AMC Networks Inc.

Posted on March 25, 2015 by Hsin-Tzu Lin

by Hsin-Tzu (Teresa) Lin

ABOUT AMC NETWORKS INC. :

[1] AMC Networks Inc. Logo

Founded in 1980 (formally known as Rainbow Media Holdings LLC), AMC Networks Inc. [2] is an American Entertainment company currently standing as the one of the leading cable television broadcasters in the United States. AMC Networks owns and operates various popular channels within the cable television realm: AMC, The Independent Film Channel (IFC), Sundance TV, Women’s Entertainment TV (WE tv), and IFC Films [3]. The company also acquired Chellomedia in 2013 and through a joint venture with BBC Worldwide, now operates BBC America as well [3]. With an impressive programming portfolio, the cable network has aired many critical and popular series such as “Breaking Bad”, “Walking Dead”, and “Mad Men”, reaching more than 95 million households across the country [4].

HEADQUARTERS ADDRESS:

11 Penn Plaza,

New York, NY 10001,

United States

EXECUTIVES:

: Charles F. Dolan – Executive Chairman

: Joshua W. Sapan – President and Chief Executive Officer

: Edward A. Carroll – Chief Operating Officer

[5]

FINANCIALS AND STRATEGIES:

AMC Networks Inc. is a publicly traded company with a stock price of $77.27 as of April 16^th 2015 [3]. In its fourth quarter reports of 2014, AMC Networks exceeded expert estimates with the reported $1.15 earnings per share, vastly beating the prediction of $0.99 [6]. Its fourth quarter also showed promising numbers as the company’s revenue increased 40%[7] to $609.44 million [8], and also revealed a 24.3% jump in advertising revenues [7] to $255 million [9]. The company continues to expect the advertising sector to be the “growth driver” of the year. AMC Networks’ First Quarter 2015 report will be released May 4^th [10].

[17] Chellomedia’s Logo

It has been a fruitful and successful season for AMC Networks. With its strategic acquisition of Chellomedia[17] and partnership with BBC Worldwide, AMC Networks has greatly boosted its international revenue by 516% to $110.3 million [11], helping the company exceed estimated Q4 earnings. The company also seeks further development through striking a deal with Dish Network Corporation: to include AMC’s “Walking Dead” and “Mad Men” in Sling TV, its newly launched online video streaming service [12].

SPRING 2015 – THE SEASON OF NEW SERIES SPINOFFS:

AMC has carried numerous programs throughout its 30 years of existence. Amongst its most popular and successful are “Breaking Bad”, “Walking Dead”, and “Mad Men”. The former two of these series have sprung a spinoff off their original plot-lines, in hopes to further continue the series’ monumental success and keep their fan-base after losing “Breaking Bad” after the series has aired [26].

♦Breaking Bad and its spinoff “Better Call Saul”♦

Game changer underdog series “Breaking Bad” has finished its run, ending with 10.3 million viewers and a 5.2 rating within the adults the 18-49 demographic[13]. From its previous season (premiered in 2013), Walter White and Jesse Pinkman have brought in an astonishing 442% increase in viewership within just two years[13]. With this kind of result, AMC released a trial prequel spinoff series “Better Call Saul” earlier this year to extend the popular series further. “Saul” wrapped its first season with amazing results, raking in $2.53 million viewers overall, and very positive reviews (Click here to read why people think “Saul” might just be better than “Breaking Bad”). AMC Networks turned their best assets into best revenue generators, working to increase consumption of their most popular series even after it is gone.

♦“The Walking Dead” and its spinoff “Fear the Walking Dead”♦

One of AMC’s most popular cable television shows, “The Walking Dead”, delivered stellar numbers on its season finale. The Season 5 finale episode drew in an averaged rating of 8.2 within the adults 18-49 demographic[16] (and gathering 15.8 million viewers overall)[14]. This has been the highest rated season of “The Walking Dead” in this television season. Seeing the previous spinoff “Better Call Saul’s” success, “The Walking Dead” creator, Robert Kirkman, green-lighted another series spinoff “Fear the Walking Dead” to air in Summer 2015. The six-episode prequel mini-series[15] has already created significant anticipation within the “The Walking Dead” fan base, keeping the audience in the loop as they wait for Season 6 of “The Walking Dead” premiering in October[15].

: “Breaking Bad” spinoff – “Better Call Saul”

: “The Walking Dead” Prequel – “Fear the Walking Dead”

[18] [19]

This tactic of releasing spinoffs in order to maintain and possibly increase their audience base is currently working extremely well for AMC Networks Inc. “Better Call Saul” ended its first season strongly, and “Fear the Walking Dead” has generated great potential for its release in the summer. The success of “The Walking Dead” and “Breaking Bad” has been extremely beneficial to the company and creating a prequel/spinoff to the original series was a wise direction to lead to.

OTHER PROGRAM NEWS

AMC Networks also houses the growingly popular series “Orphan Black”, and the critically acclaimed, award winning “Mad Men”.

[21] Orphan Black Season 2 Cast

Just recently, Season 3 of “Orphan Black” ran across all 5 network channels of AMC Networks (AMC, SundanceTV, IFC, We TV, and BBC America) as a way to boost the series’ audience reach. AMC Networks COO Edward A. Carroll quotes…

“AMC Networks is a channel group known for high-quality storytelling and creating a premiere television event for ‘Orphan Black’ is a perfect opportunity to use our programming assets to help extend the reach of this quality series.”

[20]

[22] Mad Men in AMC Networks is not doing as well as it should

Although considered as one of the best dramas in cable, “Mad Men” does not pull as much of an audience as it should [23]. Unfortunately, “Mad Men” was ranked #21 amongst other cable dramas last year [23]. Despite this, AMC Networks announced that the ad spaces on “Mad Men’s” season finale on May 17^th have been completely sold out [24], still indicating the affluence and importance of the show.

WHAT IS NEXT?

As AMC Networks Inc. develops, CEO Josh Sapan quotes that international expansion “continues to be a focus” and allowing AMC Networks to “capitalize long term on international pay TV growth and drive long-term value for our shareholders.” [11] With the acquisition of Chellomedia and BBC America, AMC is now transitioning towards a more global distribution to show it’s content. AMC now is available in 120 countries as well as the Sundance Channel in 70 countries [25].

AMC Networks Inc. has a bright future ahead of its path. Not only is the company busy with its national expansion with series spinoffs, but it is also seeking to expand globally to distribute its contents to the world. Global distribution would only propel AMC Networks’ development forwards and bring the company to the next level of the cable television realm.

SOURCES –

[1] AMC Network Inc. Logo. Logosandbrands.com, Retrieved April 14th 2015.

[2] AMC Network Inc. Website. Amcnetwork.com, Retrieved April 14th 2015.

[3] AMC Network Company Profile. Yahoo Finance, Retrieved April 14th 2015.

[4] AMC Network Company Information. Hoovers, Retrieved April 14th 2015.

[5] AMC Network Executives. Amcnetwork.com, Retrieved April 14th 2015.

[6] “AMC Networks Now Covered by Piper Jaffray (AMCX). Dakota Financial News, Retrieved April 14th 2015.

[7] “AMC Networks’ Walking Dead Finale Sees Record Closing”. Zacks.com, Retrieved April 14th 2015.

[8] “AMC Networks Receives “Hold” Rating from Evercore Partners Inc. (AMCX)”. Mideasttime.com, Retrieved April 14th 2015.

[9] “AMC Networks Ad Revenue Jumps on Demand for Original Programming”. Wall Street Journal, Retrieved April 14th 2015.

[10] “AMC Networks to Report First Quarter 2015 Results”. Yahoo Finance, Retrieved April 14th 2015.

[11] “AMC Networks International Operations Help It To Beat Q4 Earnings Expectations”. Deadline.com, Retrieved April 14th 2015.

[12] “Dish Network Rolls Out Sling TV, Reaches Deal With AMC”. Wall Street Journal, Retrieved April 14th 2015.

[13] “‘Breaking Bad’ series finale ratings smash all records”. Entertainment Weekly, Retrieved April 16th 2015.

[14] “‘The Walking Dead’ Season 5 Finale is Highest Rated Finale in Series History, Garnering 15.8 Million Viewers”. TVByTheNumbers.com, Retrieved April 16th 2015.

[15] “Here’s the First Teaser for The Walking Dead Spin-Off”. Vanity Fair, Retrieved April 16th 2015.

[16] “AMC’s ‘Walking Dead’ Draws Record Finale Ratings”. Variety.com, Retrieved April 16th 2015.

[17] Chellomedia’s Logo. Chellomediapaytv.com, Retrieved April 16th 2015.

[18] Better Call Saul Photo. Amcnetworks.com, Retrieved April 17th 2015.

[19] Fear the Walking Dead Photo. fansided.com, Retrieved April 17th 2015.

[20] “‘Orphan Black’ Season Premiere to Air Across All AMC Networks Channels”. Variety.com, Retrieved April 17th 2015.

[21] Orphan Black Season 2 Cast photo. TVLine.com, Retrieved April 17th 2015.

[22] Mad Men Cast Photo. pop-break.com, Retrieved April 17th 2015.

[23] “‘Mad Men’ brings prestige, if not powerful ratings, to AMC”. CNN Money, Retrieved April 17th 2015.

[24] “AMC sells out advertising space for the ‘Mad Men’ series finale”. CNN Money, Retrieved April 17th 2015.

[25] “Investors Better Call AMC Networks, Company Is Far From Walking Dead”. Seeking Alpha, Retrieved April 17th 2015.

[26] “‘Better Call Saul’: More AMC spin-offs to join ‘Breaking Bad’ prequel” Entertainment Weekly, Retrieved April 17th 2015.

NETFLIX

Posted on March 25, 2015 by Bess Howell

by BESS HOWELL

Netflix Logo – Courtesy of pr.netflix.com

Corporate Headquarters [3]

100 Winchester Circle Los Gatos, CA 95032

+1 (408) 540-3700

http://netflix.com/

Leadership [1]

– Reed Hastings: Founder and CEO

David Wells: Chief Financial Officer

Kelly Bennett: Chief Marketing Officer

Jonathan Friedland: Chief Communications Officer

Tawni Cranz: Chief Talent Officer

Ted Sarandos: Chief Content Officer

History [2]

Courtesy of 3dprint.com

In 1997, Reed Hastings and partner Marc Randolph founded Netflix. Initially, the company was founded to offer online movie rentals. Consumers were able to pick from a selection of titles and have them delivered to their homes. Two years later, Netflix became a subscription-based service, providing customers with unlimited movie rentals for a monthly rate. In 2002, Netflix became a publicly traded company on NASDQ. In 2007, Netflix introduced its extremely popular movie and television streaming service. International expansion began in 2012, Netflix becoming available in Latin America and the Caribbean. Netflix introduced original content in 2013, including the award-winning shows “House of Cards” and “Orange is the New Black.” Now with over 60 million global subscribers, Netflix is a notable name and pioneer in the television industry.

Financials [7]

Courtesy of Google Finance

Netflix’s 2015 first quarter earning results were extremely mixed, but in the end left investors happy and the company optimistic about the future [6]. Netflix reached the analyst forecasted revenue of 1.57 billion dollars, but per share earnings dropped to 38 cents. Although Netflix surpassed the previous year’s revenue, EPS dropped over 50 cents from 2014. This can be partially attributed to the Q1 net income, at 23.7 million, which decreased 55.4% from one year ago [9]. This loss is a result of the strong U.S. dollar, which greatly lowered international revenue. Without loses due to the foreign exchange rate, the per-share earnings would have been recorded at 77 cents [8]. Netflix stock increased over 18%, reaching an all time high of $530 dollars. Analysts believe this is due to the massive subscriber growth, which increased by 4.9 million in the first quarter of 2015 for a total of 62.3 million [5], 500,000 more than the company had expected. Stocks may not stay at the high price they reached, as CEO Reed Hastings proposed a stock split in the near future. If the stock split does not happen however, FBR & Co analyst Barton Crockett predicts that Netflix shares could reach $900 within the next year [4]. With a loyal consumer base, growing subscribers, and plans for global expansion, there is not much in the company’s way for it’s numbers to only go up.

Global Expansion

Netflix overseas expansion is the leading driver of subscriber growth. Courtesy of broadbandtrends.com

Global expansion has become a huge part of the Netflix business model. As subscriber growth slows in the United States, the company looks to other markets in order to both raise revenue and increase opportunities [12]. Currently operating in over 50 countries, Netflix announced in January that they planned to launch the service in 200 countries by 2016 [13], with the hopes of going global by 2020 [11]. Although the company currently loses money in it’s international business, they predict it to be profitable by 2017. Despite these loses, Netflix is extremely well received in its abroad markets. It was released in early April that less than a year after being launched in Europe, Netflix buttons are being added to remote controls that will be shipped all over the continent [16]. Already in 2015, Netflix has become available in Cuba [15], Australia, and New Zealand [10], and is set to launch in Japan this coming fall [14]. The company is also looking into the possibility of launching in China. Global expansion means the opportunity of having content viewed over the entire world, which will open Netflix up to many opportunities for both licensing and producing even more material[12].

Netflix Originals and Exclusives

In a consumer survey released yesterday that was conducted by FBR & Co, Netflix users said that they prefer the Internet streaming service to television [22]. Much of this has to do with the original content Netflix has been producing in the last few years. On February 27^th the company released the third season of its award winning original, “House of Cards,” which received global attention. It was released on April 2^nd that the show’s fourth season would air sometime in 2016 [23]. March 6^th marked the premier of “Unbreakable Kimmy Schmidt,” and on March 20^th their new dramatic thriller “Bloodline” was released. On April 10^th Netflix aired Marvel’s “Daredevil,” the first of a five series-deal [18]. The company also released the teaser for the fourth season of “Orange Is The New Black” two days ago [17]. For the rest of 2015, Netflix plans on releasing five more original series [18], as well as five additional original programs geared towards children [26].

At the Sundance Film Festival in January, Netflix made a deal with the notable Duplass brothers [24]. Netflix will finance four films produced by the team, which will go to directly to the service after a short theatrical window. This partnership paid off at SXSW this March when Netflix obtained the exclusive global rights to the film “6 Years,” Which was produced by the Duplass brothers [25] This film was not part of the deal signed in January, and thus was an extra acquisition for the company.

King Penguins, at sunrise on the coast of South Georgia Island. Southern Ocean,

“Our Planet” will be shot in 4K over the course of four years. Courtesy of hollywoodreporter.com

Netflix recently introduced its intentions for multiple new documentary projects. Teaming up with Silverback Films, the company that created “Planet Earth,” Netflix plans to produce an eight-part natural history series entitled “Our Planet.” [20] This four-year project is set to air in 2019. On March 4^th, the company also announced a planned partnership with Leonardo DiCaprio and production company Appian Way to create a series of Netflix exclusive documentary projects [21]. DiCaprio will produce all of the projects, which will concern the environment and conservation.

Promotions

Already in the first quarter of 2015, Netflix has partnered with various tech companies to help promote the brand and increase subscribers. On March 25^th T-Mobile announced that if customers buy a Samsung Galaxy S6 phone, they will get a free one-year subscription to Netflix [27]. The logic behind this partnership is to both drive the sales of S6 phones at T-Mobile, and create more potential long-term subscribers for Netflix. Separate from T-Mobile, Samsung enticed consumers in Australia earlier this month to buy from a series of new 4K smart TVs by offering six free months of Netflix [28]. This partnership came just weeks after the streaming service launched in Australia.

Samsung partners with Netflix – Courtesy of samsungpromotions.com

Netflix also came out with it’s first set of “Netflix Recommended TVs,” part of a program that the company launched in early 2015 to help integrate itself better with smart TVs. The recommendation is meant to promote the TV’s easy Internet access capabilities and help Netflix become more easily accessed through the television rather than the computer. The TVs will come from companies like Sony, LG, TCL, and Insignia, and will include the Netflix logo when in retail [29].

Netflix wants to push more consumers towards viewing their content, making it available through internet capable TVs more accessible. Courtesy of devices.netflix.com/recommendedtv

Overview

Netflix is truly an innovator in the television industry. CEO Reed Hastings said in a recent interview that “Internet TV is going to replace linear TV” within 20 years [30]. At the current rate Netflix is going, that could likely be possible. Netflix has excellent financials, global prospects, a loyal and growing subscriber base, notable content, and forward thinking business strategies. There is no reason why they should not be able to reach their goals in coming years.

Sources

[1] Officers and Directors, Netflix International Relations, Retrieved: April 15, 2015

[2] Company Timeline, Netflix Media Center, Retrieved: April 15, 2015

[3] Netflix Corporate Headquarters, Corporate Offices and Headquarters, Retrieved April 15, 2015

[4] Netflix stocks top $500 for the first time ever. Next stop = $900?, CNN Money, Retrieved April 16, 2015

[5] Netflix shares explode after unexpected subscriber growth, Business Insider, Retrieved April 16, 2017

[6] Netflix adds nearly 5 million subscribers in first quarter, USA Today, Retrieved April 15, 2015

[7] Letter to Shareholders, Netflix International Relations, Retrieved April 16, 2015

[8] Why Investors Are So In Love With Netflix Right Now, Time, Retrieved April 16, 2015

[9] Netflix Shares Soar On Q1 Report Showing Strong Sub Growth And Stock Split Plans, Deadline, Retrieved April 16, 2015

[10] Netflix Goes Live In Australia And New Zealand, Its First Launches In Asia Pacific, Tech Crunch, Retrieved April 16, 2015

[11] Analysts giddy at Netflix plans for international expansion, Market Watch, Retrieved April 16, 2015

[12] Netflix Accelerates Ambitious Global Expansion as U.S. Growth Slows, The New York Times, Retrieved April 15, 2015

[13] Netflix Steps Up Foreign Expansion, Wall Street Journal, Retrieved April 16, 2015

[14] Netflix To Launch In Japan This Fall, Netflix Media Center, Retrieved April 15, 2015

[15] Netflix Is Available In Cuba, Netflix Media Center, Retrieved April 15, 2015

[16] Major Consumer Electronics Manufacturers Add Netflix Button To Remote Controls Across Europe, Netflix Media Center, Retrieved April 15, 2015

[17] Netflix Renews Orange Is the New Black for Season 4, Releases New Clip, Time, Retrieved April 16, 2017

[18] 7 New Netflix Original Premiering This Year, Cheat Sheet, Retrieved April 15, 2015

[19] In 2015, Must-See TV Will Often Be Netflix Exclusives, Daily Finance, Retrieved April 15, 2017

[20] ‘Our Planet’ Set At Netflix; 8-Part Follow-up To ‘Planet Earth’ Series, Deadline, Retrieved April 16, 2015

[21] NETFLIX AND LEONARDO DICAPRIO TO PARTNER ON UPCOMING DOCUMENTARY PROJECTS, Netflix Media Center, Retrieved April 15, 2015

[22] Is Netflix More Popular Than TV?, CBS Money Watch, Retrieved April 16, 2015

[23] ‘House Of Cards’ Season 4 Will Air In 2016, Huffington Post, Retrieved April 15, 2015

[24] Netflix Makes 4-Pic Pact With Duplass Brothers – Sundance, Deadline, Retrieved April 15, 2015

[25] Netflix Nabs Global Rights For Drama ‘6 Years’ At SXSW 2015, Deadline, Retrieved April 15, 2015

[26] NETFLIX EXPANDS ITS PORTFOLIO OF ORIGINAL AND EXCLUSIVE TV SERIES WITH FIVE NEW SHOWS FOR KIDS OF ALL AGES, Netflix Media Center, Retrieved April 15, 2015

[27] T-Mobile Offers One Free Year Of Netflix For Buying A Samsung Galaxy S6, Forbes, Retrieved April 15, 2015

[28] Samsung releases new 4K smart TVs in Australia, offers six months free Netflix, Sunday Morning Herald: Digital Life, Retrieved April 16, 2015

[29] Netflix Announces First ‘Recommended TV’ Partners, Variety, Retrieved April 15, 2015

[17] Netflix Doesn’t Want to Kill HBO. It Wants to Kill TV, re/code, Retrieved April 16, 2017

Netflix

Posted on October 5, 2014 by mmueller

by Micaela Mueller

Company Logo – www.netflix.com

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

Executives [1]

Reed Hastings, Founder and CEO

David Wells, CFO

Twani Cranz, Chief Talent Officer

Kelly Bennett, Chief Marketing Officer

About [2]

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

History

Courtesy of postalnews.com

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

Financials

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

Courtesy of finance.yahoo.com

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

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

Recent News

International Expansion

Courtesy of gigaom.com

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

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

Netflix and Nielsen

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

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

Recent Original Content

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

Courtesy of netflix.com

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

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

Looking Ahead

Film

Courtesy of imdb.com

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

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

Television

Courtesy of netflix.com

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

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

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

Courtesy of joblo.com

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

Sources

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

DirectTV

Posted on October 5, 2014 by Nicholas Sabatino

by Nick Sabatino

Photo courtesy of www.interpretllc.com [1]

Contact Information

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

Executives

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

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

About

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

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

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

Financials

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

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

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

AT&T Merger

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

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

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

International Expansion

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

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

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

Raycom Media

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

Original Programming and What to Expect in the Future

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

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

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

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

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

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

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

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

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