Tag Archives: Stock

Cumulus

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By: Kaitlyn Vincent and Cairo Spencer

Cumulus Logo

History

Cumulus was co-founded in 1997 by brothers Lew and John Dickey in Atlanta, Georgia. The company broadcasts local programming as well as sports, syndicated media, entertainment brands and much more. The company has 447 owned-and-operated stations in 90 different US markets. The two platforms of Cumulus includes Cumulus Radio and Westwood One which contribute to massive reach of 245 million listeners per week. [1] 

Similarly, Cumulus is known for the station NASH, which launched in 2013 and is the Nation’s leading provider of country music. In addition to the NASH radio sector, NASH has a country weekly magazine, television, live events and their own record label. Cumulus is now the second largest radio company behind iHeartMedia. [2] [13]

Key Executives 

mary-g-berner

Mary G. Berner – President and Chief Executive Officer

john-abbot

John Abbot – Executive Vice President, Treasurer and Chief Financial Officer

richard-s-denning

Richard S. Denning – Senior VP, Secretary & General Counselor

Affiliates

Cumulus Radio and Westwood One are both syndicated services of Cumulus Media. In 2013, Cumulus acquired Westwood One which focuses on selling syndicated advertisements. Together they have become the exclusive radio broadcast partner to some of the biggest brands in news, entertainment, sports and talk. This includes major sports such as NFL, the NCAA and the Olympics, major events such as the Academy of Country Music Awards, the American Music Awards, the Billboard Music Awards, and even the Grammys. Cumulus has risen to become the nation’s leading provider of country music and lifestyle entertainment through its renowned NASH brand; named for the country music center that is the Nashville, Tennessee brand. NASH caters to country music fans nationwide through the use of radio programming, exclusive digital content, and live events. Cumulus Radio serves a demographically-diverse group across its 90 US markets. [1] 

Cumulus and Westwood One Stations

Management

Cumulus hired Mary Berner, a former CEO of Reader’s Digest Executive, as the new Chief Executive Officer to try and turnaround the company in 2015. Before Mary stepped in, Cumulus’ stocks were dropping tremendously. One of Cumulus’ major shareholders, Crestview Partners, pushed out the founder Lew Dickey as the CEO and replaced him with Mary Berner. Before the turnover, the shares had dropped 80% of their value whereas after the turnover the shares dropped 39% after a couple of months. [8] [13]

In the coming months Mary is striving towards a “multi-year exercise” starting with fixing the operational basics. Secondly, she’ll be working on retaining the employees and improving satisfaction within the company due to a 50% turnover rate in 18 months in the company of 6,000 people. Her final area of concern is the rating decline for the company. [5] 

“This company has lost more than a dollar of revenue for every dollar of expense reduction over the past four years,” she said. “So I’m focused on intelligently managing the cost structure.” – Mary Berner [7] 

Although Cumulus’ headquarters is in Atlanta, Mary Berner is stationed within New York City, within the large market in which its syndicated service Westwood One caters to. According to Mary, there are four challenging feats she is facing with Cumulus which includes inescapable clean-up items from prior years, non-existent investment in systems, annual cost escalation due to the dynamic industry, and major capital investments. [5]

bn-nx115_cumulu_gr_20160505174626

The New Cumulus CEO, Mary Berner

Financial

Cumulus had a low third quarter with a $286.1 million in the quarter. This was down from the $289.4 million in 2015. The low numbers are due to CEO Mary Berner’s adjustment period, the falling rating decline, and the lack of company structure. Recently however, Cumulus is heading into the fourth quarter with a positive stride with a 35.58% increase over the past 5 days. The price target for the company is currently at $5.00. Consequently, the Wall Street analysts recommend a hold recommendation for investors. [5] [8]

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Cumulus Media Equity Stub 2016

Cumulus is consumed in $2.5 billion in debt ever since the former CEO, Dickey Berner bought up several stations and lost Citadel back in 2010. However, a spokesperson disclosed that enough generated operational cash and asset sales will prevent Cumulus from becoming bankrupt and expects to gain $200 million at the end of 2017 from real estate sales. Furthermore, “We have no plans to file for bankruptcy and the next maturity for debt is not for three more years until May of 2019, so we have significant runway to begin to stabilize and ultimately grow the business,” the Cumulus spokesman said. [16]

In terms of trends, as of November 28, the 14-day ADX for Cumulus Media is at 39.28 which indicates a strong trend for investors. However, this number reflects the trend strength but not the direction of the trend. In another technical reading, Cumulus presently has a 14-day Commodity Channel Index of 31.93 which reflects the company’s normal oscillation since the reading is between -100 to +100. This represents how the Cumulus commodities are in a normal range between the overbought and oversold territory. These technical readings further reflect the positive direction for Cumulus entering into the fourth quarter. [6] [7] [12]

Recent Antitrust Lawsuit

Last April, Cumulus was sued for an antitrust suit by Talk Radio Network Enterprises LLC and three other Radio networks for allegedly conspiring with Westwood One, Cumulus’ advertising package bundler. This suit was filed in Oregon due to a group of radio producers claiming that Westwood One and Cumulus were trying to monopolize a national radio that solely benefits the Cumulus station while undermining independent programmers. By conspiring to monopolize, Cumulus Media and Westwood are violating the Sherman Antitrust Act. In addition, these companies are already thwarted due to Cumulus Media controlling 90% of the national syndicated ad bundling market. [9]

In a complex system of advertising bundling, the companies buying advertisements expect a certain amount of trust from Westwood One. These companies have been experiencing a lack of transparency of payment from Westwood. Similarly, Westwood has been accused of paying the companies lower than the deserved amount. However, this month the Oregon judges decided to gut the claim by rejecting half of the allegations based on prejudice. According to an attorney for the group of Radio Networks, they have no intent of stopping the suit. [10]

The Issue

While, Mary is working to solve the company’s problems, the main issue with the company is the large amount of debt it holds. This monetary debt is due to the former purchase of Citadel, a Nevada-based broadcasting holding company and the general decline in Radio revenue due to the amount of music streaming services online. Michael Harrison, a former radio station owner and publisher of RadioInfo agrees: 

“Cumulus is suffering from the tail end effects of the era of consolidation… The biggest problem in the industry, he said, is “smothering debt,” – Michael Harrison [7]

Overview

The biggest question for Cumulus is how to combat the growing online streaming music services and the consolidation of radio amidst their staggering debt and turnover struggles. Cumulus must continue to cut spending and manage to find a solution that will boost revenue through services that can compete as opposed to services that tail behind the forefront of the changing world of radio. In terms of debt handling, the company has until May of 2019 to pay it off which should hopefully be enough time for Berner to stabilize the company.

Works Cited

[1] Cumulus Website. Retrieved: November 28, 2016.

[2] Jackson, Hazel. “Market Rating: Are Analysts Bullish Cumulus Media Inc (NASDAQ:CMLS) After Last Week?” Money Making Articles Hot Stuff. Retrieved: November 21, 2016.

[3] NASH Website. Retrieved: November 28, 2016.

[4] Cumulus Key Executives. Retrieved: November 28, 2016.

[5] “Big Challenges Remain For Radio’s Number Two.” Radio Ink. Streamline Publishing, Inc. Retrieved: November 28, 2016.

[6] Ho, Rodney. “Cumulus Media Drowning in Debt, Stock Slides.” Radio and TV Talk. Cox Media Group. Retrieved: November 29, 2016. 

[7] Grantham, Russell. “Cumulus Media Hit by Debt, Radio Industry Troubles.” Cumulus Media Hit by Debt, Radio Industry Troubles. Cox Media Group. Retrieved: November 29, 2016.

[8] Karp, Hannah. “Cumulus CEO Aims to Revive Radio Broadcaster.” The Wall Street Journal. Dow Jones & Company. Retrieved: November 29, 2016. 

[9] Sege, Adam. “Cumulus Hit With Antitrust Suit Over Advertising Payouts.” Law360. Portfolio Media, Inc. Retrieved: November 29, 2016. 

[10] Koenig, Bryan. “Cumulus Media Gets Advertising Antitrust Suit Gutted.” Law360. Portfolio Media Inc. Retrieved: November 29, 2016. 

[11] Oliveira, Michael Wiggins De. “Cumulus Media: A Highly Speculative Equity Stub.” Seeking Alpha. Retrieved: November 30, 2016.

[12] Weakley, Vanessa. “Looking at the Gauges on Cumulus Media Inc. (CMLS).” Microcap. Retrieved: November 30, 2016.

[13] Atkinson, Claire. “Cumulus Media’s New CEO Can’t Stop Company Slide.” NYPost. Retrieved: November 30, 2016.

[14] “Struggling Cumulus Media Loses its CFO” American City Business Journal. Retrieved: November 30, 2016.

[15] “Organizational Leadership Changes at Cumulus Media” MusicRow. Retrieved: November 30, 2016.

[16] Grantham, Russell. “Radio Giant Cumulus Tumbles After Flying High”. Cox Media Group. Retrieved: November 29, 2016.

Time Warner

Posted on by 
Lizzie Michael and Andrew Maercklein
Time Warner, Inc. logo

Time Warner, Inc. logo [1]

Time Warner, Inc.

One Time Warner Center
New York, NY 10019-8016
212-484-8000

Company

Time Warner, Inc. is an entertainment and media conglomerate whose works and influence reaches all over the world. First created in 1989 in a $14 billion merger between Time, Inc. and Warner Communications, Time Warner now owns magazines such as Time, People, and Sports Illustrated; HBO, The CW, and Cinemax, as well as the Turner Broadcasting System, which in turn holds networks such as TBS, CNN and Cartoon Network; DC Comics; and one of the world’s largest production companies, Warner Brothers Entertainment. [2] [3].

Some of Time Warner's assets. [4]

Some of Time Warner’s assets. [4]

The company has undergone a few trouble spots in the past, including a $164 deal with AOL in the year 2000. [5]. The deal, which eventually proved to be misguided and led to major financial losses in 2002, was said to be “the biggest mistake in corporate history” by current CEO and Chairman Jeff Bewkes. [6]. That being said, Time Warner has since rebouded and is currently enjoying success from several of its assets, including HBO and Warner Brothers, and is looking forward to the completion of an acquisition, with a total transaction value of
$108.7 billion, with AT&T. [7].

Who are some key executives?

Financial information

Time Warner is a publicly traded company on the NYSE under the ticket TWX. As of 11/17/16, their current stock price is $93.20, as compared to one of their primary competitors, Walt Disney Co., who is at $98.82. [9]. On Oct. 27 the company announced cash dividends for Common Stock at $0.4025 per share, with a record date of Nov. 30. and a payment date of Dec. 15. [10] [11]. Thanks in part to the AT&T announcement, Time Warner’s stock has been on the upswing, having increased nearly 22.07% since April 2016; additionally, about 67% of analysts covering Warner’s stock rate this as a good time to buy. [11].

TW revenues and earnings per share [12]

TW revenues and earnings per share [12]

In Warner’s 3rd quarter reports for 2016, total revenues for Turner, HBO, and Warner Broadcasting combined were at more than $7 billion, and there was an increase of $153 million in cash and cash equivalents. [13]. With the recently released Fantastic Beasts and Where to Find Them and HBO’s Westworld recently having success, revenues from ticket sales and merchandising for Time Warner can be expected to increase in 2016’s 4th quarter, and should give the company a strong year-end yield. [14].

Warner Brothers

Warner Bros. Logo [14]

Warner Bros. Logo [15]

Warner Bros., which was founded in 1923 and notably produced the first “talkie” in 1927’s The Jazz Singer, is one of the largest production companies in the world, with both New Line Cinema and DC Films in its toolbox. [16]. In 2015, Warner Bros.’ worldwide box office receipts exceeded $3 billion for the ninth consecutive year ($3.71 billion worldwide), and saw both international and domestic reaching the billions. [17].

[18]

The company houses several major franchises, including the Matrix series, the Harry Potter Franchise, and the world of DC Comics. In 2016 alone, multiple films were released to massive success, including Batman v Superman: Dawn of Justice, Sully, Suicide Squad, and Fantastic Beasts and Where to Find Them. Suicide Squad was in theaters for an impressive 14 weeks and earned more than $700 million worldwide, while Fantastic Beasts has been open for less than two weeks and has already made nearly $500 million. [19] [20].

This success will likely carry into 2017, as Wonder Woman, Justice League, and two more animated Lego movies are all slated for wide release. [21].

Machinima's logo [23].

Machinima’s logo [22]

In news besides its releases, Warner Bros. also recently announced it will acquire Machinima, a “global programming service and production company” with a focus on gamer culture. [23]. The deal, which was estimated to be just slightly under $100 million, will allow Machinima to be its own entity within the Warner Bros. Digital Networks. [24].

HBO

HBO logo [31]

HBO logo [31]

Home Box Office, or HBO, is one of Time Warner’s most successful divisions. In terms of its financial performance, in the 2016 third quarter HBO’s revenues increased 4%, or $59 million, to $1.4 billion due to a 5% increase in subscription revenues. [12].

HBO’s content has gone over incredibly well with viewers. HBO took home 22 Primetime Emmys at the 2016 Emmy Awards, the most of any other network for the 15th year in a row. [12] [29]. Shows such as Veep, Game of Thrones, and Last Night with John Oliver all have loyal fan bases, while newcomer Westworld premiered in October 2016 to more than 13 million viewers. [12].

In other news, HBO just recently launched a new video streaming service in Spain, HBO España, that is expected to very well. The service offers both original HBO content, as well as films and programming from other networks as well, like Disney, Nickelodeon, and other Spanish programming. [30].

AT&T Merger

Click here for AT&T and Time Warner Merger (Video): http://nyti.ms/2exY5SK [27]

AT&T is looking to purchase Time Warner, Inc. in a $85 billion deal, and despite many setbacks, AT&T is confident the deal will go through. [25]. Were the FCC to oversee this deal, the time frame would have been elongated and the deal itself would be much less likely to go into effect. However, it is likely the deal will not be subject to the tight restrictions set by the FCC, as the FCC may be excluded from the process and the decision will be made by the Department of Justice. Randall L. Stephenson, the CEO of AT&T, is very optimistic regarding this scenario and said this deal will satisfy not only those looking for earnings growth, but also investors that are simply searching for income. [27]. However, this deal will cause AT&T to push its debt upwards of $190 billion. [27]. The average user of DirecTV Now will pay $35 per month, which translates to $1.32 gross margin, and despite an apparent lack of funding, there are expected to be approximately 15 million paid subscribers by 2020. [26].

AT&T logo []

AT&T logo [28]

Many investors are skeptical of the deal and doubt the level of success predicted by AT&T. AT&T, being the only company of its competitors to move in this direction, will be able to corner a large section of the market before anyone else. Through securing customers with a low price now, AT&T hopes to attract many more consumers in the future while still being able to raise the price of service as necessary. [26]. Furthermore, AT&T wants to boost their wireless business in an attempt to take back some of the market from other wireless companies. They plan to do this by allowing wireless users to watch DirecTV without using data. This is known as zero-rating and it’s frowned upon by the FCC because it would allow for AT&T to reduce competition, especially among its own assets. [25]. Between the low prices as well as other incentives to switch, AT&T is focused on increasing its consumer following as opposed to generating revenue. Revenue will theoretically be the focus after AT&T has accrued a mass following. In addition, it’s predicted there will be less subscription cancellations as well as a large boost in advertising revenue. [25]. Should the deal be successful, it will be one of the largest to date and will push AT&T further ahead of competitors. Should the deal not be approved, or even fail, AT&T will have to tread very carefully to avoid serious damage to the company’s finances, as well as the integrity of the company.

 [27]

Resources

[1] Time Warner Cables Customer Service Phone Number, Office Address, Toll Free Helpline Support. Retrieved November 27, 2016. http://www.officeaddresshelplinenumber.com/time-warner-cables-customer-service-phone-number-office-address-toll-free-helpline-support/

[2] The Creator of Time Warner, Steven J. Ross, Is Dead at 65. Retrieved November 27, 2016. http://www.nytimes.com/1992/12/21/obituaries/the-creator-of-time-warner-steven-j-ross-is-dead-at-65.html

[3] Top 3 Companies Owned By Time Warner (TWX). Retrieved November 27, 2016. http://www.investopedia.com/articles/markets/102215/top-3-companies-owned-time-warner.asp

[4] Company Profile. Retrieved November 27, 2016. http://www.timewarner.com/company

[5] Statistics on Mergers. Retrieved November 27, 2016. https://web.archive.org/web/20120106045040/http://www.imaa-institute.org/statistics-mergers-acquisitions.html

[6] AOL merger was ‘the biggest mistake in corporate history’, believes Time Warner chief Jeff Bewkes. Retrieved November 27, 2016. http://www.telegraph.co.uk/finance/newsbysector/mediatechnologyandtelecoms/media/8031227/AOL-merger-was-the-biggest-mistake-in-corporate-history-believes-Time-Warner-chief-Jeff-Bewkes.html

[7] AT&T to Acquire Time Warner. Retrieved November 27, 2016. http://about.att.com/story/att_to_acquire_time_warner.html

[8] Senior Corporate Executives. Retrieved November 27, 2016. http://www.timewarner.com/company/management/senior-corporate-executives

[9] TWX: NY. Retrieved November 27, 2016. https://www.bloomberg.com/quote/TWX:US

[10] Time Warner Declares Regular Quarterly Cash Dividend. Retrieved November 27, 2016. http://www.timewarner.com/newsroom/press-releases/2016/10/27/time-warner-declares-regular-quarterly-cash-dividend

[11] Dividend Action: Time Warner Inc. (NYSE:TWX) advises to “Mark your calendars” for Dec 15, 2016; dividends expected to reach $0.40. Retrieved November 27, 2016. http://friscofastball.com/2016/11/27/dividend-action-time-warner-inc-nysetwx-advises-to-mark-your-calendars-for-dec-15-2016-dividends-expected-to-reach-0-40/

[12] Time Warner Inc. Revenue & Earnings Per Share (EPS). Retrieved November 27, 2016. http://www.nasdaq.com/symbol/twx/revenue-eps

[13] Earnings Releases & Related Materials. Retrieved November 27, 2016. http://ir.timewarner.com/phoenix.zhtml?c=70972&p=quarterlyearnings

[14] Weekend Box Office: November 25-27, 2016. Retrieved November 27, 2016. http://www.boxofficemojo.com/weekend/chart/

[15] Warner Bros. Logo Design Evolution. Retrieved November 28, 2016. http://annyas.com/screenshots/warner-bros-logo/

[16] Warner Bros. Entertainment Inc. Retrieved November 28, 2016. http://www.warnerbros.com/studio/divisions/warner-bros-entertainment-inc

[17] Warner Bros. Pictures. Retrieved November 28, 2016. http://www.warnerbros.com/studio/divisions/warner-bros-pictures

[18] Fantastic Beasts and Where to Find Them – Final Trailer [HD]. Retrieved November 28, 2016. https://www.youtube.com/watch?v=Vso5o11LuGU

[19] Box Office Mojo: Suicide Squad. Retrieved November 28, 2016. http://www.boxofficemojo.com/movies/?id=dc2016.htm

[20] Box Office Mojo: Fantastic Beasts and Where to Find Them. Retrieved November 28, 2016. http://www.boxofficemojo.com/movies/?id=fantasticbeasts.htm

[21] Warner Bros., Quietly Thriving, Recasts Its Own Story. Retrieved November 28, 2016. http://www.nytimes.com/2016/11/08/business/media/warner-bros-quietly-thriving-recasts-its-own-story.html

[22] Machinima. Retrieved November 28, 2016. http://www.machinima.com/

[23] Warner Bros. Entertainment to Acquire Machinima. Retrieved November 28, 2016.  http://www.warnerbros.com/studio/news/warner-bros-entertainment-acquire-machinima

[24] Warner Bros. Acquires Full Control of Machinima. Retrieved November 28, 2016. http://variety.com/2016/digital/news/warner-bros-acquires-machinima-1201920793/

[25] McAlone, Nathan. “Here’s Why AT&T Is Buying Time Warner, and Why It Thinks the Government Can’t Stop the Sale.” Business Insider. Business Insider, Inc, 15 Nov. 2016. Web. 28 Nov. 2016. http://www.businessinsider.com/att-time-warner-merger-government-regulation-2016-11

[26] Molla, Rani, and Shira Ovide. “AT&T Plays It Forward.” Bloomberg.com. Bloomberg, 23 Nov. 2016. Web. 28 Nov. 2016. https://www.bloomberg.com/gadfly/articles/2016-11-23/at-t-wants-digital-video-share-with-direct-tv-now

[27] Morgenson, Gretchen. “The AT&T-Time Warner Merger: A Match Built on Hope.” The New York Times. The New York Times, 28 Oct. 2016. Web. 28 Nov. 2016.  http://www.nytimes.com/2016/10/30/business/the-att-time-warner-merger-a-match-built-on-hope.html?_r=0

[28] LLC, UnderConsideration. “Reviewed.” Brand New: New Logo and Identity for AT&T by Interbrand. N.p., n.d. Web. 28 Nov. 2016.  http://www.underconsideration.com/brandnew/archives/new_logo_and_identity_for_att_by_interbrand.php#.WDyz-6IrL_Q

[29] How FX Broke HBO’s Grip on the Emmy Awards. Retrieved November 28, 2016. http://fortune.com/2016/09/19/emmy-awards-2016-hbo-fx/

[30] HBO Launches in Spain, Adds Content from Disney, Nickelodeon. Retrieved November 28, 2016. http://variety.com/2016/biz/global/hbo-espana-spain-disney-nickelodeon1201927778-1201927778/

[31] HBO Logos. Retrieved November 28, 2016. https://www.homeboxoffice.com/lodging/cmp/logos.html

Time Warner (TV/Cable channels only)

Posted on by 
by JESSE KATZENSTEIN
Time Warner Inc. Logo

[1]

Time Warner Inc.
One Time Warner Center
New York, NY 10019-8016
212-484-8000
www.timewarner.com
[2]

About

Time Warner Inc. is one of the largest media corporations in the United States, specializing in TV, film, and entertainment.  Its operating divisions consist of Turner Broadcasting System, Home Box Office Inc., and Warner Bros. Entertainment. [3]

Executives

Chairman and CEO – Jeff Bewkes

[4]

[4]

EVP and CFO – Howard M. Averill

Howard M. Averill Executive Vice President and CFO

[5]

EVP and General Counsel – Paul T. Cappuccio

Paul T. Cappuccio, Executive Vice President and General Counsel

[6]

Financials and Company Plans

Time Warner is a publicly traded company.  In 2014, their revenue grew to $27.36 billion, which is up 3% from their 2013 annual revenue of $26.46 billion. [7]  In the release of Time Warner’s Full Year 2014 Financial Results, Time Warner stated that their fourth quarter revenues decreased by 1% to $7.5 billion and can be attributable to a decrease in income from Warner Bros.  It was also stated that Home Box Office Inc., or HBO, and Turner Broadcasting Company were responsible for counterbalancing an even larger decrease in revenue. [8]

In a story released by Bloomberg.com, it was said that CBS Corp. was thinking of a merger deal with Time Warner.  CEO of CBS Corp., Leslie Moonves, is said to have mentioned the idea to CEO Jeff Bewkes in meetings between the two companies last year. [9]  Critics claim this merger would benefit both companies regarding their position in sports broadcasting, and this powerful advantage would make this powerhouse “a good alternative for ESPN.” [10]  However, Jeff Bewkes seems to be satisfied with keeping Time Warner and CBS separate.

Lulegacy.com released an article on April 16th revealing the results of 30 ratings firms who have been analyzing Time Warner’s stock.  The average stock price target came out to $91.71.  A little over two-thirds of the analysts put a “Buy” recommendation on the stock, while just 9 of the analysts gave the stock a “Hold” recommendation. [11]

HBO

HBO

[12]

According to Time Warner’s company website, HBO is the top domestic premium pay television service in the United States.  This service offers both HBO programming and Cinemax programming. [13]  HBO is known for its original television series such as Game Of Thrones, Girls, True Detective, and Silicon Valley. [14]  Cinemax is known for its original television series such as The Knick, Banshee, and Strike Back. [15]  Both services also offer programming of movies released theatrically.  HBO’s most popular and successful show, Game Of Thrones, has won Primetime Emmy Awards in every year of its existence. [16]  Its fifth and most current season debuted on April 12th of this year, but was subject to many news stories when almost half of the season was linked on illegal websites all over the world.  Jeff Bewkes’ comments were surprisingly optimistic when he explained that these leaks can offset some paid advertising, and joked about how distributing the most pirated show in the world is “better than an Emmy.” [17]

On April 7th, Time Warner announced that HBO NOW is now available to Apple and Optimum Online customers.  HBO NOW is HBO’s streaming service where consumers can stream all available episodes from their favorite HBO shows on all compatible devices.  The service costs $14.99 per month, but if consumers purchase the service in the month of April, they are granted with a 30-day free trial. [18]

Turner Broadcasting System

turner_blue_r

[19]

Turner Broadcasting system controls and manages some of the leading television networks in the country.  These networks cover programming in entertainment, news, sports, and animation, among other television genres.  Turner’s networks TNT and TBS are most notably known for their broadcasting of major sporting events such as the NBA Playoffs and the NCAA College Basketball Tournament. [20]

TNT and TBS both had a huge turnout this year during the NCAA tournament.  Time Warner released a statement on March 29th stating that the Kentucky vs. Notre Dame broke the record for the most-viewed and highest-rated college basketball game in cable TV history.  As of that day, total viewership was up 2% from the previous year. [21]  A little over a week later, the semifinal game between Kentucky and Wisconsin broke one of those records; the most-viewed college basketball game in cable TV history.  Total audience for the Final Four across all networks (TBS, TNT, truTV) attained 41.7 million viewers, a 24% increase from 2014. [22]

As for original content, Turner delivers the #1 comedy with adults 18-49 in The Big Bang Theory (TBS), and delivers the #1 original animated series in Mr. Pickles and Squidbillies (Adult Swim).  For kids, Cartoon Network is the leading channel that holds “49 of basic cable’s top 50 telecasts for young boys.”  Turner recently announced a revamp of the Cartoon Network live streaming app in Australia called Cartoon Network Watch and Play. [23]

In the news genre, CNN is Turner’s premier news network.  It is one of the first 24-hour news networks that provides breaking news across all media platforms.  Its popular programs include Anderson Cooper 360, Newsroom, Situation Room, and State of the Union. [24]

Warner Bros. Entertainment

WarnerBroslogo.300dpi

[25]

Warner Bros. Entertainment is a studio responsible for Time Warner’s influence in the TV, film, and home entertainment industries, as well as being a global distribution company. [26]  For it’s work in film, 2014 became the 14th consecutive year Warner Bros. Picture Groups grossed $1 billion or more at both the domestic and international box office. [27]  It has also done what no other studio has done, which is gross over $3 billion at the international box office for two consecutive years.  On March 30th, Warner Bros. reported their new agreement with Redbox, a company that provides self-service kiosks for consumers to purchase movies and video games on various platforms.  There are 35,000 kiosks across the country.  This two-year agreement leaves a 28-day window for consumers to purchase Warner Bros. films on Blu-ray and DVD. [28]

The Future for Time Warner 

The future may or may not be bright for Time Warner.  At this point in the year, their action plan should be to play the waiting game and see how all of their assets perform.  There are high hopes for the current season of Game Of Thrones despite the leaking scandal.  Warner Bros. has an exciting lineup of movies coming out in late spring/early summer including The Water Diviner, Pan, Magic Mike XXL, and San Andreas.

Sources

[1] – Time Warner Logo, Retrieved, April 17, 2015

[2] – Time Warner Contact Info, Retrieved, April 17, 2015

[3] – Time Warner Inc. Company Page, Retrieved, April 17, 2015

[4] – Jeff Bewkes Bio Page, Retrieved, April 17, 2015

[5] – Howard M. Averill Bio Page, Retrieved, April 17, 2015

[6] – Paul T. Cappuccio Bio Page, Retrieved, April 17, 2015

[7] – Time Warner Annual Earnings, Retrieved, April 17, 2015

[8] – Time Warner Q4/Full Year 2014 Results, Retrieved, April 17, 2015

[9] – “Moonves Said To Have Mulled Time Warner Deal As CBS Plots,” Bloomberg Business, Retrieved, April 17, 2015

[10] – “Karmazin: CBS and Time Warner Inc. Need To Merge,” Fierce Cable, Retrieved, April 17, 2015

[11] – “Time Warner Recieves $91.71 Consensus Price Target From Brokerages,” The Legacy, Retrieved, April 17, 2015

[12] – HBO Logo, Retrieved, April 17, 2015

[13] – HBO Company Page, Retrieved, April 17, 2015

[14] – HBO Website, Retrieved, April 17, 2015

[15] – Cinemax Website, Retrieved, April 17, 2015

[16] – Game Of Thrones Awards List, IMDb, Retrieved, April 17, 2015

[17] – “Game Of Thrones Season 5 Premiere Set Rating Record Despite Episode Leak,” Forbes, Retrieved, April 17, 2015

[18] – HBO NOW Press Release, Retrieved, April 17, 2015

[19] – Turner Broadcasting System Logo, Retrieved, April 17, 2015

[20] – Turner Broadcasting System Company Page, Retrieved, April 17, 2015

[21] – “2015 NCAA Scores Highest Average Viewership in 22 Years,” Time Warner, Retrieved, April 17, 2015

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[23] – “Cartoon Network Activates Live Streaming App,” Time Warner, Retrieved, April 17, 2015

[24] – List of CNN TV Shows, Retrieved, April 17, 2015

[25] – Warner Bros. Entertainment Logo, Retrieved, April 17, 2015

[26] – Warner Bros. Entertainment Company Website, Retrieved, April 17, 2015

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DirectTV

Posted on by 
by Nick Sabatino
Photo courtesy of www.interpretllc.com

Photo courtesy of www.interpretllc.com [1]

Contact Information

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

Executives

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

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

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

About

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

DirecTV's Genie: HD DVR Photo courtesy of www.directv.com

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

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

Financials

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

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

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

AT&T Merger

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

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

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

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

International Expansion

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

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

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

Raycom Media

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

Original Programming and What to Expect in the Future

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

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

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

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

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

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

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

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

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

Sources

[1] DirecTV Logo. Interpret. RT: 4/30/14

[2] DirecTV Headquarters. eCorporateOffices.com. RT: 4/30/14

[3] Corporate Governance: Elected Officers. Investor.directv.com. RT: 4/30/14

[4] Michael White. Investor.directv.com. RT: 4/30/14

[5] DirecTV Genie. DirecTV.com. RT: 4/30/14

[6] DirecTV Genie. DirecTV.com. RT: 4/30/14

[7] DirecTV vs. Cable. DirecTV.com. RT: 4/30/14

[8] DirecTV 2013 Annual Report. Investor.directv.com. RT: 4/30/14

[9] Stock Quote and Chart. Investor.directv.com. RT: 4/30/14

[10] Stock Quote and Chart. Investor.directv.com. RT: 4/30/14

[11] “DirecTV CEO Expects Feds to OK AT&T Merger”. BostonHerald.com. RT: 4/30/14

[12] “3 Reasons DirecTV’s Stock Could Fall”. Fool.com. RT: 4/30/14

[13] “AT&T Agrees to Buy DirecTV in $45.8B Deal”. AccessNorthGa.com. RT: 4/30/14

[14] Company Profile. DirecTV.com. RT: 4/30/14

[15] DirecTV 2013 Annual Report. Investor.directv.com. RT: 4/30/14

[16] “DirecTV Adds Another 600,000 Latin American Users in Q1”. Gigaom.com. RT: 4/30/14

[17] “Raycom Media Restores 43 Local Stations to DirecTV Homes”. News.directv.com. RT: 4/30/14

[18] “Raycom Media Reaches Agreement In Principle With DirecTV”. RaycomMedia.com. RT: 4/30/14

[19] “DirecTV tries to join Netflix, Hulu With New Original Series Kingdom: Can They Compete?”. SheKnows.com. RT: 4/30/14

[20] “Stepping Into the Cage with Kingdom‘s Jonathan Tucker”. News.directv.com. RT: 4/30/14

[21] Kingdom Poster. DirecTV.com. RT: 4/30/14

[22] “DogTV Commercial – Been There Done That – Part 2”. Youtube.com. RT: 4/30/14

[23] “How DirecTV is Capitalizing On Growth of Fantasy Football”. Forbes.com. RT: 4/30/14

[24] “AMC Sounds Alarm About DirecTV Tussle During ‘Walking Dead’ Episode”. Variety.com. RT: 4/30/14

[25] “Don’t Let AMC Scare You!”. directvpromise.com. RT: 4/30/14