Hank Research

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
Total Shares Held:	476	52,533,850
New Positions:	81	866,816
Increased Positions:	252	5,768,109
Decreased Positions:	177	8,032,941
Holders With Activity:	429	13,801,050
Sold Out Positions:	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

http://www.thewire.com/technology/2013/02/economics-netflixs-100-million-new-show/61692/

“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!

http://techcrunch.com/2014/02/04/netflix-will-raise-400-million-to-fund-european-expansion-original-programming/

“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

http://blogs.reuters.com/felix-salmon/2013/06/13/why-netflix-is-producing-original-content/

Statistics
http://news.yahoo.com/numbers-netflix-subscribers-205626746.html

Subscribers (44million)
http://www.ft.com/cms/s/0/e4dde050-83b7-11e3-aa65-00144feab7de.html#axzz2wKVSawKE

Programmes made by sky: http://forums.digitalspy.co.uk/showthread.php?t=1249721

For all of the sources, I considered how reliable and accurate they were.