chellomedia and BBC America, AMC is now transitioning towards a more global distribution to show it’s content. AMC now is available in 120 countries as well as the Sundance Channel in 70 countries [25].

AMC Networks Inc. has a bright future ahead of its path. Not only is the company busy with its national expansion with series spinoffs, but it is also seeking to expand globally to distribute its contents to the world. Global distribution would only propel AMC Networks’ development forwards and bring the company to the next level of the cable television realm.

SOURCES –

[1] AMC Network Inc. Logo. Logosandbrands.com, Retrieved April 14th 2015.

[2] AMC Network Inc. Website. Amcnetwork.com, Retrieved April 14th 2015.

[3] AMC Network Company Profile. Yahoo Finance, Retrieved April 14th 2015.

[4] AMC Network Company Information. Hoovers, Retrieved April 14th 2015.

[5] AMC Network Executives. Amcnetwork.com, Retrieved April 14th 2015.

[6] “AMC Networks Now Covered by Piper Jaffray (AMCX). Dakota Financial News, Retrieved April 14th 2015.

[7] “AMC Networks’ Walking Dead Finale Sees Record Closing”. Zacks.com, Retrieved April 14th 2015.

[8] “AMC Networks Receives “Hold” Rating from Evercore Partners Inc. (AMCX)”. Mideasttime.com, Retrieved April 14th 2015.

[9] “AMC Networks Ad Revenue Jumps on Demand for Original Programming”. Wall Street Journal, Retrieved April 14th 2015.

[10] “AMC Networks to Report First Quarter 2015 Results”. Yahoo Finance, Retrieved April 14th 2015.

[11] “AMC Networks International Operations Help It To Beat Q4 Earnings Expectations”. Deadline.com, Retrieved April 14th 2015.

[12] “Dish Network Rolls Out Sling TV, Reaches Deal With AMC”. Wall Street Journal, Retrieved April 14th 2015.

[13] “‘Breaking Bad’ series finale ratings smash all records”. Entertainment Weekly, Retrieved April 16th 2015.

[14] “‘The Walking Dead’ Season 5 Finale is Highest Rated Finale in Series History, Garnering 15.8 Million Viewers”. TVByTheNumbers.com, Retrieved April 16th 2015.

[15] “Here’s the First Teaser for The Walking Dead Spin-Off”. Vanity Fair, Retrieved April 16th 2015.

[16] “AMC’s ‘Walking Dead’ Draws Record Finale Ratings”. Variety.com, Retrieved April 16th 2015.

[17] Chellomedia’s Logo. Chellomediapaytv.com, Retrieved April 16th 2015.

[18] Better Call Saul Photo. Amcnetworks.com, Retrieved April 17th 2015.

[19] Fear the Walking Dead Photo. fansided.com, Retrieved April 17th 2015.

[20] “‘Orphan Black’ Season Premiere to Air Across All AMC Networks Channels”. Variety.com, Retrieved April 17th 2015.

[21] Orphan Black Season 2 Cast photo. TVLine.com, Retrieved April 17th 2015.

[22] Mad Men Cast Photo. pop-break.com, Retrieved April 17th 2015.

[23] “‘Mad Men’ brings prestige, if not powerful ratings, to AMC”. CNN Money, Retrieved April 17th 2015.

[24] “AMC sells out advertising space for the ‘Mad Men’ series finale”. CNN Money, Retrieved April 17th 2015.

[25] “Investors Better Call AMC Networks, Company Is Far From Walking Dead”. Seeking Alpha, Retrieved April 17th 2015.

[26] “‘Better Call Saul’: More AMC spin-offs to join ‘Breaking Bad’ prequel” Entertainment Weekly, Retrieved April 17th 2015.

Disney-ABC

Posted on April 21, 2014 by eamoomey

By Nicolas Claro

Company History

On January 4^th, 1996, Michael Eisner and the Walt Disney Company came to an agreement with Capital Cities/ABC on a merger between the two companies, forming what is known today as Disney-ABC TV [1]. In addition to ABC Television Network, Disney-ABC owns multiple cable channels including Disney Channel Disney XD, ABC Family and ABC News, as well as a controlling stake in ESPN and an equity holding in A+E Networks.

Corporate

ANNE SWEENEY

Co-Chair, Disney Media Networks
President, Disney/ABC Television Group (2005-2015)

KEVIN BROCKMAN

Executive Vice President, Global Communications, Disney/ABC Television Group

REBECCA CAMPBELL

President, ABC Owned Television Stations Group

PAUL LEE

President, ABC Entertainment Group

GARY MARSH

President and Chief Creative Officer, Disney Channels Worldwide

BEN SHERWOOD

Co-President, Disney/ABC Television Group (2010-2015),

Co-Chair, Disney Media Networks
President, Disney/ABC Television Group (2015-)

[2]

Q1 EARNINGS

The Walt Disney Company’s first quarter of the fiscal year ended on December 28, 2013. Since the first quarter of the 2013 fiscal year, The Walt Disney Company’s media networks have seen a 4% increase in revenue, and an operating income increase of nearly 20%. However, the company saw a decrease of almost $85 million in income, due in large part to contractual rate increases to Modern Family and other long-tenured shows on the network. [3]

PROGRAMMING

The cast and crew of Modern Family winning their fourth Emmy in four years. [4]

Disney-ABC has done a very fine job of diversifying their TV offerings, broadcasting programs for every sort of viewer imaginable. The company’s two most popular offerings are 4-time Emmy winner Modern Family [4] and the company’s longest running primetime drama, Grey’s Anatomy. In addition, ABC has created successful shows based on existing third-party content, such as Once Upon a Time and Agents of S.H.I.E.L.D. ABC also airs a large number of successful unscripted shows, such as The Bachelor and Dancing With The Stars, talk-shows in both the morning (The View) and late-night (Jimmy Kimmel Live!), live college football and NBA games, and national news shows such as Good Morning America.

Scandal creator Shonda Rhimes (left) and the show’s star Kerry Washington. Rhimes also created ABC’s long running Grey’s Anatomy. [5]

ABC Family and the various Disney channels offer popular youth-oriented series such as Pretty Little Liars and the cartoon Gravity Falls.

In this upcoming season, Disney-ABC plans to bolster its broadcast schedule even further by collaborating with well-respected directors and producers such as David O. Russell and Bryan Singer on the shows The Club [6] and Black Box [7] , respectively.

Director Bryan Singer, well known for his directorial work on the X-Men films, is bringing a show to ABC this year. [8]

New King of Late Night?

ABC’s Jimmy Kimmel (Left) and NBC’s Jimmy Fallon (Right) [9]

On April 3, 2014, Late Night host David Letterman announced his retirement from the show, and from late-night TV in 2015. Stephen Colbert will replace him on CBS in the same time slot after his departure. [10] With David Letterman’s retirement in 2015, ABC’s Jimmy Kimmel will have the longest active run of late night hosting on broadcast TV with a consecutive 11 years on the air. Along with Colbert, Kimmel has already begun competing with the recently appointed Tonight Show host Jimmy Fallon on NBC, who’s show shares a timeslot with Kimmel.

So far, among the two shows, The Tonight Show has dominated in TV ratings. However, Jimmy Kimmel Live is fast on Fallon’s heels in the digital department. After a stellar debut week (avg 6.2 million viewers), Fallon’s ratings have come back to Earth (avg 1.8 million viewers in its 2^nd week). A report from Nielsen “SocialGuide”’s data, the number of impressions on Twitter for each show are comparable, and Kimmel’s uptick in viewership means that the margin between the two shows is closer than you think. These two talk-show stalwarts look to be set to compete for years to come, and ready to take on all challengers. [11].

The End of an Era?

Will this Aereo antennae (left) be the end of TV as we know it? [12]

On February 14, 2012, a company called Aereo created a product that was designed, in their eyes, to be the future of television. Aereo created a mini-sized antennae that effectively replaced a cable box and allowed consumers to “break free” from cable companies [12], all for a very affordable price of $80 a year. However, by doing so, Aereo was breaking many rules by not paying retransmission fees to the networks it carried, something that the cable providers are required to do. As such, cable companies swarmed Aereo with suits and injunctions within months, but to no avail [13]. 2+ years later, Aereo is still operational, and now more faces have joined in the fight against them, including ABC.

Aereo founder Chet Kanojia [15]

Specifically, their case against Aereo is set to go to Supreme Court review on April 22, 2014, and will likely be resolved by the end of June. If they lose, Aereo could be a signal of what is to come, with other startups following suit, and ducking retransmission fees. However, even if the networks win this battle, has the issue gained enough traction that it has gone down an irreversible path? Many Aereo subscribers, and consumers fed up with their cable companies, are embracing this new technology and championing it as the next big thing. Nobody knows just how this case will play out, but everyone knows that the repercussions will be massive [15][14]

Fighting Fire with Fire

: Scandal’s growing social media numbers

Scandal’s growing social media numbers [16]

Recent advances in broadcast technology have seriously hindered TV’s chances at remaining a top broadcast medium in the past few years. Internet piracy, DVR and online streaming services have all impeded on the television’s reign atop the media market. However, it seems that ABC has found a way to turn the tables and use these new developments to their advantage.

The best example of this is ABC’s smash hit show Scandal. ABC has allowed the show’s creator, Shonda Rhimes, to run rampant on social media, and she does so with finesse. Her constant involvement and interaction with fans throughout the show’s run has led to a massive social media following for everyone from Rhimes, to the show’s star, Kerry Washington, to Scandal’s official social media accounts.

To show just how astronomical its rise has been, take Scandal’s social media growth from its premiere up to the third season finale on April 17, 2014. At the former, Scandal had about 500,000 connections on Facebook, Twitter and Youtube combined. As of the third season finale, Scandal has 1.4 million views on its official Youtube page, 2.6 million followers on Twitter and almost 5 million fans on Facebook. As you would expect, Scandal’s most popular demographic is in the 18-49 range, who – not so coincidentally – are the demographic most present on social media networks [16].

Works Cited

[1] THE MEDIA BUSINESS;Disney and ABC Shareholders Solidly Approve Merger Deal

[2] All portraits courtesy of disneyabctv.com

[3] THE WALT DISNEY COMPANY REPORTS FIRST QUARTER EARNINGS FOR FISCAL 2014

[4] Modern Family – The Television Academy

[5] girltalkhq – ‘Scandal’ & ‘Greys Anatomy’ Creator Shonda Rhimes To Receive Diversity Award

[6] Deadline – Soapy Drama From David O. Russell & Susannah Grant Gets ABC Series Order

[7] Deadline – Bryan Singer To Direct & Exec Produce CBS Series ‘Battle Creek’ From Vince Gilligan & David Shore

[8] IMDB – Bryan Singer photos

[9] tvovermind – Jimmy Fallon and Jimmy Kimmel Agree To Play Nice

[10] CBSNews – Stephen Colbert to replace David Letterman on “Late Show”

[11] thewrap.com – Jimmy Fallon vs. Jimmy Kimmel: The New Late Night Fight, by the Numbers

[12] “Love is in the Aereo” – Aereo.com press release

[13] “Aereo Prevails” – Aereo.com press release

[14] USAToday – Supreme Court case could test future of broadcast TV

[15] Fortune – What happens if broadcasters lose the Aereo case?

[16] How Social Media Helps Drive ABC’s ‘Scandal’

Disney/ABC

Posted on October 30, 2013 by Emily Kelberman

By Emily Kelberman

Courtesy: Disney/ABC

Disney/ABC Television Group

500 Buena Vista Street

Burbank, CA 91521

818.560.1000

About the Company:

Disney/ABC Television Group operates many different platforms of media including entertainment properties, news properties, owned television stations, radio, and publishing businesses. The group includes ABC Entertainment Group, ABC News, ABC owned television properties, Disney Channels Worldwide, ABC Family, SOAPnet, as well as Disney/ABC Domestic Television and Disney Media Distribution. The company also has equity interest in A+E Networks. [1] [2] [3]

Key Executives [4]:

Courtesy: Walt Disney Company
Bob Iger

Robert Iger – Chairman & CEO of Walt Disney Company

Courtesy: Disney/ABC
Anne Sweeney

Anne Sweeney – President & Co-Chair of Disney/ABC Television Group

Courtesy: Disney/ABC
Paul Lee

Paul Lee – President, ABC Entertainment Group

Courtesy: Disney/ABC
Gary Marsh

Gary Marsh – President, Disney Channels Worldwide

For more information on Disney/ABC Television Group’s executives click here.

Financials:

Disney/ABC Television Group is apart of The Walt Disney Company’s (NYSE: DIS). This includes the company’s global entertainment, broadcast news, owned television stations, distribution, publishing, and radio business. The Walt Disney Company is also made up of other segments such as Parks and Resorts, Studio Entertainment, Consumer Products, and Interactive. [5]

The company delivered strong results for the third quarter of 2013. Disney’s Media Networks Group had an operating income of $2.3 billion, up 8% from the previous quarter. Revenue rose 5% to $5.35 billion. The broadcasting division of the group fell 20% due to higher programming costs, yet Disney/ABC’s cable networks operating income was up 12% to $2.09 billion. [6]

Disney & Technology [7]:

Disney Using Tablet

Courtesy: Disney Channel [9]

Disney/ABC Television Group is taking advantage of the new technology of tablets, beginning to use it for television purposes. Disney is going to launch the first nine episodes of a new series on mobile devices and tablets before it airs on television. The show, Sheriff Callie’s Wild West, features a cat in pink cowboy hat and it hopes to reach a pre-school audience on a screen like the iPad, in which many kids have been brought up viewing. The series will premiere on the Watch Disney Junior App and also on a related website in late November 2013. The television show will then premiere on Disney Channel and Disney Junior early next year. The application keeps audiences linked to their cable operators. Viewers must enter their subscriber information in order to watch the shows on the tablet. [8] [9]

Disney Teams with Roku

Courtesy: Variety [10]

Disney and ESPN have recently reached a new deal with Roku, which is a streaming player that can deliver movies instantly from Netflix onto a television using the Internet. Now, viewers can stream live cable-TV channels and programming to their televisions if they are currently subscribing to a participating TV provider. Participating viewers can watch their programming on the devices of their choice, creating a more enjoyable viewing experience. [10]

Disney/ABC & Marvel [11]:

Courtesy: Marvel [14]

Disney has recently acquired the rights to Marvel, which allows the Disney company to use that franchise in all aspects of the company. It has been recently announced that Disney and Netflix have partnered together to bring viewers a new miniseries based on Marvel’s most popular characters.

It will exclusively start streaming on Netflix in 2015 with four serialized programs, preparing the way for a miniseries programming event. The miniseries is produced by Marvel Television and ABC Television Studios and is said to have groundbreaking live-action storytelling. This is following a previous deal with Netflix, which allows members to watch a wide range of Disney, ABC TV, and Disney channel movies wherever Netflix is available. Marvel is a well-known and loved brand with movies such as ‘Iron Man’ and ‘The Avengers’, so pioneering the new miniseries idea will hopefully take this form of live-action television viewing to the next level.

The series is going to focus on “Daredevil”, “Jessica Jones”, “Iron Fist”, and “Luke Cage” separately, leading up to an Avenger-style combination of the characters to create the miniseries titled The Defenders. This new platform that Disney is testing will enable the viewers to watch when and where they want, granting flexibility. ABC’s new show, “Marvel: Agents of S.H.I.E.L.D” has become a hit for the network, giving the new miniseries a promising outlook [12] [13] [14]

ESPN & College Basketball:

kentucky-michigan-state-ncaa-ratings-espn

Courtesy: Variety [15]

Fall is the season of college basketball, which is great news for ESPN, a Disney owned company. The first game of the season, Kentucky vs. Michigan, attracted four million viewers. According to Nielson, this is the second largest audience ESPN has had for a non-conference game. The Duke vs. Kansas game averaged 2.98 million viewers, which is higher than in previous years. ESPN is also thriving in the local markets. The only cable show program that was higher in the men’s 18-49 bracket was “Sons of Anarchy” on FX. The interest in college basketball seems to be growing, which will benefit Disney and ESPN. [15] [16]

Programming:

The fall season is a showcase of all the new shows ABC and other networks have to offer for the new season. Disney/ABC has recently confirmed a new singing competition called “Rising Star”. It is a show that has been breaking records in Israel, with more than half of TV audiences tuning in to watch the show. ABC is planning on airing the show in Summer 2014 with a 10-episode run. With the summer slot, it will not compete with other singing competition shows, such as Fox’s “American Idol” and NBC’s “The Voice”, seeing as those occupy fall spots. This show differs from other singing competition shows because viewers vote for live performances during real time through an application. The show reinvents the reality singing competition model with the use of new technology. Disney/ABC acquired the show from Keshet DP, parent company of Dick Clark Productions. [17] [18]

Shows to be Canceled/Renewed:

For the current 2013 season, ABC has canceled “Lucky Seven” and “Back in the Game”. A few shows such as “Betrayal”, “The Neighbors”, “Once Upon a Time in Wonderland”, “Trophy Wife”, and “Super Fun Night” with Rebel Wilson are likely to be canceled by the end of the season in May, depending on ratings.

“Last Man Standing”, “Nashville”, and “The Goldbergs” are likely to get a renewal for next season, but it will depend on the ratings. “Castle”, “The Middle”, “Once Upon a Time”, “Grey’s Anatomy”, “Revenge”, “Modern Family”, “Scandal”, and “Agents of S.H.I.E.L.D.” are certain to be renewed by May. [19]

ABC is now getting ready for its midseason premiere with returning shows like “The Bachelor” and “Suburgatory”, as well as four new shows. The new shows include “Resurrection”, “Killer Women”, “Mixology”, and “Mind Games”. The TV group has decided to push “Revenge” back to the 10pm slot for the midseason. [20][21][22]

Sources:

[1] About Disney/ABC Television Group

[2] Disney/ABC Careers

[3] Business Week Snapshot of Disney/ABC

[4] About Disney/ABC Executives

[5] Disney Financials

[6] LA Times – Disney Financials

[7] NY Times – Disney & Tablet

[8] Sheriff Callie – IMDB

[9] Disney Channel – About Sheriff Callie

[10] Variety- Disney Lands a Deal With Roku

[11] Yahoo Finance – Disney Press Release Regarding Marvel

[12] Wired – Marvel and Netflix Deal

[13] Variety – Marvel and Netflix

[14] Marvel Website – Logo

[15] Variety – Ratings for ESPN 2013

[16] TV by the Numbers – ESPN Ratings

[17] Variety – ABC Greenlights New Singing Competition Show

[18] TV by the Numbers – ABC’s ‘Rising Star’

[19] TV by the Numbers – ABC’s Recent Ratings

[20] Variety – ABC Midseason Premieres

[21] Hollywood Reporter – ‘Revenge’ Pushed Back

[22] Huffington Post – ABC Full Midseason Schedule

Viacom Inc.

Posted on April 9, 2013 by namezaro

[1]

by Nicole Mezaros

Viacom Inc.
1515 Broadway
New York, New York 10036
(212) 258-6000
www.viacom.com
@Viacom

Sumner M. Redstone, Philippe Dauman, Thomas E. Dooley, Robert Bakish, and Brad Grey [2],[3],[4],[5],[6]

Top Executives

Sumner M. Redstone: Founder and Chairman of the Board of Directors since 2006. He also serves as the Executive Chairman of CBS [7].

Philippe Dauman: President and CEO since 2006 [8].

Thomas E. Dooley: Chief Operating Officer since 2010. He previously served as the CFO [8].

Robert Bakish: President and CEO of International Media Networks since 2011. He oversees all media networks outside of the United States [8].

Brad Grey: CEO of Paramount Pictures since 2005. Grey oversees the entire branch of Paramount Pictures [8].

A Brief History

In 1971, Viacom was formed by breaking off from CBS; it then merged with Warner Communications in 1983 [9]. It bought MTV in 1986, and then merged with Paramount Communications in a nearly $10 billion agreement [9]. The VIA stock became available to be bought and sold in the NYSE in 1999 [9]. CBS, the company it came from, and Viacom merged in a nearly $40 billion merger in 2000 [9]. In the next few years, it purchased BET, Noggin, Comedy Central, TNN, and more [9]. CBS and Viacom then split again in 2006 [25]. Also in 2006, Paramount acquired Dreamworks LLC, and MTV then partnered with Warner Music group [9]. Most recently, in 2011, Viacom International Media Networks was created [9].

General Overview

Viacom has many diverse assets, and therefore produces a lot of varied programming in different markets. It owns 205 television channels, spanning over 169 territories and in nearly 40 different languages [10]. It also owns Paramount Pictures, a big player in the film industry, and has released films of all types, such as The Adventures of Tintin and Paranormal Activity, that reach varied demographics.

Viacom’s TV Assets [11]

In the cable television market, Viacom has many different assets. These networks are very different and, again, reach many different audiences. Some of their major assets include MTV and Nickelodeon, which reach a younger audience, Comedy Central, Spike, and BET, which reach an adult audience, and TV Land, which reaches an older audience. Each network plays very different programming. VH1 and MTV play both shows about popular music and reality shows, with series such as Buckwild on MTV and Top 20 Video Countdown on VH1. Comedies of all different types are played on Comedy Central, such as The Colbert Report, and TV Land offers a lot of reruns of old shows and some original programming. Networks such as CMT (Country Music Television) and BET (Black Entertainment Television) also reach very specific demographics. Nickelodeon is the #1 cable network for seventeen years, showing the success of their networks [12].

Spongebob Squarepants, airing on Nickelodeon. [13]

Viacom has a lot of competitors, some of which include NBCUniversal, Time Warner, and Walt Disney [14]. Still, it is a leader in the cable television market .

Financials

During the first quarter of 2013, Viacom had a revenue of $3.314 billion, which includes $2.394 billion from media networks and $975 million from films [15]. This number is down 16% from last year’s first quarter [15]. However, media networks hardly decreased, down only 2%; this decrease is mainly due to filmed entertainment, which is down nearly 40% [15]. MTV is the network with the highest revenue, at around $548 million, with Nickelodeon following at around $357 million [10].

Viacom Inc. (VIAB) Interactive Chart Analysis - NASDAQ jpg

Viacom Inc. Stock 1 Year Chart [16]

The Viacom stock, sold as VIAB on NASDAQ, is currently priced at $65.49, hitting a high [16]. This is nearly $20 higher than CBS, around $7 higher than the Walt Disney Company, and nearly $25 higher than Comcast, all of which are Viacom’s competitors [17]. The VIAB stock increased greatly this year, raising from $46.75 a year ago to $65.49 today [16]. Viacom also sells class A stock, VIA, at $66; with this, stockholders have voting rights.

Recent News

Viacom has been in the news recently due to two major cases. First of all, Cablevision, a big cable TV service provider, is suing Viacom for bundling its channels and charging more for single channels [18]. This has, however, been its practice for a very long time. Also, last year, the case starting in 2007, in which Viacom sued Youtube, the popular website where users can upload their own videos, saying that some of its content infringed on Viacom”s copyright, was revived [19]. This case is still going on today.

Viacom also, however, has had a lot of positive things going on recently. VH1’s ratings in adult viewership raised 33% in 2012 [20]. It also has a lot of new shows airing this season, including Best Week Ever and The Jenny McCarthy Show, and new episodes of older shows, such as the very successful Mob Wives.

NEW SHOWS + NEW LOOK + @VH1 #plussed (:30)

Also, the 26th Annual Kids’ Choice Awards, airing on March 23rd, drew an audience of nearly 6 million viewers with just the premiere, boosting Nickelodeon’s ratings greatly [21]. The 2013 MTV Movie Awards are set to air April 13th, which should also boost MTV’s ratings.

2013 Movie Awards: VOTE NOW FOR MOVIE OF THE YEAR!

Digitally, Viacom is working on a lot of new technology in order to better the viewer experience. The new Star Trek into Darkness app allowed app users to get tickets to an early showing of the film [22]. Also, Spike TV, a cable channel, has created a new app for using while viewing Bellator MMA, a mixed martial arts fighting tournament. The app allows veiwers to interact with the show in a way not used with other second screen apps, using results from judging on the app in the live show [23].

Bellator MMA App by Spike TV [24]

1. Viacom Logo, from Viacom, Inc.

2. Sumner M. Redstone

3. Philippe Dauman

4. Thomas E. Dooley

5. Robert Bakish

6. Brad Grey

7. Board of Directors

8. Senior Management

9. Viacom: History

10. 1st Quarter ’13 Pulse Investor Newsletter

11. Viacom’s TV Assets

12. Nickelodeon

13. Nickelodeon Wins First Quarter of 2013

14. Viacom Inc. Competitors

15. 1st Quarter ’13 Earnings Press Release

16. Viacom Inc. Interactive Stock Chart

17. Yahoo Finance

18. Cablevision Sues Viacom in Battle Over Bundling of Channels

19. Judge revives Viacom copyright suit against YouTube

20. Viacom Primetime Ratings Soar 33%

21. Nickelodeon Marks Winning Week with 26th Annual Kids’ Choice Awards

22. “STAR TREK INTO DARKNESS” First of Its Kind App

23. Spike TV Launches Groundbreaking Co-Viewing App For Bellator MMA

24. Bellator MMA by Spike TV

25. CBS, Viacom Formally Split

Comcast/NBCUniversal

Posted on April 8, 2013 by Zachary Eisen

by Zach Eisen

NBCUniversal Media, LLC

30 Rockefeller Plaza

New York, NY 10112

212.664.4444

www.nbcuni.com

About the Company [1]:

A snapshot of what NBCU owns

NBCUniversal is a major media company owned by the Comcast Corporation. With headquarters in world-famous Rockefeller Center, NBCU owns and operates a variety of media outlets across many different platforms, including broadcast and cable television, film, and digital media. NBCU’s content is distributed around the world.

Television

NBCUniversal has a variety of holdings in both broadcast and cable television. It owns the NBC broadcast network and the Telemundo network, airing popular programs such as NBC Nightly News, Today, Saturday Night Live, and The Office. NBC also owns and operates TV stations in some of the largest markets in the country, including New York, Los Angeles, and Chicago. NBCU’s cable holdings include the NBC Sports Network, MSNBC, CNBC, USA, E!, Bravo, and The Weather Channel. NBC also owns the broadcast rights to the Olympics, NHL and NFL games, and many other major sporting events.

Film

NBCU owns Universal Pictures, one of the Big Six major film companies. Universal is famous for movies such as E.T.: The Extra-Terrestrial, Jurassic Park, Jaws, and the Bourne series [2]. The company also owns Focus Features, which is Universal’s art, foreign, and independent film division. NBCU also owns Universal Parks and Resorts, with full ownership of the parks in Los Angeles and Orlando and part ownership of locations in Japan and Singapore.

Online

NBCUniversal owns multiple digital and online companies, including NBC.com, Fandango, and iVillage. It also is part of a joint-venture in Hulu, the online streaming service.

Key Executives [3]:

Stephen B. Burke – CEO, NBCUniversal

Stephen B. Burke

Stuart J. Epstein – Executive VP and CFO, NBCUniversal

Stuart J. Epstein

Robert Greenblatt – Chairman, NBC Entertainment

Robert Greenblatt

Brian Roberts – Chairman and CEO, Comcast Corporation

Brian Roberts

For more information on NBCUniversal’s executives, click here.

Competitors:

In the broadcast television market, NBC’s main competitors are the other Big Four major networks, which are ABC, CBS, and FOX. However, cable viewership is quickly growing, which means NBC also competes with basically every television station for viewers and advertising dollars.

Ownership History [4]:

NBCUniversal was officially founded in 2004, when NBC and Universal merged into one company. At the time of the merger, Vivendi and GE shared ownership of the company. In 2009, GE and Comcast announced plans to create a joint venture out of NBCUniversal’s companies and Comcast’s cable holdings. The plan was finalized in early 2011, with Comcast taking a majority stake in the company. In early 2013, Comcast announced it would buy GE’s 49% minority stake, a $16.7 billion deal which allowed them to assume 100% ownership of NBCUniversal [5].

Financial Information [6]:

2012 was a successful year for NBCUniversal across the board. The company earned $23.8 billion in total revenue, an increase of nearly $2.7 billion, or 12.7%, from 2011. NBCU’s revenue in all four of its divisions (Broadcast Networks, Cable Networks, Film, and Theme Parks) saw increases in 2012.

The largest gains were made in the Broadcast Television division, which jumped 27.4% from the previous year. The broadcast numbers were aided by the network’s airing of the 2012 London Olympics and Super Bowl XLVI. Excluding these events from the numbers, the Broadcast division’s revenue still saw a 4.8% increase, driven by political advertisements on its Owned & Operated stations. The increased revenue from the political ads also helps explain the Broadcast division’s 7.9% increase in the fourth quarter of 2012 from the same period in 2011.

NBCU’s Cable Networks division accounted for the company’s smallest increases in 2012 (3.3%), but generated the most revenue for the company ($8.8 billion). The NHL lockout hurt ratings for the NBC Sports Network during that time, which boasts NHL coverage as its key selling point. However, ratings for that network reached all-time highs once hockey returned [15]. Advertising revenue decreased by 1.5% in the fourth quarter for NBC’s cable networks.

News:

• GOODBYE, GE

On March 19, Comcast completed its purchase of GE’s 49% stake in NBCUniversal [7]. The $16.7 billion deal also included the sale of GE’s headquarters at the famous 30 Rockefeller Plaza building to Comcast. The deal brings to an end GE’s involvement with NBC, which began in 1919 when the company helped found the Radio Corporation of America, which started the National Broadcasting Company in 1926 [8]. Since then, NBC has been owned by GE, RCA, Westinghouse, Vivendi and now Comcast. Watch Wall Street Journal Live’s analysis of the deal below (video courtesy of YouTube).

• ADIÓS, NBC

For the first time ever, NBC fell out of the top four networks during a sweeps period conducted by Nielsen [9]. Univision, the Spanish language network, moved ahead of NBC as the fourth most watched network among adults ages 18-49 during the month of February. NBC struggled during that month, as its new show Do No Harm was cancelled after just two episodes, and the new comedy 1600 Penn struggled as well [10].

• THE TONIGHT SHOW WITH…

Jimmy Fallon (right) will take over for Jay Leno (left) as host of “The Tonight Show”.

…Jimmy Fallon? NBC announced in April that the Late Night host will replace Jay Leno on The Tonight Show starting in 2014 [11]. Leno, who has hosted The Tonight Show for 22 years, took over for Johnny Carson in 1992. Leno was replaced by Conan O’Brien in 2009 [12], but returned only seven months later [13] after a feud with the network over a time for his new show. It is being rumored that Saturday Night Live head writer and “Weekend Update” host Seth Meyers will replace Fallon as host of Late Night.

• USA! USA!

NBCU’s USA Network earned the best primetime ratings for a cable network in the first quarter of 2013, its eighth year in a row earning that honor [14]. Popular programs such as Suits and WWE Raw helped the network win the quarter, defeating rivals with popular programs such as AMC and its hit The Walking Dead. USA averaged over 3 million viewers during the primetime slots. Another NBCU network, Bravo, also improved, making the top ten networks among viewers ages 25-54.

• NHL COVERAGE SCORES FOR NBC SPORTS NETWORK

The NBC Sports Network is posting record numbers this year for its NHL coverage [15]. The network, formerly Comcast’s Versus, is averaging 448,000 viewers per game, up from its previous high of 348,000 viewers. The numbers may have gotten a boost because of the lockout that cut the season down to 48 games. National games airing on NBC’s broadcast network are also doing better, averaging 1.7 million viewers,just ahead of its previous tally of 1.6 million.

• ‘THE VOICE’ NEARS IN ON ‘IDOL’

The popular singing competition show, The Voice, has returned to NBC’s lineup, and has outperformed FOX’s American Idol so far [16]. Although Idol‘s first two episodes earned stronger ratings than The Voice‘s, NBC’s program is gaining momentum, while FOX’s is seeing its lowest ratings in the 12-year history of the show. The show’s performance in the ratings for the remainder of the season may tell whether it will replace Idol as America’s favorite singing show.

• USING THE SECOND SCREEN

In March, USA allowed fans of its series Psych to choose the ending of the show’s 100th episode [17]. The vote was part of a new online and mobile feature called USA Sync, an attempt by the network to use new media to add interactivity to its programming [18]. The program allows fans to post about the shows, connect with each other, and play interactive games. On the mobile platform, the service is available as an app that gives users access to more content through other applications.

• A DELICIOUS PREMIERE

The much anticipated new series Hannibal premiered on NBC on April 4. The series, about fictional evil genius Hannibal Lecter, serves as a prequel to the 1991 classic film The Silence of the Lambs. The show earned praise from Internet critics, with some calling it “riveting” [19], and others saying it was “beautifully shot and…surprisingly thoughtful” [20]. Watch a promo for Hannibal below (video courtesy of YouTube).

• FOR E!, OLDE IS NEW

Jeff Olde

In March, E! named former VH1 executive Jeff Olde head of its programming [21]. Olde will be in charge of the development of E!’s shows, including Keeping Up With The Kardashians, The Soup, and Chelsea Lately. Olde will begin his new job this summer.

Sources:

[1]: http://www.nbcuni.com/corporate/about-us/

[2]: http://www.boxofficemojo.com/studio/chart/?studio=universal.htm

[3]: http://www.nbcuni.com/corporate/management/

[4]:http://www.nbcuni.com/corporate/about-us/history/

[5]: http://mediadecoder.blogs.nytimes.com/2013/02/12/comcast-buying-g-e-s-stake-in-nbcuniversal-for-16-7-billion/

[6]: http://www.marketwatch.com/story/comcast-reports-4th-quarter-and-year-end-2012-results-2013-02-12

[7]: http://www.deadline.com/2013/03/comcast-completes-acquisition-nbcuniversal/

[8]: http://www.gereports.com/its-a-wrap/

[9]: http://tvbythenumbers.zap2it.com/2013/02/27/univision-sets-milestone-as-no-4-network-in-february-sweeps-ahead-of-nbc-in-key-demos/171192/

[10]: http://www.deadline.com/2013/02/nbc-sweeps-ratings-lastloses-to-univision/

[11]: http://www.thedailybeast.com/articles/2013/04/02/source-jimmy-fallon-to-take-reins-of-tonight-show-from-jay-leno.html