Weinstein Company

Posted on March 15, 2014 by Roxanne Silver

By Roxy Silver

[1] The Weinstein Company Logo

HISTORY

Brothers Bob and Harvey Weinstein founded Miramax Films in 1979 and sold it to Disney in 1993. In 2005, they launched The Weinstein Company, TWC, a multimedia and distribution company that encompasses Dimension Films, a genre-label founded in 1993 by Bob Weinstein [2]. TWC and Dimension Films have released mainstream genre and specialty films [3]. Recently the company has made a huge push in its television division.

KEY EXECUTIVES

[4] Harvey Weinstein, Co-Chairman TWC

[5] Bob Weinstein, Co-Chairman TWC & Dimension Films

FINANCIALS

TWC is privately held. Box office wise, currently TWC is ranked 9th with 2.5% of the market share, grossing $69.1 million from its 8 films [6]. This marks a decrease from the prior year in which TWC ranked 8th with 4.5% market share, grossing $491.7 million while releasing 21 films [7].

IN THEATERS

[8] Lee Daniels’ The Butler captures the story of a White House butler who served seven presidents through dramatic and changing times in American history.

“Lee Daniels’ The Butler”

The drama starring Forest Whitaker and Oprah Winfrey “was expected to do well, but we didn’t expect to do this well,” shared Erik Lomis, President of Distribution for TWC. “The Butler” is the company’s first No. 1 debut since 2009 [9] with an opening weekend of $24.6 million on August 16, 2013 [10]. The film has accumulated grosses of $116.6 million domestically and grossed $146.5 million internationally [11].

[12] Vampire Academy is based on a best selling series about two “mortal vampires” who attend a boarding school and have to protect each other from the terrible forces.

“Vampire Academy”

The highly anticipated fantasy film was a flop for TWC. In attempt to imitate the success of box office hits like “Twilight” and “The Hunger Games,” this young-adult adaption didn’t compliment the best-selling book series as the box office sales attest: It premiered in theaters on February 7, 2014, reeling in $3.9 million during its opening weekend [13]. The film has accumulated grosses of $7.79 million domestically and $7.6 million foreign, totaling $15.3 million worldwide [14].

AWARDS SEASON

TWC had an extremely successful year leading up to The Academy Awards, but fell short with only 11 nominations compared to the 17 from the year before [15]. Regardless, the three films nominated received wide recognition.

[16] 20 Feet From Stardom

“20 Feet From Stardom”

“Millions know their voices, but no one knows their names”- “20 Feet From Stardom” is a documentary that told the story of Darlene Love who backed up idols, Stevie Wonder, Frank Sinatra, Luther Vandross and Elvis Presley. The film shared her story of struggle of being feet away from the spotlight, but never making it [17]. This film was TWC’s only Academy Award winner for Best Documentary Feature [18].

[19] Philomena

“Philomena”

Philomena captures the story of a mother searching for her son but instead finding his gay lover. The drama was nominated for Best Picture, Best Original Score, Best Actress, and Best Adapted Screenplay, but didn’t win any awards at the Oscars [20]. With an opening weekend of $128,435, to date the film combines $37.5 million domestic with $62.4 million foreign, netting TWC $87.9 million [21].

[22] August: Osage County

“August: Osage County”

The dark comedy based on a Pulitzer Prize winning play portrays a dysfunctional family coming together after a death. Starring Meryl Streep and Julia Roberts, it was nominated for two Oscars[23]. The film had a limited opening weekend of $179,302 in December 2013 and a wide opening of $7.1 million [24]. The film has accumulated $37.7 million domestically and $34.7 million foreign, netting TWC $52.4 million [24].

STRATEGICALLY TWC TAKES ON TV

A $370 million line of credit from Union Bank helped TWC enter the television market in 2013 [25]. TWC’s COO David Glasser explained, “We’ve invested a lot in TV because we see it as a big part of our future.”[26] Now in 2014 the future is here. Having TV under TWC’s belt is an asset creating versatile operations, revenue, and a presence in the TV industry.

TWC acquired the U.S. distribution rights to the Sky Italia drama series, ‘Gomorra’ from Beta Film, an international distributor [27]. Stefano Sollima directed this series based on a bestselling novel about the Neapolitan crime administration Camorra, and is set for release in 2015 [28]. Harvey Weinstein shares “This project caught our eye a while back for its world-class acting talent, as well as Sollima’s abilities to craft a thriller like none other.” [29] This acquisition benefits TWC with new innovative programming, and Beta Film providing ‘Gomorra’ access into American homes.

With the buzz generated from “Netflix Original Series,” TWC is jumping in. The highly anticipated Weinstein Company drama ,“Marco Polo”, is in production for Netflix and will premiere nearing the end of 2014 [30]. Harvey Weinstein reported, “We are proud to present a series that rivals some of the most successful films we’ve ever made. We are excited to introduce him (Marco Polo) to the world.” [31]

TWC‘s recent partnership with media company Gannett gives TWC an advantage with exclusive access to use Gannett’s expansive media library and retain distribution rights from Gannett’s television stations, newspapers, and digital assets [32]. Weinstein’s President of Television Maryam Banikarim, told Street Insider, “This groundbreaking venture will allow us to discover and explore rich new narratives for a wide array of audiences.” [33]

COMING SOON TO THEATERS NEAR YOU

TWC is continuing their Oscar worthy slate of films this summer, staying true to their demographics and genres of past films. These soon-to-be hit films with A-list names will hopefully yield them success at the 2015 Oscar’s and in the box office.

“The Giver”

The Giver Trailer [34]

“The Giver”, a science-fiction film, directed by Phillip Noyce stars Oscar winners Meryl Streep, Katie Holms, Jeff Bridges, and singer Taylor Swift [35]. The film, which various companies attempted to produce previously, is loosely based on the classic 1993 Lois Lowry novel. Jeff Bridges called it “your next favorite movie.” [36] The story, set to release in August, illustrates a utopian society in which a boy is chosen to learn from an elder the true pains and pleasures of the real world [37].

“Sin City: A Dame to Kill For”

Sin City Trailer [38]

The drama/thriller film directed by Robert Rodriguez [39], is a sequel to the successful 2005 Weinstein film “Sin City” which domestically grossed $74 million [40]. The black and white, 3D-esque thriller will be hitting the screens in August. The star packed cast includes Joseph Gordon-Levitt, Lady Gaga, Jeremy Piven, Jessica Alba, and Bruce Wills to name a few [41]. Considering the triumph the original picture had and the megastar cast “Sin City: A Dame to Kill For” will likely attract crowds to the box office.

“Begin Again”

Begin Again Trailer [42]

The romantic-comedy film from writer-director John Carney is set to release on July 4th [43]. “Begin Again” follows a distressed ex-recrod label executive, Mark Ruffalo, fall in love with a young singer-songwriter, Kira Knightley, after her boyfriend, Adam Levine, dumped her [44]. At the Tribecca Film Festival Carney explained, “Begin Again is a true New York story about magical opportunities.” [45] This classic summer “romcom” will catch movie goers attention from the star studded cast, to the simple yet entertaining plot.

FUTURE OF TWC

The future for TWC is positive and optimistic. Prior to last year TWC was a dominant player in Oscar awards. Presuming this year was a fluke, TWC should bounce back stronger next Oscar season. Additionally, the significant infusion of cash into its TV segment, will bolster the company’s position in the industry, while likely improving its bottom line.

Sources

[1] Weinstein Company Logo, Ramascreen.com, RT: 4/12/2014

[2] “About The Weinstein Company”, Weinsteinco.com, RT: 4/11/2014

[3] “Dimension Films”, Disney.Wika.com, RT: 4/11/2014

[4] Harvey Weinstein, Co-Chairman, Time, RT: 4/10/2014

[5] Bob Weinstein, Co-Chairman TWC & Dimension Films, Zimbo.com, RT:4/10/2014

[6] Studio Market Share 2014, BoxofficeMojo.com, RT: 4/15/2014

[7] Studio Market Share 2013, BoxofficeMojo.com, RT: 4/15/2014

[8] Lee Daniels’ The Butler Movie Poster, IMBD, RT: 4/12/2014

[9] “The Butler’ Serves Up Box-Office Sucess at No. 1”, Fox News, 8/18/2013, RT: 4/12/2014

[10] “Weekend Box Office: ‘Lee Daniels’ The Butler Wins Again”, Movie Fone, 8/25/2013, RT: 4/12/201

[11] Lee Daniels’ The Butler (2013), BoxofficeMojo.com, RT: 4/13/2014

[12] Vampire Academy Movie Poster, themidnightgarden.com, RT: 4/14/2014

[13] “BOX OFFICE: Vampire Academy’ Has No Bite”, Yahoo Movies, 2/10/2014, RT: 4/14/2014

[14] Vampire Academy (2014), BoxofficeMojo.com, RT: 4/14/2014

[15] OSCARS: Nominations By Studio & Distributor, Deadline Hollywood, RT: 4/12/2014

[16] 20 Feet From Stardom Movie Poster, Filmberg.com, RT: 4/13/2014

[17] “20 Feet From Stardom Synopsis”, 20feetfromstardom.com, RT: 4/12/2014

[18] “Oscars 2014: ’20 Feet From Stardom’ wins for documentary”, Los Angles Times, 3/02/2014, RT: 4/12/2014

[19] Philomena Movie Poster, impawards.com, RT: 4/14/2014

[20] Oscar Nominations By Picture, Deadline Hollywood, RT: 4/14/2014

[21] Philomena (2013), Boxofficemojo.com, RT: 4/14/2014

[22] August: Osage County Movie Poster, broadyway.com, RT: 4/15/2014

[23] “Harvey Weinstein on disappointing Oscar showing for ‘Osage County’ have only myself to blame”, Entertainment Weekly, 2/21/2014, RT: 4/15/2014

[24] August: Osage County (2013), Boxofficemojo.com, RT: 4/15/2014

[25] “The Weinstein Co. Finalizing $370 Million Credit Facility: Report”, Deadline Hollywood, 9/19/2013, RT: 4/16/2014

[26] “The Weinstein Company: stirring drama”, ScreenDaily.com, 4/02/2014, RT: 4/16/2014

[27] “TWC Closes Deal for U.S. Rights to Italy’s ‘Gomorrah’ Skein”, Variety, 4/07/2014, RT: 4/16/2014

[28] “Weinstein to build Gomorra in US”, c21media.net, 3/08/2014, RT: 4/17/2014

[29] Weinstein Co Acquires Italian Crime Drama Series ‘Gomorra’ , Deadline Hollywood, 4/08/2014, RT: 4/15/2014

[30] Marco Polo (TV Series 2014), IMBD, RT: 4/18/2014

[31] “‘Marco Polo’: Production underway for Weinstein Company’s Netflix Show”, Entertainment Weekly, 4/08/2014, RT: 4/16/2014

[32] “Gannett (GCI) and The Weinstein Co. Enter First Look Film And Television Deal”, Streetinsider.com, 4/02/2014, RT: 4/16/2014

[33] “Gannnett Co., Ince And The Weinstein Company Enter Into A Unique First Look Film And Television Development Deal”, PR News Wire, 4/02/2014, RT: 4/16/2014

[34] The Giver Trailer, YouTube, 3/19/2014, RT: 4/14/2014

[35] “Weinstein Dates ‘The Giver’ Starring Meryl Streep and Jeff Bridges for August 2014”, IMBD, 9/21/2013, RT: 4/16/2014

[36] “Jeff Bridges Talks About Your Next Favorite Movie”, Moviepilot.com, 2/12/2014, RT: 4/16/2014

[37] “‘The Giver’ trailer: Meryl Streep! Jeff Bridges! Color?!”, Entertainment Weekly, 3/19/2014, RT: 4/17/2014

[38] “Sin City 2″ Trailer Release”, Weinsteinco.com, 3/17/2014, RT: 4/16/2014

[39] Sin City: A Dame To Kill For Trailer, YouTube, 4/06/2014, RT: 4/16/2014

[40] Sin City (2005), Boxofficemojo.com, RT: 4/17/2014

[41] “5 Reasons you should be excited for Sin City: A Dame To Kill For”, Metro, 3/07/2014, RT: 4/16/2014

[42] Begin Again Trailer, YouTube, 3/28/2014, RT: 4/16/2014

[43] “‘Begin Again’ Movie 2014 Official Trailer Released Starring Adam Levine and Keira Knightley”, Hallels.com, 4/01/2014, RT: 4/16/2014

[44] “Trailer and Poster for Begin Again Starring Keira Knightley, Mark Ruffalo”, Movienewz.com, 4/03/2014, RT: 4/16/2014

[45] “Begin Again To Close Tribeca Film Festival”, Triebcaflim.com, 3/20/2014, RT: 4/16/2014

Gannett Broadcasting

Posted on September 19, 2012 by sweinste

by Scott Weinstein

Gannett Co., Inc.
7950 Jones Branch Drive
McLean, VA 22107-0150
703-854-6000 / www.gannett.com

A Brief Overview

In 1923, Frank Gannet founded Gannett Company, Inc. in Rochester, New York. It began as an extension of Gannett’s newspaper company that was founded in 1906 and has expanded to a multi-media company that no longer just publishes newspapers (1). “Gannett is a media and marketing solutions company with a diverse portfolio of broadcast, digital, mobile and publishing companies.” They own more than 90 daily newspapers, about 1,000 weekly newspapers, 23 television stations and many more media holdings. Gannett operates in 41 U.S. states and six countries (2). Gannett is expanding its brand and as the CEO, Gracia Martore said at the UBS Global Communications Conference, “The media business does not stand still for even a minute we take for granted that change is relentless and we have to show up with our A game everyday.” (3)

Gannett Broadcasting: Company Overview

Gannett Broadcasting’s division is comprised of 23 television stations and its subsidiary Captivate. The former reaches 21 million households in 20 markets, which is approximately 18.2% of the U.S. population (2). The latter is a company that delivers news, information, and advertising through video monitors in elevators. They are currently located in North America and reach more than 4 million workers (4). At the end of 2011, the amount of employees, both full-time and part-time, totaled about 2,600 (5).

Executives (6)

The Faces of Gannett Company, Inc. (Lougee, Beall, Martore, Harker)(16,17,18,19)

Broadcast Office

David T. Lougee , President, Gannett Broadcasting

Lynn Beall; Executive vice president, Gannett Broadcasting, and president and general manager, KSDK-TV, St. Louis, MO

Company Office

Gracia Martore, President and Chief Executive Officer

Victoria D. Harker, Chief Financial Officer

Assets

As noted earlier the company owns 23 different television stations across the country, in 21 different markets. Seven of the 21 markets owned by Gannett are in the top 20 market (7).

: (20, 21, 22, 23)

The stations are comprised of 12 NBC affiliates, 6 CBS affiliates, 3 ABC affiliates, and two MyNetworkTV affiliates. These affiliation agreements expire with NBC in 2017, with CBS in 2015, and with ABC and MyNetwork TV in 2014. The most successful weekly audiences, based on the November 2011 Nielsen sweeps, are the CBS affiliate in Washington DC (WUSA-TV) with 1,797,000; the NBC affiliate in Atlanta, Georgia (WXIA-TV) with 1,602,000; and the NBC affiliate in Minneapolis-St.Paul, Minnesota (KARE-TV) with 1,297,000. (8)

The ratings of these stations continue to do well. Lucky for Gannett, more than half of its stations are NBC affiliates, and this past November was the first time since 2003 that NBC ranked number one in the Nielsen prime time ratings programming amongst adults 18-49. This increased revenue, as many people tuned into the NBC programming. Furthermore, the past Summer Olympics in London were the most watched games in Olympic history, attracting more than 200 million people. KUSA-TV in Denver was the top rated NBC market affiliate during the two-week span of the games. Their Atlanta and Minneapolis NBC affiliates were ranked second and third respectively; and their St. Louis and Phoenix did well. In total the Gannett owned affiliate stations took six of ten top NBC affiliate markets in terms of ratings during the Olympics (3).

Arizona	FlagstaffPhoenix	KNAZ-TV (NBC )KPNX-TV (NBC)
Arkansas	Little Rock	KTHV-TV (CBS)
California	Sacramento	KXTV-TV (ABC)
Colorado	Denver	KTVD-TV (My Network TV )KUSA-TV (NBC)
District of Colombia	Washington	WUSA-TV (CBS)
Florida	JacksonvilleTampa-St. Petersburg	WJXX-TV (ABC)WTLV-TV (NBC)WTSP-TV (CBS)
Georgia	AtlantaMacon	WATL-TV (My Network TV)WXIA-TV (NBC)WMAZ-TV (CBS)
Maine	BangorPortland	WLBZ-TV (NBC)WCSH-TV (NBC)
Michigan	Grand Rapids	WZZM-TV (ABC)
Minnesota	Minneapolis-St. Paul	KARE-TV (NBC)
Missouri	St. Louis	KSDK-TV (NBC)
New York	Buffalo	WGRZ-TV (NBC)
North Carolina	Greensboro	WFMY-TV (CBS)
Ohio	Cleveland	WKYC-TV (NBC)
South Carolina	Columbia	WLTX-TV (CBS)
Tennessee	Knoxville	WBIR-TV (NBC)

Financial Information

Gannett Company, Inc. is a publicly traded media holding company (GCI). On October 15 the third quarter results were released, and the broadcasting division’s success was monumental. Both revenue and profits were at a record high in all of Gannett broadcasting history. The operating revenue increased 36% from $174.3 million the last 3^rd quarter to $237 million during the most recent 3^rdquarter. The television revenue was also up 38.1% from $168.8 million a year ago to $233 million. The substantial increase is mostly attributed to advertising, which includes $41.7 million spent on political advertising and $37 million spent on the summer Olympics related ads. The Olympics brought in an unprecedented amount of revenue from advertising. Their total was up 18% from four years ago during the Beijing Olympic games. Part of the explanation was that Gannett reached out to local advertisers to sell television time to. Lougee is looking to increase the revenue even more during the 2014 Winter Olympic games in Sochi, Russia. In total, political revenue for the year will be $150 million. Prior to the 2012 election, Gannett lacked a strong political footprint, but that changed during this election. Because of more local coverage of elections, especially in swing state markets including Colorado, Florida, and Ohio, political advertising increased by a significant margin. Another source of the revenue came from retransmission fees, which accounted for $22.3 million. With retransmission consent in 2013, Gannett will receive 135-140 million from distributors, which is up 41 to 46% from 2012. The fourth quarter results are expected to be at an all time high. When the books are closed for Gannett’s fiscal year, the broadcasting division will report record growth and revenue (3) (9).

YTD Stock Price (December 6, 2011-December 6, 2012) (24)

As far as the stock market is concerned, the current share price for GCI is $17.88. Their share price has seen an incline for the most part, as a year ago it was being sold at $13.13 (10) Just recently, a report was released by Dividend Channel that named them the top dividend stock with insider buying. On October 23, the Board of Directors of Gannett announced that a dividend of $0.20 per share would be payable to stockholders just after the new year. As of now the company is on track to return dividends up to $1.3 billion through 2015. Throughout the UBS Global Media and Communications Conference a common theme that both the CEO and CFO spoke about was making sure an increasing level of capital is returned to their shareholders. Furthermore, there is currently a large amount of cash flow totaling over one billion dollars. That money will be used to return even more cash and to invest into things that will expand the Gannett brand (3) (11).

Recent Happenings

Gannett and Dish Network

(25)

In late May, Dish Network introduced its Auto Hop feature available on its DVR service. This new technology allows users to skip over commercials on broadcast networks. While this is beneficial for TV viewers it hurts the broadcasters who lose advertising revenue. As a result of this feature, Dish Network and Gannett were having difficulty renewing their retransmission agreements (12). Gannett was looking for a 300% rate increase to compensate for the loss of revenue from advertisers. Dish Network’s stance was that they wanted to take a stand for customer choice and control. Fortunately for subscribers, rather than suffer from a blackout, the two companies reached a deal as the October 7^th deadline was slightly extended. The terms of the deal have not been released, but the new contract is long term according to press releases by both companies (13).

Gannett and DirecTV

(26)

DirecTV customers narrowly avoided a blackout of Gannett television stations across the country. As the November 30^th deadline approached, Gannett warned their viewers that they may experience a blackout of affiliate stations until an agreement was reached. This was all because Gannett was looking for a fair deal for retransmission fees, while DirecTV said that Gannett was trying to get customers to pay almost twice what they pay now for their stations. While the deal was made by the deadline, the details of the agreement have not been made public yet (14).

Sources

1. History of Gannett

2. Background info on the company

3. 40th Annual UBS Global Communications and Communications Conference Slide Show presentation Dec 5, 2012

4. About Captivate

5. 2011 Annual Gannett Company, Inc. Report

6. The Gannett Company, Inc. Leadership Team

7. http://www.stationindex.com/tv/tv-markets

8. 2011 Annual Gannett Company, Inc. Report pgs. 14-17

9. Q3 Earnings, October 15, 2012

10. Google Finance

11. Press Release, December 5, 2012