Top Thirty Global Media Owners 2014

Top Thirty Global Media Owners2014

Written by:Anne Austin, Jonathan Barnard, Nicola Hutcheon

Design by: David Parry

ISSN 1753-9714 (Print) ISSN 1753-9722 (Online)

Every effort has been made in the preparation of this book to ensure accuracy of the contents, but the publishers and copyright owners cannot accept liability in respect of errors or omissions.

Readers will appreciate that the data is only as up-to-date as printing schedules will allow and is subject to change.

© ZenithOptimediaMarch 2014

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Contents

Introduction 1

Ranking of media ownersRanking table 2

Company entries21st Century Fox (formerly News Corporation) 3Advance Publications 5Asahi Shimbun Company 7Axel Springer 8Baidu 10Bertelsmann 11BSkyB 13CBS Corporation 15CCTV 17Clear Channel Communications 18Comcast 19Cox Enterprises 21DirecTV Group 22Discovery Communications 23

Facebook 25Fuji Media Holdings 26Gannett 28Globo 30Google 32Hearst Corporation 33JCDecaux 35Mediaset 37Microsoft 39News Corporation 40Time Warner 42Viacom 44Vivendi 45Walt Disney Company 47Yahoo! 49Yomiuri Shimbun Holdings 50

AppendicesGlossary 51Exchange rates 51

1 Top Thirty Global Media Owners 2014

In addition, News Corporation, which took third place in last year’s list (which compared 2011 figures), has split into two separate companies, both of which make the list – 21st Century Fox (4) and News Corp (12).

The list remains dominated by companies based in North America and Europe. Eight out of the top ten media companies are based in the USA, with the two biggest European names making up the numbers. In total, 18 of the companies on the list are based in the USA, six in Europe, three in Japan, two in China and one in Brazil. Between them, they attracted around US$291 billion in media revenue in 2012, with the top ten media owners on our list accounting for around 65.4% of the total (down from 67.6% in 2011).

The list of the top thirty media owners follows; they are ranked by what we describe as 2012/13 media revenue: in other words, their media revenue generated during the financial year that ended between July 1st 2012 and June 30th 2013. In most cases this means FY 2012, but quite a few of the companies listed use accounting years that do not coincide with the calendar year, so we decided to specify this range of dates in order to make a fair comparison.

Introduction

Welcome to the latest edition of ZenithOptimedia’s occasional series Top Thirty Global Media Owners, in which we list the biggest media companies in the world, ranked by media revenue. We define media revenue as all revenues deriving from businesses that support advertising – television broadcasting, newspaper publishing, web search, and so on. This includes not only advertising revenues but also other monies earned from these businesses, such as circulation revenues for newspapers or magazines or subscription revenues for pay-TV services. Some companies on the list are entirely media-focused; others are corporate giants for which media revenue forms only a small part of their overall turnover. We count only the media revenue for ranking purposes.

Since last year, the list has not changed all that much – but one big story has emerged: namely, that we are finally seeing representatives from China. Two make the list: state TV operator CCTV (23) and massive search engine company Baidu (28). The latter has been growing particularly quickly, and we expect it to rise considerably higher in our list over the next few years.

Top Thirty Global Media Owners 2014 2

Ranking table

Media ownerMedia revenue (US$m)

2011/12 2012/13

1 Google 36,531 43,686

2 DirecTV 27,226 29,740

3 Walt Disney Company 19,696 20,281

4 21st Century Fox (formerly News Corporation) 16,688 19,033

5 Comcast 16,153 18,468

6 Time Warner 15,639 16,118

7 Cox Enterprises* 11,100 11,400

8 BSkyB 10,113 10,751

9 Bertelsmann 10,401 10,554

10 CBS Corporation 10,161 10,380

11 Viacom 8,645 9,100

12 News Corporation 7,344 7,400

13 Advance Publications* 6,550 6,780

14 Vivendi 6,236 6,436

15 Clear Channel Communications 5,991 6,032

16 Asahi Shimbun Company 5,971 5,917

17 Gannett 4,983 5,098

18 Yomiuri Shimbun Holdings* 4,953 4,997

19 Yahoo! 4,984 4,987

20 Globo 4,053 4,578

21 Fuji Media Holdings 4,454 4,415

22 Discovery Communications 4,074 4,385

23 CCTV - 4,335

24 Facebook 3,154 4,279

25 Axel Springer 3,908 4,060

26 Hearst Corporation* 3,800 3,900

27 Mediaset 3,555 3,585

28 Baidu 2,329 3,575

29 Microsoft 3,181 3,387

30 JCDecaux 3,162 3,368

* estimated


Digital satellite television platform Sky Italia, which provides TV and broadband services directly to almost 4.8 million subscribers in Italy, is part of the company’s Direct Broadcast Satellite Television operations. 21st Century Fox also has substantial shareholdings in satellite broadcaster BSkyB (the UK’s largest digital pay-TV platform - see separate entry for more details) and German pay-TV operator Sky Deutschland. Outside of Europe, it owns a 30% stake in Asia’s Tata Sky, which owns and operates a DTH platform in India.

The smallest division, Other, consists primarily of corporate overhead and eliminations, but it also includes video content site hulu.com (a joint venture with NBCUniversal and Disney).

Media properties

Television

USA Fox Broadcasting Company Fox Sports Fox Television Stations (28 affiliated stations) MyNetworkTV MundoFox (50%) Fox News Channel Fox Business Network FX Networks Fox Sports Networks Fox Deportes National Geographic Channels (70%) Big Ten Network (50%)

International Fox International Channels (300+ channels) Asia STAR India (44 channels) Channel [V] India Vijay Asianet (87%) Media Pro (25%) CMC-News Asia (47%) Phoenix Satellite Television (12.2%) Tata Sky (30%)

Europe Sky Italia BSkyB (39%) Sky Deutschland (55%)

Latin America Fox Sports Latin America LAPTV (78%) Telecine (13%)

21st Century Fox (formerly News Corporation)

In June 2012, News Corp announced that it would be separating into two distinct publicly traded companies, partly as a result of a phone hacking scandal. This was completed in June 2013, with 21st Century Fox holding most of the broadcasting and film businesses, and the new News Corp mainly consisting of the information and publishing businesses.

21st Century Fox is a diversified media and entertainment company, and its operations span the globe. We do not count revenues from its ‘Filmed Entertainment’ segment as part of its media revenue, but these revenues are considerable, accounting for almost a third of total turnover in financial year 2012/13.

21st Century Fox’s Cable Network Programming division produces and licenses programming for distribution on cable TV systems and direct broadcast satellite platforms in the US, Latin America, Europe and Asia - it is the company’s biggest segment, and revenues were up by almost 17% year-on-year to a record US$10.8 billion in the year ending June 2013. Cable network operations in America include the Fox News Channel (FOX News), which was the most-watched cable news network in the US for the 11th consecutive year in 2013; the Fox Sports Network, the largest regional sports network programmer in the country; and the Big Ten Network. In Asia, News Corp owns STAR India, which broadcasts 44 channels in seven different languages to over 100 countries worldwide.

Fox International Channels is part of the division’s international cable network operations. It operates, develops and distributes over 300 channels to more than 200 countries across Africa, Asia, Europe and Latin America. Brands include FOX, FOX Crime and the National Geographic Channel.

21st Century Fox also has a Television division, which mainly comprises the Fox Broadcasting Company (FOX), Fox Sports, MyNetworkTV, and the 28 stations in the Fox Television Stations group. FOX is one of the ‘Big Four’ major networks in the US, the others being CBS, NBC and ABC.

Media revenue 2012/13:

US$19,033m

Media ranking:

Media owned:

4

TelevisionInternet


Internet Several digital media assets including: Fox.com Hulu (33%)

21st Century Fox (formerly News Corporation)

Middle East & Africa Moby (36%) Rotana (19%)

US$ million 2011 2012 2013

Media revenue

Cable Network Programming 8,212 9,324 10,881

Television 4,844 4,803 4,860

Direct Broadcast Satellite Television 3,761 3,740 4,439

Other -398 -1,179 -1,147

Total media revenue 16,419 16,688 19,033

Non-media revenue 7,813 8,363 8,642

Total revenue 24,232 25,051 27,675

Operating income by division

Cable Network Programming 3,009 3,549 4,177

Television 770 791 855

Direct Broadcast Satellite Television 546 561 397

Other -563 -456 -476

Filmed Entertainment 1,058 1,312 1,308

Total operating income 4,820 5,757 6,261

Key financial data Year end: 30 June


Advance Publications

Following years of declining print advertising revenue across the newspaper industry, Advance Publications has reduced the number of print editions published each week for a number of its papers. In October 2012, The Times-Picayune reduced its schedule to three printed issues a week, making New Orleans the largest American city without a daily paper.

Other newspaper interests include American City Business Journals (ACBJ), which publishes 40 metropolitan weekly business newspapers, with a combined reach of about 3.6 million; it also publishes speciality titles for classic car enthusiasts and sports fans, including the Sporting News. Another division of ACBJ - Street & Smith’s Sports Group - publishes the weekly Sports Business Journal.

Television

Under the brand Bright House Networks, Advance/Newhouse Communications provides cable television services to various markets, including Tampa Bay and Central Florida, Indianapolis, Birmingham, Bakersfield and Detroit. It offers digital phone, high-speed data and video-on-demand services to more than 2.4 million subscribers.

Advance Publications also holds a significant interest (31%) in US media company Discovery Communications, the leading provider of non-fiction entertainment. Discovery Communications has 28 network entertainment brands, including Discovery Channel and Animal Planet, and reaches more than 1.8 billion subscribers worldwide.

Internet

All Advance Publications divisions have extensive web presences. Condé Nast Digital brings together all of its magazine brands; as well as the individual sites for each publication, national brands have been created grouped around themes, such as food (epicurious.com) and fashion (style.com). Similarly, Advance Digital works with the company’s newspapers, and has developed several local brands, including NJ.com and OregonLive.com.

Advance Publications also owns social news and entertainment website Reddit.

Media properties

Magazines

USA Condé Nast Publications – 23 titles including Vogue, Glamour, Vanity Fair and The New Yorker Parade

International Condé Nast Publications – 38 titles including Vogue, allure, GQ and Wired

Founded in 1922, privately held media company Advance Publications is perhaps best known for its Condé Nast stable of magazines, but it owns several daily newspapers and local business weeklies in cities across the US too. Other interests include a range of websites connected to its print operations, and cable television. Detailed financial information is scarce, but we estimate that media revenue for the company for the year ending December 2012 was US$6,560 million.

Magazines

Acquired by Advance Publications in 1959, Condé Nast Publications is one of America’s leading magazine companies. The company, which owns Fairchild Fashion Media and Golf Digest Companies, publishes 23 titles in the US including Glamour, Vogue, Vanity Fair, GQ, Golf Digest and The New Yorker. Women’s monthly Glamour is Condé Nast’s top seller; it circulates nearly 2.4 million in the States and has over 11 million readers.

Many of Condé Nast’s titles are published internationally, either by the company itself or via a joint venture or licence. Vogue, for example, is produced in 15 editions worldwide. In total, Condé Nast International publishes around 38 titles in 26 countries.

Parade magazine is a newspaper supplement, and independent of Condé Nast. It was first published in 1941 and is distributed by more than 600 Sunday newspapers across America, with a circulation of 33 million per issue.

Newspapers

Advance Publications’ newspaper division publishes local newspapers in more than 25 cities and towns across America, including The Plain Dealer in Cleveland, The Times-Picayune in New Orleans and the Kalamazoo Gazette in Michigan. Some of the titles are amongst the biggest-selling newspapers in the US.


US$6,780m

Media ranking:

Media owned:

13

Magazines

TelevisionNewspapers

Internet


Advance Publications

Television

USA Bright House Networks Discovery Communications (31%)

Internet

Websites include: Reddit.com Condenast.com Concierge.com BestLocalJobs.com Bizjournals.com AL.com

Newspapers

USA American City Business Journals - 40 business newspapers and nine specialist titles including The Business Review (Albany), Birmingham Business Journal, Sporting News and Hemmings Motor News. Affiliated newspapers – around 49 titles including The Bay City Times, The Mississippi Press, The Post-Standard and The Star-Ledger


Chinese – is accompanied by an app called Fresh Japan, which delivers weekly news in Chinese to iPads and other devices. The company also produces a Korean-language website called Asahi Asian Antenna.

The company bundles various inserts with the main newspaper that allow advertisers to target particular localities or readers interested in specialist topics. It also publishes the Asahi Weekly, a bilingual weekly newspaper in English and Japanese, which is aimed at Japanese people who are learning English.

The publications division publishes 25 magazines including weekly news magazine AERA and several spin-offs.

In addition to its publishing interests, the Asahi Shimbun Company owns almost a quarter of national broadcaster TV Asahi and its 23 local network affiliates, plus a commercial printing business.

Media properties

Newspapers

The Asahi Shimbun (supplements – be, The Asahi Shimbun GLOBE) Asahi Weekly Internet Several sites including: The Asahi Shimbun Digital The Asahi Shimbun AJW (English) Asia and Japan Watch (English) The Asahi Shimbun Chinese (Chinese) Fresh Japan (Chinese app) Asahi Asia Antenna (Korean) Magazines 25 titles including AERA, AERA Style Magazine, AERA with Baby, Sesame, Autocar Japan, Champions Television TV Asahi (24.72%)

Asahi Shimbun Company

The Asahi Shimbun Company is one of Japan’s leading media companies, with interests in publishing, commercial printing, advertising and broadcasting. Flagship title The Asahi Shimbun is the country’s second-most-popular newspaper; the company also publishes a range of supplements to the main title, as well as several stand-alone magazines and websites. It is owned by Michiko Murayama and Shoichi Ueno, descendants of the founders of the original newspaper, which was first published in Osaka in 1879.

Considered to be the most liberal of the five major Japanese newspapers, The Asahi Shimbun sells around 7.7 million copies of its morning edition, and 2.9 million of its evening edition. As is typical for Japanese newspapers, almost all copies go to regular subscribers. It is the second-highest-circulating newspaper in Japan, and for that matter the world. The highest-circulating is its domestic rival the Yomiuri Shimbun.

The newspaper’s main website is The Asahi Shimbun Digital, which it supplements with separate sites for news in different languages. Its main English-language website is Asahi Shimbun AJW, which takes the last part of its name from Asia and Japan Watch, a subscription-only website that provides more specialised English-language news and information for academic and other institutions. The Chinese version of the main website – Asahi Shimbun


US$5,917m

Media ranking:

Media owned:

16

Newspapers

MagazinesInternet

Television

2012 2013

¥ million

Media revenue 476,179 471,914

2012 2013

US$ million

Media revenue 5,971 5,917

Key financial data Year end: 31 March


not seem to have dropped much, which is obviously good news.

In 2012, Springer was awarded exclusive licence rights to German National Soccer League highlights for a four-year period, starting with the 2013/14 season. Bild.de provides the highlights from all of the matches as video-on-demand, on both its internet and mobile services.

Axel Springer is listed on the German Stock Exchange. The founder’s family owns 56.7% of the shares, and the current CEO Mathias Döpfner holds 3.26%. The remainder (40.0%) are traded freely.

Media properties

Newspapers Czech Republic Three newspapers including Blesk

Germany 12 newspapers and advertising papers including Bild and Die Welt

Hungary 10 newspapers including 24 Óra and Világgazdaság

Poland Three newspapers including Fakt and Przeglad Sportowy

Serbia Three newspapers including Blic

Slovakia Novy Cas

Switzerland Handelszeitung

Magazines Czech Republic 11 magazines including Sport and Auto TIP

France Four automotive magazines (through a joint venture with the Mondadori Group)

Germany Around 15 magazines including Auto Bild

Hungary Over 30 magazines including Kiskegyed

India Auto Bild (in a joint venture with the India Today Group)

Axel Springer

Axel Springer was founded in 1946 in Hamburg. It began with newspapers in Germany – Hamburger Abendblatt, Bild and Die Welt – but has since grown to operate in 44 countries (through subsidiaries, joint ventures and licences) and in 2012 had a turnover of just over US$4 billion.

Until recently, Axel Springer divided its work into five segments: Digital Media, Newspapers National, Magazines National, Print International, and Services/Holding. With the 2013 annual report, due to be published in March 2014, it is introducing a new segmentation system that more appropriately reflects the company’s business in the digital age. The new segments are Paid Models (Newspapers National, Magazines National, Print International, content portals and other digital media), Marketing Models (performance marketing, reach-based marketing), Classified Ad Models (digital classifieds) and Services/Holding, which remains the same as before. As our media ranking is done by comparing 2012 data, we give the revenue figures using the old system, but would expect this to change next year if Axel Springer still makes the list.

The new Paid Models segment encompasses both national and international sections, the former consisting of the Bild Group and the Welt group, the latter including titles in Switzerland, France, Russia, Spain, Poland, Slovakia, Serbia and Hungary.

Bild is Europe’s biggest and widest-reaching daily newspaper, but its circulation (around 2.5 million in 2013) has been falling a little over the past few years. This has prompted a strategy rethink; the company is putting a growing focus on its digital operations, and less emphasis on its traditional printed business. In July, Axel Springer sold a number of its more traditional assets to Funke Mediengruppe – the regional titles the Berliner Morgenpost and Hamburger Abendblatt – along with five TV guides and two women’s magazines in order to swell its cash coffers in advance of a campaign of fresh investment in its digital operations. As part of this overall change in strategy, the company also decided to introduce a partial paywall for the Bild.de website in June 2013. So far, its user numbers do


US$4,060m

Media ranking:

Media owned:

25

NewspapersMagazinesInternet


Slovakia Four magazines

Switzerland 12 magazines including Bilanz and Beobachter

Digital

Over 20 websites including Bild.de, the careers platform Stepstone, the housing portals Immonet and Seloger and the price comparison portal Idealo.

Axel Springer

Poland 14 magazines including Newsweek Polska

Russia 12 magazines including Forbes, Computer Bild and OK!

Serbia Five magazines

Spain Nine magazines including video-game and computer magazines, as well as automotive magazines

€ million 2010 2011 2012

Media revenue

Circulation revenues 1,174 1,205 1,163

Advertising revenues 1,385 1,607 1,758


Non-media revenue

Other revenues 335 374 390

Total revenue 2,894 3,185 3,310

EBITDA 511 593 628

US$ million 2010 2011 2012

Media revenue

Circulation revenues 1,632 1,674 1,616



Non-media revenue

Other revenues 465 519 542

Total revenue 4,023 4,427 4,601

EBITDA 710 825 873

Key financial data Year end: 30 December


now dominates the Chinese search market: researchers Analysys reported that it had a market share of 72.1% in September 2013. And it is showing signs of wanting to expand – its subsidiary Baidu Japan has a small presence in the Japanese market, for example – but it is likely that it will struggle to repeat its success elsewhere, since it will be without several key advantages. The most important of these is the fact that Google’s position is much weaker in the Chinese market than in most others across the globe due to its unwillingness to self-censor as the Chinese government requires. This has given Baidu a competitive advantage in its home market over Google that is unlikely to be replicated elsewhere. Another problem is that in its home Chinese market it benefits from relatively lax laws around copyright, meaning that some of its tools (Baidu mp3, for example) will need to be overhauled if they are to be legally rolled out in other markets. When the Recording Industry Association of America compiled a “naughty list” of online and physical markets worldwide that were contributing to the spread of illegal music, Baidu found itself squarely on the list. This sort of thing is going to need to be addressed if it is to have any hope of becoming a credible international player. Although, given the size of its home market and the remaining potential for growth within it, some might suggest that there’s no need for Baidu to worry about that just yet.

Media properties

Internet Baidu.com Hao123.com Hao123 International Baidu Japan

Baidu

RMB million 2010 2011 2012

Media revenue

Online marketing services 7,913 14,490 22,246


Non-media revenue

Other 2 11 60

Total revenue 7,915 14,501 22,306

Operating profit 3,959 7,577 11,051

US$ million 2010 2011 2012

Media revenue

Online marketing services 1,272 2,329 3,575


Non-media revenue

Other 0 2 10

Total revenue 1,272 2,330 3,585

Operating profit 636 1,218 1,776


Baidu is a company offering Chinese-language internet search services. It is one of only two entries in our top 30 based in China, the other being the state TV broadcaster CCTV. This means Baidu has the distinction of being the only privately-owned company operating out of the People’s Republic of China to make the list. Formed in 2000 as a search engine for other sites such as Sohu and Sina, it soon became a website brand in its own right and floated on the NASDAQ exchange in 2005 – where it has been so successful that at time of writing it is in the NASDAQ-100.

Its offering is in many ways similar to that of Google: its principal property, the baidu.com website, has a simple, clean appearance - its homepage consists of a search box in the middle of the page on a white background, with the Baidu logo above the box. Users can search the web, images, news, videos and use various tools such as Baidu Map, Baidu Space (social networking), Baidu Encyclopedia, Baidu Baike (a Wikipedia analogue), and Baidu Zhidao (a question answering service) amongst many others.

Baidu has done exceptionally well in its homeland and


US$3,575m

Media ranking:

Media owned:

28

Internet


websites. Its largest foreign interest is its ownership of Prisma Média, France’s second-largest magazine publisher. In 2012, one notable event was the closure of Financial Times Deutschland, which ceased publication in December of that year.

Foundations (Bertelsmann Stiftung, Reinhard Mohn Stiftung, BVG-Stiftung) set up by the Mohn family hold 80.9% of Bertelsmann shares, with the remaining 19.1% held by the family. BVG controls all voting rights at the Annual General Meetings and is made up of Bertelsmann executives and Mohn family members.

Group revenues in fiscal 2012 rose 4.5% to €16,065 million, a healthy rise largely attributable to a successful year in its TV production operations, although the German TV business was also strong. Bertelsmann reported an operating EBIT of €1,735 million for the five core divisions (down from the previous year’s €1,755 million).

Media properties

Magazines (Gruner + Jahr, 74.9%) Operates in over 30 countries with over 200 publications, including GEO, National Geographic and Gala.

Newspapers (Gruner + Jahr, 74.9%) Germany – Chemnitzer Morgenpost, Dresdner Morgenpost, Morgenpost AM Sonntag and Sächsische Zeitung

Television (RTL Group, 75.1%) Operates in eight countries with 43 channels, including RTL Television and M6.

Radio (RTL Group, 75.1%) Operates in six countries with over 30 stations, including RTL Radio.

Internet Germany/Europe Websites for corresponding newspapers, magazines, TV channels and radio stations, including rtl.de and sz-online.de.

Bertelsmann

Bertelsmann is an international media company with five core divisions encompassing television (RTL Group), book publishing (Random House), magazine publishing (Gruner + Jahr), marketing and supply chain services (Arvato), and print services (Be Printers). Only two of these divisions – RTL Group and Gruner + Jahr – count towards our definition of media revenue.

Having sold a 17% stake during 2013 in order to finance acquisitions, Bertelsmann now owns a 75.1% stake in the publicly listed RTL Group, a European entertainment company which, in 2012, contributed 37.4% of Bertelsmann’s revenues. Based in Luxembourg, RTL has interests in 53 television channels and 28 radio stations in Germany, France, Belgium, the Netherlands, Luxembourg, Spain, Hungary, Croatia, India and Russia. In addition, RTL Group’s content production arm, Fremantle Media, is one of the largest international producers outside of the US. Channels recently launched under the RTL umbrella include RTL Nitro in Germany and 6ter in France, both started in 2012, a year in which RTL launched more new channels than ever before.

Bertelsmann owns a 74.9% stake in Gruner + Jahr (the remaining 25.1% is owned by the Jahr family), a European magazine publisher. Operating in 30 countries, Gruner + Jahr publishes over 500 magazines, newspapers and


US$10,554m

Media ranking:

Media owned:

9

Television

MagazinesRadio

NewspapersInternet


Bertelsmann

€ million 2009 2010 2011 2012

Media revenue

Television (RTL Group) 5,410 5,591 5,814 6,002

Magazine & newspaper publishing (G+J) 2,508 2,259 2,287 2,218

Total media revenue 7,918 7,850 8,101 8,220

Non-media revenue 7,446 7,215 7,267 7,845

Total revenue 15,364 15,065 15,368 16,065

Operating EBIT by division

RTL Group 793 1,102 1,121 1,065

Random House 137 173 185 325

Gruner + Jahr 203 260 233 168

Arvato 345 347 269 241

Direct Group 28 - - -

Be Printers - - 72 60

Other/eliminations -82 -57 -125 -124

Operating EBIT 1,424 1,825 1,755 1,735

US$ million 2009 2010 2011 2012

Media revenue

Television (RTL Group) 6,946 7,179 7,465 7,706

Magazine & newspaper publishing (G+J) 3,220 2,900 2,936 2,848



Total revenue 19,727 19,343 19,732 20,627

Operating EBIT by division

RTL Group 1,018 1,415 1,439 1,367

Random House 176 222 238 417

Gruner + Jahr 261 334 299 216

Arvato 443 446 345 309

Direct Group 36 - - -

Be Printers - - 92 77

Other/eliminations - - -160 -159

Operating EBIT 1,934 2,416 2,321 2,310



film channels (£8.99 a month), 24-hour access to its sports channels (£9.99), and monthly subscriptions to a package of ten Sky entertainment channels including Fox and Sky1 (£4.99 a month). In addition, BSkyB provides broadband and telephony products in the home via DSL and fibre.

BSkyB’s ownership of sports rights, including the FA Premier League, the UEFA Champions League, the Heineken Cup, English cricket and the Ryder Cup, is a key driver of the company’s success. In July 2011 BSkyB added to its pool of sports rights by securing the live rights to Formula One motor racing in a seven-year deal running from 2012 until 2018.

For the year ended 30 June 2013, total revenue increased by 6.5% to £7,235 million. This increased revenue in conjunction with a focus on efficiency resulted in an operating profit of £1,291 million and ARPU of £577 (an increase of 5.3%).

Media properties

Television UK/Ireland Sky provides over 26 branded channels including Sky Atlantic, Sky Arts, Sky News, and multiple Sky Sports and Movies channels

Internet

UK/Ireland Sky.com

BSkyB

As well as being the leading pay-television provider in the UK and Ireland, BSkyB is also the fastest-growing provider of home communications services in the UK. As of 30 June 2013, the company had 11.2 million customers consuming 31.6 million paid-for products (an increase from 2012, at which point it had attracted 10.6 million customers consuming 28.4 million products).

Sky retails pay-TV services to residential customers in SD, HD and 3D via satellite, on demand with Anytime+ and on the move with Sky Go, a product created with the merger and rebranding of Sky Player and Sky Mobile TV in July 2011, and which enables customers to watch TV on their laptops, PCs, smartphones and tablets. Apps for Apple iOS operating systems as well as Android are also available. Sky Go is free to Sky TV subscribers, although Sky Go Extra is available for a monthly fee. This product, launched in January 2013, enables up to four users to download content to their laptop, tablet, or smartphone to view offline. NOW TV is a separate internet TV service that offers three products: monthly subscriptions to Sky’s


US$10,751m

Media ranking:

Media owned:

8

Television


BSkyB

£ million 2010 2011 2012 2013

Media revenue

Retail subscription 4,761 5,471 5,593 5,951

Wholesale subscription 238 323 351 396

Advertising 319 458 440 440


Non-media revenue 594 345 407 448

Total revenue 5,912 6,597 6,791 7,235

Total operating profit 1,113 2,073 1,243 1,291

US$ million 2010 2011 2012 2013

Media revenue

Retail subscription 7,542 8,667 8,860 9,427

Wholesale subscription 377 512 556 627

Advertising 505 726 697 697



Total revenue 9,365 10,450 10,758 11,461




CBS Radio’s 126 radio stations reach over 72 million listeners a week across 27 regional markets in America, while CBS Outdoor owns an enormous number of outdoor properties across the US and worldwide, generating revenues of over US$2 billion a year.

The company owns book publisher Simon & Schuster, and also publishes Watch! magazine, which is mostly an aspirational lifestyle glossy featuring photoshoots of a number of CBS stars visiting exotic locations. It targets women aged 35-55 and has a total circulation of around 235,000.

Media properties

Television

USA CBS Television Network CBS Television Stations (29 stations including WCBS-TV, KSTW-TV and WJZ-TV) CBS Sports Network Showtime TVGN CW Network (50%)

Outdoor

USA/International CBS Outdoor (over 400,000 sites in the US alone; also operates in Canada, South America, the UK, Ireland, France, Italy, the Netherlands, Spain and China)

Radio

USA 126 radio stations

Magazines

USA Watch! Internet

USA/International CBS Interactive (includes CNET, CBS.com, CBSNews.com, CBSSports.com, GameSpot, TV.com and Last.fm)

CBS Corporation

CBS has one of the widest-ranging portfolios of media properties of all the companies on our list – it is active in TV broadcasting and production, outdoor advertising, radio, online content and licensing, and book and magazine publishing. The company’s ordinary non-voting stock is traded on the NYSE, although 79% of the voting stock is owned by the Redstone family’s National Amusements Inc.

CBS’s TV operations are split between several separate divisions, including CBS Television Network, the CW Network, CBS Television Stations, CBS Entertainment, CBS News and CBS Sports. The company has over 200 TV stations and affiliates nationwide in the US, and reaches around 130 million people a week in primetime with hit shows such as NCIS and The Big Bang Theory. The CW Network was formed as a joint venture with Warner Bros. Entertainment in 2006; it is America’s fifth broadcast network, and targets young adult viewers, especially women in the 18-34 age group. CBS Television Stations, meanwhile, owns and operates 29 stations, including 16 that are part of the CBS Television Network, eight affiliates of the CW Network, three independent stations and two MyNetworkTV affiliates.

Showtime Networks Inc. is a wholly-owned subsidiary of CBS. It owns and operates three premium television networks - Showtime, The Movie Channel and Flix - and their associated brands.


US$10,380m

Media ranking:

Media owned:

10

Television

RadioOutdoor

MagazinesInternet


CBS Corporation

US$ million 2010 2011 2012 2013

Media revenue

Advertising 9,153 8,399 8,459 8,803

Affiliate and subscription fees 1,598 1,762 1,921 2,221



Total revenue 14,060 13,637 14,089 15,284

Operating profit by division

Entertainment 731 1,231 1,381 1,593

Cable Networks 547 684 785 877

Publishing 65 83 80 106

Local Broadcasting 165 750 848 807

Outdoor 40 197 209 243

Eliminations/other 268 -326 -320 -367




company Baidu (number 26 on this list, using full-year 2012 figures for comparison) may have overtaken CCTV in terms of ad revenue for the first time in 2013, and CCTV does not want to lose face. But of course, it is impossible to be sure (which, one assumes, is the whole point).

In the 2012 auction for 2013, CCTV raised RMB 15.9 billion, up 11% year-on-year. The proportion of all ad slots sold at the day-long auction this year was something like 30%, so in fact CCTV’s media revenue is higher than this; in 2012, CCTV’s total advertising revenue came in at just under RMB 27 billion, putting it in 21st place in our ranking.

In a statement on the most recent auction, the CCTV Advertising Centre did give a little more information about who was spending, though. The top-spending sectors this time round were Food & Drink, Home Appliances and Automobiles. Also growing quickly were Tourism and Healthcare. Major foreign advertisers included Nike, which paid RMB 46 million for the exclusive titling rights for Brazil Action, CCTV’s forthcoming programme covering the 2014 FIFA World Cup.

Media properties

Television China 22 free-to-air channels (CCTV 1 to 15, plus international channels and an HD channel) 23 pay-TV channels

International 10 channels: CCTV-娱乐 (Entertainment), CCTV-戏曲 (Chinese Opera International), CCTV-13, CCTV-4 (in Chinese), CCTV-NEWS (in English), CCTV-9 Documentary (in English), CCTV-Français, CCTV-Español, CCTV-Arabic, and CCTV-Pусский.

CCTV

RMB million 2012

Media revenue

Advertising 26,976

Total media revenue 26,976

US$ million 2012

Media revenue

Advertising 4,335

Total media revenue 4,335


China Central Television, founded in 1958, is the state TV broadcaster of the People’s Republic of China. It falls under the aegis of the State Administration of Radio, Film, and Television, which in turn answers to the State Council of the People’s Republic of China, the latter providing a vice minister to be the broadcaster’s chairman. Regional TV stations run by local governments must each reserve up to two channels for CCTV.

CCTV broadcasts 22 free-to-air channels including the flagship CCTV-1, which shows general programming, along with channels specialising in different types of programming such as financial (CCTV-2), news (CCTV-13), sport (CCTV-5/CCTV-5+), and Chinese Opera (CCTV-11). It also transmits a number of international channels in the English, French, Spanish, Russian and Arabic languages. It also offers 23 pay-TV channels focusing on areas such as music, education, fashion, entertainment and football.

The broadcaster’s annual auction of its prime-time slots for the following year happens each autumn and is closely watched as a barometer of China’s economy. 2013 was the 20th year CCTV had sold its prime-time ads in this way, but for the first time it did not release figures for total revenue raised. Although it has played down this decision, some have speculated that the reason for this is that online


US$4,335m

Media ranking:

Media owned:

23

Television


Clear Channel Communications

Assets consist of billboards, street furniture, transit displays, airport displays, and mall displays.

CCC’s International outdoor business segment comprises of 630,000 displays across 40 countries in Asia, Australia and Europe, with approximately 33% of the revenue being derived from France and the UK (for year ended December 31 2012). As of 2012, Clear Channel counts its Latin American outdoor operations as part of its International segment, whereas before it was counted in the Americas segment.

For the year 2012, CCC increased its total revenue by 1.4% to US$6.25 billion, and its total operating income by 1.5% to US$1.07 billion, and outdoor revenues declined slightly.

CCC is a wholly owned subsidiary of CC Media Holdings (CCMH), a private-equity consortium set up by Bain Capital and Thomas H. Lee when they purchased CCC in 2008. Another subsidiary of CCMH, through its ownership of CCC, is CC Outdoor Holdings (CCOH). CCOH is listed on the New York Stock Exchange and CCC currently has 99% of the voting power.

Media properties

Radio USA: 840+ stations

Outdoor United States and Canada: Approximately 108,000 display structures International (28 countries): Approximately 650,000 display structures

US$ million 2010 2011 2012

Media revenue

Media and Entertainment 2,869 2,987 3,085

Americas outdoor 1,290 1,337 1,279

International outdoor 1,508 1,667 1,668


Non-media revenue 198 171 215

Total revenue 5,866 6,161 6,247

Operating income

Media and Entertainment 840 888 943

Americas outdoor 274 282 288

International outdoor 56 112 73

Other -305 -227 -234

Total operating income 865 1,055 1,070


Clear Channel Communications (CCC) is a global media and entertainment company. It divides its operations into three sectors: Media and Entertainment (also known as CCME), Americas outdoor advertising, and International outdoor advertising.

The CCME division includes radio broadcasting, online and mobile services and products, programme syndication, entertainment, traffic data distribution and music research services. As of December 31 2012, it owned 840 domestic radio stations servicing approximately 150 US markets and reaching around 110 million listeners every week. It also operates Premier Networks, a national radio network that produces, distributes or represents approximately 90 syndicated radio programmes and serves over 5,000 radio station affiliates.

Based on revenues, CCC is the largest outdoor advertising company in the Americas; it owns or operates approximately 125,000 display structures in the region.


US$6,032m

Media ranking:

Media owned:

15

OutdoorRadio


members of the brand, the latter hosting the top-rated Sunday Night Football.

In February 2014, Comcast announced that it had agreed to buy Time Warner Cable in a deal worth around US$45 billion; Comcast will pay approximately US$159 per share for its rival in an all-stock deal. Time Warner Cable is the second biggest supplier of cable television in the US, with around 11 million subscribers. However, US regulators will need to look closely at the potential impact on consumers.

In our key financial data, the figures we give for NBCUniversal for 2010 and 2011 are pro forma combined estimates from Comcast. We include all of the revenue accruing to NBCUniversal in calculating Comcast’s media revenue, but in the operating profit figures, split by segment, we have had to include a large adjustment figure under Eliminations/Other in order that the total figures reflect the consolidated results of the whole group. Interested readers are advised to consult Comcast’s annual reports for further explanation of how its own figures were derived.

Media properties

TV USA Comcast Cable NBCUniversal

International 60+ international channels, including E!, Golf Channel and Syfy

Internet USA/International Various websites affiliated to channels, including nbc.com and msnlatino.telemundo.com Hulu (33%)

Comcast

Global media and communications company Comcast has two main businesses: Comcast Cable, a leading telecoms provider that offers video, phone and high-speed internet services to almost 22 million residential and business customers in the US; and NBCUniversal, which operates news, entertainment and sports cable networks and the NBC and Telemundo broadcast networks. NBCUniversal also has Filmed Entertainment and Theme Parks divisions, which are significant contributors to the overall business, but for the purposes of media revenue, we only include NBCUniversal’s Cable Networks and Broadcast TV divisions, as well as advertising revenues earned by Comcast Cable.

Comcast now owns 100% of NBCUniversal. In March 2013, it bought GE’s 49% stake in the joint venture for approximately US$16.7 billion; following a deal with GE in January 2011, Comcast initially acquired a majority 51% stake in what was then known as NBC Universal.

The majority (almost 88% in 2012) of Comcast’s media revenue comes from NBCUniversal’s Cable Networks and Broadcast TV divisions. The Cable Networks division spans 15 national cable networks, 13 regional sports and news networks, and over 60 international TV channels. The Broadcast TV division, meanwhile, runs the national TV network NBC and the Spanish-language network Telemundo, which reaches 94% of Hispanic viewers in the US; it also includes the NBC and Telemundo local broadcast TV stations. NBC News and NBC Sports are important


US$18,468m

Media ranking:

Media owned:

5

Television


Comcast

US$ million 2010 2011 2012

Media revenue

Comcast Cable

Advertising 2,020 2,005 2,287

NBCUniversal

Cable Networks (distribution/advertising) 7,049 7,749 8,027

Broadcast TV 6,888 6,399 8,154



Total revenue 37,937 55,842 62,570


Comcast Cable

Cable Communications 14,302 15,288 16,255

NBCUniversal

Cable Networks 3,166 3,337 3,292

Broadcast TV 118 123 369

Filmed Entertainment 230 24 79

Theme Parks 591 867 953

Eliminations/Other -10,427 -8,918 -8,769

Total operating profit 7,980 10,721 12,179


Note: revenue figures for NBCUniversal are pro forma combined for 2010 and 2011


the majority of what we estimate to be Cox Enterprises’ US$11.4 billion media revenue that year. However, Cox Media Group also contributed a not insignificant US$1.8 billion through its diverse media operations: 14 broadcast TV stations and one local cable channel; 57 radio stations, which reach around 14 million listeners every week; and eight daily newspapers and 16 non-daily titles. It also runs websites for many of its media properties.

Media properties

Television

USA 15 TV stations including KTVU-TV, WPXI-TV, WSB-TV and WFTV-TV Newspapers

USA 24 titles including The Palm Beach Post and the Dayton Daily News

Radio

USA 57 radio stations

Internet

USA Numerous websites for Cox Media’s channels and stations Autotrader.com Kudzu.com Rare.us Valpak.com Savings.com

Cox Enterprises

US$ million 2009 2010 2011 2012

Media revenue

Cox Communications 9,000 9,100 9,400 9,600

Cox Media Group 1,800 1,800 1,700 1,800



Total revenue 14,300 14,600 14,700 15,300


Cox Enterprises is a huge company spanning the communications, media and automotive sectors. It is privately owned by the Cox family, and is therefore not obliged to release much financial data; it does not choose to give out operating profit figures, nor indeed detailed financial data. The figures given below are the best revenue figures currently available.

The company has four main businesses: Cox Communications, which provides digital video, internet and telephone services; Manheim, the world’s leading provider of vehicle remarketing services; AutoTrader Group, which includes the autotrader.com website; and Cox Media Group, the company’s integrated broadcasting, publishing, direct marketing and digital media division.

With around 6 million subscribers, Cox Communications is the third-largest cable TV and broadband services provider in the US. Revenues at this division increased by 2.1% year-on-year to US$9.6 billion in 2012, accounting for


US$11,400m

Media ranking:

Media owned:

7

TelevisionNewspapersRadioInternet


DirecTV Group

DirecTV is the exclusive rights holder to NFL Sunday Ticket in the US and most Latin American markets. In addition, DirecTV offers bonus coverage of tennis grand slam events and golf majors not available on any of the other sports channels.

Total revenues at DirecTV increased by 6.8% to US$31.75 billion in 2013. Growth of nearly 10% at DirecTV Latin America was largely thanks to the addition of 1.2 million new subscribers over the course of the year, while a 6% rise in revenues at DirecTV US was driven by an increase in average monthly revenue per subscriber (ARPU).

ARPU rose by 5.4% year-on-year to US$102.18 in Q4 2013 in the US, but fell 9.8% to US$51.64 in the Latin American division (although this was simply an artefact of a marked move in exchange rates). ARPU growth in the US was thanks to a number of factors, including price increases on programming packages and higher advanced service fees.

Media properties

TV USA DirecTV US (100%) Audience Network (100%) DirecTV Sports Networks (Root Sports - Pittsburgh, Bellevue and Denver) (100%) Game Show Network (42%) MLB Network (16.7%)

Latin America DirecTV Latin America (100%) PanAmericana (100%) Sky Brasil (93%) Sky Mexico (innova) (41%)

US$ million 2010 2011 2012 2013

Media revenue

DirecTV US 20,268 21,872 23,235 24,676

DirecTV Latin America 3,597 5,096 6,244 6,844

Sports networks, eliminations and others 237 258 261 234



Total revenue 24,102 27,226 29,740 31,754


DirecTV US 3,290 3,702 4,153 4,444

DirecTV Latin America 623 916 955 776

Sports networks, eliminations and others -2 26 -23 -70



DirecTV is one of the leading providers of digital satellite TV services in the USA and Latin America. Around 20.3 million customers subscribed to DirecTV’s digital TV services in the US alone by the end of 2013, with a further 17.6 million subscribers spread around the Latin American region. It is also the US’s second-largest distributor of multichannel video programming.

DirecTV Latin America owns approximately 93% of Sky Brasil, 41% of Sky Mexico and the full 100% of PanAmericana, which covers most of the remaining countries in the region. By the end of December 2013, Sky Mexico had around 6.0 million subscribers, while PanAmericana and Sky Brasil had 11.6 million subscribers between them.

The company also operates a number of its own channels, most notably the three Root Sports networks under the umbrella of DirecTV Sports Networks, and the general entertainment channel Audience Network. It also has stakes in the casino and gaming channel Game Show Network, and sports channel MLB Network.


US$29,740m

Media ranking:

Media owned:

2

Television


the first time, and Eurosport will contribute its revenues and not just a share of its profits after Discovery becomes its majority owner.

Discovery’s networks and their associated websites form the vast majority of its businesses, but it also has an education division, which provides online and hard-copy learning materials to schools. This division contributed 2% of Discovery’s revenues in 2012 and 2013.

Media properties

Television USA: Discovery Channel TLC Animal Planet Investigation Discovery Science Military Channel Destination America Discovery Fit & Health Velocity OWN (50%) The Hub (50%) 3net (33%)

International: Animal Planet Discovery Channel Discovery en Espanol Discovery Familia Discovery History Discovery Home & Health Discovery Kids Discovery Science Discovery World DMAX Investigation Discovery Quest Shed TLC, Real Time and Travel & Living Turbo Eurosport (51%)

Denmark Kanal 4 Kanal5 6’eren 7’eren

Finland TV5 Kutonen

Discovery Communications

Discovery Communications is an international broadcaster specialising in non-fiction television programmes. It owns nine television networks in the US, plus three it has minority stakes in, and 14 international networks that between them reach more than 200 countries across the world. In April 2013 it took its first step beyond non-fiction broadcasting by purchasing several mainstream television channels in the Nordic region, and taking a minority stake in a pan-regional sport channel.

Discovery generated most of its revenues by selling advertising and collecting distribution fees. The advertising revenues depend directly on the viewing figures for Discovery’s programmes. The distribution fees – which are paid by cable and satellite operators for the right to provide Discovery’s networks to their subscribers – depend more on the networks’ long-term contribution to the value of cable and satellite packages. Discovery’s strategy for growth is to invest in programming for existing networks, and launch or acquire new networks.

Discovery divides its networks into those that broadcast in the US, and those that broadcast everywhere else – its international networks. The US networks generate most of the group’s revenue (61% in 2012), and even more of its operating profit (86%).

In April 2013 Discovery acquired the SBS Nordic operations from Germany broadcasting group ProSiebenSat.1 for US$1.7 billion. SBS Nordic consisted of 12 leading television channels – together with several prominent radio stations and websites – in Denmark, Finland, Norway and Sweden. Discovery bundled them together with its existing channels in these markets to form SBS Discovery Media, one of the largest commercial broadcasters in the Nordic region.

At the same time Discovery bought a 20% stake in Eurosport, a sport channel that broadcasts in 20 languages to 54 countries, primarily in Europe but also in North Africa, the Middle East and Asia Pacific. In January 2014 Discovery agreed to become a majority shareholder in Eurosport, increasing its shareholding to 51%.

These purchases have substantially increased the importance of the international networks to Discovery. The new Nordic channels helped increase the contribution of international networks from 36% of revenues in 2012 to 45% in 2013. The proportion will be even higher in 2014, when the new Nordic channels will contribute to the full year for


US$4,385m

Media ranking:

22


Finland The Voice Iskelmä Radio City Radio Pooki

Norway Radio 1 The Voice Radio Norge

Sweden Mix Megapol Rockklassiker The Voice Radio 107.5 Vinyl 107

Discovery Communications

Norway TVNorge FEM MAX VOX Sweden Kanal 5 Kanal 9

Radio

Denmark The Voice NOVA Radio 100 myRock Radio Soft POP FM (40%)

US$ million 2010 2011 2012 2013

Media revenue

US Networks 2,363 2,619 2,748 2,952

International Networks 1,251 1,455 1,637 2,474


Non-media revenue

Education 86 95 105 114

Corporate and eliminations 6 -1 -3 -5

Total non-media revenue 92 94 102 109

Total revenue 3,706 4,168 4,487 5,535


US Networks 1,334 1,575 1,597 -

Advertising 462 557 662 -

Education 15 22 25 -

Corporate and eliminations -434 -351 -429 -

Total operating income 1,377 1,803 1,855 -



Also helping advertising revenue grow by an impressive 63% in 2013 was an increase in revenue from News Feed ads, both on mobile and desktop. This type of ad placement has a higher price per ad compared to others as it leads to higher levels of engagement. Added to this was a 22% increase in the number of daily active users year-on-year to December 2013, one factor attracting a higher number of advertisers to actively market on Facebook. Overall, the average price per ad rose by 36% year-on-year in 2013, and the total number of ads by 20%.

Facebook was a privately owned company until February 1 2012, when it was listed on the NASDAQ. Mark Zuckerberg is the largest shareholder (with an approximate 28% stake in the company), and a number of the original founders and employees have relatively smaller shares. The remaining shares (approximately 47%) are owned by institutional investors.

In August 2012, Facebook spent US$521 million acquiring Instagram, which built a mobile phone-based photo-sharing service. At time of writing (February 2014), this has just been overshadowed by the company’s announcement that it is spending US$19 billion buying messaging app WhatsApp.

Media properties

Internet Facebook.com as well Facebook apps for mobile and tablet devices Instagram

Facebook

US$ million 2010 2011 2012 2013

Media revenue

Advertising 1,868 3,154 4,279 6,986



Total revenue 1,974 3,711 5,089 7,872

Net income - 1,000 53 1,500


Facebook is a social media platform that has changed the way people interact and communicate with one another. Launched in 2004 by Mark Zuckerberg and his college roommates, the website was initially exclusive to Harvard University. It soon spread to other educational institutions around the United States, then Canada, and by late 2006 it was open to anyone over the age of thirteen with an email address.

Advertising revenue is generated through displaying ad products on the Facebook website or mobile app and third-party affiliated websites or mobile apps. Marketers pay for ad products either directly or through advertising agencies, based on the number of impressions delivered or the number of clicks made by users. For the years 2011, 2012 and 2013, 85%, 84% and 89% of Facebook’s revenue was generated from third parties advertising on the website. The uptick in 2013 points to the initial success of the company’s drive to improve its mobile advertising offering. The company estimates that mobile ad revenue constituted around 45% of total ad revenue in 2013, up from just 11% in 2012, and zero in 2011.


$4,279m

Media ranking:

Media owned:

24

Internet


programmes, including entertainment, news, sport, drama and film. Its programmes are particularly popular with young adults.

In addition to its terrestrial channel, the Fuji Television Network operates three communication satellite (CS) channels - Fuji TV ONE (sports and information), Fuji TV TWO (general entertainment) and Fuji TV NEXT (HD channel) - and one broadcasting satellite (BS) station, BS Fuji.

Digital terrestrial broadcasts were launched in 2003 in Tokyo, Osaka and Nagoya, with all the main broadcasters, including Fuji TV, participating. The group also owns 8.3% of SKY PerfecTV!, a digital CS pay-TV platform; Fuji TV’s three CS channels are available on this service. By the end of January 2014, SKY PerfecTV! had attracted around 3,696,000 subscribers, a drop of 100,000 or so year-on-year.

Nippon Broadcasting System (or JOLF) is the leading radio station in the Tokyo metropolitan area. Through the National Radio Network, programmes are distributed to 39 affiliated stations across Japan, with a reach of nearly 100 million people.

Media properties

Television Japan Fuji Television Network Fuji Satellite Broadcasting

Radio Japan Nippon Broadcasting System

Fuji Media Holdings

Fuji Media Holdings is one of Japan’s leading media companies, its core operation being the Fuji Television Network, which began broadcasting in 1959. It is part of the Broadcasting division, which also includes its satellite television operations and Nippon Broadcasting System radio business. In the fiscal year ended March 2013, the division generated ¥352 billion, equivalent to 56% of total group revenue. Other divisions include Production, Video & Music, Life Information (TV and catalogue shopping) and Urban Development (office building leasing and real estate). There is also an Advertising division, but – a little confusingly, perhaps – we don’t include this in our calculation of media revenue because it covers Fuji’s advertising and media agency businesses, which handle advertising revenue for others rather than generate it themselves. Our media revenue figure is therefore just the net sales of the Broadcasting segment.

The Fuji Television Network is based in Tokyo but reaches 98% of the population through the Fuji Network System (FNS), which comprises 28 local affiliated stations. Fuji TV is a general mainstream channel and broadcasts a variety of


US$4,415m

Media ranking:

Media owned:

21

TelevisionRadio


Fuji Media Holdings

¥ million 2010 2011 2012 2013

Media revenue

Broadcasting 348,076 347,456 355,215 352,088



Total revenue 583,843 589,671 593,645 632,029


Broadcasting 9,992 22,145 27,166 25,342

Production 1,517 1,826 2,259 2,940

Video & Music 427 2,768 2,583 2,572

Life Information -139 472 1,440 1,072

Advertising -291 -80 135 82

Urban Development - - - 5,444

Other -29 685 769 741

Eliminations -2,198 -1,466 -1,151 -586


US$ million 2010 2011 2012 2013

Media revenue

Broadcasting 4,364 4,357 4,454 4,415



Total revenue 7,321 7,394 7,444 7,925


Broadcasting 125 278 341 318

Production 19 23 28 37

Video & Music 5 35 32 32

Life Information -2 6 18 13

Advertising -4 -1 2 1

Urban Development - - - 68

Other 0 9 10 9

Eliminations -28 -18 -14 -7

Total operating profit 116 330 416 472

Key financial data Year end: 31 March


The Digital business segment includes CareerBuilder, as well as Pointroll, ShopLocal and Reviewed.com. CareerBuilder is the largest online job site in North America, with the most traffic (24 million unique visitors per month) and revenue.

Through its Broadcasting segment, Gannett owns and operates 23 television stations with affiliated digital platform sites covering nearly 21 million households. The segment also includes Captivate Network, a national network that delivers programming and video advertising on screens located in elevators and hotel lobbies. In 2012 the Broadcasting segment enjoyed an operating income of approximately US$444 million, an increase of 47% compared to 2011. These results were primarily driven by a record level of political adverting, reaching US$150 million for the year, although the 2012 Olympics helped too.

In December 2013, Gannett finalised its acquisition of Belo Corp. for US$13.75 per share in cash, in addition to taking on US$715 million of debt, for a total transaction value of US$2.2 billion. This acquisition has almost doubled the company’s broadcast portfolio, meaning Gannett now reaches around a third of all US TV households.

Media properties

Print media USA 82 daily publications (including USA TODAY) and over 480 non-daily publications

UK 17 daily publications and 200 weekly publications

Television USA Owns and operates 23 television stations Internet Over 130 websites for the US and UK publications 21 websites for the television channels www.careerbuilder.com www.pointroll.com www.shoplocal.com www.reviewed.com

Gannett

Headquartered in Virginia, Gannett was founded by Frank E. Gannett and associates in 1906; its shares are listed on the New York Stock Exchange. It is an international media and marketing solutions company. 90% of its revenues are generated in the US; the remainder comes from the company’s British interests. Gannett has three principal business divisions: Publishing, Broadcasting and Digital.

At the end of 2012, Gannett operated 82 US daily publications, including USA TODAY, and over 480 non-daily local publications. These products reach 11.6 million readers every weekday and 12 million readers every Sunday. The company’s websites reach 52 million unique visitors each month.

Newsquest, the UK-based unit of Gannett, produces 17 daily paid-for publications and more than 200 weekly publications, magazines and trade publications. Newsquest revenues for 2012 were approximately US$484 million, down 5% in local currency, reflecting the difficult economic climate and the ongoing decline of local press. While print advertising revenue declined, digital ad revenues grew by 10% in local currency. Ad revenue from online websites affiliated with the publications is the largest component of Newsquest’s revenue, comprising approximately 69% versus the 23% from circulation. Printing for third-party newspaper publishers accounts for the remainder.


US$5,098m

Media ranking:

Media owned:

17

Newspapers

TelevisionMagazines

Internet


Gannett

US$ million 2010 2011 2012

Media revenue

Publishing advertising 2,711 2,511 2,356

Publishing circulation 1,087 1,064 1,117

Broadcasting 770 722 906

Digital 618 686 719


Non-media revenue

Commercial printing and other 254 256 255

Total revenue 5,440 5,239 5,353

Operating income

Publishing 648 478 369

Broadcasting 329 302 444

Digital 83 125 42

Corporate -61 -74 -64

Total operating income 1,000 831 790


* Numbers do not sum due to rounding


The Direção Geral de Comercialização (DGC) is responsible for Globo’s advertising. In TV commercial breaks alone, more than 16 million advertisements are aired per year. In 2012, Globo generated approximately 71% of its revenue through advertising. The sale of advertising slots in free and pay-TV, as well as product placement and merchandising (which are common in Brazilian telenovelas) are the main components of this advertising revenue. Additional sources of advertising income include the sale of print adverts in the company’s publications and of online ads on the group’s websites. Globo is expected to do very well from advertising due to the upcoming FIFA World Cup in 2014 and the Olympic Games in 2016.

Globo is a privately held company. The Marinho family owns and controls the group, and has done so since its inception in 1925.

Media properties

Newpapers Six Brazilian newspapers including O Globo and Expresso

Magazines Over 25 magazines including Editora Globo

Television Over 200 television channels (including affiliates) including Rede Globo and Globo Internacional

Radio Over 70 radio stations including Rádio Globo and Rádio CBN

Internet Over 27 internet sites including www.globo.com

Globo

Globo Communicação e Participações, also known as Globo, is Brazil’s largest media conglomerate. It started in 1925 with the newspaper O Globo, and has expanded to include TV, radio, newspapers, magazines, books, websites, and film production.

Whilst the organisation started with newspapers, it is TV that is now the largest division within Globo. Its public TV network, which operates under the name of Rede Globo and is also known as TV Globo, is the largest station in Latin America, and one of the largest in the world. On air since 1965, TV Globo has been marred with controversy surrounding its involvement in Latin American politics. At present, TV Globo covers 98.4% of Brazil’s territory and 99.6% of the population. Slightly less than 90% of the network’s programming is produced in-house; this equates to close to 2,500 hours of telenovelas and factual programmes each year.

In addition, Globo operates cable television and pay-TV services. In fact, Globosat, a wholly-owned subsidiary of Globo, is the most popular pay-TV service in Latin America, having attracted over 9 million subscribers.


US$4,578m

Media ranking:

Media owned:

20

Television

MagazinesNewspapers

InternetRadio


Globo

BRL million 2009 2010 2011 2012

Media revenue

Advertising 6,048 7,488 7,920 8,946



Total revenue 8,400 10,400 11,000 12,600

EBITDA 1,500 2,300 2,800 2,900

US$ million 2009 2010 2011 2012

Media revenue

Advertising 3,095 3,832 4,053 4,578


Non-media revenue 1,203.59 1,490 1,576 1,870

Total revenue 4,299 5,322 5,629 6,448

EBITDA 768 1,177 1,433 1,484



network, developed in-house, in the hope that it might give the company a strong foothold in the social networking sphere. Although it was a little slow to take off, the number of active users worldwide has more than doubled from 235 million at the end of December 2012 to 540 million by the end of October 2013. On the other hand, when trying to get a foothold in the smartphone world, Google took the other route. It owns the smartphone operating system Android – originally developed by a separate company of the same name, which Google backed financially and then bought out in 2005. The company also acquired Motorola Mobility for US$12.5 billion in May 2012. Less than two years on, however, it agreed In January 2014 to sell the Motorola Mobility smartphone business to Chinese computer maker Lenova for US$2.9 billion; as part of the deal, Google will keep the majority of Motorola’s lucrative patents, which include one for Android software.

Total advertising revenue increased from US$43.7 billion in 2012 to US$50.6 billion in 2013, with operating profits up 9.5% over the same period to US$14.0 billion.

Media properties

Internet International Around 200 country-specific Google Search domains Google+ YouTube

Google

US$ million 2010 2011 2012 2013*

Media revenue

Google websites ad revenue 19,444 26,145 31,221 37,453

Google network ad revenue 8,792 10,386 12,465 13,125



Total revenue 29,321 37,905 50,175 59,856



Once again, Google tops our list, and by some margin. Its rise to dominance has been swift: in the first edition of our Top Thirty Global Media Owners report, released in 2007, Google was placed just 13th (ranked by 2005 media revenue).

Developer of the world-leading search engine, Google earns its revenues primarily through online search advertising. The AdWords program allows targeted advertising for businesses, while the third parties that make up the Google Network use the AdSense program to deliver user-relevant ads and generate more revenue. Meanwhile, Google Analytics provides detailed statistics about any given website’s traffic, which is very useful for marketers and is typical of Google’s integrated approach to its products. The company achieves this approach via a double strategy of in-house development and acquisition. For example, in June 2011, it launched its Google+ social


US$43,686m

Media ranking:

Media owned:

1

Internet

* unaudited


produced programmes (such as local news and weather), and first-run syndicated programmes. Each of the stations has an internet site which provides supplemental content.

The Entertainment & Syndication division includes Hearst’s cable network partnerships, as well as its production and syndication activities. In 2012, Hearst and Disney acquired NBC’s stake in A+E Networks to become equal partners in the cable entertainment company, which reached around 5.7 million primetime viewers in the US during the year. The group also has a 20% stake in sports network ESPN, which is controlled by Disney. It also broadcasts Cosmopolitan TV – a lifestyle channel for young women – in Canada and Spain.

Hearst’s Business Media division consists of several business information databases and services, operating in several categories: finance (Fitch Rating), health (including Fitch Health and First Databank), automotive (including Black Book) and other (including Hearst Electronics Group).

Media properties

Newspapers

USA 15 daily titles including: Houston Chronicle San Francisco Chronicle Albany Times Union San Antonio Express-News 34 weeklies Magazines USA 20 consumer magazines including Esquire, Seventeen and Elle UK 19 magazines including Elle and Cosmopolitan International Around 300 editions in over 80 countries Television USA Hearst Television stations: 13 ABC affiliates 10 NBC affiliates 2 CBS affiliates 2 CW affiliates 1 MyNetworkTV affiliate (KQCA) WMOR-TV A&E TV Networks (50%) ESPN (20%)

Hearst Corporation

The Hearst Corporation was founded in 1887 by William Randolph Hearst, when he inherited control of the San Francisco Examiner from his father. The company has grown and diversified over the years, and today Hearst has interests in newspaper, magazine and business publishing. It operates television and radio stations, is a partner in several cable ventures, and has a range of internet and new media activities. The Hearst Corporation is still owned by the Hearst family, but it is managed by a board of trustees.

As the Hearst Corporation is a private company, detailed financial information is not available. We estimate its media revenues at US$3.9 billion in 2012.

Hearst publishes 15 daily newspapers, including the Houston Chronicle and the Albany Times Union. But while Hearst’s newspaper and broadcasting assets are confined to their domestic market, the group sells magazines all over the world. Its 19 US consumer magazines include Cosmopolitan, Seventeen and Esquire, but its subsidiary Hearst Magazines UK publishes 24 titles in the UK, while Hearst Magazines International publishes about 300 editions in over 80 countries.

In 2009, the former Hearst-Argyle Television became Hearst Television when Hearst announced it would buy up the stock it did not already own, turning the TV business into a fully-owned subsidiary. Hearst Television owns 26 television stations and manages another three. It also manages two local radio stations in the US: WBAL-AM and WIYY-FM, both of which are in Baltimore.

Of the 29 TV stations, 13 are affiliated to the ABC network (making Hearst the largest ABC affiliate group), 10 to NBC, two each to CBS and the CW network, one to MNT, and one is an independent; together, they reach about 18% of US households. Content on the stations is a combination of programmes produced by the affiliate networks, locally-


US$3,900m

Media ranking:

Media owned:

26

Newspapers

TelevisionMagazines

RadioInternet


Internet

USA Seattlepi.com 29 internet sites for the TV channels 17 websites for magazine brands Answerology.com Delish.com Realbeauty.com UK 20 websites including cosmopolitan.co.uk, elleuk.com, digitalspy, handbag, netdoctor, sugarscape and triathletesworld

Hearst Corporation

Canada Cosmopolitan TV Spain Cosmopolitan TV Radio USA WBAL WIYY

US$ million 2010 2011 2012 2013

Media revenue (estimated)

3,850 3,800 3,900 4,000


Non-media revenue

Total revenue 3,850 3,800 3,900 4,000



Berlin and Madrid. The group’s billboard activities are even more concentrated in Europe than its street furniture activities: 95% of its displays (which number over 210,000) are in Europe, including 21% in France and 16% in the UK.

The transport division has contracts with 152 airports in 18 countries, including some of the busiest in the world: Charles-de-Gaulle and Orly in Paris, Heathrow in London, JFK and La Guardia in New York, Frankfurt, Beijing and Shanghai. JCDecaux estimates that it accounts for 27% of the global airport advertising market, making it the market leader. It also has contracts with 284 metro, train, bus and tram systems in Europe, Africa/Middle East, Asia Pacific and South America.

Media properties

Outdoor

Street furniture 434,743 advertising faces in 48 countries France: 105,774 UK: 26,393 Rest of Europe: 231,992 Asia Pacific: 34,726 North America: 13,780 Rest of world: 22,078

Transport 358,100 advertising panels 152 airports in 18 countries 284 advertising contracts in metros, trains, buses and trams

Billboard 210,009 advertising faces in 32 countries France: 44,685 UK: 33,386 Rest of Europe: 121,551 Asia Pacific: 304 North America: 14 Rest of world: 10,069

JCDecaux

JCDecaux is the world’s largest outdoor advertising company. Its businesses span the globe, but are concentrated in Europe. JCDecaux was founded in France in 1964 when its owner, the eponymous Jean-Claude Decaux, came up with idea of ‘street furniture’ – providing cities with free public structures, such as bus-shelters, public toilets and bike racks, in return for the right to display advertising on them. Street furniture is still the largest source of JCDecaux’s revenues (45% of total revenues in 2013), but it has diversified into billboards (38% of revenues) and transport advertising (18%). Across all types of display, JCDecaux has more than one million advertising panels in over 55 countries.

JCDecaux has over 400,000 street furniture displays across the world. At the end of 2012 84% of them were in Europe, including the 24% that are in France. This geographic focus has hindered the group’s ability to grow since the onset of the economic crisis in the Eurozone. In November 2013 it expanded into a much higher-growth region when it bought an 85% stake in Eumex, a street furniture group operating in Mexico, Guatemala, Costa Rica, El Salvador, Panama, The Dominican Republic, Colombia, Chile and Argentina, making JCDecaux the largest outdoor advertising company in Latin America.

JCDecaux’s billboards are generally located near major city and suburban commuter routes. The networks are in high-visibility locations in major cities such as Paris, London,


US$3,368m

Media ranking:

Media owned:

30

Outdoor


JCDecaux

€ million 2010 2011 2012 2013

Media revenue

Street Furniture 1,152 1,182 1,171 1,192

Transport 776 862 1,013 1,014

Billboard 423 419 439 470


EBIT (before impairment charges) 279 325 316 -

US$ million 2010 2011 2012 2013

Media revenue

Street Furniture 1,478 1,518 1,504 1,530

Transport 996 1,107 1,300 1,302

Billboard 543 538 564 603


EBIT (before impairment charges) 358 418 406 -



On 6 July 2012, Mediaset and Sky Italia reached an agreement on the allocation for the next two seasons of the Champions League and of the Europa League, which were previously acquired from UEFA separately. The agreement allows both of the operators to broadcast to their own television viewers, on their respective platforms. Mediaset Premium is offering all Champions League and Europa League matches for the 2013-14 season, while Italia 1 transmits free, on an exclusive basis, the ‘best’ Italian Wednesday match of the Champions League and the ‘best’ Thursday match of the Europa League.

Mediaset was founded in the 1970s by the former Italian Prime Minister Silvio Berlusconi. While his political commitments meant that he took steps to distance himself from the company’s management, Berlusconi still holds a 41% stake through his family-owned Fininvest. Furthermore, his son Pier is Vice-Chairman of Mediaset. The remaining stock is owned by institutional investors and freely traded on the Milan Stock Exchange.

Media properties

Television Italy Over 18 channels including Canale 5, Italia 1 and Rete 4, Boing, Cartoonito, Iris, La 5, Mediaset Extra, Mediaset Italia 2 and Tgcom24.

Spain MEC (41.22%) – 11 channels including Telecinco and Cuatro

China China Sports Network (49%)

Internet Mediaset.it Tg.com Byme.com

Mediaset

Mediaset is an Italian-based mass media company. It is the largest commercial broadcaster in Italy and has a majority stake in the largest television network in Spain. Additionally, Mediaset has interests in North-African Nessma TV and operates in China with its sports channel, China Sport Network (via a consortium). A difficult couple of years financially (owing to economic problems in Italy and Spain, and a subsequent decline in ad revenue) saw Mediaset decide to sell its stake in Dutch production company Endemol in April 2012.

The core of the business, in Italy, is based around three free-to-air channels: Canale 5, Italia 1, and Retequattro. These channels attract approximately 29% of total Italian television viewership and are financed through Mediaset’s advertising sales company, Publitalia ’80. Mediaset also has a pay-TV division, Mediaset Premium, which was launched in 2005. Initially offering pay-per-view services for films and football matches, it soon expanded to selling packages through monthly subscriptions. Digitalia ’08 is the advertising company responsible for selling advertising space on the premium channels.

Mediaset’s Spanish division is through the form of Mediaset España Comunicación (MEC), in which it has a 41.2% stake. Two of MEC’s channels are Telecinco and Cuatro, both free-to-air generalist terrestrial channels.


US$3,585m

Media ranking:

Media owned:

27

Television


Mediaset

€ million 2010 2011 2012

Media revenue



Non-media revenue 1,429 1,481 929

Total revenue 4,293 4,250 3,721

Net profit 352 225 -287

US$ million 2010 2011 2012

Media revenue




Total revenue 5,511 5,457 4,778

Net profit 452 289 -369



made up approximately 4% of Microsoft’s total revenue (in 2012/13, total revenue was US$77.8 billion). The revenue generated through search and display advertising on Bing and MSN makes up nearly all of OSD’s revenue. Bing is a web search engine that was launched in 2009 (although it was previously known as Live Search and MSN Search). Also in 2009, Bing entered into a deal with Yahoo! whereby Microsoft provided the search function and Yahoo! provided the advertising. The aim of this partnership was for both companies to increase their market share, especially with relation to Google. However, things have not gone quite to plan. Bing has increased its market share, but only marginally and at the expense of Yahoo!

The Entertainment and Devices Division (EDD) develops and markets products and services designed to entertain and connect people. The two main brands, within EDD, that generate advertising revenue are Skype and Xbox. Microsoft bought Skype for US$8.6 billion in October 2011. Meanwhile, the Xbox is a video game console that Microsoft originally released in 2001, before launching the integrated Xbox Live service in 2002. This differed from the original in that it allowed players to play games online.

Media properties

Internet Bing Skype MSN Xbox Live

Microsoft

US$ million 2010 2011 2012 2013

Media revenue

Advertising revenue 2,528 2,913 3,181 3,387



Total revenue 62,484 69,943 73,723 77,849

Net income 18,760 23,150 16,978 21,863


Founded in 1975, Microsoft is the world’s largest software manufacturer, based on revenues. These revenues are generated through developing, licensing, and supporting a wide range of software products and services, by designing and selling hardware, and by delivering online advertising to a global customer audience.

Microsoft is a publicly listed company. Bill Gates is the largest shareholder, with approximately 4.1% in common stock; the remaining stock is owned by Microsoft employees and institutional holders.

Microsoft divides its business into five segments: Windows Division, Server and Tools, Online Services Division (OSD), Microsoft Business Division, and Entertainment and Devices Division (EDD).

Ad revenue was up 6.5% year-on-year in 2012/13 to US$3.4 billion. For the past four years, advertising revenue has


$3,387m

Media ranking:

Media owned:

29

Internet


News Corporation

a digital ‘paywall’ for The Times in the UK in June 2010. Since then the number of paying customers across print and digital editions of The Times has actually increased slightly. This has helped mitigate the loss of advertising revenue it has suffered as readers have migrated from print to online, where advertising is much cheaper. The Sun introduced its own paywall in August 2013, and signed up 100,000 digital subscribers in three months.

In August 2013 News Corp launched a global exchange for it to sell its online advertising – both desktop and mobile – through programmatic buying and real-time bidding. These methods of buying highly targeted advertising by impression have eroded the price of online advertising. By launching its own exchange, News Corp has recaptured that part of the value of its advertising that had been taken over by third-party ad networks.

In December 2013 New Corp paid €18 million for Storyful, a ‘social media agency’ based in Ireland. Storyful sources and distributes online video and user-generated content for its customers, which had already included The Wall Street Journal.

The group’s non-media activities include HarperCollins, a book publisher, and Amplify, which provides digital education products.

Media properties

Newspapers

USA The New York Post The Wall Street Journal Barron’s

UK The Times The Sunday Times The Sun The Sun on Sunday

Australia Over 120 titles, including: The Australian The Daily Telegraph Herald Sun The Courier Mail

Europe/Asia The Wall Street Journal

The present incarnation of News Corporation (News Corp) came into being in December 2012 when the former News Corp split into two companies, one (the present News Corp) mainly consisting of the information and publishing businesses, the other (21st Century Fox) holding most of the broadcasting and film businesses. The new News Corp’s operations are concentrated in the US, the UK and Australia.

News Corp started as a newspaper business, and newspapers remain at the core of its operations. News Corp owns some of the most prominent newspapers in the English-speaking world: The New York Post and The Wall Street Journal in the US; The Times and The Sun in the UK; and more than 120 titles in Australia, including The Australian, The Daily Telegraph, the Herald Sun and The Courier Mail. These newspapers, the financial magazine Barron’s, and their associated websites, form News Corp’s News and Information Services division, which contributed 76% of group revenue in the 2013 financial year.

News Corp also owns FOX Sports Australia, a group of sport channels it broadcasts in Australia, and it holds a 50% stake in Australian pay-TV service Foxtel. Together these assets form the group’s Cable Network Programming division, which contributed 4% of 2013 revenue.

The other media division is Digital Real Estate Services, which houses News Corp’s 61.6% holding in the REA Group (61.6%). This is an Australia-based property advertising company, whose main websites are realestate.com.au, realcommercial.com.au and casa.it. This division also contributed 4% of News Corp’s revenue in 2013.

News Corp has been at the forefront of charging for online content from general consumer newspapers. It introduced


US$7,400m

Media ranking:

Media owned:

12

NewspapersInternetTelevision


News Corporation

Other

USA News America Marketing

Television

Australia FOX Sports Australia FOXTEL (50%)

Internet WSJ.com Barrons.com thesun.co.uk thetimes.co.uk thesundaytimes.co.uk The Wall Street Journal Digital Network, including: Marketwatch.com AllThnksD.com REA Group (61.6%), including: realestate.com.au realcommercial.com.au casa.it

US$ million 2011 2012 2013

Media revenue

News and Information Services 7,576 7,058 6,731

Cable Network Programming - - 324

Digital Real Estate Services 235 286 345


Non-media revenue

Book Publishing 1,195 1,189 1,369

Other 89 121 122

Total non-media revenue 1,284 1,310 1,491

Total revenue 9,095 8,654 8,891

EBTDA by division

News and Information Services 1,153 939 795

Cable Network Programming - - 63

Digital Real Estate Services 102 129 168

Book Publishing 93 86 142

Other -135 -372 -480

Total operating income 1,213 782 688



Warner Bros. Entertainment is involved with film production and distribution, including film-related consumer products, animation, comic books and licensing. It also houses Time Warner’s 50% share in the US broadcast network The CW.

Media properties

Television

US TBS, CNN, HLN, Cartoon Network, TNT, Turner Classic Movies, Adult Swim, truTV, Turner Sports, HBO, Cinemax, The CW Television Network (50%)

Asia Pacific Adult Swim, Boomerang, Cartoonito, Cartoon Network, CNN International, HBO, HBO DEFINED & HBO HITS, Mondo TV, Pogo, TABI Channel, TCM, Toonami, truTV, WB

EMEA Adult Swim, Boing, Boomerang, Cartoonito, Cartoon Network, CNTOO, CNN International, Glitz*, Showtime, Silver, Star!, TCM, TNT, truTV

Latin America Boomerang, Cartoon Network, Chilevision, CNN International, Glitz*, HLN, HTV, Infinito, I.Sat, MuchMusic, Space, TBS veryfunny, TCM, TNT, Tooncast, truTV, Warner Channel

Magazines

US All You, CNNMoney, Coastal Living, Cooking Light, Entertainment Weekly, ESSENCE, FanNation, FORTUNE, GOLF, Health, InStyle, LIFE, Money, My Home Ideas, My Recipes, PEOPLE, People en Español, People StyleWatch, Real Simple, Southern Living, Sports Illustrated, Sports Illustrated for Kids, Sunset, This Old House, TIME, TIME For Kids

Mexico Accent, ADN Político, Aire, Chilango, CNNExpansión.com, CNN México, ELLE, Expansión, Gran Plan, IDC, InStyle, Life & Style, Manufactura, Mediotiempo, Metros Cúbicos, Obras, Quién, Quo, Revolution, Travel & Leisure

Time Warner

Time Warner is a leading producer and broadcaster of television and film entertainment, and is, at the time of writing, also a magazine publisher.

Time Warner’s magazine interests are housed in its Time Inc. division, which published many high-profile magazines in the US, Mexico and the UK. In March 2013 Time Warner announced that it planned to spin off this division, which contributed US$3,029 million to the group’s media revenues in 2012. This separation is due to take place in the second quarter of 2014. The rest of the group’s media businesses are big enough that it would still be the sixth-largest media owner even without its magazines.

It has three other operating divisions: Turner Broadcasting System, Home Box Office (HBO) and Warner Bros. Entertainment.

Turner Broadcasting System owns some of the leading specialist cable networks in the US – including CNN, TBS, Cartoon Network and Turner Classic Movies – plus various international versions, offshoots and original channels across Asia Pacific, Latin America and EMEA.

HBO is a premium pay-TV service which also produces its own original material, and is well-known for such hits as True Blood, Boardwalk Empire and Game of Thrones. This division also includes nine HBO sister channels and the Cinemax film channels. HBO-branded channels are available in 70 other markets across Latin America, Europe and Asia.


US$16,118m

Media ranking:

Media owned:

6

TelevisionMagazinesInternet


Digital Camera, What’s on TV, Woman, Woman Special Series, woman&home, woman&home Feel Good Food, woman&home Feel Good You, Woman’s Own, Woman’s Own Lifestyle Series, Woman’s Weekly, Woman’s Weekly Fiction Series, Woman’s Weekly Home Series, Woman’s Weekly Living Series, World Soccer, Yachting Monthly, Yachting World

Online

Websites for most of the broadcasting and print brands

Digital sports websites, including bleacherreport.com, NBA.com, NCAA.com, PGA.com.

Online video services HBO GO and MAX GO

Time Warner

US$ million 2009 2010 2011 2012

Media revenue

Advertising 8,445 9,028 9,523 9,997

Subscription 5,161 5,682 6,116 6,121



Total revenue 25,388 26,888 28,974 28,729



UK 25 Beautiful Homes, Amateur Gardening, Amateur Photographer, Angler’s Mail, Beautiful Kitchens, Chat, Chat it’s Fate, Country Homes & Interiors, Country Life, Cycle Sport, Cycling Active, Cycling Fitness, Cycling Weekly, Decanter, Essentials, Eventing, Feelgood Games, Golf Monthly, GoodtoKnow.co.uk, GoodtoKnow Recipes, Homes & Gardens, Horse & Hound, HousetoHome, Ideal Home, InStyle, International Boat Industry (IBI), Livingetc, Look, Marie Claire, Motor Boat & Yachting, Motor Boats Monthly, Mountain Bike Rider (MBR), Mousebreaker, NME, Now, Nuts, Pick Me Up!, Practical Boat Owner, Rugby World, Shooting Gazette, Shooting Times, ShootingUK, Soaplife, Sporting Gun, Style at Home, SuperYacht Business, SuperYacht World, Teen Now, The Field, Trusted Reviews, TV & Satellite Week, TV Times, TVeasy, Uncut, Volksworld, VW Camper & Bus, Wallpaper*, What


Central, Spike and TV Land) and BET Networks (African-Americans, including BET and Centric).

Worldwide revenues fell slightly (by 0.7%) to US$13.8 billion in the year ended September 30, 2013. However, revenue growth picked up in the final three months of the year – technically, Q1 of the new fiscal year – and a strong performance from the Media Networks segment drove a 20% increase in operating income year-on-year to US$960m for the quarter.

National Amusements Inc. (NAI), a privately owned company that has been in the Redstone family for three generations, owns 79% of the class A shares (only 17% of class A shares are held by institutional shareholders and freely traded). This provides NAI with a large majority of the voting rights. In addition to this involvement with Viacom, NAI has a similar relationship with CBS Corporation. 97% of the class B shares (which make up approximately 90% of Viacom) are held by a range of institutional investors and also freely traded on the NASDAQ.

Media properties

Television Around 150 channels worldwide including: MTV, Nickelodeon, Comedy Central and VH1

Internet 25+ websites (including affiliated sites for all Viacom channels, Atom Entertainment, NeoPets and MTVU)

Viacom

US$ million 2011 2012 2013

Media revenue

Advertising 4,997 4,756 4,855

Affiliate fees 3,519 3,889 4,245



Total revenue 15,068 14,014 13,790

Adjusted Operating Income

Media Networks 3,848 3,889 4,096

Filmed Entertainment 341 325 234

Total EBIT operating profit 4,189 4,214 4,330

Key financial data Year end: 30 September

Viacom is a leading global entertainment content provider that conducts its business via two operating segments: Media Networks (contributed 69% of Viacom’s revenues in 2013) and Filmed Entertainment (Paramount Pictures and related business - contributed 31% of Viacom’s revenues). It is the former that falls under our definition of media revenue, although we exclude revenues reported under “ancillary” as these relate to items such as brand licensing, merchandising etc. Viacom boasts around 700 million subscribers in around 170 markets across the world.

Media Networks provides entertainment content and related branded products for consumers in demographics attractive to advertisers, content distributors and retailers. To better target consumers, Media Networks divides its channels into four groups: the Music Group (18-34s, including MTV, VH1 and Logo), the Nickelodeon Group (for children and teenagers, including Nickelodeon and related brands), Entertainment (18-34 males, including Comedy


US$9,100m

Media ranking:

Media owned:

11

TelevisionInternet


Vivendi

Sports rights are an important part of Canal+’s business. It holds the broadcasting rights for first-choice Champions League matches to the end of the 2014/15 season, as well as four (out of a possible nine) French Ligue rights packages that it bid for in 2011, which enables it to show a live Saturday afternoon game and a Sunday evening match for every week of play up to and including the 2015/16 season. In 2013, Canal+ also managed to snatch the F1 rights for France (up to 2015) away from TF1, which had held them since 1992. Then, in early 2014, it acquired the rights to broadcast footage from each stage of the 2014 World Rally Championship.

Through subsidiary Canal+Overseas, Vivendi also operates Cyfra+, a popular pay-TV service in Poland, and satellite service K+ in Vietnam. It is also an important provider of pay-TV in 30 markets in francophone Africa. Additionally, it owns film producer and distributor StudioCanal, which puts out around 50 films every year.

Media properties

Television France CanalSat (100%) 26 pay-TV channels including Canal+, Canal+ Sport, Cine+ Premier, and Comédie! D8 D17

International Canal+Overseas (100%) Cyfra+ (75%, Poland) K+ (100%, Vietnam) Canal+ Afrique (100%)

The Canal+ Group is a leading pay-TV provider in France, and is the only part of Vivendi’s revenue that we count towards our definition of its media revenue. However, in addition Vivendi owns a large number of other businesses including games producer Activision Blizzard, the Universal Music Group, telecoms providers SFR (France) and Maroc Telecom (Morocco), and other services such as content-sharing website zaOza, ticket providers Digitick and Seetickets, and Wengo, a phone counselling service.

By the end of 2012, Canal+ had attracted 14.3 million subscriptions in France and abroad. Its core offering, Les Chaînes Canal+, consists of six premium-content channels: Canal+, the original generalist entertainment channel; Canal+ Cinéma, the premium film channel; Canal+ Sport, the premium sports channel; Canal+ Series HD, which shows series; Canal+ Family, which shows a mixture of family-friendly programming; and Canal+ Décalé, which shows a mixed bag of content that wouldn’t easily fit into any other of the channels’ schedules. A further 21 channels include the Télétoon, Planète and Ciné+ suites of channels, five of them in HD. In 2012, Canal+ finalised its acquisition of the Direct 8 (relaunched as D8 in October 2012) and Direct Star (relaunched as D17) channels, which it offers free-to-air in France. CanalPlay and CanalPlay Infinity are the video-on-demand services available to subscribers who want to do some catch-up viewing.


US$6,436m

Media ranking:

Media owned:

14

Television


Vivendi

€ million 2010 2011 2012

Media revenue

Canal Plus 4,712 4,857 5,013



Total revenue 28,878 28,813 28,994

EBITA by division

Activision Blizzard 692 1,011 1,149

Universal Music Group 471 507 525

SFR 2,472 2,278 1,600

Maroc Telecom Group 1,284 1,089 987

GVT 277 396 488

Canal Plus Group 690 701 663

Holding and corporate -127 -100 -115

Non-core/other -33 -22 -14

Total EBITA 5,726 5,860 5,283

US$ million 2010 2011 2012

Media revenue

Canal Plus 6,050 6,236 6,436



Total revenue 37,078 36,994 37,227

EBITA by division

Activision Blizzard 888 1,298 1,475

Universal Music Group 605 651 674

SFR 3,174 2,925 2,054

Maroc Telecom Group 1,649 1,398 1,267

GVT 356 508 627

Canal Plus Group 886 900 851

Holding and corporate -163 -128 -148

Non-core/other -42 -28 -18

Total EBITA 7,352 7,524 6,783



cable network; in fiscal 2012, Disney increased its stake in UTV from 50% to 99%. In addition, it holds 50% stakes in A&E Television Networks, which owns a number of channels including Crime & Investigation Network, History, Bio and Lifetime; and Fusion, a television and digital network aimed at English-speaking Hispanic millenials, which was launched in October 2013.

Joint venture Hulu was launched in 2008. Operating in the USA and Japan, Hulu is an online TV and film content aggregator, and derives its revenues principally from ad sales and the Hulu Plus subscription service, which now has more than 4 million subscribers.

The Disney Interactive segment of the company produces and distributes content through a number of platforms. Websites include Disney.com, Club Penguin, Babble.com and babyzone. Recent games releases include Disney Infinity.

Media properties

TV USA ABC SOAPnet Fusion (50%)

India UTV (99%)

International Disney Channels Worldwide ESPN (80%) A&E Television Networks (50%)

Online USA/Japan Hulu (33%) International Disney.com Babble.com

Walt Disney Company

The Walt Disney Company generates revenue in five key segments: Media Networks, which covers ad revenues from Disney TV shows and affiliate fees from MVPDs (multichannel video programming distributors); Parks & Resorts, which is the side of the business that runs the theme parks and cruise ships; Studio Entertainment, the film distribution segment; Consumer Products, devoted to merchandising, books and other consumer items; and Interactive, which covers online properties such as multi-platform gaming, online advertising and sponsorships. For the purposes of media revenue, we include the Media Networks and Interactive figures only.

The Disney Channel is probably the best-known of Disney’s TV properties. In 2013 it was the most-watched network in the US among 2-11-year-olds for the second consecutive year; popular programmes on the 24-hour channel include the Mickey Mouse Clubhouse, Jake and the Never Land Pirates and Jessie. Disney Channels Worldwide, which includes the Disney Channel, Disney Junior and Disney XD among others, provides over 100 channels in 34 languages to 166 markets across the world.

But Disney has other important TV assets, too, including one of the top US TV national networks, ABC, which broadcasts hits such as Grey’s Anatomy, Mistresses and Nashville. It also owns 80% of the sports entertainment company ESPN, which operates seven sports networks – ESPN, ESPN2, ESPNEWS, ESPN Classic, ESPN Deportes, ESPNU and Longhorn Network – and five HD simulcast services. In India, the company operates the UTV/Bindass


US$20,281m

Media ranking:

Media owned:

3

TelevisionOnline


Walt Disney Company

US$ million 2010 2011 2012 2013

Media revenue

Media Networks 17,162 18,714 19,436 20,356

Interactive 761 982 845 1,064



Total revenue 38,063 40,893 42,278 45,041


Media Networks 5,132 6,146 6,619 6,818

Parks & Resorts 1,318 1,553 1,902 2,220

Studio Entertainment 693 618 722 661

Consumer Products 677 816 937 1,112

Interactive -234 -308 -216 -87


Key financial data Year end: Saturday closest to 30 September


whereby Microsoft’s Bing became the search engine for Yahoo! Sites, and Yahoo! provided the relationship sales force for search advertisers. The main aim of the deal was to increase Microsoft and Yahoo!’s market shares against Google. Under the terms of the deal Microsoft retains 12% of the search engine revenues generated via Yahoo!’s website for the first five years. The deal has not lived up to expectations, however; Yahoo! and Microsoft have not increased their market share (rather they’ve traded share with each other) and revenues have not been boosted.

In 2012, the main source of income for Yahoo! was from display advertising; 43% of revenue was generated in this way. Search advertising provided 38% of revenue, down from 50% in 2010. This fall in revenue from search advertising can be primarily attributed to the change in revenue presentation that began in Q4 2010, the revenue share with Microsoft for the US and Canada, and the loss of an affiliate in the Asia Pacific region (Yahoo! sold part of its stake in the Chinese internet group Alibaba in 2012).

Recently, Yahoo! has been on a bit of a shopping spree in terms of acquisitions: in the fourth quarter of 2013 alone it bought eight companies: Aviate (ThumbsUp Labs), PeerCDN (Instant IO), Evntlive, Ptch, SkyPhrase, LookFlow, Bread Labs and Hitpost. This zeal for buying, along with the continuing drive to invest in the company’s products as well as share repurchases, have reduced the company’s cash position to about US$5 billion, down by around 17% year-on-year.

At the beginning of 2014, Yahoo! announced it would be launching a new ad exchange and ad manager to buy across native, audience, premium and search products.

Media properties

Internet 120+ websites including yahoo.com, Hotmail.com, and flickr.com

Yahoo!

US$ million 2010 2011 2012 2013

Media revenue

Display 2,155 2,160 2,143 1,950

Search 3,162 1,853 1,886 1,742

Other 1,008 971 958 988



Total revenue 6,325 4,984 4,987 4,680

Income from operations 773 800 566 590


Founded in 1994 by Jerry Yang and David Filo, Yahoo! is a digital media company. It operates a portal that provides news, entertainment and sports information, and provides users with access to additional services such as Mail, Maps, Finance, Groups and Messenger.

The basic product is Yahoo! Search, which, in partnership with Microsoft (see below for more details), allows users to find information using keywords and from looking at a user’s search history. Yahoo! generates revenue from listing fees, transaction fees, and display and search advertising on these properties, as well as from the subscription fees that they charge for hosting websites for customers, fees for registering domains, and fees for services provided to small businesses seeking to maintain a website.

The company’s other offerings include Yahoo! Mail, Yahoo! Messenger, Flickr, and Connected TV; it provides a range of communication and social services to users across a variety of devices. These services aim to organise users into groups to enable the sharing of knowledge, common interests and photos. Generally these services are free of charge, but some require a fee or subscription. Revenue is generated from display and search advertising and from fee-based services. These media properties are also available in mobile-optimised versions for display on mobile phones and tablet devices.

In 2010 Yahoo! and Microsoft signed a 10 year deal


US$4,987m

Media ranking:

Media owned:

19

Internet


it was relaunched in April 2013 with a commitment to communicate information about Japan overseas. It had a circulation of 26,673 in the second half of 2012, just behind the market-leading English-language daily The Japan Times, which had a circulation of 27,225.

Yomiuri Online is the newspaper company’s website: it publishes news and features on a range of domestic and international topics, and attracts more than 400 million monthly page views.

The Yomiuri Shimbun group also owns a 14.6% stake in the Nippon Television Network, the publishing group Chuokoron-Shinsha, (which publishes mostly books but also some magazines, including the renowned literary title Chuokoron), and the professional Japanese baseball team Yomiuri Giants.

Media properties

Newspapers Japan The Yomiuri Shimbun The Japan News Internet Japan Yomiuri Online

Yomiuri Shimbun Holdings

¥ million 2010 2011 2012

Estimated media revenue 329,791 329,149 332,126

US$ million 2010 2011 2012

Estimated media revenue 4,135 4,127 4,164


The Yomiuri Shimbun Holdings’ eponymous daily newspaper The Yomiuri Shimbun, launched in 1874, is published in two editions: morning and evening. It provides comprehensive news coverage from a conservative perspective, a wide range of features, and a series of weekly supplements. The Yomiuri Shimbun is the most popular daily in Japan, with a circulation of just under ten million for its morning edition (9,875,949 in the first half of 2013). Its circulation makes it by some distance the best-selling daily newspaper in the world. Its closest rival, the more liberal-leaning The Asahi Shimbun, has a circulation of just under eight million, which makes it the world’s second-highest-circulating daily newspaper.

Sister title The Japan News is an English-language daily published in Japan. Previously called The Daily Yomiuri,


US$4,997m

Media ranking:

Media owned:

18

NewspapersInternet

* Note: ZenithOptimedia estimates of circulation plus ad revenue in the Yomiuri Shimbun, based on NSK total market revenue/circulation

figures; does not include any estimates for digital revenue.


Over-the-air television Please see ‘terrestrial television’.

Pay-per-view Single programme paid for individually.

Pay-TV Television broadcasting in which viewers pay by subscription to watch a particular channel.

Readership Number of readers of a publication.

Satellite TV Television system in which the signal is transmitted to an orbiting satellite that receives the signal, amplifies it, and transmits it back to earth.

Search advertising Method through which online advertisements are placed to appear with particular search engine query results (also known as paid search).

Syndicated programmes A programme that is shown on a different network to the one it originally aired with. A syndicated programme can also be a programme that was not made for a television network, but is then sold to multiple different television stations to be shown.

Terrestrial television Mode of television broadcasting that uses radio waves through transmitting and receiving aerials (instead of satellite transmission or cables). The term is common in Europe; in North America it is referred to as broadcast television or over-the-air television (OTA).

Video-on-demand (VOD) An event or film transmitted once at the time chosen by the viewer.

Exchange rates

Appendices

Country Currency 2012

UK Pound (£) 0.63

France Euro (€) 0.78

Germany Euro (€) 0.78

Italy Euro (€) 0.78

Japan Yen (¥) 79.75

Brazil Real (R$) 1.95

China Yuan (RMB) 6.22

1US$=…..local currency

Glossary

Affiliate A company selling other merchants’ products on its own website. The sale is transacted at the other merchant’s site, which passes on commission to the affiliate.

Can also mean a broadcaster which carries some or all of the television/radio programme line-up of another television/radio network.

Average revenue per user (ARPU) The average revenue received from each subscriber for a specific time period (usually one month).

Broadcast network Organisation that provides television content for broadcast over a group of television or radio stations.

Cable TV (CATV) A television service in which programmes are distributed to subscribers’ televisions via cable, rather than by broadcast transmission.

Circulation The number of copies of a publication sold or otherwise distributed per issue. Auditing rules vary for different types of publication; freely distributed copies are excluded from some measures of circulation.

Daily active users (DAU) Number of people who engage with a website in one day.

Digital marketing Promotion of brands using all forms of digital advertising.

Display advertising Adverts include text and some kind of image (such as company logo or photograph). For internet, display advertising appears on web pages in a number of forms, including web banners and panels.

Monthly active users (MAU) Number of people who engage with a website in one month.

Multichannel video programming distributors (MVPD) Provider of video programming services, usually for a subscription fee (includes cable TV and satellite TV).

Top Thirty Global Media Owners 2014

Marketing

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