Lionsgate Entertainment #1

Posted on December 2, 2015 by Lilly Stuecklen

Lilly Stuecklen

Lions Gate Entertainment

2700 Colorado Ave Ste 200

Santa Monica, CA 90404

http://www.lionsgate.com/

Corporate Management

John Feltheimer, Chief Executive Officer | Source: Lionsgate

Michael Burns, Vice Chairman | Source: Lionsgate

Steve Beeks, Co-Chief Operating Officer and Co-President, Motion Picture Group | Source: Lionsgate

Brian Goldsmith, Co-Chief Operating Officer | Source: Lionsgate

Wayne Levin, General Counsel and Chief Strategic Officer | Source: Lionsgate

James W. Barge, Chief Financial Officer | Source: Lionsgate

Company Overview

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The Hunger Games | Source: IMDb

While the “Big 6” film studios have reigned for decades at the top of the box office, one “mini major” is quickly working its way into their usual territory, Lionsgate Films. Formed in 1997, Lionsgate stayed mostly under the radar as a producer of independent and niche films such as “American Psycho” and Tyler Perry’s “Madea” films until 2012. This was the year of Lionsgate, where it released “The Hunger Games” and acquired Summit Entertainment, the studio behind the “Twilight” franchise. Since 2012, Lionsgate has mingled at the top of the studio market share with the Big 6, being the youngest and smallest studio (550 employees vs. Warner’s 10,000), to gross over $1 billion in a year. [1]

Orange is the New Black | Source: IMDb

In addition to being Hollywood’s youngest film powerhouse, Lionsgate also operates its own television group. Its shows, such as “Orange is the New Black”, “The Royals”, and “Nashville”, currently dominate the digital, cable, and broadcast platforms. Their television library now contains 30 shows spanning 20 different networks that have brought in nearly 30 Primetime Emmy wins for this on-the-rise company. [5]

RIGHT HERE, RIGHT NOW

Financially, Lionsgate’s television and film units continue to grow exponentially. Their production revenue from TV increased to $580 million, up 30% from 2014. Television revenue is only expected to increase as all current shows in production have already been renewed for new seasons, and one, “Nashville”, has just been sold into syndication whilst still in production. [7]

Lionsgate owns the rights to these lucrative book-to-screen franchises. From left to right: Twilight, Divergent, The Hunger Games | Source: hypable

So far in 2015, Lionsgate ranks 7th among all studios for the market share of the film industry, and has stayed within the top seven for the past 3 years [3]. This steady success comes mainly thanks to their film franchises, which include the “Hunger Games”, “Twilight”, and “Divergent” series. Together they’ve raked in over $10 billion at the global box office, and this number continues to rise as the final “Hunger Games” installment turns into its third week in theatres. [7]

While still a blockbuster, the final installment of the series “Hunger Games: Mockingjay – Part 2” performed under expectations for its opening weekend. The $101 million opening fell roughly $19 million short of expectations, and is the lowest of the four-film series [8]. In response to this, shares have dropped from a three-month high of $42.50 to $34.25 [6]. Despite the slight under-performance, “Mockingjay – Part 2” still held on to first-place for a second week through the Thanksgiving weekend, beating out “The Good Dinosaur” and “Creed” on their opening weekends. [9]

File photo of Liberty Media chairman John Malone talking to reporters as he arrives at the Sun Valley Inn

John Malone has taken significant interest in Lionsgate lately | Source: The New York Post

Lionsgate, however, is confident that a slight dip in shares will not affect them in the long term. Media mogul and billionaire John Malone recently upped his ante in the studio, becoming its second largest shareholder. With this purchase comes the buzz that Malone’s company, Liberty Media (in charge of the Starz channel), may potentially attempt a merger with Lionsgate down the line. As the end of the breadwinning The Hunger Games film series draws near, the studio has been putting more eggs in the television basket than the film one, and Malone wants to capitalize on this. At the beginning of November, Lionsgate dropped $200 million for a controlling stake in Pilgrim Studios, a producer of several successful reality TV shows including “Ghost Hunters“. With this purchase and the potential to shift Lionsgate’s in-house produced shows to Starz, the likelihood that Malone is at Lionsgate to stay is high. [10]

Potential rendering of a Lionsgate/Hunger Games theme park | Source: New York Times

While the initial Hunger Games series may be coming to an end, Lionsgate is looking forward to an extremely long tail for the franchise. Spin-offs films, a theatrical experience, and theme parks are all potential new ways to keep the world of Panem alive and churning out profit. Following in the successful footsteps of Warner Bros., who licenses its characters to existing parks and developers instead of running their own (like Disney and Universal do), Lionsgate has plans for parks in Georgia and China. Meanwhile, a Lionsgate-themed area is already under construction at Motiongate, a soon-to-open park in Dubai that also has the rights to DreamWorks and Sony titles. In addition to utilizing the Hunger Games brand for “location-based entertainment”, “Step Up” dance shows and “Divergent” and “Now You See Me” attractions are in talks as well, all a part of the Lionsgate library. [11]

Gerard Butler as an Egyptian God in “Gods of Egypt” | Source: IMDb

While the long tail of The Hunger Games will continue to profit Lionsgate for years to come, their primary income is in their theatrical film releases. “Gods of Egypt“, planned for a February 26 release, is a fantasy epic concerning the lore of ancient Egypt. Recently though, the film has gotten a backlash of negative press due to a predominantly white casting. Posters released this month featuring lead actors such as Gerard Butler and Geoffrey Rush drew anger from celebrities and consumers alike, claiming it was both wrong and in bad taste, especially among all the recent racial unrest, to cast a film taking place in Egypt with mostly Caucasian people. Both Lionsgate and the director of the film, Alex Proyas, issued apologies immediately. [13]

Aside from the rough patch concerning “Gods of Egypt”, Lionsgate is as optimistic as ever in their endeavors. Approximately 12 films are slated for a 2016 release, including “The Divergent Series: Allegiant” and “Now You See Me 2” [12]. The Divergent series, based on a series of dystopian young adult novels and also featuring a strong female lead similar to “The Hunger Games”, hasn’t been the monstrous success that its predecessor has (the second film had a $130.2 million domestic box office gross vs. the second Hunger Game’s $424.7 million). Yet still, the series is Lionsgate’s lone remaining sure-fire breadwinner once “Mockingjay – Part 2” runs its course in theatres. [14]

In the case of “Now You See Me” in 2013, the original film had no built-in book audience to profit off of, and was a surprise hit for the studio, grossing $117 million domestically against a budget of $75 million. A sequel was immediately greenlit and “Now You See Me 2” is due to be released next summer. “Harry Potter” star Daniel Radcliffe has joined the cast, and his starpower combined with the returning Jesse Eisenberg, Dave Franco, and Woody Harrelson is expected to bring in promising receipts. [15]

Lionsgate is a true underdog. Where much of its competition is celebrating centennials, Lionsgate isn’t even old enough to have a drink at the bar. 2015 was a monumental year as their television properties escalated and their signature Hunger Games series came to an end. 2016 is promising and the Lionsgate name is sure to grace the headlines several times in the coming year.

Sources

[1]

Hollywood Has A New Star Studio With A Different Approach to the Film Business. Retrieved November 29, 2015. http://www.businessinsider.com/lionsgate-fighting-the-system-2014-1

[2]

Company Website. Retrieved November 29, 2015.http://www.lionsgate.com/

[3]

Lionsgate Film’s Yearly Box Office Standing. Retrieved November 29, 2015. http://www.boxofficemojo.com/studio/?view=company&view2=yearly&yr=2015&p=.htm

[4]

Film’s Gross Ranking. Retrieved November 29, 2015. http://www.boxofficemojo.com/studio/chart/?view2=ytd&view=company&studio=lions_gate.htm

[5]

Lionsgate Television Website. Retrieved November 29, 2015.https://www.lionsgate.com/tv/

[6]

Company Financial Profile. Retrieved November 29, 2015.://www.marketwatch.com/investing/stock/lgf

[7]

Fiscal Year 2015 Financial Report. Retrieved November 29, 2015. ://www.lionsgate.com/uploads/assets/2015%20Annual%20Report.pdf

[8]

Lang, Brett. Hunger Games: Mockingjay – Part 2 Box Office Predictions Lowered. Retrieved November 29, 2015.://variety.com/2015/film/news/hunger-games-mockingjay-part-2-box-office-predictions-lowered-1201646692/

[9]

Bahr, Lindsey. Hunger Games Beats Good Dinosaur. Retrieved November 29, 2015.http://finance.yahoo.com/news/hunger-games-beats-good-dinosaur-174719447.html

[10]

Lang, Brett. As Hunger Games Ends, John Malone and Lionsgate Grow Closer. Retrieved November 29, 2015. http://variety.com/2015/film/news/hunger-games-lionsgate-john-malone-1201643503/

[11]

Barnes, Brooks. Lionsgate Seeks to Build on Its Library of Film Properties With Theme Parks. Retrieved November 30, 2015. http://www.nytimes.com/2015/11/02/business/media/lionsgate-seeks-to-build-on-its-library-of-film-properties-with-theme-parks.html?_r=0

[12]

Lionsgate Upcoming Releases. Retrieved November 30, 2015. http://www.the-numbers.com/market/distributor/Lionsgate

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 December 1, 2014 by ptharami

by Paul Haramis

Netflix Logo – Courtesy of pr.netflix.com [1]

Corporate Headquarters [2]

100 Winchester Circle, Los Gatos, CA 95032

Phone: +1 (408) 540-3700

www.netflix.com

Key Executives [3]:

Reed Hastings, Founder and CEO

David Wells, Chief Financial Officer

Ted Sarandos, Chief Content Officer

Neil Hunt, Chief Product Officer

Greg Peters, Chief Streaming and Partnerships Officer

Tawni Cranz, Chief Talent Officer

History [4]:

http://www.qualitylogoproducts.com/blog/wp-content/uploads/2012/02/netflix-envelope-e1329161999677.jpg

Netflix didn’t offer streaming services until 2007 – Photo courtesy of qualitylogoproducts.com

Reed Hastings founded Netflix in 1997 with Marc Randolph [4]. The company was initially founded to offer online movie rentals. Customers would select a movie from the database and have it shipped directly to their home. In 1999, the company introduced monthly subscriptions, a format that the company still uses today. In 2002, Netflix first became available to the public on the NASDAQ. In 2007, Netflix began its streaming service, which has allowed the company to see exponential growth. Today there are more than 53 million members of Netflix, all of whom are scattered around the globe.

Financials [5]:

Courtesy of Google Finance

The third quarter was disappointing for Netflix as it fell short of its internal projections. They believed they would make around $1.41 billion dollars, but instead made around $1.22 billion dollars [4]. This is largely due to new subscriptions coming in at 980,000 as compared to the 1.3 million they projected. One of the biggest factors for the lower than anticipated new subscribers is believed to be the rise in price for a monthly subscription. The price rose from $7.99 a month to $8.99 a month. As part of their damage control, Netflix said that sometimes they over-predict their growth and sometimes they undersell it. This was to much avail as Netflix saw a 25% decrease in their stock after their third quarter earnings were released [6]. Some entrepreneurs saw this as an unbelievable opportunity. Netflix addressed fears that this was due to competition by saying, “Since our per-member viewing and retention in the US are as strong as ever, we don’t think increased competition from piracy, TV Everywhere, Amazon Prime Instant Video, Hulu, etc., is a major factor” [5]. This still didn’t prevent stock from dropping another 4% when HBO announced that HBO Go will be offered as a stand-alone streaming service and users won’t need an HBO cable subscription [5]. Netflix has been predicting this since 2011 and believes that since the content available on both is different, that both companies can continue to grow moving forward [5].

Original Content:

Netflix’s original content continues to be extremely strong and Netflix responded by creating additional new content as well as renewing current shows. In the third quarter, Netflix released an adult animated show “BoJack Horseman” as well as two new seasons of their hit shows “Orange is the New Black” and “The Killing” [5]. In addition, today Netflix announced that season 3 of the hit-show House of Cards, will be premiering on February 27, 2015 [7].

According to a Centris survey, 72% of domestic subscribers have watched some type of Netflix original programming [8]. This is up 15% from the first quarter of 2014 and is a great sign for Netflix that their subscribers are at least sampling their original programming. In another survey conducted for Netflix, 57% of subscribers stated that “original content was ‘extremely important,’ ‘quite important,’ or ‘moderately important” [8]. This information has pushed Netflix to churn out more original programming as they have a new show, “Marco Polo” set to release on December 12th. Netflix has reportedly spent $90 million dollars on the production of the show, which is expected to rival HBO’s hit show, “Game of Thrones” [9].

Netflix also recently announced that they will be creating an original series based on Lemony Snicket’s, “A Series of Unfortunate Events.” The books were international best sellers and the move allows Netflix to broaden its content reach with original programming [10].

Innovation

Netflix continues to innovate to make their product better and more expansive. This past quarter, Netflix has taken a number of big steps. The first was the completion of a four-year long project to switch over to HTML5 streaming [11]. The move should increase their streaming services as they will prevent users from having to download Microsoft Silverlight to stream Netflix. One of the most important tools for Netflix is their personal recommendations tool. This suggests new shows to users based on their previous shows and allows subscribers to keep watching new content. Netflix is continually testing new algorithms to improve this service and recently introduced a new feature that recommends shows based on characters from their original programming [12]. For example, subscribers can see programs recommended by Claire Underwood.

Photo courtesy of zap2it.com

This is a new way that Netflix believes it can keep pushing content on subscribers and keep their strong retention rate. The biggest innovation that Netflix made in the third quarter was their announcement of Crouching Tiger Hidden Dragon 2 straight to Netflix and select IMAX theaters [13]. This has several theater chains up in arms as they wonder about the potential future repercussions. Netflix also struck a deal with Adam Sandler and Happy Madison Productions to produce four movies released straight to Netflix [14]. It will be interesting to see if this causes a rise in subscriptions to view content that is exclusive to Netflix. It will also be interesting to see how many viewers the films get as Nielsen recently announced they will begin to track online viewing [15]. Netflix has refused to show viewership in the past as a way to alleviate pressure from its programming. It will be interesting to see how the new Nielsen ratings will effect the recent proclamation made by CEO, Reed Hastings this past weekend [16].

Global Expansion

The ultimate end goal for Netflix is to be a wide spread global company. In this past quarter, Netflix has made big strides in achieving that goal.

Photo courtesy of static.amigobulls.com

Earlier in the quarter, Netflix officially launched in six new European countries: France, Germany, Austria, Switzerland, Belgium, and Luxembourg [17]. This launch opened up Netflix to 63 million potential new households [17]. To accommodate the new European countries, many local and European content have been added to the database, as well as the addition of subtitles or dubbing European language over some current American content [17]. In the past two weeks, Netflix announced they will be launching in Australia and New Zealand in March 2015 [18]. The move pushes the number of countries and territories that Netflix is in over 50 [18]. Netflix will continue to grow that number as they expand globally.

Overview and Moving Forward:

Overall, despite failing to reach their projections, this has been an extremely successful quarter for Netflix as they continue to expand in both subscriptions and capabilities. It will be extremely exciting to tract their growth in the new year!

Sources:

[1] Netflix Logo, Netflix Media Center, Retrieved: November 29, 2014

[2] Company Overview, Netflix Media Center, Retrieved November 29, 2014

[3] Netflix: Officers & Directors, Officers & Directors, Retrieved: November 29, 2014

[4] Company Timeline, Netflix Media Center, Retrieved: November 29, 2014

[5] Letter to Shareholders, Quarterly Earnings, Retrieved: November 29, 2014

[6] Netflix Stock is Down 25% on This One Key Number in Earnings, MoneyMorning.com, Retrieved: November 29, 2014

[7] Netflix Announces ‘House of Cards’ Season 3 Premiere Date, Entertainment Weekly, Retrieved: December 1, 2014

[8] Netflix U.S. Viewership of Original Series Surges in Q3: Study, Variety, Retrieved: November 30, 2014

[9] Netflix is Creating One of the Most Expensive TV Shows in the World – Here’s Why It’s So Important, Business Insider, Retrieved: November 30, 2014

[10] Netflix to Adapt Lemony Snicket’s ‘A Series of Unfortunate Events’ into an Original Series, Netflix Media Center, Retrieved: November 30, 2014

[11] Netflix Goes HTML5 for Laptop Streaming, ZDNet, Retrieved: November 30, 2014

[12] Netflix Uses its Fictional Characters for Recommendations, Netflix Life, Retrieved: November 30, 2014

[13] Netflix Announces First Original Movie, Netflix Media Center, Retrieved: November 30, 2014

[14] O’Doyle Rules! Adam Sandler Heads to Netflix, Netflix Media Center, Retrieved: November 30, 2014

[15] Nielsen Plans to Track Netflix, Amazon — And It’s a Big Deal, Forbes, Retrieved: November 30, 2014

[16] Netflix CEO Reed Hastings says Cable TV Will be Dead by 2030, MSN, Retrieved: December 1, 2014

[17] Netflix Now in France, Germany, Austria, Switzerland, Belgium, and Luxembourg, Netflix Media Center, Retrieved: November 30, 2014

[18] Netflix, Inc. Heads to the Land Down Under, Nasdaq, Retrieved: November 30, 2014

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

Netflix

Link

By Carly Goldstein

Company Logo

100 Winchester Circle

Los Gatos, CA 95032

(408) 540-3700

www.netflix.com

Executives [1]

Courtesy of Netflix.com

Reed Hastings, Founder and CEO

Courtesy of Netflix.com

Kelley Bennett, Chief Marketing Officer

Courtesy of Netflix.com

Tawni Cranz, Chief Talent Officer

Courtesy of Netflix.com

David Wells, Chief Financial Officer

About [2]

Courtesy of internettrailer.com

As a leader in internet television, Netflix not only allows its members to instantly stream movies and television for a monthly fee, but also provides customers with original content. Users can also choose to select and receive content through the mail for an additional monthly cost. Competitors of the service include Hulu and Amazon.

History [3]

Courtesy of http://smokingsection.uproxx.com/

Netflix was founded in 1997 by Reed Hastings and Marc Randolph. The company provided online movie rentals that would be delivered to the costumer’s home within several business days. In 2007, Netflix introduced streaming, allowing subscribers to instantly watch movies and television shows on their electronic devices. Netflix began to introduce original content in 2012. As of 2013, the service has over 40 million users globally.

Financials

Domestically, the company reported an increase in net additions of 2.33 million in the fourth quarter, 14% above the 2.05 million of the same quarter of the previous year.[4] Internationally, Netflix reported a net addition of 1.74 million in the fourth quarter, increasing the number of international members to 10.93 million. [4] In the coming months, Netflix aims to broaden its international presence by offering its services in Germany. [5]

Courtesy of Google Finance

In April of 2013, the company tested a new membership plan in which subscribers could simultaneously stream on four different devices for $11.99 per month. [6] Netflix continues to adjust their prices and aims to offer three different membership options for new members in the coming year. The options include the $11.99 price as well as a $6.99 subscription for those who only require instant streaming on one device.[4]

The first quarterly report of 2014 will be shared on April 21st. However, consensus estimates a dramatic increase from the first quarterly report of 2013. [7] Currently, the Netflix stock rests at 346.73.

Original Content

Courtesy of http://o.aolcdn.com/

Beginning in 2012, Netflix has produced a variety of original programming including television series, documentaries and children’s programs. Lillyhammer, a Norwegian drama starring Steven Van Zandt, is considered Netflix’s first series and premiered on February 6, 2012.[8] Other original content includes The Ropes, Bad Samaritans, Hemlock Grove, and Turbo FAST. The site has also premiered a variety of documentaries and comedy specials such as Mitt and The Square. The later was the first movie of its kind to be nominated for an Academy Award for best documentary. [9]

Courtesy of upload.wikimedia.org

Netflix also produces material that no longer has a place on television. Several years after it’s cancellation, Arrested Development was resurrected for a fourth season on the streaming service in May of 2013. [10] In 2014, the season earned a Golden Globe nomination for Jason Bateman for best actor in a comedy series. [11] Netflix will also be reviving The Killing after it’s cancellation on AMC. [12] The show’s final season will premiere on the site some time this year.

Courtesy of upload.wikimedia.org

On February 1, 2013, Netflix released House of Cards. The show, based on the English television program of the same name, follows Frank Underwood, played by Kevin Spacey, a ruthless politician who does whatever it takes to gain more political power. House of Cards also stars Robin Wright and Kate Mara. The program received favorable reviews from critics, earning 3 Emmys and a Golden Globe after its first season[13], becoming the first show of its kind to do so.

As a result of the success of the first season, Netflix ordered a second season of House of Cards which was released on February 14, 2014. Utilizing Procera Network, it was reported that 15% of users of a particular internet service viewed the first episode within 14 hours of its release, an increase from the 2% of users who watched the first episode of the first season within the premiering weekend. [14]

10 days before the premiere of the second season, Netflix announced the renewal of House of Cards for a third season. [15]

Courtesy of www.galaticnewsone.com

Orange is the New Black premiered on Netflix on July 11, 2013. The program stars Taylor Schilling as Piper Chapman, a thirty-year old woman sentenced to 15 months in jail after she is convicted of crime committed ten years before. The show is based on a memoir by Piper Kerman of the same name. The show was nominated for a Golden Globe for best performance by an Actress in a drama television series, as well as a Grammy for its theme song. [16]

Netflix announced the premiere date of the second season of Orange is the New Black after the credits of the final episode of House of Cards. [17] The show’s second season is set to be available on June 6, 2014.

Looking Ahead

Courtesy of www.wired.com

Within this year, Netflix will be premiering numerous projects. Animated comedy, Bojack Horse, staring Will Arnett and Aaron Paul, will be released in the coming months.[18] As will Marco Polo, a adventure drama produced by The Weinstein Company.[19] The company will continue to show its interest in children’s programming when animated shows Puss in Boots, King Julien and Veggie Tales in the House are available for streaming later this year. [20] The second seasons of Orange is the New Black and Hemlock Grove will also premiere in June and July, respectively.

In 2015, Netflix will not only release its third season of House of Cards, but also release new original series. Science fiction drama Sense8, from the writers of The Matrix, will debut sometime in 2015. [21] Also set to be available for streaming in 2015, Narcos, a drama depicting the Medellin Cartel in Colombia, and Grace and Frankie a situational comedy staring Jane Fonda and Lily Tomlin. [22]

Courtesy of http://www.digitaltrends.com/

In February of 2014, it was announced that Disney will collaborate with Netflix to create four original series for Marvel heroes: Daredevil, Jessica Jones, Iron Fist and Luke Cage. The Marvel’s Defenders project will cost over $200 million over a three year span and film predominately in New York City. Filming will begin July of 2014 and premiere on Netflix sometime in 2015. [23]

Sources

[1] “Officers and Directors”. netflix.com. RT: 4/10/14

[2] “Company Overview” . pr.netflix.com RT: 4/11/14

[3] “Company Timeline”. pr.netflix.com RT: 4/11/14

[4] “Letter to Shareholders” . ir.netflix.com. January 22, 2014. RT: 4/11/14

[5] “Netflix Inc. Will Arrive in Germany”. Value Walk. April 16, 2014. RT: 4/18/14

[6] “Netflix Consumers Get Ready”. Bloomberg Businessweek. January 24, 2014. RT: 4/18/14

[7] “Earnings for Netflix Projected to Rise”. Forbes. April 16, 2014. RT: 4/18/14

[8] “Lillyhammer”. wikipedia.org. RT: 4/15/14

[9] “The Square Awards”. IMDB.com. RT: 4/15/14

[10] “New Arrested Development Season”. The New York Times. April 4, 2013. RT: 4/15/14

[11] “Golden Globes 2014”. Los Angeles Times. January 12, 2014. RT: 4/15/14

[12] “The Killing Shock”. Entertainment Weekly. November 15, 2013. RT: 4/16/14

[13] “House of Cards Awards”. IMDB.com. RT: 4/13/14

[14] “House of Cards Viewing Soars”. Variety. February 14, 2014. RT: 4/13/14

[15] “Netflix Renews House of Cards”. The Hollywood Reporter. February 4, 2014. RT: 4/13/14

[16] “Orange is the New Black Awards”. IMDB.com. RT: 4/13/14

[17] “Orange is the New Black Season 2 Date Revealed”. eonline.com. February 15, 2014. RT: 4/13/14

[18] “Netflix Adds Bojack Horseman”. Variety. December 11, 2013. RT: 4/18/14

[19] “Netflix Announces Pickup”. Variety. January 14, 2014. RT: 4/18/14

[20] “DreamWorks’ Puss in Boots”. videoink.com. March 13, 2014. RT: 4/18/14

[21] “Matrix Creators to Film Netflix Series”. Chicago Tribune. March 17, 2014. RT: 4/18/14

[22] “Jane Fonda, Lily Tomlin to Star in in Netflix Sitcom”. Los Angeles Times. March 19, 2014. RT: 4/20/14

[23] “Disney to Spend $200 Million on Marvel Series”. Variety. February 26, 2014. RT: 4/20/14

Lionsgate Entertainment

Posted on March 15, 2014 by Alexandra Koskoris

By Ali Koskoris

Lionsgate Entertainment

Photo Courtesy of destructoid.com[i]

Contact Information:[ii]

2700 Colorado Avenue, Suite 200, Santa Monica,CA 90404

1-310-449-9200

www.lionsgate.com

About Lionsgate Entertainment:

Founded in 1997 in Canada [iii], Lionsgate Films is an independent international entertainment company and segment of the Lionsgate Entertainment Corporation. It produces and distributes motion pictures, television programming and syndication, animation, and digital media. [iv] In 2003 the company merged with Artisan Entertainment and in 2012 it purchased Summit Entertainment for approximately $413 million. [v]

Lionsgate has gained momentum by creating blockbuster film franchises based on books, including Twilight, The Hunger Games, and Divergent. [vi] With a focus on cost discipline, Lionsgate releases approximately fifteen feature films and six to eight specialty films a year through its sister company, Roadside Attractions. The company television section also has close to thirty television series distributed through multiple mediums, including Mad Men and Orange is the New Black, and holds contracts with Hulu, Netflix, and Amazon. [vii]

Key Executives:

Photos and info Courtesy of: http://www.lionsgate.com [viii]

Financials:

In 2013 Lionsgate Entertainment earned $2.7 billion dollars – a 70.58% growth from 2012- and had a gross income of $1.3 billion dollars- a 95.22% gross income increase from 2012. [ix] Thus far in 2014 (through April 13), Lionsgate has grossed approximately $232 million domestically, led by recent release, Divergent and followed by The Hunger Games: Catching Fire, which is no longer in theatres. [x] The company stays small, with just 636 employees worldwide. [xi]

What’s Happening Now?

In 2014, Lionsgate Entertainment released eight films, and five are still in theatres. Divergent, The Hunger Games: Catching Fire, and I, Frankenstein lead 2014 in gross so far respectively (with the latter two out of theatres). [xii]

Divergent
The third of Lionsgate’s novel-to-film franchises, Divergent tells the story of a young woman who finds out she does not fit into the confined factions of her world and is “Divergent.” She must find out the truth about what it means to be Divergent when she uncovers a plot to destroy her faction. The film, directed by Neil Burger, is based on the Veronica Roth novel and features rising star Shailene Woodley. [xiii]

Photo Courtesy of http://themoviemash.com/ [xvi]

Photo Courtesy of themoviemash.com [xiv]

In its opening weekend (21-23 March 2014), Divergent topped the box office charts, grossing approximately $54.6 million domestically to its $85 million budget. Currently in its fourth week in theatres, the film has grossed $178.4 million worldwide. [xv] Like Harry Potter and the Twilight Saga, Lionsgate announced on 15 April 2014 that Allegiant, the third and final book of the series, will be split into two films. Part one will be released on 18 March 2016 and Part 2 will be released on 24 March, 2017. [xvi]

Draft Day
Draft Day tells the story of an NFL general manager who works to rebuild his team by trading for the number one pick. The film is directed by Ivan Reitman and it stars American sportscaster Chris Berman and actress Jennifer Garner. [xvii]

Photo Courtesy of IMDb

During its opening weekend (11-13 April 2014), the film ranked number four in domestic weekend gross, making about $9.7 million. As of 18 April 2014, it has grossed $15.8 million domestically. [xviii]

Tyler Perry’s The Single Moms Club
Tyler Perry’s The Single Moms Club is about a group of five single moms who overcome problems through their support group. Written and directed by Tyler Perry, the film stars Nia Long and Wendi McLendon-Covey. [xix]

Photo Courtesy of IMDb

For its opening weekend, the film ranked number five in domestic gross with $8 million. In week five (as of 17 April 2014), the film has grossed $15.8 million domestically. [xx]

Photo Courtesy of IMDb [xxv]

Joe In addition to these three films, Lionsgate is boasting Joe, a film distributed by Roadside Attractions. The film, starring Nicolas Cage and directed by David Gordon Green, tells the story of an ex-con who befriends a teenaged boy. [xxi] The film is different from Lionsgate’s other recent films because it was released On Demand on the same day it was released in theatres (11 April 2014). [xxii] The film was released in just 48 theatres domestically and, as of 20 April 2014, has grossed about $330 thousand at the domestic box office. [xxiii] The film has received positive reviews, with an 84% rating from Rotten Tomatoes and a 79% rating from audiences. [xxiv]

In Other News:

Photo Courtesy of rocketjump.com [xxvii]

On 14 April 2014, Lionsgate announced that it has created a multi-year partnership with video creator RocketJump Studios, which gained fame through its web series Video Game High School. RocketJump has 6.8 million subscribers and shows its content through multiple platforms. The partnership gives Lionsgate access to RocketJump’s digital content and gives RocketJump access to Lionsgate’s international marketing resources. [xxvi]

Photo Courtesy of Yahoo! [xxix]

On 20 March 2014 Lionsgate extended its contract with producer Grindstone Entertainment Group through a multi-year agreement. The team has been successful in the past with films like Empire State and Frozen Ground. Lionsgate Co-COO Steve Beeks said that Lionsgate is excited about the extension. [xxviii]

What’s to Come:

Lionsgate will release its newest film, The Quiet Ones, on 25 April 2014. The film, based on a true story, directed by John Pogue, and starring Jared Harris and Sam Claflin, tells the story of a professor and a group of students who uncover terrible secrets when they experiment on a young girl.[xxx]

Photo Courtesy of IMDb [xxxi]

Reviews from critics on Rotten Tomatoes seem to be mixed, so it should be interesting to see how the film does in theatres. [xxxii]

Photo Courtesy of IMDb [xxxiv]

On 25 July 2014, Lionsgate will release Step Up: All In, the fifth installment of the Step Up series. The film tells of a dancer and his dance crew who work to win an LA dance competition. The film is directed by Trish Sie and stars Ryan Guzman and Briana Evigan. Multiple stars from the previous films are featured as well. There are not yet any reviews for the film. [xxxiii]

Photo Courtesy of IMDb [xxxvi]

Lionsgate will also be releasing The Expendables 3 on 15 August 2014. Directed by Patrick Hughes and starring Sylvester Stallone and Jason Statham, the third film in the series tells of the conflict between The Expendables and the founder’s new, younger group of Expendables. The film also has not received any reviews. [xxxv]

Photo Courtesy of itk.ua [xxxix]

In addition to releasing three new films, Lionsgate will be recognized as the Company of Distinction for 2014 at the Banff World Media Festival (8-11 June 2014). [xxxvii] Lionsgate will be receiving this award because of its success, its diverse programming, and its “visionary approach to the global television business.” [xxxviii]

[i] Lionsgate Logo From 26 July 2009. Retrieved 18 April 2014.

[ii] Lionsgate Contact Retrieved 18 April 2014.

[iii] Founded From 24 Jan 2014. Retrieved 18 April 2014.

[iv] What Liongate does Updated 17 April 2014. Retrieved 18 April 2014.

[v] Merging with Artisan and Summit From 24 Jan 2014. Retrieved 18 April 2014.

[vi] Blockbuster Film Franchises Retrieved 18 April 2014.

[vii] Distribution Retrieved 18 April 2014.

[viiii] Key Executives Retrieved 18 April 2014.

[ix] 2013 Gross Income Retrieved 18 April 2014.

[x] 2014 Income Until April 13. Retrieved 18 April 2014.

[xi] Employees Retrieved 18 April 2014.

[xii] 2014 Films Retrieved 18 April 2014.

[xiii] Divergent Synopsis Retrieved 18 April 2014.

[xiv] Divergent Poster Retrieved 18 April 2014.

[xv] Divergent Financials As of 17 April 2014. Retrieved 18 April 2014.

[xvi] Divergent’s Future From 15 April 2014. Retrieved 18 April 2014.

[xvii] Draft Day Synopsis Retrieved 18 April 2014.

[xviii] Draft Day Opening Week As of 17 April 2014. Retrieved 18 April 2014.

[xix] Tyler Perry’s the Single Moms Club Synopsis Retrieved 18 April 2014.

[xx] Tyler Perry Financials As of 17 April 2014. Retrieved 18 April 2014.

[xxi] Joe Synopsis Retrieved 20 April 2014.

[xxii] Joe On Demand Retrieved 20 April 2014.

[xxiii] Joe Financials As of 20 April 2014. Retrieved 20 April 2014.

[xxiv] Joe Ratings As of 20 April 2014. Retrieved 20 April 2014.

[xxv] Joe Poster Retrieved 20 April 2014.

[xxvi] RocketJump Studios From 14 April 2014. Retrieved 18 April 2014.

[xxvii] RocketJump Logo Retrieved 18 April 2014.

[xxviii] Grindstone Extension 20 March 2014. Retrieved 18 April 2014.

[xxix] Grindstone Logo Retrieved 18 April 2014.

[xxx] The Quiet Ones Synopsis Retrieved 19 April 2014.

[xxxi] The Quiet Ones Poster Retrieved 19 April 2014.

[xxxii] The Quiet Ones Reviews As of 19 April 2014. Retrieved 19 April 2014.

[xxxiii] Step Up: All In Synopsis Retrieved 19 April 2014.

[xxxiv] Step Up: All In Poster Retrieved 19 April 2014.

[xxxv] The Expendables 3 Synopsis Retrieved 19 April 2014.

[xxxvi] The Expendables Poster Retrieved 19 April 2014.

[xxxvii] “Company of Distinction for 2014” From 27 March 2014. Retrieved 19 April 2014.

[xxxviii] Why Receiving Award Retrieved 19 April 2014.

[xxxix] Banff Logo Retrieved 19 April 2014.

Netflix

Posted on October 28, 2013 by Jamie Zaslav

By Jamie Zaslav

-Netflix Corporate Logo- [18]

Netflix Corporate Headquarters

100 Winchester Circle

Los Gatos, CA 95032

Tel: (418) 540-3700

Fax: (418) 540-3737

Email: info@netflix.com

www.netflix.com

Brief History:

Netflix Headquarters. Photo Courtesy of Business Cloud News [23]

Netflix, co-founded in 1997 by Reed Hastings, began as a pay-per-rental service of TV programs and movies on DVDs delivered by mail. Netflix, based in San Francisco, California, was a mail-order competitor to Blockbuster and other local video rental stores that were operating in the US. In 2000, Netflix changed its payments model from each rental to a monthly flat-fee for unlimited rentals of programs delivered by mail. Since the companies inception 13 years ago, Netflix has transformed into one of the most successful media streaming services, by not only having newer content available, but also by creating their own content. Today Netflix reaches of 37 million monthly subscribers around the world via broadband and it still has subscribers that receive programming on DVDs through the mail service. [1]

Key Executives:

Reed Hastings, Co-Founder & CEO

Co-founder & CEO Reed Hastings, Courtesy of Netflix

David Wells, CFO

CFO David Wells, Courtesy of Netflix

Neil Hunt, CPO

CPO Neil Hunt, Courtesy of Netflix

Ted Sarandos, Chief Content Officer

Chief Content Officer Ted Sarandos, Courtesy of Netflix

Kelly Bennett, Chief Marketing Officer

Chief Marketing Officer Kelly Bennett, Courtesy of Netflix

About:

Photo courtesy of Netflix [19]

Netflix is a video on-demand monthly subscription service delivered through broadband on the internet or delivered through DVDs in the mail to subscribers. By subscribing to Netflix for a monthly fee of $7.99, subscribers gain unlimited access to Netflix’s video library of TV shows and movies. Netflix is primarily in North America, but they’ve also expanded into South America, the UK, and several other countries. Unique to Netflix, they developed a recommendation algorithm that suggests TV shows and movies to subscribers based on what they rented to help their subscribers find programs they might like [2]. This is innovative because Netflix was using each individual’s viewing data to recommend programs they might like. Netflix creates a direct connection to the consumer business model and therefore it knows all of its subscribers, has a relationship with them, and can access all the data on how users use Netflix.

Netflix App, Available on almost all video platforms. Photo courtesy of Netflix [20]

This is very different from other premium series like HBO or Showtime, which have a relationship with the cable distributor who sells t the consumer. As broadband developed in the US, Netflix started to offer access to all of its TV and movie programs over broadband in addition to the mail service for the same monthly fee. Netflix worked hard to make content available on most video platforms including: Playstation, Xbox, Wii, Mac, PC, iPad, Tablet, Mobile and more [3].

They have recently started producing their own content, they have three web series and each earned Emmy nominations. Netflix has launched numerous original series in the last two years (House of Cards, Orange is the New Black, Russell Peters Vs. The World, Arrested Development Season 4, Lilyhammer and Bad Samaritans). House of Cards was their first series to earn a primetime Emmy Award nomination for outstanding series. All of Netflix’ content is delivered without commercials [4].

Netflix Original Series, House of Cards. Photo courtesy of Netflix [21]

In addition, Netflix makes full seasons of all of its TV programs available to Netflix users. In watching how users consume content, Netflix noticed that users began to watch full seasons of TV programs all at once. Netflix calls this “binge viewing” of TV content [5]. Netflix has been innovative by having all episodes of its original programming available on Netflix at once. When Netflix launched its first original series, House of Cards, it launched all 13 episodes on February 1, 2013 at once. Critics and viewers watched all the episodes over a short period of time giving the consumer full choice of how to watch the series rather than making it available once a week which has been the traditional TV model. House of Cards was a big success with Netflix subscribers and Netflix has launched and announced a number of additional original programs all of which will be made available in full seasons at the same time [6].

Finances:

Netflix generated approximately $3.2 billion in revenue for the first nine months of this year, up 20% versus the same period in 2012. However, this translated into only $146 million of operating income due to high marketing costs spent to attract new customers. Marketing costs this year are up 18% versus the first 9 months of 2012 and while that is a big increase, the level of increase is slowing. In 2012 marketing expense for the year was up nearly 30% with revenue growth only 13%. The marketing spend speaks to their focus on increasing new customers, which is working. They have increased their total domestic subscribers to nearly 30 million (more than HBO), up from 24 million a year ago and international subscribers to 8 million from only 4 million a year ago. The result has been rapid share price appreciation [17].

Growth:

Netflix has stated that it would like to grow to 50 or 60 million subscribers [7]. One of the biggest questions is whether Netflix has become more of a competitor with cable and satellite providers. Another big question is whether Netflix will reach its limit on customers like HBO and Showtime. Central to those questions is whether Netflix users feel they get enough content from the site and don’t need a cable subscription with all the cable channels [8]. Netflix primary business is in the US where it has over 30 million broadband subscribers and Netflix has expanded into South America, Canada and Europe bringing their total subscribers to 37 million worldwide.

Netflix Just for Kids Homepage. Photo courtesy of Netflix [22]

Content:

Netflix has a strong children’s programming library which includes such popular shows as Curious George, Sesame Street, Bob the Builder and Super Why. Kids have become some of the biggest users and fans of Netflix. As a result, Netflix has done a number of deals to add original children’s series to the Netflix platform. Netflix announced it will do 4 original children series with Disney [9], as well as several original series produced by DreamWorks Animation [10]. Netflix also has deals for content with Cartoon Network [11] and HUB Network [12]. The HUB shows are available on Netflix exclusively. These deals for original children’s shows will be available on Netflix, not any of its competitors.

Netflix has also struck a deal with CBS to show the Showtime series Dexter on Netflix [13].

Competitors:

Netflix has many competitors. Amazon and Hulu compete with Netflix for monthly broadband subscribers. Amazon’s subscription service is called Prime and is available at a yearly rate of $79 [14]. Hulu has a monthly fee of $7.99 a month with limited advertising [15], which is similar to how Netflix is offered. Also, HBO Go and Showtime Anytime offer monthly subscription services but they are offered through the cable operator or satellite providers as an add on to the users’ HBO or Showtime monthly fee [16]. HBO has been in business for 30 years and reached about 30 million homes and Showtime reaches about 20 million homes. Netflix is offered directly to consumers and has the advantage of having a direct relationship with its subscribers. Netflix can communicate directly with its subscribers and gets all the data on how its subscribers are using Netflix.

Sources:

[1] How Netflix Started (11/10/13)

[2] Netflix Recommendation Algorithm (11/10/13)

[3] Netflix Sign-Up (11/11/13)

[4] Netflix Vs. Hulu Video Streaming (11/9/13)

[5] “Binge Watching” (11/13/13)

[6] 5 New Original Series in the works for 2014 (11/19/13)

[7] Netflix Closes on HBO Boasting an Estimated 30 Million Paying Subscribers (11/3/13)

[8] Netflix Rivals Cable (11/12/13)

[9] Disney and Netflix are Powerful friends (11/12/13)

[10] DreamWorks Animation and Netflix make deal for new shows (11/15/13)

[11] Cartoon Network and Adult Swim shows now on Netflix (11/17/13)