Table of Contents for Part A Group Work

1.0 Industry of Entertainment ................................................................................................... 1

2.0 Important Characteristics of Entertainment Markets ......................................................... 1
3.0 Market Value of Entertainment Industry ............................................................................ 4
5.0 Trends .................................................................................................................................. 6
5.1 Over The Top Video Streaming Services ......................................................................... 6
5.2 Rise of Smartphone Apps ................................................................................................ 9
5.3 Extending media experiences into physical experiences .............................................. 11
5.4 Capitalizing on Home Markets ...................................................................................... 11
5.5 Move or adapt ............................................................................................................... 13
7.0 Conclusion ......................................................................................................................... 13
8.0 References ......................................................................................................................... 14

Table of Contents for Part B Individual Work

1.0 Industry of Entertainment ................................................................................................... 1
2.0 Important Characteristics of Entertainment Markets ......................................................... 1
3.0 Market Value of Entertainment Industry ............................................................................ 4
5.0 Trends .................................................................................................................................. 6
5.1 Over The Top Video Streaming Services ......................................................................... 6
5.2 Rise of Smartphone Apps ................................................................................................ 9
5.3 Extending media experiences into physical experiences .............................................. 11
5.4 Capitalizing on Home Markets ...................................................................................... 11
5.5 Move or adapt ............................................................................................................... 13
7.0 Conclusion ......................................................................................................................... 13
8.0 References ......................................................................................................................... 14
1.0 Multinational Corporation (MNC) ..................................................................................... 15
2.0 The Walt Disney Company ................................................................................................ 15
2.1 Historical Background of The Walt Disney Company ........................................................ 16
2.1.1 Mission ....................................................................................................................... 16
2.1.2 Leadership .................................................................................................................. 16
2.2 Businesses of The Walt Disney Company .......................................................................... 16
2.2.1 The Walt Disney Studio .............................................................................................. 18
2.2.2 Parks and Resorts ....................................................................................................... 18
2.2.3 Disney Media Networks ............................................................................................. 19
2.3 Globalization ...................................................................................................................... 21
2.3.1 Strategies for Reaching Globalization ........................................................................ 23
2.4 Impact on Globalization .................................................................................................... 26
2.4.1 Political ....................................................................................................................... 26
2.4.2 Economical ................................................................................................................. 27
2.4.3 Social........................................................................................................................... 29
2.4.4 Technology ................................................................................................................. 30
2.4.5 Environment ............................................................................................................... 31
2.4.6 Legal............................................................................................................................ 32
2.4.7 Potential impacts of Globalization on Walt Disney .................................................... 32
2.5 Marketing Plan of The Walt Disney Company ................................................................... 33
2.5.1 Marketing Strategy ..................................................................................................... 35
2.6 Financial Performance of The Walt Disney Company ....................................................... 38
2.6.1 Revenue ...................................................................................................................... 38
2.6.2 Net Profit Margin........................................................................................................ 39
II

2.6.3 Net Profit Margin in Comparison to Competitors ...................................................... 40

2.7 Recession ........................................................................................................................... 40
2.7.1 How does The Walt Disney Company deal with recession?....................................... 42
2.8 Strategy.............................................................................................................................. 44
2.9 Future Directions of The Walt Disney Company ............................................................... 45
4.0 Vivendi ............................................................................................................................... 48
4.1 Historical Background of Vivendi ...................................................................................... 48
4.2 Vivendi businesses............................................................................................................. 49
4.2.1 Television .................................................................................................................... 50
4.2.2 Digital.......................................................................................................................... 51
4.2.3 Cinema ........................................................................................................................ 52
4.2.4 Universal Music Group ............................................................................................... 52
4.2.5 Vivendi Village ............................................................................................................ 53
4.3 Globalization of Vivendi .................................................................................................... 55
4.3.1 Vivendis Future Acquisition Plans ............................................................................. 55
4.4 Global Brand Vivendi ......................................................................................................... 56
4.5 Internal Environment Analysis of Vivendi ......................................................................... 57
4.5.1 Innovative Positioning ................................................................................................ 57
4.5.2 Compliance Program (Quality Control) ...................................................................... 58
4.5.3 financials ..................................................................................................................... 59
4.5.4 Marketing ................................................................................................................... 60
4.6 Impacts of Current Global Economic Uncertainty on Vivendi........................................... 61
4.7 Action Plans of Vivendi in Dealing with Economic Downturn ........................................... 62
5.0 Time Warner ...................................................................................................................... 64
5.1 History Background of Time Warner ................................................................................. 64
5.1.1 Vision and Mission Statement .................................................................................... 67
5.2 Time Warners Business .................................................................................................... 67
5.2.1 Home Office Box Inc. .................................................................................................. 68
5.2.2 Turner ......................................................................................................................... 69
5.2.3 Warner Bros Entertainment ...................................................................................... 70
5.3 Globalisation ...................................................................................................................... 71
5.4 Global Brand ...................................................................................................................... 72
5.5 Internal Analysis ................................................................................................................ 73
5.5. 1 Marketing .................................................................................................................. 73
5.5.2 Finance ....................................................................................................................... 74
5.5.3 Human Capital ............................................................................................................ 75
III

5.5.4 Operations .................................................................................................................. 76

5.5.5 Research and Development ....................................................................................... 77
5.5.6 Corporate Social Responsibility .................................................................................. 77
5.6 Impacts of Current Global Economic Uncertainty on Time Warner ................................. 78
5.7 Solutions to Overcome Economic Downturns................................................................... 79
7.0 CBS Corporation ................................................................................................................ 80
7.1 Historical Background........................................................................................................ 81
7.1.2 Mission Statement ..................................................................................................... 82
7.2 Businesses ......................................................................................................................... 82
7.2.1 Entertainment ............................................................................................................ 82
7.2.2 Cable Networks .......................................................................................................... 83
7.2.3 Publishing ................................................................................................................... 83
7.2.4 Local Broadcasting ...................................................................................................... 83
7.3 Globalization ...................................................................................................................... 84
7.4 Global Brand ...................................................................................................................... 85
7.5 Competition ....................................................................................................................... 86
7.5.1 Television Network ..................................................................................................... 86
7.5.2 Television Production and Syndication ...................................................................... 86
7.5.3 CBS Interactive ........................................................................................................... 87
7.5.4 CBS Films..................................................................................................................... 87
7.6 Financial Performance ....................................................................................................... 88
7.7 Internal Environment Analysis .......................................................................................... 89
7.7.1 Strengths .................................................................................................................... 89
7.7.2 Weaknesses ................................................................................................................ 91
7.8 Global Economic Uncertainty ............................................................................................ 91
7.8.1 Impacts of Global Economic Uncertainty ................................................................... 91
7.8.2 Solutions to Overcome Economic Downturns ........................................................... 92
7.9 Risk Factors ........................................................................................................................ 93
8.0 References ......................................................................................................................... 95
8.1 The Walt Disney Company ............................................................................................ 95
8.3 Vivendi ........................................................................................................................... 96
8.4 Time Warner .................................................................................................................. 98
8.5 CBS Corporation .......................................................................................................... 100

IV

1.0 Industry of Entertainment

The entertainment industry, informally known as show business, is part of the tertiary
sector of economy which includes a large number of sub-industries devoted to
entertainment. However, the term is often used in the mass media to describe the mass
media companies that control the distribution and manufacture of mass media
entertainment. In the popular parlance, the term show biz in particular connotes the
commercially popular performing arts, especially musical theatre, vaudeville, comedy,
film, and music. It applies to every aspect of entertainment including cinema, television,
radio, theatre and music.
There are few types of entertainment:
I.
II.

Exhibition entertainment
Live entertainment

III.

Mass media entertainment

IV.

Electronic entertainment

V.

Music industry

These are the multinational companies we will include in our project paper:
I.
II.

The Walt Disney Company

21st Century Fox

III.

Vivendi

IV.

Time Warner

V.
VI.

Viacom
CBS Corporation

2.0 Important Characteristics of Entertainment Markets

The entertainment industries differ in important ways from traditional manufacturing

and service industries. Richard Caves (2000) enumerates seven ways in which the
creative industriesincluding fine arts, music, and motion picturesdiffer distinctly
from what he terms the humdrum industries:

Neither producers nor consumers know the demand for product until after it is
revealed. Creative products and services are experience goods and there is
symmetric ignorance of information, not an informational asymmetry.

The creative talents producing the product care about the creative output
explicitly, in addition to their pecuniary compensation in production.

The creators engage in joint multiplicative production with an array of diverse

inputs in which all inputs are essential, because there is less substitutability than
in other production processes.

Entertainment products are horizontally differentiated products. Each product

is unique and must be experienced before demand is known.

Products are vertically differentiated by the quality of the inputs used in

production. Furthermore, inputs of different quality levels may be combined
for example, a B-list screenplay and an A-list actor.

Profitability depends on temporal coordination and prompt realization of

revenues once assets are sunk. Delays may occur once assets have been
committed to production.

Creative products are durable and this leads to issues regarding rents, collection
and monitoring of royalties, warehousing, and retrieval.

The seven features identified by Richard Caves are essential in understanding the
markets for entertainment products both qualitatively and quantitatively (Walls 2005).
Additionally, the demand for entertainment has two properties that are deserving of our

particular attention. The first is that consumption of entertainment requires the time of
the consumer. The second is that the demand for entertainment is not fixed in advance
of the product being produced; instead, it is discovered by the consumers after the
product has been consumed. We will discuss these properties of entertainment demand
briefly.
The time-cost element is important in understanding the demand for entertainment,
because consumption of entertainment necessarily implies customer-supplied inputs;
recognizing this explicitly is essential if we are to understand the functioning of demand
and supply in this market. Perhaps the best illustration of this point, in a more general
context, is the seminal paper by Arthur De Vany and Thomas Saving (1983). De Vany
and Saving demonstrate that when all else is equal, consumption cost is lower for a
product that requires less time to consume. Of course, price can be adjusted and this
implies a tradeoff between time-cost and the monetary price. In the entertainment
industry, this may also involve substitution across alternative media for a similar
product. For example, reading an 800-page book may involve a substantial element of
time, but a consumer may substitute a videocassette or DVD film version of the book
to be viewed on a computer or television monitor, or a compact disc or audiocassette
version of the book to be listened to while at home, at work, or while commuting. All
of these alternative means of consumption involve tradeoffs in which the time-cost of
consumption varies greatly and may be of primary importance in consumption
decisions.
The demand for entertainment products is not fixed in advance, but is discovered by
consumers as they consume many entertainment products. Understanding this aspect of
demand is essential if one is to make sense of many of the entertainment industrys
unique business practices. When movie audiences see a movie they like, they make a

discovery and tell their friends about it. This and other information is transmitted to
other consumers and demand develops dynamically as the audience sequentially
discovers which movies it likes. Supply adapts to revealed demand through flexible
exhibition contracts and other business practices that permit the increasing returns in
film demand to be realized. For example, early viewers of a motion picture may
substantially affect the choices of other potential viewers. This type of behavior is
known in the social sciences as, variously, herding, contagion, network effects,
bandwagons, path-dependence, momentum, and information cascades (Arthur 1994;
Banerjee 1992; Bikhchandani et al. 1992). The particular algebraic models of this
behavior differ in the mathematical details, but they are all dynamical processes:
Demand depends on revealed demand. As a result of this sequential demand process,
initial advantages in movie attendance can lead to extreme differences in outcomes
when demand has recursive feedback. De Vany and Walls (1996) showed that boxoffice revenues have a contagion-like property where the week-to-week change in
demand is stochastically dependent on previous demand. A big opening of a bad movie
can cause consumption to evaporate. But a big opening of a good movie can lead to an
avalanche of attendance. Demand for movies, music, fashion, and other entertainment
products and services are characterized by extreme uncertainty due to the nature of
dynamical demand.

3.0 Market Value of Entertainment Industry

This timeline presents the forecast value of the global entertainment and media market
from 2015 to 2019. In 2016, the market is expected to reach a worth of just over two
trillion U.S. dollars.

The entertainment and media market encompasses every broadcasting medium from
newspapers, magazines, TV and radio and popular forms of entertainment such as film,
music and books.
The compound annual growth rate of the entertainment and media spending worldwide
has been predicted between 2013 and 2018, by sector. Projections indicated that the
sector which will see the most compound annual growth rate will be internet advertising,
which will grow by 10.7 percent during the stated time. In comparison, magazine
publishing is expected to shrink on an annual basis by 1.9 percent.
Despite forecasts revealing that online formats will experience the most annual growth,
a further breakdown of worldwide entertainment and media revenue in 2009, 2013 and
2018, by platform reveals that non-digital platforms such as magazine and newspaper
publishing will continue to dominate. In 2009, digital revenue for the industry totaled
342 billion U.S. dollars and non-digital revenue totaled 1,038 billion U.S. dollars. By
2018, it is expected that digital revenue will total 994 billion. Despite digital revenue

increasing more over the stated time, forecasts suggest that non-digital revenue will still
generate more with an expected amount of 1,156 billion U.S. dollars in 2018.
A third way in which the industrys revenue can be analyzed is through source and this
has been recorded for the years 2009, 2013 and a forecast for 2018. Throughout this
time series, the revenue for the industry generated by consumers will hold a larger share
than advertising and internet access revenues, as it will grow from a total of 698 billion
U.S. dollars in 2009, to a total of 875 billion U.S. dollars by 2018.

5.0 Trends
5.1 Over The Top Video Streaming Services
The fiercest competition of the entertainment media takes place in our very
own household televisions. In 2015, about US$420 billion worth of revenue is
generated from the Entertainment & Media sector. The majority of people are now
choosing to stream videos through over-the-top (OTT) services. OTT services refers
to film and television content which are delivered through the internet thus reducing
the need for traditional cable or satellite TV subscriptions. As of 2015, 78% of the
U.S consumers subscribes to at least one OTT service. In 2014, 91% of U.S
consumers said that they world subscribe to cable TV, but in 2015, the number has
fallen to 79%.

The Entertainment & Media industry is in flux, with viewers questioning the value of
pay-TV subscriptions

And also being drawn to on-demand streaming services

While clamoring for greater personalization and control

As far as it goes, traditional TV players are not able to keep up with the pace
of OTT. If it had any impact, it would be adverse on the traditional TV players, in
which it had boosted the growth of OTT. Today, less than 1/7 U.S. consumers had
actively used TV Everywhere (TVE). In contrast, many entertainment & media
companies have sold their contents to streaming services such as Netflix, Amazon,
and Hulu. This events had actually helped OTT to gain a firm grasp in the industry
and on the end-user relationship. They build their brands by airing the content
supplied by the studios or networks. They are also doing this with lower prices than of
the traditional pay-TV bundles.
Networks also have to produce more unique content and own more of their
shows. As the pressure builds on the traditional TVs, networks cant rely on their
traditional approaches to achieve favorable brandings or subscriptions. Instead,
companies have to start repositioning themselves into smaller packages. Not only that,
but networks have to offer a steady supply of original and unique content to
differentiate themselves making them indispensable. Networks will also have to
practice more control over their contents if they are to expand their content to OT or
8

third-party distribution opportunities. The weaker networks with less favorable

content will lose out in this highly competitive environment.
Traditional TV players, such as cable and satellite must weigh their options to
react to the consumers desire for fewer channels, more personalized and lower fees.
Networks can create more segmented, affordable bundles to maintain subscription
rates, launch OTT services, or integrate packages of OTT services with broadband
access
Many variations of these options have been adopted. For example, Verizon,
mentioned that 1.3 of its FiOS video subscribers had chosen the companys skinny
bundle. This does only happen in the U.S. but there are also cases in which companies
in U.K. had the same results as well. Content providers can also learn from digital
music providers on balancing the depth with discovery for viewers, hence, capturing
value.

5.2 Rise of Smartphone Apps

The future of Entertainment & Media is very much visible in the hands of our
childrens smartphones. According to comScore, users spend 71% on mobile devices
using apps. This definitely affects the way consumers consume entertainment and
media. Some examples, would be Major League Baseball Advanced Medias At Bat
for some sporty action. With all the capabilities of a smartphone, the entertainment &
media companies will have very high competition if they were to enter the market, not
just with the other networks, but with other app producers from games to dating apps.
The usage time on smartphones are highly concentrated in social media apps
such as Facebook, Instagram, and Twitter. Time spent are also highly regarded to
9

entertainment brands such as Googles YouTube, Pandora, and Apple Music. The top
5 apps managed to capture 88% of the time a user spends on all of the applications
installed on their smartphones according to comScore. With such a large number of
audience, these apps are becoming more and more attractive to advertisers. In Q4 of
2015, 80% of Facebooks $5.6 billion in advertising revenue came from its mobile
app. As compared to 64% of Facebooks revenue over the same period in the year
before. This clearly shows the significance of the mobile apps we have in our
smartphones nowadays.
As mobile consumption growth increases, may it be through the apps or other
measures, the quality of mobile app advertising is significantly improving, which
drives better returns for marketers as they increase their mobile advertising expenses.
Even more insight into the mobile apps, ad formats are capable of taking advantage of
touch-screen features, such as tapping and swiping, ad GPS capabilities to actually
localize the advertisements shown. The ways of advertising are also unlimited, from
short videos to rich medias, such fun and interesting advertisement will get users to
watch and share them with others. To increase the strengths of their advertisement,
app-focused publishers are becoming more adept at managing the rich trove of mobile
data.
With such an industry of the smartphone apps, entertainment and media
companies will have to work with a robust network of distributors and platform to
reach their target users in order to deliver their content. They will also have to create
several versions of their products which is able to fit across platforms. This includes,
apps such as Snapchats Discover, Facebooks Instant Articles, and Apple News.
Even as they establish relationships with social media sites, entertainment and media
companies must keep in mind of its own apps of their business models. With TVs
10

being the key connected device in the living rooms of every home, providing a larger
context for apps and internet content, media owners must take into consideration
modern, user-friendly apps which work well on multiple devices. This will then
translate into more engaged user experience for the community.
5.3 Extending media experiences into physical experiences
The more time spent on the digital devices, the more the people feel connected
to their favorite artists, stars, and other fellow fans. The people want more live action,
direct interactions and know the happenings in the daily lives of their idols. Faster
growth is expected in the coming years in Asia, especially China. Even video gaming
or e-sports are becoming a live phenomenon. Here fans gather in an arena to watch
the players play live competitively.
In the current situation, live events can be seen to help build and strengthen
fandom. They are also the most direct way in monetizing digital entertainment into
the physical world such as ticket sales, merchandises and advertising. The live events
represent an attractive dynamic which drove companies such as Pandora which started
off as a 100% digital service to move on to physical activities. This also can be seen
in traditional publishers such as Time Inc. and New York Times when they had
announced their plans to express their interest to participate in live events as they
view it as an essential movement towards developing new offerings for their users.

5.4 Capitalizing on Home Markets

Most companies focus on market development, which is to find new sources
of growth by concentrating on geographic expansion. In the process of doing so,
sometimes companies may overlook pockets of growth within their home markets.
11

For example, the Latin population in the U.S. which is a sizeable, media-friendly, and
has high growth demographic that is still currently underserved in terms of quality of
content experiences for their users and advertisers.
The U.S. Latin population was 55.4 million in 2014 and is forecasted to reach
119 million by the end of 2060 which is an approximate increase of 115%. Latinos are
currently the biggest ethnic group in the country and they are the second fastest
growing ethnic group in the country next to Asian-Americans. According to Nielsen,
Latinos are very digitally active, watching more video on the Internet and on their
mobile phones than non-Latino whites. Smartphone penetration is also higher among
Latinos, and Latino moviegoers make up 23 percent of all ticket sales despite being
just 17 percent of the population.
There is room for more efforts like these, especially in video and
digital. Empire, Foxs hip-hop soap opera, which debuted in 2015 and was a surprise
ratings success, gaining nearly 17 million viewers by the end of the season,
demonstrates the explosive impact that media companies can have when they create
multicultural storylines that resonate with popular culture. In the second
season, Empire has added a more Latino flavor to its cast and subject matter and
expanded its audience in the process. This serves as a model not only for U.S.
companies but also for other E&M outfits in global regions that have diverse cultural
communities and emerging consumer segments that may also represent attractive
pockets of growth.

12

5.5 Move or adapt

The winners and losers in this coming fan-centric, direct-to-consumer world
have yet to be determined. What is clear today is the list of requirements for success.
Which are the attributes that will excite users, give them more customization, control,
and perceived value, and distinctive, habit-forming brands and experiences that turn
commodity eyeballs into devoted fans. Transitioning to a more direct-to-consumer
world will not be easy for many media companies. Existing capabilities need to be
reimagined to stress content development, user insights, digital distribution, fan
management, and mobile advertising sales, as well as app design, data science, and
new business models. This will require sustained senior leadership and greater
investment in content, technology, and experience. It will mean making tough
decisions regarding brands and businesses not associated with a meaningful fan base.
Considering the unimaginably fast clock speed in entertainment and media today,
entertainment and media companies cannot afford any delay.

7.0 Conclusion

Aspects as

The Walt

21st

per 2014

Disney

Century

Company

Fox

Vivendi

Time
Warner

Viacom CBS
Corporation

Sector

Media

Media

Media

HQ Location

Burbank,

Paris,

New York,

CA

France

NY

Years on List

21

21
13

Revenue

Profits

Assets

Employees

$ 48813

$12001

$ 14483

million

million

million

$ 7501

$ 1050

$ 2959

million

million

million

$ 84186

$35124

$24658

million

million

million

180000

16 600

20125

17.95%

20%

5.47%

12%

8.89%

42%

Profit as % of 15%
Revenues
Profit as % of 8%
Assets
Profit as % of 16%
Stockholder
Equity

8.0 References

14

1.0 Multinational Corporation (MNC)

MNC is also known as multinational enterprise, International Corporation,
transnational corporation or a stateless corporation. A MNC is an organization that
operates in one or more country other than their home country, usually a large
corporation which produces or sells goods and services in various countries. MNC
derives a quarter of its revenue from operations outside of its home country.

2.0 The Walt Disney Company

The Walt Disney Company, commonly known as Disney, is an American
diversified multinational mass media and entertainment conglomerate headquartered at
the Walt Disney Studios in Burbank, California. It is the world's second largest media
conglomerate in terms of revenue, after Comcast. Disney was founded on October 16,
1923, by Walt Disney and Roy O. Disney as the Disney Brothers Cartoon Studio, and
established itself as a leader in the American animation industry before diversifying
into live-action film production, television, and theme parks. The company also
operated under the names The Walt Disney Studio, then Walt Disney Productions.
Taking on its current name in 1986, it expanded its existing operations and also started
divisions focused upon theater, radio, music, publishing, and online media.
In addition, Disney has since created corporate divisions in order to market more
mature content than is typically associated with its flagship family-oriented brands. The
company is best known for the products of its film studio, The Walt Disney Studios,
which is today one of the largest and best-known studios in American cinema. Disney
also owns and operates the ABC broadcast television network; cable television
networks such as Disney Channel, ESPN, A+E Networks, and ABC Family; publishing,
15

merchandising, music, and theatre divisions; and owns and licenses 14 theme parks
around the world. The company has been a component of the Dow Jones Industrial
Average since May 6, 1991. An early and well-known cartoon creation of the company,
Mickey Mouse, is a primary symbol of The Walt Disney Company.

2.1 Historical Background of The Walt Disney Company

2.1.1 Mission
The mission of The Walt Disney Company is to be one of the worlds leading
producers and providers of entertainment and information. Using our portfolio of
brands to differentiate our content, services and consumer products, we seek to develop
the most creative, innovative and profitable entertainment experiences and related
products in the world.
2.1.2 Leadership
Disneys leadership team manages the worlds largest media company and is
the visionaries behind some of the most respected and beloved brands around the globe.
Their strategic direction for The Walt Disney Company focuses on generating the best
creative content possible, fostering innovation and utilizing the latest technology, while
expanding into new markets around the world.

2.2 Businesses of The Walt Disney Company

The Walt Disney Company, together with its subsidiaries and affiliates, is a
leading diversified international family entertainment and media enterprise with the
following business segments: media networks, parks and resorts, studio entertainment,
consumer products and interactive media.
16

The Walt Disney Company operates through four primary business units, which
it calls "business segments": Studio Entertainment, with the primary business unit The
Walt Disney Studios, which includes the company's film, music recording label, and
theatrical divisions; Parks and Resorts, featuring the company's theme parks, cruise
line, and other travel-related assets; Media Networks, which includes the company's
television properties; and Disney Consumer Products and Interactive Media, which
produces toys, clothing, and other merchandising based upon Disney-owned properties,
as well as including Disney's Internet, mobile, social media, virtual worlds, and
computer games operations. Three segments are led by chairmen, but Disney Consumer
Products and Interactive Media are currently both led by a president. Marvel
Entertainment is also a direct CEO reporting business, while its financial results are
primarily divided between the Studio Entertainment and Consumer Products segments.
While Maker Studios is split between Studio Entertainment and Media Networks
segments.
The company's main entertainment holdings include Walt Disney Studios,
Disney Music Group, Disney Theatrical Group, Disney-ABC Television Group, Radio
Disney, ESPN Inc., Disney Interactive, Disney Consumer Products, Disney India Ltd.,
The Muppets Studio, Pixar Animation Studios, Marvel Entertainment, Marvel Studios,
UTV Software Communications, Lucas film and Maker Studios.
The company's resorts and diversified related holdings include Walt Disney
Parks and Resorts, Disneyland Resort, Walt Disney World Resort, Tokyo Disney
Resort, Disneyland Paris, Euro Disney S.C.A., Hong Kong Disneyland Resort, Disney
Vacation Club and Disney Cruise Line.

17

2.2.1 The Walt Disney Studio

For over 90 years, The Walt Disney Studios has been the foundation on
which The Walt Disney Company (NYSE: DIS) was built. Today, the Studio
brings quality movies, music and stage plays to consumers throughout the
world.Feature films are released under the following banners: Disney, including
Walt Disney Animation Studios and Pixar Animation Studios; Disneynature;
Marvel Studios; Disney|Lucasfilm; and Touchstone Pictures, the banner under
which live-action films from DreamWorks Studios are distributed. The Disney
Music Group encompasses the Walt Disney Records and Hollywood Records
labels, as well as Disney Music Publishing. The Disney Theatrical Group
produces and licenses live events, including Disney on Broadway, Disney On Ice
and Disney Live!
2.2.2 Parks and Resorts
When Walt Disney opened Disneyland on July 17, 1955, he created a
unique destination built around storytelling and immersive experiences, ushering
in a new era of family entertainment. More than sixty years later, the Walt Disney
Parks and Resorts (WDPR) segment of The Walt Disney Company has grown into
one of the worlds leading providers of family travel and leisure experiences,
providing millions of guests each year with the chance to spend time with their
families and friends making memories that will last forever.
Five world-class vacation destinations with 11 theme parks and 47 resorts
are at the heart of WDPR. We operate in North America, Europe and Asia -- with
a sixth destination open in Shanghai on June 16, 2016. WDPR also includes the
classic elegance of Disney Cruise Line with its four ships -- the Disney Magic,
Disney Wonder, Disney Dream and Disney Fantasy -- and plans for two new
18

ships; Disney Vacation Club, with more than 200,000 member families;
Adventures by Disney, which provides guided family vacation experiences to
destinations around the globe; Aulani, a Disney Resort & Spa, in Ko Olina,
Hawaii; and Walt Disney Imagineering, which creates and designs Disney parks,
resorts, cruise ships, attractions and entertainment.
2.2.3 Disney Media Networks
Disney Media Networks is a business segment and primary unit of The
Walt Disney Company that contains the company's various television networks,
cable channels, associated production and distribution companies and owned and
operated television stations. Media Networks also manages Disney's interest in its
joint venture with Hearst Corporation, A+E Networks and ESPN Inc.. Unlike the
four other business segments, it is the only one with two leaders or "co-chairs":
the presidents of ESPN and Disney-ABC Television Group. Thus, Disney has a
total of eight business unit leaders who report to the CEO and COO.
2.2.4 Disney Consumer Products and Interactive Media
Disney Consumer Products (DCP) is the business segment of The Walt
Disney Company and its affiliates that delivers innovative and engaging product
experiences across thousands of categories from toys and apparel to books and
fine art. DCP is focused on franchise growth and product quality and innovation.
This focus enables DCP to deliver compelling merchandise at retailers around the
world enriching consumers' experience with the Disney brand and its characters.
DCP is comprised of three business units: Licensing, Publishing and
Disney Store.
Disney Licensing

19

DCP's origins trace back to 1929 when Walt Disney licensed the image of
Mickey Mouse for use on a children's writing tablet. In 1932, Kay Kamen took
charge of what then became Disney Licensing, setting the standard for character
licensing within the entertainment industry. Today, as the world's largest licensor1,
DCP inspires the imaginations of people around the world by bringing the magic
of Disney into consumers' homes with products they can enjoy year-round. The
business is aligned around five strategic brand priorities: Disney Media, Classics
& Entertainment, Disney & Pixar Animation Studios, Disney Princess & Disney
Fairies, Lucasfilm and Marvel.
Disney Publishing Worldwide
Disney Publishing Worldwide (DPW) is the world's largest publisher of
children's books, magazines, and apps, igniting imagination through storytelling
in ever-inventive ways. DPW creates and publishes books and magazines both
vertically in-house and through an extensive worldwide licensing structure. As a
leader in digital products, DPW creates bestselling eBook titles and best-in-class
original apps that have garnered more than 50 awards to date. DPW is also
committed to the educational development of children around the world through
Disney Learning which includes our flagship learning brand, Disney
Imagicademy, as well as Disney English and other Disney themed learning
products. Headquartered in Glendale, California, DPW publishes books,
magazines and digital products in 85 countries in 75 languages. For more
information visit www.disneypublishing.com.
Disney Store

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The Disney Store retail chain, which debuted in 1987, is owned and
operated by Disney in North America, Europe, and Japan. Disney Store carries
high-quality products, including exclusive product lines that support and promote
Disney's key entertainment initiatives and characters, including DisneyPixar,
Lucasfilm and Marvel. Disney Store opened its first store in Glendale, California
and, in doing so, originated the themed retail business model. There are currently
more than 200 Disney Store locations in North America; more than 40 Disney
Store locations in Japan; and more than 80 Disney Store locations in Belgium,
Denmark, France, Ireland, Italy, Portugal, Spain and the United Kingdom, plus
online

stores

www.DisneyStore.com,

www.DisneyStore.co.uk,

www.DisneyStore.fr and www.DisneyStore.de. Each Disney Store location offers

a magical shopping experience that can only be delivered by Disney, one of the
world's largest and most successful entertainment companies. For more
information,

please

www.DisneyConsumerProducts.com/press/us/disneystore

visit
or

follow

us

at

www.Facebook.com/DisneyStore and www.Twitter.com/DisneyStore.

2.3 Globalization
The Walt Disney Company, one of the largest media and entertainment
corporations in the world, grew from the company founded in 1923 to being one
of the behemoths of globalization. In Walts day, the corporation was one studio
and one theme park. Today, there are numerous TV networks, additional theme
park openings, a cruise line, merchandising in US malls and airports, publishing
houses, real estate, hotel resorts, and so forth (Clandinin, 2006). In 1999, its

21

workforce had over 55,000 staff worldwide with revenue of $23 billion and profits
of $2 billion.
In 2004, the company revenue rose to $31 billion, a growth of $3 billion
since 2003. By 2005, the corporation had expanded to 129,000 (Page, 2006). With
a prosperous and successful US market, Disney understood that global expansion
was essential in order to achieve optimal market growth (Finnerty, 2007).
Disneyfication is the idea of bigger, faster, and better entertainment with
an overarching sense of uniformity worldwide (Campbell et al., 2005). The Walt
Disney Company has established, respectively over time, Disneyland, Walt
Disney World, Tokyo Disneyland, Disneyland Paris, and Hong Kong Disneyland
(Schmidt et al., 2007). It is now working on the Shanghai Disneyland Resort and
Disney Hawaii Resort. The first Disney theme park, called Magic Kingdom,
opened in Anaheim (California) in 1955. It was organised into four lands:
Adventureland, Frontierland, Tomorrowland, and Fantasyland. Afterwards, other
theme parks were built. For instance, in 1971, a Disney theme park was opened in
Orlando, Florida. Twelve years later, Tokyo Disneyland was opened, and in 1992
Euro Disney (now Disneyland Paris) was opened. Hong Kong Disneyland opened
in 2005 (Capodagli & Jackson, 2006).
The Walt Disney Companys revenues look like those of Coca-Cola and
McDonalds, both multinational giants that rely on non-US markets for more than
65 per cent of sales (Chandler et al., 2005). Disney is the epitome of a globalizing
media conglomerate, with stocks and investments, in addition to the theme park
industry, in magazine and book publishing, prime motion picture production, live
theatre, radio, World Wide Web, network television and cable broadcasting, and

22

tourism (Wasko, 2001). Unlike other behemoth businesses, Disney claims to

possess and share a friendly universality, with products continuously designed to
appeal emotionally to the largest possible audience. Indeed, according to Doris
(2006), Mickey Mouse may well be the most commonly recognized cultural figure
on earth.
Disney is like a cat: when it falls, it always falls back on its feet. In other
words, it is resilient and quick to recover. As a case in point, when Euro Disney
went bankrupt in 1994, amid criticisms that the theme park was too American for
Europeans, management made appropriate changes to cater to local tastes and
renamed the park Disneyland Paris. A couple of years later, it was reported that
Disneyland Paris had more visitors annually than either Notre Dame or the Louvre
(Kuisel, 2003). Walt Disney and Hong Kong reached an agreement to build a
theme park in the region in 1999 (Zhang, 2007); it finally opened in 2005. In the
beginning, it was not successful, but now it is getting much better (Marr, 2007).
Disney has also moved to India, after making a few changes in film
marketing, in an attempt to reach the countrys population aged less than fourteen
years of age (which is larger than the entire US population). By boosting growth
in this fashion, the company has decided to expand local Indian products and films
instead. Similar moves will be made in China, Russia, Latin America, and South
Korea (Marr & Fowler, 2007).
2.3.1 Strategies for Reaching Globalization
The Walt Disney Company, started in California more than eight decades
ago, occupies today the tenth position in the rank of the Best Global Brands. In
order to achieve this position, it was necessary that the focus of Disney was not

23

only in the market inside the United States, but in the Global Market. The
company today has their worldwide known amusement parks in three different
continents, stores in United States, United Kingdom, France, Italy, Spain and
Portugal; and licensed shops in nearly every country in the world.
The Strategies used by The Walt Disney Company for Reaching Global
Markets are Foreign Outsourcing, Licensing, and Direct Investment.
Due to the higher wages in the United States when compared to developing
countries, Disney adopted the strategy of Foreign Outsourcing to reduce the cost
of production. The main factories are located in Asian countries, especially in
China, and then have their products distributed to all the stores.
In order to have Walt Disney products available worldwide, Disney not
only opened Disney Stores outside of the United States, but also authorized
Licensees to resell their products. This approach is very beneficial for the
company, in view of the low need of investment or no investment sometimes.
As said before, Disney also opened Disney Stores around the world, as
well as amusement parks and resorts. This type of Strategy is called Direct
Investment. This represents a high cost investment for the company; however,
their control over how their business operates is maximized. As of today, Walt
Disney Company has Direct Investment Stores in five different countries and
amusement parks and resorts in United States, France, Tokyo, Hong Kong and an
upcoming one in Shanghai.
According to Disney International website, for the past few years, their
main focus has been establishing the foundations for long-term growth in the
emerging markets of Latin America, Russia, India and China. (Walt Disney
24

International, 2009). This focus has mainly been because of the economic growth
of the country and consequently growth of the purchasing power of the population.
Due to the change in the CEO of the company in 2005, Disney has also renewed
their focus in Europe and in Japan, with the intention of serve their guests better
and incorporate more local values while providing entertainment.
Walt Disneys strongest competitors are News Corporation, Viacom,
NBCUniversal and Time Warner. All of them are in the international market
largely by Licensing. They compete with Disney in all the branches, from
television to amusement park, such as Universal Studios by NBCUniversal in
Hollywood, Orlando and Japan.
The Barriers to International Trade faced by Disney are all kinds. Being
an American company and reflecting American values and ways of life, Disney
had to adapt to the Sociocultural and Economic Differences in each of their host
countries. Also, Political and Legal Differences, especially Laws and Regulations,
were also an obstacle to International Trade.
Sociocultural Differences and Economic Differences are the easiest to
perceive. The Walt Disney Company genuinely reflects American values but, in
order to succeed in other countries, the company had to incorporate local customs,
where appropriate, as well as stories and history of the host place. Economic
Differences are also a barrier for Disneys expansion. It is important to consider
the population, economic growth, per capita income, and stage of economic
development, in order to determine the potential success of the business. The two
newest parks (Hong Kong, opened in 2005, and Shanghai, that will open in about
five years) are both located in China. China is a country that just recently acquired

25

a high rate of economic growth and has been working on increasing the per capita
income, which allows the population to spend more money in entertainment. I
believe that, in the beginning of the Walt Disney Company, opening an
amusement park in China was not a top priority. However, after the rise on Chinas
economy, The Walt Disney Company, like many others, turned their attention to
the Chinese market.
Another barrier for Disneys expansion were Laws and Regulations of
their host countries. Each country has different laws and policies that differs, and
sometimes contradicts, American laws. In order to be in Japan, France or China
territory, The Walt Disney Company has to follow not only American rules, but
also Japanese, French or Chinese rules, following their standards and paying their
taxes. As I see, the Walt Disney Company also deals well with this barrier,
printing, for example, the Disneys Code of Conduct in Chinese, trying to balance
the regulations of both countries.
Barriers for International Trade will always be present, in different degrees
of intensity. In order for a Company to succeed, Strategies for Reaching Global
Market need to be set, taking into account the obstacles of each target.

2.4 Impact on Globalization

2.4.1 Political
Positive Impacts
According to Stephanie Rohac (2006), France government has reduced
18.6% of value-added tax on Euro Disneyland's ticket sales to only 7%. Besides

26

that, 20 years loan of $960 million at low and subsidized interest rates of 7.85%
is provided too. Varieties of investment incentives are offered by the host
governments to encourage foreign investors to invest into their country. The main
issue of France government facing at the time was its unemployment rates
increased by 10%. The opening of Euro Disneyland can actually solve the problem
where it creates more than 30,000 new construction jobs, 12,000 on-site positions
and 30,000 jobs in off-site serving.
2.4.2 Economical
Positive impact
Brand recognition worldwide
The Walt Disney Company markets itself worldwide, creating huge
revenues and further establishing itself as a global brand. As the business
globalized, Disney brand is known by people globally and merchandising has
played an important role in establishing the Disney brand.
Market size
Due to globalization, company increases its market size from domestic to
international market. By investing into various countries of its theme park and
resort business as well as exporting its products to other countries, Disney has
enlarged its market size at the same time. According to James Ketterer (2010), the
very first Disney Store was opened 28th March 1984 in Glendale, California. The
Disney stores are located worldwide, throughout the US, UK, Spain Italy, Japan,
and France. Since May 1st 2008, the Walt Disney Company owns all Disney
stores in America, Canada and Europe, however the stores in Japan are owned by
the Oriental Land Company, for example, Disneyland Tokyo. In the year 2004

27

alone, merchandise has made $2.5 billion for the company, a figure that shows
how globally successful Disney really is.
Financial
Revenues by country of origin:
The US and Canada Walt Disney's largest geographical market, accounted
for 76% of the total revenues in the year 2009. Revenues are generated through
other countries of origin: Europe (17%), Asia Pacific (5%) and Latin America and
other (2%).
Globalization helps Disney to gain its revenues from all over the world
instead of only from its host countries, United States. The total revenue in year
2007 was $35,510 million. The total revenues increased by 6.6% to $37,843
million in 2008. However, the total revenues dropped by 4.5% to $36,149 million
in 2009.
Negative impacts
Global Recession
According to Jason Garcia (2009), during the global recession in year
2009, despite the favourable timing of the busy Easter holiday, Walt Disney Parks
and Resorts suffering from downfall of its operating profit and total revenues by
19% and 9% respectively. Disney's profit and revenues in United States have
declined by 26% and 7% to $954 million and $8.6 billion respectively. Although
Walt Disney World is having the same amount of visitor compared with the
previous year and 10% more guests in Disneyland, Disney does not make any

28

profit as it gives out discounts and special deals to uphold the attendance level of
visitors.
Financial Crisis
According to Wu Jin (2009), during 2009 global financial crisis, Hong
Kong Disneyland left with no choice and plan to raise its entrance ticket prices by
nearly twenty percent. The decision was made after numbers of market surveys
have been conducted where the tourist visits are not affected by prices but seasonal
factors. However, Hong Kong Disney have been threatened and boycotted by
local travel agencies and public dismay, hence, it adjusted its price strategy again.
Global competitions
A company at first have its own competitors in its domestic market,
however, due to globalization, there are more competitors, as it has to face global
competitions with international competitors. Company tends to strive to be better
in order to compete with its competitors.
Walt Disney Company has its own competitors in each and every one of
its business segments locally and internationally. However, its major competitors
are CBS Corporation (CBS), News Corporation (NWS) and Time Warner
Incorporation (TWX).
2.4.3 Social
Positive impacts
Consumer Spending
The table above shows where United States people spent their money. And
it shows that most of their spending is on entertainment: publishing industries,

29

motion

picture

and

sound

recording

industries,

broadcasting

and

telecommunications as well as amusements, gambling and recreation. This is

favourable to Disney as it business focuses on those entertainments.
Negative impacts
Cultural Differences
As every country have different cultural practices, Disney need to add local
attractions to attract local consumers. For example, in Hong Kong Disneyland, a
Mickey Mouse mascot is wearing a bright red Mao suit while Minnie Mouse
mascot is wearing a cherry blossom red dress.
Besides that, employees in the theme parks have to know different
languages in different Disneyland theme parks, in Hong Kong Disney land, they
speak both English and local dialects like Cantonese and Standard Mandarin.
Their brochures and maps are printed in those languages too with additional
Japanese language. And the most special one, they actually included shark's fin
soup in their menu.
2.4.4 Technology
Positive impacts
Nowadays, technology has become a very increasingly important tool to
compete with rival companies and industries. The development of technology like
video editing software, high definition and 3D have a strong impact on film
producer like Walt Disney to helps them in producing the film efficiently.
According to Bloomberg (2010), the latest Walt Disney animation movie which
is named "Alice in the Wonderland" which comes with 3D resolution have hit

30

210.3 million ticket sales in worldwide and 116.3 million in United States. The
improvement of technology brings better sales to Walt Disney.
Negative impacts
Before the existence of internet in year 1955, consumers purchased
entertainment products such as music CDs from entertainment outlets. As
technology advances, entertainment industry has been affected with the existence
of Peer-to-peer (P2P) architecture which implemented worldwide. According to
Sammy Khayat (2004), P2P is the distributed computing network where people
directly shares files or resources from computer with others without going through
central server, for example Napster. Hence, people no longer buy CDs from the
shops anymore. According to the Recording Industry Association of America, the
number of CD's shipped in United States feel 15% from 940 million to 800 million
between year 2000 and 2002 which brought to dropped in sales about $2.5 billion.
Copyright infringement is expanding as people often do file sharing over
internet which allows them to download free music and then send to their friends
which is a great threat to Disney's entertainment business. Other than that, pirated
CDs, DVDs and soft toys give big impacts to Disney as well.
2.4.5 Environment
Negative impacts
Bad weathers like rain and thunderstorm decreases entrance tickets sales
of Disney theme parks as consumers will be taking the consideration under the
hazardous weather. Take Gold Coast theme parks as example, the wet weather at
south-eastern Queensland had affected the revenue of the company to fall.

31

2.4.6 Legal
All Disney's cartoon characters like Mickey Mouse are trademarked, hence
other people cannot use them without authorization. There was a case back in year
1989 where there were three day-care centres in Florida painted Mickey Mouse
and other Disney cartoon characters on their wall and Disney took legal action
against them. The rival, Universal Studios replaced with its cartoon characters
after Disney's were removed. Besides that, technology advancement has led to
pirated products such as soft toys which cannot be controlled by the company as
it goes worldwide in huge numbers.
2.4.7 Potential impacts of Globalization on Walt Disney
Lifestyle influences
Nowadays, people are so stressful to face their problems at workplace,
school and even at home. Tensed lifestyle is favorable to Disney's business which
is concentrate on entertainment sector as people tend to spend their money on
entertainments just to make themselves feel more comfortable and relax. This can
actually lead to increase in Disney's sales and revenues.
Technology advancement
As the technology advances, Disney can cut its labour costs. For example,
in Disney theme parks, people can buy their tickets from ticket machines where
there is no need ticket booths that require workers to sell the entrance tickets.
Operators are no longer requires if the theme park is fully computerized, where
the roller coasters, marry-go-round, etc, will automatically run when consumers
are ready to go.

32

Besides that, future technology can makes Disney films more interesting,
maybe it will be in 4D or 5D where people can experience new things and they
are willing to spend their money for new kind of entertainment. Disney can also
be innovative in their theme parks and come out with new kind of games, gadgets
and amusement rides to attract more consumers. In this way, Disney can generate
more revenue due to its new technology.

2.5 Marketing Plan of The Walt Disney Company

Organizational Chart of Walt Disneys Marketing Staff

The Walt Disney Company recognizes the importance and makes good use
of marketing. The structure used is a line-and-staff organizational style. As early
as the management team, in the Corporate unit, right below the President and CEO
(currently Robert Iger), Disney has the position of Executive Vice President and
Chief Financial Office. Taken today by Jay Rasulo, this position, although it is not

33

focused only in marketing, has it as a one of the pillars necessary to achieve the
companys success. Soon after this corporate unit position, the managers of each
branch of Disney are in charge of marketing actions. As seen in the organizational
chart, there are five different branches.
The first, Walt Disney Studios and Entertainment, has a Chairman
position, currently occupied by Rich Ross, who is responsible for marketing and
film distribution. Below his position, the employees of this sector implement the
marketing strategies.
The second, Walt Disney Parks and Resorts, has a Executive Vice
President, Global Marketing position, occupied by Leslie Ferraro. This distinctive
position makes clear the importance of marketing for this area. Also, the
management of each of Disneys Parks and Resorts have marketing employees,
who are subordinated to the President or CEO of each specific unit.
The third, Disney Media Networks and Television, has Amy Sweeney and
John Skipper occupying Co-Chairman positions and dividing Disney and ABC
television with Sweeney, and ESPN with Skipper. Each of them has delimited
structures for marketing, as we can see through Executive Vice President, Sales
and Marketing position of ESPN, taken today by Sean Bratches.
The fourth, Disney Interactive Media, has James Pitaro and John Pleasants
as Co-Presidents. They share responsibilities about the online, social web and
media gateway of Disney. Thus, marketing is one of these responsibilities, having
also marketing employees for this sector.
The fifth, Disney Consumer Products, has as responsible for the content
distribution strategy, hence for marketing the products, the President of this
34

branch, currently Bob Chapek. The area also has employees that implement the
marketing strategies.
2.5.1 Marketing Strategy
The Walt Disney Company current situation on marketing takes into
consideration the following characteristics: sell more to existing customers,
expand their market place, continuous promotion, tracking business, and always
improve or add to existing products. Disney is continuously offering goods and
services for existing customers through their website, parks and resorts, television
and cruise lines. Through these goods and services, Disney tries to capture the
most as they can by expanding to strategic points in the world such as parks in
China, Japan and Paris -, and also by developing structures that fit different
cultures, in order to make people from different backgrounds feel comfortable
with the products offered. Continuously advertising is also an enhanced marketing
strategy of Disney the company never stops advertising, through the most
various means -, making people keep the company in mind at all times. A really
important fact about the companys marketing is that they know their seasons very
well, and adapt marketing to it; always heavily investing in slow times, in order
to have profit all year round. Moreover, Disney never stops; it embraces the
change by always modifying, expanding, and creating new ways of brings the
magic to customers, making their experience never be the same, and making them
want to experience it again.
Competitors of Disney are News Corporation, Viacom, NBC Universal
and Times Warner. They compete with Disney in all the five branches. However,
Disney uses marketing more focused in the family, which calls for the parents, the

35

ones that often has the power of purchase decision; while the others call customers
individually. Hence, Disney has a marketing advantage while appealing for not
only children but also for the parents. But, as kids grow, establish their tastes, and
have their decisions taken into consideration by the parents while purchasing,
Disney might lose market for being associated to younger children and family;
while its competitors gain advantage for that reason.
Constantly making parents aware and comfortable with Disney goods and
services, as well as their way of advertising, in order to reach the ones that have
the purchasing power, is the marketing objective of The Walt Disney Company.
Disneys Marketing Strategy is:

Product Strategy: Disney products involve far more the tangible good or
the service; it offers the well-known high quality and the worldwide
known brand that the company has for years. Disney also customizes all
their products with specific characteristics of the company, which
demarcates and differentiates their products from others.

Pricing Strategy: Disneys prices are not low. Although, when compared
to other goods and services, taking into consideration the quality of
products that Disney provides, the price is fair.

Place/Distribution Strategy: Disney has its products distributed all over the
world, seeking expansion of the market. The key found by Disney is to
position their main attractions (parks and resorts) in places with a high flux
of people, so more people can be familiar with the brand. It is possible to
observe this by looking to the places of the Disneys amusement parks

36

today: California and Florida (America), Paris (Europe), and Hong Kong
and Tokyo (Asia).

Promotion Strategy: Disney succeeds in this area, especially in low peaks

of the year. Promotion, such as low priced rooms, free or reduced tickets
and items are highly utilized strategies of Disney.
Disney has been recently implementing its ideas through various channels.

Not only television, but Internet as well, has been the main means of advertising.
Disney is taking actions to digitalize their content and to offer online interaction
that develops customer loyalty, as children have more access to the network with
the new technology. Investing in technology, Disney reach a broader market at a
lower cost people from all over the world can access Disneys website, play their
games, watch their movies, shop their products, and their parents can directly book
vacations.
As of 2011, Disney occupied the seventh position in the Ad Age's 100
Leading National Advertisers report, with a budget of more than US$2 billion for
advertising.
Measurements are taken and felt by The Walt Disney Company by
regionally sales of tickets, goods and services, website access, and also by surveys
done yearly about consumer awareness of the brand. These measures help Disney
to analyze which marketing strategy is working the best and which is not.

37

2.6 Financial Performance of The Walt Disney Company

2.6.1 Revenue

Aggregate revenue recognized during the period (derived from goods sold,
services rendered, insurance premiums, or other activities that constitute an
entity's earning process). For financial services companies, also includes
investment and interest income, and sales and trading gains. Walt Disney Co.'s
consolidated revenues increased from 2013 to 2014 and from 2014 to 2015.

38

2.6.2 Net Profit Margin

In short, The Walt Disney achieves raise in its Net Profit Margin starting
from 2009 to 2015.

39

2.6.3 Net Profit Margin in Comparison to Competitors

As compared to competitors, The Walt Disney may not be the best in its
industry but its Net Profit Margin is favorable as it increases since 2009 till 2015.

2.7 Recession
Due to the recession in 2008, The Walt Disney Company resulted in a huge
profit plunge.
Walt Disney Co. dis said its second-quarter (2008) net income fell 46%, with
sharply lower profits at its movie studio and theme parks. But its results narrowly
beat Wall Street forecasts and shares rose.
The family entertainment giant's profit in the quarter through March 28 was
$613 million, or 33 cents a share. That was down from $1.13 billion, or 58 cents a
share, a year earlier.

40

Revenue fell 7% to $8.09 billion. Excluding restructuring charges and other

items, the earnings fell to 43 cents a share, just above analyst expectations for 40
cents a share, according to Thomson Reuters. Analysts expected slightly higher
revenue, $8.15 billion. "Our second-quarter performance reflected the weak global
economy, as well as disappointing results at our movie studio," Chief Executive Bob
Iger told analysts on a conference call.
Disney shares closed at $23.15, up 1.3%, before the earnings report, and rose
another 99 cents, or 4.3%, to $24.14 in after-hours trading.
Disney booked about $305 million in charges, including $102 million in restructuring
costs, about half of which came from cutting about 1,900 positions at its parks
division.
Studio operating profits fell 97% to $13 million as theatrical releases such as
Bedtime Stories and Race to Witch Mountain did not fare as well as movies that came
out in the same period a year ago, such as National Treasure 2: Book of Secrets, and
Hannah Montana/Miley Cyrus: Best of Both Worlds.
Revenue at the studio fell 21% to $1.44 billion.
Disney said the recession led visitors to spend less money in its theme parks,
though U.S. attendance was even with last year because of heavy discounting. Parks
and resorts operating profits fell 50% to $171 million, while revenue dipped 12% to
$2.41 billion.
Cable network profit from ESPN, ABC Family and the Disney Channel grew
5% to $1.14 billion as higher fees from cable and satellite affiliates rose despite a

41

decline in ad revenue.
Broadcast profit at the ABC television network and its ABC stations fell 38%
to $162 million amid the advertising downturn.
Taken together, cable and broadcast revenue rose 2% to $3.62 billion.
Consumer products revenue grew 9% to $496 million, but operating profit fell 24%
to $97 million. The revenue boost, which came from taking back ownership of Disney
Stores in North America, also led to lower merchandise licensing royalties.
Interactive Media revenue for the quarter fell 17% to $129 million. The
operating loss was unchanged at $61 million.
2.7.1 How does The Walt Disney Company deal with recession?
Disney announced last week it would take an equity stake in the company,
joining NBC Universal and News Corp. The agreement will put ABC television
shows and older Disney films on the site, the AP reports.
The Walt Disney Company suffered the effects of the recession, particularly
at its parks division and its local TV affiliates.
DVD sales took a hit from the pullback in consumer spending while the movie
division struggled with a weak quarter and tough comparisons with last year.
Including restructuring charges and one-time items earnings per share came in at 33
percent, less than analysts expected. But when those restructuring and impairment
charges are stripped out, EPS fell 26 percent to 43 cents, three cents higher than the
Wall Street's consensus expectation.
CEO Bob Iger and CFO Tom Staggs wouldn't go too far to reassure investors

42

with predictions about an economic recovery. But Iger did say that the company is
"seeing some signs the downturn has stabilized" and that in terms of the advertising
market, there are indicators that the pace of decline is stabilizing. Iger and team are
optimistic about how the company is positioned when the economy does recover.
And when it comes to sector challenges, like the shift of consumers to the web,
Disney is tackling that issue as well. Iger says the company is organizing itself so it
can be positioned to profit as people consume more content online.
The parks division has been working to mitigate the effects of the economic
downturn with major promotions, which has helped keep attendance fairly steady.
But while people clearly want to visit Disneyland and Disneyworld, they're spending
much less for the experience. Revenues in this division were down 12 percent while
operating income was down 50 percent, CNBC reports.
As expected, Disney's new distribution deal through Hulu was center stage.
Iger says digital distribution of free, ad-supported content doesn't cannibalize TV
revenues, that it's a younger, different audience.
The company is taking different strategies for each of its TV networks,
focusing on building portals around the Disney and ESPN brands, while ABC and
ABC family content will live more outside their own sites. From Disney's
perspective, people will pirate content online if they can't find it easily and legally on
sites like Hulu and ABC.com, so why not make it available and make some money
off it.

43

2.8 Strategy
China is having a population of 1.26 billion people which is equivalent to
20 percent of the world's total population. With the humongous population and
established relationship with Chinese Government, it's foreseen by the Walt
Disney Company that there is high demand for entertainment and the fourth
Disney theme park, Hong Kong Disneyland can generates revenue by entering the
country. Besides that, the labour cost in China is two third lower than Disney's
other theme parks where lower costs generate higher profit. Disney can actually
expand more of its businesses into China as it is having very huge and potential
market. With one child policy in China, the grandparents as well as parents are
pampering their child and they are willing to spend money on entertainment that
their child wanted like theme parks and movies. The adults who are facing
problems simply need entertainments just to relax themselves.
The demand for entertainment is very high in China, however, due to their
lower incomes, they may not afford to pay for it. Disney should have brought
down its selling prices and hence generates more sales. Besides that, Disney has
to understand their cultural practices and try to adapt local custom by doing more
market researchers, interview and questionnaires, so that the company can roughly
have an idea on what the local people prefer.
There are a lot advantages for China if Disney to expand its businesses at
China where the business can helps to raise its technology level, provide job
opportunities for its people and increase its economic growth. In my opinion, the
barrier for Disney to enter China should not be a problem. If Disney further

44

expands its business in China, it can help to reduce China unemployment like how
it helps France's.
The Walt Disney Company is having a strong brand name and reputation
in this world, it should keep it up and achieve its mission all the time which is to
make everyone happy. I believe that Disney will never fail in its business and
always stay at the top level.

2.9 Future Directions of The Walt Disney Company

Through its various uniform strategies, policies, and practices, the Walt
Disney Company can be considered a classic success story. As a chief
international conglomerate, it has managed to impose its whole gamut of
spectacle, theming, hybrid consumption, and emotional labour in all its theme
parks across the globe. The idea of Disneyfication of culture is based on the belief
that there are changes in modern societies which the Walt Disney Company
epitomizes. Let us take the example of Disneys image as a cathedral of
consumption (Ritzer, 1999, 2007). While attending Disneys theme parks, people
worldwide can consume commoditized goods and services, shop, eat in Disneys
restaurants, etc. By creating a gigantic spectacle, Disneys objective is to make
people enjoy the show, stay longer, and remember such a wonderful experience
as something that can be revisited again. What this article has also demonstrated
is that the theoretical framework of globalization offers a valuable understanding
of the Disneyfication of culture. Unlike globalization, which aims at making
significant adjustments to the local culture in which an MNC is operating (Kraidy,

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2001), the tenets of globalization assume that the result of Disneyfication and its
imperialistic goals, desires, and needs is that cultures worldwide are growing
increasingly similar. In the end, this similarity tends to make differences blurry
both within and between local cultures (Andrews & Ritzer, 2007). Disneys
infiltration of local cultures on three different continents constitutes a direction of
change which eventually will lead to global cultural standardisation (Quelch &
Jocz, 2008). As we have seen, the Chinese government has already invested
hundreds of millions of dollars with the company to provide Disneyfied
entertainment to both Chinese and Hong Kong consumers. From this vantage
point, globalization is a method of cultural and economic imperialism which is
deeply involved in the reproduction of capitalist culture worldwide (Ritzer, 2007).
For future research, it might prove interesting to find out whether or not
globalization will grow to such a magnitude that Planet Earth will become, in and
of itself, Planet Disney Disney, of course, would have to be embraced as a
cathedral of mass culture. Since Disneyfication is paving its way to enjoying the
full blossoming of globalization, does Disneyfied world culture indicate that we
are moving into a universe in which there is no strong alternative to globalization?
In a similar vein, while Disneyland Paris had to make adjustments to local
European culture, what measures have the other Disney theme parks taken to
please local populations? It is the authors hope that this article has enlightened
readers on the globalization of Disneyfied world culture. Certainly, globalization
continues to be a critical model for scholars in the fields of globalization, culture,
sociology, economics, and international communication not only because of its

46

efforts to portray ground-breaking visions of the worlds future, but also because
MNCs like Disney will continue to use and abuse it.

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4.0 Vivendi
Formerly known as Vivendi Universal (while in partnership with Universal
Studios), Vivendi S.A. is a French Multinational Mass Media Company. Its
headquarters are located in Paris, France. The companys division includes activities
in the music, television, film, video games, telecommunications, tickets and video
hosting services,

4.1 Historical Background of Vivendi

In 1852, Compagnie Gnrale des Eaux was founded during the time of
Napoleon III and is said to be Frances first capitalist ventures. The Rothschild
family, a Fould, a Lafitte, the Duc de Morny and a large proportion of imperial
nobility are the founders of this company. The largest share subscriptions belonged to
James de Rothschild with a subscription to 5,000 shares. The initial capital was 20
million France Francs which was raised through a whopping 80,000 shares.
During the mid to late 1990s, Gnrale des Eaux underwent a series of
strategic changes which turned the company into one of the biggest entertainment and
environmental concern. In 1996, Jean-Marie Messier took over the company. The 39
year old executively quickly restructured the core of the whole business with a focus
on the environmental and communication related business. An article in 1996,
mentioned that the company was spinning out of control following reckless
investments, mainly in property, and other disappointing performances.
As part of Messiers strategic plans, he implemented a strategy in such a way
that the company will focus on gaining world leadership with regard to the
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environmental services industry, and the media and entertainment industry. In 1996
itself, plans were made to start a new subsidiary called Groupe Cegetel, in which it
covers fixed and mobile phone businesses in France. Efforts to reach their goal took
them along a path in which they merged with Havas. They also purchased Cendant
Software Corp., an electronic publishing firm. In 1998 the firm took on a new name,
Vivendi, in which suggests life and vitality.
In the 2000s, Vivendi took on a deal which added Universal Music Group and
Universal Studios to Vivendi's holdings, giving it control of the world's largest music
company. They also bought the remaining shares of CANAL+, which name was then
changed to Vivendi Universal. The merger of America Online Inc. and Time Warner
was one such purchase that signaled the industry's changing landscape.
The transformation of Gnrale des Eaux Group of the 1800s into one of the
biggest entertainment conglomerate was indeed the work of Messier in just a mere
seven years. With a net income of $2.1 billion in 2000 and sales nearing $50 billion in
the following year, the companys large number of acquisitions had left the company
with a 50% debt to equity ratio which was considerably high if compared to the other
companies in the industry. However, the management was firm that they were on the
right track to secure future growths. Messier himself, was assured that Vivendi
Universal would become the worlds preferred creator and provider of entertainment
contents.

4.2 Vivendi businesses

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Vivendi focuses mainly on digital media and entertainment. It owns the

French TV channel and the movie producing company Canal+ Group. Vivendi also
owns Universal Music Group, which is one worlds leader in the music industry.
Vivendi also used to own Activision Blizzard up till 2013, where their shareholding
dropped from 63% down to 11.8% due to the purchasing of shares by Activision
Blizzard themselves. In 2014, Vivendi sold SFR, a French telecommunications
company to the Brazilian company, Telefnica Vivo. In 2013, Vivendi sold its shares
in Maroc Telecom to Etisalat.
Vincent Bollor, Vivendis current president, appointed in June 2014 wanted
to continue its focus in the media and entertainment industry. The subsidiaries are
now focused on Canal + Group, Universal Music Group, Vivendi Village, and
Dailymotion.

4.2.1 Television
The television business largely refers to Vivendis Canal+ Group. Canal+ Group is
one of the largest media and entertainment groups in France. It does not only air
unique content, but they themselves are a leading producer of premium and special
interest channels as well as a leader in distribution of pay-TV packages. I total about
25% of household subscribes to Canal+ Group offers. In terms of free to air contents,
Canal+ Group represents a major player in the country, with three national channels.
Outside the bouandaries of France, Canal+ have plans to develop new markets in fast
growing countries. It is the leading pay-TV operator in French speaking countries,
such as Africa. With Studiocanal, Canal+ Group is also one of the leading producers
in Europe and distributor of feature films and TV series.
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4.2.2 Digital
Almost all of Vivendis developments take place in the digital arena. With a
position such as Vivendi, they are capable of fully seizing opportunities. Digital is
also driving new trends in how people would normally consume their music,
audiovisual content, thus opening up more opportunities for synergies and projects
among the three Vivendi business units, mainly Canal+ Group, Universal Music
Group and vivendi Village.
The demand of consumers in this era are never ending, which leads to more
innovative ways to attract potential consumers. Consumers today have a user friendly
interface in which they have easy and personalize access to cultural products, whether
it is in their homes, when they are travelling, on multiple screens, on demand or by
subscription. This is the benefits which is brought to the people with the pervasive use
of internet and the increase of products which are connected.
This bring about innovations in vivendi to seize the opportunity that arises
from the new consumption and distribution models. The group is already investing in
streaming services, SVoD and electronic ticket sales. Streaming services is brought to
their consumers with Dailymotion. Vivendi owns 90% of Dailymotion, with
acquisition of such a company, vivendi benefits from an over the top distribution
platform of international structure, in which it is capable of generating revenue from
its contents. The acquisition of Dailymotion synergizes well with their other business
activities, where we can see the joint development of Universal Music group and
Canal+ Group teams. To meet the expectations of digital consumers, such a synergy

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allows Vivendi to produce unique content and formats which fulfill the trends of the
current market.

4.2.3 Cinema
Movies are the core of Vivendis business. Since its creation, Vivendi and
Canal+ Group has carry out its activities through the channels it produces and
broadcasts, with the help of their very own Studiocanal. The Canal+ Group has
always offered a privileged place to movies. with over 500 different movies in a
single year, the Canal+ channels can cover live major annual events such as Cannes
Film Festival, the French Csar awards and the Oscars.
Studiocanal is one of the leading European players in the movie industry. With
its production, acquisition and distribution of movies and TV series. With over 5,000
tittles, Studiocanal boasts one of the largest film catalogs in the world. It operates
directly in the European market mainly in France, United Kingdom, and Germany as
well as Australia and New Zealand.

4.2.4 Universal Music Group

The music label discovers and develop artists. The best sellers did not only can
from confirmed international artists such as Katy Perry, Maroon 5, and Taylor Swift
but from new talents as well. This include Sam Smith, Ariana Grande, Lorde and
numerous number of artists internationally known. Universal Music Group is also the
largest church music publishers.

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4.2.5 Vivendi Village

Vivendi Ticketing comprises of two of Vivendis ticketing services which are
controlled by See tickets in the UK and the US, as well as Digitick Group in France.
Both See Tickets and Digitick specializes in the retail and distribution of tickets for
live entertainments and other events of such, such as sports and cultural events. It also
provides an operating platform for venues to run their own ticketing services.

Digitick
Digitick Group is the French leader in soft ticketing or dematerialized
ticketing for certain events. Digitick also specializes in providing comprehensive
ticketing solutions. In which they would provide a platform for venues to conduct
their own ticketing services. The services provided includes ticket management, sales
and access control, for the particular event.
Currently, Digitick Group is the only French player which integrates all three
of its business segments ticketing to the public through its website. The design and
provision of full web ticketing solutions for all sorts of events and the legal ticket
resale between individuals.

See Tickets
See Tickets are one of the market leaders with the UK market. They also sell
tickets across multiple ticketing segments from musicals, cultural to sports. All of the
services are primarily done over the internet and mobile services. See Tickets also
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provide a ticketing solution to their clients. Some of their notable clients are
Glastonbury Festival and The Ryder Cup.

MyBestPro
MyBestPro aims to create a professional peer to peer tutor such environment.
In order to do this, the company relies on 30 000 professionals. Not only does the
company rely on the professionals, but the 500,000 pieces of feedback from the
audiences of the 5 million users. To be referenced on one of the companys sites, the
professionals will have to adhere to certain regulations such as the transparency
regarding their fees, daily availability and to be evaluated by each and every of their
clients.

Watchever
Watchever, the first subscription video on demand (SVOD) service in Europe.
In Germany it was launched in 2013 where it provides unlimited access to a wide
variety of movies, TV series and a myriad of other media and entertainment content.
In order to meet market demands, they had to fully repackage their offer structures
around branded channels covering a diversity of genres. This action had significantly
increased the value of the contents available to the subscribers.

L'Olympia
Located in central Paris, The Olympia is one of the worlds famous concert
halls and live music venues. Many of the leading French artists and internationally
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renowned artist would regularly perform at the Olympia, which also acts as a
Launchpad to kick start new and breaking acts.

4.3 Globalization of Vivendi

Globalization is often referred to the changes happening around the world as
we move away from our self-contained countries and towards a more integrated
world. Globalization in terms of business slightly differ from the original meaning, in
which globalization means a change in business from a company associated with a
single country to one that operates in multiple countries,
Vivendis headquarter is located in Paris, France to be exact. In 2015, Vivendi
Group reported net revenues of 10.76 billion. Vivendi is used to focus mainly on
French Speaking Countries. However, with the recent globalization, we can see that
Vivendi has been expanding to other parts of Europe, US, Australia, New Zealand,
etc. Vivendi is capable of doing this with its diverse portfolio of companies in the
media and entertainment industry.
4.3.1 Vivendis Future Acquisition Plans
Gameloft
Vivendi has increased its stake in Gameloft SE up to 26.7% as of 2015. In
case a collaboration could not be met, Vivendi expressed their intention to take over
the mobile game developer. Vivendi boosted their holding to 22.7 million Gameloft
Shares, representing $121 million in investments.

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This signifies that Vivendi is interested to return back into the gaming industry
with such an acquisition even after letting go of Activision Blizzard. Another
acquisition or collaboration efforts can be seen with Ubisoft as well.
Ubisoft
Recently on 30 Aril 2016, Vivendi has expressed their intent in Ubisoft by
acquiring more shares in the company, raising its shareholding to 17.7%. The
president Vincent Bollor further explained that they intend to continue buying more.
Vivendi also continues to seek for cooperations with Ubisoft, the creators of Assasins
Creed and the divisions.
Telecom Italia
As of 10 March 2016, Vivendi has increased its stake in Telecom Italia to
24.9%. This is just below the 25% threshold where Vivendi would be forced to launch
a takeover bid. This is following the filing with the US market authorities. Previously,
Vivendi had 23.8% in the Italian phone group. However, the stake holding of Vivendi
had tripled in less than a year stamps their authority on Telecom Italia.

4.4 Global Brand Vivendi

Vivendi is globally renowned with their outstanding corporate performance.
Every year, Vivendi is recognized for its excellence in business and also corporate
responsibilities.
The recognitions received by Vivendi are:
2016 No.91 on Global 100 Most Sustainable Corporations
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2015 No.35 on Global 100 Most Sustainable Corporations

2015 No.57 on Green Ranking Global 100
2014 No.40 on Global 100 Most Sustainable Corporations
2014 No.57 Global Top 100 Brand Corporations
2014 No. 1 on Green Ranking Global 100
From the list of achievements, we can see that their ranking has been dropping
in certain areas. However, this may be due to the selling off of certain subsidiaries.
For example, Universal Studios and Activision Blizzard.

4.5 Internal Environment Analysis of Vivendi

4.5.1 Innovative Positioning
Vivendi, a key player in the media sector, differentiates themselves through
their approach and contribution in terms of sustainable development. These
developments are to meet the needs of the present and future generations of
consumers. In order to do so, Vivendi has to foster the development of their talents by
increasing their company image trough the nurturing of their curiosity, and
encouragement for intercultural dialog and learning to live together.
Keeping such levels of awareness regarding the human and cultural influences
exerted by the group is defined by Vivendi through its CSR strategic core issues
relating to human rights

Promoting Cultural Diversity to enable the fostering of artistic and

creative processes.
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Encouragement of the young generation to use digital media through

empowerment and protection

Encourage knowledge transfer through the pluralism of content, media

accessibility and literacy

reconciling the valuation and protection of personal data to take

advantage of the great potential of digital technology, while respecting
the privacy of their consumers.

4.5.2 Compliance Program (Quality Control)

Vivendi has implemented a Compliance Program in the year of 2002. This
compliance program sets out the general ethics rule which are applicable to each and
every employee, which has been a guideline for the group up till now.
The guidelines include the rights of each and every employee, information
quality and its protection of conflicts of interest and other guidelines in relation to
their code of ethics. This is to ensure the awareness of the employees regarding their
professional responsibilities.
These general rules are applied in each operational business unit and are
adapted to both local legislation and business activities as required. As a result,
certain entities have implemented an additional code of conduct.
The implementation of the Compliance Program is followed by the legal
teams and the compliance officers of the main operational entities and headquarters.

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4.5.3 financials
In order to evaluate the financial performance of Vivendi, we will be looking
at a certain group of financial ratios. We will be looking form the aspect of the
companys financial profitability and in terms of liquidity. The reason of doing so is
to determine whether Vivendi is in a healthy state.
Firstly, we will be looking at its gross margin followed by its net profit
margin. From 2012 2015, the gross margin has dropped from 50.5% down to
39.1%. Even so, it still indicates that Vivendi is still in a healthy condition. As for the
net profits, Vivendi had a growth from 2013 2015, where the net profits margin had
risen from -6.5% to 11.02%. This clearly shows that Vivendi is in a healthy condition
and all assumptions should not be made based on the gross margin alone.
In terms of liquidity, the current ratio examines the ability of a company and
its ability to pay off short-term liabilities with its short-term assets. The current ratio
has risen from 0.69 to 2.25 in the year of 2012 to 2014. However, it dropped back
down to 1.51 in the year of 2015. As for their debt to equity ratio, is has been ever
dropping since 2012, which recorded 0.69 down to 0.07 in the year of 2015.
Strength

Strong and stable financial capacity

Based on the ratios above, Vivendi does not seem to be struggling from any
significant or not any financial issues. This is a good sign for it for it to expand
its business, as what we can see with their recent steps towards Ubisoft,
Gameloft, and Telecom Italia.

Weakness

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Low debt ratios

This might be a sign that Vivendis growth is slowing down. Vivendi might
want to look into this issue to ensure that the growth plan in place is pointing
in the right direction to avoid strategic drift.

4.5.4 Marketing
In order to stay ahead of the game, Vivendi needs to cater to the needs of its
current and potential consumers. As we know it, the world of entertainment is ever
changing, nothing has remained the same since the television was first invented. In
order to do this, Vivendi will require comprehensive marketing strategies to promote
and position themselves in the minds of their potential and current consumers. From
their current marketing strategies, we can see that they have successfully penetrated
markets such as the UK and US rather than the likes of only French speaking
countries.
One commendable strategy would be that Vivendi focuses on their consumers
more than the technology that comes with it. This is because the nature of their
business which is heavily dependent on the consumers and not machines. This is a
service industry and not a manufacturing industry, and we can see that so far Vivendi
has been successful in fulfilling the needs of the current market. However, Vivendi
should also take a look at the new and upcoming markets such as e-sports.
Besides focusing on what the consumers want, Vivendi also creates unique
content for their consumers. For example, we can look at the music content which
they provide, it ranges from the likes of the digital songs of Stromae, country genre of
Taylor Swift and the pop songs of Katy Perry. From here we can see how they have
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been able to diversify the types of music provided to their consumers to target a larger
market.
Previously, when Vivendi started Canal+, it only aired French content, but this
all changed as it expanded its market. Some of its largest hits would be Desperate
Housewives and Vampire Diaries. Vivendi has come to accept the likes of piracy is a
problem that might have no light at the end of the tunnel. Instead of looking at it as a
large issue, Vivendi looks at it as free publicity, where they play a part in creating
hype for the newest contents about to be released.

Strength

Diversity
We can see that Vivendi has a very diverse strategy. Not only does it focus on
screened media, but also audio content. Instead of French, they have now
targeted English speaking consumers as well. What more can we ask for
diversity if Vivendi is not already doing it.

Weakness

High Costs
In order to sign new artists or air unique content, it costs large operating costs.
It also faces constant pressure from the stakeholders, especially to meet the
demands of their consumers.

4.6 Impacts of Current Global Economic Uncertainty on Vivendi

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As every other company would, out in an ever changing environment, Vivendi

is currently exposed to the likes of a weakening domestic and global economic
conditions. This uncertainty brings about an increase in terms of volatility in the
macro economic environment together with financial market disruptions which is
happening all over the world.
Countries such as Japan has already implemented negative interests. This is
caused by such a low level of consumer spending that the government had to lower
down the interest rates to a negative level to encourage the public to spend. Only
through the publics spending can the country return to its normal state. In regards to
Vivendi, we can see that consumers may reduce their consumptions on certain areas
such as their Pay-TV services.
However, an economic slowdown may also bring convenience to Vivendi.
This is portrayed through their actions of trying to acquire companies such as Ubisoft,
Gameloft, and Telecom Italia. Vivendi has taken this opportunity to increase their
stake holdings in the companies mentioned above. Through their actions, we can
already see their intentions of penetrating new markets and thus acquiring those
companies.

4.7 Action Plans of Vivendi in Dealing with Economic Downturn

Instead of looking at this as a problem and trying to solve it, we can see that
Vivendi deals with this issue by looking at it as an opportunity. As discussed before,
Vivendi has been increasing its stake holdings in certain companies recently. This
may be due to the intentions of acquiring those companies. The companies include
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Ubisoft and Gameloft from the gaming industry, and Telecom Italia a
telecommunications company.
Vivendi may also start looking into new markets such as e-sports. From a
major Dota 2 competition alone, The Internationals 2015 has seen a revenue of
$258 million generated. This is the revenue made by Valve alone and not the other
parties who took advantage of the competition. With the upcoming The
Internationals 2016 even greater amounts of revenue is expected to be generated.
Vivendi may take this chance ride the wave in this time of economic downturn. This
is not taking into consideration the other games which are included under the term of
e-sport.
As of 2009, the game producing company Acitivision Blizzard was one of
the subsidiaries of Vivendi. It had delivered outstanding results, being the largest
video games company. With the help of their current businesses, Vivendi was able to
boost its groups performance by 10%. Considering that the economy was in a
recession at that time, Vivendi had done a great job in boosting their performance.
This might be one of the reasons Vivendi plans to acquire a game producing
company.
In 2009 as well, Universal Music only dropped 2%, which is significantly
better than the industry average. The strategy of signing new artists might have
proofed useful when their performance proofed to be better than the industry. During
that time, Lady Gagas debut album was their best seller.

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5.0 Time Warner

Time Warner Inc. is an American Multinational media and entertainment
conglomerate headquartered in the Time Warner Center in New York City. It is a global
leader in media and entertainment with businesses in television network and film and
TV entertainment. It is the world third largest television network and filmed TV and
Entertainment Company in term of revenue. It uses its industry-leading operating scale
and brand to create, package and deliver high quality content worldwide on a multiplatform basis.

5.1 History Background of Time Warner

Britton Hadden and Henry Luce created Time Magazine in 1923. It became
Americas very first weekly news magazine. On 23rd of March 1923, Time Magazine
published its first issue featuring Joseph G. Cannon, former Speaker of the US House
of Representatives.
Fortune made its launch just months after the 1929 Wall Street Crash. Therefore,
Hadden and Luce were not very optimistic about the future of the magazine.
FORTUNEs success came as a surprise to Time Inc. Even though the price was a
whopping $1 for an issue, about 30,000 people had subscribed to Fortune before it
launched on newsstand. It became one of the first to incorporate political, business and
social issues into one magazine. This specific 1930s issue is worth $120 plus today.
In the 20th century, Life magazine was a weekly publication of humorous pieces
and cartoons in relation and founder of Time Inc., purchased the name and relaunched
Life on the 23rd day. Life magazine became a photography- based periodical. In its first

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year of publication, Life was successful in becoming one of the most influential of all
time.
In 1954 Sports Illustrated became the first successful sports magazine. Twice
before, publications by the same name was launched and quickly failed, therefore, there
were not any nationally recognized sports magazine. Luce decided to challenge that and
relaunched the name Sport Illustrated. Today, it is one of the most popular magazine
subscribed to. Its success was also undermined in the beginning for during that time,
sports was not considered serious journalism.
In 1972, Time Inc. extends to TV with launch of Home Box Office (HBO). In
its early stages, HBO used microwave in order to broadcast before making came just in
time to feature this historic boxing match between Muhammad Ali and Joe Frazier.
HDO quickly gained success and momentum due to its cutting edge programming and
simple presentation.
Time Inc. becomes Time Warner in 1989. Time Inc. and Warner Co. merged
and began work on consolidating projects and strings of media. Now owning 100% off
the company, Time Inc. thus became Time Warner. The merge of the two companies
would ensure that the US world have a better chance at competing with European and
Asian companies.
During 1st of February in 1999, Time Warner and AT&T proposed a plan to
offer telephone services through cable channels. Using Time Warners infrastructure,
AT&T would be able to offer this deal to over 33 states and put them in the run against
the local phone market. At that time, Time Warners massive network reached about
20 million homes with at least 12 million people currently subscribed to its TV services.
When Time Warner and internet company AOL announced their $160 billion
merger plans in 2000, it became the largest merger in corporate history. The deal was

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intended to bring AOL customers faster internet services through the use of Time
Warners cable systems. Meanwhile, Time Warner would receive platforms for their
different media properties such as Time magazine and Fortune magazine.
In 2007, legal controversy happened when Time Asia was sued by Indonesian
President Suharto for damages due to an article published in a US- based Time
magazine uncovering that he had stolen money from abroad. Although the Indonesian
Supreme Court ruled in favour of President Suharto and ordered Time to pay him more
than $27 billion, the high court reserved the judgement.
Time Warner Cable Arena got its name from a naming right deal between Time
Warner and the NBA team Charlotte Bobcats. Time Warner was also the largest cable
provider in North Carolina at the time. After the deal was announced in 2008, the
changes were effective immediately right before the 2008 NBA game against the
Minnesota Timberwolves.
However, Time Warner faced layoff pressure in 2013. More than 1000
employees were eliminated by Time since 2008. Its CEO Laura Lang announced that
the company was expected to lay off hundreds of employees due to reprieves present
since 2009.
In 2013, Time Warner Inc.s brands are broad included style and entertainment,
lifestyle, news, business and sports as well as international brand like Time and Fortune.
Statistics show that one out of every two Americans read a Time Warner Inc. magazine
and more than one out of five who are online visits one of Times many brands. Even
though Time is struggling to get off the newsstands, the company continues to influence
the world of media.
In June 2014, Time Warner spun off their publishing services, became a
company solely focused on creating and distributing the best video content across

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television, film, and new platforms. In mid-October, they announced their intention to
introduce a stand-alone, broadband- delivered version of HBO.
5.1.1 Vision and Mission Statement
Time Warner does not has a specific vision and mission statement but it does
emphasis on the values that delivered to the employees and customers of the corporation.
The core values in Time Warner such as customer focus, creativity, responsibility,
agility, teamwork, integrity and so on.
Time Warner values their customers putting their needs and interests at the
centre of everything they do. They move quickly embracing change and seizing new
opportunities.
Besides, they are creative where they thrive on innovation and originality
encouraging risk- taking and divergent voices. They treat one another with respect and
creating value by working together within and across their business. They are
responsible in working to improve their communities taking pride in serving the public
interest as well as the interests of their shareholders.
Time Warner rigorously uphold editorial independence and artistic expression
earning the trust of our readers, viewers, listeners, members and subscribers. Lastly,
they focus on diversity. For instance, they attract and develop the worlds best talent
seeking to include the broadest range of people and perspectives.

5.2 Time Warners Business

Time Warners businesses are at top of their industries. They manage to
maintain unrivalled reputations for creativity and excellence as they keep people
informed, entertained and connected. There are few main divisions on its business units.
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5.2.1 Home Office Box Inc.

Home Box Office Inc. is the world most successful premium television
company, it provided two television services which are HBO and Cinemax. This two
services enable HBO to create and deliver ground breaking original programming and
hit Hollywood firms to consumers worldwide across a wide range of platforms and
offerings.
Home Box Office is the global leader among all premium subscription video
businesses whether measured by subscribers, revenue, or profits. That success is built
on its long-standing tradition of being home to the best video content, including top
Hollywood films, acclaimed original programming, and special events, combined with
innovating ways for viewers to access it.
In 2014, HBO saw its highest domestic subscriber gains in more than three
decades. HBO programming earned 19 Primetime Emmy Awards, the most of any
network for the 13th year in a row. Also, Game of Thrones became the most-watched
HBO original series ever, surpassing The Sopranos and True Detective, which earned
five Emmys, was HBOs most-watched freshman series ever.
Citizenfour and Crisis Hotline: Veterans Press 1 won the 2015 Academy
Awards for Documentary Feature and Documentary Short Subject. HBOs sister
channel Cinemax also continued to invest in innovative original programming,
including Steven Soderberghs critically acclaimed drama The Knick.
To maintain the strength of its position, HBO is investing to increase its content
advantage. In 2015, that includes the return of Game of Thrones, True Detective, VEEP,
The Leftovers, and Silicon Valley, as well as new series including: Togetherness from
Jay and Mark Duplass; Ballers from producer Mark Wahlberg and starring Dwayne
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The Rock Johnson; and The Brink, starring Jack Black, Tim Robbins, and Pablo
Schreiber.
HBO is also expanding its leadership in offering subscribers more ways to enjoy
its great programming through HBO GO and MAX GO, which give multichannel
subscribers access to its library on demand from a wide variety of devices. And in April
2015, the stand-alone streaming service HBO NOW debuted, opening up HBO to a new,
untapped audience in the U.S.

5.2.2 Turner
Turner is a leader in worldwide news, entertainment, sports, kids network and
related businesses. It has a broad portfolio of brands and digital businesses reaches
consumers in more than 200 countries around the world.
TBS was the number 2 ad-supported cable network in primetime among adults
18-49 and 25-54 in 2014. TNT was home to six of the top 15 original series on adsupported cable including three most-watched new shows on cable in The Last Ship,
The Librarians, and Murder in the First. Besides, CNN is the original 24-hours news
network and the top digital source of political news, delivers the most comprehensive,
nonpartisan, breaking news and analysis to global audiences across all platforms,
programming, documentaries and original series.
In sports, Turner extended its content partnership with the NBA through the
2024-2025 season, kicked off its new agreement to air Major League Baseball regular
season and post-season games through the 2020-2021 season, and brought the NCAA
Mens Basketball Elite 8 and Final Four to cable for the first time ever.
In 2014, Adult Swim continued to attract the largest audiences of young adults
in total day of any ad-supported cable network, including the top two new shows among
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adults 18-34: Attack on Titan and Black Jesus. And in a year when most kids networks
saw audience declines, Cartoon Network grew its kids 6-11 audience and has carried
that momentum into 2015.
5.2.3 Warner Bros Entertainment
Warner Bros. is a global leader in the entertainment industry with businesses in
feature firms, home entertainment, television, videogames and consumer products. It
has captivated and entertained the world in a long history. Its feature films crossed the
$4 billion mark in worldwide box office for the sixth time.
Warner Bros. television group continued to lead the industry with more than 60
series produced for the 2014-2015 television season, including the leading scripted
show The Big Bang Theory, and top non-scripted show, The Voice. It again led the
home entertainment industry in sales of DVDs and Blu-ray Discs while trailblazing new
business models that have helped make digital ownership of content more compelling
for consumers.
Looking ahead, Warner Bros. plans to build even further on its industry-leading
positions as it taps into the growing global demand for content. Working with the
worlds best talent, Warner Bros. Pictures' and New Line Cinemas pipeline includes
the most ambitious slate of tent pole films in their history. The smash success of last
years The LEGO Movie will be followed by at least three related releases over the next
three years, including a sequel and LEGO Batman.
In television this year, Warner Bros. is further mining the rich DCE line up of
characters that fuelled two of 2014s biggest hits Gotham and The Flash. DCE, as
well as LEGO, are also key drivers of Warner Bros. videogames business, including
last years release of LEGO Batman 3: Beyond Gotham.

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2015 was expected to be a record year for Warner Bros. Interactive

Entertainment, with the final instalment of the Batman Arkham trilogy, Mortal Kombat
X, several new mobile games, and the planned launch of LEGO Dimensions, combining
physical and virtual play in the popular toys-to-life category.
Warner Bros. is also deepening its strong relationships with Turner and HBO.
The studio is forging a global kids partnership with Turner that will encompass
programming and consumer products, and Warner Bros. is producing its second series
for HBO, the upcoming Westworld, following the success of last years The Leftovers.

5.3 Globalisation
CEO of Time Warner, Jeff Bewkes says that Time Warner is planning to
continue its global expansion. From the financial performance, its companys firm,
television and publishing divisions are showing rising revenues in the past year. It hits
28.12 billion of sales in 2015.
In the past few years, Time Warners expanded the HBO brand through joint
venture in Europe, Asian and Latin America. This company had put in its effort in order
to control these entities by acquiring 100% of HBO Central Europe, a joint venture with
Sony and Walt Disney. Hence, it can grow in these growing markets. Besides, Time
Warner also acquired majority control of NDTV Imagine Limited, a Hindi general
entertainment channel in India.
Time Warner announced its partnership with Comcast to allow cable
subscribers to watch Time Warner properties such as TNT and TBS over the internet.
This TV Everywhere concept proved that people are still willing to pay for television

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content. It was in 70 million homes now. It will be the major driver of growth in the
coming years.
Time Warner is interested in implementing premium video-on-demand on the
firm. With this concept, those movies will be reachable a month sooner on cable and
the internet, 60 days after theatre release and before DVD release. Plus, Time Warner
also revisited its DVD distribution agreement with Netflix and Red Box, both in terms
of the time the companies would have to wait to get films and how much they will pay.

5.4 Global Brand

Time Warner is well known with their excellent performance in media and
entertainment businesses globally. It has been recognized for its outstanding
achievements every year. Some of the significant recognitions achieved by Time
Warner are as followed:
- Ranked 37 in The DiversityInc Top 50 Companies. (2016)
- Ranked 82 in 100-top Most Powerful Brands. (2015)
- Ranked 46 in Brand Finance US Top 100 (2015)
- Ranked 85 in The Reputations of the Most Visible Companies (2015)
- Ranked 104 in the Fortune 500 (2015)
- Ranked 186 in America Best Midsize Employers (2015)
- Ranked 95 in Green Rankings US (100) (2012)
From the recognition, we can see that Time Warner has done a good job in
operating the media and entertainment businesses. At the dated May 2015, Time
Warner has hit 70.8 billion market capital.

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5.5 Internal Analysis

5.5. 1 Marketing
Undeniably, Time Warner is very successful in the film industry. However, if it
wants to remain as one of the successful and competitive company in the future,
marketing strategy plays an important role. Time Warner uses its industry leading scale
and brands to increase investments in the best storytelling. They increase their presence
in the most attractive international territories to take advantage of the growing demand
for their content worldwide.
Time Warner differentiates its products by creating a service while targets
customers seeking older, rarer content which might otherwise have been overlooked. It
aims that by reaching a niche market that has not quite been taped they will be able to
reach a segment which may not otherwise be interested in a subscription streaming
service.
Moreover, Time Warner differentiates itself through HBO and the original
programming it is able to offer. It has come to accept that piracy is a problem that may
never have a solution and merely see it as a compliment like Game of Thrones. It
creates premium subscription services and using those services to broadcast the highest
quality TV. Hence, it is able to differentiate its products by creating a culture around
them. Even though show piracy does not affect the 60 million worldwide subscribers
and only rise the cultural buzz surround the show thereby drawing larger audiences. By
offering exclusive, quality programming which customers are willing to pay premium
rates, HBO is considered to hold about 20% of Time Warners value and contribute
over 12% to its revenue.

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The strength in this marketing strategy is Time Warner is able to carve out a
lucrative premium niche outside of the mainstream offerings by showcasing quality
content on a new platform. It also helps to generate cash for Time Warner.
The weakness is Time Warner needs high cost of operations to succeed a
program or brand directly on another media platforms. Subsequently, it faces constant
pressure from shareholders to grow the top line.

5.5.2 Finance
In term of profitability of Time Warner, we can see that it showed an increasing
trend for its gross profit margin, operating profit margin from 2011 to 2015. Time
Warners net profit margin improved from 2013 to 2014 but then slightly deteriorated
from 2014 (13.99%) to 2015 (13.63%). For return on equity (ROE) and return on assets
(ROA), Time Warner also showed a healthy set of figures which had been increased
from 2011 to 2015. It only had a slightly dropping for 6.05% to 6.00% for return on
investment in 2015.
In term of liquidity, Time Warners current ratio was 1.56 and quick ratio was
1.2 in 2015. It was the highest ration among 2011 to 2015. It does not face problem in
the paying back short term liabilities with the short term assets. Debt to equity (DOE)
and debt to capital of Time Warner was deteriorated from 2013 to 2015. It achieved the
highest DOE in 2015 which is 1.01. However, its interest coverage had improved to
4.94 which is lower than 2013 and 2014.
The strength of this financial performance of Time Warner is it actually has
stable financial capability. Time Warner is able to generate stable revenues among the
years and it showed a stable growth on the business itself.
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The weakness of Time Warner is it has an increasing trend on the debt to equity.
It means that it has higher risk. It has to be controlled to avoid the volatility of earnings
when interest expenses increases.

5.5.3 Human Capital

Time Warner has approximately 24,800 employees worldwide at 31 December
2015. It believes that its brands and businesses are supported by their people, who share
a passion on storytelling and their commitment to excellence in everything they do.
They are focusing on attracting and investing their talents. They offer their employees
a range of growth and advancement opportunities. Plus, they also seek to foster an
environment where all employees feel valued and respected.
In Time Warner, newly hired and newly promoted supervisors have to go
through diversity and awareness training programme as part of their overall
development. Its divisions have varieties of people with different backgrounds. They
also organized few programs which are focused on women leaders. They have also
expanded some of the executive development opportunities for minority executives,
partnering with leading professional organizations and management programs.
The strength of this kind of human capital is it can foster diversity among the
employees and indirectly they will have a sense of belongings as they are fairly treat. It
can enhance the relationship among the employees and their loyalty towards company.
On the other hand, the weakness exists is that management might has to set up
or organize different trainings which will incur high cost. In order to maintain the
quality of the workforce, timely basis training programs need to be held by Time
Warner and it might affect the operations of the company.

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5.5.4 Operations
As mentioned earlier, three main operation divisions of Time Warner is Home
Office Box Inc, Turner as well as Warner Bros. entertainment. There are also other
services In Time Warner such as theatrical products, television products, television
licensing, and home video electronic delivery and consumer products.
Warner Bros has generated 42.68% of the total revenue for Time Warner in
2015, followed by 32.08% of Turner and 25.23% of Home Box Office and so on.
Time Warmers aims to maintain its lead in theatrical business and broadcast by
dealing with the growing demand, while utilizing technology changes and new business
models. The execution of TV Everywhere (TVE) strategy to enhance the value of
traditional pay-tv subscriptions by making access to our networks content available on
multiple devices via an Internet connection. HBO GO is the TVE gold standard,
offering on-demand access to HBOs rich catalogue.
Besides, Time Warner also plans to expand on its well-established global
franchises in order to continue to improve margins. They are also put an emphasis on
TV production and intends to double its pay and cable production by 2018.
The strength of Time Warners operation it has a diversified business. It has a
huge customer groups in different divisions and in different geographical area. It will
By using the diversified business, Time Warner also enables to turns those potential
customer group to purchase the services. It has a strong customer relationship with the
diversified business it owns.
The weakness of its operation is Time Warner are focusing more in US markets.
US is the primary markets compare to South America, Europe, Asia Pacific and Middle
East. Over 80% of the revenues are generated from US. The slumping of US economy
might have negative impact for Time Warners products and services.

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5.5.5 Research and Development

Time Warner has invest in the research and development in order to provide
innovations from time to time. They adapt new technologies to create an economy of
scope by integrating themselves into several facets of their consumers lives. They
manage to relate HBO Go, Samsungs Smart TV applications, and a deal with Apple
TV by using the integration of the streaming. This has helps them to generated revenues
stream from every type of consumer with interest in its products. Through research and
development, Time Warner is able to do what makes them unique and exploit these
delivery methods by limiting them to consumers have subscribed on cable.
The strength of R&D is it enables Time Warner to improve according to the
customer wants and keep abreast with the latest trend in the market so they can retain
the customers and gain more potential customers.
The weakness of R&D would be very costly. Sometimes they have to spend a
lot on the R&D, yet the result cannot be realized immediately. When the innovations is
not successful, they have to pump it more money.

5.5.6 Corporate Social Responsibility

Time Warner was the first major US based media and entertainment company
to issue a comprehensive corporate social responsibility report in 2006. In CSR, Time
Warner focuses on preserving and protecting the environment. They aim to conserve
natural resources and minimize waste through source reduction and recycling.
Time Warner handles and disposing the wastes safely by using environmentally
responsible methods. They also emphasize on energy efficiency and the use of

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renewable energy sources. They encourage their business partners and suppliers to
strive for the same high levels of environmental performances.
The strength is through the CSR programs, Time Warner is able to create a good
image to the society and other businesses. This will helps them to attract more potential
investors who will prosper the development of Time Warner.
The CSRs weakness in Time Warner is it is hard to find the business partners
and suppliers from the local communities who has same interest with them. When they
find the partners, they have to ensure that those partners have the desire, reliability and
commitment to contribute as it is a long term relationship. Time Warner has to spend
time to review their past performances, board members and social network to avoid the
conflicts that will affect their brand image.

5.6 Impacts of Current Global Economic Uncertainty on Time

Warner
Time Warner is exposed to risk associated with weak domestic and global
economic conditions and increased volatility and disruption in the financial markets.
This may adversely affects its financial condition and results of operations. The impacts
will be reflected on the advertisers, affiliates, suppliers, retailers, insurers, theatre
operators and others with which it does business.
Some countries like Eurozone, India, Russia, Argentina and Brazil are facing
uncertainty or slow economic growth. This will lead to the lower spending of the
consumer for the companys content and products in those regions and countries such
as the advertisers, licensees, retailers, theatre operators and consumers reduce their

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demand for the services and products due to the negative impact of the economic
condition.
Furthermore, consumer spending in these regions and countries may be further
negatively impacted by government actions to manage national economic matters, such
as the initiatives intended to control wages, unemployment, credit availability, inflation,
taxation and other economic drivers.

5.7 Solutions to Overcome Economic Downturns

In 2008 and 2009, Time Warner had reduced the advertising expenditures due
to the declines in the global economy. It was declined and remained at reduced levels
until the economy was recovered.
Besides, Time Warner had undergone restructuring of the company due to the
economic downturns. It incurred restructuring costs of S212 million primarily related
to various employee terminations or layoff and also other exit activities. This included
$8 million at the network segment, $105 million at the Filmed Entertainment segment
and $99 million at the Publishing segment. Around 1500 employees laid off in 2009.
Another significant layoff of 1700 employees happened in 2008 because of the
restructuring cost as well. It incurred costs about $327 million.

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7.0 CBS Corporation

CBS (Columbia Broadcasting System) is an American commercial broadcast television
network that is a flagship property of CBS Corporation. The company is headquartered
at the CBS Building in New York City with major production facilities and operations
in New York City and Los Angeles.

CBS continues to operate the CBS Radio network, which now mainly provides news
and features content for its portfolio of owned-and-operated radio stations in large and
mid-sized markets, and affiliated radio stations in various other markets. The television
network has more than 240 owned-and-operated and affiliated television stations
throughout the United States. CBS is sometimes referred to as the "Eye Network", in
reference to the company's iconic logo, in use since 1951. It has also been called
the "Tiffany Network", alluding to the perceived high quality of CBS programming
during the tenure of its founder William S. Paley.

CBS Corporation is a mass media company that creates and distributes industry-leading
content across a variety of platforms to audiences around the world. The Company has
businesses with origins that date back to the dawn of the broadcasting age as well as
new ventures that operate on the leading edge of media. CBS owns the most-watched
television network in the U.S. and one of the worlds largest libraries of entertainment
content. The Companys operations span virtually every field of media and
entertainment, including cable, publishing, radio, local TV, film, and interactive and
socially responsible media. The Company operates businesses which span the media
and entertainment industries, including the CBS Television Network, cable networks,
content production and distribution, television and radio stations, Internet-based
businesses,

and

consumer

publishing.

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7.1 Historical Background

The network has its origins in United Independent Broadcasters Inc., a collection of 16
radio stations that was purchased by Paley in 1928 and renamed the Columbia
Broadcasting System. Under Paley's guidance, CBS would first become one of the
largest radio networks in the United States, and eventually one of the Big Three
American broadcast television networks.

Viacom was created in 1970 as the television syndication division of CBS, and was
spun off in 1971. In 1974, CBS dropped its former full name and became known simply
as CBS, Inc. The Westinghouse Electric Corporation acquired the network in 1995,
renamed its corporate entity to the current CBS Broadcasting, Inc. in 1997, and
eventually adopted the name of the company it had acquired to become CBS
Corporation. However, in 1999, Viacom acquired its former parent, by this time also
named CBS Corporation, formerly Westinghouse Electric.

In 2000, CBS came under the control of Viacom, which was formed as a spin-off of
CBS in 1971. In March 2005, Viacom announced plans of looking into splitting the
company into two publicly traded companies, amid issues of the stock price stagnating.
On June 14, 2005, the Viacom board of directors approved the split of the company
into two firms. The CBS Corporation name would be revived for one of the companies.
In late 2005, Viacom split itself into two separate companies, and re-established CBS
Corporation through the spin-off of its broadcast television, radio and select cable
television and non-broadcasting assets with the CBS television network at its core. CBS
Corporation is controlled by Sumner Redstone through National Amusements, which
also controls the current Viacom.

The split was structured such that the "new" Viacom was spun off from the "old"
Viacom, which was renamed CBS Corporation. In a sense, this was a repeat of the 1971
spinoff. However, in this case, CBS retained virtually all of the prior firm's broadcast
TV assets, including its various syndication companies. With the split, the two new
companies began trading on the NYSE on 3 January 2006. Investors anticipated
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Viacom benefiting from the split, but instead, it dropped approximately 20%, while
CBS rose 9%.

7.1.2 Mission Statement

"As broadcasters, we aim to ensure that our national viewing audience is reflected in
our programming and our people.

We recognize that a work force comprised of a wide variety of perspectives,

viewpoints and backgrounds is integral to our continued success.

This is not a campaign, but rather a fundamental way of doing business at CBS, and
we continue to be steadfast in our goal to become more diverse and more
representative of the public we serve."

7.2 Businesses
CBS Corporation together with its consolidated subsidiaries unless the context
otherwise requires, the Company or CBS Corp. is a mass media company with
operations in the following segments:

7.2.1 Entertainment
The Entertainment segment is composed of the CBS Television Network; CBS
Television Studios; CBS Global Distribution Group (composed of CBS Studios
International and CBS Television Distribution); CBS Interactive; and CBS Films.

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7.2.2 Cable Networks

The Cable Networks segment is composed of Showtime Networks, which operates the
Companys premium subscription program services, Showtime, The Movie Channel,
and Flix, including a digital streaming subscription offering; CBS Sports Network, the
Companys cable network focused on college athletics and other sports; and
Smithsonian Networks, a venture between Showtime Networks and Smithsonian
Institution, which operates Smithsonian Channel, a basic cable program service, and a
digital streaming subscription service.

7.2.3 Publishing
The Publishing segment is composed of Simon & Schuster, which publishes and
distributes consumer books under imprints such as Simon & Schuster, Pocket Books,
Scribner, Gallery Books, Touchstone and Atria Books.

7.2.4 Local Broadcasting

The Local Broadcasting segment is composed of CBS Television Stations, the
Companys 30 owned broadcast television stations; and CBS Radio, through which the
Company owns and operates 117 radio stations in 26 United States (U.S.) markets.

The Company operates businesses which span the media and entertainment industries,
including the CBS Television Network, cable networks, content production and
distribution, television and radio stations, Internet-based businesses, and consumer
publishing. The Companys principal strategy is to create and acquire premium content
that is widely accepted by audiences, and to generate both advertising and
nonadvertising revenues from the distribution of this content on multiple media
platforms and to various geographic locations. The Company continues to increase its
investment in both Company-owned and acquired premium content to enhance its
opportunities for revenue growth, which include exhibiting its content on digital and
other platforms through licensing and subscription services, including the Companys
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owned digital streaming content offerings; expanding the distribution of its content
internationally; and securing compensation from multichannel video programming
distributors (MVPDs), including cable, direct broadcast satellite (DBS), telephone
company, and other distributors, for authorizing the MVPDs carriage of the
Companys owned television stations (also known as retransmission fees) and cable
networks, and securing compensation from television stations affiliated with the CBS
Television Network (station affiliation fees also known as reverse compensation).
The Company also seeks to grow its advertising revenues by monetizing all content
viewership as industry measurements evolve to reflect viewers changing habits.

7.3 Globalization
The CBS Global Distribution Group includes CBS Studios International which licenses
CBS programing worldwide. Since September 26, 2006, the company is part of
the CBS Television Distribution Group. In May 2009, CBS Paramount International
Television was renamed to CBS Studios International CBS Studios International is the
leading supplier of programming to the international television marketplace, licensing
to more than 200 markets in more than 60 languages across multiple media platforms.
The Studio participates in international channel ventures, currently comprised of 18
channels in 24 languages across over 100 territories, reaching more than 70 million
households worldwide. CBS Studios International also exports a diverse lineup of
formats for local production around the world. The division distributes content from
CBS Television Studios, CBS Television Distribution, Showtime, CBS News, CBS
Films and a library of more than 70,000 hours of programming. CBS Studios
International is a division of CBS Corporation.

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7.4 Global Brand

In 2015, Josie Thomas, EVP and Chief Diversity Officer, CBS Corporation, received a
2015 Most Powerful & Influential Woman Award from the National Diversity
Council at their Tri-State Diversity & Leadership Conference. The award recognizes
leadership excellence and honors women who have not only achieved personal success
but have made it possible for others to more easily follow in their footsteps. Dennis
Kennedy, Founder & CEO, National Diversity Council presented Thomas with the
Award.

Besides that, CBS Corporation is recognized the power and influence a media company
carries through its various business units, including Network Programming, Network
News, Local Television and Radio Stations, Cable and Publishing, CBS has been on
the forefront of making diversity a reality through a wide array of initiatives targeted to
talent in front of and behind the camera as well as outreach to diverse vendors and
professional service suppliers. Their goal is to impact the industry.

In 2014, CBS Corporation this morning garnered 16 Golden Globe Award nominations
across five divisions SHOWTIME, CBS Television Studios, CBS Television
Network, The CW, and CBS Films.

In 2013, CBS Corporation divisions this morning garnered 14 Golden Globe Awards
nominations, bridging three divisions SHOWTIME, CBS Television and CBS Films
including triple crown recognition for best series and film nominations across
broadcast television.

In 2012, CBS Corporation earned 14 Golden Globe Award nominations across three
divisions SHOWTIME, the CBS Television Network and CBS Films.

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7.5 Competition

The company competes with many different entities and media in various markets
worldwide. In addition to competition in each of its businesses, the Company competes
for opportunities in the entertainment business with other diversified entertainment
companies such as The Walt Disney Company, NBC Universal Media, LLC, TwentyFirst Century Fox, Inc., Time Warner Inc., Cumulus Media Inc. and iHeartMedia, Inc.

7.5.1 Television Network

The television broadcast environment is highly competitive. The principal methods of
competition in broadcast television are the development and acquisition of popular
programming and the development of audience interest through programming and
promotion, in order to sell advertising at profitable rates. Broadcast networks like CBS
compete for audience, advertising revenues and programming with other broadcast
networks, such as ABC, FOX, NBC, The CW and MyNetworkTV, independent
television stations, cable program services, as well as other media, including DVDs and
Bluray Discs, digital program services, print and the Internet. In addition, the CBS
Television Network competes with the other broadcast networks to secure affiliations
with independently owned television stations in markets across the country which are
necessary to ensure the effective distribution of network programming to a nationwide
audience.

7.5.2 Television Production and Syndication

As a producer and distributor of programming, the Company competes with studios,
television production groups, and independent producers and syndicators, such as
Disney, Fox, NBC Universal, Sony and Warner Bros., to produce and sell programming
both domestically and internationally. The Company also competes to obtain creative
talent and story properties which are essential to the success of all of the Companys
entertainment businesses.

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7.5.3 CBS Interactive

CBS Interactive competes with a variety of online properties for users, advertisers, and
partners, including the following: general purpose portals, such as AOL, MSN and
Yahoo!, especially as these properties expand their content offerings; search
engines such as Google, Yahoo! and Bing; online comparison shopping and retail
properties, including Amazon.com; vertical content sites in the categories that CBS
Interactives brands serve such as technology, gaming, music, news, business, food,
and lifestyle focused digital properties; other content sites and apps, such as ESPN.com,
HBO GO, Hulu and Netflix, as well as major television broadcast company digital
properties and apps; and platforms such as blogs, podcasts and video properties. CBS
Interactive also competes for users and advertisers with diversified media companies
that provide both online and offline content, including magazines,
cable television, network television, radio and newspapers.

7.5.4 CBS Films

Motion picture production and distribution is a highly competitive business. During the
life cycle of the development and production of a motion picture project, CBS Films
must compete for the rights to compelling underlying source material and talent such
as writers, producers, directors, on-screen performers and other creative personnel.
CBS Films must also compete with other buyers for the acquisition of third-party
produced motion pictures. Once a motion picture is completed or acquired, CBS Films
must compete with numerous other motion pictures produced and/or distributed by
various studios and independent producers, including Paramount Pictures Corporation,
Walt Disney Studios Motion Pictures, Warner Bros. Entertainment Inc., Lions Gate
Entertainment, The Weinstein Company, Metro-Goldwyn-Mayer Studios Inc. and
Lakeshore Entertainment Group, among others, for audience acceptance as well as
limited exhibition outlets across all of the relevant release windows. In addition, the
ultimate consumer has many options for entertainment other than motion pictures

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including video games, sports, travel, outdoor recreation, the Internet, and other cultural
and computer-related activities.

7.6 Financial Performance

REVENUE BREAKDOWN

Local
Broadcasting
18%
Publishing
6%

Cable Networks
15%

Entertainment
61%

For the year ended December 31, 2015, contributions to the Companys consolidated
revenues from its segments were as follows:

Entertainment 61%, Cable Networks 16%, Publishing 6% and Local Broadcasting 19%.
The Company generated approximately 14% of its total revenues from international
regions in 2015. For the year ended December 31, 2015, approximately 52% and 14%
of total international revenues of approximately $2.00 billion were generated in Europe
and Canada, respectively.

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7.7 Internal Environment Analysis

The Companys principal strategy is to create and acquire premium content that is
widely accepted by audiences and generate both advertising and non-advertising
revenues from the distribution of this content on multiple media platforms and to
various geographic locations. The Company continues to increase its investment in both
Company-owned and acquired premium content to enhance its opportunities for
revenue growth, which include exhibiting the Companys content on digital and other
platforms through licensing and subscription services, including the Companys owned
digital streaming services; expanding the distribution of its content internationally; and
securing compensation from multichannel video programming distributors (MVPDs)
and television stations affiliated with the CBS Television Network. The Company also
seeks to grow its advertising revenues by monetizing all content viewership as industry
measurements evolve to reflect viewers changing habits. The Companys continued
ability to capitalize on these and other emerging opportunities will provide it with
incremental advertising and non-advertising revenues.

7.7.1 Strengths
Wide reach and distribution in multiple media throughout the U.S. and key
international markets.
CBS Corp. is a leading mass media company, with businesses that for many years have
consistently held leadership positions as well as newer businesses that operate on the
leading-edge of the media industry. CBS Corp., through its many and varied operations,
combines broad reach with well-positioned national and local businesses, all of which
provide it with an extensive distribution network by which it serves audiences and
advertisers in all 50 states, including the largest domestic metropolitan areas, and key
international markets.

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Popular programming and content that appeals to a broad range of audiences.

CBS Corp. delivers television, radio and publishing content that appeals to audiences
across virtually every segment of the population. In network television, CBS Network
and UPN offer programming watched by millions of viewers. CBS Corp. is an industry
leader in the production and distribution of syndicated television programming, with
long-running and recent successes. Showtime Networks Inc.'s original programming
has earned 34 Emmy Awards and 4 Golden Globe Awards since 2000. CBS Corp. owns,
operates and programs radio stations in nearly every format, including rock, all-news,
talk, oldies, adult contemporary, country, sports talk and urban, many of which now
utilize the Internet as an additional way of reaching their audiences with enhanced
content.

Extensive and growing content library exploited on multiple platforms.

CBS Corp. has a large television library including a growing collection of highdefinition content. This valuable asset includes many popular television programs. In
addition, through CBS Paramount Television and King World, CBS Corp. holds the
library rights to current first-run syndicated television programs. Showtime Networks
owns or controls various television and other rights to many of its original programs,
including movies, specials, series and documentaries. CBS Radio owns local content in
many formats from its radio stations and is pursuing new media opportunities including
Internet streaming and podcasting.

Ability to serve the needs of advertisers.

Many advertisers reach their consumers via CBS Corp.'s programming. Whether an
advertiser wishes to launch a new brand across multiple platforms or heighten
awareness of an existing product in a particular region of the country, the scope of CBS
Corp.'s distribution network gives advertisers access to consumers in all 50 states and
key international markets. CBS Corp. is also well-positioned to serve advertisers locally
with a combination of television, radio and outdoor properties in the majority of the top
20 domestic markets.

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7.7.2 Weaknesses
Considering CBS is one of the most successful programming and distribution
companies in the world, there are not too many things they are doing wrong. However,
just as the company has strengths, there are some things that could definitely improve.
CBS News took a big risk when they hired Katie Couric as their new lead anchor. As a
result, this year the CBS Evening News has recorded its smallest audience since 1987.
Although when she first got on the desk her ratings skyrocketed, they have now fallen
as a result of the whole curiosity factor wearing off. Another issue CBS News has
been criticized for is its credibility, or tendency to sometimes skew the news. CBS
News went under strong criticism when the networked allowed a 60 Minutes producer
(who was known to have strong liberal views) to rush a story using documents from a
political enemy of George W. Bush that had never been properly authenticated. The
producer wanted to beat USA Today to the punch, and as a result rushed the story
without checking it thoroughly. The producer has since been fired and CBS News has
hired someone whose only job is to oversee broadcast standards. Another recent
mistake CBS has made is a result of overly aggressive scheduling moves. The
network launched 11 new shows this fall and made a risky shift by switching "Murder,
She Wrote" from its Sunday-night slot and replacing it with two sitcoms. "Murder, She
Wrote" ratings dropped along with ratings for Sunday night viewers. In addition, none
of the new shows have been hits.

7.8 Global Economic Uncertainty

7.8.1 Impacts of Global Economic Uncertainty

During the World War II years, commercial television broadcasting was reduced
dramatically. The U.S. and other countries where the company operates have
experienced slowdowns and volatilities in their economies. A downturn could lead to
lower consumer and business spending for the companys products and services,
particularly if customers, including advertisers, subscribers, licensees, retailers, theater

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operators and other consumers of the companys content offerings and services, reduce
demands for the companys products and services.

In addition, in unfavorable economic environments, the companys customers may

have difficulties obtaining capital at adequate or historical levels to finance their
ongoing business and operations and may face insolvency, all of which could impair
their ability to make timely payments and continue operations, including distribution
of the companys content. The company is unable to predict the duration and severity
of weakened economic conditions and such conditions and resultant effects could
adversely impact the companys businesses, operating results, and financial condition.

7.8.2 Solutions to Overcome Economic Downturns

Toward the end of the war, commercial television began to ramp up again, with an
increased level of programming evident from 1944 to 1947 on the three New York
television stations which operated in those years. But as its competitor, RCA and
DuMont raced to establish networks and offer upgraded programming, CBS lagged,
advocating an industry-wide shift and restart to UHF for their incompatible with black
and white color system.

Only in 1950, when NBC was dominant in television and black and white transmission
was widespread, did CBS begin to buy or build their own stations in Los Angeles,
Chicago and other major cities. CBS had attempted to purchase and sign on the channel
11 license in St. Louis and start to acquire some stations, partnering with some famous
newspapers to boost earnings.

As television came to the forefront of American entertainment and information, CBS

dominated television as it once had radio. In 1953, the CBS television network would
make its first profit, and would maintain dominance on television between 1955 and
1976 as well. By the late 1950s, the network often controlled seven or eight of the slots
on the "top ten" ratings list with well-respected shows.
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7.9 Risk Factors

From the risk factors, we access two key risks with high impacts and high probabilities,
which are:

The Companys Businesses Operate in Highly Competitive and Consolidating

Industries
The Company competes with other media companies for high quality content to achieve
large audiences and to generate advertising revenue. The Companys ability to attract
audiences and advertisers and obtain favorable distribution depends in part on its ability
to provide popular television programming and radio programming, motion pictures
and books. The consolidation of advertising agencies, distributors and television service
providers also has made competition for audiences, advertising revenue, and
distribution more intense. In addition, consolidation among book retailers and the
growth of on-line sales and electronic books sales have resulted in increased
competition for limited physical shelf space for the Companys publications and for the
attention of consumers online. Competition for audiences and advertising comes from:
broadcast television stations and networks; cable television systems and networks;
motion picture studios; the Internet; non-traditional programming services;
technological innovations in content distribution; terrestrial and satellite radio and
portable devices; local, regional and national newspapers; direct mail; and other
communications and advertising media that operate in these markets. Other television
and radio stations or cable networks may change their formats or programming, a new
station or new network may adopt a format to compete directly with the Companys
stations or networks, or stations or networks might engage in aggressive promotional
campaigns. In book publishing, competition among electronic and print book retailers
could decrease the prices for new releases and the outlets available for book sales.
Moreover, the growing use of self-publishing technologies by authors increases
competition and could result in decreased use of traditional publishing services. This
competition could result in lower ratings and advertising and subscription and other
revenues or increased content costs and promotional and other expenses and,
consequently, lower earnings and cash flow for the Company. The Company cannot be
assured that it will be able to compete successfully in the future against existing, new
93

or potential competitors, or that competition will not have a material adverse effect on
its business, financial condition or results of operations.

The Companys Operating Results Are Subject to Seasonal Variations and Other
Factors
The Companys business has experienced and is expected to continue to experience
seasonality due to, among other things, seasonal advertising patterns and seasonal
influences, on peoples viewing, reading, attendance and listening habits. Typically, the
companys revenue from advertising increases in the fourth quarter, Simon & Schuster
generates a substantial portion of its revenues in the fourth quarter, and license fees for
television programming and CBS Films revenue from motion pictures are dependent
on the timing, mix, number and availability of the Companys television programming
and motion pictures, as applicable, which may cause operating results to increase or
decrease during a period and create non-comparable results relative to the
corresponding period in the prior year. In addition, advertising revenues in evennumbered years benefit from advertising placed by candidates for political offices. The
effects of such seasonality make it difficult to estimate future operating results based
on the previous results of any specific quarter and may adversely affect operating results.

94

8.0 References
8.1 The Walt Disney Company
The

Walt

Disney

Company.

Our

Businesses.

Retreived

from:

https://thewaltdisneycompany.com/about/
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The

Walt

Disney

Company.

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from:

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Walt Disney Park and Resorts. About Walt Disney Parks & Resorts. Retrieved from:
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Disney

Consumer

Products.

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us.

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The

Walt

Disney

Company.

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Plan.

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from:

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Jonathan Matusitz & Lauren Palermo (2014) The Disneyfication of the World: A Grobalisation
Perspective, Journal of Organisational Transformation & Social Change, 11:2, 91-107, DOI:
10.1179/1477963313Z.00000000014
UKessays.

Impacts

on

globalisation

on

Walt

Disney.

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from:

https://www.ukessays.com/essays/marketing/impacts-of-globalisation-on-walt-disneymarketing-essay.php
Walt Disney Co. (DIS). Net Profit Margin. Retrievd from: https://www.stock-analysison.net/NYSE/Company/Walt-Disney-Co/Long-Term-Trends/Net-Profit-Margin

95

abcNEWS. Disney profit plunge, recession hurts theme park. Retrieved from:
http://abcnews.go.com/Business/story?id=7514422&page=1
Pravda.ru.

Despite

recession

Walt

Disneys

shares

jump.

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from:

http://www.pravdareport.com/business/companies/07-05-2009/107513walt_disney_shares_jump-0/

8.3 Vivendi
ALOISI, S. (2016, March 11). Vivendi ups Telecom Italia stake to just below bid
threshold. Retrieved from Reuters: http://www.reuters.com/article/us-vivenditelecomitalia-idUSKCN0WD22G
Boksenbaum-Granier, A. (2016, April 30). Vivendi Buys More Ubisoft, Seeks Board
Seat in Latest Salvo. Retrieved from Bloomberg Technology:
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Cinema. (2015, November 15). Retrieved from Vivendi:
http://www.vivendi.com/activities/cinema-2/
Compliance Program. (n.d.). Retrieved from Vivendi:
http://www.vivendi.com/vivendi-en/compliance-program/
Digital. (2015, June 30). Retrieved from Vivendi:
http://www.vivendi.com/activities/digital/
eSports revenue predicted to reach $278m this year and $765m by 2018. (2015,
September). Retrieved from Join Dota:
http://www.joindota.com/en/news/31921-esports-revenue-predicted-to-reach278m-this-year-and-765m-by-2018
juliakollewe. (2009, September 1). Guitar Hero and Call of Duty help Vivendi smash
through recession. Retrieved from The Guardian:
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96

Key Figures and Simplified Organization Chart. (2016, March 10). Retrieved from
Vivendi: http://www.vivendi.com/investment-analysts/key-figures-andsimplified-organization-chart/
Music. (2015, September 3). Retrieved from Vivendi:
http://www.vivendi.com/activities/music-2/
Our History. (2015, August 12). Retrieved from Vivendi:
http://www.vivendi.com/vivendi-en/our-history/
Recession boosts Vivendi. (2009, September 1). Retrieved from Evening Standard:
http://www.standard.co.uk/business/recession-boosts-vivendi-6745006.html
Supervisory Board. (2016, May 11). Retrieved from Vivendi:
http://www.vivendi.com/vivendi-en/governance/supervisory-board/
Television. (2015, September 30). Retrieved from Vivendi:
http://www.vivendi.com/activities/television-2/
Vivendi in brief. (n.d.). Retrieved from Vivendi: http://www.vivendi.com/vivendien/vivendi-in-brief-2/
Vivendi SA. (2016, May 20). Retrieved from Morningstar:
http://financials.morningstar.com/competitors/industrypeer.action?t=VIVEF&region=usa&culture=en-US
Vivendi says Telecom Italia's debt no obstacle to growth. (2016, January 29).
Retrieved from Vivendi: http://www.reuters.com/article/us-telecomitaliavivendi-idUSKCN0V71XO
Vivendi Universal S.A. History. (n.d.). Retrieved from Funding Universe:
http://www.fundinguniverse.com/company-histories/vivendi-universal-s-ahistory/
Vivendi Village. (2016, March 18). Retrieved from Vivendi:
http://www.vivendi.com/activities/vivendi-village-en/

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8.4 Time Warner

A Timeline of Time Warner Inc. (2014, June). The Wall Street Journal. Retrieved
from http://www.wsj.com/articles/a-timeline-of-time-warner-inc-1405522663
Fortune 500. Retrieved from http://fortune.com/fortune500/.
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from

https://michaelkatkin.files.wordpress.com/2013/08/twx-

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http://www.valueline.com/Stocks/Highlights/Time_Warner_Inc___A_Short_S
WOT_Analysis.aspx#.V0A8CJF97IU
Time

Warner

Annual

Report

2014.

Retrieved

from

http://www.timewarner.com/sites/timewarner.com/files/ckeditor/public/files/T
WX_2014_Annual_Report.PDF
Time

Warner.

(2010)

Economy

Watch.

Retrieved

from

http://www.economywatch.com/companies/forbes-list/usa/time-warner.html
Time

Warner

Inc.

CSI

Market.

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from

http://csimarket.com/stocks/competitionNO4.php?supply&code=TWX
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Time Warner. Retrieved from http://www.makingafortune.biz/list-of-companiest/time-warner.htm.
Time

Warner

Inc.

Market

Watch.

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from

http://www.marketwatch.com/investing/stock/twx/financials

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Background

Information

on

Time

Warner

Inc.

Retrieved

from

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http://www.referenceforbusiness.com/history2/83/Time-WarnerInc.html#ixzz48vSSFfcu
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8.5 CBS Corporation

Corporation, C., & Inc, C. B. (2016). Investor relations. Retrieved from
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Channel For CBS Studios International" (Press release). CBS Studios International.
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Australian TV venture". The Los Angeles Times. Retrieved 26 August 2010.
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States to 1933. New York City: Oxford University Press.
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and the UPI in Campaign '80. New York City: Russell Sage Foundation.

Sally Bedell Smith (1990). In All His Glory: The Life of William S. Paley, the
Legendary Tycoon and His Brilliant Circle. New York City

Ben H. Bagdikian (2000). The New Media Monopoly (6th ed.). Boston: Beacon
Press.

Corporation, C., & Inc, C. B. (2016). THE CW NETWORK AND FOX

TELEVISION STATIONS ANNOUNCE NEW AFFILIATION AGREEMENT FOR
WPWR-TV IN CHICAGO. Retrieved from https://www.cbscorporation.com/

Corporation, C., & Inc, C. B. (2016). Earnings releases, investor newsletters &
supplements. Retrieved from
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Competitive strengths for CBS (CBS). (2006). Retrieved from

http://www.wikinvest.com/stock/CBS_(CBS)/Competitive_Strengths
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Jeff Kisseloff (1995). The Box: An Oral History of Television, 19201961. New York
City

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