Scripps Interactive

Posted on October 16, 2016 by amsortal

By Ryan Lannum & Aaron Sortal

[1] Scripps Interactive Network Logo

Brief History [1]

Scripps Networks Interactive began in 1878 when Edward W. Scripps founded The Penny Press in Cleveland, Ohio. Jump forward a 100 years and Scripps Networks Interactive began buying and building cable television systems, making it one of America’s largest cable operators, which was later sold to Comcast. In the 1990s, Scripps Network Interactive began building their media network. After the purchase of Cinetel Productions, a Knoxville-based cable creator, it launched HGTV in 1994.

[1] Source: WBIR-TV 10 Knoxville / Scripps Network Interactive

After the launch of HGTV, Scripps Networks started more lifestyle networks including: Food Network (1997), DIY Network (1999), Fine Living Network (2002), Great American Country (2004), and Travel Channel (2009). The organization describes itself as a “niche broadband [of] channels that extend the core brands’ presence on the Internet with advertiser-supported, on-demand content” (Scripps Networks Interactive).

In 2007, the board of directors decided to split The E.W. Scripps Company into two publicly-traded companies. One of the organizations would concentrate on national television lifestyle brands and the other focus on innovative and enduring local media businesses.

Financials

Stock er-er the last 5 years [2]

Scripps Networks Interactive, Inc. has done very well financially the last few years. At the end of 2015, Scripps’ revenue totaled $3.02 billion, with a total net income of $606.83 million [2]. This is a great increase from the previous years, as its 2014 net income totaled 545.28 million, and its 2013 net income totaled $505.07 million. Their total net incomes are increasing at a steady rate, and will likely continue in the coming years. While their stock price is lower than it was five years ago, it being at $70.06 now and 76.50 then, it has increased greatly in the past year, with the price being only $59.04 in November of 2015.

In the fall of 2016, Scripps Networks reported a 6.6 percent increase in advertising revenues, which totaled to a $477.5 million in advertising revenue during the quarter [3]. This jump in advertising revenue also added to five of the six networks having a ratings boost. Focusing on ads that connect to the demographics that watch their channels resulted in tremendous success both in viewership and in revenue. The need for advertising revenue caused a major problem when it came to a subscription video on demand service deal with Netflix.

Netflix Deal Not Renewed for a New Season

Netflix Desktop [4]

During the fall of 2016, Burton Jablin, Scripps Networks Interactive’s COO, announced the organization would not be renewing its digital distribution deal with Netflix on the company’s quarterly earnings conference call [5]. This isn’t the first-time Scripps Networks Interactive has ended a subscription video on demand deal with a media distributor [6]. In February 2013, Scripps Networks Interactive had a deal with Amazon. That deal ended in March 2014. This prompted the Netflix and Scripps Networks Interactive deal that ended this past November. According to a Variety.com article, Scripps Networks could have lost about $11 million of licensing revenue from Amazon [6]. Unlike the deal with Amazon, the CEO of Scripps Networks Interactive, Kenneth Lowe, commented on the company’s decision to leave Netflix. Lowe stated that a major reason for leaving Netflix was the loss of advertising dollars [7], which brought-in roughly $445 million dollars in revenue during the last quarter [3]. Jablin said in a Variety.com article: “In the end, it really is not the kind of dual-revenue model that best monetizes our content over the long term” (Spangler). [8] Over the past couple of months, Netflix has removed content from its database because the company wanted to create room for its original content. All of Scripps Network’s shows will not be removed until the end of the year [7]. Some of the shows that are being removed are: “Cupcake Wars,” “Chopped,” and “Man v. Food.”

AT&T Long-Term Distribution Agreement

http://www.csc.com/global_alliances/alliances/112505-at_t

AT&T Logo [9]

In September of 2016, Scripps Interactive reached a deal with AT&T, in which they agreed for a continuation of distribution of Scripps Networks for DIRECTV [10]. This deal will be made for multiple years, ensuring that DIRECTV will continue its widespread distribution of the Scripps Network channels. They also agreed to include Scripps Networks on DIRECTV’s streaming service, DIRECTV NOW. Programs on channels such as HGTV, Food Network, Travel Channel, DIY Network, Great American Country, and Cooking Channel are included to be distributed through this deal.

As DIRECTV has over 20 percent of the market share of cable providers in the US, this deal will assist in allowing Scripps Networks’ programs to be distributed to as many people as possible [11]. DIRECTV is also expected to grow in market share in the next decade, so this deal will continue the great relationship Scripps has with AT&T. With DIRECTV NOW launching at the end of November, it will also allow people whom prefer to stream their content the chance to view Scripps Network shows [12]. The portability of DIRECTV NOW will allow its customers to view Scripps Network shows at anywhere at any time, which will increase the flexibility and make it more likely that the shows will be viewed a lot more often than before. DIRECTV NOW is also a lot cheaper alternative to established cable packages, so the low cost may also bring in a lot more viewers, in which can increase Scripps’ revenue and exposure.

DirecTV NOW Informational Video [13]

Pluto TV Financing

Pluto TV Logo [14]

Pluto TV is a television platform launched in 2014, which is solely internet-based [14]. They play content from over 75 different partners, including NBC, Bloomberg, Sky News, and Paramount Pictures [15]. The format is basically the same as a television network, as the programs are played in different time slots, as opposed to letting the viewer decide what they want to watch whenever they want to watch it.

In October of 2016, Scripps Networks participated in a $30 financing round, which was led by ProSiebenSat.1. With this participation, this will allow Pluto TV to air a great amount of Scripps’ content, giving more exposure and potential revenue as a result. Pluto TV is also available for free, so even people without cable can have access to Scripps’ content. With this plus the AT&T deal involving DIRECTV NOW, it can definitely be shown that Scripps Networks is investing a lot of money into online streaming services, as they can see the market for internet-based content is growing every year. If regular cable tv ends up being less popular and streaming services become the most used service to access television, Scripps will be ahead of the change and be able to retain and potentially gain a lot of revenue for the future.

Pluto TV Advertisement[16]

Sources

[1] Scripps Networks Interactive. “ History.” History | Scripps Networks Interactive, www.scrippsnetworksinteractive.com/our-company/history/.

[2] “SNI Income Statement – YahooFinance.” Yahoo! Finance, Yahoo!, finance.yahoo.com/quote/SNI/financials?p=SNI.

[3] Littleton, Cynthia. “HGTV, Advertising Gains Power Scripps Networks Interactive’s Q3 Earnings.” Variety, 7 Nov. 2016, variety.com/2016/tv/news/scripps-networks-interactive-q3-hgtv-travel-channel-1201911392/. [3] Littleton, Cynthia. “HGTV, Advertising Gains Power Scripps Networks Interactive’s Q3 Earnings.” Variety, 7 Nov. 2016, variety.com/2016/tv/news/scripps-networks-interactive-q3-hgtv-travel-channel-1201911392/.

[4] Sebastian. “How to Watch Netflix While Abroad .” TigerVPN Blog, 4 May 2016, blog.tigervpn.com/howtowatchnetflixwhileabroad/.

[5] Szalai, Georg. “Scripps Networks Won’t Renew Netflix Deal, CEO Says ‘We’Re Big Enough.’” The Hollywood Reporter, 7 Nov. 2016, www.hollywoodreporter.com/news/scripps-networks-wont-renew-netflix-deal-ceo-says-were-big-944709.

[6] Spangler, Todd. “Amazon Drops Discovery and Scripps Shows, with Scripps the Bigger Loser.” Variety, 26 Mar. 2014, variety.com/2014/digital/news/amazon-drops-discovery-and-scripps-shows-with-scripps-the-bigger-loser-1201147369/.

[7] Faulkner, Trisha. “Netflix Loses Scripps Networks Interactive Contract: Say Goodbye To HGTV, Food Network, Travel Channel, And More.” The Inquisitr News, 12 Nov. 2016, www.inquisitr.com/3709928/netflix-loses-scripps-networks-interactive-contract/.

[8] Spangler, Todd. “Netflix Losing Food Network, HGTV, Travel Channel Shows at End of 2016.” Variety, 9 Nov. 2016, variety.com/2016/digital/news/netflix-scripps-food-network-hgtv-travel-channel-shows-1201913874/.

[9] “AT&T.” Computer Sciences Corporation, CSC, www.csc.com/global_alliances/alliances/112505-at_t.

[10] “Scripps Networks Interactive, AT&T Sign Long-Term Multi-Platform Distribution Agreement.” Nasdaq GlobeNewswire , GlobeNewswire, 22 Sept. 2016, globenewswire.com/news-release/2016/09/22/873822/0/en/Scripps-Networks-Interactive-AT-T-Sign-Long-Term-Multi-Platform-Distribution-Agreement.html.

[11] Munson, Ben. “Top 9 Cable, Satellite and Telco Pay-TV Operators in Q1: Ranking Comcast to TWC to Charter to Cablevision.” FierceCable, 11 May 2016, www.fiercecable.com/special-report/top-9-cable-satellite-and-telco-pay-tv-operators-q1-ranking-comcast-to-twc-to.

[12] Rogowsky, Mark. “Is DirecTV Now The Video Service Cord Cutters Have Been Waiting For?” Forbes, Forbes Magazine, 29 Nov. 2016, www.forbes.com/sites/markrogowsky/2016/11/29/is-directv-now-the-video-service-cord-cutters-have-been-waiting-for/#7781ae8330ef.

[13] CNET. “DirecTV Now Offers 100 Channels of Live TV Starting at $35 a Month.” YouTube, YouTube, 28 Nov. 2016, www.youtube.com/watch?v=040r9p0oijk.

[14] “What Is Pluto Tv?” Pluto TV, Pluto TV, corporate.pluto.tv/.

[15] Pham, Alex. “Pluto TV Lands $30M Financing From Scripps Networks And ProSiebenSat.1.” Forbes, Forbes Magazine, 12 Oct. 2016, www.forbes.com/sites/alexpham/2016/10/12/pluto-tv-lands-30-million-financing-from-scripps-networks-and-prosiebensat-1/#16d668db4e3f.

[16] PlutoTV. “Pluto.TV: Watch What’s Possible.” YouTube, Pluto TV, 31 Mar. 2014, www.youtube.com/watch?v=atNBbc6ofiE.

IAC

Posted on December 1, 2014 by jypirogo

by Jacob Pirogovsky

IAC began in 1986 and was originally called the Silver King Broadcasting Company and was owned by the Home Shopping Network. Later in 1992, it became its own publicly traded company. The company went through a series of name changes from USA Networks, Inc. to USA Interactive, before finally changing it to IAC/InterActiveCorp in July of 2004. Since that time IAC/InterActiveCrop has been acquiring a variety of companies in a very wide array of different fields. They divide their holdings into four main groups: Search and Applications, The Match Group, Media, and eCommerce. Each of these groups has a plethora of companies, as seen in the image below, all of which influence the decisions and finances of InterActiveCorp as a whole.

All 4 segments broken up, with revenue information. SOURCE: Berkeley Investment Group

This period* has seen a lot of changes for IAC, as well as its subsidiaries. One major one was that Bonnie Hammer, the chairman for NBCUniversal Cable was appointed to the board of IAC in September by IAC’s CEO Barry Diller, who says “She’s a superb businesswoman, programmer and brand builder.” With her expertise in the television industry, she will be able to give the company insight into growing audiences and as a very influential social activist she will be able to attract some positive press for IAC, especially in light of the drama surrounding Tinder’s executives.

In early September a court case was settled between one of Tinder’s co-founders, Justin Mateen, and an early employee, Whitney Wolfe, who accused Mateen of sexual harassment. IAC reached a settlement with Wolfe so that it wouldn’t go to trial, but

2 of Tinder’s Co-Founder’s – Sean Rad (left) and Justin Mateen (right). SOURCE: Forbes

everything was deemed confidential so much of what happened is unknown to the public. Mateen left the company after being suspended in July. Now, in November Tinder’s co-founder and CEO Sean Rad has been forced to step down by IAC. The news came to him while he was at the Forbes 30 Under 30 Summit in October, where he was about to announce that Tinder was going to monetize. Both of these things have big implications for Tinder and IAC. The app has grown 600% in the last year and has 30 million users who collectively check out 1.2 billion other users. With the new premium model, revenue predictions for 2015 are about $150 million. Rad, who will remain on the board of Tinder, is working with Matt Cohler, a partner at Benchmark and a newcomer to the Tinder board, to find a new CEO for the company.

SOURCE: Forbes

In terms of other finances, IAC released a third quarter earnings report for 2014 at the end of October. According to Yahoo! Finance, the company earned about $30 million more than analysts had predicted for this quarter. Overall, it has had 3% growth in the last year. In The Match Group, revenue increased by 12% and in the eCommerce segment, HomeAdvisor’s revenue grew 20%, with an overall growth of 14% in the segment. In the third quarter Search & Applications decreased 3% in the last year. Meanwhile, in the Media segment of IAC, Vimeo revenue increased by 30% and now has more than 530,000 subscribers; however, overall the Media revenue went down 1% in the last year.

IAC’s stock over the past year on the NASDAQ. SOURCE: Bloomberg Markets

Very recently in early November, Mindspark (an IAC subsidiary) acquired Apalon, a company that develops applications for Apple and Google Play, and whose apps have had more than 100 million downloads in the past year. “The combination of Apalon’s world-class mobile app development skills with Mindspark’s proven ability to distribute digital applications at scale is a huge differentiator and strategic advantage in the marketplace,” said Eric Esterlis, co-president of Mindspark. The two companies will complement each other and will help fight the decrease in revenue in the Search and Application segment of IAC.

SOURCE: About.com

Another revenue booster for that segment is the redesign of About.com’s website. The site hadn’t been redesigned since 2007, so the re-launch of the site in September has had some profound effects on users. On average they stayed on the site 24% longer and viewed 18% more articles than before the redesign. Additionally, the previous design was built to come up higher in Google searches to increase cost-per-click ad revenue; however, because Google’s algorithm is always changing and to decrease dependency on this type of ad, the site is now making more deals with advertisers to sponsor different sections of the site.

In the eCommerce segment, the EVP and CFO of Shoebuy.com, John Foristall was selected as an honoree “40 Under 40” award, which is given out annually by the Boston Business Journal to people who have made a major impact in their field. In addition, the company partnered with Rodgers and Hamerstein’s Cinderella to launch a limited collection of special occasion footwear inspired by the show. The cooperation helped increase the overall revenue of the segment.

In the media segment, Aereo, an online streaming service that offered live and recorded programs, filed for bankruptcy protection in November, after losing a major court case. The company was said to have violated programming copyright protections, according to a Supreme Court decision. The startup was beginning to revolutionize broadcast TV viewing, and even though it ended up failing, it will most likely lead to future attempts of a similar service.

SOURCE: Bloomberg WEST

Up until the past few years, Vimeo, another one of IAC’s media holdings, was having a hard time figuring out how to monetize, other than through subscription users. Now through Vimeo On Demand, their on demand platform, they have an additional revenue stream. In October, they made deals with two big YouTube producers, Phil DeFranco and the Orchard online network, which put their content onto Vimeo as well. Additionally, Vimeo just had their first original series, “High Maintenance,” premiere in November. According to Indiewire, the show is the future for web series and indie television. The series directors were in ongoing talks with FX to bring the show to cable, but ended up cancelling because they didn’t want to lose creative control. In light of that they made a deal with Vimeo for the financing. As Vimeo caters more towards industry professionals, the high production value show has found the perfect home and will bring more revenue to the site. Even though the show has always been on Vimeo, they are now promoting it; and they have given the series it’s own channel and have begun charging 1.99 per episode. This doesn’t seem to be a deterrent because according to Vimeo CEO Kerry Trainor, “High Maintenance” made more money in the first two days after it released and charged for episodes than it would have made with YouTube ad sales over the past two years.

High Maintenance // Stevie from Janky Clown Productions on Vimeo.

Overall, IAC/InterActiveCorp has had a very busy semester with lots of acquisitions and new deals being made to stay up to date in today’s ever changing fast-paced media driven world. As the year comes to an end, Ask.com recently released the top searches of 2014, marking a comeback in the struggling site. Looking ahead, in all four sectors of the company, IAC plans to maintain and increase its status as the 13th largest network in the world.

*a period from August 25th – December 1st 2014

KEY EXECUTIVES:
Barry Diller – Chairman & Senior Executive
Victor Kaufman – Vice Chairman
Jeff Kip – Executive VP & CFO
Greg Blatt – Chairman, The Match Group

Address:
555 West 18th Street
New York, NY 10011
Phone: 1-212-314-7300
Company URL: iac.com

Sources:

Forbes.com: Tinder harassment settlement, Tinder monetizing/new CEO
Variety.com: Bonnie Hammer story
Tvbythenumbers: Hammer’s social activism information
IAC.com: Q3 report, Brand homepages, executives, Press Releases
Yahoo! Finance: IAC financial information
Bloomberg.com: Aereo story, Vimeo’s new content
IndieWire.com: High Maintenance information
The Hollywood Reporter.com: Vimeo On Demand information
Fastcompany.com: About.com redesign

Images/Video:

-Forbes.com: Tinder Co-Founders, Sean Rad Interview
-Bloomberg.com: Aereo Interview, IAC Stock Chart
-Berkeley Investment Group: IAC breakdown chart
-About.com: Website redesign
-Vimeo.com: High Maintenance episode

CBS Radio

Posted on October 5, 2014 by chport

by Carly Port

[a] Photo Courtesy of www.billboard.com; CBS Radio Logo

By Carly Port

CONTACT INFORMATION [1]

1271 Avenue of the Americas FL 44

New York, NY 10020

(212) 649 – 9600

www.cbsradio.com

ABOUT CBS RADIO

CBS Radio operates as a division of Columbia Broadcasting System and as one of the leading providers of original media content across an array of platforms. CBS Radio delivers material to an audience of over 72 million and owns and operates 126 radio stations in 27 markets [2].

CBS made its debut network broadcast on September 18, 1927 at 3 p.m. Sixteen stations from Providence to St. Louis were present that Sunday. In January 1941, CBS launched Latin American stations in eighteen countries [3]. In 1974, CBS Radio reignited the radio drama craze with its introduction of CBS Radio Mystery Theater [3]. In November 1995, CBS was bought out by Westinghouse Broadcasting [4]. CBS Radio became a part of Infinity Broadcasting in June of 1996. In September of 1999, reports announced that Viacom would acquire CBS Corporation for nearly 37 billion dollars [5]. Finally, in 2005, Infinity Broadcasting rebranded itself as the new and current CBS Radio [6].

Key Executives

[b] Photo Courtesy of www.cbsradio.com; CBS Radio President & CEO Dan Mason [7] 2008 Most Powerful Person in Radio

[c] CBS Local Media Chief Operating Officer Anton Guitano

[c] Photo Courtesy of www.cbsradio.com; CBS Local Media Chief Operating Officer Anton Guitano

[d] Photo Courtesy of www.cbsradio.com; CBS Radio Executive Vice President, Operations New York Market Manager Scott Herman

[e] Photo Courtesy of www.cbsradio.com; CBS Radio President of Sales Michael Weiss

[f] Photo Courtesy of www.cbsradio.com; CBS Logal Digital Media President Ezra Kucharz

In September, CBS Corporation added John Vilade as Vice President of National Digital Sales for CBS Local Media. In this position, from a strictly radio focus, Vilade will work directly with Michael Weiss to expand opportunities and conveniences for interested advertisers and expedite revenue expansion [8].

Additional Executive Biographies

TOP COMPETITORS

CBS Radio’s top competitors in the market are Iheartcommunications and Radio One [9].

INSIDE CBS RADIO {PLATFORMS}

Broadcast

CBS Radio provides industry-leading, play-by-play sports content to stations nationwide. CBS Radio Broadcast caters to over two dozen fan-favorite franchises of the NFL, NBA, NHL and MLB all over the board featuring the Boston Celtics, Chicago White Sox, Detroit Red Wings, New England Patriots, New York Giants and the New York Yankees. CBS Radio boasts beloved personalities as a key factor of its broadcast success such as Carson Daly, Ryan Cameron, Mike Francesa and Kevin and Bean to name a few [10].

Local Digital

CBS Local Digital Media accumulates well-known, dependable media brands providing consumers with a unique, “local” experience. This multimedia venture combines pertinent characteristics of CBS’s radio and television departments to create over twenty major market doorways into exposure of news, weather, traffic, sports and entertainment, industry-leading music and lifestyle sites. Portals into Radio.com offer live and on-demand visual and audio content and Eventful presents a terminal for event discovery. The on-the-go aspect of CBS Local Digital Media keeps nearly 50 million consumers content and happy on a monthly basis [11].

Mobile

CBS Radio has made listening to consumers’ favorite radio stations easier than ever. With CBS Radio’s new mobile approach, audiences can access their favorite sports outlets, latest-breaking news sources and most diversified music programs in the most portable manner yet, available as apps on an eclectic assortment of devices. Not only are 150 radio stations now available in mobile form, but also news clips and video interviews with the hottest athletes and artist can now be viewed on the majority of user-owned devices [12].

CBS Sports Radio

Only two years old, CBS Sports Radio is available in all of the Top 10 markets nationwide. A hybrid of CBS Radio and CBS Sports, CBS Sports Radio covers a vast range of sports and features experienced, renowned broadcasters such as Jim Rome, Tiki Barber, Doug Gottlieb and Scott Ferrall among many others [13].

FINANCIALS

[g] Photo Courtesy of www.finance.yahoo.com; CBS Corporation Stock Market Summary at the Close of 12/1/2014

At the end of the day on December 1, 2014, CBS Corporation was down 0.41% at $54.47 a share. The year change was down 7.63% and was lowest in October, at $48.91 a share. The highest stock price this year was in March at $67.55 a share [14].

CBS Corporation successfully ended its third quarter with revenues of $3.37 billion, a 2% increase from last year’s third quarter revenues of $3.30 billion. Recent successes can be attributed to CBS’s Television Networks, specifically Thursday Night Football. Net earnings decreased from last year’s third quarter revenues of $431 million to a current $400 million, related to increased foreign exchange rates [15].

CBS Corporation’s Executive Chairman Sumner Redstone summarized the company’s reaction to the third quarter statement [15]:

“CBS continues to succeed on the strength of its tremendous content… Les and his team are optimizing the Company for future growth at every turn, and I have the utmost confidence in their ability to increasingly drive shareholder value in these dynamic times of great opportunity [15].”

WHAT’S GOING ON?

Michigan News Network

[h] Courtesy of www.allaccess.com; CBS Radio & Townsquare Media Partner to Create Michigan News Network

On September 2nd, CBS Radio and Townsquare Media partnered together to form a news and sports all-Michigan network, Michigan News Network. The network provides content for nearly twenty affiliate stations across the state of Michigan. MNN provides top-of-the hour updates Monday through Friday from 6 a.m. to 7 p.m. as well as 60-second sport broadcasts three times a day. CBS Radio will provide the original content while Townsquare Media will have exclusive syndication rights and deal with affiliate relations with stations ranging from Ann Arbor to Detroit. CBS Radio’s Detroit stations such as WWJ Newsradio 950 have always topped Michigan radio charts and have established themselves as the leading voices for Detroit, so the move towards providing content for the entire state has been readily anticipated [16].

“We are excited to be working with Townsquare to distribute our award-winning programming to listeners across the entire state of Michigan, while also realizing the highest value for our content.” –CBS Radio CEO & President Dan Mason [16]

“We Can Survive” Concert

[i] Photo Courtesy of losangeles.cbslocal.com; Pharrell Williams at the 2nd Annual We Can Survive Concert at the Hollywood Bowl

Hollywood Bowl attendees were in for the experience of a lifetime at CBS Radio’s second annual We Can Survive Concert. As part of CBS Radio’s special events platform and National Breast Cancer Awareness Month, two dollars of every ticket sold aided two organizations, Young Survival Coalition and Living Beyond Breast Cancer, which cultivate and assist families and women that have been touched by and endured breast cancer [17].

[j] Video Courtesy of https://www.youtube.com/watch?v=Ls1kyMl7af4

The night was filled with emotions and female-centered song choices with Pharrell Williams beginning his set through a narration of his personal accounts of dealing with cancer in his family and statements about the pertinence of females to mankind and survival. Williams performed an eclectic set, and was joined by Taylor Swift, Gwen Stefani, Ariana Grande, and Alicia Keys for her first year at the event, as well as other top-tier performers. The music performed covered everything from Country and R&B to Hip-Hop and Top 40 [17].

[i] Photo Courtesy of radio.com; Taylor Swift at the 2nd Annual We Can Survive Concert at the Hollywood Bowl

[k] Photo Courtesy of radio.com; Taylor Swift at the 2nd Annual We Can Survive Concert at the Hollywood Bowl

Multimedia Sources:

[a] CBS Radio Logo From 07 March 2013. Retrieved 01 December 2014.

[b] Dan Mason Retrieved 01 December 2014.

[c] Anton Guitano Retrieved 01 December 2014.

[d] Scott Herman Retrieved 01 December 2014.

[e] Michael Weiss Retrieved 01 December 2014.

[f] Ezra Kucharz Retrieved 01 December 2014.

[g] CBS Corporation Market Share Updated 01 December 2014. Retrieved 01 December 2014.

[h] Michigan News Network From 26 August 2014. Retrieved 01 December 2014.

[i] 2nd Annual We Can Survive Concert Pharrell Williams From 25 October 2014. Retrieved 01 December 2014.

[j] 2nd Annual We Can Survive Concert Behind the Scenes Video From 25 October 2014. Retrieved 01 December 2014.

[k] 2nd Annual We Can Survive Concert Taylor Swift From 25 October 2014. Retrieved 01 December 2014.

Text Sources:

[1] CBS Radio Contact Information Retrieved 01 December 2014.

[2] About CBS Radio Retrieved 01 December 2014.

[3] CBS Radio Timeline Updated 21 May 2012. Retrieved 01 December 2014.

[4] Westinghouse Buys CBS New York Times From 02 August 1995. Retrieved 01 December 2014.

[5] Viacom Buys CBS CNN Money From 07 September 1999. Retrieved 01 December 2014.

[6] Infinity Rebranding From 14 December 2005. Retrieved 01 December 2014.

[7] Radio Ink Magazine Most Powerful People in Radio From 07 July 2008. Retrieved 01 December 2014.

[8] John Vilade Named VP of CBS Radio From 03 September 2014. Retrieved 01 December 2014.

[9] CBS Radio’s Top Competitors Retrieved 01 December 2014.

[10] CBS Radio Broadcast Retrieved 01 December 2014.

[11] CBS Radio Local Digital Retrieved 01 December 2014.

[12] CBS Radio Mobile Retrieved 01 December 2014.

[13] CBS Sports Radio Retrieved 01 December 2014.

[14] CBS Corporation Stock From 01 December 2014. Retrieved 01 December 2014.

[15] CBS Corporation Financials From 05 November 2014. Retrieved 01 December 2014.

[16] Michigan News Network From 26 August 2014. Retrieved 01 December 2014.

[17] CBS Radio Recap We Can Survive Concert From 25 October 2014. Retrieved 01 December 2014.

Viacom

Posted on October 5, 2014 by nawhite

by Nalae White

Viacom Inc. 1515 Broadway

New York, NY 10036

United States

Phone: (212)-258-6000

http://www.viacom.com [1]

Key Executives:

Philippe Dauman, CEO

Sumner M. Redstone, Founder & Executive Chairman

Thomas E. Dooley, COO

Wade Davis, CFO

Company Overview:

Viacom Inc. is an American mass media company that mainly produces films and cable television shows. Viacom is the fifth largest broadcasting and cable company in the country. Their network reaches approximately 700 million subscribers internationally, throughout about 160 countries and territories. It is estimated that Viacom owns and operates roughly 170 networks, in addition to Paramount Studios, America’s oldest film studio and distributor. Viacom’s networks are largely content based, satisfying more niche markets. Viacom operates hundreds of online, mobile, and app experiences across a wide range of media platforms, including both traditional and new forms of media. [2]

Viacom Owned Networks [i]

Viacom’s history as an independent company has been complicated. Viacom began as a spin-off network from what was then CBS, Inc., establishing itself as a public company in 1971. In 1987, National Amusements acquired the controlling shares of Viacom, owning 83% of the company. However, in 2000, Viacom formed a $39.8 billion merger with CBS Corporation, uniting the two companies once again. Then, in 2005, the companies parted ways again and Viacom rebranded itself as Viacom Inc. Along the way, Viacom had acquired and created over 100 channels through MTV Networks and otherwise. The company has experimented with joint ventures like EPIX, partnerships with music groups like Warner Music Group, feeding into more targeted markets with channels like mtvU, and of course new and innovative ideas for creating and distributing content. [3]

Current Ongoings:

Rendering of Columbia Square [4]

Viacom recently made the decision to relocate and consolidate several of its big name networks to one building in Columbia Square on Sunset Boulevard. MTV, Spike TV, Comedy Central, and BET will all operate out of the $420 million complex within 180,000 square feet of space. The move will put the networks closer to Paramount Studios, which operates a mile from the building. Viacom’s 12-year lease states that the company will capacitate nearly the entirety of a 6-story building within the complex. The lease is the largest to be signed in Hollywood in the last 10 years. Viacom is expected to poster sizable graphics that will be visible from far distances on the building. The purchase is instrumental in what is seen as a revamping of Hollywood, with the complex being the largest “media-tenant” since the construction of the Capitol Records Tower in the 1950s. [4]

Viacom’s network continues to expand, opening new channels to satisfy new markets. This year, Viacom renewed an existing distribution deal with Hulu, an online media streaming service. The contract allows Hulu to use Viacom’s existing repertoire of cable networks to substantiate Hulu’s own library. The renewal will also allow Hulu a wider range of material to choose from, including networks that were not previously available to the streaming service before, such as MTV, VH1, Comedy Central, and Nickelodeon. The deal will contribute largely to the “Hulu Kids” section of the website, reviving older series accompanied by a sense of nostalgia like “Ren & Stimpy” and “Hey Arnold!” which currently air on Viacom’s TeenNick channel. The deal also greatly amplifies the number of Viacom’s past reality shows that will be featured on Hulu. It is speculated that the deal is an attempt by Hulu to compete with Amazon Prime’s Instant Video Inventory. However, the deal barely rivals the existing subscription-streaming deal between Amazon and Viacom, which was the largest sum Amazon has paid for a streaming deal thus far.[5]

Channel 5 Logo [ii]

Viacom has, additionally, closed a £450 million deal, acquiring UK’s Channel 5 Broadcasting Limited from Northern & Shell Media Group. Channel 5 and Viacom’s existing networks have begunexperimenting with joint programming, airing Nickelodeon originated shows on Channel 5, as well producing new content with children’s shows like “Nella the Knight” and a reality show called “10,000 B.C.”[6]

Recent Legal Incidents:

In 2007, Viacom filed a $1 billion lawsuit against YouTube, claiming that the website was perpetuating Copyright Infringement. The judge ruled in YouTube’s favor in 2010, and Viacom filed for an appeal. The suit litigated for a total of 6 years until in 2013, the judge ruled again that YouTube “did not have to police itself”, and that it was Viacom’s responsibility to find infringing videos and alert YouTube to their presence. In March of 2014, Viacom made the decision to cut their losses, reaching an undisclosed settlement in which no money was exchanged with Google, YouTube’s parent company. Since the settlement, the two companies have been in contact about “seizing opportunities”, with the allusion of possible collaborations and close interactions between them.[7][8]

Promotional still for VH1’s TLC Biopic, CrazySexyCool [11]

In April of 2014, Viacom was sued by Perri “Pebbles” Reid, former manager of 90’s R&B group TLC, for claims of defamation. In 2013, the 2-hour biopic “CrazySexyCool”, following the lives and fame of the popular R&B group, premiered on VH1, a channel owned by Viacom Inc. The biopic was reported to have given VH1 its highest ratings in 5 years. The lawsuit calls for $40 million in compensatory and punitive damages, as well as a request to ban the movie or associated promotional materials from being publicized. Reid believes that the movie disparaged her reputation both as an entertainer and businesswoman, and that “Viacom abandoned journalistic and literary integrity and ignored fundamental canons of journalistic and literary conduct by publishing false and defamatory accusations with actual malice.” The former manager claims that she was presented as “conniving and dishonest”, as it demonstrated that she deceived her clients and robbed them of their royalty money. Reid claims that she had no control over the group’s lawyer’s or accountants. Viacom has refused to comment. [9][10][11]

In February of 2013, Cablevision filed an antitrust lawsuit against Viacom, alleging illegal channel tying during program negotiations; Cablevision claims that Viacom threatened a “10 figure penalty” if Cablevision did not agree to carry smaller suites in addition to must-have cable programming. Viacom counters that the “10 figure penalty” in question is the difference between standard rates and a negotiation between Viacom and Cablevision as the result of “good-faith negotiations” since the two have worked together in the past. The lawsuit was filed three months after a carriage deal between Cablevision and Viacom. Viacom moved to have the case dismissed, however the judge ruled that there was viable evidence on Cablevision’s behalf to review an antitrust claim. There is no trial date set.[12]

Financial Information

Fiscal 2014 Report:

Revenues: $13.78B

Adjusted Operating Income: $4.13B

Adjusted Net Earnings: $2.38B

Adjusted Diluted EPS: $5.4M

Viacom’s fiscal year came to a close on September 30^th, 2014. The company demonstrated an impressive fiscal year. While Viacom’s total revenue showed a negligible change in comparison to the previous year, other factors were notable. Both the company’s Adjusted Operating Income and Adjusted Diluted Earnings Per Share reached all time highs, rising 5% and 15% respectively. The company’s Adjusted Net Earnings also increased by 3.8% from the previous year.[13]

Sources:

1 Yahoo! Finance: Viacom Financial Profile Date Acquired: December 1^st, 2014

²Viacom Website: About Viacom Date Acquired: December 1^st, 2014

3 Viacom Timeline: History of Viacom Date Acquired: December 1^st, 2014

4 LA Times: Viacom Signs 12-Year Lease at Columbia Square in Hollywood Date Acquired: December 1^st, 2014

5 LA Times: Hulu Extends Streaming Deal With Viacom, Expands Library Date Acquired: December 1^st, 2014

6 Viacom News: Viacom Closes Acquisition of Channel 5 Date Acquired: December 1^st, 2014

7 Bloomberg BusinessWeek Technology: Viacom Gives Up On Its YouTube Copyright Lawsuit Date Acquired: December 1^st, 2014

8 Bloomberg BusinessWeek: Viacom and Google Settle YouTube Lawsuit Date Acquired: December 1^st, 2014

9 Bloomberg BusinessWeek: Former TLC manager sues Viacom For Defamation Date Acquired: December 1^st, 2014

10 The Root: Pebbles Files $40,000,000 Lawsuit Against Viacom Over TLC Biopic Date Acquired: December 1^st, 2014

11 Eurweb: TLC Biopic Gives VH1 Its Highest Ratings in 5 Years Date Acquired: December 1^st, 2014

12 The Hollywood Reporter: Viacom Can’t Escape Cablevision’s Antitrust Lawsuit Date Acquired: December 1^st, 2014

13 4^th Quarter ’14 Earnings Press Release: Viacom Reports Record Profit For Fiscal 2014 Date Acquired: December 1^st, 2014

Photo Sources:

i Stop the Cap: Viacom Demands 100% Rate Increases Date Acquired: December 1st, 2014

ii Deadline.com: Channel 5 Sale Speculations Date Acquired: December 1^st, 2014

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