Welcome to the blog of Dr. Lisa Burns' Media Studies senior capstone class (Section B) at Quinnipiac University. If you're looking for the latest on media industry trends and insightful media analysis, you've come to the right place.
Sunday, January 22, 2017
Media Convergence & Multiple Screens Blog 1, Question 3 (Jan. 31st)
Which major media
conglomerate is best positioned to succeed and which organization will face the
most challenges in 2017? (*Note: You can use readings from last week in your
response.) Limit: 8 responses
Angie King (1/2) No company is slated to have a perfect year, especially with the merger and acquisition trend in the industry. However, there are some conglomerates that will have an incredibly successful year. There are others that have had a lot of turnover within the past year that might lead to a rough 2017. The media conglomerate best positioned to succeed in 2017 is Walt Disney Co. Some may argue that Time Warner Inc. is slated for success, considering the pending merger with AT&T. However, with the merger comes incredible uncertainty. Donald Trump also vowed to shutdown these billion dollar deals during his presidential campaign. Even if the merger went smoothly without any trouble from Trump, Time Warner would need to produce a lot of content to compete. “The acquisition would combine a telecom giant that owns a leading cellphone business, DirecTV and an Internet service with the company behind HBO, CNN, and some of the world’s most popular entertainment, including “Game of Thrones,” the “Harry Potter” franchise and professional basketball” (Condon). All of these assets to the new conglomerate sound like a success, however it will not come without resistance. Some analysts predicted “they would keep HBO exclusive for only DirecTV subscribers, or only make TNT or TBS available over AT&T Wireless…But as a practical matter, those kinds of strategies are expressly prohibited by the FCC and antitrust law” (Condon). This uncertainty is why Walt Disney Co. might pull away in 2017. Disney looks to produce a lot of success in 2017 without a lot of trouble. It reached record-breaking success in 2016, but that doesn’t mean it can’t reach the same in 2017. Studio chief Alan Horn spoke about both 2016 success and expectations for 2017 in that “Obviously, the comparison is a little tough with huge films from all five of our major brands in 2016 versus fewer films and no Disney Animation release in 2017—although we have two from Pixar…We think our upcoming slate is pretty impressive nonetheless, and our main focus continues to be making the very best films possible that stand out and compel audiences to go to the theater” (Masters “Studios’ 2017 Forecast”). Regardless of these reports, Disney is loaded with creative talent overlooking its different brands. The films to look out for in 2017 are: Beauty and the Beast, Guardians of the Galaxy Vol. 2, Pirates of the Caribbean: Dead Men Tell No Tales, Cars 3, Coco, Thor: Ragnarok, and Star Wars: Episode VIII (Masters “Studios’ 2017 Forecast”). The expansion on the Star Wars series is obviously the most anticipated Disney film of the year. All other films expand on different Disney brands and assets. (continued)
Angie King (2/2) However, possibly the most exciting move of 2017 are the rumors of Disney making a bid for Netflix. Although these rumors are not confirmed, they do show Disney’s efforts to expand and participate in the fervor of mergers and acquisitions. CEO Bob Iger was asked to address these rumors. He commented “We think there’s some really interesting opportunities, given what’s going on from a technological perspective, to both improve our businesses and also improve the consumer experience by selling directly to consumers…and we’re considering and exploring various ways to accomplish this” (Chmielewski). All of Disney’s films, possible expansion, and its stability allow for strong run in 2017. The same cannot be said for Sony. Sony’s major cyber security breakdown two years ago led to a rough couple of years. And the coming year doesn’t seem like it will be any easier. Despite the major corporate breakdown, the CEO, Michael Lynton, managed to keep his job throughout the mess. Lynton does plan to leave the company at some point but plans to stay on for an undetermined amount of time. Mismanagement in Sony has led to a lot trouble. “Given the uncertainty that his departure has created, notably regarding the future of film studio chief Tim Rothman, a long transition would create big problems. Sony is under pressure to fill its pipeline and talent representatives are reluctant to set up major projects if it is unclear who is going to be in charge” (Masters “As Michael Lynton Exits”). There have also been rumors of CBS acquiring Sony Entertainment, although both parties have repeatedly denied the claims. It might be better for Sony to make a decisive act, either get rid on Lynton and restructure, or sell. The indecisiveness is causing a lack of productivity, leading to a disappointing 2017.
Works Cited Chmielewski, Dawn. “Hollywood’s Merger Mania: Inside the Studios’ “Size Anxiety.” Scramble to Match Silicon Valley.” The Hollywood Reporter. 11 January 2017. Web. 26 January 2017. Condon, Tali Arbel and Bernard. “AT&T’s $85.4B Deal for Time Warner: A New Bet on Synergy.” The Big Story. Associated Press. 23 October 2016. Web. 29 January 2017. Masters, Kim. “As Michael Lynton Exits, Will Sony Double Down on Hollywood or Sell?” The Hollywood Reporter. 16 January 2017. Web. 29 January 2017. Masters, Kim. “Studios’ 2017 Forecast: Big Bets, Franchise Fears and Executive Intrigue.” The Hollywood Reporter. 5 January 2017. Web. 29 January 2017.
2017 is poised to be a very busy year for the media industry titans as they all try to establish themselves in the new media landscape. Comcast/NBC Universal had a very good year as they continue to compete with Disney for the top spot in terms of company value. However the company that is poised for the biggest growth will be Time Warner Cable. AT&T plans on purchasing Time Warner for $85.4B, barring Washington D.C. doesn’t interfere with this acquisition. This deal would be similar to back when Comcast purchased NBC, however the key part of this acquisition is that this new mega conglomerate would effectively control all forms of its content. They would control the “companies that distribute information and entertainment to consumers and those that produce it” (Arbel & Condon 1). In essence this merger would allow for AT&T/Time Warner to cut out any middleman since they now control all stages of content creation and distribution. This can help them financially as they try to catch up to the other larger conglomerates like Disney and Comcast/NBC Universal. Time Warner brings in strong content with networks like HBO and AT&T can use its impressive arsenal of media delivery systems such as cellular devices and Direct T.V to give Time Warner some of it’s edge back. However this all is in jeopardy as President Donald Trump has vowed to kill such a merger since it “puts too much power in hands of too few” (1). We will have to wait and see what Washington D.C. decides to do, but if they couldn’t stop Comcast and NBC from merging then I doubt that they can stop this. Time Warner should see a decent boost next year and could potential make the media landscape even more competitive. On the other end of the spectrum I believe that Viacom is headed in a negative direction. The company had been mislead by leadership and failed to complete a merger with CBS. Their successful channels are dying as Comedy Central has lost two of it’s biggest stars and MTV continues to struggle with it brand image. Paramount studios are producing flops and Viacom can no longer rest on its laurels. Viacom's many issues include “damaged brands, lackluster content, a broken culture, resistant distribution partners and lagging global reach" (Wolff 1). However recent change in leadership might be able to save this company from financial chaos. Shari Redstone has recent taken the reigns at the company and hopes to create an environment that addresses these issues directly. Redstone has appointed her new CEO in Bob Bakish who has stated his plan to turn Viacom around. “His strategy includes improving relations with the media company's television distributors as well as a focus on fixing MTV, he told Reuters in an interview late last year” (Toonkel & Baker 1). I believe that Viacom’s turn around does start from within, improving content that has been struggling like MTV. Once Viacom does this then they can turn their sights to acquiring other companies. However Viacom must fix their situation sooner than later as they continue to see their stock value falling during this transition period. 2017 could be a boom or bust year for this company.
"AT&T's $85.4B Deal for Time Warner - A New Bet on Synergy." Associated Press 23 Oct. 2016. Web.
Jessica Toonkel and Liana B. Baker. "Viacom Names Global Entertainment Group COO."Yahoo! News. Yahoo!, 05 Jan. 2017. Web. 30 Jan. 2017.
Wolff, Michael. "Michael Wolff on Shari Redstone – Yes, She Does Have a Plan for Viacom," The Hollywood Reporter 11 Jan. 2017. Web.
I don’t believe that any major media conglomeration is automatically chosen to have a good year. What factors in the most is how these conglomerations spend their money on advertising and the way in which they build their brand. Although there are some corporations that have a better chance at succeeding well economically and all around this year. The Disney conglomeration has been at the forefront of all of these giant corporations so my best bet is that Disney will again be on top but there is one thing that comes into question. That is, what will happen if AT&T buys out and merges with Time Warner. According to Tali Arbel and Bernard Condon, “The acquisition would combine a telecom giant that owns a leading cellphone business, DirecTV and an internet service with the company behind HBO, CNN, and some of the world's most popular entertainment, including "Game of Thrones," the "Harry Potter" franchise and professional basketball” (Arbel and Condon). That’s a big factor on whether or not Disney will still stay at the top of the charts. Time Warner is worth around 68 billion dollars on its own and if AT&T merges that total revenue and worth could very well be over 120 billion dollars. With that substantial amount of net worth they could most definitely give the top contenders a run for their money. According to NPR, “AT&T's bid to buy Time Warner for a hefty $85.4 billion has unleashed a flood of excitement on Wall Street, where analysts are now predicting a new wave of deal-making in the media industry” (Selyukh, Hollenhorst, Park). When the news first broke the media industry was in a frenzy wondering which conglomeration would now rule the industry and the frenzy still has not stopped. The merger is up in the air and the industry is just as on edge as it has been for several months. If I were to guess which conglomeration would not be successful in the 2017 year it would be Viacom. Viacom owns many networks that were once all anyone could talk about. These networks like MTV, VH1, and Nickelodeon have all become irrelevant to the world. The shows they produce now are cheesy and lack any originality. According to Paul Bond, Sumner Redstone, “the 93-year-old mogul controls CBS and Viacom through National Amusements, which owns the majority of voting shares of both conglomerates. But in February, as details of sexual trysts with former girlfriends were surfacing and lawsuits were flying, Redstone stepped down as chairman of CBS and Viacom” (Bond). Considering many media and political figures have such public lives you would think that they would want to watch their behavior but they continue to ruin their careers. Viacom did not have a good year especially with scandals so it is safe to say that it would be improbable for them to have a successful year.
Works Cited Arbel, Tali, and Bernard Condon. "AT&T's $85.4B Deal for Time Warner: A New Bet on Synergy." The Big Story. Associated Press, 23 Oct. 2016. Web. 30 Jan. 2017.
Bond, Paul. "Firings, Power Struggles and Studio Exits: Hollywood's Year of Executive Turmoil." The Hollywood Reporter. 22 Dec. 2016. Web. 30 Jan. 2017.
Selyukh, Alina, Maria Hollenhorst, and Katie Park. "Big Media Companies And Their Many Brands - In One Chart." NPR. NPR, 28 Oct. 2016. Web. 30 Jan. 2017.
Angie King (1/2)
ReplyDeleteNo company is slated to have a perfect year, especially with the merger and acquisition trend in the industry. However, there are some conglomerates that will have an incredibly successful year. There are others that have had a lot of turnover within the past year that might lead to a rough 2017. The media conglomerate best positioned to succeed in 2017 is Walt Disney Co. Some may argue that Time Warner Inc. is slated for success, considering the pending merger with AT&T. However, with the merger comes incredible uncertainty. Donald Trump also vowed to shutdown these billion dollar deals during his presidential campaign. Even if the merger went smoothly without any trouble from Trump, Time Warner would need to produce a lot of content to compete. “The acquisition would combine a telecom giant that owns a leading cellphone business, DirecTV and an Internet service with the company behind HBO, CNN, and some of the world’s most popular entertainment, including “Game of Thrones,” the “Harry Potter” franchise and professional basketball” (Condon). All of these assets to the new conglomerate sound like a success, however it will not come without resistance. Some analysts predicted “they would keep HBO exclusive for only DirecTV subscribers, or only make TNT or TBS available over AT&T Wireless…But as a practical matter, those kinds of strategies are expressly prohibited by the FCC and antitrust law” (Condon). This uncertainty is why Walt Disney Co. might pull away in 2017. Disney looks to produce a lot of success in 2017 without a lot of trouble. It reached record-breaking success in 2016, but that doesn’t mean it can’t reach the same in 2017. Studio chief Alan Horn spoke about both 2016 success and expectations for 2017 in that “Obviously, the comparison is a little tough with huge films from all five of our major brands in 2016 versus fewer films and no Disney Animation release in 2017—although we have two from Pixar…We think our upcoming slate is pretty impressive nonetheless, and our main focus continues to be making the very best films possible that stand out and compel audiences to go to the theater” (Masters “Studios’ 2017 Forecast”). Regardless of these reports, Disney is loaded with creative talent overlooking its different brands. The films to look out for in 2017 are: Beauty and the Beast, Guardians of the Galaxy Vol. 2, Pirates of the Caribbean: Dead Men Tell No Tales, Cars 3, Coco, Thor: Ragnarok, and Star Wars: Episode VIII (Masters “Studios’ 2017 Forecast”). The expansion on the Star Wars series is obviously the most anticipated Disney film of the year. All other films expand on different Disney brands and assets.
(continued)
Angie King (2/2)
ReplyDeleteHowever, possibly the most exciting move of 2017 are the rumors of Disney making a bid for Netflix. Although these rumors are not confirmed, they do show Disney’s efforts to expand and participate in the fervor of mergers and acquisitions. CEO Bob Iger was asked to address these rumors. He commented “We think there’s some really interesting opportunities, given what’s going on from a technological perspective, to both improve our businesses and also improve the consumer experience by selling directly to consumers…and we’re considering and exploring various ways to accomplish this” (Chmielewski). All of Disney’s films, possible expansion, and its stability allow for strong run in 2017.
The same cannot be said for Sony. Sony’s major cyber security breakdown two years ago led to a rough couple of years. And the coming year doesn’t seem like it will be any easier. Despite the major corporate breakdown, the CEO, Michael Lynton, managed to keep his job throughout the mess. Lynton does plan to leave the company at some point but plans to stay on for an undetermined amount of time. Mismanagement in Sony has led to a lot trouble. “Given the uncertainty that his departure has created, notably regarding the future of film studio chief Tim Rothman, a long transition would create big problems. Sony is under pressure to fill its pipeline and talent representatives are reluctant to set up major projects if it is unclear who is going to be in charge” (Masters “As Michael Lynton Exits”). There have also been rumors of CBS acquiring Sony Entertainment, although both parties have repeatedly denied the claims. It might be better for Sony to make a decisive act, either get rid on Lynton and restructure, or sell. The indecisiveness is causing a lack of productivity, leading to a disappointing 2017.
Works Cited
Chmielewski, Dawn. “Hollywood’s Merger Mania: Inside the Studios’ “Size Anxiety.” Scramble to Match Silicon Valley.” The Hollywood Reporter. 11 January 2017. Web. 26 January 2017.
Condon, Tali Arbel and Bernard. “AT&T’s $85.4B Deal for Time Warner: A New Bet on Synergy.” The Big Story. Associated Press. 23 October 2016. Web. 29 January 2017.
Masters, Kim. “As Michael Lynton Exits, Will Sony Double Down on Hollywood or Sell?” The Hollywood Reporter. 16 January 2017. Web. 29 January 2017.
Masters, Kim. “Studios’ 2017 Forecast: Big Bets, Franchise Fears and Executive Intrigue.” The Hollywood Reporter. 5 January 2017. Web. 29 January 2017.
2017 is poised to be a very busy year for the media industry titans as they all try to establish themselves in the new media landscape. Comcast/NBC Universal had a very good year as they continue to compete with Disney for the top spot in terms of company value. However the company that is poised for the biggest growth will be Time Warner Cable. AT&T plans on purchasing Time Warner for $85.4B, barring Washington D.C. doesn’t interfere with this acquisition. This deal would be similar to back when Comcast purchased NBC, however the key part of this acquisition is that this new mega conglomerate would effectively control all forms of its content. They would control the “companies that distribute information and entertainment to consumers and those that produce it” (Arbel & Condon 1). In essence this merger would allow for AT&T/Time Warner to cut out any middleman since they now control all stages of content creation and distribution. This can help them financially as they try to catch up to the other larger conglomerates like Disney and Comcast/NBC Universal. Time Warner brings in strong content with networks like HBO and AT&T can use its impressive arsenal of media delivery systems such as cellular devices and Direct T.V to give Time Warner some of it’s edge back. However this all is in jeopardy as President Donald Trump has vowed to kill such a merger since it “puts too much power in hands of too few” (1). We will have to wait and see what Washington D.C. decides to do, but if they couldn’t stop Comcast and NBC from merging then I doubt that they can stop this. Time Warner should see a decent boost next year and could potential make the media landscape even more competitive.
ReplyDeleteOn the other end of the spectrum I believe that Viacom is headed in a negative direction. The company had been mislead by leadership and failed to complete a merger with CBS. Their successful channels are dying as Comedy Central has lost two of it’s biggest stars and MTV continues to struggle with it brand image. Paramount studios are producing flops and Viacom can no longer rest on its laurels. Viacom's many issues include “damaged brands, lackluster content, a broken culture, resistant distribution partners and lagging global reach" (Wolff 1). However recent change in leadership might be able to save this company from financial chaos. Shari Redstone has recent taken the reigns at the company and hopes to create an environment that addresses these issues directly. Redstone has appointed her new CEO in Bob Bakish who has stated his plan to turn Viacom around. “His strategy includes improving relations with the media company's television distributors as well as a focus on fixing MTV, he told Reuters in an interview late last year” (Toonkel & Baker 1). I believe that Viacom’s turn around does start from within, improving content that has been struggling like MTV. Once Viacom does this then they can turn their sights to acquiring other companies. However Viacom must fix their situation sooner than later as they continue to see their stock value falling during this transition period. 2017 could be a boom or bust year for this company.
"AT&T's $85.4B Deal for Time Warner - A New Bet on Synergy." Associated Press 23 Oct. 2016. Web.
Jessica Toonkel and Liana B. Baker. "Viacom Names Global Entertainment Group COO."Yahoo! News. Yahoo!, 05 Jan. 2017. Web. 30 Jan. 2017.
Wolff, Michael. "Michael Wolff on Shari Redstone – Yes, She Does Have a Plan for Viacom," The Hollywood Reporter 11 Jan. 2017. Web.
I don’t believe that any major media conglomeration is automatically chosen to have a good year. What factors in the most is how these conglomerations spend their money on advertising and the way in which they build their brand. Although there are some corporations that have a better chance at succeeding well economically and all around this year. The Disney conglomeration has been at the forefront of all of these giant corporations so my best bet is that Disney will again be on top but there is one thing that comes into question. That is, what will happen if AT&T buys out and merges with Time Warner. According to Tali Arbel and Bernard Condon, “The acquisition would combine a telecom giant that owns a leading cellphone business, DirecTV and an internet service with the company behind HBO, CNN, and some of the world's most popular entertainment, including "Game of Thrones," the "Harry Potter" franchise and professional basketball” (Arbel and Condon). That’s a big factor on whether or not Disney will still stay at the top of the charts. Time Warner is worth around 68 billion dollars on its own and if AT&T merges that total revenue and worth could very well be over 120 billion dollars. With that substantial amount of net worth they could most definitely give the top contenders a run for their money. According to NPR, “AT&T's bid to buy Time Warner for a hefty $85.4 billion has unleashed a flood of excitement on Wall Street, where analysts are now predicting a new wave of deal-making in the media industry” (Selyukh, Hollenhorst, Park). When the news first broke the media industry was in a frenzy wondering which conglomeration would now rule the industry and the frenzy still has not stopped. The merger is up in the air and the industry is just as on edge as it has been for several months. If I were to guess which conglomeration would not be successful in the 2017 year it would be Viacom. Viacom owns many networks that were once all anyone could talk about. These networks like MTV, VH1, and Nickelodeon have all become irrelevant to the world. The shows they produce now are cheesy and lack any originality. According to Paul Bond, Sumner Redstone, “the 93-year-old mogul controls CBS and Viacom through National Amusements, which owns the majority of voting shares of both conglomerates. But in February, as details of sexual trysts with former girlfriends were surfacing and lawsuits were flying, Redstone stepped down as chairman of CBS and Viacom” (Bond). Considering many media and political figures have such public lives you would think that they would want to watch their behavior but they continue to ruin their careers. Viacom did not have a good year especially with scandals so it is safe to say that it would be improbable for them to have a successful year.
ReplyDeleteWorks Cited
Arbel, Tali, and Bernard Condon. "AT&T's $85.4B Deal for Time Warner: A New Bet on Synergy." The Big Story. Associated Press, 23 Oct. 2016. Web. 30 Jan. 2017.
Bond, Paul. "Firings, Power Struggles and Studio Exits: Hollywood's Year of Executive Turmoil." The Hollywood Reporter. 22 Dec. 2016. Web. 30 Jan. 2017.
Selyukh, Alina, Maria Hollenhorst, and Katie Park. "Big Media Companies And Their Many Brands - In One Chart." NPR. NPR, 28 Oct. 2016. Web. 30 Jan. 2017.