Disney/ABC

Posted on September 30, 2015 by Leni Weisberg

Disney|ABC Logo -Source: thewaltdisneycompany.com

Headquarters (8)

500 South Buena Vista Street Burbank, CA 91521-4581

Executives (8)

Ben Sherwood; Co-Chair, Disney Media Networks President, Disney|ABC Television Group Photo from thewaltdisneycompany.com

Ben Sherwood; Co-Chair, Disney Media Networks President, Disney|ABC Television Group
Source: thewaltdisneycompany.com

Robert Iger- Chairman and CEO of Walt Disney source: thewaltdisneycompany.com

Walt Disney – Founder of Walt Disney Company source: thewaltdisneycompany.com

In 1923, Walt Disney and his brother, Roy founded the Walt Disney Company. The company is divided into corporate divisions: Parks and Resorts, Studio Entertainment, Disney Consumer Products, Disney Interactive, and Media Networks. Today, Disney is one of the largest companies in the world providing entertainment for children, adults, and families.

The Walt Disney Company Logo Source: thewaltdisneycompany.com

In 1996, Disney merged with Capital Cities/ABC and created the Disney|ABC Media Network division. It is comprised of 8 owned and operated stations, over 240 national affiliates, 20 cable channels, and equity shares with digital over the top platforms (1).

Finances

Disney Inc. is traded on the New York Stock Exchange Company. Their shares have been high for the past three months with their most recent share price at $114.05 (2). Their average earnings per share at the end of the 2015 fiscal year was $4.90 (4) .

DIS Stock Prices from September 1, 2015 to December 1, 2015. Picture from Market Watch.

DIS Stock Prices from September 1, 2015 to December 1, 2015.
Source: Market Watch.

Disney’s Media Network’s total revenue, year-end, was $23.264 billion and the total income was $7.793 billion (1).

Broadcast

The American Broadcast Company (ABC) is a branch of Disney Media Networks and was founded in 1943 (3). The Disney|ABC Television group is comprised of several businesses including ABC Entertainment Group (ABC Entertainment and ABC Studios), ABC Television Network, ABC News, ABC Family, ABC Owned Television Stations Groups, Disney|ABC Digital Media, and Disney|ABC Domestic Television (a network that airs syndicated programming) (1).

ABC logo. -Source abc.go.com

ABC’s Primetime Fall season has been doing relatively well with high ratings (5). They have primetime programming Sunday to Friday nights and on Saturday, they air football.

ABC 2015 schedule Photo from http://abc.go.com/schedule

ABC 2015 schedule- Source: abc.go.com/schedule

ABC has ten new shows for the 2015-2016 year. Five of the ten shows including Quantico, Blood & Oil, Wicked City, Dr. Ken, and The Muppets have already been premiered. Returning shows include Modern Family, Scandal, Nashville, Shark Tank, Fresh Off The Boat, Agents of S.H.I.E.L.D., Once Upon a Time, Jimmy Kimmel Live, and more.

While new shows Quantico, Dr. Ken, and The Muppets are doing quite well and are expected to be renewed for another season (6), Blood & Oil is not doing as well and very close to being canceled and Wicked City’s ratings plummeted quickly at a record low of 1.7 million viewers in their third week, and after their third episode, it was the first show of the season to be canceled.(12).

ABC’s 10:00 pm shows Monday through Wednesday are all doing poorly (9). Castle and Nashville are shows with poor ratings and are said to be in their last seasons are both in the 10:00 pm spot and Wicked City was in that spot as well (10).

Thursday Nights primetime 8:00-10:00 pm continue to have high ratings. Thursday is “Thank God It’s Thursday Shonda Night” with popular ShondaLand shows, Greys Anatomy, Scandal, and How To Get Away With Murder. ShonaLand’s fall season is doing very well with a large following and excitement around the three shows (5).

ABC’s total revenue for the 2015 fiscal year was $6.683 billion coming from renewal of affiliate deals and advertising sales. ABC’s primetime are top spots for ad sales due to their high ratings, especially on Thursdays 8:00-10:00 pm (10). Monday through Wednesday 10:00 pm spots are not as popular, but they still sell enough ad spots (3). ABC is earning more advertising revenue during the holiday season with specials and family favorites (14).

Cable

Disney’s Media Network owns and operates 7 cable networks and has shares in 13. Owning 100% of both Disney Channels and ABC Family, 80% share in ESPN, and 50% in A&E, Disney|ABC runs 20 networks with 1,832 million subscribers total. In the 2015 fiscal year end, Disney|ABC’s cable networks had $16.581 billion in revenues from subscribers and ad sales (1).

ABC Family logo Source: abcfamily.go.com

ABC Family recently released their winter premiere dates and have begun creating buzz around the return of popular shows Pretty Little Liars, The Fosters, Baby Daddy, Young & Hungry, along with the series premiere of Shadowhunters and Recovery Road. For the month of December, ABC Family filled their schedule with holiday programming, specials and movies (11).

Disney Channel Logos Source: disneyabcpress.co

Disney Channels include The Disney Channel, Disney Junior, programming for infants and toddlers, DisneyXD, Hungama, in India, and Radio Disney. have kid-friendly programming 24/7 with holiday programming in the month of December with holiday episodes, specials, and family movies (15).

DISNEY|ABC owns 80% of ESPN, a cable network with 7 channels and over 540 million subscribers (1). ESPN is one of the top networks for sports programming available through television, over the top streaming services, and radio broadcasts (16). ESPN has high ratings and does bring in ad revenue (19).

ESPN logo Source: espn.go.com

While ESPN provides Disney with 50% of their profit, over the past two years, ESPN has lost 7 million subscribers, which will effect the company (17). As such, ESPN has spent more money on operating and program expenses with hopes to bring in more subscribers and make the experience better for their current customers (18).

Disney|ABC will continue to work on gaining more cable subscribers through advertisements and programming (18). ABC is promoting their new shows for the winter season premiering in January including The Bachelor, The Catch, The Family, and Of Kings and Profits. Disney Channel recently became available in Canada and will continue to spread into other countries (20). In addition, they are working on future projects for ABC, including a Marvel comedy, Damage Control. Disney predicts their Media Network revenue to grow from their creative original content. (1)

Hopefully ABC will produce a successful show for the 10:00 pm spot and their cable networks gain more subscribers.

Sources

(1) Disney Annual Report. Retrieved December 2, 2015.https://www.thewaltdisneycompany.com/sites/default/files/reports/fy15-form-10k.pdf

(2) Disney Stock Information. Retrieved December 2, 2015. https://www.thewaltdisneycompany.com/investors/disney-stock

(3) Media Networks. Retrieved December 2, 2015 www.thewaltdisneycompany.com/disney-companies/media-networks

(4) Walt Disney Co. Retrieved December 2, 2015. https://www.marketwatch.com/investing/stock/dis/charts?symb=DIS&countrycode=US&time=6&startdate=1%2F4%2F1999&enddate=12%2F1%2F2015&freq=1&compidx=none&compind=none&comptemptext=Enter+Symbol%28s%29&comp=none&uf=7168&ma=1&maval=50&lf=1&lf2=4&lf3=0&type=2&size=2&style=1013

(5) ABC Renew/Cancel standings, week 10: ‘Quantico’ remains safe for now. Retrieved December 2, 2015. http://tvbythenumbers.zap2it.com/2015/12/01/abc-renewcancel-standings-week-10-quantico-remains-safe-for-now/

(6) ABC Renew/Cancel standings, week 10: ‘Quantico’ remains safe for now. Retrieved December 2, 2015. http://tvbythenumbers.zap2it.com/2015/12/01/abc-renewcancel-standings-week-10-quantico-remains-safe-for-now/

(7) No TV Shows Canceled? Retrieved December 2, 2015. ttp://www.latimes.com/entertainment/tv/la-et-no-canceled-tv-shows-20151105-story.html

(8) Company Overview. Retreived December 2, 2015. http://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=13728276

(9) Wicked City Cancellation. Retrieved December 2, 2015. http://www.ibtimes.com/abcs-cursed-tuesday-night-time-slot-wicked-city-cancellation-continues-three-year-2188192

(10) Fox, ABC Dramas Boast Biggest Lifts in C7 as Extended Commercial Ratings Favor the Strong. Retrieved December 2, 2015. http://adage.com/article/media/fox-abc-dramas-boast-biggest-lifts-c7/301137/

(11) ABC Family. Retrieved December 2, 2015. http://abcfamily.go.com

(12) ABC’s ‘Wicked City’ Ratings Are Historically Bad — How Low Can They Go? Retrieved December 2, 2015. https://www.thewrap.com/wicked-city-abc-tv-ratings-nielsen-drama-people-meter-disney-tax-credit/

(13) ABC Renewals. Retrieved December 2, 2015. http://tvbythenumbers.zap2it.com/2015/11/17/abc-renewcancel-standings-week-8-wicked-city-and-the-10-oclock-problem/

(14) Weekly Ratings. Retrieved December 2, 2015. http://tvbythenumbers.zap2it.com/2015/12/01/tv-ratings-monday-nov-30-2015/

(15) What’s On Disney Channel? Retrieved December 2, 2015. http://affiliate.zap2it.com/tvlistings/ZCSGrid.do?fromTimeInMillis=1449475200000&stnNum=12510&channel=&sgt=grid&aid=disn

(16) ESPN. Retrieved December 2, 2015. http://espn.go.com/

(17) ESPN Subscribers Fall. Retrieved December 2, 2015. http://www.cnbc.com/2015/11/27/disneys-espn-subscribers-fall.html

(18) Disney Feels Pain of Lost Subscribers. Retrieved December 2 2015. http://www.bloomberg.com/news/videos/2015-11-30/disney-feels-pain-of-seven-million-lost-espn-subscribers?cmpid=yhoo.headline

(19) Disney Posts Strong Ad Revenue. Retrieved December 2, 2015. http://www.mediapost.com/publications/article/262014/disney-posts-strong-ad-revenues-for-espn-abc.html

(20) Disney Channel in Canada. Retrieved December 2, 2015. http://www.theglobeandmail.com/report-on-business/corus-gains-canadian-rights-to-disney-channel-content/article23983642/

A+E Television Networks- Carly Cott

Posted on April 17, 2015 by htfergus

by CARLY COTT

A+E Network logo image

HEADQUARTERS

235 E. 45^th Street

New York, NY 1001

www.aenetworks.com

KEY EXECUTIVES

Headshot of Nancy Dubue. Photo Credit N/A

Nancy Dubue

President and Chief Executive Officer, A+E Networks

Headshot of Robert DeBietto. Photo Credit N/A.

Robert DeBitetto

President, Brand Strategy, Business Development and A+E Studios, A+E Networks

ABOUT

With it’s beginning in 1984, A+E Networks has blossomed from a collaboration between The Hearst Corporation and The Walt Disney Company, into an international media company with 11 channels and six original brands. A+E stands for “Arts and Entertainment” and reaches nearly 160 markets worldwide, communicating to a wide array of over 60 different languages. A+E incorporates ten channels, A&E, Lifetime, Lifetime Movie Network, History, FYI, Crime and Investigation, History (Spanish), and Lifetime Real Women. Dance Moms on Lifetime, and Duck Dynasty on A&E together are two of A+E Networks top shows, as well as most watched shows.

HISTORY

In 1984, on February 1, the Arts and Entertainment Network, now more commonly known as A+E network, was formed and began broadcasting. A show called, “Biography” is then introduced the network in 1987, as a once-a-week-prime-time series. It was not until 1990 that A+E began commissioning episodes of “Biography”. Three years later, in 1993 the Rockefeller Group decided to sell its total interest in A+E to Hearst Corporation, ABC, and NBC. The official name change from Arts and Entertainment to A+E, was made in 1995, when “Biography” became a five nights a week screened show. The History channel and Biography Chanel International were then launched in November of 1998.

When the network began broadcasting on February 1, 1984, the network hit 1,500-cable systems with nine million subscribers. The British Broadcasting Corporation (BBC), give the network a range of rights to British programming. In just the first year, over 60 percent of A+E’s programming came from the BBC. Excitingly, the network turned its first profit in 1987, and within the year had revenues surpassing $50 million. Cable subscribers upped to a whopping 37 million, and between 1987 and 1997, the networks average growth stunted at 30 percent per year in profits and revenues.

By 2001, the History channel hit a 70 million-subscriber mark, making it the fastest growing cable network since its launch. Following, in 2009 A+E Networks combined with Lifetime Entertainment. This year, the company celebrated 30 years, and is thought to be worth around $26 billion.

FINANCIALS

A+E is a privately owned company, so there were no public financials to be found.

COMPANY NEWS

On March 17^th it was announced after 11 years working for A+E, Neil A. Cohen is leaving the network to join UTA as an Alternative TV department agent. Cohen will now be based in the New York and work with talent in cable and network. He worked at A+E as the Senior Vice President of Talent and Production, giving him what Brett Hansen noted as, “an unbeatable combination”.

Elaine Frontain Bryant and Paul Cabana. Photo courtesy of A+E Networks.

On March 18^th, it was announced that A+E had promoted their two senior programming executives after the departure of previously mentioned David McKillop. Elaine Bryant who worked as Senior Vice President of Programming moved into her position as Executive Vice President and head of programming for the A&E Network. Paul Cabana also got to Executive Vice President and head of programming for History and H2. He had previously been posted as the Senior Vice President and head of programming for H2. Bryant reports to Rob Sharenow, and Cabana reports to Dirk Hoogstra. Hoogstra and Sharenow noted both executives as being, “vital to the success of A+E Networks”.

Liz Gately. Photo Credit N/A

Liz Gateley is returning to the executive ranks and to Lifetime. Gateley has been named Executive Vice President and Head of Programming for the network. She from now on will be the head honcho in charge of movies, scripts, and unscripted series development. Lifetime has had an absent spot for head of programming since JoAnn Alfano. At the time, Lifetime was put under the watchful eye of A+E Networks’ own Nancy Dubuc.

HIGHLIGHTS/LOWLIGHT OF SPRING 2015

Spring 2015 was maybe not as exciting as Fall 2014, but had some action. Weather it was the launch of the new history website x, the collaboration and production of a new production and distribution company, or the return of a hit series, A+E Network continues to moves in a forward and upward motion into the Summer months

April 13^th, it was announced that A+E Network is launching an “Asterisk Internet Media Brand” with new spins on history, trying to spice things up a bit. So what’s the point of it all? A+E says the point is to, make history worldwide seem “less like homework”. The website, “Asterisk” features stories looking deep into contemporary culture and entertainment throughout the span of history. The site is aimed at the millennial generation, and includes mass amounts of visual stimulation, videos, photos, etc. As of the launch, the site does not have any marketing partners, but A+E says those deals are in the works. The site is split into 10 different categories including, life skills, sports, people, food and drink, ideas, arts and entertainment, work, style, travel, and tech. Evan Silverman, Senior Vice President of Digital Media for A+E Networks, says “People tend to think about history as Abraham Lincoln, but we can provide context to contemporary people, trends or places”. Silverman hopes to give viewers a daily dose of history in a new and innovative way, making it user friendly, and relevant to today’s culture.

On March 20^th, it was announced that Howard T. Owens, former National Geographic Channel president, is going back to independent TV production. The launch of a new production and distribution company, “Propagate Content”, will be run by Owens and partner David McKillop. McKillop has worked as Senior Vice President of Development and Programming at History, then as Executive Vice President of Programming for A&E, eventually moving on to work as Executive Vice President and General Manager for A&E channel. A+E Network is an equity partner for the new company, “Propogate Content”.

It was announced on January 9^th the hit series “Mountain Men” was retuning for a fourth season. The show follows six men whoa re living far from civilization, using survival skills, hunting skills, and skillful cunning efforts to stay alive, clothed, and fed. The men face chaos in the unpredictable series that prepares them for the unpredictable.

SOURCES

(1) http://www.fundinguniverse.com/company-histories/a-e-television-networks-history/

(2) http://deadline.com/2015/03/neil-cohen-joins-uta-ae-networks-executive-1201394219/

(3) http://deadline.com/2015/03/howard-t-owens-david-mckillop-production-company-ae-networks-propagare-1201401158/

(4) http://www.aenetworks.com/article/mountain-men-returns-history-spring-2015

(5) http://variety.com/2015/digital/news/ae-launches-asterisk-internet-media-brand-with-new-spins-on-history-exclusive-1201470981/

(6) http://www.hollywoodreporter.com/news/a-e-at-30-how-690921

(7) http://www.aetv.com

(8) http://www.aenetworks.com/article/ae-studios-announces-first-look-development-deal-feature-film-and-television-producer-rachel

(9) http://www.aenetworks.com/article/ae-network-premieres-new-series-neighbors-benefits-sunday-march-22-10-pm-etpt

(10 )http://www.aenetworks.com/news

NewsCorp/21st Century – Fox

Aside

by Lina Ortega

21st Century Fox

[Image courtesy of: new.pentagram.com]

www.21cf.com

Contact information

21st Century Fox 1211 Avenue of the Americas 44th floor New York, NY 10036-8701

Key Executives

Rupert Murdoch: Chairman & Chief Executive Officer [Image courtesy of: thenation.com]

Chase Carrey: President and Chief Operating Officer [Image Courtesy of: stockspinoffs.com]

James Murdoch: Co-Chief Operating Officer [Image Courtesy of: mikeangryman.com]

About 21st Century Fox

What was once News Corporation since 1953 [I], is now comprised by “News Corp” and “21st Century Fox.” News Corp consists of a publishing group that includes several newspapers like Wall Street Journal, New York Post and Times of London. 21st Century Fox is a broadcasting and film company that includes the “Fox News channel”, “20th Century movie and television studios”, “Fox sports”, “FX”, “National Geographic” and “FOX broadcast network”. [II] This separation was intended to ensure that both companies were conducted under more a centered management, which makes both companies more valuable.

21st Century Fox is a global media company and was founded in June 28, 2013 [III]. It acquires market from four principal operating segments: 1- Cable network programming, which it’s mostly production and licensing content through cable, telecommunications providers, and broadcast satellite. 2- Television, which operates the company’s 28 full-power broadcast stations. 3- Film Entertainment, the operator of the company’s numerous film and television production studios. 4- Direct Broadcast Satellite Television, which provides programming to international markets. The company also holds a 39% of BSkyB, the British entertainment and communications provider. 21st Century Fox makes its revenue principally on affiliate subscriptions, broadcast and advertising fees, content licensing and retransmission revenues to maintain the top line [IV]. Fox Broadcasting Company ended the year 2012 at number one in the key adult demographic for the eight consecutive year in America [V].

Financials

The Cable Network Programming segment surpassed $12 billion in revenue for the first time in its history, up 13% over their prior year. 2014 21st Century Fox Annual Report:

What’s Happening Now?

In cable programming, FX Networks has currently 25 successful shows on air [VI].

Image courtesy of: The Christian Post

American Horror Story is now on the 7th episode of its 4th season “Freak Show” and it is one of the most watched TV series of the FX Networks. The show presents an anthology of different narratives for each new season [VII]. With an 8.4 out of 10 by IMDB, the show went from 2.82 million viewers on its first season to 4.00 million viewers now [VIII].

In television, FOX has a great variety of very recognized shows that can range mostly in animation, comedy, and thriller.

Image courtesy of: forbes.com

One of the FOX newest TV shows premiered recently on September 22, 2014 with 8.21 million viewers [IX]. Gotham explores the beginning tales of Commissioner Gordon. While in the show he is still a detective, he has yet to meet Batman and the villains who made Gotham City so popular [X]. Gotham received two nominations in the TV divisions for the “American Society of Cinematographers 29th annual Outstanding Achievement Awards” . Additionally, the pilot was recognized in the category for a TV movie, miniseries or pilot [XI].

20th Century Fox is one of the most recognized film industries in the world. This year 2014, Fox released 13 feature films with a result of $1,539,266,539 in total gross [XII]. This includes: X-Men: Days of Future Past, Dawn of the Planet of the Apes, How to Train your Dragon 2, Gone Girl and Rio 2, as in order of total ranking.

Image courtesy of: msmagazine.com

Gone Girl was released in October 3, 2014 and it has a domestic total of $160,757,000 as of today November 30th, plus a $173,400,000 of foreign totals while the production budget was only 61 million. Currently in its 5th week, it is ranked number 8 [XIII]. Gone Girl has received many awards including the “Hollywood Film Award” at the 2014 Hollywood Film Festival [XIV].

Penguins of Madagascar is an animated comedy distributed by 20th Century Fox and is its newest film on the market, released on November 26, 2014. This film takes the peculiar penguin characters of the previous Madagascar movies, whom must stop a villain doctor from destroying the world [XV]. As of its first weekend it is currently number two with a total gross of $36 million [XVI].

This has been one of the best years for Fox and they are not planning on backing down. On December 5, 2014 The Pyramid will be released. The Pyramid is about an archaeological team ventures to unlock the mysteries of a lost pyramid and instead find themselves hunted by an insidious creature [XVII].

As Europe’s leading entertainment company, Sky has 20 million consumers across five countries: Italy, Germany, Austria, the UK, and Ireland [XVIII].

Image courtesy of: denofgeek.com

Penny Dreadful is a psychological thriller that brings together literature’s most terrifying classical characters, like Dr. Frankenstein and Dorian Gray [XIX]. It aired on May 11, 2014, and it won “Most Exciting New Series” at the Critics Choice Television Awards [XX]. Penny Dreadful is coming back with its new season for a 2015 debut on the channel [XXI].

In Other News

Image courtesy of: The Independent

Exodus: Gods and Kings has received criticism due to its lack of ethnic diversity, to which Rupert Murdoch decided to respond by tweeting the following: “Moses film attacked on Twitter for all white cast. Since when are Egyptians not white? All I know are.” [XXII]. Murdoch has not received too many good responses about this issue.

Image courtesy of: realscreen.com

On October 10, 2014, 21st Century Fox and Apollo made an agreement to create a leading company multi-platform content provider each of them owning 50 percent. Now Endemol, Shine Group, and Core Media will be a sole group in over 30 markets including digital, gaming and distribution operations [XXIII].

Up until 2018, Fox has 48 movies, including many sequels as well as prequels that are yet to come [XXIV].

[I] News Corporation Limited History From 2002. Retrieved November 27, 2014 [II] NewsCorp Divides Into Two Companies From June 28, 2013. Retrieved November 17, 2014 [III] 21st Century Fox Company Details Retrieved November 27, 2014 [IV] 21st Century Fox Analysis From November 24, 2014. Retrieved November 27, 2014. [V] Fox Broadcasting Company Retrieved November 29, 2014. [VI] 21st Century Fox Retrieved November 27, 2014. [VII] American Horror Story Retrieved November 29, 2014 [VIII] American Horror Story Numbers From October 13, 2014. Retrieved November 29, 2014 [IX] Monday Final Ratings From September 23, 2014. Retrieved November 29, 2014 [X] Gotham TV Show From September 22, 2014. Retrieved November 30, 2014 [XI] ASC Nominations for TV Cinematography From November 19, 2014. Retrieved November 30, 2014. [XII] 20th Century Fox Box Office Mojo From November 23, 2014. Retrieved November 30, 2014. [XIII] Box Office Mojo Retrieved November 30, 2014. [XIV] Gone Girl Tops Hollywood Film Awards From November 14, 2014. Retrieved November 30, 2014. [XV] The Penguins of Madagascar Retrieved December 1, 2014 [XVI] Penguins of Madagascar Box Office Mojo Retrieved December 1, 2014. [XVII] The Pyramid Retrieved November 30, 2014. [XVIII] Sky Retrieved November 29, 2014. [XIX] Penny Dreadful TV Series Retrieved November 30, 2014. [XX] Penny Dreadful Awards Retrieved November 30, 2014. [XXI] Penny Dreadful First Look From November 21, 2014. Retrieved November 30, 2014. [XXII] Rupert Murdoch’s Response From November 30, 2014. Retrieved November 30, 2014. [XXIII] 21st Century Fox and Apollo From October 10, 2014. Retrieved November 29, 2014. [XXIV] New Movie Releases Retrieved November 30, 2014.

Discovery Communications

Posted on March 15, 2014 by Parker Davis

By Parker Davis

Discovery Communications Logo- image courtesy of givingtuesday.org

Overview [1] [2]

TLC Logo- image courtesy of businessinsider.com

John Hendricks originally founded Discovery Communications under the name Appalachian Community Service Network in 1982. The first station launched was The Learning Channel, an educational station for youths and adults alike. When the company changed its name to Discovery Communications in 1985, other education based channels were established such as the Discovery Channel and the first 24/7 HD basic cable channel, Discovery HD, currently known as Velocity [1]. Today, Discovery Communications is the world’s #1 subscription based television network, reaching over 2 billion subscribers in 220 countries. They own over 200 television stations including: the Science Channel, Animal Planet, and OWN. Outside of television, Discovery Communications is also a large publisher of educational books and operates online media channels such as Revision3 and howstuffworks.com [2].

Executives [3]

John S. Hendricks- image courtesy of corporate.discovery.com

John S. Hendricks: Founder and Chairman Discovery Communications

David M. Zaslav- image courtesy of corporate.discovery.com

David M. Zaslav: President and CEO Discovery Communications

Jean Briac Perette- image courtesy of corporate.discovery.com

Jean Briac (JB) Perette: President Discovery Networks International

Financials [4] [5] [6] [7] [8]

Discovery Communications is publicly traded under three stock series: DISCA, DISCB, and DISCK. Each ticker symbol translates to series A, B, and C stock. The newer issuances indicate a new corporate milestone, thus returning a higher company valuation number, resulting in a higher IPO for the new distribution of shares. DISCA contains the most shareholders. Within the previous three months, DISCA prices ranged from $76.80 to $85.97. Currently, it is recovering from its lowest point in the period, occurring April 15, 2014, and slowly increased 1.7% to $77.83 on April 18 [4].

Comparison of DISCA, DISCB, DISCK over a three month period- courtesy bloomberg.com

Comparison of DISCA, DISCB, DISCK- image courtesy of bloomberg.com

In the Annual Financial Statement for 2013, total revenue equated to $5.54 billion. A 19% increase over 2012, which generated $4.49 billion, a mere 8% increase over 2011 [5]. This growth is credited in their recent “acquisition of the majority stake in Eurosport International will drive international to contributing more than 50 percent of total company revenue” [6]. Discovery Communications possesses only 1% of total market share, competing alongside other media conglomerates such as: A&E, NBCUniversal, and Viacom [7] [8].

Retirement and the Curiosity Project [9] [10] [11] [12] [13] [14]

John S. Hendricks- image courtesy of curiosityretreats.com

Discovery founder and chairman, John Hendricks, officially announced his retirement in March. He will formally resign during the annual shareholder’s meeting on May 16; however, he has not released who will take his place as chairman. Although, sources speculate that current CEO, David Zaslav, may be a potential candidate for the position [9]. In his retirement letter to the board of directors, Hendricks explained that he will “spend the next few years traveling the planet and discovering the questions and mysteries that intrigue us all.” He will also use the opportunity to expand his new business, Curiosity Project LLC, announced February 10 of this year [10].

The mission of Curiosity Retreats is to create a unique forum where the lifelong curious can gather to explore in-depth the great questions of today. [11]

Curiosity Video Overview (Vimeo)

One currently operational aspect of the project is retreats for inspirational and open- minded thinkers alike. The retreats are five nights long at the Gateway Canyons resort in Colorado, including a panel of 8 different experts in the field of: science, technology, civilization, and human spirit [12]. The purpose of the retreat is to enlighten already intellectual minds and expand their imagination by collaborating and with others.

Gateway Canyons- image courtesy of multivu.com

The new aspect of Hendricks’ venture is video on demand. His plan is to compile recordings of the experts from the retreats and publish their talks online for an annual fee of $19.99. However, this venture may prove impractical because there are already free services similar to his found in university publications and intellectual websites, such as TED [13].

Hendricks founded Discovery in 1982 and stepped down as CEO in 2004 and began his role as chairman on the board of directors. He was with the company for 32 years [14].

Eurosport [15] [16] [17]

Eurosport Logo- image courtesy of 3.bp.blogspot.com

Discovery Communications is expanding its international affiliations by moving into the televised sports market. On January 21, Discovery purchased controlling share (51%) in Eurosport for $1.2 billion [15]. Since April 2013, Discovery owned 20% stake in the station. The extension was made in a monetary agreement with TF1, a French television network and previous majority owner of Eurosport. The purpose of Discovery’s equity increase is to compete with British Sky Broadcasting and BT, a UK cable provider, for exclusive Premier League television rights [16]. Discovery chose to expand its control over sporting networks so it can combine its international sports rights with its US based stations to avoid competing head on with domestic sporting networks. The new international acquisitions expand Discovery’s network portfolio, thus inflating revenue and control over the total media market [17].

DogTV [18] [19] [20]

DogTV Logo- image courtesy of dogtv.com

Discovery Communications has recently purchased an unspecified percentage of DogTV: a 2 year old network that targets the dog owner demographic and airs content specifically for pet entertainment. The station is distributed through DirecTV and has a subscription fee of $5 for television viewing and $10 for online streaming [17]. Current programming on the network includes 3-6 minute clips focused on a dog’s relaxation, stimulation, and exposure. Discovery Communications has developed a strategic partnership with DogTV, jointly creating similar programming for Animal Planet while spreading the reach of the network to other countries. This tactic by Discovery can be seen as a gamble to invest in television for dogs, however, over 43.3 million US households own at least one dog, collectively spending over $55.8 billion annually on pet products, and over half of which claim their dogs show interest in what occurs on television [18]. The channel is designed to relieve the stress and anxiety of stay at home pets [19].

DogTV in The News (YouTube)

New Form [21] [22] [23]

Left to Right: Ron Howard, Brian Grazer, David Zaslav- image courtesy variety.com

Discovery has co-founded and launched a new digital media site, New Form, alongside producers Ron Howard and Brian Grazer [21]. The purpose of the studio is to infiltrate the scripted media market, whereas Discovery contains mainly non-fiction and reality based content. In the startup, the firm appointed Kathleen Grace, former Head of Creative Development for YouTube Space LA, as the Chief Creative Officer for New Form [22]. The videos created will be used in conjunction with current Discovery Digital Networks rather than creating a new site from the ground up. The venture was also announced the same week as Discovery’s upfront presentations to entice advertisers about the concept. Today, media advertisers divide their capital between television and online mediums, serving as a potentially dramatic advertisement revenue increase for Discovery. Zaslav is making the push for Discovery to move into the Internet realm to make their channels easily accessible on all platforms for anyone to use [23].

Interview with David Zaslav and Ron Howard on New Form (Bloomberg)

Works Cited:

[1] Discovery Communications Founder John Hendricks to Retire as Chairman of Company’s Board. Discovery Communications. March 20, 2014. RT: April 13, 2014.

[2] Overview & Mission. Discovery Communications. RT: April 13, 2014.

[3] Leadership. Discovery Communications. RT: April 13, 2014.

[4] Google Finance Data. Google. RT: April 15, 2014.

[5] 2013 Annual Report. Discovery Communications. RT: April 15, 2014.

[6] Discovery CEO touts International Growth, Outlook. The Hollywood Reporter. Georg Szalai. April 3, 2014. RT: April 15, 2014.

[7] Introduction to the Entertainment & Media Industry. Plunkett Research, Ltd. RT: April 15, 2014. Used to calculate total market share.

[8] Top Competitors for Discovery Communications, Inc.. Hoovers. RT: April 15, 2014

[9] Discovery Communications Chairman John Hendricks stepping down. Los Angeles Times. Joe Flint. March, 20 2014. RT: April 17, 2014.

[10] John Hendricks Retirement Letter. John S. Hendricks. March 20, 2014. RT: April 17, 2014.

[11] Curiosity Mission Statement. Curiosity Retreats. RT: April 17, 2014.

[12] Curiosity About Page. Curiosity Retreats. RT: April 17, 2014.

[13] Discovery chairman John Hendricks to step down to pursue lifelong learning academy. Washington Post. Dan Beyers. March 23, 2014. RT: April 17, 2014.

[14] Cable Pioneer John Hendricks to Retire From Discovery Communications. Variety. Cynthia Littleton. March 20, 2014. RT: April 17, 2014.

[15] Discovery Takes Controlling Stake in Eurosport. New York Times. David Gelles. January 21, 2014. RT: April 17, 2014.

[16] Eurosport owner Discovery considering Premier League TV rights bid. The Guardian. Mark Sweney. January 24, 2014. RT: April 17, 2014

[17] Discovery to Take Control of Eurosport International. The Hollywood Reporter. Georg Szalai. January 21, 2014. RT: April 17, 2014

[18] Discovery Acquires Stake in DogTV, a Network Aimed at Canine Viewers. Variety. Todd Spangler. April 8, 2014. RT:April 18, 2014.

[19] Discovery Wants Your Dog To Watch More TV. Bloomberg Businessweek. Kyle Stock. April 8, 2014. RT: April 18, 2014.

[20] Discovery Buys Stake In A TV Channel For Dogs. Huffington Post. Bill Bradley. April 11, 2014. RT: April 18, 2014.

[21] Discovery teams with Howard, Grazer for online shows. USA Today. Roger Yu. April 3, 2014. RT: April 18, 2014.

[22] Brian Grazer, Ron Howard Launch ‘New Form’ Digital Studio With Discovery. The Hollywood Reporter. Natalie Jarvey. April 2, 2014. RT: April 18, 2014.

[23] Howard, Grazer to team with Discovery on Web shows. New York Post. Claire Atkinson. April 2, 2014. RT: April 18, 2014.

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