CBS Corp.

Posted on October 16, 2016 by mnreardo

CBS Corporation

By: Marlowe Reardon, Justin Rivera, and Francesca Sostar

[2] CBS Corporations Logo

Overview

Columbia Broadcasting System, known as CBS Corporation, was founded in 1927 as competition to the National Broadcasting Company (NBC). CBS began as a major contributor in the radio business, then moved into television as that transition of medium was occurring [1].

Divisions of the Company

CBS Corporation branches out to all sorts of media, including radio, television, film, cable, as well as interactive media. The company owns a wide variety of operations such as its own television distribution, consumer products, television studios, home entertainment, and sports networks. CBS also has joint ventures with major companies such as Lionsgate and Warner Bros. Entertainment. Their deal with Warner Bros. allowed them to create the CW, a television network that has produced successful shows such as “Arrow” and “The Vampire Diaries” [3]. The partnership between Lionsgate and CBS led the the development of “Pop”, which combines both major companies talents in programming, production, and distribution.

[13] “Pop” Logo, CBS and Lionsgate joint venture

[14] The CW logo, CBS and Warner Bros Entertainment joint venture

Key Executives

NEW YORK, NY - MAY 15: President & CEO of CBS Corp. Les Moonves attends CBS 2013 Upfront Presentation at The Tent at Lincoln Center on May 15, 2013 in New York City. (Photo by Ben Gabbe/Getty Images)

[4] Leslie Moonves, CEO, Chairman of the Board, and President

[6] Shari E. Redstone, Vice Chairman

[7] Jim Lanzone, Chief Digital Officer

[8] Armando Nuñez, President & CEO-CBS Global Distribution Group

[5] Sumner Redstone, Chairman Emeritus

Finances

CBS is a publicly traded company in the New York Stock Exchange, listed as CBS.A and CBS. Their stock has seen a steady increase over the past year, currently sitting at $60 per share, as opposed to $50 per share a year ago [9]. CBS had a successful third quarter this year, with revenues increasing 4 percent to $3.4 billion. Revenue is up from $3.26 billion at the same time last year. This was due to an increase in revenues and fees from CBS affiliate stations and a growth in their digital distribution platforms. There was also a negative impact in advertising revenue from the Republican and Democratic National Conventions, the first Presidential debate, and the 2016 Summer Olympics [10].

[11] CBS NYSE Closing Bell, 12/9/15.

Some of the largest contributors to CBS’s success are its cable networks, such as Showtime Networks and CBS Sports Network. Their revenue increased 14% to $598 million in this third quarter, growing from $526 million in last year’s third quarter. This aspect of the company will continue to prosper, with the growth in over-the-top (OTT) streaming services across media [12].

Current Projects

Right now, CBS Corporation is attempting to close a deal in which Viacom will merge with CBS. Both Sumner and Shari Redstone, Chairman and Vice Chairman of CBS, are large supporters of the deal. However, what is halting the deal is both companies board of directors have obligations to their shareholders. These shareholders are still exploring the potential problems that could happen if the deal were to be made. Some of these issues include pricing and structure after the merger is made. Even though the deal is still in talks, it is likely that it will happen because a single family, the Redstone’s, own 80 percent of both companies [13].

With the emergence of AT&T’s aggressively priced DirectTV Now (merging internet and television like never before), CBS is left to wonder one question: Why? A deal of this magnitude essentially leaves CBS yearning to somehow affiliate itself with this mega-deal. CBS has already taken the initiative to converge with other prosperous companies, inking a small deal with Google that involves a “skinny bundle” of TV networks to be called YouTube Unplugged. The drive CBS has to concern itself with as many large companies as possible depicts its drive to remain a powerful media conglomerate [14].

[15] Youtube Logo

CBS has been in the preproduction process of a new Star Trek series titled Star Trek: Discovery. This series will only be available on CBS’s online streaming service CBS All Access, after premiering on CBS. The decision to stream the show was made because science fiction shows have historically done poorly on broadcast television. CBS believes that a majority of Star Trek fans will pay for the services of CBS All Access so they will not miss out on the new series. Star Trek: Discovery is said to have a diverse and better represented cast, with a female lead and at least one gay character [16]. The company is hoping that this new series will also bring more viewers to this service, with about 1 million subscribers already. A commercial-free option of CBS All Access is now available, which costs $9.99 a month, as opposed to the ad-supported service costing $5.99 a month [17].

[19] CBS All Access Logo

[18] Star Trek: Discovery Logo

CBS is starting to take similar approaches to that of Netflix. Leslie Moonves stated that he is a big fan of Netflix and is taking some strategies that will help with CBS All Access. Rather than just displaying old shows on All Access, CBS has decided to take the same approach as Netflix by creating its own original shows. They use this strategy in order for their viewers to keep interest in All Access and not cancel their memberships. Previously, there would only be two or three buyers to get content from CBS. Now, streaming services are benefitting CBS Corporation because they can sell their syndicated content to Netflix, as opposed to these two or three buyers.

There has also been continuing success with CBS’s subsidiary, Showtime. Showtime is another over-the-top streaming site, similar to All Access. Moonves is going to make a continual amount of original programming, aiming for once a month released series or seasons. He also wants there to be an increase from about one million to four million subscribers in the next few years [20].

CBS has added six new shows this fall season to their primetime lineup, three comedies and three dramas. The three comedies are Kevin Can Wait, Man With a Plan, and The Great Indoors. These shows have big-name stars, such as Kevin James, Matt LeBlanc, and Joel McHale. The new dramas, Bull, MacGyver, and Pure Genius attract a wide range of audiences due to the differences of the casts. These shows are doing well so far, but time will tell which ones remain on the network and which will not make the cut [21].

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[22] Kevin Can Wait poster

mv5bmtgxmdm0ndaxml5bml5banbnxkftztgwmda5ndqwmdi-_v1_ux182_cr00182268_al_

[23] Pure Genius poster

Future Endeavors

It was announced November 28th that CBS CEO and Chairman Leslie Moonves will be attending the UBS 44th Annual Global Media and Communications Conference in New York City on December 5th for a question-and-answer session [24]. This is a conference where companies join to meet and host formal presentations over a three day period [25].

Two new shows are set to premiere later in the 2016-2017 season on CBS. Training Day and Doubt are both dramas that revolve around crime and the legal system. This will hopefully help the ratings of the other dramas already showing on CBS [26]. The future of CBS Corporation looks very bright, and many changes are set for the upcoming months and years.

SOURCES

[1] https://www.britannica.com/topic/CBS-Corporation,. (2016). CBS Corporation. Retrieved 24 November 2016.

[2] http://logok.org/cbs-logo/,. (2016). CBS Logo. Retrieved 25 November 2016.

[3] https://www.cbscorporation.com/about-cbs/,. (2016). About CBS Corporation. Retrieved 25 November 2016.

[4] http://cdn5.thr.com/sites,. (2016). Leslie Moonves. Retrieved 25 November 2016.

[5] http://www.gannett-cdn.com/-mm-/4f4f62b1d3b58aebf110dff9a65dfa9cb9aa49b4/c=0-171-1994-2830&r=537&c=0-0-534-712/local/-/media/2015/04/16/USATODAY/USATODAY/635647883968561121-Sumner-Redstone.jpg,. (2016). Sumner Redstone Picture. Retrieved 25 November 2016

[6] http://www.zimbio.com/photos/Shari+E.+Redstone,. (2016). Shari E. Redstone Photo Stream. Retrieved 25 November 2016.

[7] http://www.cbscorporation.com/2016/06/jim-lanzone-named-chief-digital-officer-of-cbs-corporation/,. (2016). Jim Lanzone named Chief Digital Officer of CBS Corporation. Retrieved 25 November 2016.

[8] https://www.cbspressexpress.com/cbs-studios-international/executives/view?id=241,. (2016). Armando Nunez. Executives. Retrieved 25 November 2016.

[9] https://finance.yahoo.com/quote/CBS?p=CBS,. (2016). CBS Corporation Finances. Retrieved 26 November 2016.

[10] http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MzU3MzQyfENoaWxkSUQ9LTF8VHlwZT0z&t=1&cb=63613799985568029,. (2016). CBS Annual Results. Retrieved 26 November 2016.

[11] http://www.gettyimages.com/event/the-talk-rings-the-closing-bell-at-the-new-york-stock-exchange-595510127?#sheryl-underwood-sara-gilbert-shahttps://youtu.be/bqm9HSYbf0oron-osbourne-aisha-tyler-and-julie-picture-id500711866,. (2016). CBS’ “The Talk” Rings The Closing Bell At The New York Stock Exchange. Retrieved 26 November 2016.

[12] http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MzU3MzQyfENoaWxkSUQ9LTF8VHlwZT0z&t=1&cb=636137999855680291,. (2016). CBS Annual Results. Retrieved 26 November 2016.

[13] http://www.investopedia.com/stock-analysis/111716/heres-whats-holding-viacomcbs-merger-cbs-viab.aspx,. (2016). Here’s What’s Holding Up the Viacom-CBS Merger. Retrieved 26 November 2016.

[14] http://variety.com/2016/digital/news/cbs-directv-now-launch-att-1201925053/,. (2016). CBS Won’t Be in DirecTV Now at Launch, but Talks With AT&T Continue. Retrieved 25 November 2016.

[15] https://www.youtube.com/yt/brand/downloads.html,. (2016). Youtube Logo. Retrieved 26 November 2016.

[16] http://www.avclub.com/article/cbs-admits-star-trek-discovery-wouldnt-cut-it-netw-245919,. (2016). CBS admits Star Trek: Discovery wouldn’t cut it on broadcast TV. Retrieved 26 November 2016.

[17] http://variety.com/2016/tv/news/star-trek-discovery-good-wife-spinoff-cbs-all-access-premiere-date-1201860613/,. (2016). ‘Star Trek: Discovery’ Delayed on CBS All Access Until May, ‘Good Wife’ Spinoff Moved Up. Retrieved 26 November 2016.https://youtu.be/bqm9HSYbf0o

[18] http://www.cheatsheet.com/,. (2016). Star Trek: Discovery Logo. Retrieved 27 November 2016.

[19] https://wwwimage-secure.cbsstatic.com,. (2016). CBS All Access Logo. Retrieved 27 November 2016.

[20] http://www.fool.com/investing/2016/10/01/why-cbs-corporation-is-a-big-fan-of-netflix.aspx,. (2016). Why CBS Corporation Is a Big Fan of Netflix. Retrieved 27 November 2016.

[21] http://www.cbs.com/shows/cbs-fall-premieres-2016/news/1005234/get-a-first-look-at-the-2016-2017-cbs-primetime-lineup/,. (2016). Get a first look at the 2016 2017 cbs primetime line up. Retrieved 28 November 2016.

[22] https://images-na.ssl-images-amazon.com/images/M/MV5BMjIyNDgyNDY4Nl5BMl5BanBnXkFtZTgwMDg4NDQwMDI@._V1_UX182_CR0,0,182,268_AL_.jpg,. (2016). Kevin Can’t Wait Poster. Retrieved 28 November 2016.

[23] https://images-na.ssl-images-amazon.com/images/M/MV5BMTgxMDM0NDAxMl5BMl5BanBnXkFtZTgwMDA5NDQwMDI@._V1_UX182_CR0,0,182,268_AL_.jpg,. (2016). Pure Genius Poster. Retrieved 28 November 2016.

[24] http://www.cbscorporation.com/2016/11/cbs-corporation-chairman-and-chief-executive-officer-leslie-moonves-to-participate-in-the-ubs-44th-annual-global-media-and-communications-conference/,. (2016). CBS Corporation and Chairman and Chief Executive Officer Leslie Moonves to Participate in the 44th Annual UBS Global Media and Communications Conference. Retriever 28 November 2016.

[25] https://www.ubs.com/global/en/investment-bank/key-investor-conferences/global.html,. (2016). Global 2016 Conferences. Retrieved 28 November 2016.

[26] http://www.cbs.com/shows/cbs-fall-premieres-2016/news/1005234/get-a-first-look-at-the-2016-2017-cbs-primetime-lineup/,. (2016). CBS Fall Lineup. Retrieved 28 November 2016.

Gannett Broadcasting

Posted on September 19, 2012 by sweinste

by Scott Weinstein

Gannett Co., Inc.
7950 Jones Branch Drive
McLean, VA 22107-0150
703-854-6000 / www.gannett.com

A Brief Overview

In 1923, Frank Gannet founded Gannett Company, Inc. in Rochester, New York. It began as an extension of Gannett’s newspaper company that was founded in 1906 and has expanded to a multi-media company that no longer just publishes newspapers (1). “Gannett is a media and marketing solutions company with a diverse portfolio of broadcast, digital, mobile and publishing companies.” They own more than 90 daily newspapers, about 1,000 weekly newspapers, 23 television stations and many more media holdings. Gannett operates in 41 U.S. states and six countries (2). Gannett is expanding its brand and as the CEO, Gracia Martore said at the UBS Global Communications Conference, “The media business does not stand still for even a minute we take for granted that change is relentless and we have to show up with our A game everyday.” (3)

Gannett Broadcasting: Company Overview

Gannett Broadcasting’s division is comprised of 23 television stations and its subsidiary Captivate. The former reaches 21 million households in 20 markets, which is approximately 18.2% of the U.S. population (2). The latter is a company that delivers news, information, and advertising through video monitors in elevators. They are currently located in North America and reach more than 4 million workers (4). At the end of 2011, the amount of employees, both full-time and part-time, totaled about 2,600 (5).

Executives (6)

The Faces of Gannett Company, Inc. (Lougee, Beall, Martore, Harker)(16,17,18,19)

Broadcast Office

David T. Lougee , President, Gannett Broadcasting

Lynn Beall; Executive vice president, Gannett Broadcasting, and president and general manager, KSDK-TV, St. Louis, MO

Company Office

Gracia Martore, President and Chief Executive Officer

Victoria D. Harker, Chief Financial Officer

Assets

As noted earlier the company owns 23 different television stations across the country, in 21 different markets. Seven of the 21 markets owned by Gannett are in the top 20 market (7).

: (20, 21, 22, 23)

The stations are comprised of 12 NBC affiliates, 6 CBS affiliates, 3 ABC affiliates, and two MyNetworkTV affiliates. These affiliation agreements expire with NBC in 2017, with CBS in 2015, and with ABC and MyNetwork TV in 2014. The most successful weekly audiences, based on the November 2011 Nielsen sweeps, are the CBS affiliate in Washington DC (WUSA-TV) with 1,797,000; the NBC affiliate in Atlanta, Georgia (WXIA-TV) with 1,602,000; and the NBC affiliate in Minneapolis-St.Paul, Minnesota (KARE-TV) with 1,297,000. (8)

The ratings of these stations continue to do well. Lucky for Gannett, more than half of its stations are NBC affiliates, and this past November was the first time since 2003 that NBC ranked number one in the Nielsen prime time ratings programming amongst adults 18-49. This increased revenue, as many people tuned into the NBC programming. Furthermore, the past Summer Olympics in London were the most watched games in Olympic history, attracting more than 200 million people. KUSA-TV in Denver was the top rated NBC market affiliate during the two-week span of the games. Their Atlanta and Minneapolis NBC affiliates were ranked second and third respectively; and their St. Louis and Phoenix did well. In total the Gannett owned affiliate stations took six of ten top NBC affiliate markets in terms of ratings during the Olympics (3).

Arizona	FlagstaffPhoenix	KNAZ-TV (NBC )KPNX-TV (NBC)
Arkansas	Little Rock	KTHV-TV (CBS)
California	Sacramento	KXTV-TV (ABC)
Colorado	Denver	KTVD-TV (My Network TV )KUSA-TV (NBC)
District of Colombia	Washington	WUSA-TV (CBS)
Florida	JacksonvilleTampa-St. Petersburg	WJXX-TV (ABC)WTLV-TV (NBC)WTSP-TV (CBS)
Georgia	AtlantaMacon	WATL-TV (My Network TV)WXIA-TV (NBC)WMAZ-TV (CBS)
Maine	BangorPortland	WLBZ-TV (NBC)WCSH-TV (NBC)
Michigan	Grand Rapids	WZZM-TV (ABC)
Minnesota	Minneapolis-St. Paul	KARE-TV (NBC)
Missouri	St. Louis	KSDK-TV (NBC)
New York	Buffalo	WGRZ-TV (NBC)
North Carolina	Greensboro	WFMY-TV (CBS)
Ohio	Cleveland	WKYC-TV (NBC)
South Carolina	Columbia	WLTX-TV (CBS)
Tennessee	Knoxville	WBIR-TV (NBC)

Financial Information

Gannett Company, Inc. is a publicly traded media holding company (GCI). On October 15 the third quarter results were released, and the broadcasting division’s success was monumental. Both revenue and profits were at a record high in all of Gannett broadcasting history. The operating revenue increased 36% from $174.3 million the last 3^rd quarter to $237 million during the most recent 3^rdquarter. The television revenue was also up 38.1% from $168.8 million a year ago to $233 million. The substantial increase is mostly attributed to advertising, which includes $41.7 million spent on political advertising and $37 million spent on the summer Olympics related ads. The Olympics brought in an unprecedented amount of revenue from advertising. Their total was up 18% from four years ago during the Beijing Olympic games. Part of the explanation was that Gannett reached out to local advertisers to sell television time to. Lougee is looking to increase the revenue even more during the 2014 Winter Olympic games in Sochi, Russia. In total, political revenue for the year will be $150 million. Prior to the 2012 election, Gannett lacked a strong political footprint, but that changed during this election. Because of more local coverage of elections, especially in swing state markets including Colorado, Florida, and Ohio, political advertising increased by a significant margin. Another source of the revenue came from retransmission fees, which accounted for $22.3 million. With retransmission consent in 2013, Gannett will receive 135-140 million from distributors, which is up 41 to 46% from 2012. The fourth quarter results are expected to be at an all time high. When the books are closed for Gannett’s fiscal year, the broadcasting division will report record growth and revenue (3) (9).

YTD Stock Price (December 6, 2011-December 6, 2012) (24)

As far as the stock market is concerned, the current share price for GCI is $17.88. Their share price has seen an incline for the most part, as a year ago it was being sold at $13.13 (10) Just recently, a report was released by Dividend Channel that named them the top dividend stock with insider buying. On October 23, the Board of Directors of Gannett announced that a dividend of $0.20 per share would be payable to stockholders just after the new year. As of now the company is on track to return dividends up to $1.3 billion through 2015. Throughout the UBS Global Media and Communications Conference a common theme that both the CEO and CFO spoke about was making sure an increasing level of capital is returned to their shareholders. Furthermore, there is currently a large amount of cash flow totaling over one billion dollars. That money will be used to return even more cash and to invest into things that will expand the Gannett brand (3) (11).

Recent Happenings

Gannett and Dish Network

(25)

In late May, Dish Network introduced its Auto Hop feature available on its DVR service. This new technology allows users to skip over commercials on broadcast networks. While this is beneficial for TV viewers it hurts the broadcasters who lose advertising revenue. As a result of this feature, Dish Network and Gannett were having difficulty renewing their retransmission agreements (12). Gannett was looking for a 300% rate increase to compensate for the loss of revenue from advertisers. Dish Network’s stance was that they wanted to take a stand for customer choice and control. Fortunately for subscribers, rather than suffer from a blackout, the two companies reached a deal as the October 7^th deadline was slightly extended. The terms of the deal have not been released, but the new contract is long term according to press releases by both companies (13).

Gannett and DirecTV

(26)

DirecTV customers narrowly avoided a blackout of Gannett television stations across the country. As the November 30^th deadline approached, Gannett warned their viewers that they may experience a blackout of affiliate stations until an agreement was reached. This was all because Gannett was looking for a fair deal for retransmission fees, while DirecTV said that Gannett was trying to get customers to pay almost twice what they pay now for their stations. While the deal was made by the deadline, the details of the agreement have not been made public yet (14).

Sources

1. History of Gannett

2. Background info on the company

3. 40th Annual UBS Global Communications and Communications Conference Slide Show presentation Dec 5, 2012

4. About Captivate

5. 2011 Annual Gannett Company, Inc. Report

6. The Gannett Company, Inc. Leadership Team

7. http://www.stationindex.com/tv/tv-markets

8. 2011 Annual Gannett Company, Inc. Report pgs. 14-17

9. Q3 Earnings, October 15, 2012

10. Google Finance

11. Press Release, December 5, 2012

12. http://online.wsj.com/article/SB10000872396390443768804578038742408997314.html

13. http://www.reuters.com/article/2012/10/08/us-dish-gannett-idUSBRE89403I20121008

14. http://www.rapidtvnews.com/index.php/25251/gannett-directv-avoid-local-tv-blackout.html

20. MyNetworkTV image

21. NBC image

22. ABC image

23. CBS image

24. Google Finance image

25. Dish Network image

26. DirecTV image

27. Gannett image

AMC Networks

Posted on September 19, 2012 by jeblanco

by Jose Blanco

Courtesy of underconsideration.com

Key Exceutives

Charles Dolan	Executive Chairman
Josh Sapan	President & Chief Executive Officer
Ed Carroll	Chief Operating Officer
Sean S. Sullivan	Executive Vice President & Chief Financial Officer
Jamie Gallagher	Executive Vice President & General Counsel
John P. Giraldo	Chief Accounting Officer
Bob Broussard	President, AMC Networks Distribution
Rob Doodian	Executive Vice President, Human Resources
Ellen Kroner	Executive Vice President, Communications & Marketing
Steven Pontillo	Executive Vice President & Chief Technology Officer
David Evans	Senior Vice President, Broadband
Paul Rehrig	Senior Vice President, Business Development

Highest Competitors

1. Showtime

2. HBO

Corporate Headquarters

AMC Networks Inc.
11 Penn Plaza
New York, NY 10001
Main Phone #: (212) 324-8500

Brief Network Description

Previously known as Rainbow Media Holdings (a division of the Cablevision, the American cable television company), AMC Networks [1] is a public entertainment company that focuses on specialty television and independent film production based in New York City. Within their branch of premium cable television channels, AMC Networks focuses on producing original content through their multiple channels (AMC, WE tv, the Sundance Channel, and IFC). On July 1^st of 2011, Cablevision made AMC Networks [1] become a publicly traded company, leaving former Rainbow Media president, Josh Sapan, as President and CEO of AMC Networks. Previously recognized for their airing of classic movies, the company began producing original content in 2007 with the launch of programs such as “Mad Men” in AMC (their most popular channel to which the company was named after).

Courtesy of Zap2it.com

Ever since, AMC Networks has promoted the creation of high-quality original content in their programming. With hit shows such as “The Walking Dead”, “Mad Men”, and “Breaking Bad”, all of which have received critical acclaim and popular appraisal, AMC Networks has marked its presence in the television industry, especially with through their channel AMC. As their tagline states; “Story matters here.”.

This Year for AMC Networks

Third Quarter 2012 Results

AMC Networks has been seemingly busy this year, given to their known legal dispute [2] with DISH Network early on this summer that led the American cable company to “drop” all of AMC Networks’ programming since this July to early October until the dispute was finalized. A deeper analysis regarding to the legal dispute and it’s result will continue further along the reading. Given to situations such as the previously stated, the company’s operating income (OI) decreased 8% in its Q3 [3] of this year (in comparison to Q3 of 2011) to a total of $87 million and its AOCF (adjusted operating cash flow) decreased 10.9% to $110 million (Q3 as well). According to AMC Networks’ most recent quarterly report, these blatant decreases in OI and AOCF are due to “ the impact of the litigation and associated carriage dispute with DISH Network.”. Now, OI also decreased due to “flat operating income at national networks and a $9 million increase in the operating loss at International and Other.” Normally when the network refers to its “International and Other” operation, its regarding its independent film production company IFC films, but AMC Networks is currently working on expanding its market on a global scale by opening up markets in Asia, Latin America, Europe, Canada, and Africa. [4]

Regardless of the networks decreasing OI and AOCF, the company has seen a steady increase in net revenues this year by a significant 17% ($332 million by the en of this year’s Q3 ) and an increase of 40% in share value this year (AMCX)[5], a share which is now traded at $52.25. These revenues, which were off set by their legal disputes, were due to not only the success of their programming but also to their growth in digital and licensing distribution (which is one of the primary reasons for the incitement of their current and past conflicts with cable companies such as DISH Network) through deals with online platforms such as Amazon.com, Netflix, and iTunes. Within their national networks, this led to an increase of 24.3% of revenues to $199 million [3]. Although use of online platforms has increase, Josh Sapan announced at the 40th Annual UBS Global Media and Communications Conference that took place recently on Dec. 4th “Our company has taken a rather more restrained approach on making our shows more accessible online. As a matter of policy its not good for the ecosystem, we chose to very selectively to sell our content.” then adding “We will support it. We will have to carefully manage where our rights go. We are in a position to balance that quite well and we have been compensating it for some time. We will be a good and healthy participant.” while referring to these online platforms [4].

DISH Network and AMC Networks

Now, what is this huge legal mumbo jumbo with DISH Network all about? AMC Networks current strategy consists of profit maximization through affiliate fees [5]. What they do is come up with two to three hit programs (“The Walking Dead”, “Mad Men”, and “Breaking Bad”) which make the channel indispensable to the carrier then fill the rest of the channels programming with inexpensive content such as non-fiction/reality programming (“Comic Book Men”, “Whisker Wars”). As posted in an article by Bill Gurley regarding affiliate fees on Abovethecrowd.com; “How can a cable company not offer “Mad Men”.” And they can’t and AMC knows so. Hence within their contracts they bundle up their other channels and relatively go better off in the contract [5].

Courtesy of infospace.ischool.syr.edu

“DISH felt that the network had devalued its admittedly popular dramas… by selling them to outlets such as Netflix, iTunes, and Amazon.com” according to an article on fool.com [6]. DISH felt as if they were being cut out and not just that, but AMC was demanding an increase in affiliate fees (which makes sense do to the success of their programs). DISH argued that AMC’s ratings did not meet with their demands. Given to their disagreements, DISH dropped all programming from AMC Networks in July 2012. But AMC, as well put in fool.com, “won’t be bullied”[6] .

They retaliated by launching ads denouncing DISH’s decision to drop them from programming. With campaigns such as the “Put Zonbies Back” ad that showed footage of people costumed as zombies scrawling through the streets of New York City (in real life) promoting their apocalyptic series “The Walking Dead” and retaliating the carrier’s decision to drop it’s programming.

These campaigns gave way to fan made spoofs and responses that demanded DISH to bring back AMC programming.

They did not stop there. Through their advertising, they gave DISH customers a week to “switch” providers and leave DISH [7].

Many doubted on AMC’s success given that their viewership had decreased 7%-9% in July when compared to 2011, according to the video by the Wall Street Journal [8]. With these decreases in ratings, AMC gave advertisers free time spaces in online streaming trying to push the ratings up. “You’d be surprised, there’s been a bit of a drop off since the black out started (referring to ratings when DISH dropped AMC)… these are niche products and as a result don’t have the same financial impact.” argued the WSJ [8].

Before the premiere of the third season of “The Walking Dead”, both parties agreed upon a settlement [9]. AMC and Cablevision would receive $700 million and receive a 20% stake with Voom HD, which offers up to 21 channels of HD programming. DISH acquired wireless spectrum licenses that cover up to 45 separate markets.

Television Channels

Courtesy of wikemedia.org

A speciality cable television channel that focuses on providing original content such as their hit shows “The Walking Dead”, “Mad Men”, and “Breaking Bad” and airing classic films.

Recent News

People at the WSJ must have been biting their tongues when the “The Walking Dead” premiered on Oct. 14^th and received 10.87 million viewers. But the real breakthrough [10]came with the show’s midseason finale that reached 15.2 million viewers on the night of the premiere, a 58% increase in comparison to its previous season finale (yet this was only the mid-season finale) and breaking records for cable television. It surpassed all other fall programs that appeal to the 18-49 age demographic such as “the Big Bang Theory” and “Modern Family”. Plus, the show’s new follow-up talk show “the Talking Dead” received a viewership of 2.2 million.

http://www.youtube.com/watch?v=gUvKSXO_Ipc

In February, AMC will premiere two new non-fiction tv-shows, “Immortalized” and “Freakshow“, “The Walking Dead“, “the Talking Dead“(both returning Feb. 14th 2013), and the hit reality tv show “Comic Book Men” will also return that same month [11].

Courtesy of media.sundancechannel.com

The Sundance Channel is a cable television channel that airs original programming, independent films, documentaries, and short films plus recent news regarding the current year’s Sundance Film Festival.

Recent News

The Sundance Channel announced in November its upcoming releases of 5 new dramas of high caliber talent and “non-formaulative” story lines. These new premieres include shows such as “Valentines”, based off a novel by Olaf Olafsson and produced by Robert Redford that follows the life of a New York lawyer and his three daughters. Other shows include “Death in the Modern Age”, “T”, and “Behind the Sun” [12].

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The IFC Channel (Independent Film Channel) airs independent film, original programming, and news and buzz relate to the independent film industry. IFC airs programs that range from slightly off comedies such as “Portlandia“, the multiple chapters of the R. Kelly “hip-hopera” “Trapped in the Closet“, to the absurdity behind beard competitions in the reality tv show “Whisker Wars“.

Recent News

AMC Networks has entered into fierce negotiations with Verizon in the past month concerning contract renewals. Pressure has also escalated in negotiations with Timewarner concerning the networks low-rated channels that are being bundled with their stronger channels such as AMC. Both carriage companies have threatened to drop [13] the networks programming as a result of weak ratings from both IFC and WE tv.

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WE tv airs is a cable television channel that targets women and women’s issues. Programming includes documentaries, some original programming, talk shows, fashion shows, older feature films, and some re-runs of other TV shows. Their latest hits include “Mary Mary“, a program that follows the lives of the famous gospel duo composed of the two ATkins-Campbell sister, Erica and Tina.

References

1. AMC Networks Homepage http://www.amcnetworks.com/default

2. Dish Network Settles Suit With AMC -WSJ http://online.wsj.com/article/SB10001424052970203406404578070960821103982.html

3.Third Quarter Report of AMC Networks 2012 http://www.amcnetworks.com/release_release_press.jsp?nodeid=6602

4.40th Annual UBS Global Media and Communications Conference http://cc.talkpoint.com/ubsx001/120312a_im/?entity=15_EJSUBIR

5.http://abovethecrowd.com/2010/04/28/affiliate-fees-make-the-world-go-round/

6.http://www.fool.com/investing/general/2012/10/22/amc-and-dish-work-out-a-new-deal-the-zombies-are-b.aspx

7.http://www.fool.com/investing/general/2012/07/15/amc-breaking-bad-news-for-dish-but-its-great-for-i.aspx

8. Drama of the Lost Dish Network http://www.youtube.com/watch?v=GAWgizbYfGw&feature=player_embedded

9. http://www.hollywoodreporter.com/thr-esq/amc-back-dish-lawsuit-settled-381472

10. AMC’s “The Walking Dead” is The First Cable Series to Beat Every Other Show of the Fall Broadcast Season in Adult 18-49 http://www.amcnetworks.com/release_release_press.jsp?nodeid=6607

11. http://www.amctv.com/

12.Sundace Channel’s New Shows http://www.amcnetworks.com/release_release_press.jsp?nodeid=6601

13.http://www.bloomberg.com/news/2012-12-03/time-warner-cable-threatens-to-drop-low-rated-networks.html

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