Media Moguls and Megacorps: Today and Tomorrow

Stuart W. Volkow

Media Moguls and Mega-Corps

Who will the giants be tomorrow?

Stuart W. [email protected]

1

Stuart W. Volkow

0

150

300

450

600

1970 1980 1990 2000 2010

Chan

nels

The Multichannel MediaverseHas Created Unlimited Consumer Choice

Free TV Over-the-air

MSOs begin multi-billion dollar builds

Rise of Cable Decline of Broadcast Networks

Internet Connected TV

2

Copyright 2009 Stuart Wayne Volkow

Disney ABC

NASDAQ:CMSCA$30.9 B / 24 mm subs

News Corp(NYSE:NWS)

$28.6 B

Time Warner(TWX)

Viacom (NYSE:VIA)

$13.4B

CBS Corp.(NYSE:CBS)

$14B

4

Copyright 2009 Stuart Wayne Volkow. Xtropia Partners

5


Private Media / Entertainment Companies

6

TV RebornCopyright 2008, Stuart W. Volkow

U.S. TV Business Structure

• Broadcast Networks (“free” TV)• Pay Television

– CATV Networks– DBS Networks

• Owned and Operated Independent Stations– Affiliate Stations– Station Groups

• Studios, Conglomerates

7

7


There are 1600 TV Broadcasters Licensed in

the USA

8

TV RebornCopyright 2008, Stuart W. Volkow 9

The US Broadcast Networks

9

Stuart W. Volkow

Station GroupsScripps (SSP)

10 Stations plus HGTV, DIY, FOOD, Fine LivingCBS Television Stations (28 stations, 16

affiliates)Hearst Argyle TV (HTV)

25 StationsTribune Media (TRB)

21 StationsClear Channel Communications (CCU)

41 TV Stations, 1,182 Radio Stations)Acquired by Thomas H. Lee Partners for $26.7 Billion USD

10


11


Telecomunications Technologies Reference, Bradley Dunsmore, Toby Skandier, Ciscopress.com

12


Telecomunications Technologies Reference, Bradley Dunsmore, Toby Skandier, Ciscopress.com

13


14


all numbers in millions SubsTV/Internet

%

Comcast (CMCSA) 24 / 16 22

DirecTV (DTV) 18.3 17

DISH (DISH) 14 14

Time Warner (TWC) 14 / 9 12

Cox 5.9

Charter (CHTRQ) 5.7

Verizon 3.2

Cablevision (CVC) 3

AT&T 2.7

Total Pay TV Subs USA Approx

103

US Pay TV Landscape Landscape

15


Pay TV = Dual, Triple Income Streams

16

‣US CATV Revenue

‣$86 Billion USD

‣$26 Billion USD in Advertising

‣Source: NCTA.com

16


T r i p l e P l a y

17

17


18


52 million CATV SubsLargest MSOs >80% subs

19

19


DBS32 million subs

20

Stuart W. Volkow

Dish Network (NASDAQ:DISH.O)

•13.8 Million Subs•250 Channels•30 Premium Channels•140 Foreign Language Channels

$9.6 B

Echostar (NASDAQ:SATS)

•STB Business•Satellite Ops (85 Degree Orbital)

•300 MPEG IV channels capacity•Fiber•SLING Media•140 Foreign Language Channels•$20.3 million invested in CINEMANOW.com in ‘06

$1.5 B

$11.6 B

21

Stuart W. Volkow

DirecTV Group (NASDAQ:DTV)

•16.8 million subs•13 million Internet subs•190 National Channels•1400 Local Digital Channels•90 HD Channels

$21.5 B

$36 B

22


Te l c o s

23

23

Stuart Wayne Volkow, Copyright 2009 24

113 B

165 B

95.5 Million Wireless Subs at an avg of $62/m

2.3 million U-verse subs

24

Stuart W. Volkow

GE- NBC UNIV NYSE:GE

✦ Universal Studio Facility: production, distribution, facilities, finance

✦ Universal Studios✦ NBC Television Network✦ USA Network✦ CNBC✦ SyFy Channel✦ MSNBC✦ Bravo

25

Stuart W. Volkow

NBC Universal, digital

NBCU is paying about $6 million for a 35% stake in DriverTV, which has about $8 million in annual revenue, according to people familiar with the matter. Currently all DriverTV's ad revenue comes from car makers, but the company, which is partly owned by the TV- and ad-production firm Radical Media, is hoping eventually to attract advertisers from other auto-related industries such as insurance.

With NewsCorp and $100 million for 10% from $21 billion sized Providence Equity Partners

26

Stuart W. Volkow27

Comcast (NASDAQ:CMSCA) $35.7 B$65.3 B

27


Likely to acquire NBC UNI for assets and cash estimated at $6 billion to $7 billion

Jeffery R. Immelt, CEO Chair GE Brian L. Roberts, CEO Comcast

28

Stuart W. Volkow29

29

•CATV•24 million subs•13 million Internet subs•4.6 million Phone subs•250 Digital Channels•>10,000 VOD programs

•Content•VERSUS •G4•E!•Golf Channel•Style

•Other Interests:•MGM (with Sony)•iN Demand•FEARnet•Music Choice

30

Time Warner Cable$24 B

$18 B

31

Stuart W. Volkow

CBS Corp.(NYSE:CBS) $14B$13B

Sumner RedstoneExec Chair of Board

Leslie MoonvesExec Chair of Board

32

Stuart W. Volkow

CBS Corp.(NYSE:CBS) $14BSumner Redstone, CEO

CBS Television Stations (29) The CW (with TWX) CBS Radio (140 stations) Showtime: Smithsonian, TMC

33

Stuart W. Volkow

CBS Interactive Units

March 12, 2009 (Bloomberg) -- CBS Corp.'s Webcast of the U.S. national college basketball tournament will produce as much as $25 million in ad sales, more than double last year's tally. (= Superbowl pregame show)

CNETLast.FMGamespot.comCBSSports.com

34

Stuart W. Volkow

Viacom (NYSE:VIA)Paramount Pictures

Dreamworks Marvel Distro

Paramount VantageMTV FilmsNickelodeon MoviesThe CWUPNMTV Networks, MTV2Virtual Worlds (VLB)

VH1Rhapsody

SPIKECMTMTV, VH1TV LandNogginNickelodeonTMCLOGOThe NFLIXSundanceComedy

Central

$13.4B$26 B

35

Stuart W. Volkow

ViacomInteractive Units

RhapsodyJV between MTV and REAL Networks

Atom FilmsMTV Virtual WorldsXfire.com (7 million HHs)Shockwave.com

36

Viacom's billionaire owner wants to know who's badmouthing his girl-band pet project to The Daily Beast. And he offered to make Peter Lauria “well-rewarded” if he fessed up. HEAR THE TAPE.

http://www.myspace.com/electricbarbarellas

37

Stuart W. Volkow

Disney ABCDisney Studio Facility: production, distribution, facilities, financeDisney StudiosWalt Disney TelevisionTouchstoneABC Family ChannelFox Kids Europe, Latin AmericaABC TV NetworkABC Radio NetworkBuena Vista TelevisionMiramax Film Corp.Hearst CommunicationsESPNESPN ClassicESPNEWSDisney ChannelE! Entertainment Television (part owned)A&E Television Networks (part owned)Toon DisneySoapNet

Walt Disney World Resort

Magic KingdomEpcotDisney’s Animal Kingdom

Disneyland AnaheimTokyo Disneyland ResortDisneyland ParisDisney Cruise LineDisney Stores

Robert A. IgerPresident and Chief Executive Officer

38

Stuart W. Volkow

News Corp (NYSE:NWS)•Fox Filmed Ent.

•34 pics in 07, 711 Home Ent. Titles•Searchlight, Fox Atomic, Animation•Twentieth Century Fox TV (TCFTV)

•Fox TV: 35 Stations, 9 DMAs have 2, 25 FOX affiliates•FOX, 213 Affiliates•FX, FUEL, SPEED, Fox College Sports, Fox Movie Channel

•STAR: 53 Asian countries, 10 languages.•DBS, BSkyB•Publishing

•145 daily newspapers•Dow Jones

$28.6 B

James Murdoch

39

Stuart W. Volkow

40

Stuart W. Volkow

News Corp: Fox Interactive

•2005 acquisitions:•$580 Million for Intermix Media, aka MYSPACE.•$650 million for IGN Entertainment, Inc, a leading

community based Internet media and services company for video games and other forms of digital entertainment.

•Scout Media, Inc., the parent company of Scout.com, the country’s number one independent online sports network, and Scout Publishing, producer of 47 of the most widely read local sports magazines in the U ( www.scout.com )

WebMD/The Health Network

41

Stuart W. Volkow

Time Warner (TWX)

• HBO• Cinemax• TBS• CNN• WB - The CW• New Line• CNN

•Classic Film and Animation Library•Warner Music Group•Warner-Elektra-Atlantic (record distributors/marketers)•Warner/Chappel (publishing and music rights holders)•Time Inc. – 64 magazine titles•Time-Warner Trade Publishing Inc. •Warner Books•Little Brown (publishing)

•Adelphia Commuinication•Cartoon Network•Court TV•Turner Classic Movies•Boomerang•American Online

43

Stuart W. Volkow

America's most successful premium television company, Home Box Office delivers two 24-hour pay television services—HBO® and Cinemax®—to over 40 million U.S. subscribers.

40+ millionHBO and Cinemax subscribers in the U.S. as of December 31, 2009

44

Stuart W. Volkow

TBS, Inc. is based in Atlanta, GA, and employs some 11,000 people worldwide. Philip I. Kent oversees TBS, Inc. as chairman and CEO.

45

Stuart W. Volkow

Time Warner Interactive Units

• Bebo.com• $850 million for 3rd largest social net

http://www.timewarner.com/corp/aboutus/digital_initiatives/index.html

46

•Sony-BMG Music (with Bertelman)•Sony Pictures Entertainment

•Columbia Pictures•Sony Pictures Classic•Screen Gems•TriStar Pictures•Sony Pictures Releasing•Part owner of MGM Studios (along with Comcast), which is part owner of United Artists (Tom Cruise and Paula Wagner).

•American Movie Channel - part owned •Bravo - part owned •Independent Film Channel - part owned •WE: Women’s Entertainment - part owned

Stuart W. Volkow

Sony Corp (PINK SNEJF)

Sony Pictures Home Entertainment Sony Pictures TelevisionSony Pictures Television InternationalSony Pictures Consumer Products

Sony Electronics Sony Broadcast Media Co.

47

Stuart W. Volkow

Sony Digital and Interactive

Sony Pictures Mobile Sony Pictures Studio Sony Pictures Studios Post Production Facilities DVD Authoring Center Worldwide Product Fulfillment Gameshow Network (joint owner) Movielink (joint venture) Crackle.comSony Pictures Digital Sony Pictures Imageworks Sony Pictures Animation SonyPictures.Com Sony Online Entertainment Sony Pictures Digital

48


C A B L E V I S I O N $1.8$10.8 B

49


D i s c o v e r y C o m m u n i c a t i o n s

$10.8 B

50


1 Discovery Channel2 TLC3 Animal Planet4 Science Channel5 Investigation Discovery6 Military Channel (??)7 Planet Green8 Fit TV9 HD Theater10Discovery en Español11Discovery Familia12OWN: OPRAH WINFREY NETWORK13The Hub143net

51

Stuart W. Volkow

Liberty Media (NASDAQ:LINTA)

• QVC• Encore• Starz• On Command• Fun Games• GSN

John C. Malone, Chairman$7.8 B

• IAC/InterActiveCorp• VONGO.com

52

Stuart W. Volkow

EW Scripps (NASDAQ:ssp) $2.5 B

•CATV•HGTV (96 million HHs)•Food Networks•DIY•Fine Living•GAC

•Internet•HGTV.com•Shopzilla•uSwitch

•17 Newspapers

•Broadcast TV•6 ABC Stations•3 NBC•1 Independent

53

$2.1 B$11.6 B

20 million subs

55

American RecordingsDecca ClassicsDef SoulDreamWorksHip-O RecordsInterscope/Geffen/A&MIsland/Def JamMCA NashvilleMCA RecordsMercury NashvilleMotownUniversal ClassicsUniversal LatinoUniversal Music GroupUniversal RecordsVerve

Stuart W. Volkow

Universal Music Group (VIV.PA)

58

Sony BMG's revenue has now fallen 46.3% over the last five years, while the number of employees at the label has dropped from 4,880 in 2003, to 2,851 in 2007.

Stuart W. Volkow

Sony BMG Music GroupBertelsman AG / Sony Corp of America 50/50

59

Stuart W. Volkow

Warner Music Group $3.38 Billion> one million compositions

Warner Music reported a loss of $16 million, or 11 cents per share, in the quarter ended Dec. 31, after a profit of $18 million, or 12 cents per share, in the year-earlier period.

The results sent shares of the New York-based music company tumbling $1.80, or 20.6 percent, to $6.94 Wednesday. The stock has traded in a 52-week range of $4.57 to $21.51.AP 6 Feb 2008

60

Stuart W. Volkow

Why Pandora Is on Virtually Every DeviceOn Fridges, Fords and Phones, It's Become the De Facto Radio App After Being on the Brink of Bankruptcy

By: Andrew Hampp

FEBRUARY 11, 2011, 7:25 PM I.P.O./OFFERINGS

Pandora Files to Go PublicBY EVELYN M. RUSLI

Thor Swift for The New York TimesTim Westergren, founder of Pandora Media.

"Smartphones really turned Pandora into an anytime, anywhere service without us doing anything," Pandora founder Tim Westergren said, noting that half of smartphone listening is done in users' cars.

Yvonne Malmgren, a spokeswoman for the BMW Group, said Mini drivers overwhelmingly asked for the service when the automaker started researching potential partners for its new Mini Connected App player.

61

Stuart W. Volkow

MusicEMI Group £1,751.5 million

Text

EMI revamp tougher than expected, says owner Hands

Hands is controversially trying to take power away from the music talent scouts and give it to marketing men, under his plan to turn round the underperforming group, a plan that has drawn loud criticism from some of its biggest acts.Reuters 27 Feb 2008

62


Samuel Z. ArkoffLouis B Meyer

Irving Thalberg

Daryl Zanuck

William Fox

63


IN THE BEGINNING, THE SEVEN MAJOR STUDIOS HAD DIRECTLY FINANCED,IN THE BEGINNING, THE SEVEN MAJOR STUDIOS HAD DIRECTLY FINANCED,PRODUCED AND DISTRIBUTED THEIR OWN PRODUCT, ADDITIONALLY,PRODUCED AND DISTRIBUTED THEIR OWN PRODUCT, ADDITIONALLY,

THEY CONTROLLED TALENT, DIRECTORS AND PRODUCERS.THEY CONTROLLED TALENT, DIRECTORS AND PRODUCERS.

64


Paramount Pictures Corporation1914Viacom Sony Pictures Entertainment Inc (Columbia, Tristar)Columbia founded in 1919.Sony Pictures Entertainment IncTwentieth Century Fox Film Corporation1933News Corp.Universal City Studios LLP1912Vivendi – UniversalWalt Disney Studios Motion Pictures1923Disney ABCWarner Bros. Entertainment Inc.Albert, Sam , Harry and Jack Started in 1903 by showing “The Great Train Robbery” Sam brought sound to the movies with the Jazz Singer.Time Warner Communications. (from merger of WB with Time Inc.)

65


The MPAA Studios

66

“Mini Majors” or

“Independents”

67


NATO Stats

www.natoonline.org

150,000 screens worldwide, with about 40,000 screens in the U.S

68


100 million admissions per week in 1946

69


!

70


Movie Econ 101

Box office % of Gross

Gross Participation 10

Exhibitor 50

Distributor 15

P & A 40

Production Budg 60

Deficit $75

100 Million GBO

72


The Global Advertising Conglomerates

Sir Martin Sorrell, WPP Group plc

•Omnicom

•WPP Group plc

•Interpublic

•Publicis

•Dentsu

•Havas

73

Hollywood Power ShiftAgents, Managers, Studios, Talent

THE REAL

74

11/13/2006 Copyright 2006 Stuart Wayne Volkow

Agents and ManagersThe Power Elite

Brillstein Entertainment Partners

Asif Satchu, Mordicai WicykMedia Rights Capital

Category 5 Entertaiment

Nick StevensJeff Kwatinetz, The Firm

75

Ari Emanuel

76


77

Media Moguls and Megacorps: Today and Tomorrow

Education

Transcript of Media Moguls and Megacorps: Today and Tomorrow