Conglomerate - Big group of companies
Subsidiary - One of the smaller companies
Monopoly - One company that owns more than a half of the market
Oligopoly - Several companies own the majority of the market
Vertical Ownership (mostly conglomerates)
All stages of production are kept within the company
Pro - Easier communication, get your original product complete, quicker and more efficient
Con - Select views, might not be the best result
Horizontal Ownership
Productions is split between several companies
Pro - More critical on the product, greater range of ideas
Con - Bad communication
Funding
Public funded - BBC, Channel 4
Private funded - ITV, Sky, MTV
BBC, Sky, Netflix
1 series, 3 films
Consider size of company and how they are distributed, reputation
Vertically or horizontally integrated
What audience share do they have
Average budget given to productions
BBC:
TV Channels, Radio, Online, Films
Verticle
Serves Worldwide
Images on expenditure from their 2012/2013 financial statement.
Average annual budget for BBC films is £12million
Film4 £10-15million a year
Sky:
TV Channels, on Demand, available on Xbox, Internet
Horizontal
Said they will spend £600million on British Movies by 2014 http://www.moviescopemag.com/news/industry/bskyb-launches-multi-million-film-fund/
https://corporate.sky.com/media/press_releases/2012/sky_to_make_multimillion_pound_investment_in_british_films
10.5 million TV customers
£1,313 million investment in programming
5.1 million Broadband customers
24,000 employee's
£554 million profit in the second half of 2013 http://www.bbc.co.uk/news/business-25957695
"Fit and proper" to hold a TV license says Ofcom http://www.telegraph.co.uk/finance/newsbysector/mediatechnologyandtelecoms/media/9554862/Ofcoms-BSkyB-ruling-does-lasting-damage-to-James-Murdoch.html
Programming Costs (p32) http://corporate.sky.com/documents/pdf/latest_results/1213_q2_presentation.pdf
Netflix
Horizontal Ownership
Streamed online via PS3, XBOX 360, TV, Wii or any other device that allows streaming from Netflix.
Ownership Analysis
|
# of Holders
|
Shares
|
|
|
476
|
52,533,850
|
|
|
81
|
866,816
|
|
|
252
|
5,768,109
|
|
|
177
|
8,032,941
|
|
|
429
|
13,801,050
|
|
|
32
|
1,506,333
|
http://www.nasdaq.com/symbol/nflx/institutional-holdings
http://www.statisticbrain.com/netflix-statistics/
Netflix Statistics (2013)
|
Total number of Netflix subscribers
|
29.2 million
|
2013 Q1 Revenue
|
$1 Billion
|
2013 Q1 Profit
|
$3 Million
|
Number of hours spent by Netflix members watching streamed
video on hi-speed internet
|
2 billion hours
|
Total number of Netflix viewers who watch live stream via
video game console
|
50%
|
Percentage of all U.S. internet traffic during peak hours
that use Netflix
|
30%
|
Percentage that Netflix Snail-Mail will make up of all
disc-rental spending
|
35%
|
Total percent of Netflix members who watch both Television
shows and Movies
|
36%
|
Total percentage of Netflix subscribers who use service
via cell phone
|
6%
|
Total number of Netflix distribution centers
|
58
|
Total percentage of Netflix subscribers who use their
computers to stream and watch
|
42%
|
Total percentage of Netflix subscribers who watch by
connecting their computer to their T. V.
|
14%
|
|
Netflix began as a DVD by mail rental service and has grown
into the largest online provider of streaming movies. With original series like
“House of Cards” Netflix has moved into the network production arena. Netflix
has over 29 million subscribers, with 7.1 million being international.
FUNDING
“Putting together a big production with famous actors like
House of
Cards costs a lot of money—$100 million for two 13 episode
seasons, to be exact—and Netflix CEO Reid Hastings says he plans on making five
new shows like that per year,
he told GQ's
Nancy Hass.”
For only £5.99 a month,
you get unlimited films & TV episodes instantly over the internet to your
TV or computer. There are no commercials, and you can pause, rewind, fast
forward or watch again as often as you like. It's really that easy!
“The company beat analyst expectations in the fourth quarter
with earnings at 79 cents per share on revenues of $1.175 billion, which were
above Wall Street’s forecast of $1.16 billion. More importantly, the company
announced 2.3 million new domestic subscribers, which was at the high-end of
the range it had earlier provided (1.6m-2.4m). The company ended the year
with 33.4 million domestic members.”
Why Netflix is producing original content
