AMC Networks

Posted on December 1, 2014 by htfergus

by Griffin Morrow

AMC Networks and their cable family. [31]

Profile

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

Key Executives

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

Charles F. Dolan – Executive Chairman

Edward A. Carroll – Chief Operating Officer

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

Programming Reach

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

Economics

Three year economic landscape since going public [33].

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

Life After Mad and Bad

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

Zombies Devouring American Audiences

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

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

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

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

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

Lightning Doesn’t Strike Twice…

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

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

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

there is importantnt text here that you can’t see

…or Does It?

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

DirecTV and AMC Clash on Contract

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

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

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

International Distribution Taking Center Stage

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

Source:

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

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

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

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

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

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

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

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

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

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

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

[12] The Walking Dead Season 4 Finale Breaks Finale Record With 15.7 Million Viewers AMC blog RT: 11/24/14

[13] ‘The Walking Dead’ Renewed for Season 6 Variety RT: 11/24/14

[14] Walking Dead breaking US cable TV record BBC News RT: 11/24/14

[15] ‘The Walking Dead’ Season 5 Premiere Hits Series High Ratings, Delivering 11 Million Adults 18.49 & 17.3 Million Viewers TVbytheNumbers RT: 11/24/14

[16] ‘Walking Dead’ Renewed For Season 6 By AMC Deadline Hollywood RT: 11/24/14

[17] ‘Rubicon’ is Cancelled by AMC Entertainment Weekly RT: 12/1/14

[18] ‘Low Winter Sun’ Cancelled by AMC Variety RT: 11/24/14

[19] ‘Better Call Saul,’ a prequel spinoff series from ‘Breaking Bad,’ greenlit by AMC NY Daily News RT: 11/24/14

[20] ‘Better Call Saul’ Renewed for Second Season, Delayed Until 2015 Rollingstone RT: 11/24/14

[21] ‘The Walking Dead’ companion series gets pilot greenlight Entertainment Weekly RT: 11/24/14

[22] AMC Uses ‘Walking Dead’ Fans as Weapon in DirecTV Talks Bloomberg RT: 11/24/14

[23] AMC Networks Warns Verizon FiOS Customers That Channels Could Go Dark Deadline Hollywood RT: 11/24/14

[24] AMC Networks, Suddenlink in License Fee Dispute Broadcasting and Cable RT: 11/24/14

[25] Rogers and AMC Networks End Carriage Dispute With Multi-Year Canadian Deal The Hollywood Reporter RT: 11/24/14

[26] AT&T Statement on AMC Networks Programming Agreement AT&T press release RT: 11/24/14

[27] Dish Network Says It Will Drop AMC Networks Due To Price, Not VOOM Deadline Hollywood RT: 11/24/14

[28] AMC TV channel launches in Spain telecompaper RT: 11/24/14

[29] AMC Networks International Announces Major Expansion of Sundance Channel Global in Latin America With First-Ever Launches in Six Territories AMC International press release RT: 11/24/14

[30] AMC to Buy Liberty Global’s Chellomedia for $1.04 Billion Bloomberg RT: 11/24/14

[31] AMC Networks logo AMC Networks Website RT: 12/1/14

[32] Walking Dead season 1 poster IMDb image search RT: 12/1/14

[33] AMCX stock three year chart GoogleFinance RT: 12/1/14

[34] Zombie eating an arm Walking Dead fan page RT: 12/1/14

[35] AMC programming averages TV by the Numbers RT: 12/1/14

[36] AMC Networks warning page AMC Networks website RT: 12/1/14

[37] Executive Officers AMC Networks Websites RT: 12/1/14

NewsCorp/21st Century – Fox

Aside

by Lina Ortega

21st Century Fox

[Image courtesy of: new.pentagram.com]

www.21cf.com

Contact information

21st Century Fox 1211 Avenue of the Americas 44th floor New York, NY 10036-8701

Key Executives

Rupert Murdoch: Chairman & Chief Executive Officer [Image courtesy of: thenation.com]

Chase Carrey: President and Chief Operating Officer [Image Courtesy of: stockspinoffs.com]

James Murdoch: Co-Chief Operating Officer [Image Courtesy of: mikeangryman.com]

About 21st Century Fox

What was once News Corporation since 1953 [I], is now comprised by “News Corp” and “21st Century Fox.” News Corp consists of a publishing group that includes several newspapers like Wall Street Journal, New York Post and Times of London. 21st Century Fox is a broadcasting and film company that includes the “Fox News channel”, “20th Century movie and television studios”, “Fox sports”, “FX”, “National Geographic” and “FOX broadcast network”. [II] This separation was intended to ensure that both companies were conducted under more a centered management, which makes both companies more valuable.

21st Century Fox is a global media company and was founded in June 28, 2013 [III]. It acquires market from four principal operating segments: 1- Cable network programming, which it’s mostly production and licensing content through cable, telecommunications providers, and broadcast satellite. 2- Television, which operates the company’s 28 full-power broadcast stations. 3- Film Entertainment, the operator of the company’s numerous film and television production studios. 4- Direct Broadcast Satellite Television, which provides programming to international markets. The company also holds a 39% of BSkyB, the British entertainment and communications provider. 21st Century Fox makes its revenue principally on affiliate subscriptions, broadcast and advertising fees, content licensing and retransmission revenues to maintain the top line [IV]. Fox Broadcasting Company ended the year 2012 at number one in the key adult demographic for the eight consecutive year in America [V].

Financials

The Cable Network Programming segment surpassed $12 billion in revenue for the first time in its history, up 13% over their prior year. 2014 21st Century Fox Annual Report:

What’s Happening Now?

In cable programming, FX Networks has currently 25 successful shows on air [VI].

Image courtesy of: The Christian Post

American Horror Story is now on the 7th episode of its 4th season “Freak Show” and it is one of the most watched TV series of the FX Networks. The show presents an anthology of different narratives for each new season [VII]. With an 8.4 out of 10 by IMDB, the show went from 2.82 million viewers on its first season to 4.00 million viewers now [VIII].

In television, FOX has a great variety of very recognized shows that can range mostly in animation, comedy, and thriller.

Image courtesy of: forbes.com

One of the FOX newest TV shows premiered recently on September 22, 2014 with 8.21 million viewers [IX]. Gotham explores the beginning tales of Commissioner Gordon. While in the show he is still a detective, he has yet to meet Batman and the villains who made Gotham City so popular [X]. Gotham received two nominations in the TV divisions for the “American Society of Cinematographers 29th annual Outstanding Achievement Awards” . Additionally, the pilot was recognized in the category for a TV movie, miniseries or pilot [XI].

20th Century Fox is one of the most recognized film industries in the world. This year 2014, Fox released 13 feature films with a result of $1,539,266,539 in total gross [XII]. This includes: X-Men: Days of Future Past, Dawn of the Planet of the Apes, How to Train your Dragon 2, Gone Girl and Rio 2, as in order of total ranking.

Image courtesy of: msmagazine.com

Gone Girl was released in October 3, 2014 and it has a domestic total of $160,757,000 as of today November 30th, plus a $173,400,000 of foreign totals while the production budget was only 61 million. Currently in its 5th week, it is ranked number 8 [XIII]. Gone Girl has received many awards including the “Hollywood Film Award” at the 2014 Hollywood Film Festival [XIV].

Penguins of Madagascar is an animated comedy distributed by 20th Century Fox and is its newest film on the market, released on November 26, 2014. This film takes the peculiar penguin characters of the previous Madagascar movies, whom must stop a villain doctor from destroying the world [XV]. As of its first weekend it is currently number two with a total gross of $36 million [XVI].

This has been one of the best years for Fox and they are not planning on backing down. On December 5, 2014 The Pyramid will be released. The Pyramid is about an archaeological team ventures to unlock the mysteries of a lost pyramid and instead find themselves hunted by an insidious creature [XVII].

As Europe’s leading entertainment company, Sky has 20 million consumers across five countries: Italy, Germany, Austria, the UK, and Ireland [XVIII].

Image courtesy of: denofgeek.com

Penny Dreadful is a psychological thriller that brings together literature’s most terrifying classical characters, like Dr. Frankenstein and Dorian Gray [XIX]. It aired on May 11, 2014, and it won “Most Exciting New Series” at the Critics Choice Television Awards [XX]. Penny Dreadful is coming back with its new season for a 2015 debut on the channel [XXI].

In Other News

Image courtesy of: The Independent

Exodus: Gods and Kings has received criticism due to its lack of ethnic diversity, to which Rupert Murdoch decided to respond by tweeting the following: “Moses film attacked on Twitter for all white cast. Since when are Egyptians not white? All I know are.” [XXII]. Murdoch has not received too many good responses about this issue.

Image courtesy of: realscreen.com

On October 10, 2014, 21st Century Fox and Apollo made an agreement to create a leading company multi-platform content provider each of them owning 50 percent. Now Endemol, Shine Group, and Core Media will be a sole group in over 30 markets including digital, gaming and distribution operations [XXIII].

Up until 2018, Fox has 48 movies, including many sequels as well as prequels that are yet to come [XXIV].

[I] News Corporation Limited History From 2002. Retrieved November 27, 2014 [II] NewsCorp Divides Into Two Companies From June 28, 2013. Retrieved November 17, 2014 [III] 21st Century Fox Company Details Retrieved November 27, 2014 [IV] 21st Century Fox Analysis From November 24, 2014. Retrieved November 27, 2014. [V] Fox Broadcasting Company Retrieved November 29, 2014. [VI] 21st Century Fox Retrieved November 27, 2014. [VII] American Horror Story Retrieved November 29, 2014 [VIII] American Horror Story Numbers From October 13, 2014. Retrieved November 29, 2014 [IX] Monday Final Ratings From September 23, 2014. Retrieved November 29, 2014 [X] Gotham TV Show From September 22, 2014. Retrieved November 30, 2014 [XI] ASC Nominations for TV Cinematography From November 19, 2014. Retrieved November 30, 2014. [XII] 20th Century Fox Box Office Mojo From November 23, 2014. Retrieved November 30, 2014. [XIII] Box Office Mojo Retrieved November 30, 2014. [XIV] Gone Girl Tops Hollywood Film Awards From November 14, 2014. Retrieved November 30, 2014. [XV] The Penguins of Madagascar Retrieved December 1, 2014 [XVI] Penguins of Madagascar Box Office Mojo Retrieved December 1, 2014. [XVII] The Pyramid Retrieved November 30, 2014. [XVIII] Sky Retrieved November 29, 2014. [XIX] Penny Dreadful TV Series Retrieved November 30, 2014. [XX] Penny Dreadful Awards Retrieved November 30, 2014. [XXI] Penny Dreadful First Look From November 21, 2014. Retrieved November 30, 2014. [XXII] Rupert Murdoch’s Response From November 30, 2014. Retrieved November 30, 2014. [XXIII] 21st Century Fox and Apollo From October 10, 2014. Retrieved November 29, 2014. [XXIV] New Movie Releases Retrieved November 30, 2014.

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)

Discovery Communications

Posted on October 5, 2014 by bngermai

by Brendan Germain

Discovery Logo [1]

One Discovery Place Silver Spring, MD 20910 — 240.662.2000

“Discovery is dedicated to satisfying curiosity, engaging and entertaining viewers with high-quality content on worldwide television networks…” [2]

COMPANY PROFILE

As the number one pay-TV programmer and non-fiction media company, Discovery Communications paves the way for cross platform content appealing to 2.7 billion subscribers across 150 cable networks in over 220 countries. Discovery’s commitment to innovation and segmenting audiences has earned it its place as a leader in targeted media programming headed by Discovery Channel, operating also the Animal Planet, Hub Network and a joint venture with the OWN network among others. The company’s online and media services work in conjunction with its cable programming and have made Discovery a true multi-media, synergistic company.

KEY EXECUTIVES

David Zaslav- President and CEO [4]

Andrew Warren-Senior Executive VP and CFO [5]

Marjorie Kaplan- Group President Discovery Channel [6]

HISTORY

John Hendricks, a West Virginia bred, University of Alabama grad, founded the Cable Educational Network in Maryland back in 1982. Discovery Communications would soon grow from the launch of the Discovery Channel in1985. By 1988 the cable programmer had amassed over 32 million subscribers and by 1991, after acquiring The Learning

Discovery Logo-1988 [9]

Channel (TLC) and launching Discovery in Europe, the company changed its name to Discovery Communications. Over the next 10 years, the company would see considerable international growth in Asian, African and Middle Eastern markets and soon launched a $10 million news site distributing original news content on its Discovery homepage [7]. In 2004 Hendricks stepped down as CEO passing it off to current position holder David Zaslav and this past May, Hendricks retired as Chairman, leaving the company he had built over the past 35 years with a drive towards the environment, education and technological advances. [8]

FINANCES

This past quarter, coming in early November, saw a 14% increase for Discovery Communications (DISCA) on the NASDAQ year-over-year (YOY), with revenue at $1.57 billion [10].

DISCA’s Yearly Stock Price as of December 1, 2014 CLICK TO VIEW CURRENT CHART [12]

The publicly traded conglomerate has been on a rise in stock price, ending around $34 dollars recently with around 148 million shares outstanding. Since 2010, DISCA has been on a mass buyback movement to repurchase in excess of 25% of its stocks to consolidate its outstanding shares, giving the company more control over its numerous domestic and international platforms [11]. The company is segmented into three areas of revenue–Domestic, International, and Education, the first two being programming and education being products and services. Revenue for the domestic programming has seen minimal drops of 1% YOY as advertising budgets for the company have raised 3%, while the international segment as seen rises as high as 34% in revenue, in direct relation with Discovery’s acquisition of Eurosport [13]. Discovery is projected to reach a total revenue between $6.3 billion and $6.35 billion for this 2014 fiscal year.

ACQUISITION OF EUROSPORT

Staking its claim as the #1 Pay-TV programmer for educational, niche content across its over 200 networks domestically and internationally, Discovery has taken a turn towards broadcast and sports media sphere with its spring

Eurosport Logo [15]

acquisition of Eurosport. Eurosport, the premier sports media group in Europe, is valued at $1.2 billion and reaches over 133 million homes. TF1, the French media conglomerate had previously owned 80% of the company before Discovery pushed to expedite the deal which had been set for 2015, though TF1 will holds its stake in the sports media group until the end of the year. [14].

[Click here to view Eurosport’s promo stinger]

Discovery acquired 51% of the company, with TF1 being the only other owner holding the remaining 49%. DISCA is looking to capitalize on the fragmented nature of the sports broadcast industry over in Europe, a step in a different direction from their pay-TV and cable roots, in hopes of building up Eurosport to the status of Europe’s version of ESPN [16].

"Eurosport is a perfect strategic fit for growing market share, strengthening relationships with advertisers and affiliates, and bringing ‘must have’ content to passionate viewers across the globe...” [17] 
      -Discovery CEO David Zaslav-

There are talks already about the possibility of Discovery buying out TF1, giving DISCA full ownership of Eurosport, in turn adding six new pay-TV brands to Discovery’s arsenal.

DISCOVERY CHANNEL

The network that started it all, Discovery Channel (formerly The Discovery Channel), excels at non-fiction programming reaching over 100 million homes in the U.S. and over three times that amount internationally. Launched in 1985, Discovery Channel produces science, nature, adventure and history geared television, among other genres, and has revved up its live-streamed programming over the past few years [18]. In June 2013, Discovery aired a live program special with adventure enthusiast Nik Wallenda traversing the Grand Canyon on a tightrope [19]. The record breaking broadcast event amassed over 13 million viewers, Discovery’s highest-rated live event, with an additional 1.3 million trending Tweets about the stunt, awarding DISCA an Interactive Emmy for Multi-platform storytelling. Discovery Channel followed Wallenda again earlier this month in his tightrope walk between two Chicago skyscrapers at a 15-degree angle, aptly titled SKYSCRAPER LIVE WITH NIK WALLENDA.

Play to view highlights of Nik Wallenda's SKYSCRAPER LIVE walk [21]

Though not drawing the magnitude of coverage as his Grand Canyon walk, this live event in addition to others showcase Discovery’s risky intent to air content to attract an audience, stunts so daring that someone could die [20]. Understanding this, Wallenda carried a $20 million public liability insurance claim, should anything catastrophic have happened. The tightrope walk was a success and coming this May, Discovery Channel intends to air live footage of expert climber Joby Ogwyn’s Mount

SURVIVAL LIVE Logo [24]

Everest jump in a winged suit, titled EVEREST JUMP LIVE, hooking up eight cameras to his suit to get full 360 degree coverage [22]. In addition, the network is continuing on its multi-platform successes with a new, interactive program called SURVIVAL LIVE, a 42-day survivalist event pitting 8 strangers against each other in the remote wilderness [23].The cross-platform media gives viewers the ability to track survivalists biometric, medical statistics during the 24 hour live-streamed event as well as the option to donate needed supplies or help online. Moving to attract a growing, interactive audience, Discovery is prompting new growth in cross-media programming and their push for high adrenaline, live-streamed events sets them apart from other cable networks.

DISCOVERY FAMILY CHANNEL

Since being renamed this past October, Discovery Family, formerly The Hub Network, DISCA’s children geared daytime programming network, has broadened its program offerings in a strengthened partnership between Discovery Communications and Hasbro,

Hasbro, Inc. Logo [25]

Inc. The Hasbro Studios have published upfronts intending to move into primetime television timeslots [26]. With Discovery owning 60% in this joint venture, Discovery Family is projected to have over 70 million U.S. homes tuning in to programs and the two look to move into nightly family targeted programming. The two corporations will both capitalize on producing branded content, marketable to advertisers, and accessible for both children and families [27].

UP AND COMING

Discovery has recently paired up with Sony Entertainment Network to bring channels from DISCA to Play Station Vue, Sony’s cloud-based, internet television service [28]. Sony’s subsidary, Sony Network Entertainment International (SNEI), will offer the subscription based service to current users of a PS3 or PS4 come early 2015, totally over 35 million users. The deal will bring Discovery’s 13 U.S. networks to users, in addition to next-gen services like Discovery Digitial Networks [29].

Theorized PlayStation Vue Screen [30]

This is new territory for Discovery, a cloud streaming service, and whether or not users will be willing to pay for the subscription fees is up for debate. Prices per month have yet to be set, though the service brings DISCA’s historically cable programming to an internet based provider follows the path Discovery Communications is walking in becoming a more cross-media driven media group and high-level television programmer.

SOURCES

[1]Discovery Logo corporate.discovery.com RT: 11/18/14

[2] Corporate Mission corporate.discovery.com RT: 11/18/14

[3] Company Profile Information biz.yahoo.com RT:11/18/14

[4] David Zaslav Image corporate.discovery.com RT: 11/18/14

[5] Andrew Warren Image corporate.discovery.com RT: 11/18/14

[6] Marjorie Kaplan Image corporate.discovery.com RT: 11/18/14

[7] Discovery History referenceforbusiness.com RT: 11/18/14

[8] Hendricks Leaves Discovery variety.com RT: 11/18/14

[9] Discovery Logo 1988 logos.wikia.com RT: 11/24/14

[10] DISCA Annual Finances finance.yahoo.com RT: 11/24/14

[11] DISCA Quarterly Report corporate.discovery.com RT: 11/24/14

[12] DISCA Yearly Stock Chart finance.yahoo.com RT: 11/27/14

[13] Discovery Segments/Projections zacks.com RT: 12/1/14

[14] Discovery Acquires Eurosport nytimes.com RT: 11/28/14

[15] Eurosport Logo eurosport.com RT: 11/28/14

[16] Discovery Moves to Broadcast corporate.discovery.com RT: 11/28/14

[17] David Zaslav Quote corporate.discovery.com RT: 11/29/14

[18] Discovery Channel Profile corporate.discovery.com RT:11/29/14

[19] Discovery Live Streams press.discovery.com RT: 11/29/14

[20] Risk of Live Events nytimes.com RT: 11/29/14

[21] SKYSCRAPER LIVE Highlights Footage youtube.com RT: 11/29/14

[22] Everest Jump Live deadline.com RT: 11/29/14

[23] SURVIVAL LIVE press.discovery.com RT: 11/29/14

[24] SURVIVAL LIVE Logo adage.com RT: 11/29/14

[25] Hasbro, Inc Logo hasbro.com RT: 11/30/14

[26] Hasbro, Inc Partnership investor.hasbro.com RT: 11/30/14

[27] Discovery Family Deal corporate.discovery.com RT: 11/30/14

[28] PlayStation Vue Contract polygon.com RT: 12/1/14

[29] Discovery/Vue Offerings corporate.discovery.com RT:12/1/14

[30] PlayStation Vue Screen polygon.com RT: 12/1/14

Continue reading →

Verizon

Posted on October 5, 2014 by lashaw01

by Lauren Shaw

Verizon Communications

Company Logo, click to go to website.

140 West Street

New York, NY 10007

www.verizon.com

Executives [1]

Courtesy of verizon.com

Lowell C. McAdam, Chairman & CEO

Courtesy of verizon.com

Roy H. Chestnutt, Executive Vice President & Chief Strategy Officer

Courtesy of verizon.com

James J. Gerace, Chief Communications Officer

Courtesy of verizon.com

Roger Gurnani, Executive Vice President & Chief Information Officer

About [2]

Courtesy of wikimedia.org

Verizon Communications is a major media conglomerate that provides broadband and other communication services to consumer, business, government, and wholesale customers. The company is known for its wireless services, providing a reliable wireless network for its 98 million customers nationwide.

: Courtesy of fool.com

Verizon FIOS is one of the company’s major departments that provides a telephone service, digital TV, and high speed Internet over a single fiber optic cable. Fios customers gain access to over 575 digital TV channels, with over 160 channels being High Definition. FiOS also offers over 18,000 movies on demand.

History [3]

Launching in 2005, Verizon FiOS was originally just available to 9,000 customers in Keller, Texas. With the addition of DVR in 2006 and High Definition in 2008, Verizon grew to eventually becoming a leading television distribution company, with around five million customers and availability in 18 million homes in 16 states, as of May 2013. Their top markets are New York, Washington, Philadelphia, Los Angeles, and Boston, with New York having 1,305,440 subscribers and Boston having 343,535 subscribers. (As of 2013)

Courtesy of creoleindc.typepad.com

Financials

On October 21, the company released their third quarter earnings report. Although more customers were added, Verizon Communications saw a decline in profit. Third quarter net income was $3,794 million, which is a drop from the $5,578 million in 2013’s third quarter. [4] More specifically, the companies Wireline segment had a total revenue of $9.576 million, which is a 0.8% decrease from last year. [6] However, FiOS video subscriber base went up 7% from last year to 5.533 million (adding a net 114,000 subscribers). In addition, broadband connections increased 1.7% from last year to 9.146 million.[5] Although the company is falling short of profit expectations, it seems as though they can detest their revenue drive to FiOS, as FiOS represented 74% of the company’s total revenue during the first quarter of 2014, and is continuing to do so. [7]

FiOS TV Interactive Media Guide

Courtesy of verizon.com

There are many changes being brought to FiOS that may explain its success for the company. Verizon has revamped its FiOS TV Interactive Media Guide for TV and mobile, improving the personalization, management abilities, and user interface for customers.[8] Customers will now receive search results and recommendations for shows and movies based on their viewing behavior. Rotten Tomatoes Movie Reviews and FiOS TV star ratings will also appear when customers are viewing specific content via their guide, with cast and crew biographies as well. [8] The new changes also come with a “My FiOS TV” feature that connects users to social media. [9]

Courtesy of verizon.com

Customers can see what’s being discussed about their favorite shows via Twitter.[9] These new changes are one of many incentives from the company to try and meet the demands of consumers and their reliance on media. These changes offer a comparison to one of Verizon’s competitors Comcast, and its recently upgraded mobile user interface with similar user-friendly personalization updates.[9]

TV Everywhere

Courtesy of bidnessetc.com

The company is not only updating its guide to keep up with consumer’s growing reliance on media and need for entertainment on multiple platforms. In October, the company renewed its carriage agreement with Viacom. [10] These new agreements seem to meet the demands of people’s need for ‘TV Everywhere.” Soon, Verizon customers will be able to stream Viacom programming in and out of their homes. [10] Viacom content such as music and entertainment programming will be available 24/7 on multiple platforms and will include 25 Viacom networks such as MTV, Nickelodeon and Comedy Central. [11] This agreement not only allows customers to gain access to live and on-demand content through the FiOS mobile App, but gain access to Video On-Demand content through various Viacom TV Everywhere websites and Apps as well. [11]As the industry is moving toward more content on mobile, the company is trying to keep up and avoid loosing subscribers by providing opportunities such as these to provide more TV Everywhere options.

Courtesy of digitalhollywood.com

“People want to watch TV anywhere, not just in their living rooms. Disruption in the TV marketplace is happening and Verizon wants to reach agreements with content providers like Viacom that reflect that reality and give people what they want. We are thrilled to extend our long-term distribution partnership with Viacom Media Networks, delivering some of the most recognizable and popular kids, music and entertainment programming available to our customers anytime, anywhere on a variety of platforms from TV to wireless. “-Ben Grad, Verizon’s executive director of content strategy & acquisition [12]

FiOS Quantum Gateway

In addition to consumer’s need for entertainment in a variety of platforms, consumers also want their content as fast as possible. After complaints of slow download speeds over the summer, specifically when streaming Netflix, it seems as though the company is approaching these problems with the launch of FiOS Quantum Gateway.[13] (released in November 2014)

For customers with multiple devices in their homes who frequently stream videos, the Quantum Gateway, which was released at the beginning of the month, should improve speeds and cut down download time for its subscribers. [13] This goes along with Verizon’s “speed match” campaign, which promises to match all customers upload speeds to its download speeds by the end of the year for free. [14] These new features will hopefully improve user experiences for all FiOS customers and create an advantage over its competitors, as other distribution companies are attempting to improve speeds as well.[14]

Stopping the Cord-Cutters from Cutting this Holiday Season

Courtesy of bidnessetc.com

With more and more ways to view content online, Verizon needs to promote competitive advantages to prevent the cord-cutters from actually cutting, and thus loosing customers for Verizon. Just in time for the holiday season, from now until January 17th, customers can purchase FiOS Triple Play package (high-speed internet, phone, and TV) for only $59.99 a month, and get a full year of Netflix free. [15] Not only does this provide a popular package for a much cheaper price, but includes Showtime, HBO, and free Netflix, all of which are usually the reason for cord-cutters to begin with.[16] This bold move of including competitive companies in a much cheaper package should attract millennials who would have previously been turned off to paying for an expensive cable package.[16] 2015’s first quarter earnings report will provide an answer as to whether this unique package paid off for Verizon as a whole.

Looking Towards The Future

As 2014 comes to an end, consumers should prepare for more TV Everywhere opportunities from Verizon, as well as more user-interface and personalization changes to FiOS. [17] Verizon customers should look out for the possibility of a wireless internet pay TV service and FiOS Custom Channels, both which would be released sometime in 2015. [17]

Sources

[1] “Executive Bios” .verizon.com RT: 11/28/14

[2] “Verizon At a Glance” .verizon.com RT:11/28/14

[3] “History & Timeline” .verizon.com RT: 11/28/14

[4] “Verizon Misses on Q3 Earnings, Revenues” .zacks.com October 21, 2014 RT: 11/29/14

[5] “Verizon adds 1.5 Million Customers, But Misses on Profit Expectations” .dailytech.com October 22, 2014 RT: 11/29/14

[6] “Verizon Reports Strong Customer Additions” .prnewswire.com RT: 11/29/14

[7] “FiOS Drives Revenue Up, But Earnings Fall Short of Expectations” .forbes.com April 24, 2014 RT: 11/29/14

[8] “Verizon Revamps FiOS TV Guide” .bidnessetc.com October 1, 2014 RT: 11/28/14

[9] “Verizon Freshens Up FiOS TV Guide” .multichannelnews.com September 30, 2014 RT: 11/28/14

[10] “Verizon FiOS and Viacom Renew Carriage Agreement” .marketwatch.com October 1, 2014 RT: 11/29/14

[11] “Verizon FiOS, Viacom Strike New Carriage Deal” .broadcastingcable.com October 1, 2014 RT: 11/29/14

[12] “Verizon, Viacom Strike New Carriage Deal” .multichannelnews.com October 1, 2014 RT: 11/29/14

[13] “Verizon FiOS Launches Souped-Up Broadband Gateway” .multichannelnews.com October 3, 2014 RT: 11/29/14

[14] “Verizon’s Pitch: Upload Speeds to Match Download” .wallstreetjournal.com August 25, 2014 RT: 11/29/14

[15] “Verizon Trial: 1 Year Free Netflix to FiOS Triple Play Users” dslreports.com October 27, 2014 RT: 11/29/14

[16] “Verizon FiOS Bows Cord-Cutter Plan with Netflix, HBO, Showtime” .homemediamagazine.com November 19, 2014 RT: 11/29/14

[17] “Verizon CEO Says He’s Weighing A Wireless Internet Pay TV Service” .deadline.com March 4, 2014 RT: 11/29/14

Time Warner Cable

Posted on October 5, 2014 by htfergus

by Dan Watson

(15)

Key Executives (13)

Robert D. Marcus
Chairman and CEO

Arthur T. Minson, Jr.
EVP and CFO

Dinesh C. Jain
COO

Ellen M. East
EVP and CCO

Contact (14)

One Time Warner Center

New York, NY 10019-8016

212-484-8000

http://www.timewarnercable.com/en/residential.html

History

In 1992, American Television and Communications (ATC) and Warner Cable merged to become Time Warner Cable (1). Not long after, in 1996, they released the first cable-delivered high speed internet, called Roadrunner (1). Following this was the release of digital cable and video on demand in 1999, digital phone service in 2003, and then finally the “Triple Play” service in 2005 (1). In 2007, Time Warner Cable (TWC) went public, and two years later, in 2009, they separated themselves from their parent company, Time Warner Inc (1).

About The Company

Time Warner Cable is a cable provider that offers high speed internet, digital phone services, and cable services to over 25 states, including Texas, North Carolina, and New York State (1). The company is subscription based, meaning customers pay a certain price per month to receive the content. Cable plans range anywhere from $20 to $50 per month, internet prices range from $35 to $65 per month, and phone service range from $10 to $20 per month (2). Subscribers can also choose the three service deal, which gives you video, phone, and internet for anywhere from $110 to $130 per month (2). As of September 30, 201, the end of their 3rd quarter, TWC has a total of 15.1 million subscribers receiving one or more of their services (1). 10.8 million of them are video subscribers, 11.5 million are internet subscribers, and 4.9 million of them are phone subscribers (1). In New York, North Carolina, and Texas, TWC provides local, all-news channels (1). TWC currently employs 50,000 people all over the US, including a special program that hires military veterans in areas such as technology, construction, and marketing sales (3). In 2013, TWC CEO Glenn Britt retired. TWC announced that the company’s COO at the time, Robert D. Marcus, would proceed him. He is currently the Chairman and CEO of TWC (1).

(17)

Financials

Time Warner Cable is a publically owned company, and is traded on the New York Stock Exchange under the symbol TWC (1). Currently, TWC on the New York Stock Exchange is $148.54 USD (12). Because TWC is a publically owned company, it is obligated to let the public know how it is doing, in the form of quarterly reports. The latest quarterly report, the end of the third quarter, was released on September 30th, 2014 (4). In the fourth quarter alone, TWC had a revenue of $5.7 billion, which was up 3.6 percent, when compared to last year’s third quarter (4). This year to date (September 30th), the company has a total revenue of $17.1 billion, which is a 2.9% increase when compared to the same figure from last year (4). The report boasts the “best third-quarter customer relationship performance in six years” (4). Services in particular, their video service continues to provide the most money out of all the other services. Their video service provided $2.5 billion, while the internet service provided $1.6 billion, and the phone service provided $476 million (4). One notable difference is that both the revenue of the video and phone services for the third quarter went down from last year, with the video bringing in $2.6 billion, and the phone bringing in $498 million (4).

The Comcast, Time Warner Cable Merger

(16)

Back on February 13th, Comcast publicly announced that they wanted to by Time Warner Cable for $45.2 billion dollars (5). Since then, both the FCC and The United States Department of Justice have been investigating and evaluating the deal to see if they will either approve, or decline the deal. On October 8th and 9th, both company’s shareholders approved of the acquisition (6). For TWC, more than 99% of votes from shareholders voted in favor of the deal, showing the support of the deal from the shareholders (6). Immediately after the announcement of the deal, there was a wave of backlash and criticism against the deal. One of the main concerns of the deal is the fact that if the deal were to go through, the ensuing company would have control of roughly 30% of the pay TV market (6). This company would have 33 million subscribers, leagues above any other cable provider (5). Because of this, people are worried that the result of this deal would have far much too control on the cable, phone, and internet markets. With such control, this company would have would have more power to raise prices (5). This would be because they would be the only cable provider in a lot of areas, and customers would have no other option than to pay whatever amount for that cable provider. Some are also worried that this deal could affect competition and innovation. The company could have so much control over the market, that it might deter newcomers from trying to enter the market (5). Because of this, there would be inherently less competition, and much less innovation, as all of the new content and technology a new company could bring to the market would be much less inclined to jump in (5).

(18)

One of the biggest issues of the deal is the possibility of net neutrality being hurt following the completion of the deal (7). Net neutrality is the idea, and law, that every source on the internet is treated equally, and has the same access as any other source (7). This applies heavily to online streaming sites like Netflix and Hulu. Their whole, or at least majority of their business is based on their ability to stream content to subscribers via the internet. With the completion of the deal, some are worried that the cable company would have so much control, that they could create internet “fast lanes”, and “slow lanes” (7). In other words, Comcast/TWC could make Netflix or Hulu pay an extra amount of money for their products to be streamed faster and in higher quality through the internet that the cable company provides its customers (7). President Barack Obama recently released a statement, saying that net neutrality is essential, and that any deal hindering that would hurt the economy (8). He also called for the FCC to create new rules regulating net neutrality (8). Both parties of the deal have since stated that the deal is still proceeding (9).

(19)

One of the biggest oppositions to the deal happened in Lexington, Kentucky. Arguing over poor customer service, the city was unable to reach a new franchise agreement with TWC, and planed on denying the transfer of ownership, and looking for other cable providers (10). This would have proved a tough task, though, because TWC owns all of the existing cable infrastructure in the city (10). On November 20th, however, the city agreed to a 10 year franchise agreement with TWC, ending negotiations and backlash of the pending deal (11).

Sources

(1) http://www.timewarnercable.com/en/about-us/company-overview.html

History of Time Warner Cable, DR: 11/26/14

(2) http://www.timewarnercable.com/en/plans-packages/cable-internet.html#3services

Time Warner Cable, Packages and Plans, DR 11/26/14

(3) http://jobs.timewarnercable.com/content/military/

Time Warner Cable, Jobs and Military, DR 11/26/14

(4) http://ir.timewarnercable.com/files/2014%20Earnings/3Q14/aQ3-2014-TWC-Earnings-Release-FINAL_v001_a0q10j.pdf

Time Warner Cable Third Quarterly Report, DR 11/21/14

(5) http://www.washingtonpost.com/business/economy/comcast-time-warner-agree-to-merge-in-45-billion-deal/2014/02/13/7b778d60-9469-11e3-84e1-27626c5ef5fb_story.html

Washington Post, Comcast and TWC agree to deal, DR 11/19/14

(6) http://online.wsj.com/articles/time-warner-cable-shareholders-approve-merger-deal-with-comcast-1412869575

The Wall Street Journal, Shareholders Approve, DR 11/20/14

(7) http://www.nytimes.com/2014/11/15/opinion/why-the-fcc-should-heed-president-obama-on-internet-regulations.html?_r=0

The New York Times, Net Neutrality Concerns, DR 11/23/14

(8) http://www.usatoday.com/story/news/nation/2014/11/10/obama-internet-net-neutrality/18793429/

USA Today, Obama’s Statement on Net Neutrality, DR 11/25/14

(9) http://www.huffingtonpost.com/2014/11/13/comcast-time-warner-full-steam-ahead_n_6149068.html

Huffpost, Deals moving Forward, DR 11/24/14

(10) http://www.kentucky.com/2014/10/07/3468773_citys-action-could-kill-time-warner.html?rh=1

Kentucky.com, Lexington Opposes Deal, DR 11/19/14

(11) http://wuky.org/post/lexington-signs-franchise-agreement-time-warner-cable

WUKY.org, Lexington Agrees to Deal, DR 11/27/14

(12) http://www.reuters.com/finance/stocks/companyProfile?symbol=TWC.N

Reuters, TWC Stock Information, DR 11/30/14

(13) http://www.timewarnercable.com/content/twc/en/about-us/leadership/overview.html

Time Warner Cable Leadership, DR 11/28/14

Time Warner Cable Leadership Photos, DR 11/28/14

(14) http://www.timewarner.com/contact-us

Time Warner Cable Contacts, DR 11/28/14

(15) http://logos.wikia.com/wiki/File:Time_Warner_Cable_2010.png

Time Warner Cable Logo, DR 11/30/14

(16) http://g.foolcdn.com/editorial/images/144432/comcast_twc-via-comcast-release_large.png

Comcast, Time Warner Cable Image, DR 11/30/14

(17) http://static.squarespace.com/static/514c6ec7e4b0f1fab133877d/514e614fe4b0e29595febc04/514e6178e4b045db9416cc37/1364091272056/?format=1000w

TWC Triple Play Image, DR 11/30/14

(18) http://cdn.arstechnica.net/wp-content/uploads/2013/09/7362006206_ea7fa6b6f8_z.jpg

Net Neutrality Under Attack Image, DR 11/30/14

(19) http://images.bidnessetc.com/img/f1e5284674fd1e360873c29337ebe2d7-president-obama-supports-net-neutrality-addresses-fcc.jpg

Obama On Net Neutrality

DirectTV

Posted on October 5, 2014 by Nicholas Sabatino

by Nick Sabatino

Photo courtesy of www.interpretllc.com [1]

Contact Information

Headquarters: 2230 E. Imperial Hwy, El Segundo, CA 90245 Phone: (310) 964-5000 [2] Facebook: DirecTV Twitter: @DirecTV

Executives

President and CEO: Michael White Executive Vice President and Chief Financial Officer: Patrick T. Doyle Executive Vice President and President, DirecTV Latin America: Bruce B. Churchill [3]

President and CEO, Michael White
Photo courtesy of investor.directv.com [4]

About

DirecTV was founded in 1990 and was one of the country’s first satellite-cable providers. DirecTV offers quality television with a variety of channels, including many high definition (HD) channels. There are hundreds of channels on DirecTV and the number of channels a customer receives depends on the package that the customer buys. However, not only does DirecTV provide cable, they also provide On-Demand services, HD DVR products(recording devices) called Genie [5], and “TV Everywhere” applications so that you can enjoy your television shows or movies when you want, where you want, and on what device you choose.

DirecTV’s Genie: HD DVR
Photo courtesy of www.directv.com [6]

DirecTV is a satellite-cable provider, this means that instead of just having a cable box attached to your television inside of your home, DirecTV puts a satellite dish on top of your home. Appearance is mostly the only major difference. However, DirecTV has benefits over other cable providers. DirecTV is rated #1 in overall customer satisfaction, and has been ahead of cable for the past 14 years [7].

Financials

DirecTV offers its services in the United States and in Latin America. The company currently has over 37 million subscribers in these areas, and their revenues totaled about $30 billion dollars in 2013 [8]. DirecTV is a multi-billion dollar company traded publicly on the NASDAQ with the ticker symbol DTV. Their stock currently has a volume of 899,268 and it is being traded at $87.71 per share [9]. Over the past four years DirecTV has seen a substantial increase in subscribers. With that, came an increase in their stock value. Since 2010, DirecTV’s stock has rose about 60 points and it keeps steadily going up over time. These numbers are very good for DirecTV and proves that they are becoming more successful as a company and more people are choosing their product over others.

DirecTV stock over the last four years Photo courtesy of investor.directv.com

DirecTV’s stock price over the last four years
Photo courtesy of investor.directv.com [10]

AT&T Merger

In May of 2014, DirecTV proposed a deal to AT&T to join companies and create a merger. With this merger, AT&T could improve the services that DirecTV already has. AT&T would focus on improving the Internet quality in many areas of the country that DirecTV does business [11]. With improved Internet, customers would be able to get better access to On-Demand and Pay-Per-View options that DirecTV offers. It would also better allow for the DirecTV app to be on products such as iPads and iPhones that are contracted under AT&T service, so that DirecTV can be at your fingertips wherever, and whenever you want it to be. This is the concept of “TV Everywhere.”

Over the past few months, the merger has been overseen by the Federal Communications Commission (FCC) and the Justice Department over the legality of this merger. On November 20, 2014, DirecTV’s CEO, Michael White, said the deal should be approved next year. With this approved merger it is uncertain if DirecTV’s sales will go up. In a perfect market, the merger would cause an increase in the stock price of both AT&T and DirecTV. However, if one of the two company’s stock price starts to fall, being that both companies are in a merger, investors will sell their stock from the attached company and then both companies will have a decrease in stock price. This results in a loss of money for both AT&T and DirecTV [12].

AT&T and DirecTV Merger
Photo courtesy of www.accessnorthga.com [13]

International Expansion

In 2006, DirecTV gained 100% ownership of DirecTV Latin America [14]. With the expansion into new countries, DirecTV has asserted itself as more of a global brand. As of 2013, the number of subscribers that are from Latin America is about 18 million, which is an increase of about 9 million subscribers compared to the year 2010 [15]. With the success of expansion into Latin America, it is probable that DirecTV will expand into other markets as well and become even larger of a company. In the end of the day, it is all about getting your product to as many people as possible and making as much money as possible.

The DirecTV satellite dish portrayed as being on top of the Latin American countries where DirecTV is in. Photo courtesy of www.gigaom.com

DirecTV has expanded to Latin America.
Photo courtesy of www.gigaom.com [16]

Raycom Media

Back in September of 2014 there was a dispute between DirecTV and a broadcasting company called Raycom Media [17]. The dispute was over the broadcasting of Raycom Media’s channels through the means of DirecTV. The two companies did not come to a financial agreement by September 1st (the deadline) so for customers that had DirecTV they were unable to watch any Raycom Media channels for several days. Raycom Media is in 37 markets and 18 states, and they provide many different forms of television [18]. A major concern among people who had DirecTV and were in a Raycom Media market was the fact that they would not be able to watch some of the opening day NFL games on September 7th. Raycom and DirecTV made sure that this did not happen because of the potential financial loss that could have come from it. Agreements were made, and on September 7th customers were reinstated with their television channels.

Original Programming and What to Expect in the Future

Over the past few years DirecTV has entered into the world that Netflix and Hulu are also in. It’s the world of original programming, and it is the key to gaining more viewership, and in the case of DirecTV, more subscribers [19]. DirecTV’s goal is to have shows that viewers cannot get anywhere else. If this happens, then people may substitute the cable provider that they already have for DirecTV. DirecTV has their own channel called “Audience” that is only on DirecTV. On this channel is their newest show called Kingdom, and it came out in Fall of 2014. It stars Nick Jonas as a mixed martial arts fighter [20]. There is also a crime drama starring Thandie Newton called Rogue.

Click photo for Kingdom trailer courtesy of Youtube. Photo courtesy of www.directv.com

Click photo for Kingdom trailer, courtesy of www.youtube.com
Photo courtesy of www.directv.com [21]

There is even a special channel called “DogTV,” which is a channel specifically made for your dog to watch.

DogTV Trailer Photo courtesy of www.directv.com Commercial courtesy of www.youtube.com

Click photo for DogTV Commercial
Photo courtesy of www.directv.com
Commercial courtesy of www.youtube.com [22]

DirecTV also prides itself on its sports channels and packages. They have many packages, but their most popular one is the NFL Sunday Ticket. Every Fall if you are a customer that has NFL Sunday Ticket you can watch every NFL game that airs every Sunday [23]. New this Fall too is the introduction of NFL Fantasy Zone, a show which is all geared towards Fantasy Football. Expect growth in this department over the next few years.

There is also an ongoing dispute currently taking place between DirecTV and AMC. AMC is threatening to take away all of their channels (AMC, We TV, IFC, and Sundance) because they are claiming that DirecTV violated the existing deal that they had with them [24]. AMC is running campaigns during its show The Walking Dead, and DirecTV has an online petition[25]. DirecTV says that AMC is issuing a false alarm and nothing will happen. This is a developing story that needs to be kept a close eye on in the coming months.

In the near future, expect DirecTV to come up with more original content, renewal of their successful shows, expansion into new countries, and new and better deals to lure new customers to their services.

Sources

[1] DirecTV Logo. Interpret. RT: 4/30/14

[2] DirecTV Headquarters. eCorporateOffices.com. RT: 4/30/14

[3] Corporate Governance: Elected Officers. Investor.directv.com. RT: 4/30/14

[4] Michael White. Investor.directv.com. RT: 4/30/14

[5] DirecTV Genie. DirecTV.com. RT: 4/30/14

[6] DirecTV Genie. DirecTV.com. RT: 4/30/14

[7] DirecTV vs. Cable. DirecTV.com. RT: 4/30/14

[8] DirecTV 2013 Annual Report. Investor.directv.com. RT: 4/30/14

[9] Stock Quote and Chart. Investor.directv.com. RT: 4/30/14

[10] Stock Quote and Chart. Investor.directv.com. RT: 4/30/14

[11] “DirecTV CEO Expects Feds to OK AT&T Merger”. BostonHerald.com. RT: 4/30/14

[12] “3 Reasons DirecTV’s Stock Could Fall”. Fool.com. RT: 4/30/14

[13] “AT&T Agrees to Buy DirecTV in $45.8B Deal”. AccessNorthGa.com. RT: 4/30/14

[14] Company Profile. DirecTV.com. RT: 4/30/14

[15] DirecTV 2013 Annual Report. Investor.directv.com. RT: 4/30/14

[16] “DirecTV Adds Another 600,000 Latin American Users in Q1”. Gigaom.com. RT: 4/30/14

[17] “Raycom Media Restores 43 Local Stations to DirecTV Homes”. News.directv.com. RT: 4/30/14

[18] “Raycom Media Reaches Agreement In Principle With DirecTV”. RaycomMedia.com. RT: 4/30/14

[19] “DirecTV tries to join Netflix, Hulu With New Original Series Kingdom: Can They Compete?”. SheKnows.com. RT: 4/30/14

[20] “Stepping Into the Cage with Kingdom‘s Jonathan Tucker”. News.directv.com. RT: 4/30/14

[21] Kingdom Poster. DirecTV.com. RT: 4/30/14

[22] “DogTV Commercial – Been There Done That – Part 2”. Youtube.com. RT: 4/30/14

[23] “How DirecTV is Capitalizing On Growth of Fantasy Football”. Forbes.com. RT: 4/30/14

[24] “AMC Sounds Alarm About DirecTV Tussle During ‘Walking Dead’ Episode”. Variety.com. RT: 4/30/14

[25] “Don’t Let AMC Scare You!”. directvpromise.com. RT: 4/30/14

Cablevision

Link

by Steven Spohr

Summary

Source – Cablevision.com

Founded in 1973, Cablevision Systems Corporation is a leading telecommunications company that primarily offers television, phone, and Internet services to millions in the NY metropolitan area. Initially serving a mere 1,500 customers on Long Island, Cablevision has since expanded to offer WiFi, a leading local newspaper, and business communications solutions to its over 3 million subscribers. Former properties include Madison Square Garden and Rainbow Media Holdings. [1]

Source – Optimum.com

Cablevision’s television, phone, Internet, WiFi, and business solutions all operate under the ‘Optimum’ brand name. These include (but are not limited to) –

Optimum TV – exclusive home of News 12 Networks, a series of local news channels
Optimum Voice
Optimum Online
Optimum WiFi
Optimum Lightpath – a “leading provider of integrated business communications solutions that meets the needs of larger companies” [1]

Source – www.newsday.com/

Cablevision also owns Newsday Media Group, which runs two local papers. Newsday is a Pulitzer Prize-winning daily newspaper that has been in circulation since 1940. Over 70% of Long Island adults read Newsday, and its articles and reporting have won numerous awards and made it the top paper on Long Island. To provide the most local news possible, Newsday works closely with MSG Varsity (part of the News 12 Networks) to provide detailed coverage of local high school and college sports. amNewYork offers a quick read of city news and events. In addition to the papers, NMG owns Star Community Publishing, which producers weekly shopper publications in Long Island and Queens. It is the largest publisher of its kind in the Northeastern United States. [2]

Leadership

The Dolan family founded Cablevision and continues to lead the company today. Key personnel include [3] –

Charles Dolan – Founder and Chairman / Source – Sean Smith, The Boston College Chronicle

James Dolan – Chief Executive Officer / Source – Al Iannazzone, Newsday.com

Kristin Dolan – Chief Operating Officer / Source – Variety.com

Brian Sweeney – President / Source – POST Online Media

Gregg Seibert – Vice Chairman and Chief Financial Officer / Source – Business Wire

Hank Ratner – Vice Chairman / Source – The Madison Square Garden Company

Financials

A detailed map of Cablevision’s stock pricing in 2014. / Source – Yahoo! Finance

2014 has seen Cablevision’s stock (CVC) prices gradually increase throughout the year. Starting the year at $17.22/share, CVC stock stands at $20.32/share as of November 29th. February 3rd saw the year’s low of $15.85. Prices peaked in late July, mid-September, and late November. [4]

The following financial information is from Cablevision’s Third Quarter 2014 Results.

Net revenue increased 3.7% to $1.62 billion.
Cable advertising revenue grew 6.8%
Average Monthly Cable Revenue per Customer increased 5.7% to $154.50/customer/month. [5]

These figures represent a continued loss of subscribers for Cablevision across the board. Between satellite TV providers, rival phone companies, and the public’s shift to watching TV online, Cablevision’s audience is becoming fragmented. The company chose to increase its subscription rates in response to decreasing numbers, which is represented by the net revenue and AMCR/C increases. [6]

Recent News

The latter half of 2014 has been a busy one, with notable hirings, financial news, legal troubles, and more.

August 4th

August 4th saw Cablevision’s announcement that it has hired David Dibble as Chief Technology Officer, a newly-created role. Dibble is formerly of Yahoo!, and his hiring is part of Cablevision’s efforts to “become the premier connectivity provider in the market, delivering a peerless customer experience”. [7]

November 7th

A New York Times article revealed a major legal proceeding against Cablevision. The National Labor Relations Board has charged Cablevision CEO James Dolan with “illegally threatening to deny company technicians in Brooklyn a pay increase unless they voted to quit their union”. The NLRB also charged Cablevision itself with “illegally [undermining] the union’s representation of those workers by sponsoring a nonbinding poll to determine whether they wanted to leave their union”, while some workers reported they were being ‘spied on’ during the vote. Federal law states that such a vote can only be conducted by the labor board, not the company. CEO Dolan fired back, calling the NLRB “a tool of Big Labor” and questioning the validity of its findings. The case is ongoing, and Cablevision has stated it will appeal to federal courts, if necessary. [8]

CEO Dolan has plenty of reasons to be frustrated, especially with his ongoing legal troubles with the National Labor Relations Board. / Source – ESPN.com

November 11th

Cablevision teamed up with Time Warner Cable to release the first ever “New York Television Audience Insights Report”. The report sampled the 3.5 million subcribers of Cablevision and TWC in the New York area, which is half of the TV homes in the region. Its aim was to help advertising and marketing departments and companies get better value out of their advertising purchases. Some key findings include –

74% of all TV programming watched was outside of traditional TV ‘prime time’ (8-11PM).
On average, a subscriber will only watch 25 channels in a month.
a whopping 90% of all viewing comes from a mere 100 channels. [9]

These new insights will help create better statistics for TV viewership and aid advertisers in spending money more efficiently.

November 18th

New York City Mayor Bill de Blasio announced that the city is planning an extensive new WiFi network across the five boroughs. The project, dubbed LinkNYC, would provide not only free WiFi, but also no-cost domestic calling and video chat. The 10,000 hotspot system would replace the city’s decaying network of archaic payphones and operate completely with money generated through advertising. Projected to cost around $200 million, LinkNYC would bring in over $500 million over the next twelve years, according to city officials.

This announcement led some to think Cablevision’s Optimum WiFi network would be threatened by this new, massive competition. Cablevision officials have not only dismissed these musings, but have actively worked with New York City on a number of initiatives, possibly including LinkNYC itself. [10]

Mayor-Elect De Blasio Makes Announcement

Mayor de Blasio’s ambitious project looks to dramatically improve WiFi services within the five boroughs. / Source – PIX 11

November 22nd

The Lewisboro Ledger revealed that Cablevision has a new deal with the town of Lewisboro (Westchester County). The deal, which primarily concerns franchising fees, has a number of key improvements –

Over $270,000 in new franchising fees are expected in 2015.
Free cable would be provided to 16 municipal and school buildings, including the public library.
New offers would include a senior discount for those aged sixty-five and older.
Town Board meetings would become available for live-streaming.
The town’s parks and baseball fields will become WiFi-equipped. [11]

November 25th

Kids video-on-demand network Kabillion announced a carriage deal with Cablevision. Kabillion, which is the only independently-owned VOD network ranked in the Top 10 Kids Free On Demand list, will now reach over 50 million homes nationwide. The deal is beneficiary to Cablevision too, as Kabillion reports views exceeding 65 million in 2014. [12]

Bibliography

AMC Networks

Posted on March 15, 2014 by Tyler Cunningham

By Tyler Cunningham


courtesy of [1] hitstate.com

AMC Network Entertainment LLC

11 Penn Plaza – New York, NY 10001 – (646)-273-7105

HISTORY + ABOUT:

Upon its launch in 1980, AMC Networks was originally known as Rainbow Media Holdings LLC, a subsidiary of Cablevision. After 25 years of successful programming and mergers, Cablevision executives took Rainbow Media public on July 1st, 2011 under its new name, AMC Network Entertainment. [2]

courtesy of [3] imgl.wikia.nocookie.net

Now in its third year as a publicly traded company, AMC Networks owns and operates some of today’s most popular cable channels including AMC, Sundance TV, WE tv and IFC. Additionally, the company owns the independent film distributor, IFC Films, as well as the IFC Center cinema in Greenwich Village. [4] AMC Networks has a commitment to producing only the most distinctive and compelling content that engages many different audiences.

KEY EXECUTIVES:

[5]

Charles F. Dolan – Executive Chairman

[5]

Joshua W. Sapan – President & CEO

[5]

Edward A. Carroll – COO

[5]

Sean E. Sullivan – Executive VP & CFO

FINANCIALS AS OF SPRING 2014:

AMC Networks has not yet reported its First Quarter earnings for 2014, however it recently reported its Fourth Quarter & Full-Year Earnings for 2013.

The Fourth Quarter saw a net revenue increase of 18.7% to $435 million, up from $395 million in the company’s Third Quarter report. [6] And what’s more is that 2013 saw an annual net revenue increase of 17.7% to $1.592 billion, up from $1.353 billion in 2012.These increases, according to CEO Joshua Sapan, can be entirely attributed to the company’s “ability to produce content that is valuable and monetizeable.” [7]

courtesy of [8] nasdaq.com

The company is publicly traded as AMCX on NASDAQ and has seen an especially successful Spring 2014. As seen in this graph that documents AMCX’s share price since going public in 2011, the price has been at an all-time high since the beginning of 2014, hitting $78.39 per share on March 7th. This is up from $59.18 on the same day in 2013.

RECENT HAPPENINGS:

AMC’s The Walking Dead Continues its Ratings Reign –

courtesy of [9] beyondhollywood.com

Even in the face of the XXII Winter Olympics, The Walking Dead‘s mid-season premiere on February 9th still garnered 16 million viewers and maintained its position as the highest-rated program on all of television in the key 18-49 demographic. [10] The zombie apocalypse drama’s popularity is commonly attributed to its incredibly tense storytelling and excellent character development. The Walking Dead will return for its fifth season this October.

Chellomedia is Offically Acquried for $1 Billion –

courtesy of [11] chellomediapaytv.com

After a lengthy courting process, AMC Networks purchased the London-based Chellomedia for $1 billion this spring. Chellomedia is a European television content distributor that owns and operates a massive collection of channels that reach an estimated 390 million homes across Europe. AMC Networks reportedly made the acquisition to broaden their European audience. [12] With net earnings of $465 million in 2013, Chellomedia is expected to now make up 20% of AMC Networks’ earnings. [13]

Final Season of Mad Men Opens to Lackluster Ratings –

courtesy of [16]

There’s no denying that Mad Men is one of the most critically-acclaimed shows in recent history, but when it comes to ratings, AMC wins some and they lose some. The seventh and final season of Mad Men premiered on April 13th to just 2.3 million viewers – their lowest premiere rating since the show’s second season in 2008. [14] Media analysts suspect that recycled, overused plot lines in season six (Don was predictably unfaithful, etc.) are to blame for the loss of public interest. [15]

New Drama, Turn, Premieres to Lukewarm Reviews –

AMC was hoping to add to its collection of hit dramas with the new Revolutionary War espionage thriller, Turn. However, it is looking unlikely that they will be able to do so. The series premiere on April 6th opened to a modest 2.1 million viewers (only .5 of them in the 18-49 demographic) and a bag of mixed reviews. [17] While some publications celebrated its arresting cinematography and stellar performances [18], most have labeled the show as “hollow,” with very little suspense or excitement to be found in its storytelling. [19] Turn – Trailer (YouTube)

UPCOMING PROJECTS:

Tech Drama, Halt and Catch Fire, to Premiere June 1st –

With Breaking Bad put to rest and Mad Men not far behind, “the question of ‘what’s next’ looms large for AMC.” [20] And many who attended the SXSW sneak peak of Halt and Catch Fire argue that the new series has what it takes to be the network’s next big smash. [21] The 1980s period drama tells the story of three techies with dreams of creating a more perfect personal computer that has the potential of replacing the most popular IBM model. The show’s riveting storytelling explores the multiple motives, burned bridges and egos involved in the fight to weaken IBM as the dominant player in the marketplace. The aptly titled series is slated for a June 1st premiere. Halt and Catch Fire – Trailer (YouTube)

courtesy of [25] amctv.com

Breaking Bad spinoff, Better Call Saul, to Premiere in November –

Diehard Breaking Bad fans were given reason to live again after a spinoff series, Better Call Saul, was announced following the show’s wrap. The show will center around Bob Odenkirk’s character, Saul Goodman, Albuquerque’s favorite crooked lawyer, and is named after the character’s hopelessly corny business slogan. The show will not be “Breaking Bad 2.0,” but rather a dive into the smattering of trouble and hilarity that ensues as a result of Saul’s shady business practices. [22] Better Call Saul – Webisode (YouTube)

courtesy of [26] leviathyn.com

Dark Comic Series, Preacher, to be Adapted for Television –

After many failed starts with other production companies, the 1990s comic book series, Preacher, will receive its first major television treatment from AMC. Preacher tells the story of Jesse Custer, a Texas preacher who becomes possessed by a supernatural entity that is half-angel, half-demon, making Custer the most powerful creature on Earth. Through his possession, he discovers that God has abandoned his responsibilities in Heaven and is now roaming freely on Earth. A preacher to his core, Custer sets out on a journey to track down God and send him back to his post. However, there are many demonic forces that will stop at nothing to keep this preacher from reaching God. The Seth Rogan-produced religious thriller is hoped to bring success similar to that of The Walking Dead. [23] A release date has not yet been set.

courtesy of [24] empireonline.com

SOURCES:

[1] – HitState, RT: 4/16/2014

[2] – Deadline, RT: 4/16/2014

[3] – imgl.wikia.nocookie, RT: 4/16/2014

[4] – AMC Networks, RT: 4/16/2014

[5] – AMC Networks – Investors, RT: 4/17/2014

[6] – AMC Networks – Investors, RT: 4/17/2014

[7] – Seeking Alpha, RT: 4/17/2014

[8] – NASDAQ, RT: 4/17/2014

[9] – Beyond Hollywood, RT: 4/17/2014

[10] – Seeking Alpha, RT: 4/18/2014

[11] – Chellomedia, RT: 4/18/2014

[12] – The Hollywood Reporter, RT: 4/18/2014

[13] – Seeking Alpha, RT: 4/18/2014

[14] – E! Online, RT: 4/18/2014

[15] – Indiewire, RT: 4/18/2014

[16] – SquareSpace, RT: 4/18/2014

[17] – Vulture, RT: 4/18/2014

[18] – The Daily Beast, RT: 4/19/2014

[19] – Variety, RT: 4/19/2014

[20] – Forbes, RT: 4/19/2014

[21] – Indiewire, RT: 4/19/2014

[22] – Screenrant, RT: 4/19/2014

[23] – The Hollywood Reporter, RT: 4/19/2014

[24] – Empire, RT: 4/19/2014

[25] – AMC TV, RT: 4/19/2014

[26] – Leviathyn, RT: 4/19/2014

Netflix

Posted on November 12, 2013 by Will Roth

By Will Roth

Netflix logo – courtesy digitaltrends.com

Corporate Headquarters

100 Winchester Circle, Los Gatos, CA 95032

(408) 540-3700

www.netflix.com

History

Netflix was founded in 1997 by software executives Reed Hastings and Marc Randolph. Two years later, the company offered its subscription service of unlimited DVD rentals for a monthly fee. Since its inception, Netflix has grown exponentially in terms of consumer popularity and financial revenue. Today, over 40 million subscribers consume roughly 1 billion hours of content per month through the company. [1]

Key Executive

Reed Hastings Courtesy of Netflix

Reed Hastings co-founded Netflix in 1997 and has served as its Chairman, CEO, and President since. Prior to this, he founded Pure Software, which he then sold to Rational Software. Following a stint in the Peace Corps during college wherein he taught high school math in Swaziland, he has served as the president of the California State Board of Education and remains a member of the California Teachers’ Association. [2] [3]

Financials

Netflix made its initial public offering on May 22, 2002 with 5,500,000 shares at $15.00 each. [4] As of November 15, 2013 one share sat at $349.78. The company’s all-time high was $389.16. However, it hasn’t always been a steadily increasing stock market commodity. On November 30, 2011 its price fell to $62.37. This came after the company’s decision to separate its DVD rental and streaming services. After watching the stock fall, company executives decided to abort the plan. Its stock recovered quickly and has climbed even higher than it was before the proposed change. [5]

Innovation

Netflix is a company that always seems to be ahead of the curve. After amassing 6.3 million members as a strictly DVD rental service, it launched its online streaming service in 2007. [4] After hovering around $20 per stock for years, this development started the company skyrocketing, topping out at roughly $290. This promptly fell after the announcement of Qwikster, which was the proposed streaming-only branch of Netflix. While this was a failure, it was innovative nonetheless.

Click here to watch a BloombergTV feature on Qwikster.

Netflix has rebuilt its popularity and image largely through original content.

latintimes.com

House of Cards was the first heavily advertised piece of original content from Netflix. “A Congressman works with his equally conniving wife to exact revenge on the people who betrayed him. [6]” The entire 13 episode first season was released at once so that viewers could “binge watch” it. Many analysts questioned whether this was a good business decision, theorizing that viewers wouldn’t remain hooked long enough for Netflix to prosper financially. [7] The numbers proved those doubters wrong. In the financial quarter following the show’s debut, Netflix gained 3 million new subscribers. In that quarter alone, the company made back its money on the program in which it had invested $100 million. [8] The show received 9 Emmy nominations and won for Outstanding Casting, Directing, and Cinematography in a Drama Series. [9]

pcmag.com

Netflix also found success in its debut of the fourth season of the cult hit Arrested Development. Executives attributed the bump of 630,000 new subscribers in the second quarter of 2013 to the show’s dedicated fan base. [10] The season earned three Emmy nominations. [11]

In addition to original content, Netflix has been innovative in customizing the user experience. In 2006, the company announced the “Netflix Prize,” which would award $1 million to the person or team who came up with the best algorithm to accurately give entertainment recommendations based on personal preference. Three years later, they had received submissions from more than 40,000 teams from 186 countries. [4] The prize was awarded in 2009, but the company never implemented the algorithm. According to Netflix, the “additional accuracy gains that we measured did not seem to justify the engineering effort needed to bring them into a production environment. [12]“

Also in the vein of user experience, Netflix recently added the option of multiple profiles to its streaming service. Chief Product Officer Neil Hunt acknowledged that most accounts are shared, usually within one household. In an effort to tailor recommendations to each user specifically, customers can now specify who is watching. The service is free of charge and will also help Netflix in collected more accurate user data. [13]

Competition

One might assume that Netflix is a competitor with cable providers. CEO Reed Hastings has a different view. In a letter to investors, he outlined his company’s main areas of focus moving forward, breaking down its competition into two categories. The first is “competitors-for-time,” meaning entertainment options that do not bid against Netflix. While markets may not overlap between Netflix and video game providers, sports networks, and piracy, all of those options eat up consumer time that could be spent watching Netflix. The other category is “competitors-for-content.” The largest competitor here is HBO. Hastings discloses that the companies have bid against each other for movie licensing and original content in the past, and that they seem to be pushing each other to be better consumer-oriented services. Hastings also lists Amazon, Hulu and others as competitors-for-content. At the same time, he believes that there will be enough room for everyone. “Many consumers will subscribe to multiple services if they each have unique compelling content. [14]

On The Horizon

Netflix plans to build upon its success with original content. It has renewed each of its original shows for second seasons, and has expressed desire to make another season of Arrested Development as well. “[We would] be delighted to produce a fifth season of Arrested Development, if possible, given fan reaction.” The company also plans to produce its own full-length documentaries and comedy specials and stream them exclusively. [15]

There is also speculation that Netflix is pushing for day-and-date movie releases, meaning that it could begin streaming a film the same day it premieres in theaters. Though Netflix has not confirmed this, theater owners are wary that the development could put them out of business. Ted Sarandos, Netflix’s Chief Content Officer, accused theaters of refusing to adapt, saying “not only are they going to kill theaters — they might kill movies.” Currently, theaters have a 90 day exclusivity deal, wherein films cannot be shown anywhere else for three months. But recent studies state that theaters make 96% of total revenue from a film’s first six weeks. At the very least, we can expect Netflix to cut the amount of time between theatrical releases to streaming down to between 30-45 days. This would spell greater profits for both Netflix and movie studios while only trimming 4% of theaters’ revenue. [16] At the very least, we can expect an innovator like Netflix to be on the forefront of the entertainment business in the years to come.

Sources

[1] About Netflix

[2] About Reed Hastings

[3] Reed Hastings Profile – Bloomberg Businessweek

[4] Netflix Company Timeline

[5] Nasdaq

[6] House of Cards imdb

[7] Variety Binge Watching

[8] The Atlantic Wire

[9] Emmys – House of Cards

[10] Huffington Post Tech

[11] Emmys – Arrested Development