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Disney

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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 Dory, Captain 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, Marvel, and 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

CBS Radio

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by Sarah Shelton

1515 Broadway
New York, NY 10036
(212) 846-3939
www.cbsradio.com

About CBS Radio

CBS Radio, a division of the television and radio company CBS Corporation, is the third largest radio station owner and operator in America with 127 broadcast stations in 28 major markets across the country under its control, and over 70 million listeners tuning in weekly.[1] Its flagship broadcast formats are sports, news and talk, and CBS Radio continues to be the largest broadcaster of play-by-play coverage and discussion of the major sports franchises in America, including the MLB, NFL, NBA, and NHL.[2] CBS Radio also offers local digital media in over two dozen markets in the US, with local traffic, news, weather as well as other recorded content for on demand access on the Internet and custom mobile apps.[3] CBS Radio’s particular attention to on-air personalities has made it a continual standout in the increasing switch to automated and syndicated radio programming for broadcast radio today.[4]


Key People

Dan Mason

Dan Mason was named president and CEO of CBS Radio in 2012 and oversees all stations as well as the day-to-day operations of the subsidiary. He reports directly to CBS Corporation CEO, Leslie Moonves. Mason has been with CBS Radio for almost two decades, previously serving as an advisor and consultant before stepping up for the role of CEO. He has an extensive background in radio programming and his success with the strategic growth of CBS stations has been reflected in ratings from listeners of all ages.[5]

Kevin Weatherly

Kevin Weatherly is the Senior Vice President of Programming at CBS Radio, the Program Director of the top stations in the Los Angeles market, and also Kevin of Kevin and Bean, the flagship personalities of LA’s KROQ FM. He has been with CBS Radio for over two decades, helping develop audiences for fledgling bands through strategic programming and monumental development for the music industry and radio relationship. He has received accolades and awards from virtually every music publication, including Rolling Stone Magazine, Billboard, Entertainment Weekly and more.[6]

A Brief History

In 1927, talent agent Arthur Jodson created the radio network United Independent Broadcasters in order to showcase the artists that he was working with and as an act of defiance to his employer for refusing to include his roster in their broadcasts. He named the new venture United Independent Broadcasters, but was soon merged with the Columbia Phonograph Company after financial struggles threatened to bury the station before it had even begun. Under the new name Columbia Phonograph Broadcasting Company, the station was launched in September 1927 and quickly grew to earn affiliates and employees, enough to catch the eye of investor William Paley, who bought the station in January 1929 rebranded as Columbia Broadcasting System (CBS). The station continued to grow by embracing advertising, and became a frontrunner in national radio. The company also expanded with ventures in television and film, putting CBS on the map as one of the top media companies in the world. After being outbid for the rights to NFL Broadcast in 1993 and under new leadership, CBS was sold to Westinghouse Corporation for $5.4 billion and put under the control of Viacom. In 2005 with the economic downturn, the television and film divisions of CBS were spun off under Viacom to improve stock market performance and the radio sector along with Infinity Broadcasting, a division of Viacom, were merged and rebranded as the new CBS Radio.[7]

Timeline of Recent Events

On January 2, 2013, CBS Radio launched the largest major market 24 hour sports stations featuring high profile personalities, player and coach interviews, national game coverage and more. This is an effort to condense the 10 million listeners that tune in weekly to over 100 CBS affiliate stations for sports programming, and is meant to compete with rival ESPN Radio.[8]

On January 3, 2013, CBS streamed Bon Jovi’s Tampa concert on Radio.com, the first live event streaming venture for the company. This is meant to rival the live streaming features of iHeartRadio, currently the frontrunner in online radio streaming and app-based radio services, and will lead to many more given the success. A first attempt in December 2012 was postponed due to a major storm affecting the East Coast.[9] 

On February 7, 2013, Kevin Weatherly announced a renewal of his contract with CBS Radio, after more than 20 years of unparalleled contribution to the music industry and radio programming today. An on air personality himself on KROQ FM as well as a main contributor to radio’s second largest market in the nation, Los Angeles, Kevin is excited to continue to use his skills and expertise to benefit CBS Radio.[10]

The pioneering program CBS World News Roundup celebrated its 75th anniversary on March 13, 2013. It is the longest running newscast in history and provided a benchmark from which modern newscasts would be modeled. News programming was the capstone of CBS Radio programming in the 1950s and 1960s, when Americans turned to radio for entertainment and realtime war coverage. Legendary reporters such as Robert Trout and Edward R. Murrow got their start and made their mark on this program.[11]

Financials

On March 27, 2013 CBS reported fiscal year-end results: revenue is up 2% to $3.7 billion and says that revenues from non-advertising sources is growing even faster than those from advertising.[12]

Screen Shot 2013-04-07 at 7.30.21 PMAs a venture of CBS Corporation, the stock price of CBS Radio is dependent on the overall stock performance of all areas of the company in the market. As of April 5, 2013, CBS Corporation stocks are at 45.20 a share, with over 8 million shares on the market. The stock prices tend to fluctuate and rise around the most popular sports seasons, but typically stick around 45.00 a share.[13]

References
1. http://cbsradio.com
2. http://www.cbsradio.com/broadcast
3. http://www.cbsradio.com/local-digital
4. http://www.cbsradio.com/broadcast
5. http://www.cbsradio.com/executives?bio=dan-mason
6. http://www.cbsradio.com/programming?bio=kevin-weatherly
7. http://www.museum.tv/eotvsection.php?entrycode=columbiabroa
8. http://www.cbspressexpress.com/cbs-sports-radio/releases/view?id=34174
9. http://insideradio.com/article.asp?id=2623795#.UWHZt1vwJBo
10. http://www.cbspressexpress.com/cbs-radio/releases/view?id=34527
11. http://www.cbsnews.com/8301-201_162-57573836/reporting-on-history-cbs-world-news-roundup-marks-75-years/
12. http://insideradio.com/article.asp?id=2617560#.UWHZwFvwJBo
13. https://www.google.com/search?q=cbs+stock&aq=f&oq=cbs+stock&aqs=chrome.0.57j0l2j60j0j62.1484&sourceid=chrome&ie=UTF-8