NBCUniversal

Posted on April 7, 2013 by decesarechelsea

By: Chelsea DeCesare

History

The story of NBCUniversal goes back more than a century and involves the dreams of two visionary entrepreneurs, David Sarnoff, who founded NBC, and Carl Laemmle, who created Universal.

Carl Laemmle

NBCUniversal was formed in 2004 when NBC and Universal merged to create a media powerhouse co-owned by General Electric and Vivendi. With the company’s acquisition by Comcast in 2009, a third visionary entrepreneur, Ralph J. Roberts, joined the sides of Sarnoff and Laemmle as a key figure in the annals of the company. Roberts started Comcast in 1963, after he bought a tiny cable system in Tupelo, Mississippi, setting in motion a remarkable American business success story.

Ralph J Roberts

All three companies were founded by men of modest backgrounds who were propelled by their visions of a new industry—movies, television, and cable distribution—and enthusiastic about the possibilities they represented for economic growth for the betterment of the community and people around them. Laemmle, Sarnoff, and Roberts dedicated themselves to turning their visions into the reality that represents Comcast and NBCUniversal in the present day.

David Sarnoff was a radio visionary who through his work with RCA helped to make NBCUniversal into what it is today. In 1916, Sarnoff was a young Russian immigrant living in New York City. One day, he wrote a memo to his manager at the American Marconi Wireless Telegraph Co. in New York City. In his “Radio Music Box” memo, Sarnoff imagined a world connected by wireless communication that would bring information and entertainment into the home. This audacious vision would become reality in 1926 with the first broadcast of the National Broadcasting Company.

David Sarnoff

Through the remainder of the twentieth century, these two companies, Universal Studios and NBC, would create extraordinary legacies of accomplishment in the exciting new worlds of motion picture production and distribution, location-based entertainment, and radio and television production and broadcasting.

On May 12, 2004, the parallel histories of the two companies converged, in the creation of a powerful new media entity, NBCUniversal. [1]

Parent Company

In December of 2009, the largest cable operator in the U.S, Comcast, announced an agreement to acquire NBCUniversal from General Electric.

The deal valued NBCUniversal at around $30 billion, and has Comcast owning 51 percent and General Electric owning 49 percent of the NBCUniversal corporation. Comcast will contribute its own offering of cable channels, worth about $7.25 billion, and will pay General Electric about $6.5 billion in cash, for a total of $13.75 billion.

On January 18, 2011, the FCC and the United States Department of Justice officially approved the merger. [2]

Company Leaders

Stephen B. Burke Chief Executive Officer, NBCUniversal

Steve Burke oversees the company’s valuable portfolio of news, sports, and entertainment networks, a premier motion picture company, significant television production operations, a leading television stations group, and world-renowned theme parks.

Burke assumed this role in January 2011, upon the closing of Comcast and General Electric’s joint venture merging the assets of NBC Universal with Comcast’s programming assets.

He previously served as Chief Operating Officer of Comcast Corporation, where he was a driving force in its growth from a cable industry leader to one of the nation’s leading providers of entertainment, information and communication products and services. [3]

Matt Bond, Executive Vice President, Content Distribution, NBCUniversal

Bond is responsible for overseeing the strategic direction of the company’s content portfolio, and managing the distribution relationships for NBCUniversal cable channels, owned-and-operated televisions stations, and other licensing responsibilities.

Prior to this, Matt held the position of Executive Vice President of Content Acquisition for Comcast, overseeing the company’s content acquisition efforts including the negotiation of programming agreements for cable systems serving more than 24 million customers. Bond also led content acquisition for new media rights and strategic multiplatform initiatives, including On Demand Online. [4]

Patricia Fili-Krushel,Chairman, NBCUniversal News Group, NBCUniversal

Patricia Fili-Krushel serves as Chairman of NBCUniversal News Group, the most influential and respected portfolio of on-air and digital news properties in the world, reaching more than 120M viewers each month. She reports directly to Steve Burke, CEO of NBC Universal.

The News Group includes such assets as NBC News, MSNBC, CNBC and the Weather Channel as well as digital platforms including NBC News Digital, MSNBC.com and CNBC.com.

Previously, Ms. Fili-Krushel was Executive Vice President of NBC Universal with a broad portfolio of functions reporting to her, including Operations and Technical Services, Business Strategy, Human Resources and Legal. [5]

Robert Greenblatt, Chairman, NBC Entertainment

Robert Greenblatt joined NBC Universal in January 2011 as Chairman, NBC Entertainment and reports to Steve Burke. In this role, he is responsible for all aspects of prime time and late night programming, business affairs, West Coast research, marketing, public relations and scheduling for NBC and also oversees Universal Media Studios. [6]

Subsidiaries

Universal Pictures

Focus Features
Working Title Films
Universal Studios Home Entertainment
Universal Animation Studios
Illumination Entertainment [7]

NBC Universal Cable

nbc-universal-will-lay-off-500-employees-due-to-budget-cut

Cable Network	Approximate U.S. Subscribers at December 31, 2011 (in millions) ^(a)		Description of Programming
USA Network		99	General entertainment
Syfy		98	Imagination-based entertainment
E!		98	Entertainment and pop culture
CNBC		97	Business and financial news
MSNBC		95	24 hour news
Bravo		95	Entertainment, culture and arts
Golf Channel		85	Golf competition and golf entertainment
Oxygen		78	Women’s interests
NBC Sports Network (formerly VERSUS)		76	Sports
Style		76	Lifestyle
G4		61	Gamer lifestyle
Chiller		42	Horror and suspense
CNBC World		40	Global financial news
Cloo (formerly Sleuth)		39	Crime, mystery and suspense
Universal HD		25	HD, general entertainment programming

[9]

NBC Sports Group

Comcast Sports Group
Golf Channel
NBC Sports
NBC Sports Digital Network [10]

Entertainment and Digital Networks and Integrated Media

Bravo Media
Oxygen Media
Style Media
Telemundo
mun2
PBS Kids Sprout
TVOne [11]

NBC Universal News Group

NBC News
CNBC
MSNBC
The Weather Channel [12]

Local Television News Stations

DMA Served ^(a)	Station	General Market Rank ^(b)		Percentage of U.S. Television Households ^(d)
New York, NY	WNBC		1		7	%
Los Angeles, CA	KNBC		2		5	%
Chicago, IL	WMAQ		3		3	%
Philadelphia, PA	WCAU		4		3	%
Dallas-Fort Worth, TX	KXAS ^(c)		5		2	%
San Francisco-Oakland-San Jose, CA	KNTV		6		2	%
Washington, D.C.	WRC		8		2	%
Miami-Ft. Lauderdale, FL	WTVJ		16		1	%
San Diego, CA	KNSD ^(c)		28		1	%
Hartford, CT	WVIT		30		1	%

[13]

Parks and Resorts

Universal Orlando Resort
Universal Studios Hollywood
Universal Studios Japan
Universal Studios Singapore [14]

Digital Media

2013 Programming

2013 Winter/Spring Series Premieres:
— New Drama “Deception” January 7
— New Comedy “1600 Penn” January 10
— New Relationship Series “Ready for Love” March 31

Anticipated Returns:
–“The Voice” March 25/26
–“Revolution” March 25
–“The Biggest Loser” January 6/7
–“Smash” February 5
–“Community” February 7
–“The Celebrity Apprentice” March 3
–“Betty White’s Off Their Rockers” January 8 [16]

Sources:

1.) NBC Universal History http://www.nbcuni.com/corporate/about-us/history/

2.) Atlantic Magazine, “Comcast Buys GE Stake in NBCUniversal, Completing the ’30 Rock’ Prophecy.” http://www.theatlanticwire.com/entertainment/2013/02/comcast-buys-ge-stake-nbcuniversal-completing-30-rock-prophecy/62069/

3.) NBC Universal Senior Corporate Executives: Stephen B. Burke http://www.nbcuni.com/corporate/management/senior-corporate-executives/nbc-universal/stephen-b-burke/

4.) NBC Universal Senior Corporate Executives: Matt Bond http://www.nbcuni.com/corporate/management/senior-corporate-executives/nbc-universal/matt-bond/

5.) NBC Universal Senior Corporate Executives: Patricia Fili-Krushel http://www.nbcuni.com/corporate/management/senior-corporate-executives/nbc-universal/patricia-fili-krushel/

6.) NBC Universal Senior Corporate Executives: Robert Greenblatt http://www.nbcuni.com/corporate/management/senior-corporate-executives/nbc-entertainment/robert-greenblatt/

7.) Columbia Journalism Review: Who Owns What, Comcast Corporation http://www.cjr.org/resources/?c=comcast

8.) Columbia Journalism Review: Who Owns What, Comcast Corporationhttp://www.cjr.org/resources/?c=comcast

9.) NBC Universal Annual Shareholder’s Report http://apps.shareholder.com/sec/viewerContent.aspx?companyid=cmcsa&docid=8430852

10.) Columbia Journalism Review: Who Owns What, Comcast Corporation http://www.cjr.org/resources/?c=comcast

11.) Columbia Journalism Review: Who Owns What, Comcast Corporation http://www.cjr.org/resources/?c=comcast

12.) Columbia Journalism Review: Who Owns What, Comcast Corporation http://www.cjr.org/resources/?c=comcast

13.) NBC Universal Annual Shareholder’s Report http://apps.shareholder.com/sec/viewerContent.aspx?companyid=cmcsa&docid=8430852

14.) Columbia Journalism Review: Who Owns What, Comcast http://www.cjr.org/resources/?c=comcast

15.) Columbia Journalism Review: Who Owns What, Comcast http://www.cjr.org/resources/?c=comcast

16.) NBC Reveals Changes for Mid-Season 2013 http://www.nbc.com/news/2012/10/30/nbc-reveals-changes-for-mid-season-2013/

Regulation of Distribution

Posted on April 7, 2013 by decesarechelsea

By: Chelsea DeCesare

History

Regulation in the cable industry refers to who has the rights to distribute broadcast station signals, and to whom. Regulation of cable distribution first came about in the 1940’s, when cable television system operators placed antennas in areas with good reception, picked up broadcast station signals, and then distributed them by coaxial cable to subscribers for a fee.[1]

Today, the distribution systems are far more complex. Consumers now have the option to decide when they want to view television content, and if they want to “binge view” through video on demand programs. With a variety of mediums available to take in content, it has become difficult for broadcasters to manage and regulate how and where materials are being viewed.

With the invention of the Digital Video Recorder or DVR as well as Video on Demand technology, both consumers and companies have the power to record and disseminate live television. For many cable and network providers, this budding technology has threatened vital advertising and subscription revenues.

The Evolution of the DVR

Tivo and ReplayTV

In January 1999, TiVo unveiled it’s Personal Television Service at the National Consumers Electronics Show. After unveiling the first working prototype, and despite an estimated four to five months of work remaining to complete a real working product, the company shipped the first DVR on the planet on March 31, 1999. [2]

ReplayTV also premiered in 1999, and allowed viewers to record, rewind, and store cable and broadcast programs of the consumers choosing. [3]

Both TiVo and ReplayTV currently charge subscribers anywhere from $80 to $200 for their services. Additionally, the services act as a liaison between television signal providers and viewers. They interpret the signals from a provider and allow consumers to tell them what programs they want to record. [4]

As a result, there were no initial regulations placed on TiVo, as the content being recorded had to be obtained through a cable subscription.

Video on Demand

Television video on demand or VOD systems first came to prominence in the 2000’s. VOD’s either stream content through a set-top box, a computer, or smart device. With a VOD, viewers can either watch in real time on television, or download to an outside device for viewing at any time.

With the creation of internet VOD systems, companies looked to pen licensing agreements with media companies in order to provide viewers with a library of shows and movies that they could access at any time.

Netflix

In January of 2013, Netflix signed a multi-year licensing agreement with both Turner Broadcasting and Warner Brother’s Television Group.

The agreement includes episodes of shows from Cartoon Network, Warner Bros. Animation, Adult Swim, and TNT. The deal, which will only make content available to U.S. Netflix subscribers, went into effect on March 30, 2013. [5]

Additionally, in December of 2012, Netflix and Disney reached a first time licensing agreement that allowed the streaming of back catalog classic Disney films including Dumbo, Pocahantas, and Alice in Wonderland.

The Disney deal stipulated that by 2016, all new theatrically released films in the pay TV window will be able to be watched instantly. This includes all films produced by Disney, Walt Disney Animation Studios, Disneynature, Pixar Animation Studios, and Marvel Studios. [6]

New and Controversial On Demand Systems

The Hopper

Aereo

Backlash

Dish Network vs. Network TV

In September of 2012, Fox, NBC Universal, and CBS filed a copyright infringement lawsuit against Dish Network. The lawsuit was in response to the release of new software called “The Hopper,” which allows subscribers of the satellite network to skip commercials during programs that have been previously recorded.

The broadcast networks asserted that new DVR technology is a violation of their copyrights and puts programming in danger by undermining advertisements which still make up a bulk of programming revenue.

In a court filing Dish Network said:

“This case is about freedom of consumer choice, individual families’ choice to elect, if they want, to time-shift their television viewing and watch recorded television without commercials.”

The Hopper system was officially released on May 10, 2012 and is only currently available to PrimeTime Anytime service customers.

While the lawsuit is being settled, Fox has refused to air any Dish Network commercials that feature the Hopper service. [7]

Aereo vs. Broadcast Networks

Last year, CBS Corporation, Comcast, News Corporation, and the Walt Disney Company filed two suits against Aereo, a start-up Internet service that streams stations without compensating them.

The lawsuits were first filed in March 2012, mere weeks before the service was set to premiere in New York. However, a district court judge denied the request for a preliminary injunction last summer. [8]

On April 1, 2013, a federal appeals court in New York upheld a ruling in favor of Aereo.

Aereo is able to stream broadcast stations by operating an array of tiny antennas that pick up over-the-air signals. Subscribers pay about $12 a month, and receive control over one antenna. Aereo basically turns the subscriber’s phone, computer or tablet into a small television set, but without the rabbit ears that would normally be needed. Subscribers can then select programming over the internet.[9]

An array of antennas in Brooklyn allow Aereo to avoid paying the retransmission fees that operators have traditionally paid for access to stations. Those fees are an increasingly important revenue source for the stations.

The Court of Appeals for the Second Circuit affirmed the lower court ruling on April 1, in a 2-to-1 decision, saying that Aereo’s streams of TV shows to individual subscribers did not constitute “public performances,” and thus the broadcasters’ copyright infringement lawsuits “are not likely to prevail on the merits.” [10]

The Future

Looking ahead, Aereo’s win in court may make other companies more comfortable in joining the service. Some prospective partners include cable channels that want carriage (Bloomberg TV signed the first such deal with Aereo last year) and wireless providers. And the mere existence of the service may cause the broadcasters to speed up their own plans for streaming programming to phones and tablets.

Analysts suggest that some cable and satellite providers, such as those that pay billions of dollars in retransmission fees for the right to carry broadcasters’ signals, might start to mimic Aereo’s system to get around the fee requirements. Others predicted that the broadcasters might lobby Congress to change the law. [11]

The outcome of this case will undoubtedly influence the way future systems do business in the future. In the meantime, all we can do it wait, and watch for the next big thing to enter the market and revolutionize the business yet again.

Sources:

1. FCC Encyclopedia: “Evolution of Cable Television” http://www.fcc.gov/encyclopedia/evolution-cable-television

2. Tivo: History http://www.tivo.com/jobs/questions/history-of-tivo/index.html

3. ReplayTV: History http://www.replaytvupgrade.com/replaytvcompanyhistory.htm

4. Tivo Updated Payment Plans March 2013 http://www.tivo.com/abouttivo/policies/tivoservicepaymentplanstermsandconditions.html

5. CNN Money: “Netflix Scores Cartoon Network Adult Swim and More Time Warner Content.” http://money.cnn.com/2013/01/14/technology/netflix-time-warner/index.html

6. Bloomberg Online: “Disney’s Netflix Deal Gives Top Billing to Online Movies.” http://www.bloomberg.com/news/2012-12-05/disney-s-netflix-deal-gives-top-billing-to-online-movies.html

7. CNN Money: “Broadcasters Sue Dish Over Ad-Skipping DVR.” http://money.cnn.com/2012/05/25/technology/dish-auto-hop-lawsuit/index.htm

8. Newser Online: “Divided NY Federal Appeals Court Rejects Lawsuit, Giving Green Light to Aereo Live TV Service.” http://www.newser.com/article/da5cvfj81/divided-ny-federal-appeals-court-rejects-lawsuit-giving-green-light-to-aereo-live-tv-service.html#continuedBelow

9. A New Domain Blog: “Aereo: How It Works and How It’s Working So Far.” http://anewdomain.net/2012/04/06/aereo-has-launched-lets-hope-they-are-for-real/

10. The Wall Street Journal: “Court Denies Broadcasters’ Motion to Shut Down Aereo.” http://online.wsj.com/article/SB10001424127887323296504578396543358747194.html

11. Bloomberg Online: “Diller-Backed Aereo Beats Network Bid to Close TV Service.” http://www.bloomberg.com/news/2013-04-01/diller-backed-aereo-beats-network-bid-to-close-tv-service.html

TV Business

Website by the students of TRF594

Author Archives: decesarechelsea

NBCUniversal

History

Parent Company

Company Leaders

Subsidiaries

Digital Media

Sources:

Regulation of Distribution

History

The Evolution of the DVR

Tivo and ReplayTV

Dish Network vs. Network TV

“This case is about freedom of consumer choice, individual families’ choice to elect, if they want, to time-shift their television viewing and watch recorded television without commercials.”

Sources: