Disney

Link

Emma Lipstone and Susy Solino
The Walt Disney Company Logo

[1]   The Walt Disney Company Logo

 The Walt Disney Company

500 South Buena Vista St.
Burbank, CA 91521

Website: thewaltdisneycompany.com
Phone Number: (818) 560 – 1000

Company

The Walt Disney Company was founded on October 16, 1923 by Walter Elias Disney and is headquartered in Burbank, CA. The Company is one of the biggest media and entertainment corporations in the world. [2]. Walt Disney Studios is home to the four major film studios: Walt Disney Animation Studios, Pixar Animation Studios, Marvel Studios, and Lucasfilm Ltd. The Walt Disney Company also owns and operates Walt Disney Studios Motion Pictures, Disney Music Group, Disney Theatrical Group, DisneyToon Studios, Touchstone Pictures, and DisneyNature. [3]. 

Disney’s animation studio has produced around fifty-five animated feature films, with the fifty-sixth being Moana that was just recently released. Pixar has produced seventeen films; the most recent being Finding Dory. In 2009, Disney purchased Marvel Studios and has since produced multiple movies based off of Marvel comic book characters including: The Avengers, X-Men, Spider-Manand Guardians of the Galaxy. Most recently in 2012, Disney acquired Lucasfilm Ltd. which is the studio best known for creating the Star Wars and Indiana Jones franchises.

In addition to popular film franchises, Walt Disney Company owns and operates many television channels that produce popular television series’. The biggest subsidiary under Disney Media Networks is ABC, which produces hit network shows such as Scandal and How to Get Away with Murder. [5]. Disney also owns ESPN and operates A&E Networks in a joint venture with Hearst Corporation, along with a portion of Hulu.

 

The Walt Disney Company

[9] Some of The Walt Disney Company Conglomerates

Financials

The Walt Disney Company (NYSE: DIS) stock has been declining in the past few quarters.

According to the earnings report released on November 10, 2016, operating income at Cable Networks decreased $207 million to $1.4 billion for the quarter due to decreases at ESPN and the Disney Channels. [6]. 

ESPN has been losing subscribers to online streaming, such as Netflix or over-the-top streaming services. Also, social media has provided access to a lot of breaking news and sports live broadcasting, luring viewers away from cable television. One of the biggest issues facing ESPN and The Walt Disney Company is that the sports cable network has already paid huge rights fees for the next 5 years, yet subscribers are only paying $8 a month to cover the games, which will not exist in a few years. The increase in programming and production costs were due to The Olympics programming internationally, the World Cup of Hockey rights, and higher contractual rates for college sports. [7]. 

However, the growth at Freeform, which is the old ABC Family, has been very successful this quarter due to lower programming and production costs, as well as a decrease in marketing expenses. These were driven by fewer hours of original scripted programming in the current quarter.

 

Disney Stock

[33] Disney stock prices for last 2 years

Key Executives

Robert A. Iger: Chairman and Chief Executive Officer

[8] Robert A. Iger: Chairman and Chief Executive Officer

[8] Alan N. Braverman: Senior Executive Vice President

Christine M. McCarthy: Senior Executive Vice President and Chief Financial Officer

[8] Christine M. McCarthy: Senior Executive Vice President and Chief Financial Officer

Zenia Mucha: Executive Vice President and Chief Communications Officer

[8] Zenia Mucha: Executive Vice President and Chief Communications Officer

Jayne Parker: Executive Vice President and Chief Human Resources Officer

[8] Jayne Parker: Executive Vice President and Chief Human Resources Officer

Box Office Reports

captain-america-civil-war-poster-2

[12] Movie poster for “Captain America: Civil War” (2016)

2016 was announced as The Walt Disney Company’s most successful International Box Office record to date, reporting over $3.56 Billion through October 16th in just international sales, surpassing their 2015 general record of $3.56 Billion. [10]. This was due to a powerhouse series of releases throughout 2016, beginning with the summer blockbuster Captain America: Civil War which brought in 1.15 Billion worldwide viewers, $745 million Internationally and was named the No. 1 film of the year internationally and globally. [11].

movie_poster_zootopia_866a1bf2

[14] Movie poster for “Zootopia” (2016)

The animated release of Zootopia also helped spike Disney’s international numbers as it was named the biggest animated film to ever be released in China and brought in $682.3 million internationally. Elsewhere in the studio, 2016’s surprise remake of The Jungle Book also experienced a successful release, bringing in $602.3 million internationally as well as the title of “Top Western Film of all Time” in India and the No. 3 film of the year overseas.  [13]. Furthermore, while being in the box office for nearly 16 weeks, Finding Dory managed to break records and pass the billion dollar global box office line by bringing in $484.8 million domestically and $519.9 million internationally, making it Pixar’s second billion dollar release and earning a rank as the 5th biggest animated film of all time, globally. [15]. 

As though breaking international box office records was not enough, Disney also managed to set new industry records for reaching $2 billion domestic (July 16th) and $5 billion global (July 10). As well as earned three new spots in the Hall of Fame for domestic box offices with Finding Dory, Captain America: Civil War, and Zootopia. All of this success comes with still two-and-a-half months and three major releases remaining in their calendar year. [16].

dory_characters_0afa6e45

Dory, the star of “Finding Dory” (2016), now the fifth highest grossing animated film of all time. [17]

 

Recent and Future Releases

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[18] Movie poster for Marvel’s “Doctor Strange” (2016)

Marvel Studio’s Doctor Strange represents another large victory for The Walt Disney Company’s Marvel unit, even on the heels of the overwhelming success of Captain America: Civil War. 

Doctor Strange was projected to collect anywhere from $65 million to $75 million in ticket sales from the United States and Canada through opening weekend, positively surprising analysts and bringing in $85 million and the #1 rank instead. Since its release, Doctor Strange has made over $200 million domestically and over $400 million internationally, crossing $600 million worldwide in under 4 weeks. [19].

Moana, who was scheduled for a holiday release, has surpassed the high expectations set by Doctor Strange, bringing in over $81 million domestically throughout its opening weekend. [20]. 

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[22] Movie poster for “Moana” (2016)

Further down the line, fans eagerly await the release of Star Wars: Rogue One. As well as Disney’s live action remake of Beauty and the Beast and the recently announced remakes of Mulan and Snow WhiteAll of which are predicted to be box-office heavy hitters. [21]. 

[23]. 

Diversity

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[24] Elena of Avalor, Disney’s first Latina princess.

In light of a growing diverse culture and need for representation in the film industry, Disney had begun fighting back against claims of their white-washing tactics and ill representation in their films by allowing more diverse roles in their characters and plots.

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[25] Moana, Disney’s first Polynesian heroine.

This year’s recently released Moana revolves around Tahitian and Pacific Islander culture and will be the first Disney film every to be translated into the Tahitian language. [26]. Furthermore, Disney introduced the world to their first Latina princess earlier in the year with the release of their television series Elena of Avalor, a Disney Channel show revolving around latin customs and characters [27] further proving the Company’s desire to focus on promoting more representation of diversity through their media. In addition to their animated strikes towards representation, Disney has announced their search for Chinese actors to star in the upcoming Mulan remake. [28]. 

jungle-book-to-mulan-all-the-live-action-disney-movies-in-the-works-right-now

[29] Movie poster for Disney’s upcoming live action remake of “Mulan,” featuring a Chinese actress.

Future Integration

In addition to divulging into a more diverse space, Disney has also shown interested in expanding into a more digital and web space with their media. In September 2016, Disney began showing signs of interest for acquiring the social media giant, Twitter Inc., going as far as to work with advisors to put together a potential bid for the company. [30].  While eventually deciding to go against the deal for image reasons, as the social network is known for its reputation of bullying and harassment, the interest in social media gives clear insight that Disney has begun exploring new digital horizons. [31]. Many analysts have taken note of Disney’s interest to expand digitally and predict that the streaming giant, Netflix, might be next on the company’s list of potential assets. [32]. 

Bibliography

  1. Walt Disney Company Logo. Retrieved November 1, 2016. http://logok.org/disney-logo/
  2. Walt Disney History. Retrieved November 1, 2016. https://d23.com/disney-history
  3. The Walt Disney Company. Retrieved November 1, 2016 https://thewaltdisneycompany.com/about/#our-businesses
  4. Box Office Reports. Retrieved October 28, 2016. boxofficemojo.com
  5. Johnson, Madeleine. June 16, 2016. Your Complete Guide to All the Things Owned by Disney. Retrieved November 21, 2016. https://www.zacks.com/stock/news/220682/your-complete-guide-to-all-the-things-owned-by-disney
  6. November 10, 2016. The Walt Disney Company Reports Fourth Quarter and Full Year Earnings for Fiscal 2016. Retrieved November 11, 2016. https://ditm-twdc-us.storage.googleapis.com/q4-fy16-earnings.pdf
  7. October 31, 2016. Disney: ESPN Still has a Big Problem. Retrieved November 2, 2016. http://seekingalpha.com/article/4017145-disney-espn-still-big-problem
  8. The Walt Disney Company About. Retrieved November 1, 2016. https://thewaltdisneycompany.com/about/
  9. The Walt Disney Company. Retrieved November 2, 2016. https://storify.com/LA346TeamDisney/the-walt-disney-company
  10. McNary, Dave. October 17, 2016. ‘Captain America: Civil War,’ ‘Finding Dory’ Push Disney to International Box Office Record. Retrieved October 18, 2016. https://variety.com/2016/film/news/captain-america-civil-war-finding-dory-disney-box-office-record-1201891155/
  11. Tartaglione, Nancy. October 17, 2016. Finding Money: Disney Tops Full-Year Intl Box Office Record with $3.56B+ (So Far). Retrieved October 18, 2016. http://deadline.com/2016/10/walt-disney-studios-all-time-international-box-office-record-captain-america-zootopia-1201837655/
  12. Freeman, Molly. November 25, 2016. Captain America: Civil War Character Posters- Superhero Fight Time. Retrieved November 27, 2016. http://screenrant.com/captain-america-3-civil-war-posters-iron-man/
  13. Laughing Place Disney Newsdesk. October 17, 2016. 2016 International Box Office is Disney’s Best Year Ever. Retrieved October 19, 2016.   http://www.laughingplace.com/w/news/2016/10/17/2016-international-box-office-disneys-best-year-ever/
  14. Disney Zootopia. Retrieved November 10, 2016.  http://movies.disney.com/zootopia
  15. October 10, 2016. “Finding Dory” Keeps Swimming to $1 Billion. Retrieved October 20, 2016. https://thewaltdisneycompany.com/finding-dory-keeps-swimming-1-billion/
  16. Derisz, Ricky. October 18, 2016. ‘Captain America: Civil War’ Helps Disney Break its Own $3 Billion International Box Office Record…With More to Come. Retrieved October 19, 2016. http://moviepilot.com/p/captain-america-civil-war-disney-box-office-record/4127909
  17. Disney Movies: Finding Dory. Retrieved November 21, 2016. http://movies.disney.co.uk/finding-dory
  18. CS. April 4, 2016. Doctor Strange Filming Wraps as Mads Mikkelsen’s Villain is Revealed. Retrieved November 15, 2016. http://www.comingsoon.net/movies/news/673101-doctor-strange-filming-wraps-as-mads-mikkelsens-villain-is-revealed#/slide/1
  19. Faughnder, Ryan. November 1, 2016. ‘Doctor Strange’ is Expected to Draw a Massive Audience for Disney’s Marvel Studios. Retrieved November 2, 2016.  http://www.latimes.com/entertainment/envelope/cotown/la-fi-ct-movie-projector-20161031-story.html
  20. The Associated Press. November 27, 2016. ‘Moana’ Wins Box Office with Huge Opening Weekend. Retrieved November 27, 2016. http://www.nydailynews.com/entertainment/movies/moana-wins-box-office-huge-opening-weekend-article-1.2888989
  21. Acuna, Kirsten and Phillips, Ian. October 26, 2016. Disney Announced all its Movies Coming in the Next 4 Years – Here’s What you have to Look Forward to. Retrieved October 28, 2016. http://www.thisisinsider.com/disney-movie-schedule-2016-to-2019-2016-10/#strange-cumberbatch-will-play-a-surgeon-who-injures-his-hands-severely-in-accident-2
  22. Disney Moana. Retrieved November 25, 2016. http://movies.disney.com/moana
  23. May 23, 2016. Beauty and the Beast Official US Teaser Trailer. Retrieved November 15, 2016.  https://www.youtube.com/watch?v=c38r-SAnTWM
  24. Ranere, Dianna. August 12, 2016. Disney’s Elena of Avalor Renewed for 2nd Season #ElenaOfAvalor. Retrieved October 28, 2016. http://www.fsm-media.com/disneys-elena-avalor-renewed/
  25. Lodi, Marie. July 1, 2016. Why People are Upset About this Character’s Weight in Disney’s New Movie “Moana”. Retrieved November 10, 2016. http://hellogiggles.com/moana-maui-people-angry-obese-stereotype/
  26. October 25, 2016. Walt Disney Animation Studios’ “Moana” to be First Film Ever Translated into the Tahitian Language. Retrieved October 26, 2016. https://thewaltdisneycompany.com/moana-first-film-translated-tahitian-language/
  27. Hughes, Ruth. October 16, 2016. Teen Spirit: Meet the new Plucky Disney Princess Elena of Avalor. Retrieved October 17, 2016. http://www.express.co.uk/life-style/life/720813/Disney-Channel-Elena-Of-Avalor-princess
  28.  Biek, Katherine. October 5, 2016. Disney Seeks Chinese Actress for ‘Mulan’ Remake. Retrieved November 20, 2016. http://www.whio.com/news/national/disney-seeks-chinese-actress-for-mulan-remake/fG3AO2Pqefhu4NVlI8ycfI/
  29. Edwards, Ally. October 16, 2016. Jungle Book to Mulan: All the Live Action Disney Movies in The Works Right Now. Retrieved October 17, 2016. http://moviepilot.com/posts/3590427
  30. Roettgers, Janko. September 26, 2016. Disney is Looking into Buying Twitter (Report). Retrieved October 20, 2016. http://variety.com/2016/digital/news/disney-twitter-acquisition-possible-1201870392/
  31. New Statesman. October 18, 2016. Disney Didn’t Buy Twitter- Partly because it Can’t Master the Bare Necessities. Retrieved October 19, 2016.  http://www.newstatesman.com/science-tech/social-media/2016/10/disney-didn-t-buy-twitter-partly-because-it-cant-master-bare
  32. Williams, Trey. October 5, 2016. Netflix Said to be in Disney’s Crosshairs, and Analysts see a Streaming Rationale. Retrieved October 21, 2016. http://www.marketwatch.com/story/disney-remains-center-of-merger-talk-this-time-its-netflix-2016-10-03
  33. The Walt Disney Company (DIS). Retrieved November 20, 2016. https://finance.yahoo.com/quote/DIS?p=DIS

21st Century Fox

Georgia Velkes, Jenna Levine, and Gabrielle Marzolf

Overview

21st-cnetury-fox-logo

In 1985, News Corporation, a newspaper company from Australia owned by Rupert Murdoch, acquired Twentieth Century Fox Film Corporation. Murdoch subsequently
built the company into one of the biggest media companies in the world. [1]

Rupert Murdoch Executive Chairman

Rupert Murdoch
Executive Chairman

In 2012, News Corporation split into two companies. News Corporation kept all the newspaper assets and media assets were put into a new company named 21st Century Fox. 21st Century Fox has holdings in multiple media businesses internationally and in the United States, including broadcast and cable television networks like FOX, FX, Fox News Channel, and National Geographic, which reach over 1.8 billion subscribers. [2] The film company, 20th Century Fox, is one of the Big Six Hollywood Studios that produce and distribute films worldwide.

 

 

Financials

The company had a strong fiscal quarter ending September 30, 2016 with total revenue increasing 7% to $6.51 billion and a net income increase of 22% to $821 million. [3] A significant portion of that boost came from the Cable Network Programming division.

Gretchen Carlson, former anchor at Fox News

Gretchen Carlson, former anchor at Fox News

The Fox News Channel experienced significant growth, despite the Roger Ailes scandal in the beginning of the quarter, in which former anchor Gretchen Carlson sued Ailes for sexual harassment. Fox settled the lawsuit, which incited controversy throughout the company, and Ailes resigned. During the lawsuit, Fox faced great controversy and criticism, which increased when Ailes left the company with a $40 million exit agreement.

Roger Ailes, former CEO/Chairman of Fox News

Roger Ailes, former CEO/Chairman of Fox News

In spite of the controversy, cable revenues increased 10% to $3.81 billion, driven by higher ratings and advertising revenue. The US presidential election, broadcasted on Fox News, increased domestic advertising revenue by 6% and gained the network more viewers. The film business revenue increased more than 6.8% to $1.91 billion which is credited to the theatrical release of “Independence Day: Resurgence” and the home entertainment release of “Deadpool” during the quarter. [4] The positive earnings release showed a 14.6% rise in the stock price over the past 3 months, gaining $3.62. [5]

 

New Licensing Agreements

As the television industry and television consumption transforms, 21st Century Fox’s goal is to become a central player in the new digital age. Fox Networks Group recently made a deal with AT&T Inc. and its DirecTV subsidiary. DirectTV launched a streaming service called DirecTV Now that allows viewers to stream their programming instead of watching it via satellite transmission. Fox News, Fox Business, FX and many more Fox networks will be available on AT&T’s live streaming service in addition to the content offered to DirecTV subscribers. [6] Fox has also made a licensing deal with Hulu to carry Fox channels on the new over-the-top (OTT) live TV subscription service Hulu will soon release. [7] The deal includes the FOX broadcast network along with the Fox Sports channels, National Geographic and more.

While 21st Century Fox licenses content to companies that partner programming with new technology like OTT providers, issues have arisen with subscriptions services like Netflix. In September, 21st Century Fox filed a lawsuit against Netflix for illegally “poaching” two under-contract executives: Tara Flynn, the former VP of Creative Affairs at Fox21, and Marcos Waltenberg, the former VP of Promotions at 20th Century Fox. [8] In retaliation, Netflix sued 21st Century Fox for the alleged use of illegal contract clauses. The outcome of these lawsuits could potentially impact how businesses manage employment contracts in the future. [9]

 

TV Ratings

This past quarter Fox Networks Group saw a huge increase of ratings with not only the presidential election and Fox News, but also the FOX network as a result of their rights to the World Series.

Fox News (http://www.foxnews.com)

Fox News (http://www.foxnews.com)

Huge interest in this year’s presidential election saw primetime coverage reach a total of 71 million viewers, and Fox News channel’s 12.2 million viewers beat out CNN’s 11.2 million views for the most viewers of any cable channel for the 7pm-3am time slot, leaning toward a generally conservative audience. [10]  When the election results announced Donald Trump as president elect, Fox News Channel maintained over 10 million viewers.

This fall, Fox’s overall ratings for the season rose from fourth to first place, with nearly 40 million viewers and a 12.1 rating with the 18-49 demographic. Previously, NBC was the number one network, however the World Series ratings boosted Fox to the top with an 8% advantage over its competitors. [11] Furthermore, unlike other networks, Fox has not experienced a ratings drop related to professional football broadcasting. Analysts suggest that Fox retained viewers because the network does not show any primetime games and delivers the best overall Sunday coverage including their post-show program, The OT. [12] Over Thanksgiving, Fox Sports aired the Washington Redskins versus Dallas Cowboys game, which, with 35.1 million viewers, was the highest rated program of the holiday and the highest rated NFL game to date. [13]

20th Century Fox

20th Century Fox

20th Century Fox

Unlike the other business divisions of 21st Century Fox, the film studio exhibited a weak performance over the past year, which resulted in leadership changes. Over the summer official Fox sources announced that the Chairman/CEO of the studio, Jim Gianopulos, would leave and Stacy Snider would replace him. [14] Since Snider has taken over, she has made a number of changes senior management, resulting in the departure of the marketing president Marc Weinstock, who left for Annapurna Pictures. [15]

Deadpool (2016) official movie poster

Deadpool (2016) official movie poster

With all the personnel changes at the studio, senior management is focusing on the upcoming slate of movies for the next two to three years. After the commercial success of “Deadpool”, the studio faces pressure to release similarly profitable films. “Avatar 2” has been rumored to be released around Christmas 2018, so the studio will face pressure to follow up the highest grossing film of all time at the global box office. Fox’s film adaption of “Assassin’s Creed” generated anticipation of how the company would transition the content from a video game format to the big screen. [16]

The film is not yet released, but the hype surrounding the film shows that Fox is not afraid to take risks, and presents the company as more forward thinking.

Fox has the production and distribution rights to Marvel characters related to the X-Men property, including X-Men, Deadpool and Wolverine. Between films utilizing these characters and sequels to popular franchises—“Alien: Covenant”, “Kingsman: Golden Circle” and a total of four Avatar sequels—the studio has a significant amount of content to exploit over the next two to five years. [17]

Conclusion

Overall, 21st Century Fox is well poised for continued growth in revenue and income going forward.  Strong licensing revenue to emerging and existing OTT providers as well as traditional networks and broadcasters is expected to continue and a strong pipeline of franchise tentpole films over the next three to five years should ensure continued financial success of the film studio.  The introduction of new leadership at the studio and Fox News will ensure continued growth and success at these important divisions of the company.


References:

[1] 21st Century Fox. Rupert Murdoch. Retrieved November 29, 2016. https://www.21cf.com/managment/rupert-murdoch

[2] 21st Century Fox. Investor Relations. Retrieved November 29, 2016. https://www.21cf.com/investor-relations

[3][4] Lang, Brent. November 2, 2016. Variety. 21st Century Fox Earnings Get Lift From Fox News, ‘Deadpool’ Home Entertainment Debut. Retrieved November 29, 2016. http://variety.com/2016/film/news/21st-century-fox-earnings-get-lift-from-fox-news-deadpool-home-entertainment-debut-1201907353/.

[5] Nasdaq. FOXA Earnings Data. Retrieved November 29, 2016. http://www.nasdaq.com/earnings/report/foxa

[6] Moritz, Scott. November 21, 2016. Bloomberg. AT&T Expands Fox Programming Pact to Include Online TV Service. Retrieved November 29, 2016. https://www.bloomberg.com/news/articles/2016-11-21/at-t-expands-fox-programming-pact-to-include-online-tv-service

[7] Spangler, Todd. November 1, 2016. Variety. Hulu Inks Disney, 21st Century Fox Deals for Internet TV Service. Retrieved November 29, 2016. http://variety.com/2016/digital/news/hulu-disney-21st-century-fox-live-tv-1201906066/

[8] Flint, Joe. September 16, 2016. Wall Street Journal. 21st Century Fox Sues Netflix for Poaching Employees. Retrieved November 29, 2016. http://www.wsj.com/articles/21st-century-fox-sues-netflix-for-poaching-employees-1474053655

[9] Patten, Dominic. October 19, 2016. Deadline. Netflix Hits Back At Fox In Exec-Poaching Lawsuit, Claims Studio “Bullies” Employees Into Contracts. Retrieved November 29, 2016. http://deadline.com/2016/10/netflix-fox-lawsuit-cross-complaint-executive-poaching-1201839020/

[10] O’Connell, Michael. November 9, 2016. The Hollywood Reporter. TV Ratings: 71 Million Watched 2016 Election Returns Pour In; CNN and Fox News Set Records. Retrieved November 29, 2016. http://www.hollywoodreporter.com/live-feed/tv-ratings-nbc-leads-early-election-night-numbers-945493

[11] [12] O’Connell, Michael. November 4, 2016. The Hollywood Reporter. World Series Catapults Fox to No. 1 Slot for the Fall Season. Retrieved November 29, 2016. http://www.hollywoodreporter.com/live-feed/world-series-catapults-fox-no-1-slot-fall-season-944192

[13] O’Connell, Michael. November 25, 2016. The Hollywood Reporter. TV Ratings: NBC Parade Climbs – But Fox Football Dominates Thanksgiving. Retrieved November 29, 2016. http://www.hollywoodreporter.com/live-feed/tv-ratings-nbc-parade-climbs-but-fox-football-dominates-thanksgiving-950471

[14] Fleming, Mike, Jr. June 16, 2016. Deadline. Fox Makes It Official: Stacey Snider Is Chairman/CEO In June 2017; Jim Gianopulos Takes Role At 21st Century Fox. Retrieved November 29, 2016. http://deadline.com/2016/06/jim-gianopulos-stacey-snider-fox-executive-changes-1201773922/

[15] McClintock, Pamela. November 7, 2016. The Hollywood Reporter. Fox Shake-Up: Marketing President Marc Weinstock Departing Studio. Retrieved November 29, 2016. http://www.hollywoodreporter.com/news/fox-shake-up-marketing-president-marc-weinstock-departing-studio-944878

[16] Pech, Dana. November 9, 2016. Movie Pilot. Why ‘Assassin’s Creed’ Will Break The Video Game Movie Curse. Retrieved November 29, 2016. http://moviepilot.com/p/why-assassins-creed-will-break-the-video-game-movie-curse/4142547

[17] Chitwood, Adam. November 27, 2016. Collider. Fox Sets Release Dates for Two Secret Marvel Movies; Pushes ‘Kingsman 2’ to October 2017. Retrieved November 29, 2016. http://collider.com/fox-marvel-movies-release-dates-deadpool-3/

Images

(In order of appearance) 

[1] Retrieved November 29, 2016. https://www.zacks.com/stock/news/194013/what-rupert-murdochs-news-corp-and-21st-century-fox-really-own

[2] Retrieved November 29, 2016. http://www.wikimedia.org/wikipedia/commons/thumb/c/c8/Rupert_Murdoch_-_Flickr_-_Eva_Rinaldi_Celebrity_and_Live_Music_Photographer.jpg/220px-Rupert_Murdoch_-_Flickr_-_Eva_Rinaldi_Celebrity_and_Live_Music_Photographer.jpg

[3] Retrieved November 29, 2016. http://cdn.thedailybeast.com/content/dailybeast/articles/2015/06/26/how-a-fox-news-host-handled-sex-assault/jcr:content/image.img.2000.jpg/1435310106558.cached.jpg

[4] Retrieved November 29, 2016. http://www.adweek.com/files/imagecache/node-inline/media-visionary-roger-ailes-hed-2015.jpg

[5] Retrieved November 29, 2016. http://global.fncstatic.com/static/v/all/img/og/og-fn-foxnews

[6] Retrieved November 29, 2016. http://www.manutd.com/sitecore/shell/~/media/D971B02AD7A246678E4092D1D2AE12C6.ashx?w=1280&h=720&rgn=0,281,2160,1501

[7] Retrieved November 29, 2016. https://images-na.ssl-images-amazon.com/images/M/MV5BMjQyODg5Njc4N15BMl5BanBnXkFtZTgwMzExMjE3NzE@._V1_UY268_CR1,0,182,268_AL_.jpg

 

Discovery Communications

Bethany Kozachuk and Christina McDonagh
Discovery Communications' logo

Discovery Communications’ logo

Discovery Communications
One Discovery Place
Silver Spring, MD 20910

Phone Number: (240) 662-2000
Website: http://www.discovery.com/

OVERVIEW

iceberg_alley

Poster for Iceberg Alley

Founded in 1982 by University of Alabama graduate John Hendricks, Discovery Communications has become one of the most influential companies in the global cable market. Discovery struggled at first, but deals with the cable operators such as Telecommunications Inc, Cox Cable Communications, and Newhouse Broadcasting group soon arose. By June of 1986, Discovery had seven million subscribers; spurring the company to commission its first original program, Iceberg Alleyin 1989[11] [4]

discovery-channel-logo-old-1024x768

Discovery Channel Logo

tlc_logo

TLC Logo

 

animal-planet-logo

Animal Planet Logo

Discovery Communications has become one of the leaders in global entertainment. The company consists of 33 channels worldwide, three full-service production studios, and in the US, 13 cable and satellite networks that compromise the industries most widely distributed portfolios in the US. This portfolio includes three major channels: Discovery Channel, TLC (formerly The Learning Channel) and Animal Planet. These three channels reach over 91 million households in the US and have kept Discovery Communications at the top of the industry. Discovery’s content can be divided into three genres: Kids, Sports, and Non- fiction.[6] [11]

 

Key Executives

President & CEO of Discovery Communications

President & CEO of Discovery Communications

The President and CEO of Discovery Communications is David Zaslav. Zaslav has led the company since 2007, and under his reign, Discovery has begun trading as a public company on the Nasdaq stock exchange. As a result, in 2014, the Discovery became a Fortune 500 company. [10]

Bruce Campbell, Chief Development Officer and General Counsel

Bruce Campbell, Chief Development Officer and General Counsel

Andrew Warren-Senior Executive VP and CFO

Andrew Warren-Senior Executive VP and CFO

President Discovery Networks International

Jean-Briac Perrette President
Discovery Networks International

2016-2017 Program Roster

shark-week

Shark Week Poster

For the 2016-2017 Programming Slate, Discovery announced that their lineup would consist of 22 returning shows, but also 20 new shows as well. Cooper’s Treasure Sacred Steel, The Wheel, and a Deadliest Catch spin-off,  Deadliest Catch:Dungeon Coveare four of the highly anticipated shows coming out this season. Discovery also announced that they would be launching a revolutionary anthology series called Discovery ImpactThe series was aired at the 2016 Sundance Film Festival and will focus on the impact that mankind has had on the earth’s environment, as well as what individual people can do to solve the global environmental issues.[9] Fan favorites like Naked and Afraid, Gold Rushand Bering Sea Gold are on the roster for this year as well. The week long event Shark Week has been kept on as well. Last year’s Shark Week had the highest ratings ever for the event. All of these programs have kept Discovery at the top of the pack, but there are still gaps that need to be filled in this programming giant’s empire. [1]

Financials

According to the third quarter reports, net income available to Discovery decreased 22% to $219 million from $279 million due to a $50 million after-tax impairment charge because of a Lionsgate investment and higher equity-based compensation. This was fractionally offset by a decrease in taxes, currency-related transaction gains, and higher contribution from equity investors income. Discovery’s earnings per share (EPS) decreased 16% to $0.36 because of lower DCI Net Income, but that was partially offset due to lower shares outstanding.  Adjusted EPS decreased 15% to $0.40 compared to $0.47 of last years third quarter. Free cash flow dramatically increased 75% to $410 million due to lower cash taxes and the timing of working capital.[3] With all of this financial information, it seems as though Discovery has done well for itself in the third quarter, but there are some concerns within the company about distributing media more effectively and their ranking in the stock exchange.[7]

While Discovery is considered to be wildly successful, the company is not immune to hardships. Discovery posed an earnings surprise (down) of 16.39% and in the past three of four quarters has had an earnings surprise averaging 6.02%. These swings in earnings are due to the company’s struggle to produce advertising revenue. Also, problematically, a major source of its revenue comes from 10% of its customers.[15]

discovery-stocks-final

Chart of Stock Prices 2015-2016

Stocks at discovery have been sporadic over the years. While the company was doing well in 2015, once 2016 hit, Discovery seemed to take a sharp drop, according to the NASDAQ. Stock has been consistently declining over the past months, but there is still hope for Discovery. With the growth of online streaming and OTP (over the top), many customers are cutting their ties to cable and satellite. In order to keep viewers tuning in, Discovery Communications has begun efforts to get its content on as many screens as possible.[15]

Happening Now

par_560media

560 Media Logo

In November, Discovery joined a group of over thirty producers and distributors that signed with 560 Media. 560 Media is a Global Collections Agency that offers clients intelligence-based revenue-management services.[8] The agency specializes in Television and Film rights that are beneficial to companies in a fragmented and intricate market. Discovery’s partnering with 560 Media will certainly give the evolving company the new edge that it desperately needs. [12] The Director of Global Music at Discovery thinks that,”…560 Media’s fresh and flexible approach to catalog representation will assist Discovery in this specialist area, allowing us to maximize remuneration in the international arena.” Management at Discovery is also working on shifting their focus toward secondary rights management for their high quality catalog. 560 Media will enable Discovery to keep tabs on their revenues and help Discovery gain earning power that is crucial in today’s market.[13]

While Discovery has been late to the online TV business, it certainly has been making

Discovery GO's logo. The streaming app introduced on December 2nd 2015.

Discovery GO’s logo. The streaming app introduced on December 2nd 2015.

efforts to catch up with other companies like Disney. Last year, the company began allowing online streaming through the Discovery GO app to cable and satellite subscribers. Research found that the key demographic for the app was between 18 and 34, yet that hasn’t quite helped the network grow. [14] Discovery also announced that they will be starting a joint venture to hasten the growth of its Eurosport channel to an online-format as well as new collaborative efforts with Mediacom, Hulu, Sony Corporation, and CBS Corp. Discovery has also launched a joint deal to produce a new digital-only media holding company named Group9. Group9 will be a digital and social media video provider that will have an estimated 3.5 billion views per month. Discovery will own 39% of the entity and have the option to purchase the whole company outright.[2]

The Future?

Discovery has recently partnered with AT&T to expand their streaming services with DirecTV Now. Other networks and program providers like Disney, HBO, Turner, and NBC Universal have signed up to work with AT&T in their new DirecTV Now subscription video on demand (SVOD) program. There will be three streaming options provided. Two will charge a monthly rate, and the third, Freeview, will be ad-supported. There will be a wide variety of content on the streaming service that will vary depending upon which option the subscriber chooses.[16]

BIBLIOGRAPHY

[1]. @Cablefax. “Discovery Upfront.” Cablefax. N.p., 01 Apr. 2016. Web. 29 Nov. 2016.

[2]. “Can Discovery Communications Survive in a Streaming TV World?” NASDAQ.com. N.p., 18 Nov. 2016. Web. 29 Nov. 2016. http://www.fool.com/investing/2016/11/18/can-discovery-communications-survive-in-a-streamin.aspx

[3].”Christian Wheeler.” ReviewForTune. N.p., 18 Nov. 2016. Web. 29 Nov. 2016.

[4]. “Discovery Communications, Inc. – Company Profile, Information, Business Description, History, Background Information on Discovery Communications, Inc.” Discovery Communications, Inc. – Company Profile, Information, Business Description, History, Background Information on Discovery Communications, Inc. N.p., n.d. Web. 29 Nov. 2016.

[5]. “Discovery Communications, Inc.” Discovery Communications Inc. N.p., n.d. Web. 29 Nov. 2016.

[6]. “Discovery Communications, Inc.” Discovery Communications Inc. N.p., n.d. Web. 29 Nov. 2016.

[7]. “Discovery Third-Quarter Earnings, U.S. Ad Revenue Drop.” Surghar Daily. N.p., 03 Nov. 2016. Web. 29 Nov. 2016.

[8]. Editor. “Discovery Taps 560 Media for Rights Revenue Collection.” Rapid TV News. N.p., n.d. Web. 29 Nov. 2016. www.fiercecable.com/broadcasting/discovery-signs-deal-560-media-for-secondary-rights

[9].Hipes, Patrick. “Discovery Channel Greenlights Unibomber Scripted Series & ?Deadliest Catch Spinoff For 2016-2017; Sibling Nets Unveil New Slates Upfronts.” Deadline. N.p., 31 Mar. 2016. Web. 29 Nov. 2016. corporate.discovery.com/discovery-newsroom/discovery-channel-announces-2016-2017-upfront-programming-slate/

[10]. “CNBC Excerpts: David Zaslav, CEO of Discovery Communications, on CNBC’s Closing Bell Today.” CNBC. N.p., 19 Oct. 2016. Web. 29 Nov. 2016.

[11]. @IDAorg. “Two Decades of Discovery, and There’s Still More to Learn.” International Documentary Association. N.p., n.d. Web. 29 Nov. 2016. www.documentary.org/magazine/two-decades-discovery-and-theres-still-more-learn

[12]. Munson, Ben. “Discovery Signs Deal with 560 Media for Secondary Rights.” FierceCable. N.p., 18 Nov. 2016. Web. 10 Nov. 2016.

[13]. “NEWS.” 560 MEDIA. N.p., n.d. Web. 29 Nov. 2016. www.560media.com/news/

[14]. Rossolillo, Nicholas. “Can Discovery Communications Survive in a Streaming TV World?” The Motley Fool. N.p., 01 Jan. 1970. Web. 29 Nov. 2016.

[15]. Street, Active Wall. “Post Earnings Coverage as Discovery Communications Misses Earnings and Revenue Forecast.” Baystreet.ca. N.p., n.d. Web. 29 Nov. 2016. www.baystreet.ca/viewarticle.aspx?id=448707

[16]. https://corporate.discovery.com/wp-content/uploads/2016/11/163002_2016_Q3_AT-A-GLANCE_WEB.pdf

Disney

by JACK ROSE, AUDREY LEW, and BRITTANY ORTIZ
The Walt Disney Company

Disney Logo [1]

Background

Disney is a leading producer, owner, and distributor of media that owns, among many other things, broadcast network ABC; movie studios Pixar, Walt Disney Animation, Marvel, and Lucasfilm; Walt Disney Parks and Resorts that attracted nearly 150 million people in 2015 [2]; and cable sports network ESPN [3]. Between ABC, its affiliates, and ESPN, Disney operates more than 300 channels worldwide, while its movie studios own the rights to The Avengers family and Star Wars [4]. The last Star Wars release became the highest grossing domestic film earlier this year and with another releasing this December, the company’s film division remains strong [5]. However, fluctuating results on the television side have led Disney to invest in new technologies and a desire to expand international reach birthed a new theme park in China, which opened earlier this year.

Corporate Structure

Bob Iger

CEO Bob Iger [1]

Disney’s Chief Executive since 2005, Bob Iger helmed the acquisitions of Pixar, Marvel, and Lucasfilm. Since Iger’s promotion from Chief Operating Officer, Disney’s stock price has risen more than $70 while it’s TV division has come to account for half of the company’s profit [6]. Nearing the end of his career, Iger has repeatedly delayed his retirement and most recently set 2018 as the expiration date for his own tenure. His last task will be selecting his successor, after a recent candidate failed to last as heir.

Disney Organizational Chart

Disney’s Organizational Chart [7]

Beyond Iger, various chairmen run each of Disney’s major compartments and the company’s board of directors is comprised of 11 members. However, it is this organizational chart, distributed by Walt Disney Studios in 1943, that largely explains Disney’s management philosophy [7]. Rather than the typical hierarchy, the chart displays an interlocking web of managers, producers, and creators that are needed to produce a film. This organization is intended to encourage creativity and teamwork by emphasizing collaboration rather than chain of command. Each role supports, instead of merely instructing, another.

Financials

Annual revenue, profit, and net income have increased yearly since at least 2013, as has Disney’s valuation of its assets and balance sheet as whole. Disney’s revenue dwarfs that of most of its competitors in media, exceeded only by Sony and other conglomerates that produce and own as much content as Sony and Disney. Disney’s stock price is similarly higher than most competitors, currently hovering around $100 [8]. The company’s price per share seems to be inextricably linked to the success of ESPN, which is struggling with subscriber losses and adapting to the future (see “Investments in Technology” section below).

Disney Stock

Disney’s Stock Price for last two years [8]

Investments in Technology

mlbam_fb_logo

MLB Advanced Media Logo [11]

Disney’s future focus is in technology as it attempts to revitalize ESPN and stay on the cutting edge of content creation and media. Primarily, in August the company invested $1 billion for a 33% stake in Major League Baseball’s BAMTech, a leading television streaming company. The deal included an option for Disney to take a majority stake in the company down the road. The first collaboration between the two will be BAMTech’s creation of a standalone streaming service for ESPN, which Disney hopes will help ease the network’s subscriber losses and struggling ratings. BAMTech adds 7.5 million paid subscribers across a multitude of streaming platforms to Disney’s already massive user base [9]. The investment in BAMTech isn’t completely black and white, however. Television’s trend toward skinny bundles complicates the relationship between every content producer and cable provider, with Sling, DirecTV, Hulu, and more getting into the live over-the-top business. Disney’s BAMTech investment suggests a possibility that Disney itself could run a direct-to-consumer cable distributor itself [10].

Throughout this year, rumors swirled about the possibility of Disney purchasing Snapchat, Twitter, and/or Netflix, though analysts agree: none of these are likely. Twitter’s struggle to remain profitable and stabilize its stock price creates nonstop purchase rumors, but it seems that Disney doesn’t stand to benefit much from a Twitter acquisition [11]. Snapchat has proved to be a unique outlet for Disney’s content, but doesn’t seem to be a likely purchase for the social media company [12]. Though the investment in BAMTech signifies Disney’s interest in streaming, Netflix doesn’t appear to be a perfect partner, either. Netflix’s dominance in the streaming market has waned as challengers such as Amazon and Apple have stolen subscribers [13].

Box Office

Moana

Star Wars  Moana banner [17]

After the November 23 release of Moana, Disney is nearing $2.5B in total domestic box office gross for 2016 [14]. With the top four grossing films of 2016 thus far (Finding DoryCaptain America: Civil War, The Jungle Book, and Zootopia), the company topped $6B in worldwide box office gross for the first time in its history [15]. This new record will only increase as Moana and Doctor Strange continue to screen and Disney’s final 2016 film releases: the newest film, Rogue One. Beyond the box office, movies like Star Wars, Finding Dory, and Moana provide massive profits in merchandising, both in America and abroad. In 2013, Disney merchandise sales brought in over $40B.

Theme Parks

On June 16, Disney’s fourth international theme park opened in Shanghai, with the tagline “authentically Disney, distinctly Chinese” [16]. The company avoided western branding and symbols by changing street names within the park and by filling the concessions with 70% Chinese food. Traditional Disney characters can be seen wearing traditionally Chinese silk costumes and speaking the native language. The Shanghai Disney Resort seeks to take advantage of the massive potential offered by China and the wider Asian market.

Shanghai Disney

Shanghai Disney Resort [18]

Conclusion

Despite Disney’s losses in television, its massive successes at the box office in 2016 have made up for it. The control of Star Wars, Marveland Pixar promises success in the motion pictures department nearly every year. Further, Disney’s land holdings of theme parks underscore the company’s finances with physical propoerty–while most media conglomerates own intellectual property, Disney holds more tangible assets as well. The company’s investments in technology put it in a good place for the future–its theme parks’ MagicBands have already proven successful. But while the company must hope these investments pay off, it also faces the uncertain future of navigating an evolving marketplace with a new CEO. Iger’s selection of his successor is by far the most important storyline to follow within the massive world of Disney.

Sources

  1. About The Walt Disney Company. Retrieved November 25, 2016. https://thewaltdisneycompany.com/about/
  2. The Data Team. June 16, 2016. The Economist. A New Disney Theme Park Opens in China. Retrieved November 25, 2016. http://www.economist.com/blogs/graphicdetail/2016/06/daily-chart-11
  3. Johnson, Madeleine. June 16, 2016. Zacks. Your Complete Guide to All the Things Owned by Disney. Retrieved November 25, 2016. https://www.zacks.com/stock/news/220682/your-complete-guide-to-all-the-things-owned-by-disney
  4. Carpenter, J. William. October 29, 2015. Investopedia. Top 5 Companies Owned by Disney. Retrieved November 25, 2016. http://www.investopedia.com/articles/markets/102915/top-5-companies-owned-disney.asp
  5. Brevet, Brad. January 7, 2016. Box Office Mojo. ‘Star Wars: The Force Awakens’ Becomes Highest Grossing Domestic Release of All-Time. Retrieved November 25, 2016. http://www.boxofficemojo.com/news/?id=4142&p=.htm
  6. Belloni, Matthew. June 22, 2016. The Hollywood Reporter. In-Depth With Disney CEO Bob Iger on China Growth, ‘Star Wars’ Reshoots and Political Plans: “A Lot of People Have Urged Me to [Run]”. Retrieved November 25, 2016. http://www.hollywoodreporter.com/features/bob-iger-interview-star-wars-905320
  7. Hirasuna, Delphine. August 7, 2009. At Issue Journal. Walt Disney’s Creative Organization Chart. Retrieved November 25, 2016. http://www.atissuejournal.com/2009/08/07/walt-disney%E2%80%99s-creative-organization-chart/
  8. Yahoo! Finance. The Walt Disney Company (DIS). Retrieved November 25, 2016. https://finance.yahoo.com/quote/DIS/financials?p=DIS
  9. Brown, Maury. August 9, 2016. Forbes. Disney Buys $1B Stake In MLB’s BAMTech, To Launch ESPN Streaming Service. Retrieved November 25, 2016. http://www.forbes.com/sites/maurybrown/2016/08/09/disney-co-makes-1-billion-investment-becomes-minority-stakeholder-in-mlbams-bamtech/#1f44b1915972
  10. Markman, Jon. August 23, 2016. Forbes. Disney Streaming Into A Perilous Future. Retrieved November 25, 2016. http://www.forbes.com/sites/jonmarkman/2016/08/23/disney-streaming-into-a-perilous-future/#4f34784210f7
  11. Kafka, Peter. September 26, 2016. Recode. Why Disney won’t buy Twitter. Retrieved November 25, 2016. http://www.recode.net/2016/9/26/13062276/disney-won-t-buy-twitter
  12. Munarriz, Rick. April 9, 2016. The Motley Fool. Disney Isn’t Buying Netflix or Snapchat. Retrieved November 25, 2016. http://www.fool.com/investing/general/2016/04/09/disney-isnt-buying-netflix-or-snapchat.aspx
  13. Cohan, Peter. October 5, 2016. Forbes. Why Walt Disney Should Not Buy Netflix. Retrieved November 25, 2016. http://www.forbes.com/sites/petercohan/2016/10/05/why-walt-disney-should-not-buy-netflix/#710bdc20395d
  14. Box Office Mojo. Studio Market Share. Retrieved November 28, 2016. http://www.boxofficemojo.com/studio/?view2=yearly&view=parent&p=.htm
  15. Tartaglione, Nancy. November 6, 2016. Deadline Hollywood. Disney Crosses $6B At Global Box Office; First Time In Studio’s History. Retrieved November 28, 2016. http://deadline.com/2016/11/disney-crosses-six-billion-dollars-global-box-office-studio-record-doctor-strange-finding-dory-zootopia-captain-america-1201849749/
  16. Gardner, Hannah. June 16, 2016. USA Today. Disney’s new Shanghai park is supersized. Retrieved November 28, 2016. http://www.usatoday.com/story/news/world/2016/06/15/disneys-new-shanghai-park-supersized/85920926/
  17. Disney. Moana. Retrieved November 28, 2016. http://movies.disney.com/moana

21st Century Fox

Gina Reitenauer, Erika Lipinski, Dwayne Ellmore

21st-century-fox-logo-1024x768[1]

Adress/ Contact Info:

1211 6TH AVE.

NEW YORK, NY 10036

(212) 852-7000

Key Executives:

James Murdoch Co-Chief Operating Officer

James Murdoch- CEO

 

Murdoch has been with the Fox corporation for over 20 years, over these years, he has held a variety of different leadership positions in the company.  He was appointed as the CEO in 2015.

lachlan-murdoch1

Lachlan Murdoch- Executive Chairman

 

 

 

L. Murdoch has been in the communications industry for over twenty years.  Some of his past leadership positions for the company include: Board of Directors member, Deputy Chief Operating Officer, and Co-Chairman of the corporation.

Rupert-Murdoch

Rupert Murdoch- Executive Chairman

 

R. Murdoch has served as both the CEO and Chairman of the company, a role that he had since 1979 when the corporation was known as “News Corporation” . R. Murdoch was appointed to his current position as Executive Chairman of the company on July 1st, 2015.

reed-nolte

Reed Nolte- Executive Vice President of Investor Relations

 

Before becoming an executive at 21st Century Fox, Mr. Note held a variety of different financial positions at communications companies.  Most notably, he was the Assistant Treasurer at Paramount Communications.  Additionally, Mr. Nolte was previously the Vice President of Investor Relations at Viacom.

 

julie-henderson

Julie Henderson- Chief Communications Officer

 

Ms. Henderson is the Chief Spokesperson for the company.  Her previous experience in Public Relations and the communications field extensive; she has worked as the Senior Vice President of MPRM Public Relations and also Fox Interactive Media.  Ms. Henderson has been apart of the 21st century fox team since 2012 when she took her current position.

john-nallen-final

John Nallen- Senior Executive Vice President, Chief Financial Officer

 

 

John Nallen assumed his current role at 21st century fox in July of 2013.  Mr. Nallen originally joined the “News Corporation” back in 1995 after working at Arthur Andersen as a partner.

[2]

Brief Overview:

Twenty-First Century Fox is one of the largest mass media conglomerates in the world. The four major segments of this company include cable network programming, television, filmed entertainment, and direct broadcast satellite television. Twenty-First Century Fox is parent organization to many subsidiaries. For instance, Fox Entertainment Group is a subsidiary of which are many of Fox’s well-known divisions, such as FOX News Channel, Twentieth Century Fox Film, and Fox Network Group. Going even further, Fox Network Group is the parent of many other subsidiaries as well, one of them being Fox Broadcasting Company. [3]

fox-news-channel_logo-final 20th_century_fox_0 fng-logo [4]

FOX Broadcasting Company, like other traditional television outlets, is experiencing declining viewership. This is partly due to the fact that media consumers are embracing newer digital platforms, which leads broadcasting networks like FOX to be dependent on the news and coverage of national and international events, such as the 2016 Summer Olympics, the 2016 Election, and general sports coverage. For instance, FOX is hopeful that its coverage of the Super Bowl in 2017 will boost ratings as it did in the past. [5]

Finances:

Stock Price:

The stock of the 21st century corporation, has not changed much since the beginning of the year through the current fourth quarter of stock trading. The peak point of the stock price in 2016 was on April 25th, 2016 at $31.06. The lowest point of the stock price was on September 9th, 2016 when the stock price was $23.57.  Since this low point, the stock has only rebounded to the point where it is as of Mid-November (Nov 15th, 2016) at $27.45. [6]

screen-shot-2016-11-29-at-12-24-14-am

Revenue:

For the fiscal year 2015, the revenue for 21st Century Fox was $28.99 billion dollars and the the revenue for the 2016 fiscal year was $27.33 billion. In Quarter 4 of 2016, the company beat expert’s estimates coming in at $6.65 billion.  This marked at 7% increase over the prior year’s Quarter 4 results. [7] As of 2016, 21st Century Fox is the 4th highest grossing media company in the world, only behind Alphabet, The Walt Disney Company, and Comcast. [8]

Current Projects/ Recent Releases:

Some Fox films in theaters now include: Trolls, Keeping Up with the Jones, and the recent release Rules Don’t Apply.

Rules Don’t Apply

Rules Don’t Apply was released by Twenty-First Century Fox on November 23rd, 2016, two days prior to Thanksgiving. There are many Thanksgiving releases this week from competing studios such as: Moana from Walt Disney Studios and Bad Santa 2 from Broad Green Pictures. We’ll see how Rules Don’t Apply performs in comparison to the films from other studios. Their last release, Trolls, was expected to gross 35 to 40 million, yet ended up grossing $45.6 million in its first week. [9]

Assassins Creed

[10]

Assassins Creed is based on the video game franchise and will hit theaters on December 21st, 2016. Several sources in the trade say that Assassins Creed won’t make money. The movie budget has not been released yet, but it is estimated to be between $100-200 million.[11] With a movie budget that high it could be hard to break even.

Listed in the image below are future releases to look out for:

screen-shot-box-office [12]

What’s happening/ News: 

On July 26th, 2016 former Fox CEO and Chairman, Robert Ailes, resigned from his position. Ailes was replaced by successor Rupert Murdoch. [13] The scandal broke out when Gretchen Carlson, an ex Fox News Anchor, filed a sexual harassment lawsuit against Ailes. Carlson won the case and received a settlement of $20 million from Fox. Afterward, dozens of other female workers at Fox came forward also accusing him of sexual harassment. Megyn Kelley, a Fox News Journalist, writes about her experience of sexual harassment from Robert Ailes in her new book Settle For More released on November 15th, 2016. When corporate leaders are misogynistic and abuse their power, it shows a lot about the culture of the studio. The scandal has caused public-relation issues for Fox. Hopefully Murdoch assuming this position of power will end favorably. 

On another note, on Election Day 2016, FOX News debuted a new studio in honor of the company’s 20th anniversary. The studio cost $30 million. [15]

_g4a7409afox-studios-3 [16]

However, despite the new glitzy studio, FOX was still outnumbered by its opponents in the news sector of election coverage ratings; FOX News averaged 3.25 million viewers, putting it in fourth place behind NBC, ABC and CBS consecutively. [17]

However, Bill Shine and Jack Abernethy, the co-presidents of FOX News Channel, are both certain the new studio will lead to success. After gathering colleagues in the new studio, Abernethy assured them: “Our records show that about a little over 190 people have been here from the very beginning, continuously,” Jack said. “Most of you, like me, have been here for only a portion of that time. As I get reacquainted with folks, I find tremendous amount of pride in what we do here – I can assure you that Bill and I are going to do our very best to innovate.” [18]

Future Outlook: 

An article written for Forbes suggests that three factors will spur growth for 21st Century Fox. These factors are:

  1. Increasing advertising revenue due to premium content
    • Because more than half of 21st Century Fox’s revenue comes from subscriptions and advertising, and based on recent success in ratings, it is likely that both consumers and advertisers alike will be drawn to the content. An example of a movie that indicates the recent success of the company’s content is Deadpool,
  2. The ability to stream media
    • With a 30% stake in Hulu, the company can compete with other media-streaming powerhouses like Netflix. With the addition of live streaming television on Hulu next year, FOX can expect a boost in revenue. Fox is also hoping to make streaming arrangements with Sony and Sling TV.
  3. Entertainment production (both film and television)
    • With an expected increase from  $2.3 billion within the next year in terms of licensing revenues, and 20% of Fox’s value grounded in the production of film and television series, Fox is expecting growth and loyalty from distributors as new distribution platforms continue to emerge. [19]

Sources:

[1] “21st Century Fox Logo | Logok.” Logok. May 08, 2014. Accessed November 16, 2016. http://logok.org/21st-century-fox-logo/.

[2] “Executive Team.” Executive Team | 21st Century Fox. N.p., n.d. Web. 29 Nov. 2016. https://www.21cf.com/management/executive-team.

[3] “Businesses.” Businesses | 21st Century Fox. Accessed November 16, 2016. https://www.21cf.com/businesses.

[4] “Businesses.” Businesses | 21st Century Fox. Accessed November 16, 2016. https://www.21cf.com/businesses.

[5] Great Speculations. “Fox’s Broadcasting Revenue Growth Is Largely Dependent On Its Sports Programming.” Forbes. February 9, 2016. Accessed November 16, 2016. http://www.forbes.com/sites/greatspeculations/2016/02/09/foxs-broadcasting-revenue-growth-is-largely-dependent-on-its-sports-programming/#65c1dd6269b3.

[6] “21st Century Fox Inc. Cl A.” FOXA Stock Quote – 21st Century Fox Inc. Cl A Stock Price Today (FOXA:NASDAQ) – MarketWatch. N.p., n.d. Web. 29 Nov. 2016. http://www.marketwatch.com/investing/stock/foxa.

[7] Statista. “Revenue Generated by 21st Century Fox in the Fiscal Years 2011-2016. Accessed November 27th, 2016. https://www.statista.com/statistics/262513/21st-century-foxs-annual-revenue/

[8] O’Reilly, Lara. “The 30 Biggest Media Companies in the World.” Business Insider. Business Insider, 31 May 2016. Web. 29 Nov. 2016. http://www.businessinsider.com/the-30-biggest-media-owners-in-the-world-2016-5/#4-21st-century-fox–1867-billion-in-media-revenue-27.

[9] “‘Rules Don’t Apply’ Roundtable with Warren Beatty and Key Crew.” IndieWire. N.p., 27 Nov. 2016. Web. 29 Nov. 2016. http://www.indiewire.com/2016/11/rules-dont-apply-warren-beatty-crew-roundtable-interview-1201749928/.

[10] Nicolas Wright & James A. Woods and Dean Devlin & Roland Emmerich and James Vanderbilt. “Independence Day: Resurgence.” Independence Day: Resurgence | 20th Century Fox. N.p., n.d. Web. 29 Nov. 2016. http://www.foxmovies.com/movies/independence-day-resurgence.

[11] “Ubisoft Doesn’t Think Assassin’s Creed Movie Will Be Very Profitable.” Screen Rant. N.p., 08 July 2016. Web. 29 Nov. 2016. http://screenrant.com/assassins-creed-movie-ubisoft-box-office-predictions/.

[12] “20th Century Fox Upcoming Releases.” 20th Century Fox Upcoming Releases. N.p., n.d. Web. 29 Nov. 2016. http://www.boxofficemojo.com/studio/chart/?view2=upcoming&view=company&studio=fox.htm.

[13] 21 CF Staff. “Roger Ailes Resigns as Chairman and CEO of Fox News Channel and Fox Business Network, and Chairman Fox Television Stations”. 21st Century Fox Press Releases. July 21, 2016. Accessed November 22, 2016. https://www.21cf.com/news/21st-century-fox/2016/roger-ailes-resigns-chairman-and-ceo-fox-news-channel

[14] Grynbaum, Michael.ox Settles With Gretchen Carlson Over Roger Ailes Sex Harassment Claimshttp://www.nytimes.com/2016/09/07/business/media/fox-news-roger-ailes-gretchen-carlson-sexual-harassment-lawsuit-settlement.html

[15] 21 CF Staff. “FOX News Channel Celebrates Its 20th Anniversary by Introducing a New State-of-the-art Studio to Debut on Election Day.” FOX News Channel Celebrates Its 20th Anniversary by Introducing a New State-of-the-art Studio to Debut on Election Day | 21CF BLOG. October 7, 2016. Accessed November 16, 2016. https://blog.21cf.com/blog/2016/10/07/fox-news-channel-celebrates-20th-anniversary-new-studio.

[16] “Fox News Unveils Nearly $30 Million Election-Night Studio.” AdWeek. November 6, 2016. Accessed November 16, 2016. http://www.adweek.com/news/television/fox-news-unveils-nearly-30-million-election-night-studio-174405

[17] “Election Night Broadcast Numbers down a Bit from 2012: Tuesday Final Ratings.” TV By The Numbers by Zap2it.com. November 10, 2016. Accessed November 16, 2016. http://tvbythenumbers.zap2it.com/daily-ratings/tuesday-final-ratings-nov-8-2016/.

[18]”Fox News Unveils Nearly $30 Million Election-Night Studio.” AdWeek. November 6, 2016. Accessed November 16, 2016. http://www.adweek.com/news/television/fox-news-unveils-nearly-30-million-election-night-studio-174405

[19] Forbes. “These Three Factors Could Drive Growth For 21st Century Fox In Future”. September 27, 2016. Accessed November 28, 2016. http://www.forbes.com/sites/greatspeculations/2016/09/27/these-three-factors-could-drive-growth-for-21st-century-fox-in-future/#56b0884d30ae.

 

Hulu

http://www.freelogovectors.net/hulu-logo-eps-file/

hulu company logo [1]

Founded: March 2007 by Beth Comstock & Jason Kilar

Jason Kilar

Jason Kilar [3]

Beth Comstock

Beth Comstock [2]

CEO: Mike Hopkins

mike_hopkins

Mike Hopkins [19]

SVP, Head of Distribution: Tim Connolly

tim_connolly

Tim Connolly [19]

SVP, Head of Content: Craig Erwich

craig_erwich

Craig Erwich [19]

SVP, General Counsel: Chadwick Ho

chad_ho

Chadwick Ho [19]

About

Hulu is an OTT (over the top) streaming service launched in 2008 to provide users with “hundreds of thousands of hours of the best of the best television programming and movies to subscribers with limited commercials” [4]. Hulu offers its services in both the United States and Japan on two pay scales: “with limited commercials for $7.99 per month or with no commercials for $11.99 per month” [4]. New users can also try Hulu for a 30-day free trial.

Compared to other OTT streaming services like Netflix and HBO Go, Hulu has the benefit of being owned by three of the largest programming distributors: NBCUniversalFox, and Disney-ABC. In total, Hulu has over 500 content partners [4], providing them a great advantage in programming over their competitors. On the advertising side, Hulu has partnerships with over 2,000 brand and companies, helping it gain recognition as one of “the top ad-supported online video sites” [4]. Hulu boasts a subscriber base of 9 Million users whose viewership trends are tracked by ComScore, Nielson, and Quantcast.

 Background

Hulu was first announced during the Super Bowl XLII broadcast via an Alec Baldwin-starring commercial. Initially, the platform was available for free via an ad-supported system and at a premium level called “Hulu Plus” without ads. Archived content from its three powerhouse distributors (NBC/Fox/Disney) could be viewed in on an unlimited basis on both platforms. In 2011; however, Hulu announced that content would be available on the service the day after premiering once users authenticated their service-providers [5]. Later that year, the company struck a deal with the CW Network to also premiere their content next-day [6]. Two years later, Hulu signed on with BBC Worldwide North America to “bring as many as 2,000 episodes from 144 different BBC titles to a wider American audience” [7].

In Early 2015, AT&T struck a deal with Hulu to allow for streaming on “the telecom company’s websites and mobile apps” [11]. In June of 2015, Showtime became “the first premium service to be offered by Hulu” [8], in a monumental deal that allowed the company to effectively compete HBO Go by offering the addition of Showtime‘s premium content at only an additional $8.99/month as compared to HBO Go‘s $11.99/month charge [8]. This deal also showcased the Hulu platform’s ability to support premium add-ons, highlighting them as a powerful distribution tool for premium content providers. In

Original Programming

In 2011, Hulu partnered with documentary film-maker, Morgan Spurlock, on a 6-episode series titled, “A Day In The Life” [9]. The show was available to both free and premium subscribers and chronicled Spurlock as he followed a famous individual around for a day. In 2013, the company ramped up it’s original content by premiering “three original series and seven exclusive shows” [10]. As of April, 2016, the platform boasts 23 original titles, ranging from shows like The Awesomes to Deadbeat. 

Exclusive Rights Deals

Currently, Hulu is focussed on acquiring rights to exclusive content and original series in order to lure potential users. This January, the company gained exclusive rights to stream “Lifetime’s critically acclaimed drama series from A+E Studios, UnREAL” [11] This move, which gambled on the success of a critically acclaimed show after it’s first season, highlights the mindset of much of the company’s moves thus far in 2016. In addition to UnReal, Hulu also picked up the rights to Chance, “a provocative psychological thriller that focuses on a forensic neuropsychiatrist who reluctantly gets sucked into a violent and dangerous world of mistaken identity, police corruption and mental illness” [12].

On January 27, Hulu announced a “landmark output deal” with IFC Films that makes “Hulu the exclusive streaming home for all future documentary releases from IFC Films, which will include all documentaries from the brands IFC Films, Sundance Selects and IFC Midnight” [15]. In a first-of-its-kind deal, all IFC films will now go directly from theaters to the Hulu platform in the first “one-window” agreement of its kind [15].

Curious George [17]

Curious George [17]

In March, Hulu and Universal announced a deal that gives the platform exclusive rights to the Curious George series for past and future releases within the window of a three-year deal [16]. In total, Hulu users “gain access to all nine seasons – over 100 episodes – of CURIOUS GEORGE® TV series”. Additionally, Hulu will be the home to all Curious George feature-length films and the destination of “direct-to-TV specials” [16].

Content Creator

Aside from picking up the rights to existing content, Hulu sees itself as a platform for content creators to flex their muscles. Speaking at the Code/Media conference, CEO Mike Hopkins said, “What we’re trying to do is give creators the resources they need … and go for it” [14]. While the company is “lacking a defining show like “Orange Is the New Black” or “Transparent,” [14] Hulu is confident in its ability to win bidding wars for broadcast smash-hits, something apparent in the company’s success at beating out Netflix and HBO Go for the rights to Fox‘s Empire.

Virtual Reality

On March 24, Hulu announced the launch of it’s virtual reality application. Available on Samsung’s Gear VR platform, Hulu says that it will be bringing all current content to the app and will be “augmenting the experience with some of the very best 360-degree video content available” [18]. Additionally, the company states that users will be able to “watch the entire Hulu 2D library in immersive 360-degree environments” [18].

Overview

With the competitive world of OTT streaming as fiery a battle as ever, Hulu sees to distance itself from the competition by providing its users with innovative, exclusive content. To reel in new customers, the company hopes to be the first to strike gold in new ventures such as virtual reality and will continue to hope that its licensing deals continue to drive revenues.

Sources

[1] http://www.freelogovectors.net/hulu-logo-eps-file/

[2] Dan, Avi. “GE’s CMO Beth Comstock Inspires Innovation Through Instigating.” Forbes. Forbes Magazine, 19 Apr. 2012. Web. 25 Apr. 2016. <http://www.forbes.com/sites/avidan/2012/04/19/ges-cmo-beth-comstock-inspires-innovation-through-instigating/#61e6696d3de4>.

[3] Jason Kilar, Chief Executive Officer of Hulu LLC, Speaks during A…” Getty Images. N.p., n.d. Web. 25 Apr. 2016. <http://www.gettyimages.com/detail/news-photo/jason-kilar-chief-executive-officer-of-hulu-llc-speaks-news-photo/123197454>.

[4] About Hulu.” Watch TV and Movies on Xbox, PS3, Apple TV, and More. N.p., n.d. Web. 25 Apr. 2016. <http://www.hulu.com/press/about>.

[5] Stelter, Brian. “Fox to Limit Next-Day Streaming on Hulu to Paying Cable Customers.” The New York Times. The New York Times, 26 July 2011. Web. 25 Apr. 2016. <http://www.nytimes.com/2011/07/27/business/media/fox-to-limit-next-day-streaming-on-hulu.html>.

[6] Wasserman, Todd. “Hulu to Get Current Season of Gossip Girl and Other CW Content.” Mashable. N.p., 28 Oct. 2011. Web. 25 Apr. 2016. <http://mashable.com/2011/10/28/hulu-gossip-girl-cw/#0f8HZKPPEsqq>.

[7] Hulu BBC Deal: A Positive Step After Some Cloudy Times » CEOWORLD Magazine.” CEOWORLD Magazine. N.p., 18 Sept. 2013. Web. 25 Apr. 2016. <http://ceoworld.biz/2013/09/18/hulu-bbc-deal-a-positive-step-after-some-cloudy-times>.

[8] Perez, Sarah. “Showtime Becomes The First Premium Service To Be Offered By Hulu.” TechCrunch. N.p., 23 June 2015. Web. 25 Apr. 2016. <http://techcrunch.com/2015/06/23/showtime-becomes-the-first-premium-service-to-be-offered-by-hulu/>.

[9] Emami, Gazelle. “Morgan Spurlock ‘A Day In The Life’: Original Series Premieres On Hulu (VIDEO).” The Huffington Post. TheHuffingtonPost.com, n.d. Web. 25 Apr. 2016. <http://www.huffingtonpost.com/2011/08/17/morgan-spurlock-a-day-in-the-life_n_929008.html>.

[10] Gates, Sara. “Hulu Expands Original Content, Announces Three Series And Seven Exclusive Shows (VIDEO).” The Huffington Post. TheHuffingtonPost.com, n.d. Web. 25 Apr. 2016. <http://www.huffingtonpost.com/2012/05/21/hulu-expands-original-content_n_1532718.html>.

[11] Smiley, Minda. “AT&T Strikes Deal with Hulu to Offer Subscription Service to Its Customers.” The Drum. N.p., 25 Apr. 2016. Web. 25 Apr. 2016. <http://www.thedrum.com/news/2015/05/14/att-strikes-deal-hulu-offer-subscription-service-its-customers>.

[12] News.” TV Shows and Movies. Ed. Press Admin. N.p., n.d. Web. 25 Apr. 2016. <http://www.hulu.com/press/posts/hulu-acquires-exclusive-svod-rights-to-unreal>.

[13] News.” Watch TV and Movies on Xbox, PS3, Apple TV, and More. N.p., n.d. Web. 25 Apr. 2016. <http://www.hulu.com/press/posts/hulu-picks-up-chance>.

[14] CHMIELEWSKI, Dawn. “Hulu Finally Gets Serious With Original TV Series — But Is It Too Little, Too Late?” Recode. N.p., 18 Feb. 2016. Web. 25 Apr. 2016. <http://recode.net/2016/02/18/hulu-finally-gets-serious-with-original-tv-series-but-is-it-too-little-too-late/>.

[15] Press Admin. “HULU STRIKES FIRST EVER DEAL FOR PAY ONE WINDOW RIGHTS WITH IFC FILMS.” Hulu.com. N.p., n.d. Web. 25 Apr. 2016. <http://www.hulu.com/press/posts/hulu-strikes-first-ever-deal-for-pay-one-window-rights-with-ifc-films>.

[16] Press Admin. “HULU and UNIVERSAL INK GROUNDBREAKING DEAL FOR CURIOUS GEORGE® TV.” Hulu News. N.p., 17 Mar. 2016. Web. <http://www.hulu.com/press/news>.

[17] http://www.rivercenter.org/event/curious-george-2/

[18] Press Admin. “Hulu Launches Virtual Reality Application.” Hulu News. N.p., n.d. Web. 25 Apr. 2016. <http://www.hulu.com/press/posts/hulu-launches-virtual-reality-application>.

[19] Press Admin. “Executives.” Hulu Executives. N.p., n.d. Web. 25 Apr. 2016. <http://www.hulu.com/press/executives>.

Disney/ABC

 

500 South Buena Vista Street
Burbank, CA 91521-4581
(818) 560-1000
www.disneyabcpress.com

History/About the Company

In 1995, Disney/ABC Television Group was born when The Walt Disney Company announced that it would acquire Capital Cities/ABC Inc. for $19 billion [1].

Since then, Disney/ABC Television Group has expanded to provide entertainment, news and kids programming to viewers via more than 200 affiliated stations across the U.S. Disney/ABC Television Group’s properties include ABC Television Network, ABC Owned Television Stations Group, ABC Entertainment Group, Disney Channels Worldwide, Freeform, formerly known as ABC Family, as well as Disney/ABC Domestic Television and Disney Media Distribution. Hyperion publishing and the Company’s equity interests in A+E Networks and Hulu round out the Group’s portfolio of media businesses [2].

 Key Senior Executives

Channing Dungey’s new presidency makes her the first African-American to ever lead a major broadcast network. Formerly the executive vice president of ABC drama development, Dungey helped develop series such as “Scandal,” “Quantico,” “Marvel’s Agents of SHIELD,” “How to Get Away With Murder” and “American Crime” [3].

Screen Shot 2016-04-25 at 8.38.57 PM

Chairman and CEO of The Walt Disney Company (Courtesy of Disney) https://thewaltdisneycompany.com/about/

Finances

Screen Shot 2016-04-25 at 11.30.16 AM

(Courtesy of Yahoo! Finance) http://finance.yahoo.com/q?s=DIS

The Disney/ABC Television Group is publicly traded under The Walt Disney Company (DIS) on the New York Stock Exchange. On Friday, April 22, DIS closed out at $103.77 per share. In the past three months, Disney’s stock prices have been on a pretty steady incline, with a brief dip in early February. The recent strong numbers are a direct result of the Disney release of “Star Wars: The Force Awakens.” Global success of the movie drove record quarterly operating income at both Studio Entertainment and Consumer Products & Interactive Media, which grew at 86% and 23%, respectively [4]. The company reported their quarter one earnings call for 2016 on February 9, 2016. The earnings results webcast can be heard here: https://ditm-twdc-us.storage.googleapis.com/q1-fy16-earnings.mp3.

It was announced on Thursday, April 21, that the Walt Disney Company sold its 50% stake in Fusion, the multi-platform network launched in 2013, making Univision the sole owner. As the majority owner of Fusion, Univision (NYSE: UCI) will create a separate media group that will include recently acquired The Onion and other digital properties. Univision also will take over ABC’s role in handling distribution and ad sales for Fusion’s multi-platform network and will have editorial control [5]. Disney has been changing its own channel line up, rebranding its ABC Family channel as Freeform, targeting millennial women, while investing in Vice Media Inc., which focuses on young men [6]. In recent years, Fusion has been losing money, making the company’s move, most likely, a financially smart one.

2016-2017 Season

Named as the new president of ABC Entertainment, Channing Dungey faces the hard task of mending an ABC schedule with some holes. With five of its nine half-hour comedies already scheduled to return in 2016-17, and another two virtual shoe-ins for renewal, ABC’s sitcom lineup is arguably the strongest on TV. Certainly it is the most stable; “Modern Family” and “The Middle” next fall will embark upon their eighth seasons, while the homegrown “Black-ish” is getting closer to beginning syndication with its season three pick-up [7].

Set to premiere next for ABC is “Uncle Buck,” based on the hit movie of the same name. The series will star Uncle Buck (Mike Epps) as a fun-loving but irresponsible guy who needs a job and a place to stay. His brother and sister-in-law need some help around the house, wondering if they could be the answer to each other’s problems [8]. The show is set to premiere this Summer on June 14, following a preview of the revived game show “To Tell the Truth,” Hosted by “Black-ish” star Anthony Anderson.

To get a sneak peek at the new comedy series “Uncle Buck,” starring Mike Epps and Nia Long, click the link to view the official trailer: http://abc.go.com/shows/uncle-buck/video/most-recent/VDKA0_1thuvv8f

Along with “To Tell The Truth,” “100,000 Pyramid,” another game show that is being rebooted from the original, will make its debut on Sunday, June 26 at 9 p.m. following the second season premiere of “Celebrity Family Feud.” Both “Pyramid,” which was originally aired in 1973 and hosted by Dick Clark, and “To Tell the Truth,” which aired in 1956 and was hosted by Budy Collyer [9], will bring a new and older skewing audience to ABC during primetime on Sunday nights.

In The News

On February 28, 2016, ABC aired the 88th Academy Awards hosted by comedian Chris Rock, which brought its lowest ratings in eight years. The network has been airing the Oscars since the emergence of television, outside of the periods in the 1950s and 1970s when the award show was aired on NBC [10]. The low viewership was seen as surprising seeing that this year’s Oscars were one of the most talked about awards in recent years, due to backlash and protests over the Academy’s lack of diverse nominees [11]. Also making news was Leonardio Decaprio’s first Academy Award win. Chris Rock held the controversial hosting gig, addressing #OscarsSoWhite with a mixture of jokes and serious statements [12]. Despite all of the talk around and leading up to the event, viewers decided not to tune in, as the numbers clearly speak for themselves.

On Monday, April 18, Ben Sherwood unveiled a plan for ABC to expand the availability of its programming via authenticated streaming platforms by offering to establish such deals on behalf of its 200-plus affiliate stations around the country. The initiative dubbed “Clearinghouse” is described as a “turnkey” solution for ABC’s affiliate stations. Sherwood said that the 14 ABC affiliates in the Hearst TV station group have agreed to lead the pilot program for a technological and administrative template that ABC has hammered out with DirecTV for its Watch ABC app [13].

The new “Pyramid” game show will be hosted by Michael Strahan, who on Tuesday, April 19, announced that he would be leaving his daytime gig at “Live! With Kelly and Michael” for a full-time role on ABC’s flagship morning show “Good Morning America” [14]. With GMA’s ratings leadership in extreme danger of being overshadowed by NBC’s “Today Show,” executives at ABC have come up with something that looks great on paper – adding more of Michael Strahan, the former football player who has transformed himself into one of the most winning personalities on today’s TV screen [15]. ABC’s Summer Schedule is sure to be a busy one, packed with a new spinoff series and various rebooted game shows featuring various of celebrities.

On Wednesday, April 20, Disney Channel unveiled plans for the 100th DCOM Celebration, a summer programming marathon centered on the airing of the network’s 100th original move since 1997. Things kick off May 27 with a four-day marathon of the 51 most popular original movies followed by encore presentations of these and every other movie in the franchise through June [16]. Releasing 100 movies in 19 years is no small feat, and is surely something to celebrate!

Sources

[1] Fabrikant, Geraldine. “Walt Disney To Acquire ABC In $19 Billion Deal To A Giant For Entertainment.” The New York Times. The New York Times, 31 July 1995. Web. 22 Apr. 2016. http://www.nytimes.com/1995/08/01/business/media-business-merger-walt-disney-acquire-abc-19-billion-deal-build-giant-for.html?pagewanted=all
[2] “Overview.” Our Business Areas. Disney, n.d. Web. 22 Apr. 2016. http://datg.disneycareers.com/en/our-business-areas/overview/
[3] Birnbaum, Debra. “Channing Dungey Named ABC Entertainment President, Replacing Paul Lee.” Variety. Variety Media, LLC., 17 Feb. 2016. Web. 22 Apr. 2016. http://variety.com/2016/tv/news/channing-dungey-abc-entertainment-president-1201708379/
[4] The Walt Disney Company. THE WALT DISNEY COMPANY REPORTS RECORD QUARTERLY EARNINGS FOR THE FIRST QUARTER OF FISCAL 2016. N.p., 9 Feb. 2016. Web. 22 Apr. 2016. https://ditm-twdc-us.storage.googleapis.com/q1-fy16-earnings.pdf
[5] Jarvey, Natalie. “Disney’s ABC Sells Fusion Stake to Univision.” The Hollywood Reporter. The Hollywood Reporter, 21 Apr. 2016. Web. 22 Apr. 2016. http://www.hollywoodreporter.com/news/disneys-abc-sells-fusion-stake-886643
[6] Palmeri, Chritopher. “Disney Pulls Out of Fusion Joint Venture With Univision.” Bloomberg.com. Bloomberg, 21 Apr. 2016. Web. 25 Apr. 2016. http://www.bloomberg.com/news/articles/2016-04-21/disney-pulls-out-of-fusion-joint-venture-with-univision?cmpid=yhoo.headline
[7] Crupi, Anthony. “Laugh It Up: Already Flush With Comedies, ABC Looks for More Homegrown Sitcoms for 2016-17.” AdAge. AdvertisingAge, 21 Mar. 2016. Web. 22 Apr. 2016. http://adage.com/article/media/flush-comedies-abc-seeks-homegrown-sitcoms/303203/
[8] “Watch Uncle Buck TV Show – ABC.com.” ABC. Disney, n.d. Web. 22 Apr. 2016. http://abc.go.com/shows/uncle-buck
[9] McLennan, Cindy. “To Tell the Truth, $100,000 Pyramid: ABC Game Show Reboots Coming in June – Canceled TV Shows – TV Series Finale.”Canceled TV Shows TV Series Finale. TV Series Finale, 20 Apr. 2016. Web. 22 Apr. 2016. http://tvseriesfinale.com/tv-show/tell-truth-100000-pyramid-abc-game-show-reboots-coming-june/
[10] Guerrasio, Jason. “The Oscars Had the Lowest Ratings in Years, and ABC Is Trying to Get Control to Revamp Them.” Business Insider. Business Insider, Inc, 01 Mar. 2016. Web. 22 Apr. 2016. http://www.businessinsider.com/oscars-abc-contract-2016-3
[11] The Show Averaged 34.3 Million Viewers on Sunday Night. “Oscars Brings in Third-lowest Viewership in History.” CNNMoney. Cable News Network, 29 Feb. 2016. Web. 25 Apr. 2016. http://money.cnn.com/2016/02/29/media/oscars-ratings-academy-awards/
[12] Griggs, Brandon. “Chris Rock: ‘You’re Damn Right Hollywood Is Racist'” CNN. Cable News Network, 29 Feb. 2016. Web. 22 Apr. 2016. http://www.cnn.com/2016/02/28/entertainment/chris-rock-oscars-so-white-feat/
[13] Littleton, Cynthia, and David S. Cohen. “ABC Tries to Expand Affiliate Streaming Access with Clearinghouse Initiative.” Variety. Variety Media, LLC., 18 Apr. 2016. Web. 22 Apr. 2016. http://variety.com/2016/tv/news/abc-affiliate-streaming-clearinghouse-watch-abc-1201755595/
[14] Holloway, Daniel. “‘Uncle Buck,’ ‘To Tell the Truth’ Premiere Dates Set as ABC Unveils Summer Schedule.” Variety. Variety Media, LLC., 19 Apr. 2016. Web. 22 Apr. 2016. http://variety.com/2016/tv/news/uncle-buck-to-tell-the-truth-premiere-dates-abc-summer-1201757030/
[15] Steinberg, Brian. “ABC’s Morning Madness: Will Michael Strahan Blitz Score Touchdowns for ‘GMA,’ ‘Live’?” Variety. Variety Media, LLC., 20 Apr. 2016. Web. 22 Apr. 2016. http://variety.com/2016/tv/news/michael-strahan-good-morning-america-abc-kelly-ripa-1201757700/
[16] Hipes, Patrick. “Disney Channel Original Movie ‘The Swap’ Set As Network Plans 100-Pic Celebration.” Deadline. Penske Business Media, LLC., 20 Apr. 2016. Web. 22 Apr. 2016. http://deadline.com/2016/04/disney-channel-original-movie-the-swap-dcom-marathon-1201741163/

Hulu #1

Hannah Mesches
Hulu logo (1)

Hulu logo (1) source: Hulu

Company

Hulu is a premium streaming service that offers subscribers hours of content- both television programming and movies- with limited commercials for $7.99 a month or no commercials for $11.99 a month. Launched in 2008, Hulu has remained a leader in redefining how TV and how it is consumed by loyal viewers. The company boasts nearly 9 million subscribers, over 500 content partners, and 2,000 advertising partners. (2) Hulu recently reached a milestone of 700 million hours of content streamed by subscribers.

CEO Mike Hopkins

CEO Mike Hopkins (3) source: Hulu

Senior Vice President, Head of Content Craig Erwich (3)

Senior Vice President, Head of Content Craig Erwich (3) source: Hulu

Senior Vice President, Head of Distribution Tim Connolly

Senior Vice President, Head of Distribution Tim Connolly (3) source: Hulu

Financials

Hulu is not a publicly traded company, thus the company’s financial profile is not available in the same detail as that of a company with quarterly SEC filings. Despite this, on October 6th 2015, Hulu published the news that it and Viacom expanded their content partnership in a new multi-year agreement. (4) With this deal, Hulu became the exclusive subscription video on demand (SVOD) home to full seasons of popular series from Nickelodeon, Comedy Central and MTV such as Inside Amy Schumer, Broad City and Finding Carter. These programs are highly popular with adults 18-34 and will attract cord cutters with the accessibility the company provides through online streaming. (5) 

The deal also expands Hulu’s catalog of children’s programming. Full older seasons of Nickelodeon shows that have never been available for online streaming on the site are now exclusive to the service. In addition to this, all episodes of 90’s and 00’s era programs like The Wild Thornberrys, Drake and Josh, Hey Arnold and Ren & Stimpy will be available for the first time ever on Hulu. The renewal and expansion of this deal will allow the company to acquire programs that audiences who are ditching cable will be looking to watch elsewhere due to their popularity.

Newly Released Content

To compete with Netflix, Hulu released two original series, Casual and RocketJump: The Show in Q4 of 2015 (6), and brought back cancelled program The Mindy Project. On October 21st, 2015, Casual, which stars Michaela Watkins, Tommy Dewey and Tara Lynne Barr, was renewed for a second season due to the success of Producer Jason Reitman’s dysfunctional family comedy. (7) The release date of RocketJump, a documentary series about Youtube filmmaker Freddie Wong and the creation of his action-comedy short films, was delayed until December 2nd, 2015. (8) The original series will still likely draw a substantial audience as name recognition will play a large role.

The Mindy Project (9) source: Geekynews

Hulu also revived cult favorite The Mindy Project starring Mindy Kaling, Chris Messina and Ike Barinholtz exclusively for its streaming service when it was cancelled by Fox. The company signed on for 26 episodes of the program for its fourth season. With more creative freedom given by Hulu, the show has involved more mature themes and plots, and thus has attracted a wider audience. (10) A.V. Club reviewed the Hulu season premiere entitled “While I Was Sleeping” as an A on its scale, calling the episode “an amazing season opener, her best-ever.” (11)

Earlier this year, Hulu premiered the show Difficult People on August 5th, 2015. The series was created by Julie Klausner who stars alongside Billy Eichner. Eichner’s performance immediately garnered positive attention from critics and the show was given an 85% on Rotten Tomatoes and a 76 on Metacritic. (12) After landing a role on Parks and Recreation due to the success of his popular Youtube series Billy on the Street, the actor’s high energy style became in demand as he was cast on several hit programs, but found the most success with Hulu.

Future Content

On February 15th, 2016, Hulu will release its highly anticipated series 11/22/63 based on the 2011 best selling novel written by Stephen King and published by Scribner. (13) The thriller, starring James Franco tells the story of a high school english teacher who travels back in time to prevent the assassination of President. John F. Kennedy. The mission is threatened by Lee Harvey Oswald, a love interest, and the past’s unwillingness to change itself. (14)

11/22/63

11/22/63 (15) source: Entertainment Weekly

Offline, Hulu will be bringing a popular fan experience to Los Angeles this winter. After its success in New York City, Hulu is resurrecting the Seinfeld: The Apartment exhibit for the show’s L.A. fans. (16) The pop up installation features a replica of Jerry Seinfeld’s Upper West Side apartment, and full gallery experience, as well as new items from the series. The exhibit will be located on 8445 Melrose Ave. and will be open from December 16th- 20th. The popularity of both the installation and the series as a whole is imperative for Hulu’s success in streaming Seinfeld in its entirety on the site. A whole new audience is reached as a result, and old fans are able to relive the series in a new way. (17)

Showtime

In addition to the new commercial free subscription that Hulu offers, customers are now able to pay an additional fee to get Showtime as a premium add on for $8.99 a month. Now viewers are able to watch award winning programs such as Homeland, The Affair, Ray Donovan, Masters of Sex and Episodes through the streaming service. (18)

Showtime on Hulu

Showtime on Hulu (19) source: Hulu

 Although this service comes at an extra cost, it will attract millennial viewers as they stray away from more expensive cable packages and move to exclusively online sites such as Hulu and its competitors Netflix and Amazon. (20) Subscribers will be able to take Showtime programs on the go as it is available on Apple devices, Android phones and tablets, Playstation, Wii, and Xbox One.

Overview

Overall, Hulu has had a productive year. From introducing a new subscription free of commercials, to receiving rave reviews for its original series, to expanding its agreement with Viacom and partnering with Showtime, the company is quickly amassing both content and loyal subscribers. Unlike Netflix, the site is able to make content available the day after it airs on live television, which attracts cord cutting fans as the service is less expensive and available on more interfaces. With a highly anticipated release coming in the first quarter of the 2016 fiscal year, Hulu is releasing content at a steady stream that keeps customers invested.

Sources

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(8) “‘RocketJump: The Show’ Premiere on Hulu Pushed Back to December.”Variety. N.p., 09 Oct. 2015. Web. 29 Nov. 2015.

(9) “First Look: Lee Pace in The Mindy Project.” GeekyNews. N.p., 06 Jan. 2015. Web. 29 Nov. 2015.

(10) “The Mindy Project Isn’t Cancelled After All, Here’s What’s Happening.”CINEMABLEND. N.p., 15 May 2015. Web. 29 Nov. 2015.

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(12) “‘Difficult People’ on Hulu: Will Critics’ Raves Lead to Awards for Julie Klausner, Billy Eichner?” GoldDerby. N.p., n.d. Web. 29 Nov. 2015.

(13) “11.22.63.” Hulu Press. N.p., n.d. Web. 29 Nov. 2015.

(14) “11.22.63.” IMDb. IMDb.com, n.d. Web. 29 Nov. 2015.

(15) “First Look: See James Franco in Stephen King’s Time-travel JFK Assassination Thriller 11/22/63.” Entertainment Weekly. N.p., n.d. Web. 29 Nov. 2015.

(16) “Inside the ‘Seinfeld’ Apartment Pop-Up in New York.” The Hollywood Reporter. N.p., n.d. Web. 29 Nov. 2015.

(17) “Hulu to Bring SEINFELD: THE APARTMENT Fan Experience to LA This December.” Broadway World. N.p., n.d. Web. 29 Nov. 2015.

(18) “Hulu with Showtime.” Hulu. N.p., n.d. Web. 29 Nov. 2015.

(19) “What Is SHOWTIME® on Hulu?” Hulu. N.p., n.d. Web. 29 Nov. 2015.