November 17, 2024

CBS Acquires 50% Stake In Former TV Guide Network

The deal, in the works for several weeks, puts CBS into partnership with Lionsgate, which will retain the other half of the company. The management structure was not announced, but the official statement about the deal promised that a rebranding effort and a new programming strategy would be announced later.

CBS, which already owns the pay-cable channel Showtime, paid about $100 million to acquire the 50 percent of TVGN and of the Web site TVGuide.com that had been owned by One Equity Partners, a unit of JPMorgan Chase. The price means the value of the half-stake has declined since 2009, when One Equity paid $122 million for a 49 percent share.

Lionsgate, the entertainment company responsible for such television shows as “Mad Men” and “Nurse Jackie,” bought the network in 2000 for $241 million. TVGN is available in more than 80 million homes.

CBS’s top executive, Leslie Moonves, has been looking to expand in the basic cable arena for some time, but only at the right price, he has said. (CBS also owns a sports network and the Smithsonian Channel on basic cable.)

In January, the company announced its intention to divest itself of its outdoor advertising unit, a move that was viewed as consistent with Mr. Moonves’s frequent statements that he intended to build CBS as a pure “content company.” Adding a basic cable channel will offer both a potential outlet for new original programming and for the large library of CBS programming.

Mr. Moonves and Jon Feltheimer, the chief executive of Lionsgate, are longtime close personal friends.

TVGN, which is a separate entity from TV Guide magazine, began in 1981 as an on-screen program guide. It later began acquiring repeat episodes of network series and added some original programming. But early on those shows had to share the screen with program listings.

Now, in a large majority of the homes that receive the channel, the screen is not split between programming and a channel guide, though some of its remaining deals with cable systems require the channel to display a running list of shows and channels.

Article source: http://www.nytimes.com/2013/03/27/business/media/cbs-acquires-stake-in-tvgn.html?partner=rss&emc=rss

Oliver Luckett of theAudience, Building Online Fan Bases

Raised in Mississippi and with the accent to prove it, Mr. Luckett, 38, is known for zooming around town in an Aston Martin — that is, when he’s not jetting off to places like Iceland, where he was last December to compete against Bjork in a gingerbread house-building contest. He lost, despite help from a buddy in Disneyland’s research and design lab.

With his new company — a social media start-up called theAudience — Mr. Luckett promises nothing short of rewiring celebrity economics, and he abruptly dismisses skeptics. “Get on my train,” he likes to say, his blue eyes blazing. “We’re leaving now.” Yet he can also be a big softy known for his striped-sock collection. During a business meeting not so long ago, he veered into an emotional story about coming out of the closet and started to weep.

Just another showy show-business personality? Some people think so. But many of the entertainment factory’s most powerful forces — William Morris Endeavor, Lionsgate, Universal Pictures — and one tech superstar, Sean Parker, are taking him very, very seriously.

About two years ago, Mr. Luckett left a senior position at Walt Disney, where he managed the social media presence of Cinderella and her cartoon friends, to do the same for actors and musicians. For each client, theAudience works to build a network of fans across the likes of Facebook, Twitter, YouTube and Google Plus and to keep those followers engaged by posting a steady stream of catchy pictures, comments and videos.

THEAUDIENCE, part of a stampede of start-ups aiming to exploit the intersection of celebrity and social media, also sells its services directly to movie marketers, record labels and concert promoters. It did stealth work on behalf of the hit movie “Ted,” for instance, and the Coachella music festival. Mr. Luckett refuses to identify his clients, but he says theAudience publishes thousands of items a month on behalf of about 300 accounts, reaching a total of 800 million fans.

Movie and music executives say theAudience’s clients include Mark Wahlberg, Charlize Theron, Jack Black, Eddie Murphy, Hugh Jackman, Usher, Pitbull and LMFAO.

Celebrities seizing opportunities to promote themselves? As Captain Renault would say, “I’m shocked, shocked.” But theAudience illustrates something important about where Hollywood is headed. After largely ignoring social media — allowing fake Facebook pages to proliferate, sticking with tried-and-true publicity stops like “Entertainment Tonight” — stars and agents are realizing en masse that they need to get on that train.

There is intense downward pressure on artist salaries in all corners of entertainment. Movie attendance over the summer hit a 20-year low. The Web has decimated the music industry. DVRs are roiling television. William Morris Endeavor, a founding investor in theAudience, sees the assertive cultivation of social media networks as one way to shift power back to stars.

To agents, the metrics of theAudience offer crucial leverage: If you cast Ms. Theron in a movie, she comes with an ability to fill seats through her social network, and we can prove it with data. Oh, and she needs to be paid more because of that. The same leverage holds true for sealing endorsement deals, which is where celebrities, and their agency backers, increasingly make their real money.

“That is absolutely part of the conversation now,” says Ari Emanuel, the co-chief executive of William Morris Endeavor. “We all use all the tools we have.”

If you were wondering how Rihanna was cast in “Battleship,” it was lost on no one at Universal that she came with 26 million Twitter followers.

Ultimately, Mr. Emanuel and others look at social media networks as a new type of cable channel, and theAudience is helping celebrities to program theirs. Consider it as the Web equivalent of OWN, Oprah Winfrey’s channel; she maintains control of what goes on it, but she hires people to make it happen.

“The real value of these networks is in programming,” says Mr. Parker, the Napster founder who also played a big role in Facebook’s world domination. “If you can aggregate effectively, you can start to imagine social media a little bit more like traditional media.”

Mr. Luckett has a long history with start-ups, including Revver, a video sharing site that was precursor to YouTube. He says theAudience recently obtained $20 million in an additional round of financing from Guggenheim Partners; Intertainment Media; Participant Media; the Founders Fund, which is Mr. Parker’s investment company; and the Capricorn Investment Group, the investment arm of Jeffrey Skoll, the first president of eBay.

“A lot of celebrities are overwhelmed with the demands of social media, and theAudience, which has some extremely smart executives, is one of the companies filling the void,” said Danielle De Palma, senior vice president for digital marketing at Lionsgate, which hired Mr. Luckett to work on “The Hunger Games.”

Article source: http://www.nytimes.com/2012/11/11/business/oliver-luckett-of-theaudience-building-online-fan-bases.html?partner=rss&emc=rss

Media Decoder: ‘Hunger Games’ Book Sales Bode Well for the Film

The actress Jennifer Lawrence in a scene from the movie adaptation of The Hunger Games.Murray Close/LionsgateThe actress Jennifer Lawrence in a scene from the movie adaptation of “The Hunger Games.”

Lionsgate’s movie adaptation of “The Hunger Games” does not arrive in theaters until March 23 — still too far away for analysts to predict ticket revenue. But if spiking sales of the books are any indication, Lionsgate’s marketing efforts are whipping up a five-alarm box-office fire.

About 9.6 million books in Suzanne Collins’s “Hunger Games” trilogy were in circulation in the United States when Lionsgate started production on its adaptation of the first novel in the summer, according to figures from Scholastic, which published the works.

Tim Palen, the studio’s chief marketing officer, started adding kindling soon after, slowly doling out images of the characters — including Jennifer Lawrence as the young heroine, Katniss Everdeen — and sneak-peek film footage to MTV.

By early November, after a heavy online marketing push, 16 million books from the trilogy were in print in the United States. The first full-length trailer made its debut on Nov. 18 (with “The Twilight Saga: Breaking Dawn — Part 1”), igniting Facebook and the blogosphere. There are now 23.5 million books in print in the domestic market.

And that is before Scholastic releases the well-reviewed trilogy in special movie tie-in editions, books that are expected to go on sale Feb. 3. Tracy van Straaten, a spokeswoman for Scholastic, said Lionsgate’s marketing was only partly responsible, attributing the steep rise to “holiday gift-giving, word of mouth and advance buzz for the film.”

Mr. Palen said in a statement: “I’m thrilled book sales continue to rise as our campaign rolls out. Knowing that the materials and publicity surrounding the movie have inspired people to read the books is very encouraging.”

“The Hunger Games” takes place in a postapocalyptic world where the government televises an annual fight to the death between a teenage boy and girl. Advance tickets go on sale Feb. 22.

Article source: http://feeds.nytimes.com/click.phdo?i=4f5ebfde775d7d1d0bbbecdceb37bef3