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

Discovery Communications

Posted on April 1, 2013 by Jasmine White

by Jasmine White

The World’s #1 Nonfiction Media Company [2]

One Discovery Place
Silver Spring, MD 20910
Tel: 240.662.2000/ http://corporate.discovery.com/

Overview

Discovery Communications[1] entered the media sphere as a single channel, The Discovery Channel. After acquiring its rival, The Learning Channel in 1991, it would go on to enter a series of acquisitions that have earned the corporation notoriety as the world’s number one media company. Discovery is currently a publicly owned company and trades on the NASDAQ stock market. It currently reaches more than 1.8 billion subscribers in 218 countries and territories. Moreover, Discovery is proud to be a leading provider of educational products and services to schools and owns a diverse portfolio of digital media services.

[1]

Leadership [3]

Photo of John S. Hendricks John S. Hendricks is the founder of Discovery and serves as Executive Chairman. Hendricks wanted to provide viewers with quality documentaries that would allow them to explore their world. He has been the recipient of numerous awards, such as the Primetime Emmy Award, the Governors Award and the Lifetime Achievement Award.

Photo of Robert R. Beck Robert R. Beck has been Discovery’s Financial Consultant since 2001 and is a member of the compensation committee.

Photo of J. David Wargo J. David Wargo is the Director of Discovery, chairman of the Nominating Committee and a member of the Audit Committee.

Photo of Steven A. Miron Steven A. Miron is the Director of Discovery Communications and a member of the Nominating Committee.

Finances [4]

February 14, Discovery lost 33 percent of its net income in the fourth-quarter, dropping its income to $224 million, or 61 cents per share. Analysts were expecting 76 cents per share.

The company attributed the decline to a rise in taxes, equity-based compensation and costs due to its acquisitions. Total revenue rose 8 percent to $1.2 billion, in line with analysts’ expectations. Discovery forecast 2013 revenue of $5.58 billion to $5.70 billion. Analysts are expecting $5.43 billion.

Executives are relying on key partnerships and programming like Oprah Winfrey’s OWN network. They say that the high-profile and expensive joint venture is on track. Despite the success of OWN and ventures like it, Discovery generally makes 33 percent less money on advertising than rivals.

Oprah’s Interview with Lance Armstrong

Discovery continues to make innovative deals to supplement its income. December 14, the corporation officially closed the deal with ProSieben[5]. ProSieben has a total enterprise value of $1.7 billion. Discovery now has 12 companies in Norway, Sweden, Denmark and Finland, strengthening its connection in the Nordic markets. The transaction also included 19 radio stations, including the #1 radio portfolio in Sweden.

December was an eventful month for Discovery; the corporation announced a strategic alliance with TF1/Eurosport (Eurosport International and Eurosport France) [6], acquiring a 20 percent minority interest. Eurosport reaches 130 million subscribers in 59 countries across Europe. The alliance also garnered Discovery stock in France (TV Breizh, Histoire, Ushuaia TV and Stylia).

Product

[7]

Discovery Channel

Discovery Channel, launched June 17, 1985 is one of the most widely distributed cable networks in the United States. It is dedicated to creating innovative and quality nonfiction content. The genres include science, history, adventure and the like. Popular series include Deadliest Catch, MythBusters and Frozen Planet. The targeted audience is 25-54, particularly men and reaches 100 million U.S. households; 314 million international subscribers.

Myth Busters ‘Walking on Water

[8]

TLC

TLC(The Learning Channel) offers globally recognized programming that focuses on unique storytelling. Acquired by Discovery in May of 1991, it has succeeded in becoming the top 10 cable network for women. In 2001, TLC had 28 unique television series, averaging one million viewers per episode. Some of the most popular shows include, Sister Wives, Toddlers & Tiaras, 19 Kids, What Not To Wear and Here Comes Honey Boo Boo. Currently, 99 million U.S. households and 201 million international homes subscribe to TLC.

[9]

[10]

Animal Planet

Animal Planet, launched October 1, 1996, is the only channel to fully immerse viewers in the Animal Kingdom. Viewership has been up 18% since January 2012, bringing in 97 million U.S. and 275 million international subscribers. The target audience reached are adults 25-54. Viewers enjoy television shows like Whale Wars, River Monsters, Fatal Attractions, Finding Bigfoot, Pit Bulls and Parolees and Dogs 101.

[10]

Discovery Famila

Discovery Famila, launched August 2007, garners 4 million U.S subscribers. It introduces educational and entertaining, family-oriented programming to kids and families in the Spanish language. Daytime programming is geared toward preschoolers’ by offering fun and educational Spanish-language content that will preserve their native language. Evenings offer family-friendly series and specials and aspirational lifestyle content for women and families, including programs on cooking, dining, travel, design, beauty, health and parenting.

Newsroom

January 08, 2013 [10]

Successful Holiday Programming Events and Slate of Network Movie Premieres Drive Strong New Year Start for The Hub TV Network

The Hub Network, owned by Discovery, had a solid jumpstart on the New Year. The network introduced a steady flow of holiday marathons, followed by original Hub TV Network original programming. It delivered significant year-over-year audience growth reaching all key target demographics including Kids 2-11 (+63%), Kids 6-11 (+56%), Women 18-49 (+69%), Adults 18-49 (+50%), Persons 2+ (+67%) and Households (+52%).

January 14, 2013 [11]

Discovery Communications Acquires Switchover Media

Discovery acquired 100 percent of Switchover Media, an Italian media company that owns four free-to-air television channels and one pay-TV television channel in Italy. This new deal has made Discovery the third largest broadcaster in Italy in terms of collective audience share. Italy is the leading market for Discovery and key to its growth over the last two years. The acquisition of Switchover Media adds further breadth and scale and also diversifies Discovery’s portfolio to include scripted crime and children’s programming.

March 28, 2013 [12]

Revision3 Launches Robust App for Xbox 360

Revision3, A Discovery Digital Video network, announced the launch of its app for the Xbox 360® video game. Xbox LIVE Gold members in the U.S., Canada and Australia can install the new Revision3 app from the Xbox LIVE® marketplace*. Fans of Revision3 content can now watch their favorite shows. There are thousands of unique shows, including Rev3Games, Film Riot and more. Revision3 allows subscribers to view the content on their television, tablet, game station, phone, or a traditional laptop.

Sources

7. Discovery Channel Logo