Disney

Link

Emma Lipstone and Susy Solino

[1] The Walt Disney Company Logo

The Walt Disney Company

500 South Buena Vista St.
Burbank, CA 91521

Website: thewaltdisneycompany.com
Phone Number: (818) 560 – 1000

Company

The Walt Disney Company was founded on October 16, 1923 by Walter Elias Disney and is headquartered in Burbank, CA. The Company is one of the biggest media and entertainment corporations in the world. [2]. Walt Disney Studios is home to the four major film studios: Walt Disney Animation Studios, Pixar Animation Studios, Marvel Studios, and Lucasfilm Ltd. The Walt Disney Company also owns and operates Walt Disney Studios Motion Pictures, Disney Music Group, Disney Theatrical Group, DisneyToon Studios, Touchstone Pictures, and DisneyNature. [3].

Disney’s animation studio has produced around fifty-five animated feature films, with the fifty-sixth being Moana that was just recently released. Pixar has produced seventeen films; the most recent being Finding Dory. In 2009, Disney purchased Marvel Studios and has since produced multiple movies based off of Marvel comic book characters including: The Avengers, X-Men, Spider-Man, and Guardians of the Galaxy. Most recently in 2012, Disney acquired Lucasfilm Ltd. which is the studio best known for creating the Star Wars and Indiana Jones franchises.

In addition to popular film franchises, Walt Disney Company owns and operates many television channels that produce popular television series’. The biggest subsidiary under Disney Media Networks is ABC, which produces hit network shows such as Scandal and How to Get Away with Murder. [5]. Disney also owns ESPN and operates A&E Networks in a joint venture with Hearst Corporation, along with a portion of Hulu.

[9] Some of The Walt Disney Company Conglomerates

Financials

The Walt Disney Company (NYSE: DIS) stock has been declining in the past few quarters.

According to the earnings report released on November 10, 2016, operating income at Cable Networks decreased $207 million to $1.4 billion for the quarter due to decreases at ESPN and the Disney Channels. [6].

ESPN has been losing subscribers to online streaming, such as Netflix or over-the-top streaming services. Also, social media has provided access to a lot of breaking news and sports live broadcasting, luring viewers away from cable television. One of the biggest issues facing ESPN and The Walt Disney Company is that the sports cable network has already paid huge rights fees for the next 5 years, yet subscribers are only paying $8 a month to cover the games, which will not exist in a few years. The increase in programming and production costs were due to The Olympics programming internationally, the World Cup of Hockey rights, and higher contractual rates for college sports. [7].

However, the growth at Freeform, which is the old ABC Family, has been very successful this quarter due to lower programming and production costs, as well as a decrease in marketing expenses. These were driven by fewer hours of original scripted programming in the current quarter.

[33] Disney stock prices for last 2 years

Key Executives

[8] Robert A. Iger: Chairman and Chief Executive Officer

[8] Alan N. Braverman: Senior Executive Vice President

[8] Christine M. McCarthy: Senior Executive Vice President and Chief Financial Officer

[8] Zenia Mucha: Executive Vice President and Chief Communications Officer

[8] Jayne Parker: Executive Vice President and Chief Human Resources Officer

Box Office Reports

[12] Movie poster for “Captain America: Civil War” (2016)

2016 was announced as The Walt Disney Company’s most successful International Box Office record to date, reporting over $3.56 Billion through October 16th in just international sales, surpassing their 2015 general record of $3.56 Billion. [10]. This was due to a powerhouse series of releases throughout 2016, beginning with the summer blockbuster Captain America: Civil War which brought in 1.15 Billion worldwide viewers, $745 million Internationally and was named the No. 1 film of the year internationally and globally. [11].

[14] Movie poster for “Zootopia” (2016)

The animated release of Zootopia also helped spike Disney’s international numbers as it was named the biggest animated film to ever be released in China and brought in $682.3 million internationally. Elsewhere in the studio, 2016’s surprise remake of The Jungle Book also experienced a successful release, bringing in $602.3 million internationally as well as the title of “Top Western Film of all Time” in India and the No. 3 film of the year overseas. [13]. Furthermore, while being in the box office for nearly 16 weeks, Finding Dory managed to break records and pass the billion dollar global box office line by bringing in $484.8 million domestically and $519.9 million internationally, making it Pixar’s second billion dollar release and earning a rank as the 5th biggest animated film of all time, globally. [15].

As though breaking international box office records was not enough, Disney also managed to set new industry records for reaching $2 billion domestic (July 16th) and $5 billion global (July 10). As well as earned three new spots in the Hall of Fame for domestic box offices with Finding Dory, Captain America: Civil War, and Zootopia. All of this success comes with still two-and-a-half months and three major releases remaining in their calendar year. [16].

Dory, the star of “Finding Dory” (2016), now the fifth highest grossing animated film of all time. [17]

Recent and Future Releases

[18] Movie poster for Marvel’s “Doctor Strange” (2016)

Marvel Studio’s Doctor Strange represents another large victory for The Walt Disney Company’s Marvel unit, even on the heels of the overwhelming success of Captain America: Civil War.

Doctor Strange was projected to collect anywhere from $65 million to $75 million in ticket sales from the United States and Canada through opening weekend, positively surprising analysts and bringing in $85 million and the #1 rank instead. Since its release, Doctor Strange has made over $200 million domestically and over $400 million internationally, crossing $600 million worldwide in under 4 weeks. [19].

Moana, who was scheduled for a holiday release, has surpassed the high expectations set by Doctor Strange, bringing in over $81 million domestically throughout its opening weekend. [20].

[22] Movie poster for “Moana” (2016)

Further down the line, fans eagerly await the release of Star Wars: Rogue One. As well as Disney’s live action remake of Beauty and the Beast and the recently announced remakes of Mulan and Snow White. All of which are predicted to be box-office heavy hitters. [21].

[23].

Diversity

videothumbnail_elanaofavalor_teaser_02_ce1b790c

[24] Elena of Avalor, Disney’s first Latina princess.

In light of a growing diverse culture and need for representation in the film industry, Disney had begun fighting back against claims of their white-washing tactics and ill representation in their films by allowing more diverse roles in their characters and plots.

[25] Moana, Disney’s first Polynesian heroine.

This year’s recently released Moana revolves around Tahitian and Pacific Islander culture and will be the first Disney film every to be translated into the Tahitian language. [26]. Furthermore, Disney introduced the world to their first Latina princess earlier in the year with the release of their television series Elena of Avalor, a Disney Channel show revolving around latin customs and characters [27] further proving the Company’s desire to focus on promoting more representation of diversity through their media. In addition to their animated strikes towards representation, Disney has announced their search for Chinese actors to star in the upcoming Mulan remake. [28].

jungle-book-to-mulan-all-the-live-action-disney-movies-in-the-works-right-now

[29] Movie poster for Disney’s upcoming live action remake of “Mulan,” featuring a Chinese actress.

Future Integration

In addition to divulging into a more diverse space, Disney has also shown interested in expanding into a more digital and web space with their media. In September 2016, Disney began showing signs of interest for acquiring the social media giant, Twitter Inc., going as far as to work with advisors to put together a potential bid for the company. [30]. While eventually deciding to go against the deal for image reasons, as the social network is known for its reputation of bullying and harassment, the interest in social media gives clear insight that Disney has begun exploring new digital horizons. [31]. Many analysts have taken note of Disney’s interest to expand digitally and predict that the streaming giant, Netflix, might be next on the company’s list of potential assets. [32].

Bibliography

Walt Disney Company Logo. Retrieved November 1, 2016. http://logok.org/disney-logo/
Walt Disney History. Retrieved November 1, 2016. https://d23.com/disney-history
The Walt Disney Company. Retrieved November 1, 2016 https://thewaltdisneycompany.com/about/#our-businesses
Box Office Reports. Retrieved October 28, 2016. boxofficemojo.com
Johnson, Madeleine. June 16, 2016. Your Complete Guide to All the Things Owned by Disney. Retrieved November 21, 2016. https://www.zacks.com/stock/news/220682/your-complete-guide-to-all-the-things-owned-by-disney
November 10, 2016. The Walt Disney Company Reports Fourth Quarter and Full Year Earnings for Fiscal 2016. Retrieved November 11, 2016. https://ditm-twdc-us.storage.googleapis.com/q4-fy16-earnings.pdf
October 31, 2016. Disney: ESPN Still has a Big Problem. Retrieved November 2, 2016. http://seekingalpha.com/article/4017145-disney-espn-still-big-problem
The Walt Disney Company About. Retrieved November 1, 2016. https://thewaltdisneycompany.com/about/
The Walt Disney Company. Retrieved November 2, 2016. https://storify.com/LA346TeamDisney/the-walt-disney-company
McNary, Dave. October 17, 2016. ‘Captain America: Civil War,’ ‘Finding Dory’ Push Disney to International Box Office Record. Retrieved October 18, 2016. https://variety.com/2016/film/news/captain-america-civil-war-finding-dory-disney-box-office-record-1201891155/
Tartaglione, Nancy. October 17, 2016. Finding Money: Disney Tops Full-Year Intl Box Office Record with $3.56B+ (So Far). Retrieved October 18, 2016. http://deadline.com/2016/10/walt-disney-studios-all-time-international-box-office-record-captain-america-zootopia-1201837655/
Freeman, Molly. November 25, 2016. Captain America: Civil War Character Posters- Superhero Fight Time. Retrieved November 27, 2016. http://screenrant.com/captain-america-3-civil-war-posters-iron-man/
Laughing Place Disney Newsdesk. October 17, 2016. 2016 International Box Office is Disney’s Best Year Ever. Retrieved October 19, 2016. http://www.laughingplace.com/w/news/2016/10/17/2016-international-box-office-disneys-best-year-ever/
Disney Zootopia. Retrieved November 10, 2016. http://movies.disney.com/zootopia
October 10, 2016. “Finding Dory” Keeps Swimming to $1 Billion. Retrieved October 20, 2016. https://thewaltdisneycompany.com/finding-dory-keeps-swimming-1-billion/
Derisz, Ricky. October 18, 2016. ‘Captain America: Civil War’ Helps Disney Break its Own $3 Billion International Box Office Record…With More to Come. Retrieved October 19, 2016. http://moviepilot.com/p/captain-america-civil-war-disney-box-office-record/4127909
Disney Movies: Finding Dory. Retrieved November 21, 2016. http://movies.disney.co.uk/finding-dory
CS. April 4, 2016. Doctor Strange Filming Wraps as Mads Mikkelsen’s Villain is Revealed. Retrieved November 15, 2016. http://www.comingsoon.net/movies/news/673101-doctor-strange-filming-wraps-as-mads-mikkelsens-villain-is-revealed#/slide/1
Faughnder, Ryan. November 1, 2016. ‘Doctor Strange’ is Expected to Draw a Massive Audience for Disney’s Marvel Studios. Retrieved November 2, 2016. http://www.latimes.com/entertainment/envelope/cotown/la-fi-ct-movie-projector-20161031-story.html
The Associated Press. November 27, 2016. ‘Moana’ Wins Box Office with Huge Opening Weekend. Retrieved November 27, 2016. http://www.nydailynews.com/entertainment/movies/moana-wins-box-office-huge-opening-weekend-article-1.2888989
Acuna, Kirsten and Phillips, Ian. October 26, 2016. Disney Announced all its Movies Coming in the Next 4 Years – Here’s What you have to Look Forward to. Retrieved October 28, 2016. http://www.thisisinsider.com/disney-movie-schedule-2016-to-2019-2016-10/#strange-cumberbatch-will-play-a-surgeon-who-injures-his-hands-severely-in-accident-2
Disney Moana. Retrieved November 25, 2016. http://movies.disney.com/moana
May 23, 2016. Beauty and the Beast Official US Teaser Trailer. Retrieved November 15, 2016. https://www.youtube.com/watch?v=c38r-SAnTWM
Ranere, Dianna. August 12, 2016. Disney’s Elena of Avalor Renewed for 2nd Season #ElenaOfAvalor. Retrieved October 28, 2016. http://www.fsm-media.com/disneys-elena-avalor-renewed/
Lodi, Marie. July 1, 2016. Why People are Upset About this Character’s Weight in Disney’s New Movie “Moana”. Retrieved November 10, 2016. http://hellogiggles.com/moana-maui-people-angry-obese-stereotype/
October 25, 2016. Walt Disney Animation Studios’ “Moana” to be First Film Ever Translated into the Tahitian Language. Retrieved October 26, 2016. https://thewaltdisneycompany.com/moana-first-film-translated-tahitian-language/
Hughes, Ruth. October 16, 2016. Teen Spirit: Meet the new Plucky Disney Princess Elena of Avalor. Retrieved October 17, 2016. http://www.express.co.uk/life-style/life/720813/Disney-Channel-Elena-Of-Avalor-princess
Biek, Katherine. October 5, 2016. Disney Seeks Chinese Actress for ‘Mulan’ Remake. Retrieved November 20, 2016. http://www.whio.com/news/national/disney-seeks-chinese-actress-for-mulan-remake/fG3AO2Pqefhu4NVlI8ycfI/
Edwards, Ally. October 16, 2016. Jungle Book to Mulan: All the Live Action Disney Movies in The Works Right Now. Retrieved October 17, 2016. http://moviepilot.com/posts/3590427
Roettgers, Janko. September 26, 2016. Disney is Looking into Buying Twitter (Report). Retrieved October 20, 2016. http://variety.com/2016/digital/news/disney-twitter-acquisition-possible-1201870392/
New Statesman. October 18, 2016. Disney Didn’t Buy Twitter- Partly because it Can’t Master the Bare Necessities. Retrieved October 19, 2016. http://www.newstatesman.com/science-tech/social-media/2016/10/disney-didn-t-buy-twitter-partly-because-it-cant-master-bare
Williams, Trey. October 5, 2016. Netflix Said to be in Disney’s Crosshairs, and Analysts see a Streaming Rationale. Retrieved October 21, 2016. http://www.marketwatch.com/story/disney-remains-center-of-merger-talk-this-time-its-netflix-2016-10-03
The Walt Disney Company (DIS). Retrieved November 20, 2016. https://finance.yahoo.com/quote/DIS?p=DIS

Disney

Posted on October 16, 2016 by jlrose

by JACK ROSE, AUDREY LEW, and BRITTANY ORTIZ

Disney Logo [1]

Background

Disney is a leading producer, owner, and distributor of media that owns, among many other things, broadcast network ABC; movie studios Pixar, Walt Disney Animation, Marvel, and Lucasfilm; Walt Disney Parks and Resorts that attracted nearly 150 million people in 2015 [2]; and cable sports network ESPN [3]. Between ABC, its affiliates, and ESPN, Disney operates more than 300 channels worldwide, while its movie studios own the rights to The Avengers family and Star Wars [4]. The last Star Wars release became the highest grossing domestic film earlier this year and with another releasing this December, the company’s film division remains strong [5]. However, fluctuating results on the television side have led Disney to invest in new technologies and a desire to expand international reach birthed a new theme park in China, which opened earlier this year.

Corporate Structure

CEO Bob Iger [1]

Disney’s Chief Executive since 2005, Bob Iger helmed the acquisitions of Pixar, Marvel, and Lucasfilm. Since Iger’s promotion from Chief Operating Officer, Disney’s stock price has risen more than $70 while it’s TV division has come to account for half of the company’s profit [6]. Nearing the end of his career, Iger has repeatedly delayed his retirement and most recently set 2018 as the expiration date for his own tenure. His last task will be selecting his successor, after a recent candidate failed to last as heir.

Disney’s Organizational Chart [7]

Beyond Iger, various chairmen run each of Disney’s major compartments and the company’s board of directors is comprised of 11 members. However, it is this organizational chart, distributed by Walt Disney Studios in 1943, that largely explains Disney’s management philosophy [7]. Rather than the typical hierarchy, the chart displays an interlocking web of managers, producers, and creators that are needed to produce a film. This organization is intended to encourage creativity and teamwork by emphasizing collaboration rather than chain of command. Each role supports, instead of merely instructing, another.

Financials

Annual revenue, profit, and net income have increased yearly since at least 2013, as has Disney’s valuation of its assets and balance sheet as whole. Disney’s revenue dwarfs that of most of its competitors in media, exceeded only by Sony and other conglomerates that produce and own as much content as Sony and Disney. Disney’s stock price is similarly higher than most competitors, currently hovering around $100 [8]. The company’s price per share seems to be inextricably linked to the success of ESPN, which is struggling with subscriber losses and adapting to the future (see “Investments in Technology” section below).

Disney’s Stock Price for last two years [8]

Investments in Technology

MLB Advanced Media Logo [11]

Disney’s future focus is in technology as it attempts to revitalize ESPN and stay on the cutting edge of content creation and media. Primarily, in August the company invested $1 billion for a 33% stake in Major League Baseball’s BAMTech, a leading television streaming company. The deal included an option for Disney to take a majority stake in the company down the road. The first collaboration between the two will be BAMTech’s creation of a standalone streaming service for ESPN, which Disney hopes will help ease the network’s subscriber losses and struggling ratings. BAMTech adds 7.5 million paid subscribers across a multitude of streaming platforms to Disney’s already massive user base [9]. The investment in BAMTech isn’t completely black and white, however. Television’s trend toward skinny bundles complicates the relationship between every content producer and cable provider, with Sling, DirecTV, Hulu, and more getting into the live over-the-top business. Disney’s BAMTech investment suggests a possibility that Disney itself could run a direct-to-consumer cable distributor itself [10].

Throughout this year, rumors swirled about the possibility of Disney purchasing Snapchat, Twitter, and/or Netflix, though analysts agree: none of these are likely. Twitter’s struggle to remain profitable and stabilize its stock price creates nonstop purchase rumors, but it seems that Disney doesn’t stand to benefit much from a Twitter acquisition [11]. Snapchat has proved to be a unique outlet for Disney’s content, but doesn’t seem to be a likely purchase for the social media company [12]. Though the investment in BAMTech signifies Disney’s interest in streaming, Netflix doesn’t appear to be a perfect partner, either. Netflix’s dominance in the streaming market has waned as challengers such as Amazon and Apple have stolen subscribers [13].

Box Office

Star Wars Moana banner [17]

After the November 23 release of Moana, Disney is nearing $2.5B in total domestic box office gross for 2016 [14]. With the top four grossing films of 2016 thus far (Finding Dory, Captain America: Civil War, The Jungle Book, and Zootopia), the company topped $6B in worldwide box office gross for the first time in its history [15]. This new record will only increase as Moana and Doctor Strange continue to screen and Disney’s final 2016 film releases: the newest film, Rogue One. Beyond the box office, movies like Star Wars, Finding Dory, and Moana provide massive profits in merchandising, both in America and abroad. In 2013, Disney merchandise sales brought in over $40B.

Theme Parks

On June 16, Disney’s fourth international theme park opened in Shanghai, with the tagline “authentically Disney, distinctly Chinese” [16]. The company avoided western branding and symbols by changing street names within the park and by filling the concessions with 70% Chinese food. Traditional Disney characters can be seen wearing traditionally Chinese silk costumes and speaking the native language. The Shanghai Disney Resort seeks to take advantage of the massive potential offered by China and the wider Asian market.

Shanghai Disney Resort [18]

Conclusion

Despite Disney’s losses in television, its massive successes at the box office in 2016 have made up for it. The control of Star Wars, Marvel, and Pixar promises success in the motion pictures department nearly every year. Further, Disney’s land holdings of theme parks underscore the company’s finances with physical propoerty–while most media conglomerates own intellectual property, Disney holds more tangible assets as well. The company’s investments in technology put it in a good place for the future–its theme parks’ MagicBands have already proven successful. But while the company must hope these investments pay off, it also faces the uncertain future of navigating an evolving marketplace with a new CEO. Iger’s selection of his successor is by far the most important storyline to follow within the massive world of Disney.

Sources

About The Walt Disney Company. Retrieved November 25, 2016. https://thewaltdisneycompany.com/about/
The Data Team. June 16, 2016. The Economist. A New Disney Theme Park Opens in China. Retrieved November 25, 2016. http://www.economist.com/blogs/graphicdetail/2016/06/daily-chart-11
Johnson, Madeleine. June 16, 2016. Zacks. Your Complete Guide to All the Things Owned by Disney. Retrieved November 25, 2016. https://www.zacks.com/stock/news/220682/your-complete-guide-to-all-the-things-owned-by-disney
Carpenter, J. William. October 29, 2015. Investopedia. Top 5 Companies Owned by Disney. Retrieved November 25, 2016. http://www.investopedia.com/articles/markets/102915/top-5-companies-owned-disney.asp
Brevet, Brad. January 7, 2016. Box Office Mojo. ‘Star Wars: The Force Awakens’ Becomes Highest Grossing Domestic Release of All-Time. Retrieved November 25, 2016. http://www.boxofficemojo.com/news/?id=4142&p=.htm
Belloni, Matthew. June 22, 2016. The Hollywood Reporter. In-Depth With Disney CEO Bob Iger on China Growth, ‘Star Wars’ Reshoots and Political Plans: “A Lot of People Have Urged Me to [Run]”. Retrieved November 25, 2016. http://www.hollywoodreporter.com/features/bob-iger-interview-star-wars-905320
Hirasuna, Delphine. August 7, 2009. At Issue Journal. Walt Disney’s Creative Organization Chart. Retrieved November 25, 2016. http://www.atissuejournal.com/2009/08/07/walt-disney%E2%80%99s-creative-organization-chart/
Yahoo! Finance. The Walt Disney Company (DIS). Retrieved November 25, 2016. https://finance.yahoo.com/quote/DIS/financials?p=DIS
Brown, Maury. August 9, 2016. Forbes. Disney Buys $1B Stake In MLB’s BAMTech, To Launch ESPN Streaming Service. Retrieved November 25, 2016. http://www.forbes.com/sites/maurybrown/2016/08/09/disney-co-makes-1-billion-investment-becomes-minority-stakeholder-in-mlbams-bamtech/#1f44b1915972
Markman, Jon. August 23, 2016. Forbes. Disney Streaming Into A Perilous Future. Retrieved November 25, 2016. http://www.forbes.com/sites/jonmarkman/2016/08/23/disney-streaming-into-a-perilous-future/#4f34784210f7
Kafka, Peter. September 26, 2016. Recode. Why Disney won’t buy Twitter. Retrieved November 25, 2016. http://www.recode.net/2016/9/26/13062276/disney-won-t-buy-twitter
Munarriz, Rick. April 9, 2016. The Motley Fool. Disney Isn’t Buying Netflix or Snapchat. Retrieved November 25, 2016. http://www.fool.com/investing/general/2016/04/09/disney-isnt-buying-netflix-or-snapchat.aspx
Cohan, Peter. October 5, 2016. Forbes. Why Walt Disney Should Not Buy Netflix. Retrieved November 25, 2016. http://www.forbes.com/sites/petercohan/2016/10/05/why-walt-disney-should-not-buy-netflix/#710bdc20395d
Box Office Mojo. Studio Market Share. Retrieved November 28, 2016. http://www.boxofficemojo.com/studio/?view2=yearly&view=parent&p=.htm
Tartaglione, Nancy. November 6, 2016. Deadline Hollywood. Disney Crosses $6B At Global Box Office; First Time In Studio’s History. Retrieved November 28, 2016. http://deadline.com/2016/11/disney-crosses-six-billion-dollars-global-box-office-studio-record-doctor-strange-finding-dory-zootopia-captain-america-1201849749/
Gardner, Hannah. June 16, 2016. USA Today. Disney’s new Shanghai park is supersized. Retrieved November 28, 2016. http://www.usatoday.com/story/news/world/2016/06/15/disneys-new-shanghai-park-supersized/85920926/
Disney. Moana. Retrieved November 28, 2016. http://movies.disney.com/moana

Viacom

Posted on February 18, 2016 by Zaynah Anderson

About the Company

Viacom is an American global mass media company. The company and its content reach audiences in over 160 countries with content produced nationally and internationally [2]. It is the sixth largest broadcast and cable company as far as revenue but has the largest portfolio of ad-supported cable networks in the United States. Viacom’s cable networks are among some of the most popular and most watched channels by families across the world. This includes BET, VH1, MTV, TV Land, Comedy Central, Spike TV, Nickelodeon including all of its spin-offs, amongst many others [3]. In fact,Viacom has been rated the number one family cable network for numerous years.

Key Executives

Phillippe Dauman serves as President, CEO, and the Executive Chairman [4].

Wade Davis serves as Executive Vice President and CFO.

Thomas E. Dooley serves as Chief Operating Officer.

Sumner M. Redstone [5], is a majority owner of the company and also serves as Chairman Emeritus of the Board of Directors. However, his unstable health conditions [6] have decreased his ability to be present in the flesh during meetings as he is currently struggling with physical and speech mobility [7].

The Deal on Dish

Tensions between Viacom and Dish, a satellite-TV provider, had been brewing for quite a while before the issue was publicized nearing the Wednesday, April 20, 2016, deadline for a new carriage contract [8]. The root of the problem was a supplier-distributor disagreement in which Dish felt the carrier fees being charged by Viacom was unreasonable and overpriced. They stated that they only wanted to sign a contract that took into account the significant changes in the TV landscape and the way media is consumed. The company threatened to drop Viacom’s channels if Viacom didn’t compromise on the new deal [9].

Viacom however, suggested that they had offered Dish a best-of-its-kind deal for its very popular channels and explained that they have extended the deadline multiple times for Dish [10]. Refusal to come to an agreement would have resulted in a blackout of Viacom channels at midnight-eastern standard time. This would have been bad news for Viacom who has suffered low viewership with media being consumed in non-linear ways and would certainly impact ad revenue if it lost Dish’s 14 million viewers. The situation caused Viacom stock to drop nearly 10% on Tuesday with the fate of Viacom and Dish’s partnership still in the air [11]. However, the share prices increased the next day after CEO Charlie Ergen hinted in a conference call on Wednesday, that he would be interested in pursuing a new deal with Viacom should the company adhere to their conditions [13].

KEEPVIACOM.COM

In efforts to boost awareness on this issue, Viacom launched a website under the name www.keepviacom.com. The site broadcasted Dish’s plan to get rid of a total of 18 Viacom channels and allowed concerned visitors to learn more about the situation under a tab called “Get The Facts.” Other important tabs featured on the web page included “Shows You Will Miss” outlining viewer favorites and other shows that would have been gone forever.

One of the most important features on the site was a link titled “What People Are Saying” which provided a live feed from a discussion board of distressed Dish users and other Viacom supporters that spoke out against Dish threatening to drop the channels. Many Dish users openly expressed willingness to leave the cable provider should they drop the Viacom channels. The website also provided direct access to Dish’s Facebook page encouraging viewers to “make their voice heard” by posting on the page and urging them to join in the conversation on both Facebook and Twitter in which the hashtag #KeepViacom was trending. People of all ages used the hashtag to support Viacom and prevent Dish network from dropping the channels. The site made sure users of Dish network were able to voice their opinions by including Dish’s phone number on the digital protest site along with tips on how to get through to the company via phone [14].

Aftermath

Within the 24 hours leading up to the fate of Viacom and Dish’s relationship, hundreds of thousands passionate consumers reached out to Dish. Their voices proved to have been heard as the network did not drop the channels. Instead, Dish rose to the occasion meeting the deadline and renewing a multiyear deal with Viacom. The “keep Viacom” site has since been taken down, replaced by a message expressing gratitude and assuring users that an agreement with Dish had been met [15].

Fortunately, an agreement was reached putting both Viacom and Dish in a better position. The renewed multi-year deal includes plans for bringing select Viacom content onto Sling TV, Dish’s single and multi-stream service, as well as keeping all Viacom channels available for Dish subscribers [17].

Viacom in International Markets

Viacom has made an imprint in international markets through both acquisitions and expansions. Viacom’s acquisition of channel 5 in the United Kingdom has contributed to the company’s continued growth with a 20% growth in operating income in the country. With the acquisition of channel 5, Viacom was able to garner 23 others crucial networks allowing the company to gain access to 100% of the UK’s television audience. Viacom also has assets in India’s television market [18]. With a recent launch of VOD digital streaming service VOOT that gives India exclusive rights to consume over 17,000 hours of content through the service that is available on Android, and iOS devices for free with lots of kid-friendly content from Nickelodeon and MTV readily accessible [20].

Financial Plans

Despite ratings revealing that Viacom may be experiencing trouble with viewership, considering the decrease in ad revenue by 1% year over year and a decrease in overall revenue by 6% year over year, the CEO Phillippe Dauman assures everyone that Viacom will bounce back soon and see a growth in both ad revenue and overall ratings. They are making strides to accomplish this by using other tools of measurement aside from Nielsen in order to get advertisers acclimated with new ad formats. In addition to allowing them to make use of other platforms more frequently used to consume Viacom content such as laptops and tablets. One such tool is a service called Vantage which allows advertisers to place their ads more accurately along a variety of different platforms using varied consumer data as a catalyst [22].

Social Media

Viacom maintains communication with fans and investors via social media outlets such as Facebook in which the overall company has close to 150,000 likes and Twitter where it has over 23,000 followers. These numbers do not include the subscriber base for Viacom’s individual channel networks such as MTV and Nick for example, in which the numbers would soar much higher.

Forecast

Looking ahead Viacom’s future looks promising [23]. Many of its networks have plans for renewing shows for additional seasons after audience viewership numbers soared. The networks have also green-lighted lots of original content that will be introduced that should certainly garner some positive feedback. As of Friday, April 22, 2016, Viacom’s share price is $43.78, an increase of 2.87% [24]. Leading into May, the stock is now at the highest it’s ever been since the beginning of February.

Viacom’s 2nd Quarter Earnings Conference call is set to release on April 28, 2016, which will provide additional information into the company’s future and finances [25].

Sources

[2] “ABOUT VIACOM.” Viacom. N.p., n.d. Web. 15 Apr. 2016. http://www.viacom.com/about/pages/default.aspx.

[3] “Viacom Brands.” Viacom. N.p., n.d. Web. 15 Apr. 2016. https://www.viacom.com/brands/pages/default.aspx.

[4]”SENIOR MANAGEMENT.” Viacom. N.p., n.d. Web. 15 Apr. 2016. http://www.viacom.com/about/pages/seniormanagement.aspx#.

[5] “BOARD OF DIRECTORS.” Viacom. N.p., n.d. Web. 15 Apr. 2016. http://www.viacom.com/about/pages/boardofdirectors.aspx?bioid=1.

[6] Ackner, Daniel. “Inside the Viacom “Brain Drain”” Vanity Fair. N.p., n.d. Web. 13 Apr. 2016. http://www.vanityfair.com/news/2016/04/inside-the-viacom-brain-drain.

[7] Person, and Vanity Fair Magazine. “Read Sumner Redstone’s E-mails About His Succession Plans.” Vanity Fair. N.p., n.d. Web. 3 Feb. 2015. http://www.vanityfair.com/news/2015/05/sumner-redstone-retirement-health-viacom-future.

[8] Ingram, Mathew. “Dish vs. Viacom Fight Is All About the Shifting Balance of Power in TV.” Fortune Dish vs Viacom Fight Is All About the Shifting Balance of Power in TV Comments. N.p., 19 Apr. 2016. Web. 20 Apr. 2016. http://fortune.com/2016/04/20/dish-vs-viacom/.

[9] James, Meg. “Dish Network CEO Charlie Ergen Threatens to Permanently Drop Viacom Channels.” Los Angeles Times. Los Angeles Times, 20 Apr. 2016. Web. 20 Apr. 2016. http://www.latimes.com/entertainment/envelope/cotown/la-et-ct-dish-charlie-ergen-viacom-dispute-20160420-story.html.

[11 ]Lieberman, David. “Viacom Warns That Its Networks May Go Dark On Dish Network.” Deadline. N.p., 19 Apr. 2016. Web. 20 Apr. 2016. http://deadline.com/2016/04/viacom-dish-contract-negotiations-impasse-1201740218/.

[12] “Charlie Ergen.” About DISH. N.p., n.d. Web. 20 Apr. 2016. http://about.dish.com/leadership/executive-leadership/charlie-ergen.

[13] Littleton, Cynthia. “Viacom Stock Plunges as Dish Renewal Fight Heats Up.” Variety. N.p., 19 Apr. 2016. Web. 20 Apr. 2016. http://variety.com/2016/tv/news/viacom-dish-stock-drop-renewal-deadline-1201756655/

[14] “Viacom and DISH Agree to Multi-Year Renewal.” Viacom. N.p., 21 Apr. 2016. Web. 22 Apr. 2016. http://news.viacom.com/press-release/viacom/viacom-and-dish-agree-multi-year-renewal.

[15] Frankel, Daniel. “Dish Deal Shows Viacom Channels Haven’t Lost Their Value, Analysts Say.” FierceCable. N.p., 22 Apr. 2016. Web. 22 Apr. 2016. http://www.fiercecable.com/story/dish-deal-shows-viacom-channels-havent-lost-their-value-analysts-say/2016-04-22.

[21] “1st Quarter ’16 Earnings Presentation.” (n.d.): n. pag. Viacom. 9 Feb. 2016. Web. 1 Mar. 2016.

[17] Perez, Sarah. “Streaming Service Sling TV Will Add MTV, Comedy Central, Nick Jr & More, following Viacom deal.” TechCrunch. N.p., 22 Apr. 2016. Web. 23 Apr. 2016. http://techcrunch.com/2016/04/22/streaming-service-sling-tv-will-add-mtv-comedy-central-nick-jr-more-following-viacom-deal/.

[18] Pelts, Shirley. “Welcome to Market Realist.” India: Why Is It Viacom’s Valuable Asset? N.p., 24 Mar. 2016. Web. 1 Apr. 2016. http://marketrealist.com/2016/03/india-viacoms-valuable-asset/?utm_source=yahoo&utm_medium=feed&utm_content=read-next-a&utm_campaign=viacoms-acquisition-channel-5-stronghold-uk.

[20] “Voot Video-on-Demand Service Launched in India.” NDTV Gadgets360.com. N.p., 30 Mar. 2016. Web. 1 Apr. 2016. http://gadgets.ndtv.com/tv/news/voot-video-on-demand-service-launched-in-india-819555.

[21] “1st Quarter ’16 Earnings Presentation.” (n.d.): n. pag. Viacom. 9 Feb. 2016. Web. 1 Mar. 2016.

[23] Lazaroff, Leon. “Viacom Could Go Higher Even after Dish Deal Removes Overhang.” TheStreet. N.p., 22 Apr. 2016. Web. 24 Apr. 2016. http://www.thestreet.com/story/13541284/1/viacom-could-go-higher-even-after-dish-deal-removes-overhang.html

[24] “Viacom, Inc.” Yahoo! Finance. N.p., n.d. Web. 22 Apr. 2016. http://finance.yahoo.com/q?uhb=uh3_finance_vert&fr=&type=2button&s=viab.

[25] “Events & Presentations.” Viacom Inc. -. N.p., n.d. Web. 23 Apr. 2016. http://ir.viacom.com/eventdetail.cfm?eventid=170845.

Pictures (not cited above):

[1] “Voot Image Logo.” Viacom18. N.p., n.d. Web. 24 Apr. 2016. http://www.viacom18.com/viabuzz/viacom18-digital-ventures-voot/.
[2] “Viacom Brands Logo. “Whoever Controls the Media, Controls the Mind.” N.p., 25 Dec. 2014. Web. 24 Apr. 2016. http://annesmedia.blogspot.com/.

Hulu

Posted on December 1, 2014 by dpbaylis

by Daniel Bayliss

Hulu Logo. Courtesy of thenextweb.com [1]

Hulu Headquarters

12312 West Olympic Boulevard Los Angeles, CA 90064 [2]

Phone: 1-(310) 571-4700 Website: www.hulu.com

Twitter: @hulu

Key Executives [3]

Mike Hopkins, CEO

Craig Erwich, Senior Vice President & Head of Content

Tian Lim, Chief Technology Officer

Elaine Paul, Chief Financial Officer

What is Hulu?

Created in 2007, Hulu is a premium, over-the-top service that distributes content to millions of users that stream its programming. The Hulu destination website hulu.com was created in 2008.

Users can stream TV shows like Modern Family, Grey’s Anatomy, and Glee. That list is much more expansive, as Hulu offers programming from NBC, FOX, ABC, etc. In addition, Hulu offers numerous movies, documentaries [4], clips, its own original content, and more.

In addition to the free Hulu service, there’s also a paid subscription service called Hulu Plus. For $7.99 per month, subscribers can watch from a library of streamed shows, movies, clips, etc. that is significantly larger than the selection offered by the free service. There are also a number of electronic devices, like XBox, tablets, and phones that have the ability to stream Hulu Plus.

Photo courtesy of app advice.com. This picture shows just several devices that you can use to access Hulu Plus.

Hulu’s original programming also brings their own advertising and sponsorship opportunities into the mix [5]. Hulu also works with websites like Facebook, Yahoo!, MSN, and others to provide web syndication abilities.

Financials

Due to Hulu being a privately held company [6], the only public monetary updates come from within the company.

The year 2012 was significant for Hulu financially. According to former CEO Jason Kilar, the company brought in approximately $695 million in revenue [7], which was a 65% increase from 2011’s revenue totals.

Photo courtesy of Hulu.com. This graph shows a consistent increase between the fourth quarter of 2010 to the fourth quarter of 2012, a factual example of Hulu Plus’ increasing popularity.

The revenue increase also brought about an increase in Hulu Plus subscriber totals, bumping the total up from 1.5 million subscribers in 2011 to 3 million subscribers in 2012. These totals are the result of Hulu investing upwards of $500 million in content in 2012, in addition to the running total of $1 billion that has been paid to the content owners since Hulu’s launch back in 2007 [8]. Hulu also served over 1,000 advertisers in 2012, which was 28% more than in 2011 [7].

Hulu experienced more financial success in 2013 [9]. Their revenue and subscription totals rose to $1 billion and 5 million paying subscribers, respectively [10]. And under the assumption that it holds onto its subscribers for a year, Hulu is set to make $479 million just in subscription revenues.

In July 2013, the three companies that own Hulu — Fox Entertainment Group, NBCUniversal and Disney — invested $750 million in Hulu for its future endeavors and investments. As of September 28, 2013, Hulu had collected a total of $380 million of that number [11]. This investment came on the heels of the three companies deciding against a sale of Hulu.

Within the Company

A huge part of Hulu’s success is due to all their advertising efforts, which includes branded content like the Ford–sponsored show Escape My Life and Subway-sponsored The 4 to 9ers. While branded content is an increasingly popular trend, one that Hulu has taken advantage of in the past [12], November’s departure of Bryan Thoensen, the head of branded content at Hulu, from the company has caused Hulu to change its efforts. Hulu’s new plan will revolve around sponsorships sold for the their self-produced content [13]. This is different from the past when Hulu would also bring along shows and combine them with brands from the start.

Photo courtesy of adage.com. This screenshot of Hulu’s NewFronts portion of their website shows some of its brand content work for 2014 [13].

Back in October it was reported that CEO Mike Hopkins was considering reducing the amount of advertisements that pop up on Hulu Plus [14]. No definitive answer has been issued as to whether or not this will happen. Some executives within the company encouraged the idea due to statistical data suggesting the company’s heavy ad usage. In a study conducted by Comscore in December 2013, Hulu showed users 82 ads per month, while YouTube monthly total for ads seen by users was about 32 [15].

Photo courtesy of app advice.com. This picture shows the Hulu app on an iPhone. There’s a “free” selection of videos as well as the possibility of upgrading to Hulu Plus, as seen in the upper-left hand corner.

Apple‘s decision back in 2011 to receive 30 percent of each Hulu Plus subscriber’s monthly bill was finally justified this year. In early October it was confirmed that Hulu’s most recent update made it compatible with iOS 8 and on the iPhone 6 and iPhone 6 Plus. The Hulu in-app update also gives users the ability to subscribe to the Hulu Plus service as soon as they open the app [16]. which means that Apple takes over the billing relationship for those customers.

Hulu also confirmed in late October that it has renewed its distribution deal with Viacom. In the newest deal was the agreement to continue streaming shows like Comedy Central’s “The Daily Show with Jon Stewart” and “Workaholics,” MTV scripted shows “Awkward” and “Happyland,” and numerous Nickelodeon shows due to the desire for a more expansive selection for kids [17].

More Content Updates

After they were cancelled by ABC, comedy shows Selfie and Manhattan Love Story have been picked up by Hulu [18]. Selfie’s creator Emily Kapnek tweeted the news out on November 20. Kapnek also said that the show’s six remaining un-aired episodes would also immediately be made available on Hulu.

Photo courtesy of guardianlv.com.

Hulu will also now stream “HuffPost Live Conversations” as agreed upon between Hulu and the Huffington Post’s digital video branch last month [19]. The deal, which Hulu hopes will increase its informative news display, will span three years.

Original Content Updates

Photo courtesy of liljas-library.com

Among the many items offered on Hulu are some shows created originally for Hulu. Hulu’s original content selection received a huge boost when the company issued a straight-to-series order for a show based on a Stephen King novel. J.J. Abrams’ Bad Robot Productions will produce 11/22/63, which was originally written by King in 2011 [20]. The intense, thriller will revolve around a teacher that has to travel back to 1963 to stop Lee Harvey Oswald from assassinating then-president John F. Kennedy.

Photo courtesy of imdb.com

Due to its increasing popularity, the company has decided to bring back Hulu Original “The Wrong Mans” for a second season [21]. A joint venture between Hulu and BBC Comedy, the show will return with four brand-new episodes that pick up with characters Phil Bourne (James Corden) and Sam Pinkett (Matthew Baynton), who were assumed to be dead, coming back and venturing off on some journey across the world. The season premieres on December 24.

Hulu has also started planning for 2015 with news of another original content piece [22]. The company ordered a new TV show called Difficult People to begin production early on next year. The show comes with executive producers Amy Poehler and Dave Becky, and Billy Eichner and Julie Klausner will star in Difficult People [23].

Sources

[1] Hulu Company Logo, thenextweb.com, RT: 11/29/2014

[2] Hulu Company Description, Bloomberg Businessweek, RT: 11/29/2014

[3] Hulu Executives, Hulu.com, RT: 11/29/2014

[4] Hulu Documentaries, Hulu.com, RT: 11/29/2014

[5] Hulu Original Programming, Hulu.com, RT: 11/29/2014

[6] Hulu: The IPO That Never Happened, Inside Business 360, RT: 11/29/2014

[7] A Big 2012, Hulu.com Blogs, RT: 11/29/2014

[8] Hulu 2012 Breakdown, Gigaom, RT: 11/29/2014

[9] Hulu 2013 Breakdown, Subscriptioncontent.net, RT: 11/29/2014

[10] Hulu 2013 Sales, Bloomberg, RT: 11/29/2014

[11] Walt Disney’s 2013 Fiscal Year, Walt Disney’s 2013 Annual Fiscal Report, RT: 11/29/2014

[12] Farmed and Dangerous, Tubefilter, RT: 11/29/2014

[13] Hulu Restructures Branded Content Plan, adage.com, RT: 11/29/2014

[14] Hulu CEO Mulls Cutting Number of Ads, NYPost, RT: 11/29/2014

[15] Hulu Plus May Cut Back Ads, Cynopsis Media, RT: 11/29/2014

[16] Hulu Makes Peace With Apple’s 30 Percent Cut, Gigaom, RT: 11/29/2014

[17] Hulu-Viacom, Variety, RT: 11/29/2014

[18] Hulu Picks Up ABC-Cancelled Shows, Deadline, RT: 11/29/2014

[19] Hulu Adds HuffPost Live Videos, Huffington Post, RT: 11/29/2014

[20] Hulu Orders New Show Based on King Novel, Hollywood Reporter, RT: 11/29/2014

[21] The Wrong Mans Back on Hulu, The Futon Critic, RT: 11/29/2014

[22] Hulu Picks Up Difficult People, comingsoon.net, RT: 11/29/2014

[23] Hulu Orders New Show, TV Series Finale, RT: 11/29/2014

NewsCorp/21st Century – Fox

Aside

by Lina Ortega

21st Century Fox

[Image courtesy of: new.pentagram.com]

www.21cf.com

Contact information

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

Key Executives

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

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

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

About 21st Century Fox

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

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

Financials

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

What’s Happening Now?

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

Image courtesy of: The Christian Post

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

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

Image courtesy of: forbes.com

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

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

Image courtesy of: msmagazine.com

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

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

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

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

Image courtesy of: denofgeek.com

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

In Other News

Image courtesy of: The Independent

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

Image courtesy of: realscreen.com

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

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

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

Spotify

Posted on October 5, 2014 by cklytle

by Caitlin Lytle

[1] Brand name and Logo

OVERVIEW:

Spotify is one of the top streaming services on the market and is all about finding the right song for the right moment. There are over 30 million songs to choose to stream from, with over 50 million active users in 58 markets across the globe [2]. While Spotify is relatively new in American, launching in 2011, it was founded in 2008 in Sweden.

The Spotify interface users see [3].

Users can create profiles, and on there create playlists, they can follow other users playlists, and share songs on social media by connecting through Tumblr, Facebook, and Twitter. In addition to following their friend’s accounts they can also follow celebrity accounts and see what their followers are listening to on a side bar. The service also serves as a great music discovery tool, with Spotify’s own curated playlists, and radio feature similar to that of Pandora. With free and paid accounts there is a little bit of something for everyone with platforms on a user’s computer, mobile, tablet, and most recently home entertainment systems.

Subscriptions are broken up into two types, free and “premium” accounts in which users pay $9.99 a month to experience add free listening as well as more access to mobile listening and off line listening with data. The ratio to active paying subscribers to free listeners is over 20% [4].

COMPETITORS:

Infographic aligning Spotify with their top competitor streaming services [5].

With the legacy of CDs and era of illegal downloading slowly dying out in the music business, people are looking more and more to streaming as a way to consume music. Because of this and the gap in the market for streaming services, in the last two years there has been a large emergence of streaming services that serve as competitors to Spotify. Last year Beats headphones launched Beats Music, and Amazon Prime Music launched recently as well, amongst already existent competitors like Rhapsody and Google Play.

DEEZER COMES TO UNITED STATES:

Deezer logo [6].

On September 14, 2014 Deezer came to America, which could potentially prove it self to be Spotify’s biggest competitor. Deezer is one of the world’s biggest names in streaming with its services available in 180 countries [5]. Due to licensing rights, they were not able to expand into the U.S. for quite some time, but now have the market of paying subscribers to go from 5 million users to rival Spotify’s 10 million international users [5]. However Spotify is at a slight advantage, because while Deezer is usually formatted with a similar interface to Spotify, Deezer in America is launching on a new platform. Deezer is only launching for US users through pricy Sonos sound systems and only those with speakers and the app can subscribe to the Deezer Elite service, with a steep price tag of $19.99 a month which is double that rate to Spotify’s for premium [7].

TAYLOR SWIFT AND THE STREAMING STRUGGLE:

Celebrity Sightings In New York City - October 30, 2014

Taylor Swift pulls catalog from Spotify [8].

In addition to Deezer coming to America this fall, Spotify also recently suffered another large loss. Pop- country princess, Taylor Swift, just pulled her entire catalog from the streaming service. With such a large artist, obviously Swift has caused a large impact on what consumers are streaming, especially with the recent release of an album. This is all apart of a larger argument right now not only with Spotify, but all streaming services that artists are being paid too little for the amount of plays they are receiving [9]. However, Taylor’s case is different. Management released a statement that she believes art and music are important and should be fully purchased and that albums and means of listening to that music should not be free [8]. Because of this all of her music was pulled from streaming services with free accounts, but not those services where you are required to pay in order to have a profile. There is large debate as to whether or not her music will return, but for the time being fans are expected to buy albums, and how the relationship between Taylor Swift and Spotify will develop is one to track.

SPOTIFY GROWTH:

While this fall has given Spotify some tough situations, this has not stopped them from expanding.

SPOTIFY FAMILY

Spotify Family, is the newest development in the programs interface. Similar to Netflix family accounts, Spotify Family now allows large families to have one billing account but different profiles for different family members, so Dad’s Rolling Stones playlists don’t get mixed in with Daughter’s Disney Princess playlist [10]. There are separate profiles and therefore different recommendations and profiles can be listened to at the same time, unlike before when one account could only be streamed in one place at a time [10]. In addition there is also a premium upgrade discount for families wanting to upgrade to this added service [10].

SPOTIFY + UBER

Spotify collaborates with popular car service, Uber [11].

Spotify is know for its unique brand collaborations, which continue as they offer music lovers cool experiences. This November on the 21^st they collaborated with Uber to give Spotify and Uber the ride of a lifetime [11]. When users had both apps on the 21^st, they could not only request a special car and get a vehicle with the new Spotify- enabled Uber cars, but they also had the chance to either get in a car that took them to a secret show in an undisclosed location, or get the chance to be picked up and driven around by some of their favorite artists [11]. This venture really shows the creative side of Spotify and how they connect with their users beyond a screen.

Artists and Shows available during the Uber promotion [11].

SPOTIFY + CARPLAY

Besides the Spotify- enabled Uber cars, Spotify is now reaching our vehicles this fall with CarPlay support in the latest iOS update [12]. The ioS app adds Apple CarPlay integration with that allows users to access the app through dash receivers and makes it easier for people to use the service in their vehicles [12]. Audi, Ferrari, Ford, and Hundai all plan on making the application available in their upcoming models for the next year [12].

WHAT’S NEXT?

With all of these great strides Spotify is taking to make them selves more user friendly and connect with their users, they will continue to be one of the top streaming services into 2015.

We can look to see Spotify as a brand present at future music festivals next spring as the festival season is fast approaching, as well as other unique music experiences brought to users with live music interaction, beyond the screen.

sources:

1. Spotify’s Logo 2014, Spotifypress.com, RT: 12/01/14

2. Spotify Press Fast Facts, Press.Spotify.com, RT: 12/01/14

3. Spotify User Profile Screen Shot, Open.spotify.com/artists, RT: 12/01/14

4. Spotify Press Information, Press.Spotify.com, RT: 12/01/14

5. Which Music Streaming Service Is the Biggest Worldwide?, Billboard.com, RT: 12/01/14

6. Deezer Logo 2014, Deezer.com, RT: 12/01/14

7. Deezer enters US market with Elite lossless service, Cnet.com, RT: 12/01/14

8. Taylor Swift Explains Why She Pulled Her Music From Spotify, Huffingtonpost.com, RT: 12/01/14

9. How is Spotify Contributing to the Music Business?, Spotifyartists.com, RT: 12/01/14

10. Introducing Spotify Family – one account for the whole band., News.spotify.com, RT: 12/01/14

11. 10 cities. 10 artists. Take a ride or see an exclusive live session., News.spotify.com, RT: 12/01/14

12. Spotify Adds CarPlay Support in Latest iOS Update, Macrumors.com, RT: 12/01/14

Discovery Communications

Posted on October 5, 2014 by bngermai

by Brendan Germain

Discovery Logo [1]

One Discovery Place Silver Spring, MD 20910 — 240.662.2000

“Discovery is dedicated to satisfying curiosity, engaging and entertaining viewers with high-quality content on worldwide television networks…” [2]

COMPANY PROFILE

As the number one pay-TV programmer and non-fiction media company, Discovery Communications paves the way for cross platform content appealing to 2.7 billion subscribers across 150 cable networks in over 220 countries. Discovery’s commitment to innovation and segmenting audiences has earned it its place as a leader in targeted media programming headed by Discovery Channel, operating also the Animal Planet, Hub Network and a joint venture with the OWN network among others. The company’s online and media services work in conjunction with its cable programming and have made Discovery a true multi-media, synergistic company.

KEY EXECUTIVES

David Zaslav- President and CEO [4]

Andrew Warren-Senior Executive VP and CFO [5]

Marjorie Kaplan- Group President Discovery Channel [6]

HISTORY

John Hendricks, a West Virginia bred, University of Alabama grad, founded the Cable Educational Network in Maryland back in 1982. Discovery Communications would soon grow from the launch of the Discovery Channel in1985. By 1988 the cable programmer had amassed over 32 million subscribers and by 1991, after acquiring The Learning

Discovery Logo-1988 [9]

Channel (TLC) and launching Discovery in Europe, the company changed its name to Discovery Communications. Over the next 10 years, the company would see considerable international growth in Asian, African and Middle Eastern markets and soon launched a $10 million news site distributing original news content on its Discovery homepage [7]. In 2004 Hendricks stepped down as CEO passing it off to current position holder David Zaslav and this past May, Hendricks retired as Chairman, leaving the company he had built over the past 35 years with a drive towards the environment, education and technological advances. [8]

FINANCES

This past quarter, coming in early November, saw a 14% increase for Discovery Communications (DISCA) on the NASDAQ year-over-year (YOY), with revenue at $1.57 billion [10].

DISCA’s Yearly Stock Price as of December 1, 2014 CLICK TO VIEW CURRENT CHART [12]

The publicly traded conglomerate has been on a rise in stock price, ending around $34 dollars recently with around 148 million shares outstanding. Since 2010, DISCA has been on a mass buyback movement to repurchase in excess of 25% of its stocks to consolidate its outstanding shares, giving the company more control over its numerous domestic and international platforms [11]. The company is segmented into three areas of revenue–Domestic, International, and Education, the first two being programming and education being products and services. Revenue for the domestic programming has seen minimal drops of 1% YOY as advertising budgets for the company have raised 3%, while the international segment as seen rises as high as 34% in revenue, in direct relation with Discovery’s acquisition of Eurosport [13]. Discovery is projected to reach a total revenue between $6.3 billion and $6.35 billion for this 2014 fiscal year.

ACQUISITION OF EUROSPORT

Staking its claim as the #1 Pay-TV programmer for educational, niche content across its over 200 networks domestically and internationally, Discovery has taken a turn towards broadcast and sports media sphere with its spring

Eurosport Logo [15]

acquisition of Eurosport. Eurosport, the premier sports media group in Europe, is valued at $1.2 billion and reaches over 133 million homes. TF1, the French media conglomerate had previously owned 80% of the company before Discovery pushed to expedite the deal which had been set for 2015, though TF1 will holds its stake in the sports media group until the end of the year. [14].

[Click here to view Eurosport’s promo stinger]

Discovery acquired 51% of the company, with TF1 being the only other owner holding the remaining 49%. DISCA is looking to capitalize on the fragmented nature of the sports broadcast industry over in Europe, a step in a different direction from their pay-TV and cable roots, in hopes of building up Eurosport to the status of Europe’s version of ESPN [16].

"Eurosport is a perfect strategic fit for growing market share, strengthening relationships with advertisers and affiliates, and bringing ‘must have’ content to passionate viewers across the globe...” [17] 
      -Discovery CEO David Zaslav-

There are talks already about the possibility of Discovery buying out TF1, giving DISCA full ownership of Eurosport, in turn adding six new pay-TV brands to Discovery’s arsenal.

DISCOVERY CHANNEL

The network that started it all, Discovery Channel (formerly The Discovery Channel), excels at non-fiction programming reaching over 100 million homes in the U.S. and over three times that amount internationally. Launched in 1985, Discovery Channel produces science, nature, adventure and history geared television, among other genres, and has revved up its live-streamed programming over the past few years [18]. In June 2013, Discovery aired a live program special with adventure enthusiast Nik Wallenda traversing the Grand Canyon on a tightrope [19]. The record breaking broadcast event amassed over 13 million viewers, Discovery’s highest-rated live event, with an additional 1.3 million trending Tweets about the stunt, awarding DISCA an Interactive Emmy for Multi-platform storytelling. Discovery Channel followed Wallenda again earlier this month in his tightrope walk between two Chicago skyscrapers at a 15-degree angle, aptly titled SKYSCRAPER LIVE WITH NIK WALLENDA.

Play to view highlights of Nik Wallenda's SKYSCRAPER LIVE walk [21]

Though not drawing the magnitude of coverage as his Grand Canyon walk, this live event in addition to others showcase Discovery’s risky intent to air content to attract an audience, stunts so daring that someone could die [20]. Understanding this, Wallenda carried a $20 million public liability insurance claim, should anything catastrophic have happened. The tightrope walk was a success and coming this May, Discovery Channel intends to air live footage of expert climber Joby Ogwyn’s Mount

SURVIVAL LIVE Logo [24]

Everest jump in a winged suit, titled EVEREST JUMP LIVE, hooking up eight cameras to his suit to get full 360 degree coverage [22]. In addition, the network is continuing on its multi-platform successes with a new, interactive program called SURVIVAL LIVE, a 42-day survivalist event pitting 8 strangers against each other in the remote wilderness [23].The cross-platform media gives viewers the ability to track survivalists biometric, medical statistics during the 24 hour live-streamed event as well as the option to donate needed supplies or help online. Moving to attract a growing, interactive audience, Discovery is prompting new growth in cross-media programming and their push for high adrenaline, live-streamed events sets them apart from other cable networks.

DISCOVERY FAMILY CHANNEL

Since being renamed this past October, Discovery Family, formerly The Hub Network, DISCA’s children geared daytime programming network, has broadened its program offerings in a strengthened partnership between Discovery Communications and Hasbro,

Hasbro, Inc. Logo [25]

Inc. The Hasbro Studios have published upfronts intending to move into primetime television timeslots [26]. With Discovery owning 60% in this joint venture, Discovery Family is projected to have over 70 million U.S. homes tuning in to programs and the two look to move into nightly family targeted programming. The two corporations will both capitalize on producing branded content, marketable to advertisers, and accessible for both children and families [27].

UP AND COMING

Discovery has recently paired up with Sony Entertainment Network to bring channels from DISCA to Play Station Vue, Sony’s cloud-based, internet television service [28]. Sony’s subsidary, Sony Network Entertainment International (SNEI), will offer the subscription based service to current users of a PS3 or PS4 come early 2015, totally over 35 million users. The deal will bring Discovery’s 13 U.S. networks to users, in addition to next-gen services like Discovery Digitial Networks [29].

Theorized PlayStation Vue Screen [30]

This is new territory for Discovery, a cloud streaming service, and whether or not users will be willing to pay for the subscription fees is up for debate. Prices per month have yet to be set, though the service brings DISCA’s historically cable programming to an internet based provider follows the path Discovery Communications is walking in becoming a more cross-media driven media group and high-level television programmer.

SOURCES

[1]Discovery Logo corporate.discovery.com RT: 11/18/14

[2] Corporate Mission corporate.discovery.com RT: 11/18/14

[3] Company Profile Information biz.yahoo.com RT:11/18/14

[4] David Zaslav Image corporate.discovery.com RT: 11/18/14

[5] Andrew Warren Image corporate.discovery.com RT: 11/18/14

[6] Marjorie Kaplan Image corporate.discovery.com RT: 11/18/14

[7] Discovery History referenceforbusiness.com RT: 11/18/14

[8] Hendricks Leaves Discovery variety.com RT: 11/18/14

[9] Discovery Logo 1988 logos.wikia.com RT: 11/24/14

[10] DISCA Annual Finances finance.yahoo.com RT: 11/24/14

[11] DISCA Quarterly Report corporate.discovery.com RT: 11/24/14

[12] DISCA Yearly Stock Chart finance.yahoo.com RT: 11/27/14

[13] Discovery Segments/Projections zacks.com RT: 12/1/14

[14] Discovery Acquires Eurosport nytimes.com RT: 11/28/14

[15] Eurosport Logo eurosport.com RT: 11/28/14

[16] Discovery Moves to Broadcast corporate.discovery.com RT: 11/28/14

[17] David Zaslav Quote corporate.discovery.com RT: 11/29/14

[18] Discovery Channel Profile corporate.discovery.com RT:11/29/14

[19] Discovery Live Streams press.discovery.com RT: 11/29/14

[20] Risk of Live Events nytimes.com RT: 11/29/14

[21] SKYSCRAPER LIVE Highlights Footage youtube.com RT: 11/29/14

[22] Everest Jump Live deadline.com RT: 11/29/14

[23] SURVIVAL LIVE press.discovery.com RT: 11/29/14

[24] SURVIVAL LIVE Logo adage.com RT: 11/29/14

[25] Hasbro, Inc Logo hasbro.com RT: 11/30/14

[26] Hasbro, Inc Partnership investor.hasbro.com RT: 11/30/14

[27] Discovery Family Deal corporate.discovery.com RT: 11/30/14

[28] PlayStation Vue Contract polygon.com RT: 12/1/14

[29] Discovery/Vue Offerings corporate.discovery.com RT:12/1/14

[30] PlayStation Vue Screen polygon.com RT: 12/1/14

Continue reading →

Verizon

Posted on October 5, 2014 by lashaw01

by Lauren Shaw

Verizon Communications

Company Logo, click to go to website.

140 West Street

New York, NY 10007

www.verizon.com

Executives [1]

Courtesy of verizon.com

Lowell C. McAdam, Chairman & CEO

Courtesy of verizon.com

Roy H. Chestnutt, Executive Vice President & Chief Strategy Officer

Courtesy of verizon.com

James J. Gerace, Chief Communications Officer

Courtesy of verizon.com

Roger Gurnani, Executive Vice President & Chief Information Officer

About [2]

Courtesy of wikimedia.org

Verizon Communications is a major media conglomerate that provides broadband and other communication services to consumer, business, government, and wholesale customers. The company is known for its wireless services, providing a reliable wireless network for its 98 million customers nationwide.

: Courtesy of fool.com

Verizon FIOS is one of the company’s major departments that provides a telephone service, digital TV, and high speed Internet over a single fiber optic cable. Fios customers gain access to over 575 digital TV channels, with over 160 channels being High Definition. FiOS also offers over 18,000 movies on demand.

History [3]

Launching in 2005, Verizon FiOS was originally just available to 9,000 customers in Keller, Texas. With the addition of DVR in 2006 and High Definition in 2008, Verizon grew to eventually becoming a leading television distribution company, with around five million customers and availability in 18 million homes in 16 states, as of May 2013. Their top markets are New York, Washington, Philadelphia, Los Angeles, and Boston, with New York having 1,305,440 subscribers and Boston having 343,535 subscribers. (As of 2013)

Courtesy of creoleindc.typepad.com

Financials

On October 21, the company released their third quarter earnings report. Although more customers were added, Verizon Communications saw a decline in profit. Third quarter net income was $3,794 million, which is a drop from the $5,578 million in 2013’s third quarter. [4] More specifically, the companies Wireline segment had a total revenue of $9.576 million, which is a 0.8% decrease from last year. [6] However, FiOS video subscriber base went up 7% from last year to 5.533 million (adding a net 114,000 subscribers). In addition, broadband connections increased 1.7% from last year to 9.146 million.[5] Although the company is falling short of profit expectations, it seems as though they can detest their revenue drive to FiOS, as FiOS represented 74% of the company’s total revenue during the first quarter of 2014, and is continuing to do so. [7]

FiOS TV Interactive Media Guide

Courtesy of verizon.com

There are many changes being brought to FiOS that may explain its success for the company. Verizon has revamped its FiOS TV Interactive Media Guide for TV and mobile, improving the personalization, management abilities, and user interface for customers.[8] Customers will now receive search results and recommendations for shows and movies based on their viewing behavior. Rotten Tomatoes Movie Reviews and FiOS TV star ratings will also appear when customers are viewing specific content via their guide, with cast and crew biographies as well. [8] The new changes also come with a “My FiOS TV” feature that connects users to social media. [9]

Courtesy of verizon.com

Customers can see what’s being discussed about their favorite shows via Twitter.[9] These new changes are one of many incentives from the company to try and meet the demands of consumers and their reliance on media. These changes offer a comparison to one of Verizon’s competitors Comcast, and its recently upgraded mobile user interface with similar user-friendly personalization updates.[9]

TV Everywhere

Courtesy of bidnessetc.com

The company is not only updating its guide to keep up with consumer’s growing reliance on media and need for entertainment on multiple platforms. In October, the company renewed its carriage agreement with Viacom. [10] These new agreements seem to meet the demands of people’s need for ‘TV Everywhere.” Soon, Verizon customers will be able to stream Viacom programming in and out of their homes. [10] Viacom content such as music and entertainment programming will be available 24/7 on multiple platforms and will include 25 Viacom networks such as MTV, Nickelodeon and Comedy Central. [11] This agreement not only allows customers to gain access to live and on-demand content through the FiOS mobile App, but gain access to Video On-Demand content through various Viacom TV Everywhere websites and Apps as well. [11]As the industry is moving toward more content on mobile, the company is trying to keep up and avoid loosing subscribers by providing opportunities such as these to provide more TV Everywhere options.

Courtesy of digitalhollywood.com

“People want to watch TV anywhere, not just in their living rooms. Disruption in the TV marketplace is happening and Verizon wants to reach agreements with content providers like Viacom that reflect that reality and give people what they want. We are thrilled to extend our long-term distribution partnership with Viacom Media Networks, delivering some of the most recognizable and popular kids, music and entertainment programming available to our customers anytime, anywhere on a variety of platforms from TV to wireless. “-Ben Grad, Verizon’s executive director of content strategy & acquisition [12]

FiOS Quantum Gateway

In addition to consumer’s need for entertainment in a variety of platforms, consumers also want their content as fast as possible. After complaints of slow download speeds over the summer, specifically when streaming Netflix, it seems as though the company is approaching these problems with the launch of FiOS Quantum Gateway.[13] (released in November 2014)

For customers with multiple devices in their homes who frequently stream videos, the Quantum Gateway, which was released at the beginning of the month, should improve speeds and cut down download time for its subscribers. [13] This goes along with Verizon’s “speed match” campaign, which promises to match all customers upload speeds to its download speeds by the end of the year for free. [14] These new features will hopefully improve user experiences for all FiOS customers and create an advantage over its competitors, as other distribution companies are attempting to improve speeds as well.[14]

Stopping the Cord-Cutters from Cutting this Holiday Season

Courtesy of bidnessetc.com

With more and more ways to view content online, Verizon needs to promote competitive advantages to prevent the cord-cutters from actually cutting, and thus loosing customers for Verizon. Just in time for the holiday season, from now until January 17th, customers can purchase FiOS Triple Play package (high-speed internet, phone, and TV) for only $59.99 a month, and get a full year of Netflix free. [15] Not only does this provide a popular package for a much cheaper price, but includes Showtime, HBO, and free Netflix, all of which are usually the reason for cord-cutters to begin with.[16] This bold move of including competitive companies in a much cheaper package should attract millennials who would have previously been turned off to paying for an expensive cable package.[16] 2015’s first quarter earnings report will provide an answer as to whether this unique package paid off for Verizon as a whole.

Looking Towards The Future

As 2014 comes to an end, consumers should prepare for more TV Everywhere opportunities from Verizon, as well as more user-interface and personalization changes to FiOS. [17] Verizon customers should look out for the possibility of a wireless internet pay TV service and FiOS Custom Channels, both which would be released sometime in 2015. [17]

Sources

[1] “Executive Bios” .verizon.com RT: 11/28/14

[2] “Verizon At a Glance” .verizon.com RT:11/28/14

[3] “History & Timeline” .verizon.com RT: 11/28/14

[4] “Verizon Misses on Q3 Earnings, Revenues” .zacks.com October 21, 2014 RT: 11/29/14

[5] “Verizon adds 1.5 Million Customers, But Misses on Profit Expectations” .dailytech.com October 22, 2014 RT: 11/29/14

[6] “Verizon Reports Strong Customer Additions” .prnewswire.com RT: 11/29/14

[7] “FiOS Drives Revenue Up, But Earnings Fall Short of Expectations” .forbes.com April 24, 2014 RT: 11/29/14

[8] “Verizon Revamps FiOS TV Guide” .bidnessetc.com October 1, 2014 RT: 11/28/14

[9] “Verizon Freshens Up FiOS TV Guide” .multichannelnews.com September 30, 2014 RT: 11/28/14

[10] “Verizon FiOS and Viacom Renew Carriage Agreement” .marketwatch.com October 1, 2014 RT: 11/29/14

[11] “Verizon FiOS, Viacom Strike New Carriage Deal” .broadcastingcable.com October 1, 2014 RT: 11/29/14

[12] “Verizon, Viacom Strike New Carriage Deal” .multichannelnews.com October 1, 2014 RT: 11/29/14

[13] “Verizon FiOS Launches Souped-Up Broadband Gateway” .multichannelnews.com October 3, 2014 RT: 11/29/14

[14] “Verizon’s Pitch: Upload Speeds to Match Download” .wallstreetjournal.com August 25, 2014 RT: 11/29/14

[15] “Verizon Trial: 1 Year Free Netflix to FiOS Triple Play Users” dslreports.com October 27, 2014 RT: 11/29/14

[16] “Verizon FiOS Bows Cord-Cutter Plan with Netflix, HBO, Showtime” .homemediamagazine.com November 19, 2014 RT: 11/29/14

[17] “Verizon CEO Says He’s Weighing A Wireless Internet Pay TV Service” .deadline.com March 4, 2014 RT: 11/29/14

DirectTV

Posted on October 5, 2014 by Nicholas Sabatino

by Nick Sabatino

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 [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 [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 [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

CBS Films

Posted on October 5, 2014 by rkraiche

 by Rebecca Raichek

11800 Wilshire Blvd, Los Angeles CA 90025

Company Overview

CBS Films is a film company that is owned by CBS Corporation and produces, distributes, and acquires feature films. Created in 2007, CBS Films is a small production company who release about four to six films every year that consist of various different genres [1]. CBS Films are always on the lookout for new quality films regardless of genre, and generally focus on the production of smaller films since they are more agile and adapt to the market place says Vice President of Communications Grey Munford [2]. CBS Films looks to make good movies that are able to find an audience. Showtime and CBS help with the financing of the films, and the showcasing and syndication as well. Because CBS is good at putting premium content out, CBS films are able to reach their intended audience. They gain viewers through less of a traditional promotional and advertising way, but are still equally as successful as the big studios [2].

Key Executives

Terry Press: President

Terry Press source: cbsfilms.com/about

Reid Sullivan: Chief Financial Officer

Reid Sullivan source: cbsfilms.com/about

Scott Shooman: Executive Vice President Acquisitions and Co-Productions

Scott Shooman source: cbsfilms.com/about

Steven Friedlander: Executive Vice President Theatrical Distributions

Steven Friedlander source: cbsfilms.com/about

Financials

Since CBS Films was established in 2007, they have released 17 movies that have earned a total gross income of $321,882,427 [3]. The top earning movie was Last Vegas with $63,914,167, followed by The Woman in Black with $54,333,290. In the first quarter of 2014, the Entertainment sector of CBS Corporation which includes CBS Films earned $457 million which was a decrease for the first quarter in 2013 which was $480 million [4]. In the third quarter of 2014 which is the most recent, the Entertainment sector of CBS corporation earned $335 million which was a decrease from $431 million in 2013 [4].

Upcoming/Current Projects

Currently, CBS Films has one film in theaters and one that is coming out in February. In July 2014 CBS Films acquired the U.S rights to the British film Pride after it debuted at the Cannes film festival. Pride is a film about the true story of a gay and lesbian activist group in London supporting the national union of mineworkers strike. It stars Bill Nighy, Imelda Staunton, Dominic West, Paddy Considine, and is directed by Matthew Warchus. The film was distributed by Pathe and the acquisition deal was made by Scott Shooman who negotiated with Cameron McCracken and Pierre du Plessis [5]. Pride was a small film with a limited release of only 124 theaters in the U.S and has a total gross of $1,446,634 [6]. Critics gave the film great reviews and was given 94% rating on Rotten Tomatoes [7]. To advertise the film, CBS Films relied heavily on the use of social media and personal interactions through the audiences via Twitter. CBS Films retweeted audience reviews of Pride on their page instead of self-promoting the movie themselves. According to Vice President of Communications Grey Munford, “ the best thing you can do is retweet the good things other people are saying. People trust it more with reviews coming from other people.” He also stressed that “Pride was a social first movie- in the digital space social media is most important,” [2]. Pride will be available on Blue-Ray on December 23rd, 2014.

Promotional poster for Pride source: geekedoutnation.com

Another upcoming project for CBS Films is the release of The DUFF in February 2015. The trailer for The DUFF had it’s world release during the premiere of The Hunger Games as part of a strategy by CBS to target the demographic of Women Under 25 [2]. According to Munford, the trailer was strategically released during The Hunger Games because it was the single biggest movie released between November and February that would reach the target demographic [2]. The DUFF is about a high school girl who finds out she is the
“DUFF” of her friend group- the designated ugly fat friend, and she desperately tries to change her image. This film has also used social media to advertise, and actors Bella Thorne and Robbie Amell have tweeted a link to the trailer encouraging their fans and followers to watch it and see the movie when it is released.

Promotional poster for The DUFF source: collider.com

Starting in 2015, Lionsgate Entertainment will take over CBS Film’s distribution operations as a multiyear agreement. The deal also includes Lionsgate taking control over all international sales for CBS films. CBS will still produce and acquire their own films, but Lionsgate will have total control of distribution both in theaters and in home entertainment [8]. This deal comes after CBS Films has made a move to become a more significant studio in acquiring films, especially after they acquired Inside Llewyn Davis, Salmon Fishing in the Yemen, and most recently Pride [8].

Another upcoming project for CBS Films is the production of Scary Stories to Tell in the Dark which will be an adaptation of the books written by Alvin Schwartz. The films will be adapted by John August, and will be produced by Sean Daniel, Jason Brown, and Elizabeth Grave [9].

source: deadline.com

CBS Films is also adapting the Broadway musical 13 to film which will be written by Bert V. Royal, and produced by Laurence Mark [10].

Social Media

Because CBS Films is a smaller film company, they rely heavily on social media in order to advertise and promote their films. They have a Facebook account where they constantly post about their current and upcoming projects and provide behind the scenes pictures for the 5,700 people who like the page. Vice President of Communications for CBS Films Grey Munford, explained how social media has helped their films successfully compete with big budget movies at the box office. Their film The Woman In Black, starring Daniel Radcliffe, opened up within 2-3 million dollars of Fox’s big budget film Chronicle. [2]. The film used social media and built an online fan base to successfully advertise and also emphasized on the stardom of Daniel Radcliffe to persuade his current fans to see the movie.

source: gettypress.co.uk

CBS Films also used Radcliffe as an advertising tool to promote their Romantic- Comedy What If which he starred in as well. The film had a social media campaign through the new app We Heart It which is an image-sharing social network, and gained 22,000 followers [11].

source: gophoto.us

References

[1]. About CBS Films, cbsfilms.com/about, RT 11/27/14

[2]. G.Munford, Personal Communication, October 29 2014.

[3]. CBS Films All Time Box Office Results, boxofficemojo.com, RT 11/27/14

[4].CBS Corporation Investor Relations, investors.cbscorporation.com, RT 11/28/14

[5].“Pride Acquired by CBS Films”, variety.com, RT 11/27/14

[6].Pride (2014), boxofficemojo.com, RT 11/27/14

[7] Rotten Tomatoes, rottentomatoes.com, RT 11/29/14

[8]. “Lionsgate Takes Over CBS Films’ Distribution & Global Sales, deadline.com, RT 11/28/14

[9].“John August To Pen ‘Scary Stories To Tell In The Dark’ For CBS Films, deadline.com, RT 11/28/14

[10].“CBS Films Bringing Musical ’13’ to Big Screen, hollywoodreporter.com, RT 11/28/14

[11].“Young-adult movie campaigns mine social media” usatoday.com, RT 11/28/14

Additional References

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