21st Century Fox (TV)

Posted on September 30, 2015 by Jason Mussman

Jason Mussman

21st Century Fox Corporate Logo [1] Source: 21st Century Fox

21^st Century Fox was formed on June 28, 2013 with the division of News Corp into two separate companies, 21^st Century Fox (The Entertainment Properties) and News Corp (The Publishing Properties) [2]. Founded by Rupert Murdoch, one of the most recognized names in the entertainment industry today, 21^st Century Fox was created to bring about the future of film and broadcasting industry [3]. Rupert Murdoch still remains Executive Chairman of the Board but on July 1^st 2015 Rupert Murdoch’s son, James Murdoch, took over as CEO [4]. 21^st Century Fox has a broad portfolio of global assets in the broadcast and film industry. 21^st Century Fox’s most prominent broadcast network are the FOX Networks.

Early in June 2015 21st Century Fox and News Corp. reached an agreement to move their world headquarters [5]. The new headquarters will be at the second World Trade Center site. The building being developed by Bjarke Ingels Group, will house studios, be completely state of the art and will put a new more meaningful location to 21st Century Fox [5]

21st Century Fox

Two World Trade Center

New York, NY 10006

…….

Executive Leadership

Rupert Murdoch [6]
Executive Chairman – 21st Century Fox. Source: Eva Rinaldi

Lachlan Murdoch [7] Executive Chairman – 21st Century Fox. Source: Deadline

James Murdoch [8]
CEO – 21st Century Fox. Source: Deadline

Background

21^st Century Fox reaches over 1.8 Billion customers daily through its portfolio of film, cable and broadcast networks [9]. 21^st Century Fox has assets in both the broadcast

Some assets owned by 21st Century Fox [11] Source: 21st Century Fox

and cable networks including, FOX, YES, FX, FXX, FOX News Channel, FOX Sports and the most recently acquired, National Geographic [9].

The FOX network currently has 16 shows in its fall lineup with hit show Empire, leading the ratings [10].

Financials

Fox Sports logo [13] Source: Fox Sports

21^st Century Fox continually innovates, standing behind its cable networks to drive revenue growth. The 21^st Century Fox brand is globally recognizable because of its strategy to acquire and keep viewers. Sports and News programming is the cornerstone of this strategy [12]. 21^st Century Fox continues to combat cord cutting by continuing to improve on its Sports and News content and programming [12]. These two types of content bring in a live audience and help keep 21^st Century Fox on top of the marketplace.

21st Century Fox Annual Revenue [15] Source: 21st Century Fox Investor Relations

In Fiscal 2015, 21^st Century Fox’ revenue dropped 9% from $31,867,000,000 to $28,987,000,000 [12]. The drop in revenue was due in large part to the sale of its direct broadcast networks [12]. During this same period, 21^st Century Fox held nearly 25% of the market share of all Cable Programming, second to only Disney [14]. While Television made up approximately 17% of 21^st Century Fox total revenue, it dropped 8%, or $401 Million from 2014 [12]. At the same time, advertising sales decreased by 14%. The main cause of the falling prices was due to lower ratings on the FOX networks entertainment shows [12].

Screenshot of market share for Cable Network Programming [14] Source: CSIMarket

21st Century Fox trades on the Nasdaq under the ticker FOXA. Today, December 1^st 2015, the share price for 21^st Century fox is $30.26 [16]. This is a 5.56% decline from fiscal 2014 where the stock sat at $35.79 [16]. As stated earlier, the decline in stock price was due to in large part to poor ratings from Fox’s entertainment shows [12].

FOXA Stock Price [27] Source: Google Finance

National Geographic Acquisition

National Geographic Cover – June 1985 [28] Source: National Geographic

With the goal of saving National Geographic and expanding on its efforts in science and innovation, National Geographic and 21^st Century Fox agreed on a Joint Venture. The deal took place on September 9^th creating the for-profit Joint Venture National Geographic Partners [17]. For $725 Million 21^st Century Fox will take control of 73% of National Geographic [18]. This merger will give 21^st Century Fox new assets on both the television and print front [19]. This merger will help both National Geographic and 21^st Century Fox, and will provide both companies with new assets in both content and financials. The National Geographic endowment will increase to $1 Billion, providing more finances for innovation and research throughout the world [18]. This move will help 21^st Century Fox reach a broader audience as well as give it more assets on the digital platform.

Empire

Promo for Empire [29] Source: Fox

January 7^th 2015, FOX Network, the leading cable network for 21^st Century Fox, premiered a new show that would significantly impact 21^st Century Fox as well as the world around it. Empire, a show that centers on African American artists and executives, are all seen fighting for control of a music empire [21]. Empire continually leads in ratings each week, bringing in massive revenue for 21^st Century Fox [20]. Currently, Empire is the second priciest show for advertisers, coming in just behind Sunday Night football. A typical ad spot for Empire, costs just around $500,000 [32]. While Empire brings in a diverse audience, it is one of the highest rated shows among African American viewers [22]. Empire is doing more than just helping Fox on screen. Because the show centers on the music industry, the show is also constantly creating new songs and new stars [22].

Presidential Debate

Tweet by Justin Haskins after 3rd Republican Primary Debate [30] Source: Justin Haskins, Twitter

Tweet by Mark Simone after 3rd Republican Primary Debate [31] Source: Mark Simone, Twitter

After rival network CNBC inappropriately handled the moderation of the third Republican Presidential primary debate, the RNC suspended its future debate scheduled with CNBC [23]. At this time FOX Business stepped up and requested to host the next debate.

The RNC agreed and stated that “Fox Business won’t become a character in the campaign soap opera”, something that CNBC was accused of doing in the prior debate [23]. CEO James Murdoch later stated that he was going to show America the way a real debate should be handled, giving time to the real issues of the economy and the future and not an entertainment show [23]. This move for FOX will not only help with ratings, it will also bring in significant cash. Because of its estimated 14 million viewer audience, it is estimated that each 30 second spot, will bring into Fox roughly $250,000 [23].

The Future

Assets of 21st Century Fox [26] Source: 21st Century Fox

21st Century Fox will continue to innovate and continue to bring in revenue for its shareholders. With its diverse and ever expanding portfolio, 21^st Century Fox will continue to be a a leader in the global entertainment industry. By continually investing and utilizing innovative methods to fight against cord cutting, 21^st Century Fox will continue to grow and produce strong earnings for its investors.

Breaking News!

The Primetime Emmy nominated show Bones is currently suing 20th Century Fox, a division of 21st Century Fox [24]. The lawsuit is being brought on by the actors and producers of the show. In the suit the plaintiffs claim that Fox made “sweetheart deals” that cheated them out of tens and millions of dollars [25]. Deschanel and Boreanaz, two of the stars of Bones, claim that they are contractually entitled to 3% of the shows profits. 21st Century Fox has not commented on the suit [24].

[1] “21st Century Fox.” Logopedia. Accessed December 02, 2015. http://logos.wikia.com/wiki/21st_Century_Fox.

[2] “21st Century Fox.” 21st Century Fox. Accessed December 01, 2015. https://www.crunchbase.com/organization/21st-century-fox#/entity.

[3] “21st Century Fox Success Story.” 21st Century Fox Profile, History, Founder, Founded, Ceo. Accessed December 01, 2015. http://successstory.com/companies/21st-century-fox.

[4] Lieberman, David. “It’s Official: James Murdoch To Become Fox CEO Sharing Power With Lachlan.” Deadline. June 16, 2015. Accessed December 01, 2015. http://deadline.com/2015/06/fox-james-murdoch-become-ceo-1201445613/.

[5] News, Bloomberg. “News Corp. Will Move Headquarters to 2 World Trade Center.” Latest from Crains New York Business. June 02, 2015. Accessed December 02, 2015. http://www.crainsnewyork.com/article/20150602/REAL_ESTATE/150609962/news-corp-will-move-headquarters-to-2-world-trade-center.

[6] Rinaldi, Eva. “Rupert Murdoch.” Digital image. December 21, 2012. Accessed December 2, 2015. https://en.wikipedia.org/wiki/Rupert_Murdoch#/media/File:Rupert_Murdoch_-_Flickr_-_Eva_Rinaldi_Celebrity_and_Live_Music_Photographer.jpg.

[7] “Lachlan Murdoch Exits Ten.” TelevisionAU. Accessed December 02, 2015. http://televisionau.com/2014/03/lachlan-murdoch-exits-ten.html.

[8] “James Murdoch Faces Shareholder Resistance Over Board Re-Election.” Deadline. November 20, 2014. Accessed December 02, 2015. http://deadline.com/2014/11/james-murdoch-faces-shareholder-resistance-over-board-re-election-1201290216/.

[9] “Investor Relations .” Investor Relations. Accessed December 02, 2015. http://www.21cf.com/Investor_Relations/.

[10] “FOX 2015-16 Season Ratings (updated 12/1/15) – Canceled TV Shows – TV Series Finale.” Canceled TV Shows TV Series Finale. December 01, 2015. Accessed December 01, 2015. http://tvseriesfinale.com/tv-show/fox-2015-16-season-ratings-38075/.

[11] “Index of /wp-content/uploads/2014/08.” Index of /wp-content/uploads/2014/08. Accessed December 02, 2015. http://marketbusinessnews.com/wp-content/uploads/2014/08/.

[12] “21st Century Fox Annual Report.” Accessed December 2, 2015. http://tcfeuspstrgektron.blob.core.windows.net/uploadedfiles/pages/investor_relations/21cf%202015ar%20web.pdf.

[13] Accessed December 2, 2015. http://a.fssta.com/content/dam/fsdigital/media/images/migration/press-releases/2014/05/06/121913-FSO-FOXSportsLogo-PI.vresize.1200.675.high.35.jpg.

[14] “FOXA’s Competition by Segment and Its Market Share.” Csimarket. Accessed December 1, 2015. http://csimarket.com/stocks/competitionSEG2.php?code=FOXA.

[15] “21st Century Fox Annual Report.” Accessed December 1, 2015. http://tcfeuspstrgektron.blob.core.windows.net/uploadedfiles/pages/investor_relations/21cf%202015ar%20web.pdf.

[16] “Twenty-First Century Fox Inc.” : NASDAQ:FOXA Quotes & News. Accessed December 02, 2015. https://www.google.com/finance?cid=25639.

[17] Laylin, Tafline. “National Geographic Contributors Embrace Fox Deal with Ample Cautio.” The Guardian. September 16, 2015. Accessed December 2, 2015. http://www.theguardian.com/media/2015/sep/16/national-geographic-21st-century-fox-merger-rupert-murdoch.

[18] “National Geographic Society and 21st Century Fox Agree to Expand Partnership.” National Geographic Society Press Room. September 09, 2015. Accessed December 02, 2015. http://press.nationalgeographic.com/2015/09/09/national-geographic-society-21st-century-fox-agree-to-expand-partnership/.

[19] Farhi, Paul. “National Geographic Gives Fox Control of Media Assets in $725 Million Deal.” Washington Post. September 9, 2015. Accessed December 02, 2015. https://www.washingtonpost.com/lifestyle/style/national-geographic-magazine-shifts-to-for-profit-status-with-fox-partnership/2015/09/09/7c9f034e-56f0-11e5-8bb1-b488d231bba2_story.html.

[20] Porter, Rick. “Rock Steady: The Most Consistently Rated Shows of Fall 2015.” TV By The Numbers by Zap2itcom. November 26, 2015. Accessed December 02, 2015. http://tvbythenumbers.zap2it.com/2015/11/26/rock-steady-the-most-consistently-rated-shows-of-fall-2015/.

[21] “Empire.” IMDb. Accessed December 02, 2015. http://www.imdb.com/title/tt3228904/.

[22] “A SPRAWLING EMPIRE: HOW FOX’S HIT TV SHOW AFFECTS MUSIC.” Nielsen. September 23, 2015. Accessed December 2, 2015. http://www.nielsen.com/us/en/insights/news/2015/a-sprawling-empire-how-foxs-hit-tv-show-affects-music.html.

[23] Gold, Hadas. “For Debate, Fox Business Aims to Be the Anti-CNBC.” POLITICO. November 9, 2015. Accessed December 02, 2015. http://www.politico.com/story/2015/11/fox-business-republican-debate-cavuto-bartiromo-215634.

[24] Patten, Dominic. “Fox “Cheated” ‘Bones’ Stars Out Of More Than $100M, New Profit-Participation Suit Claims.” Deadline. November 30, 2015. Accessed December 02, 2015. http://deadline.com/2015/11/bones-lawsuit-david-boreanaz-emily-deschanel-fox-barry-josephson-1201647064/.

[25] Balloni, Matthew. “‘Bones’ Producer Sues Fox for “Accounting Chicanery,” Claims Top Execs “Threatened” Him.” The Hollywood Reporter. November 25, 2015. Accessed December 02, 2015. http://www.hollywoodreporter.com/thr-esq/bones-producer-sues-fox-accounting-843854.

[26] Mussman, Jason Taylor. 21st Century Fox Brands. Digital image. Accessed December 1, 2015.

[27] “Twenty-First Century Fox Inc.” : NASDAQ:FOXA Quotes & News. Accessed December 02, 2015. https://www.google.com/finance?cid=25639.

[28] “Thoughts on Afghan Girl’s Third Cover Appearance as National Geographic Looks Back, Forward – Reading The Pictures.” Reading The Pictures. October 02, 2013. Accessed December 02, 2015. http://www.readingthepictures.org/2013/10/thoughts-on-afghan-girls-third-cover-as-national-geographic-looks-back-forward/.

[29] “Empire Review – Where Does Your Loyalty Lay? – Screen Sirens TV.” Screen Sirens TV. October 02, 2015. Accessed December 02, 2015. http://screensirenstv.com/empire-review-where-does-your-loyalty-lay/.

[30 ]Haskins, Justin. “CNBC Has Totally Discredited Itself Tonight with This Travesty of a Debate. The Questions Have Been Atrocious and Biased. #GOPDebate.” Twitter. October 28, 2015. Accessed December 02, 2015. https://twitter.com/TheNewRevere/status/659551198098386944?ref_src=twsrc%5Etfw.

[31] Simone, Mark. “The Big Winner of This Debate – FOX Business Network. CNBC Looking Too Biased, a Little Sleazy and Untrustworthy #GOPDebate #CNBCGOPDebate.” Twitter. October 28, 2015. Accessed December 02, 2015. https://twitter.com/MarkSimoneNY/status/659548475764420608?ref_src=twsrc%5Etfw.

[31] Poggi, Jeanine. “TV Ad Pricing Chart: ‘Sunday Night Football,’ ‘Empire’ Are Broadcast’s Most Expensive Ad Buys.” Advertising Age Media RSS. September 24, 2015. Accessed December 02, 2015. http://adage.com/article/media/ad-pricing-chart-sunday-night-football-empire-broadcasts-most-expensive-ad-buys/300516/.

A+E Television Networks- Carly Cott

Posted on April 17, 2015 by htfergus

by CARLY COTT

A+E Network logo image

HEADQUARTERS

235 E. 45^th Street

New York, NY 1001

www.aenetworks.com

KEY EXECUTIVES

Headshot of Nancy Dubue. Photo Credit N/A

Nancy Dubue

President and Chief Executive Officer, A+E Networks

Headshot of Robert DeBietto. Photo Credit N/A.

Robert DeBitetto

President, Brand Strategy, Business Development and A+E Studios, A+E Networks

ABOUT

With it’s beginning in 1984, A+E Networks has blossomed from a collaboration between The Hearst Corporation and The Walt Disney Company, into an international media company with 11 channels and six original brands. A+E stands for “Arts and Entertainment” and reaches nearly 160 markets worldwide, communicating to a wide array of over 60 different languages. A+E incorporates ten channels, A&E, Lifetime, Lifetime Movie Network, History, FYI, Crime and Investigation, History (Spanish), and Lifetime Real Women. Dance Moms on Lifetime, and Duck Dynasty on A&E together are two of A+E Networks top shows, as well as most watched shows.

HISTORY

In 1984, on February 1, the Arts and Entertainment Network, now more commonly known as A+E network, was formed and began broadcasting. A show called, “Biography” is then introduced the network in 1987, as a once-a-week-prime-time series. It was not until 1990 that A+E began commissioning episodes of “Biography”. Three years later, in 1993 the Rockefeller Group decided to sell its total interest in A+E to Hearst Corporation, ABC, and NBC. The official name change from Arts and Entertainment to A+E, was made in 1995, when “Biography” became a five nights a week screened show. The History channel and Biography Chanel International were then launched in November of 1998.

When the network began broadcasting on February 1, 1984, the network hit 1,500-cable systems with nine million subscribers. The British Broadcasting Corporation (BBC), give the network a range of rights to British programming. In just the first year, over 60 percent of A+E’s programming came from the BBC. Excitingly, the network turned its first profit in 1987, and within the year had revenues surpassing $50 million. Cable subscribers upped to a whopping 37 million, and between 1987 and 1997, the networks average growth stunted at 30 percent per year in profits and revenues.

By 2001, the History channel hit a 70 million-subscriber mark, making it the fastest growing cable network since its launch. Following, in 2009 A+E Networks combined with Lifetime Entertainment. This year, the company celebrated 30 years, and is thought to be worth around $26 billion.

FINANCIALS

A+E is a privately owned company, so there were no public financials to be found.

COMPANY NEWS

On March 17^th it was announced after 11 years working for A+E, Neil A. Cohen is leaving the network to join UTA as an Alternative TV department agent. Cohen will now be based in the New York and work with talent in cable and network. He worked at A+E as the Senior Vice President of Talent and Production, giving him what Brett Hansen noted as, “an unbeatable combination”.

Elaine Frontain Bryant and Paul Cabana. Photo courtesy of A+E Networks.

On March 18^th, it was announced that A+E had promoted their two senior programming executives after the departure of previously mentioned David McKillop. Elaine Bryant who worked as Senior Vice President of Programming moved into her position as Executive Vice President and head of programming for the A&E Network. Paul Cabana also got to Executive Vice President and head of programming for History and H2. He had previously been posted as the Senior Vice President and head of programming for H2. Bryant reports to Rob Sharenow, and Cabana reports to Dirk Hoogstra. Hoogstra and Sharenow noted both executives as being, “vital to the success of A+E Networks”.

Liz Gately. Photo Credit N/A

Liz Gateley is returning to the executive ranks and to Lifetime. Gateley has been named Executive Vice President and Head of Programming for the network. She from now on will be the head honcho in charge of movies, scripts, and unscripted series development. Lifetime has had an absent spot for head of programming since JoAnn Alfano. At the time, Lifetime was put under the watchful eye of A+E Networks’ own Nancy Dubuc.

HIGHLIGHTS/LOWLIGHT OF SPRING 2015

Spring 2015 was maybe not as exciting as Fall 2014, but had some action. Weather it was the launch of the new history website x, the collaboration and production of a new production and distribution company, or the return of a hit series, A+E Network continues to moves in a forward and upward motion into the Summer months

April 13^th, it was announced that A+E Network is launching an “Asterisk Internet Media Brand” with new spins on history, trying to spice things up a bit. So what’s the point of it all? A+E says the point is to, make history worldwide seem “less like homework”. The website, “Asterisk” features stories looking deep into contemporary culture and entertainment throughout the span of history. The site is aimed at the millennial generation, and includes mass amounts of visual stimulation, videos, photos, etc. As of the launch, the site does not have any marketing partners, but A+E says those deals are in the works. The site is split into 10 different categories including, life skills, sports, people, food and drink, ideas, arts and entertainment, work, style, travel, and tech. Evan Silverman, Senior Vice President of Digital Media for A+E Networks, says “People tend to think about history as Abraham Lincoln, but we can provide context to contemporary people, trends or places”. Silverman hopes to give viewers a daily dose of history in a new and innovative way, making it user friendly, and relevant to today’s culture.

On March 20^th, it was announced that Howard T. Owens, former National Geographic Channel president, is going back to independent TV production. The launch of a new production and distribution company, “Propagate Content”, will be run by Owens and partner David McKillop. McKillop has worked as Senior Vice President of Development and Programming at History, then as Executive Vice President of Programming for A&E, eventually moving on to work as Executive Vice President and General Manager for A&E channel. A+E Network is an equity partner for the new company, “Propogate Content”.

It was announced on January 9^th the hit series “Mountain Men” was retuning for a fourth season. The show follows six men whoa re living far from civilization, using survival skills, hunting skills, and skillful cunning efforts to stay alive, clothed, and fed. The men face chaos in the unpredictable series that prepares them for the unpredictable.

SOURCES

(1) http://www.fundinguniverse.com/company-histories/a-e-television-networks-history/

(2) http://deadline.com/2015/03/neil-cohen-joins-uta-ae-networks-executive-1201394219/

(3) http://deadline.com/2015/03/howard-t-owens-david-mckillop-production-company-ae-networks-propagare-1201401158/

(4) http://www.aenetworks.com/article/mountain-men-returns-history-spring-2015

(5) http://variety.com/2015/digital/news/ae-launches-asterisk-internet-media-brand-with-new-spins-on-history-exclusive-1201470981/

(6) http://www.hollywoodreporter.com/news/a-e-at-30-how-690921

(7) http://www.aetv.com

(8) http://www.aenetworks.com/article/ae-studios-announces-first-look-development-deal-feature-film-and-television-producer-rachel

(9) http://www.aenetworks.com/article/ae-network-premieres-new-series-neighbors-benefits-sunday-march-22-10-pm-etpt

(10 )http://www.aenetworks.com/news

Focus Features

Posted on November 19, 2013 by Daniel Fabi

By Dan Fabi

Focus Features Logo courtesy of FocusFeatures.com

Locations

LOS ANGELES OFFICE

100 Universal City Plaza

Universal City, CA 91608

NEW YORK OFFICE

65 Bleecker Street – 3rd Floor
New York, NY 10012

INTERNATIONAL OFFICE

26 Aybrook Street

London W1U 4AN

United Kingdom

History

Focus Features is a subdivision of NBCUniversal, which primarily specializes in art films aimed at niche markets rather than mass market audiences [1]. Focus Features allows the directors of the films they produce to have a final say in the editing room to produce the film that they had initially envisioned, creating a successful brand of art house films [2]. Last year, the company celebrated its ten-year anniversary after being established in May 2002 through the merger of USA Films and Good Machine. Focus’s first widely released film was The Pianist, which received three Academy Awards for best actor, best director, and best adapted screenplay [3].

Adrien Brody wins the Oscar for best Actor in "The Pianist" (2002)

Photo Courtesy of the Associatedv Press

Key Executives

James Schamus
Photo Courtesy of news.uchicago.edu

James Schamus, Founder and Outgoing CEO

Prior to forming Focus Features, James Schamus was the co-president of production company Good Machine, which he founded in 1991. Eleven years later, Schamus merged with USA Films to create Focus Features. Schamus is also an Academy Award nominee, receiving screenwriting and original score nominations for his work on Good Machine’s Crouching Tiger Hidden Dragon [4].

Peter Schlessel
Photo Courtesy of Deadline.com

Peter Schlessel, Incoming CEO

Formerly, Schlessel had founded FilmDistrict and was President for GK Films. GK has produced films such as Argo, Hugo, and World War Z. In January 2014, Schlessel’s term as Focus Features’ CEO will commence [5].

Andrew Karpen
Photo Courtesy of hollywoodreporter.com

Andrew Karpen, Outgoing Co-CEO

Karpen joined the Focus Features executive team over a year after it formed as the company’s COO. In May 2013, he was promoted to co-CEO. As Co-CEO, Karpen controlled Focus’s domestic and international activities. Before joining Focus Features, Karpen was Senior Vice President, finance of Oxygen Media, another subsidiary of NBCUniversal [6].

Adrian Alperovich
Photo Courtesy of homemediamagazine.com

Adrian Alperovich, Incoming COO

In May 2012, Alperovich was appointed Chief Operating Officer of FilmDistrict. Alperovich has been appointed to retain the title as his production company is absorbed by Focus. In January 2014, Alperovich’s term as Focus Features’ COO will commence [7].

Robert T. Gibson
Photo Courtesy of stage.nbcuni.com

Robert T. Gibson, CFO and Senior VP, Finance

In Mid-2004, Gibson joined Focus Features as Director, Finance and Strategic Planning. In 2009, he was appointed the company’s CFO. Gibson will follow the relocating of Focus Features headquarters to Los Angeles after previously being based in the company’s east coast offices [8].

Financials

In 2005, Focus Features released its highest grossing film, Brokeback Mountain. The film grossed over $83 million and received Oscars for best director, best adapted screenplay, and best original score [9]. In 2013 thus far, Focus has released six films, gaining a gross profit of $86.4 million. In 2012, the company received a gross profit of $131.2 million from eight films. By November of 2012, the company’s total gross from the six films they released was $109.1 million, most of which came from animated blockbuster film, Paranorman, with a total gross of over $56 million. From November 2012 to November 2013, Focus Features has seen a 21% drop in total gross [10].

Restructure

On October 1^st, 2013, Universal Pictures announced a restructuring of Focus Features caused by the production company’s owner, Comcast. Focus absorbed FilmDistrict and appointed many of the members of FilmDistrict’s production team. Peter Schlessel will replace James Schamus as the new CEO. Other transferring executives include Adrian Alperovich, former COO of FilmDistrict and incoming COO for Focus. After given the opportunity to relocate to Focus Features’ new headquarters in Los Angeles, former co-CEO of Focus, Andrew Karpen, chose to remain in New York City with his family [11].

Photo Courtesy of FilmDistrict

The reconstruction of Focus Features was meant to strengthen the company’s commercial competition with their rivals, some of which include DreamWorks Studios, Lions Gate Entertainment, and The Independent Film Channel LLC. By restructuring the company, Focus Features will begin producing films with more commercial potential [12].

Alison Thompson, head of Focus Features International

Alison Thompson
Photo Courtesy of hollywoodreporter.com

Along with the reconstruction of the executive team, the New York offices of Focus Features will be closed at an unspecified date and business will continue on the west coast [13]. On December 31^st, 2013, Focus Features International is set to close its headquarters. Alison Thompson, co-president of Focus International, will continue to run the department of Focus Features from outside of its London headquarters. The announcement has jolted the American Film Market, a major buyer of Focus International [14] [15].

Recent Film Releases

Dallas Buyers Club

Photo courtesy of critic.de

On November 1^st, Focus Features released the film Dallas Buyers Club to several select cities. The film tells the true story of a severely homophobic man, Ron Woodroof whom in 1985 is diagnosed with HIV, a disease he believed only homosexuals could catch. He then teams up with a group to form a “buyers club;” a group dedicated to purchasing medicines that they could not obtain in the United States. The film is rated R for profanity, violence, and nudity [17].

Photo Courtesy of UPI/Christine Chew

Due to it’s limited release, the film opened in nine theaters and gained $350,000 in its first week. As of November 17^th, the film has made about $3 million domestically. The film is directed by Jean-Marc Vallee and is starring Matthew McConaughey, Jared Leto and Jennifer Garner [18]. The film has gained much attention for its informational portrayal of the HIV virus as well as its groundbreaking performances by the lead actors. Lead actors McConaughey and Leto have been predicted for Oscar nominations by some of the industry’s top critics.[19].

The World’s End

Photo Courtesy of reggiestake.com

On August 23^rd, 2013, Focus released one of its highest grossing films of the 2013 fiscal year thus far called The World’s End. In it, a team of friends retries their “pub crawl” attempt, which they had failed 20 years earlier. The crawl involves twelve pubs in which each member must complete a pint of beer before they can move onto the next. The final pub, “The World’s End,” is the ultimate destination and one that the group failed to reach 20 years ago. Gary King, played by Simon Pegg, leads his team to the ultimate goal until they find that humankind is at stake [20].

Blu-Ray package Edgar Wright's Cornetto Trilogy box set

Photo Courtesy of edgarwrighthere.com

The film was largely anticipated largely due to the reunion of the famed team of Director Edgar Wright and actors Simon Pegg and Nick Frost. The three have worked together on two previous films, Shaun of the Dead (2004) and Hot Fuzz (2007) [21]. The World’s End is the final installment of what’s known as the “Cornetto trilogy” due to the films’ ever-present color schemes that relate to some of the company’s ice cream flavors.

Upcoming Film Releases

Fifty Shades of Grey

Photo Courtesy of Amazon.com

In May 2011, the novel Fifty Shades of Grey was released and immediately became a widespread smash. Focus Features subsequently picked up the movie rights to the series for $5 million. The film has an estimated budget of around $40 million [22].

The film (and book) is about literature student Anastasia Steele who through a business interview meets billionaire entrepreneur Christian Grey. The man, who is tormented by his inner demons, explores an intimate relationship with Steele. The two launch into graphic and descriptive bouts of sexual fantasy [23].

Entertainment Weekly cover for the stars of "Fifty Shades of Grey," Jamie Dornan and Dakota Johnson

Photo Courtesy of Entertainment Weekly

Fifty Shades of Grey has been a large topic of conversation in the media and one whose details have been kept hidden. There have been numerous rumors of casting and some announcements of cast dropouts. Pacific Rim actor Charlie Hunnam announced that he was dropping out from being the title character, Christian Grey. Since then, Jamie Dornan has been hired, an actor who has appeared in Marie Antoinette and the ABC show Once Upon a Time [24].

Sources

[1] Focus Features Description

[2] Ten Years of Focus Features Anniversary Video

[3] The Pianist Film Awards

[4] James Schamus Bio

[5] Focus Features to Absorb FilmDistrict

[6] Andrew Karpen Bio

[7] FilmDistrict Names Three New Marketing Executives

[8] Robert T. Gibson Bio

[9] Brokeback Mountain Film Awards

[10] Box Office Mojo – Focus Features All Time

[11] Focus Features Brings in Majority of FilmDistrict Team Post Shake-Up

[12] Focus Features Hoovers Profile

[13] Focus Features New York Office to Close

[14] Focus Features International Will Close Doors Dec. 31

[15] AFM Adjusts to Life After Focus Features Int’l

[16] Box Office Mojo – Focus Features Future Releases

[17] IMDb – Dallas Buyers Club

[18] Box Office Mojo – Dallas Buyers Club

[19] Rotten Tomatoes – Dallas Buyers Club

[20] IMDb – The World’s End Plot Summary

[21] IMDb – Edgar Wright

[22] Fifty Shades of Grey Film Facts

[23] Fifty Shades of Grey Plot Summary

[24] Fifty Shades of Grey Casting

Netflix

Posted on October 28, 2013 by Jamie Zaslav

By Jamie Zaslav

-Netflix Corporate Logo- [18]

Netflix Corporate Headquarters

100 Winchester Circle

Los Gatos, CA 95032

Tel: (418) 540-3700

Fax: (418) 540-3737

Email: info@netflix.com

www.netflix.com

Brief History:

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

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

Key Executives:

Reed Hastings, Co-Founder & CEO

Co-founder & CEO Reed Hastings, Courtesy of Netflix

David Wells, CFO

CFO David Wells, Courtesy of Netflix

Neil Hunt, CPO

CPO Neil Hunt, Courtesy of Netflix

Ted Sarandos, Chief Content Officer

Chief Content Officer Ted Sarandos, Courtesy of Netflix

Kelly Bennett, Chief Marketing Officer

Chief Marketing Officer Kelly Bennett, Courtesy of Netflix

About:

Photo courtesy of Netflix [19]

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

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

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

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

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

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

Finances:

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

Growth:

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

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

Content:

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

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

Competitors:

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

Sources:

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

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

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

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

[5] “Binge Watching” (11/13/13)

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

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

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

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

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

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