Tag Archives: HBO

Time Warner Inc.

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By: Nubia Dandridge, John Rattazzi, Johnny Pierce
2016-tw-company_collage-1-layered-300

Time Warner [1]

Company

Time Warner Inc (headquartered in New York City) is an international media and entertainment conglomerate. The conglomerate is segmented into three divisions: Turner is the branch of the company consisting of cable networks and digital media. Home Box Office (HBO) is the company’s domestic premium television and streaming service which includes international premium pay. Warner Bros is the segment of the company primarily responsible for the company’s role in entertainment for television, feature length films, video-games and home video production and distribution [1].

Background

Time Warner Inc. was originally founded in 1923, under the name Warner Brother Pictures Inc. Under the direction of Polish immigrant brothers Harry, Albert, Sam, and Jack Warner, Time Warner Inc. has gone from being a nickelodeon in Pennsylvania, to one of the largest media conglomerates in the world by partnering with Home Box Office Inc. and Turner Broadcasting [2].

Television Success

One of Time Warner Inc.’s most valuable assets is HBO. The premium television service is widely recognized today for its show Game Of Thrones, but their fall series premiere of Westworld has taken viewers by storm.  The series premiere telecast drew 3.3 million viewers across multiple platforms by the following morning.  This opening was 1.1 million viewers greater than the first day Game Of Thrones was released back in 2011 [3]. Westworld has been approved for a second season [4] due to increased viewership from streaming services HBO Go and HBO Now, which allows viewers access to HBO programming without a subscription to the traditional HBO television service.  

Film Success

In September 2016 Time Warner acquired the commercial and tv rights to the “Star Wars”  collection, (valued at $250 million) including “Rogue One: A Star Wars Story” and “Star Wars: A Force Awakens.”  The deal makes TBS and TNT the only networks with legal rights over the series. Time Warner made a strategic move during a volatile in which networks are hustling to lock up as much content that already has a formidable audience attached to it. The DC subsidiary of Warner Bros. is sufficiently lucrative for the entire company. In relation to the 10 DC series on air this season, total revenues for the line up have surpassed $1 billion. The CW, the joint television station owned by Warner Bros. and CBS Corp. is home to half of those series. 

Warner Brothers has seen its share of success since September.  With movies such as Suicide Squad earning a total gross of $325.1 million [5] and Fantastic Beasts and Where to Find Them earning a total gross of $158.1 million [6] in just two weeks has earned Warner Brothers a total gross income of roughly $806 million since the beginning of September. 

Company Fallbacks 

Since September, a negative mark against Time Warner Inc’s overall performance  is due to low ratings for Turner Broadcasting. Turner is most known for it’s networks like TNT, TBS, CNN, Adult Swim, HLN, and Cartoon Network. ratings are down 14% across all networks as younger demographics are opting more for streaming services like Netflix and Hulu. As of more recently, quarter three of 2016 came in with numbers 8% lower than they were this time last year [7]. 

The other recent flaw for Time Warner Inc. has been Warner Brothers.  Asides from three recently released movies, every other movie released after August has struggled to even reach its budget.  If Suicide Squad, Fantastic Beasts and Where to Find Them, and Sully, weren’t counted in the total gross, Warner Brothers would not have made enough money domestically to fund the movies.  While this is upsetting for Time Warner Inc. they cannot be too disappointed because this is the best year [8] that Warner Bros has had since 2009 thanks to releases earlier in the year. 

The financial success of the studio does not come without its qualms. In October 2016, Director Rick Famuyiwa walked away from directing The Flash with mention of creative differences between himself and the studio as the reason for his departure [9]. Before Famuyiwa, Seth Grahame-Smith stepped down from his role as director of the same film. Analysts claim that the tension between the creative vision directors are hired to develop and the executive oversight Warner Bros exercises over such projects could impact the studio’s ability to hire directors in the future, not just for their DC projects.

AT&T and Time Warner Inc.

Time Warner’s market value currently hovers at approximately $62 billion with AT&T in position to buy the company for $85.4 billion (as of October 22nd). In September and October 2016, senior executives from both AT&T and Time Warner met informally to discuss business strategies as well as a potential merger [10] of the two conglomerates. Acquiring Time Warner would allow AT&T to control one of the world’s major providers of pay-TV and one of the nation’s largest wireless and home internet providers. AT&T would also stand to inherit an extensive collection of content and programming from HBO to CNN as well as Cartoon Network and NBA basketball programming. If the deal is approved, Jeff Bewkes will resign from his position as CEO of Time Warner Inc after the transitional phase. President Elect, Donald Trump, however has spoken against the merger having said that his administration “will not approve [the deal]…because it’s too much concentration of power in the hands of too few.”

[11]

Time Warner Finances Going Forward

The news of a merger is coming off of a strong third quarter showing from Time Warner Inc. Coming less than two weeks after the announcement of the AT&T merger, Time Warner reported a third quarter earnings of $1.83 per share on a revenue of $7.2 billion, which was a 9% increase from the expected earnings of $1.37 per share on a revenue of $6.98 billion. These impressive third quarter earnings are a result of many recent successes in content produced by Time Warner, including HBO. Home Box Office saw a 4% increase in revenue to $59 million. Yet, in 2016 while content proved to be king, HBO also saw its content library decrease. With a potential influx of cash due to the potential AT&T merger, HBO can see itself become more like Netflix faster than Netflix can become HBO, contrary to the quote [12] of Netflix CEO Ted Sarandos. Due to the $85 billion dollar pay day Time Warner would receive for the merger, HBO could see its budget for original content increase from $2.2 billion, just a third of what Netflix spends on content. The merger could also result in an affirmation of Jeff Bewkes proposal for “TV Everywhere”[13]. Although the idea has not been a success, AT&T could make it a reality with their wireless subscription package. This idea of Time Warner putting their content “everywhere” will allow for shows like Game of Thrones or Westworld to vastly increase their audience.

Overview

Although many changes are likely coming to Time Warner, no immediate changes will be apparent in the near future. The focus for this next quarter, as well as the new year, will be on accelerating user subscriptions [14] for HBO Now, which could increase in the merger with a bundle package offered with AT&T services.

Sources

Sources:

  1. Top 3 Companies Owned By Time Warner (TWX). Retrieved November 19, 2016. http://www.investopedia.com/articles/markets/102215/top-3-companies-owned-time-warner.asp.
  2. Time Warner Inc. Retrieved November 20, 2016. https://www.britannica.com/topic/Time-Warner-Inc
  3. Westworld’s Shaping Up to Be an Early Ratings Success for HBO. Retrieved October 16, 2016. http://www.vulture.com/2016/10/westworld-premiere-ratings-early-success-for-hbo.html
  4. Westworld: Season One Ratings. Retrieved November 30, 2016. http://tvseriesfinale.com/tv-show/westworld-season-one-ratings/
  5. Suicide Squad. Retrieved November 26, 2016. http://www.boxofficemojo.com/movies/?id=dc2016.htm
  6. Fantastic Beasts and Where to Find Them. Retrieved November 29, 2016. http://www.boxofficemojo.com/movies/?id=fantasticbeasts.htm
  7. Turner Lacking Script For Success. Retrieved November 25, 2016. http://www.broadcastingcable.com/content/turner-lacking-script-success/153449
  8. Warner Bros. Retrieved November 20. http://www.boxofficemojo.com/studio/chart/?studio=warnerbros.htm
  9. ‘The Flash’ Movie Loses ‘Dope’ Rich Famuyiwa (Exclusive). Retrieved on November 2, 2016. http://www.hollywoodreporter.com/heat-vision/flash-movie-loses-dope-director-rick-famuyiwa-942604
  10. AT&T Discussed Idea of Takeover in Time Warner Meetings. Retrieved October 21, 2016. https://www.bloomberg.com/news/articles/2016-10-20/at-t-said-to-discuss-idea-of-takeover-in-time-warner-meetings
  11. What does AT&T, Time Warner Merger mean? Retrieved October 28, 2016. https://www.youtube.com/watch?v=JOt1ZJjLxdo
  12. What the AT&T-Time Warner merger means for HBO. Retrieved October 27, 2016. http://qz.com/818603/what-the-att-time-warner-twx-merger-means-for-hbo/
  13. AT&T’s Time Warner Purchase Acknowledges TV Everywhere’s Failure. Retrieved October 25, 2016. https://www.bloomberg.com/news/articles/2016-10-24/at-t-s-time-warner-purchase-acknowledges-tv-everywhere-s-failure
  14. Time Warner’s Turner Inks Deal for DC Movies. Retrieved November 2, 2016. http://variety.com/2016/biz/news/turner-dc-movies-rights-1201906942/

Time Warner

Posted on by 
Lizzie Michael and Andrew Maercklein
Time Warner, Inc. logo

Time Warner, Inc. logo [1]

Time Warner, Inc.

One Time Warner Center
New York, NY 10019-8016
212-484-8000

Company

Time Warner, Inc. is an entertainment and media conglomerate whose works and influence reaches all over the world. First created in 1989 in a $14 billion merger between Time, Inc. and Warner Communications, Time Warner now owns magazines such as Time, People, and Sports Illustrated; HBO, The CW, and Cinemax, as well as the Turner Broadcasting System, which in turn holds networks such as TBS, CNN and Cartoon Network; DC Comics; and one of the world’s largest production companies, Warner Brothers Entertainment. [2] [3].

Some of Time Warner's assets. [4]

Some of Time Warner’s assets. [4]

The company has undergone a few trouble spots in the past, including a $164 deal with AOL in the year 2000. [5]. The deal, which eventually proved to be misguided and led to major financial losses in 2002, was said to be “the biggest mistake in corporate history” by current CEO and Chairman Jeff Bewkes. [6]. That being said, Time Warner has since rebouded and is currently enjoying success from several of its assets, including HBO and Warner Brothers, and is looking forward to the completion of an acquisition, with a total transaction value of
$108.7 billion, with AT&T. [7].

Who are some key executives?

Financial information

Time Warner is a publicly traded company on the NYSE under the ticket TWX. As of 11/17/16, their current stock price is $93.20, as compared to one of their primary competitors, Walt Disney Co., who is at $98.82. [9]. On Oct. 27 the company announced cash dividends for Common Stock at $0.4025 per share, with a record date of Nov. 30. and a payment date of Dec. 15. [10] [11]. Thanks in part to the AT&T announcement, Time Warner’s stock has been on the upswing, having increased nearly 22.07% since April 2016; additionally, about 67% of analysts covering Warner’s stock rate this as a good time to buy. [11].

TW revenues and earnings per share [12]

TW revenues and earnings per share [12]

In Warner’s 3rd quarter reports for 2016, total revenues for Turner, HBO, and Warner Broadcasting combined were at more than $7 billion, and there was an increase of $153 million in cash and cash equivalents. [13]. With the recently released Fantastic Beasts and Where to Find Them and HBO’s Westworld recently having success, revenues from ticket sales and merchandising for Time Warner can be expected to increase in 2016’s 4th quarter, and should give the company a strong year-end yield. [14].

Warner Brothers

Warner Bros. Logo [14]

Warner Bros. Logo [15]

Warner Bros., which was founded in 1923 and notably produced the first “talkie” in 1927’s The Jazz Singer, is one of the largest production companies in the world, with both New Line Cinema and DC Films in its toolbox. [16]. In 2015, Warner Bros.’ worldwide box office receipts exceeded $3 billion for the ninth consecutive year ($3.71 billion worldwide), and saw both international and domestic reaching the billions. [17].

[18]

The company houses several major franchises, including the Matrix series, the Harry Potter Franchise, and the world of DC Comics. In 2016 alone, multiple films were released to massive success, including Batman v Superman: Dawn of Justice, Sully, Suicide Squad, and Fantastic Beasts and Where to Find Them. Suicide Squad was in theaters for an impressive 14 weeks and earned more than $700 million worldwide, while Fantastic Beasts has been open for less than two weeks and has already made nearly $500 million. [19] [20].

This success will likely carry into 2017, as Wonder Woman, Justice League, and two more animated Lego movies are all slated for wide release. [21].

Machinima's logo [23].

Machinima’s logo [22]

In news besides its releases, Warner Bros. also recently announced it will acquire Machinima, a “global programming service and production company” with a focus on gamer culture. [23]. The deal, which was estimated to be just slightly under $100 million, will allow Machinima to be its own entity within the Warner Bros. Digital Networks. [24].

HBO

HBO logo [31]

HBO logo [31]

Home Box Office, or HBO, is one of Time Warner’s most successful divisions. In terms of its financial performance, in the 2016 third quarter HBO’s revenues increased 4%, or $59 million, to $1.4 billion due to a 5% increase in subscription revenues. [12].

HBO’s content has gone over incredibly well with viewers. HBO took home 22 Primetime Emmys at the 2016 Emmy Awards, the most of any other network for the 15th year in a row. [12] [29]. Shows such as Veep, Game of Thrones, and Last Night with John Oliver all have loyal fan bases, while newcomer Westworld premiered in October 2016 to more than 13 million viewers. [12].

In other news, HBO just recently launched a new video streaming service in Spain, HBO España, that is expected to very well. The service offers both original HBO content, as well as films and programming from other networks as well, like Disney, Nickelodeon, and other Spanish programming. [30].

AT&T Merger

Click here for AT&T and Time Warner Merger (Video): http://nyti.ms/2exY5SK [27]

AT&T is looking to purchase Time Warner, Inc. in a $85 billion deal, and despite many setbacks, AT&T is confident the deal will go through. [25]. Were the FCC to oversee this deal, the time frame would have been elongated and the deal itself would be much less likely to go into effect. However, it is likely the deal will not be subject to the tight restrictions set by the FCC, as the FCC may be excluded from the process and the decision will be made by the Department of Justice. Randall L. Stephenson, the CEO of AT&T, is very optimistic regarding this scenario and said this deal will satisfy not only those looking for earnings growth, but also investors that are simply searching for income. [27]. However, this deal will cause AT&T to push its debt upwards of $190 billion. [27]. The average user of DirecTV Now will pay $35 per month, which translates to $1.32 gross margin, and despite an apparent lack of funding, there are expected to be approximately 15 million paid subscribers by 2020. [26].

AT&T logo []

AT&T logo [28]

Many investors are skeptical of the deal and doubt the level of success predicted by AT&T. AT&T, being the only company of its competitors to move in this direction, will be able to corner a large section of the market before anyone else. Through securing customers with a low price now, AT&T hopes to attract many more consumers in the future while still being able to raise the price of service as necessary. [26]. Furthermore, AT&T wants to boost their wireless business in an attempt to take back some of the market from other wireless companies. They plan to do this by allowing wireless users to watch DirecTV without using data. This is known as zero-rating and it’s frowned upon by the FCC because it would allow for AT&T to reduce competition, especially among its own assets. [25]. Between the low prices as well as other incentives to switch, AT&T is focused on increasing its consumer following as opposed to generating revenue. Revenue will theoretically be the focus after AT&T has accrued a mass following. In addition, it’s predicted there will be less subscription cancellations as well as a large boost in advertising revenue. [25]. Should the deal be successful, it will be one of the largest to date and will push AT&T further ahead of competitors. Should the deal not be approved, or even fail, AT&T will have to tread very carefully to avoid serious damage to the company’s finances, as well as the integrity of the company.

 [27]

Resources

[1] Time Warner Cables Customer Service Phone Number, Office Address, Toll Free Helpline Support. Retrieved November 27, 2016. http://www.officeaddresshelplinenumber.com/time-warner-cables-customer-service-phone-number-office-address-toll-free-helpline-support/

[2] The Creator of Time Warner, Steven J. Ross, Is Dead at 65. Retrieved November 27, 2016. http://www.nytimes.com/1992/12/21/obituaries/the-creator-of-time-warner-steven-j-ross-is-dead-at-65.html

[3] Top 3 Companies Owned By Time Warner (TWX). Retrieved November 27, 2016. http://www.investopedia.com/articles/markets/102215/top-3-companies-owned-time-warner.asp

[4] Company Profile. Retrieved November 27, 2016. http://www.timewarner.com/company

[5] Statistics on Mergers. Retrieved November 27, 2016. https://web.archive.org/web/20120106045040/http://www.imaa-institute.org/statistics-mergers-acquisitions.html

[6] AOL merger was ‘the biggest mistake in corporate history’, believes Time Warner chief Jeff Bewkes. Retrieved November 27, 2016. http://www.telegraph.co.uk/finance/newsbysector/mediatechnologyandtelecoms/media/8031227/AOL-merger-was-the-biggest-mistake-in-corporate-history-believes-Time-Warner-chief-Jeff-Bewkes.html

[7] AT&T to Acquire Time Warner. Retrieved November 27, 2016. http://about.att.com/story/att_to_acquire_time_warner.html

[8] Senior Corporate Executives. Retrieved November 27, 2016. http://www.timewarner.com/company/management/senior-corporate-executives

[9] TWX: NY. Retrieved November 27, 2016. https://www.bloomberg.com/quote/TWX:US

[10] Time Warner Declares Regular Quarterly Cash Dividend. Retrieved November 27, 2016. http://www.timewarner.com/newsroom/press-releases/2016/10/27/time-warner-declares-regular-quarterly-cash-dividend

[11] Dividend Action: Time Warner Inc. (NYSE:TWX) advises to “Mark your calendars” for Dec 15, 2016; dividends expected to reach $0.40. Retrieved November 27, 2016. http://friscofastball.com/2016/11/27/dividend-action-time-warner-inc-nysetwx-advises-to-mark-your-calendars-for-dec-15-2016-dividends-expected-to-reach-0-40/

[12] Time Warner Inc. Revenue & Earnings Per Share (EPS). Retrieved November 27, 2016. http://www.nasdaq.com/symbol/twx/revenue-eps

[13] Earnings Releases & Related Materials. Retrieved November 27, 2016. http://ir.timewarner.com/phoenix.zhtml?c=70972&p=quarterlyearnings

[14] Weekend Box Office: November 25-27, 2016. Retrieved November 27, 2016. http://www.boxofficemojo.com/weekend/chart/

[15] Warner Bros. Logo Design Evolution. Retrieved November 28, 2016. http://annyas.com/screenshots/warner-bros-logo/

[16] Warner Bros. Entertainment Inc. Retrieved November 28, 2016. http://www.warnerbros.com/studio/divisions/warner-bros-entertainment-inc

[17] Warner Bros. Pictures. Retrieved November 28, 2016. http://www.warnerbros.com/studio/divisions/warner-bros-pictures

[18] Fantastic Beasts and Where to Find Them – Final Trailer [HD]. Retrieved November 28, 2016. https://www.youtube.com/watch?v=Vso5o11LuGU

[19] Box Office Mojo: Suicide Squad. Retrieved November 28, 2016. http://www.boxofficemojo.com/movies/?id=dc2016.htm

[20] Box Office Mojo: Fantastic Beasts and Where to Find Them. Retrieved November 28, 2016. http://www.boxofficemojo.com/movies/?id=fantasticbeasts.htm

[21] Warner Bros., Quietly Thriving, Recasts Its Own Story. Retrieved November 28, 2016. http://www.nytimes.com/2016/11/08/business/media/warner-bros-quietly-thriving-recasts-its-own-story.html

[22] Machinima. Retrieved November 28, 2016. http://www.machinima.com/

[23] Warner Bros. Entertainment to Acquire Machinima. Retrieved November 28, 2016.  http://www.warnerbros.com/studio/news/warner-bros-entertainment-acquire-machinima

[24] Warner Bros. Acquires Full Control of Machinima. Retrieved November 28, 2016. http://variety.com/2016/digital/news/warner-bros-acquires-machinima-1201920793/

[25] McAlone, Nathan. “Here’s Why AT&T Is Buying Time Warner, and Why It Thinks the Government Can’t Stop the Sale.” Business Insider. Business Insider, Inc, 15 Nov. 2016. Web. 28 Nov. 2016. http://www.businessinsider.com/att-time-warner-merger-government-regulation-2016-11

[26] Molla, Rani, and Shira Ovide. “AT&T Plays It Forward.” Bloomberg.com. Bloomberg, 23 Nov. 2016. Web. 28 Nov. 2016. https://www.bloomberg.com/gadfly/articles/2016-11-23/at-t-wants-digital-video-share-with-direct-tv-now

[27] Morgenson, Gretchen. “The AT&T-Time Warner Merger: A Match Built on Hope.” The New York Times. The New York Times, 28 Oct. 2016. Web. 28 Nov. 2016.  http://www.nytimes.com/2016/10/30/business/the-att-time-warner-merger-a-match-built-on-hope.html?_r=0

[28] LLC, UnderConsideration. “Reviewed.” Brand New: New Logo and Identity for AT&T by Interbrand. N.p., n.d. Web. 28 Nov. 2016.  http://www.underconsideration.com/brandnew/archives/new_logo_and_identity_for_att_by_interbrand.php#.WDyz-6IrL_Q

[29] How FX Broke HBO’s Grip on the Emmy Awards. Retrieved November 28, 2016. http://fortune.com/2016/09/19/emmy-awards-2016-hbo-fx/

[30] HBO Launches in Spain, Adds Content from Disney, Nickelodeon. Retrieved November 28, 2016. http://variety.com/2016/biz/global/hbo-espana-spain-disney-nickelodeon1201927778-1201927778/

[31] HBO Logos. Retrieved November 28, 2016. https://www.homeboxoffice.com/lodging/cmp/logos.html

Time Warner (TV/Cable channels only)

Posted on by 
by JESSE KATZENSTEIN
Time Warner Inc. Logo

[1]

Time Warner Inc.
One Time Warner Center
New York, NY 10019-8016
212-484-8000
www.timewarner.com
[2]

About

Time Warner Inc. is one of the largest media corporations in the United States, specializing in TV, film, and entertainment.  Its operating divisions consist of Turner Broadcasting System, Home Box Office Inc., and Warner Bros. Entertainment. [3]

Executives

Chairman and CEO – Jeff Bewkes

[4]

[4]

EVP and CFO – Howard M. Averill

Howard M. Averill Executive Vice President and CFO

[5]

EVP and General Counsel – Paul T. Cappuccio

Paul T. Cappuccio, Executive Vice President and General Counsel

[6]

Financials and Company Plans

Time Warner is a publicly traded company.  In 2014, their revenue grew to $27.36 billion, which is up 3% from their 2013 annual revenue of $26.46 billion. [7]  In the release of Time Warner’s Full Year 2014 Financial Results, Time Warner stated that their fourth quarter revenues decreased by 1% to $7.5 billion and can be attributable to a decrease in income from Warner Bros.  It was also stated that Home Box Office Inc., or HBO, and Turner Broadcasting Company were responsible for counterbalancing an even larger decrease in revenue. [8]

In a story released by Bloomberg.com, it was said that CBS Corp. was thinking of a merger deal with Time Warner.  CEO of CBS Corp., Leslie Moonves, is said to have mentioned the idea to CEO Jeff Bewkes in meetings between the two companies last year. [9]  Critics claim this merger would benefit both companies regarding their position in sports broadcasting, and this powerful advantage would make this powerhouse “a good alternative for ESPN.” [10]  However, Jeff Bewkes seems to be satisfied with keeping Time Warner and CBS separate.

Lulegacy.com released an article on April 16th revealing the results of 30 ratings firms who have been analyzing Time Warner’s stock.  The average stock price target came out to $91.71.  A little over two-thirds of the analysts put a “Buy” recommendation on the stock, while just 9 of the analysts gave the stock a “Hold” recommendation. [11]

HBO

HBO

[12]

According to Time Warner’s company website, HBO is the top domestic premium pay television service in the United States.  This service offers both HBO programming and Cinemax programming. [13]  HBO is known for its original television series such as Game Of Thrones, Girls, True Detective, and Silicon Valley. [14]  Cinemax is known for its original television series such as The Knick, Banshee, and Strike Back. [15]  Both services also offer programming of movies released theatrically.  HBO’s most popular and successful show, Game Of Thrones, has won Primetime Emmy Awards in every year of its existence. [16]  Its fifth and most current season debuted on April 12th of this year, but was subject to many news stories when almost half of the season was linked on illegal websites all over the world.  Jeff Bewkes’ comments were surprisingly optimistic when he explained that these leaks can offset some paid advertising, and joked about how distributing the most pirated show in the world is “better than an Emmy.” [17]

On April 7th, Time Warner announced that HBO NOW is now available to Apple and Optimum Online customers.  HBO NOW is HBO’s streaming service where consumers can stream all available episodes from their favorite HBO shows on all compatible devices.  The service costs $14.99 per month, but if consumers purchase the service in the month of April, they are granted with a 30-day free trial. [18]

Turner Broadcasting System

turner_blue_r

[19]

Turner Broadcasting system controls and manages some of the leading television networks in the country.  These networks cover programming in entertainment, news, sports, and animation, among other television genres.  Turner’s networks TNT and TBS are most notably known for their broadcasting of major sporting events such as the NBA Playoffs and the NCAA College Basketball Tournament. [20]

TNT and TBS both had a huge turnout this year during the NCAA tournament.  Time Warner released a statement on March 29th stating that the Kentucky vs. Notre Dame broke the record for the most-viewed and highest-rated college basketball game in cable TV history.  As of that day, total viewership was up 2% from the previous year. [21]  A little over a week later, the semifinal game between Kentucky and Wisconsin broke one of those records; the most-viewed college basketball game in cable TV history.  Total audience for the Final Four across all networks (TBS, TNT, truTV) attained 41.7 million viewers, a 24% increase from 2014. [22]

As for original content, Turner delivers the #1 comedy with adults 18-49 in The Big Bang Theory (TBS), and delivers the #1 original animated series in Mr. Pickles and Squidbillies (Adult Swim).  For kids, Cartoon Network is the leading channel that holds “49 of basic cable’s top 50 telecasts for young boys.”  Turner recently announced a revamp of the Cartoon Network live streaming app in Australia called Cartoon Network Watch and Play. [23]

In the news genre, CNN is Turner’s premier news network.  It is one of the first 24-hour news networks that provides breaking news across all media platforms.  Its popular programs include Anderson Cooper 360, Newsroom, Situation Room, and State of the Union. [24]

Warner Bros. Entertainment

WarnerBroslogo.300dpi

[25]

Warner Bros. Entertainment is a studio responsible for Time Warner’s influence in the TV, film, and home entertainment industries, as well as being a global distribution company. [26]  For it’s work in film, 2014 became the 14th consecutive year Warner Bros. Picture Groups grossed $1 billion or more at both the domestic and international box office. [27]  It has also done what no other studio has done, which is gross over $3 billion at the international box office for two consecutive years.  On March 30th, Warner Bros. reported their new agreement with Redbox, a company that provides self-service kiosks for consumers to purchase movies and video games on various platforms.  There are 35,000 kiosks across the country.  This two-year agreement leaves a 28-day window for consumers to purchase Warner Bros. films on Blu-ray and DVD. [28]

The Future for Time Warner 

The future may or may not be bright for Time Warner.  At this point in the year, their action plan should be to play the waiting game and see how all of their assets perform.  There are high hopes for the current season of Game Of Thrones despite the leaking scandal.  Warner Bros. has an exciting lineup of movies coming out in late spring/early summer including The Water Diviner, Pan, Magic Mike XXL, and San Andreas.

Sources

[1] – Time Warner Logo, Retrieved, April 17, 2015

[2] – Time Warner Contact Info, Retrieved, April 17, 2015

[3] – Time Warner Inc. Company Page, Retrieved, April 17, 2015

[4] – Jeff Bewkes Bio Page, Retrieved, April 17, 2015

[5] – Howard M. Averill Bio Page, Retrieved, April 17, 2015

[6] – Paul T. Cappuccio Bio Page, Retrieved, April 17, 2015

[7] – Time Warner Annual Earnings, Retrieved, April 17, 2015

[8] – Time Warner Q4/Full Year 2014 Results, Retrieved, April 17, 2015

[9] – “Moonves Said To Have Mulled Time Warner Deal As CBS Plots,” Bloomberg Business, Retrieved, April 17, 2015

[10] – “Karmazin: CBS and Time Warner Inc. Need To Merge,” Fierce Cable, Retrieved, April 17, 2015

[11] – “Time Warner Recieves $91.71 Consensus Price Target From Brokerages,” The Legacy, Retrieved, April 17, 2015

[12] – HBO Logo, Retrieved, April 17, 2015

[13] – HBO Company Page, Retrieved, April 17, 2015

[14] – HBO Website, Retrieved, April 17, 2015

[15] – Cinemax Website, Retrieved, April 17, 2015

[16] – Game Of Thrones Awards List, IMDb, Retrieved, April 17, 2015

[17] – “Game Of Thrones Season 5 Premiere Set Rating Record Despite Episode Leak,” Forbes, Retrieved, April 17, 2015

[18] – HBO NOW Press Release, Retrieved, April 17, 2015

[19] – Turner Broadcasting System Logo, Retrieved, April 17, 2015

[20] – Turner Broadcasting System Company Page, Retrieved, April 17, 2015

[21] – “2015 NCAA Scores Highest Average Viewership in 22 Years,” Time Warner, Retrieved, April 17, 2015

[22] – “2015 Final Four Semifinals Reach More Than 41 Million Viewers,” Time Warner, Retrieved, April 17, 2015

[23] – “Cartoon Network Activates Live Streaming App,” Time Warner, Retrieved, April 17, 2015

[24] – List of CNN TV Shows, Retrieved, April 17, 2015

[25] – Warner Bros. Entertainment Logo, Retrieved, April 17, 2015

[26] – Warner Bros. Entertainment Company Website, Retrieved, April 17, 2015

[27] – Warner Bros. Entertainment Company Page, Retrieved, April 17, 2015

[28] – “Redbox, Warner Bros. Announce New Agreement,” Time Warner, Retrieved, April 17, 2015

Time Warner (TV/cable channels only)

Image

by Cameron MacPherson
 
Time Warner, Inc.

[1] Time Warner Logo

 Time Warner Inc.
One Time Warner Center
New York, NY 10019-8016
212-484-8000
www.timewarner.com

About

          Time Warner, Inc. is an American media company with properties in the television and film industries, including cable properties under the Turner Broadcasting System, its premium cable property Home Box Office (HBO), and its production unit Warner Brothers Studios. [2]

Time Warner has three major divisions: HBO, Turner, and Warner Brothers

[3] Time Warner has three major divisions: HBO, Turner, and Warner Brothers

Executives

jbewkes_0

[4] Jeff Bewkes, Chairman and CEO

gginsberg

[6] Gary L. Ginsberg, Executive VP, Corporate Marketing and Communications

Howard M. Averill, Executive Vice President and CFO

[5] Howard M. Averill, Executive Vice President and CFO

 

Financials and Strategies

           Time Warner Inc., a publicly traded company, posted a $29.8 billion revenue for 2013, a 4% increase from 2012. [7] On July 16, 2014, news broke that Time Warner had rejected an $80 billion buyout offer from 21st Century Fox. The proposal offered $85 a share for a stock that, just before the announced rejection, sat just above $70 a share. [8] CEO Jeff Bewkes has made a commitment to reach the $85 per share target to encourage stockholders that the company has growth potential. Under Bewkes, the financial strategy of the company has been to minimize expenses to maximize profits. Time Warner Inc. has recently spun off Time Warner Cable and Time Inc. properties, retaining only its Turner cable properties, HBO, and the Warner Brothers Studios. [9]

Time Warner rejected a buyout bid from 21st Century Fox

[12 ] Time Warner rejected an $80 billion buyout bid from 21st Century Fox

            Even with a smaller portfolio of properties, the emphasis on streamlined efficiency still dominates Time Warner’s financial strategy. In recent months, there have been layoffs in all three of Time Warner’s divisions. Turner Broadcasting offered a buyout option to 6% of its staffers in August, two months before announcing that the company would cut 1,475 jobs.[10][11] Time Warner cut seven percent, or 150, of its domestic employees for HBO in late October, one week before cutting 1,000 jobs at Warner Brothers Studios. [13][14]

            The strategy, to this point, has been successful. The newly enacted efficiencies and bold strategies for expansion of Time Warner’s HBO property have led to a surge in market valuation. On November 30, the price of Time Warner’s stock reached $85.12 per share, 12 cents above the buyout offer from 21st Century Fox in July (before falling slightly below the line the next day). [15]

[13] A graph showing the price of Time Warner's stock prices over the last three months (TWX)

[16 ] A graph showing the price of Time Warner’s stock prices over the last three months (TWX)

HBO Developments

HBO, a division of Time Warner

[17 ] HBO, a division of Time Warner

 According to Time Warner, a major reason for rejecting the buyout offer was the growth potential of HBO. On September 16, ten days after 21st Century Fox CEO Rupert Murdoch withdrew his buyout offer, Time Warner announced plans for a fourth quarter marketing push for HBO across broadcast, cable, and digital platforms. [18]  A week later, HBO partnered with AT&T to offer customers broadband service, HBO GO, and Amazon’s Prime membership for a limited time offer. [19] The move, similar to Comcast’s “Internet Plus” package, signaled another step towards unbundling HBO from pricey cable subscriptions. Just a month after that, Time Warner made a major announcement that expanded on this departure from cable bundles. Time Warner stated that it planned to offer a standalone streaming platform through its online HBO GO service starting in 2015. The service will be available without a cable subscription to HBO, using broadband as its distribution channel. [20] While the details about available programming and distribution channels are yet to be released, many analysts predict the over-the-top service will be marketed towards cord-cutters and millenials rather than those with existing HBO subscriptions. [21] 

            With the new online streaming service, Time Warner hopes to attract customers to HBO who might otherwise be deterred by cable’s lofty price tag. Additionally, it has positioned itself as a viable competitor to Netflix in the digital arena. HBO has fewer domestic subscribers than Netflix, but far more international subscribers; HBO boasts 130 million global subscribers to Netflix’s 50 million. [22] In recent months, Time Warner has sought to expand this international presence. HBO struck a deal with Chinese content distributor Tencent Holdings Ltd., granting the Chinese media giant the exclusive rights to distribute HBO’s original programming. Tencent Video, the company’s online streaming site, will air episodes of HBO shows that have become wildly popular in China through piracy sites. [23] Executives at HBO hope that this move will cut down on piracy, and create a loyal fan base in the world’s most populous country. 

Programming

HBO          

Boardwalk Empire

[24] In 2014, HBO aired the final season of its hit crime show, “Boardwalk Empire”

HBO is known for its award winning original programming and loyal fan bases, particularly with hits like “Game of Thrones,” and “True Detective.” One such program, the smash crime hit “Boardwalk Empire,” finished its television run after five seasons. The series, which has won 18 Emmys, had a strong showing with 2.3 million viewers tuning in live for the series finale. When coupled with a same-night rerun and HBO GO statistics, total same-day viewers exceeded 6.6 million. [25]

HBO launched the final season of its news drama "The Newsroom" [26]

[27 ] HBO launched the final season of its news drama “The Newsroom”

            HBO launched three new shows in its Sunday lineup, including the third and final season of Aaron Sorkin’s “The Newsroom.” The premiere of the truncated season reached a disappointing 1.2 million viewers live, a 40% decrease from the season two premiere. This year, the series does not benefit from the strong lead-ins of “True Blood” and “Boardwalk Empire,” leading to decreases in live ratings. [26]

            It should be noted that live viewership is not as important for HBO due to its lack of advertising. Only about 25 to 30 percent of viewers watch programs live on HBO, as many viewers use the on-demand services or the web-based HBO GO. [28]

 Turner

Turner CEO John Martin [#]

[31 ] Turner CEO John Martin

            Turner Broadcasting and its CEO John Martin have expressed a commitment to take more “creative risks,” and announced that the company would double its funding for original programming by the end of 2018. [29] Turner’s TBS and TNT channels have greatly benefited from airing live sporting events. Alongside Disney, Time Warner renewed its rights to air live NBA games through the 2024-2025 season. TNT is granted the rights to broadcast 64 games a year. [30] 

            The 2014 American League Championship Series on TBS was the most viewed MLB playoffs on the network since 2010. The 2014 ALCS averaged 4.3 million viewers, despite featuring teams from mid-sized markets. [32] Because sporting events can draw large numbers of live viewers, Turner is able to charge higher prices for advertising and licensing fees. Thus, investing in live sporting rights will continue to be a major component of Turner’s business strategy.

            The mass viewership of sporting events gives Turner additional leverage in negotiations with television distributors. When contract negotiations were stalling between Dish Network and Time Warner in October, Dish Network suddenly blacked out many of Turner’s cable channels, including CNN, TruTV, and Cartoon Network. Dish Chairman Charlie Ergen stated that while blacking out these channels was a “non-issue,” it would be “more painful” to take down the popular Turner channels Dish had left running: TBS and TNT, which both carry major sporting events. [33]

Future

            The future of Time Warner will be heavily scrutinized by corporate analysts. The question remains: can Time Warner create sustained growth, or was it foolish to pass

[34] The Time Warner Center, headquarters of Time Warner, Inc.

[34] The Time Warner Center, headquarters of Time Warner, Inc.

on the 21st Century Fox buyout offer? Time Warner has made decisions to bring its stock prices up in both the short-term, through corporate restructuring and job layoffs, and the long-term, through strategic HBO expansions and property spinoffs. Only sustained growth, most likely fostered by HBO’s continued expansion and Turner’s programming decisions, will determine the success of Time Warner.

[1] Time Warner Inc. logo. Timewarner.com, retrieved 1 December 2014

[2] Time Warner Inc. Timewarner.com, retrieved 1 December 2014

[3] Time Warner Operating Divisions. Timewarner.com, retrieved 1 December 2014.

[4] Jeff Bewkes bio page. Timewarner.com, retrieved 1 December 2014.

[5] Howard Averill bio page. Timewarner.com, retrieved 1 December 2014.

[6] Gary Ginsberg bio page. Timewarner.com, retrieved 1 December 2014.

[7] Time Warner’s quarterly reports. Ir.timewarner.com, retrieved 1 December 2014.

[8] “Time Warner rejected $80B offer from 21st Century Fox: Sources”. CNBC, 16 July 2014. Retrieved 1 December 2014.

[9] “Time Warner Profit Tops Estimates as CEO Pursues Growth”. Bloomberg.com, 5 November 2014. Retrieved 1 December 2014.

[10] “Turner Broadcasting offers voluntary buyouts”. CNN Money, 26 August 2014. Retrieved 1 December 2014.

[11] “Turner Broadcasting, Home of CNN, TBS and TNT, Will Cut 1,475 jobs”. The New York Times, 6 October 2014. Retrieved 1 December 2014.

[12] “Time Warner’s HBO to cut 7 percent of staff”. Reuters, 28 October 2014. Retrieved 1 December 2014.

[13] “Warner Bros. Layoffs Beginning Tuesday to Eliminate Roughly 1,000 Jobs”. The Hollywood Reporter, 3 November 2014. Retrieved 1 December 2014.

[14] Twenty First Century Fox logo. Logopedia, retrieved 1 December 2014.

[15] Time Warner (TWX) stock. MarketWatch, retrieved 1 December 2014.

[16] Graph of TWX stock. Google Finance, retrieved 1 December 2014.

[17] HBO logo. Homeboxoffice.com, retrieved 1 December 2014.

[18] “Time Warner Plans HBO Marketing Push to Speed Growth”. Bloomberg.com, 18 September 2014. Retrieved 1 December 2014.

[19] “AT&T Lures Cord Cutters With $39-a-Month Deal for Broadband, Amazon Prime and HBO”. The Wall Street Journal, 23 September 2014. Retrieved 1 December 2014.

[20] “HBO Plans New Streaming Service, With Eye on Cord Cutters”. The New York Times, 15 October 2014. Retrieved 1 December 2014.

[21] “Before HBO Starts Streaming, Time Warner Wants to Make Big Cable Happy”. Businessweek, 5 November 2014. Retrieved 1 December 2014.

[22] “The battle between Netflix and HBO is just beginning. And this man holds the key”. The Washington Post, 28 November 2014. Retrieved 1 December 2014.

[23] “Tencent to Distribute HBO Dramas, Movies Online in China”. Nadsaq, 28 November 2014. Retrieved 1 December 2014.

[24] Boardwalk Empire poster. IMDB, retrieved 1 December 2014.

[25] “‘Boardwalk Empire’ Ratings: Series Ends With 2.3M Watching HBO Finale”. Deadline, 27 October 2014. Retrieved 1 December 2014.

[26] “HBO Has a Quiet Sunday With ‘Newsroom’ and ‘Comeback’ Returns”. The Hollywood Reporter, 11 November 2014. Retrieved 1 December 2014.

[27] Businessweek, ibid.

[28] The Newsroom poster. IMDB, retrieved 1 December 2014.

[29] “Turner Broadcasting CEO Pledges to Double Original Programming Investment”. The Hollywood Reporter, 12 November 2014. Retrieved 1 December 2014.

[30] “Walt Disney, Time Warner Said to Renew NBA TV Contracts”. Bloomberg.com, 6 October 2014. Retrieved 1 December 2014.

[31] John Martin bio page. Turner.com, retrieved 1 December 2014.

[32] “TBS Finishes Its Most-Viewed MLB Postseason Since 2010”. Multichannel.com, 16 October 2014. Retrieved 1 December 2014.

[33] “Turner Warns Dish Users That TNT & TBS Might Follow CNN, Toons Going Dark”. Deadline, 18 November 2014. Retrieved 1 December 2014.

[34] Associated Press file image of the Time Warner Center. Syracuse.com, 08 August 2013. Retrieved 1 December 2014.

Netflix

Posted on by 
by Micaela Mueller
logo

Company Logo – www.netflix.com

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

 Executives [1]

reed hastings

Reed Hastings, Founder and CEO

david wells

David Wells, CFO

 

 

 

 

 

 

 

 

Twani Cranz, Chief Talent Officer

Twani Cranz, Chief Talent Officer

kelly bennet

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

net mail 1

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].

Screen Shot 2014-11-30 at 7.38.49 PM

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 16th, the price dropped to $361.70 and eventually reached it’s lowest share price of $346.59 on November 30th [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

international

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].

chelsea handler 1

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 10th, 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

crouching tiger

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 2nd, 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

marcopolo

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 13th 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].

grace and frankie

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

 

 

 

 

 

Time Warner (TV/cable channels only)

Posted on by 
 by Bridget Parker
                                                                                                                                                                                                   Time Warner Logo [1]

History of Time Warner

Time Warner Inc., is a mega media conglomerate that dominates both the film and television entertainment sectors. During the late 1980’s, there was a period of buyout in which Time Inc. was looking to merge with another company rather than be assumed fully by some unfamiliar corporation. Warner Communications’ seemed to be perfect match and they partnered in 1990, and thus Time Warner, Inc. was born [2].

Operating Divisions

Time Warner’s Operating Divisions include: Home Box Office (or more commonly referred to as HBO), Turner Broadcasting System, Inc., and Warner Bros. Entertainment [3].

HBO

hbo
HBO Logo [4]
HBO-Max-blog-3

HBO and its sister-network Cinemax [6]

HBO is a leading subscription-based television service offering two television networks, HBO and Cinemax. In 2013, HBO maintained its #1 spot on the domestic front as the highest-rated premium tv service, in both primetime and total day. As a global force, both HBO and Cinemax are accessible in over 60 countries, and HBO’s original programming is licensed to TV networks in over 150 [5].

Known for pushing the envelope with edgy and compelling dramas, HBO has a reputation for racking up awards every year and this year was no exception. Starting off 2014, HBO received 19 Primetime Emmy Awards, with True Detective leading the pack, coming in at five awards. After becoming an overnight success, the second season was ordered and in recent news, the cast for Season 2 has officially signed on. The cast will be comprised of: Colin Farrell, Vince Vaughn, Rachel McAdams, Taylor Kitsch and Kelly Reilly [7].

boardwalk

Boardwalk Empire Final Season Poster [9]

Among other hit shows, HBO concluded the fifth and final season of Boardwalk Empire in October. While the finale rolled in at 2.3 million viewers and was up 7% from last year’s, it was still down from this year’s premiere. Also, it is important to note that the finale was aired multiple times, and these numbers are not calculated from just the regular timeslot, but take into account viewers tuning in at any of the various times [8].

The Newsroom Final Season Poster [11]

Also on the topic of series finales is Aaron Sorkin’s The Newsroom, which premiered on November 9th for its third and final season [10]. From the beginning, critics argued that the show seemed to fall short of what is expected from Sorkin. When the show wasn’t immediately picked up for a third season in traditional HBO fashion, it seemed the ratings began to reflect those critiques.

This season the ratings continue to dive, dropping almost 45% in its premiere in comparison to last season’s. To add insult to injury, the formerly summer based show decided instead on a fall launch, forcing it to go up against AMC’s fan-favorite and rating-generator, The Walking Dead [12].

As for the remainder of the fall slate, The Comeback has hardly made any sort of comeback, drawing less than half a million viewers. The lack of viewership seems to be attributed to the fact that it is returning after a 10-year hiatus [13]. Also, the return of Getting On in its second season has definitely drawn praise from viewers and critics, but the numbers just still aren’t there [14].

Looking forward, HBO has confirmed a January 11th, 2015 back-to-back half-hour lineup. The reigning half-hours return with Girls and Looking, followed by a new series called Togetherness [15]. From brothers Jay and Mark Duplass, comes a dramedy about two couples living together in Los Angeles, trying to mend their respective relationships, while attempting to follow their own individual dreams [16].

On the business end of things, the company recently announced that they will offer a stand-alone HBO streaming service as of 2015 [18]. This news shocked devout HBO subscribers and media professionals alike, due heavily in part to the fact that there has been a great deal of discussion surrounding whether or not HBO would ever form a stand-alone streaming service housing all of their original programming, without requiring a television subscription. However, HBO’s long-standing answer has always been a firm “no”.

Richard Plepler at the Time Warner Inc. Investor Meeting [19]

Nonetheless, the over-the-top, stand-alone service will become reality next year. At a Time Warner, Inc. investor meeting, Richard Plepler, CEO of HBO, explained the reasoning behind the move, saying that this “…is a large and growing opportunity that should no longer be left untapped. It is time to remove all barriers to those who want HBO” [20].

Turner

turner_blue_r

Turner Broadcasting System, Inc. Logo [21]

Turner Broadcasting System, Inc. is a mega-media conglomerate that supervises news, entertainment, sports, animation, young adult and children media networks. With a plethora of leading television networks, Turner reaches a vast range of demographics.

brand_stack

Turner’s Brands [22]

 Recent News

Kevin_Reilly

Kevin Reilly, the new face of TNT and TBS [26]

In October, Kevin Reilly was appointed president of TNT and TBS as well as chief creative officer of Turner Entertainment in October. He arrives during a period of upheaval that is “Turner 2020”. The explanation of this re-brand is that Turner is trying to be more cost efficient, yet expand in the programming department [23]. More importantly, this attempt to revamp came only after 21st Century Fox tried to acquire Time Warner [24].

Under Turner 2020, TNT has already cancelled three shows (Dallas, Franklin & Bash, and Perception) [25]. Although all three have consistently dropped in viewership, more so they don’t align with the move toward edgier entertainment [27].

Other sectors of the overhaul include Boomerang, the popular Cartoon Network derivative, that brings classic cartoons to today’s kids. However, the network will be re-introduced globally to include both the vintage shows parents remember, and new contemporary ones [28].

Joint NBA TNT Logo [29]

Turner also reached a deal with the NBA that added 12 live regular season games per year to air on TNT. Although Turner and the NBA have a history together, this partnership would make TNT home to opening night and more NBA Playoff games than any other network. This includes sought after Thursday night doubleheaders, All-Star Weekend events, and one of the Conference finals [30]. Most substantially, Turner Sports’ TV Everywhere rights will apply to all NBA Content, giving them the power to distribute content across various digital platforms [31].

In other sports news, TBS averaged 4.3 million total viewers in the MLB Postseason, making it the most-viewed postseason telecast since 2010 [32].

turner-dish-channels-lost

Turner channels that Dish customers lost [34]

However, the most significant of Turner’s updates was the Dish – Turner dispute. On October 21st, 2014 Dish subscribers had channels blackout which was the result of the two companies distribution agreement expiring before they arrived at an updated agreement [33]. The carriage dispute ragged on for two weeks, neither company admitting fault other than that of the other. Dish Chairman Charlie Ergen implied that Dish was ready to drop the channels permanently, when he stated:

“We would save a big, big, big check from a cash flow perspective…it’s hard to pay a double-digit price increase for something that people are watching half as much as they used to watch. It’s Turner’s job to make their product better. Not ours” [35].

Needless to say, the channels were reinstated in November after the two decided on a contract extension pending a longer-term agreement [36].

Financials

Summary of Time Warner Stock [38]

Time Warner’s 3Q highlights include:

  • Revenue up 3% to $6.2 billion
  • Both Turner and HBO with a 10% subscription increase
  • Adjusted EPS climbed 34% to $1.22

[37]

Annual Results:

2013 Adjusted EPS, Free Cash Flow and Op Income [39]

Screenshot at Dec 02 10-08-47

2013 Total Shareholder Return [40]

     

Key Executives

Chairman and Chief Executive Officer, Time Warner Inc.

Jeff Bewkes                     Chairman and Chief Executive Officer, Time Warner Inc. [41]

Executive Vice President and Chief Financial Officer

Howard M. Averill                   Executive Vice President and      Chief Financial Officer [42]

 

 

 

 

 

 

 

 

 

 

 Sources

[1] Time Warner’s Logo, LinkedIn.com, RT: 12/01/2014

[2] The TWC Story, TimeWarnerCable.com, RT: 12/01/2014

[3] Time Warner Operating Divisions, TimeWarner.com, RT: 12/01/2014

[4] HBO Logos, HomeBoxOffice.com, RT: 12/01/2014

[5] Time Warner Operating Divisions: Home Box Office, TimeWarner.com, RT: 12/01/2014

[6] HBO and Cinemax Logo Package, Xfinity.Comcast.net, RT: 12/01/2014

[7] True Detective Season 2 Cast Announced, HBO.com, 11/14/2014, RT: 12/01/2014

[8] “Ratings: HBO’s ‘Boardwalk Empire’ Gets Slight Boost With Series Finale”, Variety.com, 10/27/2014, RT: 12/01/2014

[9] Boardwalk Empire Final Season Poster, HighlightHollywood.com, 7/19/2014, RT: 12/01/2014

[10] “HBO confirms November 9 Premieres for ‘The Newsroom’, ‘The Comeback’ & ‘Getting On”, TVByTheNumbers.Zap2it.com, 9/9/2014, RT: 12/01/2014

[11] The Newsroom Final Season Poster, Collider.com, 10/2014, RT: 12/01/2014

[12] “Newsroom‘ Ratings Down In Return, ‘Comeback’ Debuts Soft”, Deadline.com, 11/11/2014, RT: 12/01/2014

[13] “The Comeback season premiere recap: ‘Valerie Makes a Pilot”, EntertainmentWeekly.com, 11/09/2014, RT: 12/01/2014

[14] “HBO’s ‘The Comeback’ Is A Ratings Flop”, Vulture.com, 12/01/2014, RT: 12/01/2014

[15] “Girls’, ‘Togetherness’ & ‘Looking’ Premiere Dates Set On HBO”, Deadline.com, 11/06/2014, RT: 12/01/2014

[16] “See the first trailer for HBO Comedy ‘Togetherness’ from the Duplass brothers”, EntertainmentWeekly.com, 11/07/2014, RT: 12/01/2014

[17] Togetherness Season 1: Trailer (HBO), Youtube.com, 11/30/2014, RT: 12/01/2014

[18] “HBO Chairman and CEO Richard Plepler Announces HBO to Offer a Stand-Alone HBO Streaming Service in 2015”, TimeWarner.com, 10/15/2014, RT: 12/01/2014

[19] Richard Plepler at the Time Warner Inc. Investor Meeting, TVOverMind.com, 10/15/2014, RT: 12/01/2014

[20] “HBO to offer online-only option next year — no more need for cable subscription”, TheWashingtonPost.com, 10/15/2014, RT: 12/01/2014

[21] Turner Logo, Promaxbda.org, RT: 12/01/2014

[22] Turner Company Overview, Turner.com, RT: 12/01/2014

[23] “Time Warner C.F.O. sheds some light on ‘Turner 2020″, CapitalNewYork.com, 9/18/2014, RT: 12/01/2014

[24] “Turner Broadcasting, Home of CNN, TBS and TNT, Will Cut 1,475 jobs”, TheNewYorkTimes.com, 10/6/2014, RT: 12/01/2014

[25] 2013-14 TV Season Scorecard, MetaCritic.com, 8/8/2013, RT: 12/01/2014

[26] “Kevin Reilly on Turner Move, Industry Rumors and Leaving Broadcast Forever”, TheHollywoodReporter.com, 11/4/2014 RT: 12/01/2014

[27] “Franklin & Bash’ Cancelled By TNT After Four Seasons”, Deadline.com, 11/11/2014, RT: 12/01/2014

[28] “Turner Rebrands Boomerang Globally”, TimeWarner.com, 10/14/2014, RT: 12/01/2014

[29] NBA on TNT Logo, Blogs.Adobe.com, RT: 12/01/2014

[30] “Turner Broadcasting and the National Basketball Association Reach Nine-Year Media Rights Extension”, TimeWarner.com, 10/6/2014, RT: 12/01/2014

[31] “NBA extends partnership with Turner Broadcasting, Disney”, NBA.com, 10/6/2014, RT: 12/01/2014

[32] “2014 MLB Postseason on TBS Averages 4.3 Million Total Viewers; Turner Sports’ Most-Viewed Postseason Coverage since 2010”, TimeWarner.com, 10/16/2014, RT: 12/01/2014

[33-34] “Dish, Turner dispute continues, eight channels still black”, HD-Report.com, 10/31/2014, RT: 12/01/2014

[35] “Turner Broadcasting Says It’s “Unclear” Why Charlie Ergen’s Upset With Its Nets”, Deadline.com, 11/5/2014, RT: 12/01/2014

[36] “Dish Restores CNN, Cartoon Network in Contract Extension”, Bloomberg.com, 11/21/2014, RT: 12/01/2014

[37] Q3 2014 Earnings Release, TimeWarner.com, 11/5/2014, RT: 12/01/2014

[38] Summary of Time Warner Stock, TimeWarner.com, 12/02/2014, RT: 12/02/2014

[39-40] Annual Reports, TimeWarner.com, 2013, RT: 12/01/2014

[41] Jeff Bewkes Profile, TimeWarner.com, RT: 12/01/2014

[42] Howard M. Averill Profile, TimeWarner.com, RT: 12/01/2014

Netflix

Posted on by 
By Will Roth
Netflix logo - courtesy digitaltrends.com

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 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.

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]

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

[12] Forbes

[13] The Verge

[14] Letter to Investors

[15] Tech Crunch

[16] Variety

 

 

Time Warner

Posted on by 
By Isabel Sherman
Time Warner Logo

Time Warner Logo [1]

Time Warner Inc. 
One Time Warner Center
New York, NY 10019-8016
Phone Number: 212-484-8000
www.timewarner.com

Key Executives:

Jeff Bewkes- Chairman of the Board and CEO, Time Warner Inc.

Jeff Bewkes- Chairman of the Board and CEO, Time Warner Inc. [1]

John K. Martin- Chief Financial and Administrative Officer, Time Warner Inc.

John K. Martin-
Chief Financial and Administrative Officer, Time Warner Inc. [1]

Howard M. Averill- Senior Vice President and Deputy Chief Financial Officer of Time Warner Inc.

Howard M. Averill- Senior Vice President and Deputy Chief Financial Officer of Time Warner Inc. [1]

Paul T. Cappuccio- Executive Vice President and General Counsel of Time Warner Inc.

Paul T. Cappuccio- Executive Vice President and General Counsel of Time Warner Inc. [1]

Gary L. Ginsberg- Executive Vice President of Corporate Marketing and Communications at Time Warner Inc.

Gary L. Ginsberg- Executive Vice President of Corporate Marketing and Communications at Time Warner Inc. [1]

 For more information on executives click here.

About Time Warner Inc.:

 

 

 

 

 

 

Time Warner Inc. is a multinational media corporation that provides high-quality media and entertainment content through varied outlets. It is one of the largest media conglomerates in the world. [16] It has businesses in television networks, film and television shows, and publishing. The company’s four operating divisions are Home Box Office (HBO), Time Inc., Turner Broadcasting System and Warner Bros. Entertainment. [1]

What Time Warner Owns on TV

[31] Visual representation of Time Warner’s TV assets

Time Inc. runs consumer titles including People, Time, and Fortune. [16]

Warner Bros Entertainment runs Warner Bros. Pictures, New Line Cinema, Warner Bros. Television Group, and DC Entertainment. [1]

brand_stack

[37] Turner Broadcasting’s Brands

 Turner Broadcasting operates some of the leading cable TV networks CNN, HLN, TNT, TBS,  AdultSwim, Turner Sports, TCM, truTV, and Cartoon Network. Cartoon Network is a go-to channel for kids. CNN is the original 24-hour news network and delivers news to global audiences across all platforms. [1]

HBO is the most successful TV-service in the world. In 2012 it was the number one domestic premium pay television service in primetime and total day ratings. As of 2013, there are approximately 114 million HBO and Cinemax cable subscribers worldwide. There are 8.5 million registered users on HBO GO, which is an unlimited access online/tablet/smart-phone service to watch HBO shows and movies that comes free with an HBO subscription. [1] Current popular HBO shows include The Newsroom, Girls, Veep, True Blood and Game of Thrones. [4]

Girls

[18] Girls – A show about 20-something girls in New York created by Lena Dunham is currently filming it’s third season, set to air in January

The Newsroom

[33] The Newsroom  – A political drama series created by Aaron Sorkin just finished its second season on HBO

Competitors:

Major competitors to Time Warner Inc. include NBC Universal, 21st Century Fox, and The Walt Disney Company. [16]

A Brief History Starting with the Warner Brothers in 1923…… 

AOL Time Warner

[36] A graphic representing the unsuccessful merger of Time Warner and AOL that led to its split in 2009

In 1923, Polish immigrant brothers, the Warners, created the film company Warner Brothers Pictures Inc. in Los Angelos. [2]  In 1972, Kinney National Company bought Warner Bros. and established Warner Communications (WCI). [2] In 1989, Time Inc., which was at the time, the third largest cable operator in the country, merged with WCI and Time Warner was formed. [3] The company purchased Turner Broadcasting System in 1996. [3] In January 2001, a $106 billion merger between AOL and Time Warner was approved. [2] The company was called AOL Time Warner, but in 2003 it became just Time Warner. [3] In 2009, Time Warner split with AOL. [2]

 Financials: 

Time Warner is publicly traded under the NYSE with the symbol TWX.

Chart over the last three months (Sept. 18-Nov. 18)

Chart over the last three months (Sept. 18-Nov. 18)         Visible upward trend [38]

The third quarter for the company ended September 30, 2013. [6]

IMPORTANT STATS FROM 3RD QUARTER:

  •  44 percent increase in earnings from $822 million for the same quarter a year ago to $1.18 billion for the third quarter of 2013 [5]
  • HBO and Turner’s channels provided the biggest increase for Time Warner in the quarter, revenue rose by $182 million to $3.5 billion, increasing 5% [5]
  • Adjusted Operating Income increased 8% to $1.7 billion [6]
  • Adjusted Operating Income margins increased year-over-year for the eighth time in the last nine 
quarters [6]

OTHER RECENT STATS:

TBS Logo

TBS Logo [20]

  • At Turner, as of September, TBS was the #2 ad-supported cable network in primetime for adults 18-34 and 18-49 [6]

TNT Logo

TNT Logo [21]

CNN Logo

CNN Logo [22]

  •  TNT finished the quarter (in September) as the #2 network among adults 25-54 in total day time ratings [6]

 

 

  •    Total day ratings for CNN in its key demographic increased by 15% (September) [6]

 

 

 

 

September 22, 2013: HBO received 27 Primetime Emmy Awards, for series including Veep, The Newsroom, 5 for Boardwalk Empire and 11 for the HBO movie Behind the Candelabra. [25] This is the 12th year in the row that HBO has the highest number of Emmy Awards than other station) [6]

Gravity Movie Poster

[1]Gravity was released October 4, 2013 and has made $234,279,000 so far. [29]

RECENT NEWS:

Home Box Office:

September 2013: HBO is set to release a new series, Looking, which stars Jonathon Groff, best known for Glee and the broadway show, Spring Awakening. The series centers on the life of three gay friends living in San Francisco. The show is created by Andrew Haigh and is set to be released Sunday, January 19th at 10:30 p.m. on HBO. It is currently filming in San Francisco. [9]

“Looking” Season 1 Trailer [8]

 

Susan Lacy

[23] Susan Lacy and her Emmy Awards for American Masters and Inventing David Geffen

September 2013: Susan Lacy is moving from PBS to HBO to produce and direct documentaries for HBO. She is best known as the creator and executive producer of American Masters,  a television series that documents the history of icons of American culture. [17] As well as numerous Emmys for American Masters, Lacy has received an Emmy for “Outstanding Documentary or Non-Fiction series” for Inventing David Geffen. [17]

PBS

[24] Susan Lacy produced and directed under PBS before she signed the multiyear deal with HBO

Valentine Road

[30] Poster for Valentine Road which  premiered October 7th on HBO

October 2013: The documentary Valentine Road, directed by Marta Cunningham, premiered on HBO, based on an 2008 shooting at a junior high school in Oxnard, Calif. The movie premiered as a part of National Bullying Prevention Month. [11]

Read an interview with the director here:

Variety Article: Interview with Valentine Road Director

November 2013 – HBO signs John Oliver to star is a comedy series set to start in January 2014. The show will be weekly on Sunday nights and will take a satirical view on the news and current events. John Oliver will be leaving The Daily Show with John Stewart to join the HBO family. [10]

John Oliver

John Oliver [10] on the Daily Show

 Turner Broadcasting System: 

October 2013: Turner Broadcasting and Verizon announced a multi-year renewal agreement to provide Turner’s Networks, including CNN, TBS, TNT and Cartoon Network, to Verizon FiOS TV  subscribers across a plethora of platforms. This is a long term distribution agreement that will give FiOS TV subscribers’ access to a large array of on-demand programming. [26]

October 2013: A disagreement over prices between Cable ONE and Turner Broadcasting led Turner to cut channels from Cable ONE on October 1, 2013. [13] A Cable ONE press release stated that Turner Broadcasting wanted an almost 50% increase in price for the channels. It was the largest recess of channels in the company’s history. [14] Cable ONE has 730,000 customers in 19 states and is the 10th largest cable company in the U.S. [14] On October 26, 2013 Cable ONE, according to The Anniston Star, “has reached an agreement with Turner Broadcasting System Inc. to restore Cable One’s carriage of Turner’s channels CNN, CNN en Espanol, HLN, Turner Classic Movies, TNT, TBS, Cartoon Network, truTV and Boomerang.” [13]

Heat-Bulls-Game-2-350x236

[35] Miami Heat opening night game

 October 2013: TNT showed exclusive NBA coverage of the Miami Heat against the Chicago Bulls game on Tuesday, Oct. 29, at 8 p.m. ET. The game was the second highest-rated and most-viewed opening night game in network history with 5.4 million viewers and a 3.3 U.S. rating. [7]

[34] Jack Black guest-starring on Conan

[34] Jack Black guest-starring on Conan

November 2013 : Turner Broadcasting is being forced to pay a $25,000 fine by the Federal Communications Commission. [15] In April 2012, a promotional gag for TBS’ Conan used the emergency weather tones to gain attention for a commercial advertising the appearance of Jack Black on the show. The FCC has warned broadcasters not to air the real EAS tones for any reason other than airing a real alert or a test to avoid panicking the public. [15]

Sources:

[1] Time Warner Website

[2] Britannica: Time Warner Inc.

[3] History of Time Warner

[4] Time Warner: About HBO

[5] NY TImes: Time Warner Profits

[6] TWX_3Q13 Earnings Report

[7] TNT Chicago Bulls Vs. Miami Heat Press Release 

[8] Looking Season 1 Trailer

[9] About the New HBO Series 

[10] HBO- John Oliver

[11] NYTimes Valentine Road 

[12] Time Inc. to Split from Time Warner

[13] CableOne Dispute Resolved

[14] CableOne Agreement with Turner

[15] FCC Fines For Conan Ad.

[16] Hoovers- Time Warner

[17] NYTimes Susan Lacy Leaves PBS 

[18] Girls Poster 

[19] Hollywood Reporter – Gravity

[20] TBS Logo

[21] TNT Logo

[22] CNN Logo

[23] Susan Lacy 

[24] PBS Logo

[25] Reuters: Emmy’s Recap

[26] Turner-Verizon Deal

[27] Cable One

[28] FiOS Verizon

[29] Box Office Mojo- Gravity

[30] Valentine Road

[31] Neatorama- Time Warner

[32] Boardwalk Empire Poster

[33] The Newsroom Poster

[34] Jack Black on Conan – FCC Fine

[35] Miami Heat Picture

[36] Split of AOL and Time Warner 

[37] Turner Broadcasting Brands Image 

[38] Yahoo Finance – TWX

Columbia Pictures

Posted on by 
By Lily Terzis
Columbia Pictures Logo

(1) Columbia Pictures Logo, featuring a woman carrying a torch, representing Columbia, who is a personification of the United States.

Headquarters
10202 W. Washington Blvd.
Culver City, CA
90232

Contact Information
Phone: 310-244-4000
URL: sonypictures.com

Key Executives

Robert Osher, Chief Operating Officer of Columbia Pictures

Robert Osher, Chief Operating Officer of Columbia Pictures (3)

Doug Belgrad

Doug Belgrad, President of Columbia Pictures (2)

 

About the Company

Columbia Pictures is a production and distribution company founded in 1924 by Jack Cohn, Harry Cohn, and Joe Brandt. It is currently owned by Sony Pictures Entertainment, operating as part of Sony’s Columbia TriStar Motion Picture Group, through which Sony produces most of its big budget movies. Considered one of the leading film studios in the world, Columbia Pictures is one of Hollywood’s “Big Six”, distributing over 22 films yearly in the United States alone. Columbia TriStar Motion Picture Group operations are located in six other countries: Columbia Pictures Producciones Espanolas in Madrid; Columbia Pictures Producciones Mexico in Mexico City; Columbia Pictures Film Production Asia in Hong Kong; and others in the United Kingdom, Brazil, and Japan (16).

Top Competitors

Warner Brothers Entertainment Inc (6)
Walt Disney Studios (6)
Twentieth Century Fox Film Corporation (6)

History

Frank Capra

(4) Frank Capra, a well known director for Columbia Pictures

During the Golden Age of of Hollywood, Columbia Pictures was considered one of the ‘Little Three’. Much of their earlier success can be accredited to director Frank Capra, who created Columbia’s first all “talkie” feature, titled “The Donovan Affair”. His film ‘It Happened One Night’ earned Columbia their first Best Picture Academy Award and brought the studio to fame. In the mid ’40’s, Columbia released their highest-grossing movie ever, “The Jolson Story”. This earned them another Best Picture award as well as marked the beginning of their most profitable decade (5).
.

TriStar Logo

Columbia Pictures joined with HBO and CBS to form TriStar Pictures in 1985 (7)

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In 1982, Columbia was bought by Coca Cola. This was a lucrative time for the company as they expanded into other forms of entertainment, such as home video. Three years later, Columbia joined with HBO and CBS to make the first new motion picture studio in decades, TriStar Pictures. This major studio was the had the fastest growth in the history of the film industry.

Sony Corporation purchased Columbia Pictures in 1989 for $3.2 billion (5). This purchase was unprecedented, and was, at that time, the largest acquisition by a Japanese company. Columbia Pictures has been gaining success ever since.

            Finances

Columbia Pictures does not make its finances known to the public. It is not a publicly traded company, its parent company Sony, is traded under the name SNE at $18.51 a share. Columbia and Sony Pictures together have grossed $1,065.8 million this year alone, and control 11.4% of the market share (21). They are currently ranked as the number 4 studio by Box Office Mojo, just under Buena Vista.

Recent Releases

Captain Phillips (2013) Poster

Movie Poster for “Captain Phillips” (8)

Captain Phillips
MPAA Rating: PG-13
Release Date: October 11, 2013
Production Budget: $55 Million

“Captain Phillips” is a true story about an American cargo ship that was hijacked by Somali pirates and was a hugely successful film, its widest release in 3,143 theaters. Despite the competitively successful “Gravity” released at a similar time, the film is doing very well. So far, it has grossed over $97,820,373 domestically, which is much more than its budget. Its opening weekend, it was ranked number 2 at the box office (9).

You can find the trailer for this film HERE
.

Elysium Movie Poster

Poster for the movie “Elysium” (11)

Elysium
MPAA Rating: R
Release Date: August 9, 2013
Production Budget: $115 Million

“Elysium” is a film about the future, where the wealthy live on a space ship and the poor must live on the destroyed earth. The main character’s mission is to create equality. The film’s domestic total gross so far is $92,947,675, but its foreign gross is $192,007,963. Its widest release was to 3,284 theaters and ranked number 1 its opening weekend (10).

You can find the trailer for this film HERE
.

Movie Poster for “Cloudy with a Chance of Meatballs” (20)

Cloudy With a Chance of Meatballs 2 
MPAA Rating: PG
Release Date: September 27, 2013
Production Budget: $78 million

“Cloudy with a Chance of Meatballs 2” is an animated movie for children. It features the voices of some celebrities, like Anna Faris, Andy Samburg, and Neil Patrick Harris. This was a highly successful film for Columbia, grossing $34,017, 930 domestically its opening weekend in 4,001 theaters. It was immediately ranked number 1 at the box office. So far, the film has made almost double its budget, grossing $113,125,418 domestically as of November 18th (19).

You can find the trailer for this film HERE.

Upcoming Releases

American Hustle (2013) Poster

Movie poster for “American Hustle” (12)

American Hustle
MPAA Rating: Not yet rated
Release Date: December 13, 2013

“American Hustle” is about a con man and his partner, a British woman, who are forced to work for the FBI. This film is expected to do well at the box office. It has a lot of star power, as the cast is made up of Jennifer Lawrence, Bradley Cooper, Louis CK, and Christian Bale (12). This film is generating a lot of buzz as it is soon to show at its first film festival, the Dubai International Film Festival, or DIFF.
.
You can find the trailer for this film HERE.

The Amazing Spider-Man 2 (2014) Poster

Movie Poster for “The Amazing Spider-Man” (13)

The Amazing Spider-Man 2
MPAA Rating: Not yet rated
Release Date: May 2, 2014

“The Amazing Spider-Man 2” is starring Emma Stone, Andrew Garfield, and Jamie Foxx. It is being produced by Matthew Tolmach, who is a previous  co-president of Columbia Pictures (14). Columbia Pictures has had a huge amount of success with the Spider-man franchise. Working with Marvel, Columbia also plans to release an IMAX 3D version (15).

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Recent News

In 2012, Sony released that it had made over $4 billion worldwide, mostly in part to Columbia’s successful films, including “Skyfall“, “The Amazing Spider-Man“, “21 Jump Street“, “Men in Black 3“, and “Hotel Transylvania“. The Columbia TriStar Motion Picture Group now has a motion picture library with over 3,500 titles with 12 Best Picture Academy Awards. Currently, Columbia plans to continue creating big budget box office hits and gaining large profits for Sony Pictures Entertainment. In the upcoming 2014-2015 year, the studio plans to create some sequels to their previously successful films, such as “Bad Teacher 2“, “Hotel Transylvania 2” and “22 Jump Street” (16). Columbia is also looking to produce some Oscar contenders, like “Annie“, a modern telling of the classic musical. It is set to be released in 2014, and stars Quvenzhane Wallis who was nominated for an Oscar for her acting in “Beasts of the Southern Wild” (17).

Recently, Columbia’s parent company Sony has not been doing so well. This year, they were ranked fourth in domestic box-office sales, and gained a revenue of $1.13 billion, which is down 32% from last year. They are undergoing many changes, especially after some box office flops like “White House Down” and “After Earth” (18). They are reportedly reviewing their process for how movies are selected and are looking to cut costs.

Sources

[1] Columbia Pictures Logo
[2] Doug Belgrad
[3] Robert Osher
[4] Frank Capra
[5] History of the studio
[6] Top Competitors
[7] TriStar Logo
[8] Image for Captain Phillips
[9] Movie info Captain Phillips
[10] Elysium info
[11] Elysium Poster
[12] American Hustle Poster and Info
[13] Amazing Spiderman Poster
[14] Spiderman Producer
[15] Spiderman Info
[16] Columbia TriStar Motion Picture Group
[17] Annie
[18] Sony Finances
[19] Cloudy Chance of Meatballs Info
[20] Cloudy Chance of Meatballs Poster
[21] Financial Information Columbia and Sony

AMC Networks

Posted on by 
By Val Champeau

 

-courtesy of AMCtv.com

-courtesy of AMCtv.com

AMC Network Entertainment LLC. 

11 Penn Plaza, 15th Floor
New York, NY 10001
646-273-7105

http://www.amcnetworks.com/

History

AMC Networks was originally known as, Rainbow Media Holdings, LLC.   Rainbow,  formed in 1980, started as a small network originally only including Bravo and SportsChannel New York.  The Cablevision owned media conglomerate would, less than a decade later, go on to merge with NBC in 1988.  This merger gave NBC 50% ownership of Rainbow Media in the original deal.  After decades of trades, gains, and mergers, Cablevision considered taking Rainbow Media public, but did not actually go through with the deal until 2011. [1]

Rainbow-Media-11-18

-courtesy of lyngsat-logo.com

On March 10th, 2011, Cablevision took Rainbow Media broke it off into a publicly traded company, AMC Networks today. Congruently, with AMC going public, Cablevision kept their cable business still as a private entity. [2]

Since going public, AMC has hit the ground running.  Most recently, 2013, AMC Networks acquired the international content division of Liberty Global, Chellomedia, for a reported 750 million Euros, or $1.04 billion.  This deal now gives AMC Networks access to approximately 138 countries. [3]

Financials

Most recently, in the 3rd quarter of 2013:

  • Net revenue increased by 19.1% to $395 million
  • Operating income increased 40.9% to $122 million
  • Adjusted Operating Cash Flow (AOCF) increased 25.4% to $137 million

“Our solid financial results in the third quarter were driven by a return on our investment in original programming…Our shows are performing well on IFC, Sundance Channel and WE tv. At AMC, our acclaimed series Breaking Bad came to a close with record viewership and the Emmy Award for Oustanding Drama Series, and The Walking Dead kicked off its fourth season with record ratings that extended its reign as the #1 show on television among adults 18-49. With our Chellomedia acquisition, we believe we will over time further capitalize on demand for our content by growing internationally, a key strategy to ensuring our long-term success.”

–Josh Sapan, AMC Networks President and CEO [4]

Screen Shot 2013-11-20 at 1.09.57 AM Looking at AMC Networks‘ one year stock evaluation it seems that the company, although currently in the red, has stayed relatively stable since going public. [5]

 

Key Executives 

Josh Sapan

President and CEO AMC Networks INC

Josh Span

-courtesy amcnetworks.com

Josh Sapan has been the President and CEO of AMC Networks Inc since March 9, 2011.  He was brought over from his previous position as CEO of Rainbow Media Holdings (Now AMC Networks), where he was employed since, 1995. Sapan currently serves on the boards of The Cable Center, CTAM, The New School and many others. [6]

Ed Carrol

Chief Operating Officer AMC Networks Inc.

-courtesy amcnetworks.com

-courtesy amcnetworks.com

Ed Carrol oversees all operations for each brand associated with AMC Networks – AMC, WE tv, IFC, and Sundance Channel.  He is also responsible for ad sales in the company’s international divisions (AMC/Sundance Channel Global).  He has been with the company for 24 years. [7]

Sean S. Sullivan

Executive Vice President and Chief Financial Officer AMC Networks Inc.

sean sullivan

-courtesy amcnetworks.com

Sean S. Sullivan is responsible for all of AMC Networks‘ financial needs.  This includes, accounting, tax, financial planning, treasury, and investor relations. Along with financials, Sullivan, oversees the information technology and creative service departments, Broadcasting & Technology, programming origination and distribution division.  He joined AMC Networks in September 2010 from HIT Entertainment. [8]

Recent News

Breaking Bad – “Felina”: The Final Episode Hype

breaking bad

-courtesy of businessinsider.com

Breaking Bad is considered one of the most compelling,  addictive, and suspenseful dramas that has ever hit cable. Driven by plot and fueled by characters, AMC took viewers on a journey of a man’s total distraction, leaving in it’s wake one of the most highly anticipated final episodes ever for a series.  In short, Walter White (Bryan Cranston), a high school chemistry teacher, diagnosed with cancer, finds himself at a crossroads in his life.  He has always played it safe for his family, and now with a baby on the way, White turns to a life of crime.  Partnering up with his former student, Jesse (Aaron Paul), to cook meth, White finds himself spiraling down a dark path which eventually becomes his own demise.  Everything he aims to save in the beginning of series, he slowly looses, until he has nothing left to loose. This is what has the audience on the edge of their seats for the final episode.  What many people admired about the episode,  unlike many other series such as, Lost and The Sopranos, is that it left no question unanswered and tied all 5 seasons up with a big bang at the end, which everyone knew was coming – Walt’s death.  “Felina” had the highest ratings of any episode in the series, 10.28 million viewers. Along with viewership, the final Breaking Bad episode created an explosion over the twitter-shpear.  Walter White’s final hours on screen generated 1.2 million tweets, making it the most talked about television show for the week (out-ranking “The Voice” and “Grey’s Anatomy“). Breaking Bad had 12 Emmy Nominations in the 2013 season.  [9] [10]

The Walking Dead

- courtesy of collider.com

– courtesy of collider.com

AMC defiantly has a way with drama.  The hit apocalyptic zombie series, The Walking Dead, has accumulated what many would describe as a “cult” following.  Much like other AMC shows, Breaking Bad and Mad Men, the viewers are drawn in by the concept, but, stay for the character development.  AMC has made a name for itself in seeing just how far people will go when faced with a challenge, and for The Walking Dead, that challenge is to stay alive. Over the course of the series we see the protagonists stripped of humanity and brought down to nothing but animal instinct.  How they act and, re-act, is what keeps viewers coming back week after week.  It is not a typical zombie movie where the audience knows that, in the end, the humans will triumph and all is well in a matter of 2 hours.  The Walking Dead has reinvented suspense, being known for killing off main characters at any moment.  How do we know? Because numbers don’t lie.  The most recent season of Walking Dead, season 4, had earth shattering numbers, which had the media buzzing with anticipation. The hour long zombie drama pulled in 16.1 million viewers and an 8.2 rating among adults 18-49. These statistics put the show up 30% in the demo from season 3’s finale (their pervious high). [11] [12]

 In The Works

AMC’s New Pilot: Preacher

PreacherOriginally considered by, HBO, AMC has reportedly ordered the pilot to adapt the extremely dark DC comic , Preacher. HBO apparently passed up the deal due to the comic being too controversial.  Although, they didn’t state what was controversial about it, it could be assumed that it was the dark religious aspect of the storyline. Originally authored by Garth Ennis and Steve Dillon, Preacher has been described as many things, but to sum them up: the series is full on crazy. With the wrap up of Breaking Bad, AMC needs to fill the void that the dark drama has left for viewers. Although the pilot has only been ordered, there has already star power around the potential new show. Seth Rogen, a devoted Preacher comic fan, has sent out a number of hinting tweets that he could be involved with the project:

Screen Shot 2013-11-20 at 1.09.16 PM

He then followed up the tweet with another, naming some main characters in the series:

Screen Shot 2013-11-20 at 1.13.49 PM

Will the show get green lighted? No one can say for sure.  However, one thing can be said- this will defiantly be a defining moment for AMC and their content.  Judging from the comic books themselves, this show will be darker than anything seen on TV before, pushing AMC to the top of drama original programing. [13]

*Storyline of The Preacher Comic Book Series 

Sources

[1] History

[2] History: Cablevision exlporing spinoff of Rainbow Media 

[3] Purchase of Chellomedia

[4] Financials

[5] AMC Stock 

[6] Josh Sapan

[7] Ed Carroll

[8] Sean S. Sullivan

[9] Breaking Bad

[10] Breaking Bad

[11] The Walking Dead

[12] The Walking Dead

[13] Preacher