Netflix

Posted on October 5, 2014 by mmueller

by Micaela Mueller

Company Logo – www.netflix.com

100 Winchester Circle, Los Gatos, CA 95032
(408) 540-3700

Executives [1]

Reed Hastings, Founder and CEO

David Wells, CFO

Twani Cranz, Chief Talent Officer

Kelly Bennett, Chief Marketing Officer

About [2]

Netflix is an international public company that allows users to stream movies and television shows online with a monthly subscription. They also offer rentals by mail for an additional cost and produce their own original programming.

History

Courtesy of postalnews.com

Reed Hastings and Marc Randolph founded Netflix in 1997 as an online movie rental service. In 2007, Netflix introduced streaming services that allowed members to use personal computers to instantly watch movies and television shows online. In 2012, Netflix began producing original content and became the first Internet TV network to be nominated for the primetime Emmy with 31 nominations in 2013 [3]. Currently in 2014, Netflix has over 53 million members in nearly 50 countries worldwide and accounts for more than 34 percent of the peak wired download traffic in North America [4].

Financials

Netflix is publically held. According to the company’s 2014 third quarter report, it has $1,223 billion in total revenue, a 27% increase from the same quarter of the previous year. The company reported a 20% increase in domestic revenue from the same quarter of the previous year and a 47% increase in international revenue due to their expanded global market. Netflix predicts a 6% increase in total revenue and an additional 4 million subscribers by the end of the fourth quarter, bringing their total revenue up to $1,305 billion and their global membership to 57 million. Netflix’s two major competitors are Hulu and Amazon [5].

Courtesy of finance.yahoo.com

Over a 3-month period, Netflix’s highest share price was $484.39. However, after a massive 25% drop on October 16^th, the price dropped to $361.70 and eventually reached it’s lowest share price of $346.59 on November 30^th [6].

The 25% drop in share price occurred a day after Netflix reported that the company’s subscriber growth was below the original forecast. Netflix speculates that the subscriber growth was lower than anticipated as a result of the increased price for membership that was announced in May 2014 [7]. The price increased $1 from $7.99 to $8.99 monthly [8].

Recent News

International Expansion

Courtesy of gigaom.com

For the past couple of years, Netflix has been working to increase their international presence. Since 2012, Netflix has been available internationally in the UK, Ireland, Denmark, Finland, Norway, and Sweden and in the Netherlands since 2013. In September of 2014, Netflix announced that streaming services are now available to subscribers in Germany, France, Austria, Switzerland, Belgium and Luxembourg via all devices with Internet access including computers, smartphones, and video game consoles [9].

Then, in November of 2014, Netflix announced, that by March of 2015, it will expand into New Zealand and Australia [10].

Netflix and Nielsen

Since its start in 1997, the company has never released how many people watch each show on Netflix. The company claims that because their revenue comes from subscribers and not advertisers, the only number that matters is their subscriber count. The company’s decision bothers networks such as HBO, Showtime, and Starz, who also rely on subscribers and not advertisers, but who have their ratings recorded by Nielsen [11].

However, according to the Wall Street Journal, Nielsen is going to start measuring viewership for streaming services like Netflix. Starting next month, Nielsen will use already existing in-home metering devices to record Netflix viewership without the need of the company’s permission. Nielsen, however, will not be able to record viewership via mobile devices, a platform heavily used for Netflix streaming [12].

Recent Original Content

Netflix started producing original programming in 2012 with the release their first series Lilyhammer starring former Sopranos star Steven Van Zandt [13]. Since then, the company has produced a number of successes such as Orange is the New Black, winning 3 Primetime Emmy Awards [14], and House of Cards, winning 4 Primetime Emmy Awards [15].

Courtesy of netflix.com

In addition to producing their own content, Netflix picks up dropped on-the-air television shows and continues to produce them. Arrested Development, for example, was off the air for a number of years before Netflix produced its fourth season in 2013. In August of 2014, the network confirmed that it will be producing a fifth season in the coming year [16].

On June 19, 2014, Netflix announced the company’s pairing with Chelsea Handler to produce a Netflix original comedy talk show. Handler decided to pair with Netflix in order to keep herself new and interesting. The talk show will debut in early 2016 [17]. However, on October 10^th, the network premiered a stand up comedy performance from Handler’s latest comedy tour, Uganda Be Kidding Me, as her debut to Netflix [18].

Looking Ahead

Film

Courtesy of imdb.com

On September 30, 2014, Netflix announced their pairing with the Weinstein Company to release their first original movie. The movie will be a sequel to Crouching Tiger Hidden Dragon, a 2002 martial-arts epic movie directed by Ang Lee, also the director of Life of Pi and Brokeback Mountain [19]. The sequel will be titled Crouching Tiger Hidden Dragon: The Green Legend and will be directed by Yuen Wo-ping. It will be produced by Harvey Weinstein, Academy Award winner for The King’s Speech, Peter Berg, Emmy Award winner for Friday Night Lights, and Sarah Aubrey, producer of Lone Survivor. The film tells a martial arts story where good and evil battle for the fate of the Martial World. Major stars of the film will include Harry Shum Jr., Jason Scott Lee, Roger Yuan, and Eugenia Yuan [20]. It will be released and available to all subscribers on August 28, 2015 as well as in select global IMAX theaters [21].

Days later, on October 2^nd, Netflix announced a deal they made with Adam Sandler, comedy actor and founder of Happy Madison Productions [22]. Sandler, alongside Happy Madison Productions, committed to acting and producing four films exclusively available through Netflix. The first movie could come as early as late 2015 and currently has no theatrical component [23].

Television

Courtesy of netflix.com

Netflix will be premiering two original programming pieces on December 12, 2014. The first is Marco Polo, a series centered on Marco Polo’s exploration during the time of the 13^th century war in China and will be produced by The Weinstein Company [24].

The second is a stand-up comedy special, American Ham, with actor Nick Offerman, known for his role in NBS’s Parks and Recreation. The special will appear in the US, Canada, the UK, and Ireland [25].

The company will continue their original series in 2016 with a relationship sitcom called Love. Judd Apatow, known for producing Knocked Up and 40-Year-Old Virgin, will co-write and produce this Netflix original series [26].

Courtesy of joblo.com

Another sitcom in the works is Grace and Frankie, starring Lily Tomlin and Jane Fonda. The show is targeted to premier in summer 2015 [27].

Sources

[1] “Officers and Directors”, ir.netflix.com, RT: 11/29/14

[2] “Company Overview”, pr.netflix.com, RT: 11/29/14

[3] “Company Timeline”, pr.netflix.com, RT: 11/29/14

[4] “Netflix Crowned King of Streaming With More Than a Third of Peak Traffic”, Time Magazine, 5/14/14, RT: 11/29/14

[5] “Letter to Shareholders”, ir.netflix.com, 10/15/14, RT: 11/29/14

[6] “Netflix, Inc.”, Yahoo!Finance, RT: 11/30/14

[7] “Netflix Shares tank 20% on Weak Results”, CNN Money, RT: 11/29/14

[8] “A Quick Update on Our Streaming Plans and Prices”, blog.netflix.com, 5/9/14, RT: 11/29/14

[9] “Netflix Launches in Belgium and Luxembourg”, Multichannel News,9/9/14, RT: 11/29/14

[10] “Press Releases”, pr.netflix.com, 11/18/14, RT: 11/29/14

[11] “How Much Longer Can Netflix Keep Ratings a Secret?”, Forbes, 9/18/14, RT: 11/29/14

[12] “We’re Still a Long Way Away From Knowing How Many People Watch Netflix and Amazon Shows”, vulture.com, 11/20/14, RT: 11/29/14

[13] “Lilyhammer, Netflix’s First Original Show, Available to Watch Online Now”, Huffington Post, 2/6/12, RT: 11/29/14

[14] “Orange is the New Black Awards”, IMDb.com, RT: 11/29/14

[15] “House of Cards Awards”, IMDb.com, RT: 11/29/14

[16] “Will Arnett Confirms ‘Arrested Development’ Season 5 Is Happening”, Huffington Post, 8/8/14, RT: 11/29/14

[17] “Press Releases”, pr.netflix.com, 6/19/14 RT: 11/29/14

[18] “Chelsea Handler to Launch Netflix Talk Show”, CBS News, 6/19/14, RT: 11/29/14

[19] “Ang Lee”, IMDb.com, RT: 11/29/14

[20] “Press Releases”, pr.netflix.com, 9/30/14, RT: 11/29/14

[21] “Netflix to Release First Original Movie”, Time Magazine, 9/30/14, RT: 11/29/14

[22] “Adam Sandler”, IMDb.com, RT: 11/29/14

[23] “Press Releases”, pr.netflix.com, 10/2/14, RT: 11/29/14

[24] “Press Releases”, pr.netflix.com, 4/8/14, RT: 11/29/14

[25] “Netflix Sets Premiere for Nick Offerman’s ‘American Ham’ Stand-up Comedy Special”, bostonherald.com, 11/24/14, RT: 11/29/14

[26] “Netflix (NFLX) to Stream Original Content Love in 2016”, zacks.com, 9/18/14, RT: 11/29/14

[27] “Netflix Orders Comedy Series to Star Jane Fonda, Lily Tomlin”, Variety 3/19/14, RT: 11/29/14

Weinstein Company

Posted on October 5, 2014 by pbsteinf

by Phoebe Steinfeld

[1] The Weinstein Company logo

About TWC

Bob Weinstein and Harvey Weinstein, the original creators of MIRIMAX Films, which was sold to Disney in 1993, founded the Weinstein Company in 2005. TWC is an independent production and distribution known for its knack for taking home Oscars and ability to captivate audiences with offbeat, dramatic films. TWC also encompasses Dimensions Films, originally under MIRAMAX, and has recently stepped into the world of television production. [2]

Who’s Who: Key Executives

Bob Weinstein: Co-Chairman [3]

[4] Bob Weinstein

Harvey Weinstein: Co-Chairman [5]

[6] Harvey Weinstein

Dylan Sellers: President of Production

[7] Dylan Sellers

In September it was announced that Dylan Sellers is stepping down as President of Production after three years at TWC to pursue his producing career. Sellers is responsible for such titles as award winning August: Osage County and the recent release, St. Vincent.[8]

Stephen Bruno: President of Marketing

[9] Stephen Bruno

Stephen Bruno has served as President of Marketing for TWC for the past three years. He has recently been offered a position by Netflix to head their marketing department. After 7 years with TWC, his contract is up at the end of the year.[10]

New Releases [11]/ Box Office Results

The Weinstein Company released 14 films to date in 2014. In the US market these films have brought in $132,955,985 so far[12], making TWC the 8th highest grossing studio with 2% market share. TWC was ranked eighth in 2013, but they are down 2.5% market share from 2013[13]. Though the summer was a flop for films such as Begin Again[14] with Adam Levine, The Giver[15], and Sin City: A Dame to Kill For[16], TWC has five promising new titles in theaters this fall that could raise revenues and bring in awards for the studio. These titles include, The Disapearance of Eleanor Rigby, St. Vincent, Tracks, The Imitation Game and One Chance.

St. Vincent [17]

[18] Staring Bill Murray, Melissa McCarthy, Naomi Watts, and Chris O’Dowd, St. Vincent is the story of an unlikely friendship between two neighbors as they both struggle to find their way in the world.

The quirky comedy has already received Oscar buzz and high praise upon its debut at the Toronto Film Festival. It was released limitedly on October 10^th in 4 theaters and saw $109, 878 in box office sales.Upon it’s wide release on October 24^th, St. Vincent saw $7,746,596 in revenue in 2,282 theaters, ranking #6 in the box office overall that weekend. In its 9^th week, St. Vincent has made $40,749,905 domestically, and $41,346,602 worldwide. Just 1.4% of revenue was seen internationally.[19] This may have to do with Netflix’s deal with TWC to release the feature film for streaming on Netflix in France the same day as the US wide release.[20] The week leading into its wide release, Variety reported that St. Vincent lead the week in TV ad sales, spending $5.1 million [21].

[22]

The Disappearance of Eleanor Rigby [23]

The Disappearance of Eleanor Rigby: Him and Her is the classic tail of two people falling out of love.

[24]The Disappearance of Eleanor Rigby: Him and Her shows both sides of the story in this classic tale of two people falling out of love.

The Disappearance of Eleanor Rigby: Them stands completely alone from Him and Her with a fresh perspective on Conor and Eleanor's relationship

[25]The Disappearance of Eleanor Rigby: Them stands completely alone from Him and Her with a fresh perspective on Conor and Eleanor’s relationship.

The Disappearance of Eleanor Rigby is The Weinstein Company’s attempt to break the traditional templates of production. The Disappearance of Eleanor Rigby follows the relationship of Jessica Chastain and James McAvoy and consists of three feature length films from three different perspectives; his, her’s, theirs. Each film was created explicitly through editing, yet each film tells a completely different story and can stand on its own as a feature film. Him and Her were released on September 12th as a two part, 200 minute film, and Them was released on September 4th as a 123 minute film[26]. Though Eleanor Rigby has created quite a bit of buzz in the industry, the box office results have been anything but stellar. To date, the total revenue has been $985,007 worldwide. 59.7% of that revenue was seen domestically. Originally only in four theaters, by its 3rd week Eleanor Rigby was in 139 theaters, but is now only available in two.[27]

[28]

Tracks [29]

Directed by John Curran, Tracks tells the true story of Robyn Davidson, the woman who journeyed across the Australian Outback.

[30]Tracks tells the true story of Robyn Davidson, the woman who journeyed across the Australian Outback.

The Weinstein Company acquired the rights to Tracks, directed by John Curran after its premier in the Venice Film Festival. It premiered in the United States during the Telluride Film Festival and also made a favorable impression at the Toronto Film Festival[31]. Tracks was released in seven theaters on September 19th and grossed $21,544 opening weekend. After ten weeks in theaters, the film has grossed $4,878,242. Notably, only 10.5% of that revenue is from the domestic box office[32].

[33]

One Chance[34]

[35]One Chance is an original biopic about singer Paul Potts

One Chance tells the story of Britain’s Got Talent’s first winner, Paul Potts. It was originally released to stream on Yahoo before debuting in theaters.[36] This was an attempt by TWC to capture more audiences as the landscape of movie viewing is vastly changing. The financials of the TWC/Yahoo deal were not released, but ads were shown throughout the online screening.Theater chains were reportedly unhappy with this deal[37]. When One Chance hit the box office on October 10th, it saw $33,405 in 43 theaters. To date, it has grossed $10,889,830 worldwide, with only 0.8% domestic sales.[38]

[39]

The Imitation Game[40]

Benedict Cumberbach stars in the biopic of Alan Turing, a brilliant mathematician condemned for his homosexuality.

[41] Benedict Cumberbatch stars in the biopic of Alan Turing, a brilliant mathematician condemned for his homosexuality.

The Imitation Game is yet another British biopic about Alan Turing, a mathematician responsible for breaking Nazi codes during WWII. The film was produced by two first timers, Nora Grossman and Ido Ostrowsky.[42] There is already much Oscar buzz surrounding this film, and it was listed as one of AFI’s top films of 2014.[43] It was released on November 18th, and has already grossed $18,676,784. However, again only a small portion of those sales were domestic (5.5%).[44]

[45]

Shaking Up Distribution Models/ Future of TWC

“In today’s digital era, technology has developed and changed the landscape of how many people watch movies and TV,” -David Glasser, COO [46]

The Weinstein Company has always been known to push boundaries and play by their own rules. Due to the rapidly changing landscape of the media, TWC has attempted to capture audiences using unique distribution models. This fall, TWC announced they would be partnering with Netflix to release Crouching Tiger Hidden Dragon: The Green Legend. The second installment of the Crouching Tiger franchise will simultaneously be released in IMAX theaters and become available to screen at home on Netflix.[47]The industry saw similar shake ups with TWC’s Yahoo release of One Chance and the Netflix release of St. Vincent in France. As platforms continue to develop and media viewing continues to change, we should expect similar distribution disturbances and innovations from The Weinstein Company.

Sources:

1. The Weinstein Company Logo, Google Image. 12/1/14

2. About TWC, weinsteinco.com. 12/3/14

3. Bob Weinstein IMDB, IMDB. 12/3/14

4. Bob Weinstein Photo, Google Image. 12/3/14

5. Harvey Weinstein IMDB, IMDB. 12/3/14

6. Harvey Weinstein Photo, Google Image. 12/3/14

7.“Dylan Sellers Exits”, Deadline. 10/12/14

8.“Dylan Sellers Out”, Variety. 10/12/14

9. “Next Gen: 2012”, Hollywood Reporter. 12/4/14

10. “Netflix Courts Weinstein Marketing Head”, Deadline. 12/4/14

11. Now Playing, weinsteinco.com. 12/8/14