October 2013 10 World Big Payday For Big U.S. TV Cos Despite some definite challenges (including competition from online streaming services and fractured audiences), television companies and TV divisions within large media companies are still seeing profits — especially in comparison to their theatrical counterparts. In the U.S., TV distributors DirecTV and Time Warner Cable reported second quarter revenue increases despite drops in subscribers. The two rival companies — Time Warner is a cable company and DirecTV a satellite provider —managed to pull this off by focusing on more profitable subscribers: those who stick around longer and pay more for monthly services. Overall for the quarter, DirecTV posted a profit of $660 million (which is down from the same time last year, though average revenue per household is up) and Time Warner Cable posted an increased profit of $481 million for the quarter. The loss in subscribers for both companies is largely attributed to online streaming services like Netflix, which have caused viewers to become “cord-cutters.” Media companies Comcast (owner of NBC broadcast network) and CBS Corporation (which owns the CBS broadcast network) had good news to celebrate for the second quarter of 2013, too. Comcast’s earning rose to $1.7 billion (from $1.35 billion) and CBS Corporation’s to $472 million compared to $427 million last year. CBS’s strong performancewas attributed in part to licensing deals with Internet streaming services like Amazon. In the third quarter of 2013, the Walt Disney Company saw growth fromthe company’s cable television division (specifically its sports cable network ESPN). Operating income at the Media Networks unit roseeight percent, to $2.3 billion. In the second quarter, MGM Holdings, the parent company of Metro-GoldwynMayer, reported a net income A newmove by Viacom seems to indicate that the U.S. is embarking on a new era of TV competition. Viacom — owner of cable channels Nickelodeon, Comedy Central and MTV, among others — has entered into a tentative agreement with Sony, which is working on an as-yet-unnnamed Internet service that would let paying subscribers receive streaming live cable channels. The Sony service could provide another option for the way most people in America get their television service — via cable, satellite provider or in some cases Telcos. Sony is planning to stream cable channels and on-demand programming over the Internet, posing new competition for cable, satellite and phone companies. The service would be beamed to Sony devices such as PlayStation, as well as the company’s Bravia high-definition TVs. Plus, Sony plans to extend it to other Sony devices, including tablets and smartphones. Sony has sold more than 24.4 million PlayStation 3 consoles in the U.S. alone, and many households own other Internet-connected Sony electronics. The deal is considered a major boost for Sony, and may help the company sign on more major programmers. Sony plans to start selling the service in the fourth quarter of 2013 or early 2014, according to reports. Sony, Viacom To Stream Together (Continued on Page 12) (Continued from Page 6)
RkJQdWJsaXNoZXIy MTI4OTA5