...Acquisition on DirecTV by AT&T Phillip C. Warren, Jr. Professor Daniel Goldsmith BUS 508 – Contemporary Business February 17, 2015 AT&T to Acquire DirecTV On May 18, 2014 Dallas, Texas based AT&T announced it had entered into a definite agreement where AT&T would acquire El Segundo, California based DirecTV in stock-and-cash transaction exceeding $67 billion. This agreement had been approved by both Board of Directors (AT&T, 2014). AT&T has a market value of approximately $185 billion (Informitv Mutliscreen Index, 2014) and is the second largest leader in the US communications by providing wireless, Wi-Fi, high speed internet, voice and cloud-based services (AT&T, 2014). DirecTV is a satellite service company, the second largest pay-television operator in the country and valued at $40 billion (Informitv Mutliscreen Index, 2014). Why was DirecTV Acquired by AT&T DirecTV has over 20 million television subscribers, an increase of over 4 million over eight years (Linderberger, 2014). But DirecTV does not provide broadband connections of their own. DirecTV must partner with other provides to provide there service to their customers (Cox, 2015). This puts DirecTV at a disadvantage against cable and telecomm networks to offer video on demand. This opportunity would allowed DirecTV to have the capability of providing broadband service to its customer and continue to attract new customers. AT&T is ranked number five in the US for...
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...and TV series; TV broadcasting; cable and satellite subscriber TV; and owns and develops internet properties. NWS operates primarily in the US, the UK, Australia and Asia. It is the world's second-largest media group as of 2011 in terms of revenue, and the world's third largest in entertainment as of 2009. The DIRECTV Group, Inc. (DIRECTV) is one of the leading providers of digital television entertainment services in the US and in Latin America. The company is engaged in acquiring, promoting, selling, and distribution of digital entertainment programs. They serve both commercial and residential customers through satellite. DIRECTV is also engaged in producing its own entertainment programs such as Hometown Heroes, Supreme Court of Comedy, Passions, Championship Gaming Series and others. Company Vision, Mission Statement News Corp. : "Creating and distributing top-quality news, sports and entertainment around the world." DirecTV: “To provide customers with the best video experience in the United States and Latin America both inside and outside of the home by offering subscribers unique, differentiated and compelling programming through leadership in content, technology and customer service.” Company History |June, 1994 – DirecTV launches services in the United States. | |October, 1994 – DirecTV attains nationwide availability...
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...The $84.5 billion AT&T-Time Warner merger should be denied by the federal government for multiple reasons. Based on what what I have learned about white collar crime and the media deal between the two telecommunication companies, this merger is a deal that could put the company at risk of committing white collar crimes. Both AT&T and Time Warner are already big corporations in the media industry, and their union will make even fewer titans. It will lead to a huge amount of power for AT&T and will be in violation of anti-trust laws set forth by the government itself. This deal is not in the public interest and federal regulators should scrutinize this deal and consider the effect it will have on smaller telecommunication businesses, consumers, and employees. Time Warner owns popular media companies such as CNN, HBO, and Warner Bros. Studios. AT&T is a major provider of telephone, internet and cable services across the nation. Both of these companies are incredibly large and prosperous on their own. Together, they would make the few number of companies that dominate the telecommunications market even smaller. This could have a negative effect on the free-market economy if they use this power to monopolize the market. This is exactly what Anti-trust laws were designed to prevent. The Clayton Act, an...
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...not enough profit in the TiVo Series2 box for CE manufacturers to make their required margins. TiVo reduced the number of parts, outsourced to a very efficient contracting firm, and started selling boxes. In addition to the retailer deals, TiVo worked with manufacturers to gain broader distribution for the TiVo technology. Porter’s Five Forces Analysis The Threat of new entrants is high. TiVo confronted a rash of new entrants. Biggest part of the technology, such as PC, hard drives, MPEG is available to anyone. For hardware, capital requirements are high and TiVo is defending its intellectual property patents aggressively to compete with new entrants. While patents have contributed to keep TiVo’s advantage, litigation has been costly and time-consuming. Besides, TiVo also focused on innovating new technology and features. For software, capital requirements are low and therefore the threat of new entrants is higher than for hardware though the reputation of TiVo remained strong in the consumer markets. The Power of buyers is low. The U.S. markets for TVS, TV-related devices, and TV services were large, with around 105 million households owning a TV in 2005 and the DVR penetration increase very fast recently these years. Under the current purchase scenario, switching cost is high for many consumers because of a combined initial hardware investment and...
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...Disney’s theme park strategy underscores the importance of vertical integration for the company as a means to exert total control not only over the individual segments of the media value chain, but also over the individual value chains of its business units. For example, by owning all elements of the theme park value chain, starting with travel agencies, over food and merchandising, to the accommodation of the parks’ visitors, Disney made sure that all possible revenue streams were channeled into the group without intermediary-related losses. Despite its precarious financial situation, Disney further extended its vertical reach by investing in the development of a new cable venture, The Disney Channel, launched in 1983, which allowed the exploitation of Disney content on the additional distribution platform cable television. Disney also decided to vertically integrate into syndication in order to exploit further revenues by licensing the individual film rights of Disney’s by now extensive television content library to independent television stations. The merger presented substantial benefits for both sides: Miramax gained guaranteed access to Disney’s national and international distribution network, and Disney could increase its content product diversity by securing content of the type that it lacked in its Disney, Touchstone and Hollywood Pictures output (Lyons, 2003). Through the Miramax acquisition Disney increased movie output from 18 films per year in 1988 to 68 new films...
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...1952 (News Corporation, 2011). About 10 years later, he had a chain of newspaper companies. His acquisitions went on taking over media companies in the UK such as the News of the World, and in the US such as the San Antonio Express News. By 2010, this company had become a conglomerate with revenues of about US $33 billion and assets of over US $50 billion. The company’s portfolio includes Fox News, 20th Century Fox, Sky, MyNetworkTV and National Geographic Channel Worldwide among others (Cable Network Programming, 2012; Direct Broadcast Satellite Television, 2012; Television; 2012). SWOT Analysis Strengths News Corp’s ascent to the top media conglomerates in the world is a tale of strategic choice of products to make up its diverse portfolio. Subsequently, this company has a substantial stake of the market because it has businesses in major types of media. In addition, it is involved in publishing, and its cable network undertakes production and licensing of programs and news for cable television systems in USA. The scope of this company’s activities extends to various parts of the world; News Corp operates in the US, Latin America, Europe, Asia and it has interests in Turkey and Israel among other countries (News Corp Ltd. SWOT Analysis.2012). News Corp also gains from its position as one of the top five companies in the world, based on the millions of homes that access its media services. For instance, Fox News’s reach stood at 99 million households by 2011. Its corporate...
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...Preparing to Conduct Business Research: Final Brent Byerly, Michelle Kendrick, Emily Maldonado Jarell Reed, Ceasar Sciocia Business Research RES/351 Stephen Grunig University of Phoenix 18 May 2015 Research Question: Research questions provide “means” to determine possible answers or solutions, within thoughts or to provide reasonable data In today’s entertainment services and ever changing platforms, how do cable or satellite companies continue to be relevant without becoming obsolete technologically and over saturated with competition that it alienates the consumer? Many research questions will arise, to see whether or not; our business provides the best in television programming. 1. Does Direct TV provide fast and friendly services? 2. Among other brand for commercial television, why do you choose Direct TV? 3. Do we provide television packages at a reasonable price? 4. On a scale from 1-10, with 10 being the highest, how would you rate our company within viewing purposes? 5. We also provide bundling services, is this something you as a customer like? Data Analysis Approach Data analysis refers to evaluating data using logical reasoning and to examine all of the data provided. There are so many tests that can be used to determine accuracy within a business in providing customers satisfaction through data. Within using the null hypothesis, our company will benefit. Parameter is a previous measurement of the sample of the population. Within...
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...2010 Santa Clara University MGMT 162- Capstone Professor Schneider Winter Quarter:2010 NETFLIX: A COMPANY ANALYSIS Prepared By Group 5: Alex Krengel, Annie Dudek, Rick Momboisse, Trish Paik, & Tyler Martin  Table of Contents I. Wall Street Journal Article and Executive Summary ..4 I A. Wall Street Journal Article 4 I B. Executive Summary ..5 II. External Analysis ..7 II A. Industry Definition ..7 II B. Six Industry Force Analysis ..8 II C. Macro Environmental Forces Analysis, Economic Trends, and Ethical Concerns ..15 II D. Competitor Analysis ..17 II D. 1 Netflix’s Competitors ..17 II D. 2 Netflix’s Primary Competitors ..17 II D. 3 Primary Competitors’ Business Level and Corporate Level Strategy ..18 II D. 4 How Competitors Achieve Their Strategic Position ..18 II D. 5 Willingness to Pay ..21 II D. 6 Comparative Financial Analysis ..22 II D. 7 Implications of Competitor Analysis ..23 II E. Intra-Industry Analysis ..24 III. Internal Analysis ..24 III A. Business Definition/Mission ..24 III B. Management Style ..24 III C. Organizational Structure, Controls and Values ..25 III C. 1 Organizational Structure ..25 III C. 2 Organizational Controls ..25 III C. 3 Organizational Values ..25 III D. Strategic Position Definition ..26 III D. 1 Corporate Level ..26 III D. 2 Business Level ..27 III D. 3 Resource & Capability Level ..28 Value Minus Cost Profile ..28 Value Chain ..28 VRIO Analysis ..28 Consumer Retention Analysis ..29 4Ps Analysis ...
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...Time Warner Cable 200 8 A N N U A L R E PO R T Time Warner Cable is the second-largest cable operator in the U.S. and a major provider of communications and entertainment services to homes and businesses. Our technologically advanced, well-clustered operations serve about 14.6 million customers in 28 states, with our largest operations located primarily in five geographic areas: New York State (including New York City), Texas, Ohio, the Carolinas and Southern California (including Los Angeles). Time Warner Cable is built on a foundation of technological innovation and commitment to the communities we call home. VIDEO • Time Warner Cable offers packages of ff cable channels to fit a wide variety of budgets. With Digital Cable, customers have access to more than 200 channels, On Demand, parental controls and optional DVR service. • Time Warner Cable’s Digital Cable is the “Home of Free HD.” Our highdefinition service delivers the best fi HD channels and HD On Demand. • On Demand gives customers thousands of viewing choices instantly, with new movies, shows and sporting events added every day—many in HD. • Start Over® is an Enhanced TV feature that lets viewers restart a program already in progress, at the push of a button, even if they haven’t programmed their DVR. HIGH-SPEED DATA • Road Runner High-Speed Online delivers a blazing-fast Internet connection with speeds up to three times faster than standard DSL packages. • Security Suite comes with every subscription and delivers...
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...portion of the entire industry which includes brick and mortar (Blockbuster) and DVD vending machine rentals (Redbox), mail delivery (Netflix and Blockbuster), and online rental (Netflix, Amazon, and iTunes), pay-per-view video (available from specialty suppliers such as HBO and Showtime through your cable provider), and on-demand services (VOD; those offered through digital cable providers), as well as brick and mortar (Wal-Mart and Best Buy) and online purchasing (Amazon and iTunes). Historically speaking, this industry began as stand-alone brick and mortar rental stores such as Blockbuster and the later entrant Hollywood Video/Movie Gallery (which for the most part were all corporately-owned, with small portions of franchised locations) and local rental businesses. They started in VHS and progressed to DVDs along with technology and household adoption. They would typically carry about 2,500 titles and performed better when copies were rented and out of the store—the longer period the better. (Spinola) This would influence customers to make a different rental and come back again to find the title they wanted. Furthermore, with renters holding titles for longer periods of times, rental stores would enforce late penalties when titles were not returned within their allotted rental window. Because of the inconvenience of going to the store to find your desired title stocked out, and fed up with late fees,...
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...Blockbuster Video or Netflix This case started as Blockbuster Video but has morphed to include Netflix. The issues facing the two companies are similar, so you can choose to address the case from the perspective of either company. Just specify which perspective to use. In 1985, Blockbuster Video (now a subsidiary of DISH Network ticker: DISH) quickly became a sensation. Households had just begun to acquire video-tape players in earnest. Few people were willing to pay $85 to buy Hollywood videos. Cable TV existed, but most people still watched broadcast television stations, and only a few premium Cable channels existed. Satellite receivers existed, but the huge satellite antenna was generally only used by people who lived in the middle of nowhere and had the space to put the ugly dishes. Customers quickly jumped onto the idea of renting videos. The early market was dominated by small mom-and-pop rental shops that bought a few copies of hit movies and rented them in a small regional area. For a while, video-rental stores had a tinge of disrespectability because many of them rented adult videos. Then, Blockbuster Video went national with large, bright, well-lit stores. To remain family-oriented, the chain does not carry videos with anything more than an ―R‖ rating. Blockbuster quickly took over the market. The original system pioneered the use of bar codes. Customers carried a bar-coded ID card and movie cases were printed with specific codes. The computer system made...
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...HARVARD BUSINESS SCHOOL 9-501-038 REV: OCTOBER 14, 2005 LUC WATHIEU MICHAEL ZOGLIO "Look at these guys ...Thetj decide what we watch and when we watch it. ..." "Network programmers-who needs them? Program your own network. TiVo. TV your way." Between these two lines, the TiVo commercial showed a pair of burly men throwing a TV network's chief programmer out of the window of a tall office building. Brodie Keast, TiVo's vice president of marketing and sales, had replayed the ad a dozen times on that morning of May 2000, and he still found it to be as hilarious as the first time he saw it. The TiVo digital video recorder, beyond its many advanced features, made a big idea real-if you owned the TiVo black box and subscribed to the TiVo service, you could really control what you watched and when you watched it. TiVo's marketing team intended to get that big idea across through a catchy communications campaign, with a boldly humorous tone that would help consumers envision how TiVo restored the fun of television. Fourteen months into the launch, TiVo had signed up 42,000 subscribers, with a current rate of 14,000 new subscribers per quarter. With 102 million TV-watching households in the U.S., that was only about .04% penetration, despite availability in most major consumer electronics stores across the nation. Yet everyone who owned TiVo seemed satisfied with it, with 72% of owners even claiming that...
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...physical components of a company with information. A business engaged in virtual integration owns only their brand and their clients. This eliminates the need to physically produce, ship or handle any products as they are now outsourced. Read more: http://www.businessdictionary.com/definition/virtual-integration.html#ixzz3EphPUex0 ://www.businessdictionary.com/definition/integration.html#ixzz3EpfP12T2 DEFINITION of 'Vertical Integration' When a company expands its business into areas that are at different points on the same production path, such as when a manufacturer owns its supplier and/or distributor. Vertical integration can help companies reduce costs and improve efficiency by decreasing transportation expenses and reducing turnaround time, among other advantages. However, sometimes it is more effective for a company to rely on the expertise and economies of scale of other vendors rather than be vertically integrated. INVESTOPEDIA EXPLAINS 'Vertical Integration' Backward and forward integration are types of vertical integration. A company that expands backward on the production path has backward integration, while a company that expands forward on the production path is forward integrated. Examples of vertical integration include: - A mortgage company that both originates and services mortgages, meaning that it both lends money to homebuyers and collects their monthly payments. - A solar power company that produces photovoltaic products and...
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...MGMT6 Chapter 1: Management Pedagogy Map This chapter begins with the learning outcome summaries and terms covered in the chapter, followed by a set of lesson plans for you to use to deliver the content in Chapter 1. Lesson Plan for Lecture (for large sections) Lesson Plan for Group Work (for smaller classes) Assignments with Teaching Tips and Solutions What Would You Do? Case Assignment––Netflix Self-Assessment––Is Management for You? Management Decision––Should We Try to Make More Money Management Team Decision––Negotiating with Investors Practice Being a Manager––Finding a Management Job Develop Your Career Potential––Interview Two Managers Reel to Real Video Assignment: Management Workplace ––Camp Bow Wow Review Questions Additional Activities and Assignments |Highlighted Assignments |Key Points | |What Would You Do? Case Assignment |After a period of phenomenal growth, Netflix faces several challenges as it looks | | |to develop new ways to deliver movies. | |Self-Assessment |Students get a first glimpse to determine if their...
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...Fiscal Year 2011 Annual Financial Report And Shareholder Letter January 2012 Dear Shareholders, Fiscal 2011 was a year of great accomplishment for The Walt Disney Company, marked by creativity and innovation across our businesses globally, record financial results and numerous important steps to position the Company for the future. While 2011 brought us so much to cheer about, it was also marked by profound loss, with the passing of Steve Jobs. Steve’s incredible stewardship of Pixar, and his decision to sell Pixar to Disney in 2006, brought Steve into the Disney family, as a board member, a shareholder, a mentor, and a friend, and we were so lucky for all that he represented and all that he contributed. Disney, ESPN, ABC, Pixar, and Marvel are an amazing collection of brands that grow stronger every day as new platforms and new markets provide enormous new opportunities for high quality content and experiences. To that end, we are fortunate to have a talented group of employees who are committed day in and day out to building our brands around the world. Since becoming President and CEO in 2005, I have focused on three strategic priorities: creating high-quality family content, making experiences more memorable and accessible through innovative technology, and growing internationally. In fiscal 2011, net income attributable to Disney was a record $4.8 billion, an increase of 21% over last year, and revenue was a record $40.9 billion, up 7% from last year. Diluted earnings...
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