SPT Business Overview
November 27, 2012
1
Sony Pictures Television
Sony Pictures TelevisionSony Pictures Television
Business Overview
2
ProductionProduction NetworksNetworksDistribution & Ad Sales
Distribution & Ad Sales
SPT Organization Overview
3
Steve MoskoPresident, Sony
Pictures Television
Andy KaplanPresident, Worldwide
Networks
John WeiserPresident, Distribution
Michael DaviesPresident, Embassy Row
Corii BergSr. EVP, Production
Business Affairs
Harry FriedmanExecutive Producer
Zack Van AmburgPresident, Programming
Jamie ErlichtPresident, Programming
Keith LeGoyPresident, Distribution
Amy CarneyPresident, Ad Sales, Strategy & Research
Chris ElwellEVP, Distribution Business
Operations
Andrea WongPresident, Int’l Production
Paula AskanasEVP, SPT Communications
Sheraton KalouriaEVP and Chief Marketing
Officer
Organizational Change
• Pursued opportunities to drive organizational change around strategy, structure, processes and culture that drive sustainable growth
− Merged Domestic and International TV into one Worldwide TV Business− Eliminated regional matrix reporting structures− Consolidated Business Affairs under one head (Corii Berg)− Consolidated Marketing under one head (Sheraton Kalouria)− Consolidated Research under one head (Mumford and now Amy Carney)− Consolidated Contract Sales/Rights Admin under one head (Chris Elwell)− Consolidated International Production Format Sales under International Distribution− Reorganized and transformed a small start-up user generated dotcom (Grouper) into a multi-platform
digital network projected to deliver a revenue contribution of $113mm in FY 16
4
Talent Development
• Leveraged our high performing/high potential internal talent to create organizational agility in responding to shifting business objectives and market conditions globally in addition to providing individual growth opportunities
− Donna Cunningham – EVP Operations – International Production (moved from Culver City to Miami to London)− Maria Smirnova – Managing Director International Production Russia & Ukraine− Mike Wald – EVP Distribution EMEA (moved from Culver City to London)− Jane Dockery – SVP Distribution Global Formats − Ed Louwerse – SVP Production Management, Distribution − Selina Nederhand – VP Distribution LATAM (moved from the Netherlands to Miami) − James Farrell – SVP Distribution, Japan (moved from Canada to Japan)− Simon Bathe – Executive Director Digital Distribution LATAM (moving from Germany to Miami )− Kylie Munnich – SVP Distribution LATAM (moved from Australia to the UK )− Mark Young – SVP Distribution Australia/NZ (moving from UK to Australia)− Angel Orengo – EVP Distribution Asia (moved from Miami to Hong Kong)− Superna Kalle – SVP Networks & GM Sony Movie Channel− Kate Marsh – SVP Western Europe – Networks− Lyle Stewart – SVP CEEMA – Networks− Amy Carney – President Ad Sales, Strategy and Research (moving from NY to Culver City)− Sheraton Kalouria – EVP and CMO Marketing − Philip Martzolf – EVP Syndication Sales− Flory Bramnick – EVP Cable Sales 5
Talent Acquisitions
• Effectively increased organizational capability with key strategic hires
− Andrea Wong – President International Production (Lifetime Networks)− Wayne Garvie – EVP & Chief Creative Officer International Production (All3Media)− Veronica Pimstein – SVP Creative International Production – Miami (Univision)− Kevin Byles – SVP Distribution – Canada (AVTEL Media Communications Inc)− Lucia Cottone – SVP Development & Current Programming – Networks (Lifetime Television)− John Rossiter – General Manager AXN HU – Networks (HBO)− James Smith – SVP Digital Ad Sales – Crackle (Disney Interactive Media Group)− Rene Santaella – General Sales Manager – Crackle (Disney Interactive Media Group)− Jeff Meier – SVP Programming Sony Movie Channel (Lionsgate Entertainment)
6
Television Business is Growing
Se-ries1
0
100
200
300
400
500
600
700
800
900
11
Monetization$MM
FY13Frcst
FY14Current
FY15 Current
FY16 Current
7
15% CAGR
• Networks – Networks projected to have an EBIT CAGR of 23% across the plan, expected to break earnings records in each year. The growth comes from all regions across the world as newer channels mature to profitability and more mature channels grow or maintain their margins
• U.S. Production– EBIT projected to grow 21% over the plan from $290MM to $351MM driven by a pipeline of programming sold to SVOD and Off-net syndication
• International Production – International Production projected to have an EBIT CAGR of 78% across the plan. Moderate organic growth from existing operating companies is supplemented by EBIT contributions from recent acquisitions Left Bank and Silver River as well as the inclusion of a hit format starting in FY15
$564
$625
$765
$859
553
SPT EBIT projected to grow at a rate of 15% CAGR
SPT Consolidated EBIT
FYE13Gross
FYE13Net
FYE16Gross
FYE16Net
$-
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$5,217
$3,648
$6,972
$5,389
Sony Pictures Television
Revenue and EBIT – Today and Tomorrow
Revenue EBIT($MM) ($MM)
8FYE13 FYE16 $-
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
$553
$859
Note: EBIT excludes monetization of $11MM in FY13 and 3NET EBIT of ($6MM) in FY13 and ($2MM) in FY16.
Gross Revenue Net revenue EBIT($MM) FYE13 FYE16 FYE13 FYE16 FYE13 FYE16
U.S. Distribution 778 632 48 40 34 25 Int'l Distribution 1,630 1,895 9 5 (45) (54) Int'l Production 233 513 294 573 6 34 U.S. Production & Ad Sales 1,058 1,450 1,761 2,191 290 351 Networks 1,518 2,482 1,536 2,580 268 503 Total 5,217$ 6,972$ 3,648$ 5,389$ 553$ 859$
U.S. Production
9
What We Do Well, Where We Need Improvement-U.S. Production
10
• Develop broadcast network hits
• Keep a broadcast drama on the air
• Collaborate better with International Production in development/exploitation of scripted and unscripted formats
• Lead assertively in control of production costs and in improving series economics vis-à-vis network buyers
What we need to improve
• Receive consistently strong pilot orders, pilot to series conversions and series renewal rates
• Launch and monetize cable dramas
• Grow series on air on a modest development budget
• Produce a broad range of diversified content, including for new media
• Align production and financial goals
• Combine business strategy with entrepreneurship and creativity
• Position SPT as most entrepreneurial TV studio
What we do really well
U.S. Production: Forecast
Projected Earnings Growth
11
FY13 FY14 FY15 FY16 -
200
400
600
800
1,000
1,200
1,400
1,600
-
20
40
60
80
100
120
1,144 1,289 1,352
1,500
68 78
113 101
Current Series, Pilots & Development Costs
FY13 FY14 FY15 FY16 -
50
100
150
200
250
300
350
400
450
500
-
20
40
60
80
100
120
140
160
180
402 397 411 429
151 144 155
167 Wheel of Fortune, Jeopardy! & Daytime Dramas
FY13 FY14 FY15 FY16 -
10
20
30
40
50
60
70
80
90
-
1
2
3
4
5
6
7
8
9
33
53
76 83
5 6
7
8 Embassy Row
Revenue EBIT
($MM)
Library
FY13 FY14 FY15 FY16 150
155
160
165
170
175
180
40
50
60
70
80
90
100
110
175
163 160
163
102 104 103 104
U.S. Production: Organization Overview
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Steve MoskoPresident, Sony
Pictures Television
Jamie ErlichtPresident, U.S. Programming
Zack Van AmburgPresident, U.S. Programming
Holly JacobsEVP, U.S. Reality &
Syndication Programming
Suzanne Patmore GibbsEVP, U.S. Drama
Development
Glenn AdilmanEVP, U.S. Comedy &
Animation
Dawn SteinbergEVP, U.S. Talent & Casting
Helen VernoEVP, U.S. MOWs / Minis
Steve KentSr. EVP, U.S. Format
Production
Kim RozenfeldEVP, U.S. Current
Programming
Ed LammiEVP, U.S. Production
13
Charlie’s AngelsPan Am
UnforgettableNecessary Roughness
Re-ModeledSubstitute
Breaking InFranklin & BashHappy Endings
The Big CNate BerkusCommunity
Rules of EngagementShark Tank
The Sing-OffThe BoondocksBreaking Bad
DamagesDrop Dead Diva
HawthorneJustified
Rescue MeDr. Oz
Newlywed Game
2011–2012
24 series
14$(86)MM
• Rules sold in syndication in 97% of U.S.• 7 shows on 2011 primetime fall schedule (most since 2002)• SPT has broadcast programming on 6 of 7 nights of the 2011
fall schedule
• Rules sold in syndication in 97% of U.S.• 7 shows on 2011 primetime fall schedule (most since 2002)• SPT has broadcast programming on 6 of 7 nights of the 2011
fall schedule
• Only studio to get a new series on each of the 5 broadcast networks
• Rules of Engagement becomes primetime’s #2 comedy
• SPT becomes the #1 producer of scripted cable series
• SPT achieves 29 Emmy nominations
• The Shield becomes SPT’s first cable-to-cable series sale; $32MM
• SPT successfully launches Dr. Oz• Rescue Me sells into U.S. syndication
and has an ultimate profit of $55MM
• Highest volume year in SPT history with 13 stand-alone profitable series
• Three primetime broadcast reality series• SPT has more new broadcast comedy series than
any other studio
11 series
Book of DanielEmily’s Reasons
Love MonkeyBeautiful PeopleThe BoondocksKing of Queens
HuffRescue Me
Strong MedicineThe Shield
Judge Hatchett
16 series
SPT Timeline: 2005 – 2012(excluding Wheel of Fortune, Jeopardy!, Days of Our Lives,Young & The Restless)
PilotsInv. Pool
16$(96)MM
2007–2008
17 series
Canterbury’s LawCashmere Mafia
Power of 10Spider-Man
Viva LaughlinBreaking Bad
DamagesJudge David Young
Rules of Engagement
Til Death10 Items or LessThe Boondocks
My BoysRescue MeThe Shield
Judge HatchettJudge Maria Lopez
15$(78)MM
2008–2009
17 series
Sit Down, Shut UpThe Unusuals
The BeastNewlywed Game
Judge KarenRules of
EngagementSpider-Man
Til Death10 Items or LessThe BoondocksBreaking Bad
DamagesMy Boys
Rescue MeThe Shield
Judge David YoungJudge Hatchett
8$(63)MM
2009–2010
17 series
BrothersCommunityShark Tank
The Sing-OffDrop Dead Diva
HawthorneJustified
Make My DayDr. Oz
Rules of Engagement
Til DeathThe BoondocksBreaking Bad
DamagesMy Boys
Rescue MeNewlywed Game
12$(72)MM
Happy EndingsMad Love
Mr. SunshineBreaking InPlain JaneThe Big C
Franklin & BashNate BerkusCommunity
Rules of EngagementShark Tank
The Sing-OffThe BoondocksBreaking Bad
DamagesDrop Dead Diva
HawthorneJustifiedMy Boys
Rescue MeNewlywed Game
Dr. Oz
2010–2011
22 series
14$(85)MM
16$(81)MM
25 series
9$(80)MM
• Community sold to SVOD and Cable
• SPT achieves 39 Emmy nominations
• 4 new series premiering on all 4 major broadcast networks
• Community sold to SVOD and Cable
• SPT achieves 39 Emmy nominations
• 4 new series premiering on all 4 major broadcast networks
Big DayHeist
KidnappedRules of
EngagementRunawayTil Death
10 Items or LessMy Boys
Judge Maria LopezGreg BehrendtThe Boondocks
HuffKing of Queens
Rescue MeThe Shield
Judge Hatchett
Mob DoctorLast Resort
Made In JerseySave MeThe Job
Men At WorkMasters of Sex
Client ListPyramid
Franklin & BashHappy Endings
The Big CNecessary RoughnessCommunity
Rules of Engagement
UnforgettableShark Tank
The BoondocksBreaking Bad
DamagesDrop Dead Diva
JustifiedSubstitute
Dr. OzNewlywed Game
2012–20132005–2006 2006–2007
Current Series, Pilots & Development Costs:Challenges and Opportunities
14
OpportunitiesChallengesMRP Assumptions
• Invest in A-list writers, directors and producers for future drama / comedy / unscripted development
• Develop series with broad international appeal with globally marketable talent to sell in the US and abroad
• Grow international revenue through exploring co-production opportunities and maximizing tax credits
• Improve production cost controls• Position SPT at the forefront of the
burgeoning subscriptions VOD market (Netflix, DirecTV) to sell and develop series
• Further identify and develop businesses around Shark Tank, Dr. Oz, and Queen Latifah
• Keep shows on network to reach syndication
• Compete to get shows commissioned, networks pressured to use their own studios
• Receive proper promotion from networks
• Produce programming that responds to the evolving consumer viewing habits
• Combat decline in broadcast network total output (26 this season vs. 30 last season) and new series pick-ups (-3)
• Broadcast networks struggle in the ratings and addition complications arise due to Live vs. Live + Delayed viewing (i.e. VOD, DVR)
• Grow a steady pipeline of programming sold to SVOD and off-net syndication: Last Resort, Happy Endings, Justified
• Premier 3 new broadcast network series every year with 1 returning every year for multiple seasons
• Premier 2 new cable series each year with all returning for multiple seasons
Wheel of Fortune, Jeopardy!, Daytime Dramas:Challenges and Opportunities
15
OpportunitiesChallengesMRP Assumptions
• Extend brands into cable and digital through ancillary programs Sports Jeopardy!, Rock and Roll Jeopardy! and/or Kid's Wheel
• Expand brands into other arenas including physical gaming devices (slot machines), branded lottery tickets and other technologies
• Exploit digital rights in numerous categories online and on multiple devices
• Establish an international gaming platform using the branded shows with the anticipation of legalization of digital gaming in the U.S.
• Maintain viewership levels and high licensing fees for mature assets in the face of declining syndicated television viewing
• Maintain viewer loyalty when on-air talent retires
• Continue to grow despite the lack of direct control over domestic and international sales organizations at CBS
• Produce programming that responds to the evolving consumer viewing habits
• Keep these 4 series on air through the MRP period with little change in economics over the period
• Renew with IGT in FY16
16
Embassy Row: Challenges and Opportunities
OpportunitiesChallengesMRP Assumptions
• Capture additional opportunities for unscripted programming on certain networks
• Develop broad appeal series / minimize work-for-hire
• Build a West Coast based unscripted development brand
• Produce programming that responds to the evolving consumer viewing habits
• Develop broad appeal series
• Utilize capacity (work-for-hire projects have lower margins)
• Grow IP / owned series production with limited development fund
• Develop docu-reality series, talent-based, and real-life competitions
• Grow international revenue through exploring opportunities and maximizing tax credits
• Shift product mix towards IP / owned series which grow from 6 to 10 over the MRP period
Library: Challenges and Opportunities
OpportunitiesChallengesMRP Assumptions
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• Expand integration / collaboration with International Distribution for maximum global impact of U.S. product
• Monetize library through expanded distribution into new platforms (SVOD, FOD)
• Continue to identify new distribution windows/opportunities through robust sales planning
• Receive premium pricing on aging assets
• Appeal to changing consumer preferences and viewing habits
• Grow distribution revenue
International Production
18
What We Do Well, Where We Need Improvement-International Production
19
• Develop global hit format
• Achieve scale and pipeline in major format generating territories (UK, Netherlands, Scandinavia)
• Foster a more creative culture across the organization
• Collaborate better with U.S. Production in the development/exploitation of scripted and unscripted formats
What we need to improve
• Expand footprint of international production businesses
• Enter growth markets (e.g., Russia, LATAM)
• Streamline production administration and collaboration within and across territories
What we do really well
International Production: Forecast
Int’l Production Projected Revenue and EBIT
FY13 FY14 FY15 FY16 -
100
200
300
400
500
600
700
-
5
10
15
20
25
30
35
40
294
433 530
573
6
13
28
34
Revenue EBIT($MM) ($MM)
Note: EBIT excludes FY13 monetization of $11MM
20
International Production: Organization Overview
21
Steve MoskoPresident, Sony
Pictures Television
Wayne GarvieChief Creative Officer
Donna CunninghamEVP Operations
Mary ChanVP Production – Asia
Nathalie CivraisSVP Production – France
Andrea WongPresident, Int’l
Production
Astrid QuentillSVP & MD – Germany
OpenSVP & GM – Latin America
/ U.S. Hispanic
Maria SmirnovaMD Production – Russia
and Lean M
Ziad KebbiPresident, SPT Arabia
Jeff LernerSVP, Scripted Dev &
Production
International Production: Challenges and Opportunities
22
• Continue to exploit Millionaire, develop a stable base of other successful formats
• Make more focused and sustained investment in development, executives, producers, production companies, and new content especially in the UK
• Foster a more creative culture to develop intellectual property by:
− Realigning the organization, including a new President and a creative head
− Combining the print sales and format sales teams to better serve our buyers
− Creating a strategically centralized development fund
− Implementing a competitive incentive plan
• Simplify admin, operational process
• Explore opportunities in emerging markets
Opportunities
• Excel in an increasingly competitive marketplace
• Operate in a challenging economic climate in key markets
Challenges
• Achieve moderate growth from existing operating companies supplemented by EBIT contributions from recent acquisitions Left Bank and Silver River
• Assume a hit format starting in FY15
• Assume $50MM annual investment fund for FY14-FY16
MRP Assumptions
23
U.S. Distribution and Ad Sales
What We Do Well, Where We Need Improvement-U.S. Distribution and Ad Sales
24
• Improve coordination with Networks and Finance
• Improve coordination between ad sales and syndication sales
What we need to improve
• Distribute TV and movies using a product-centered approach: customized release plans and windowing across platforms for different types of TV series and features
• Manage sales planning, forecasting, analytics and business affairs
• Collaborate across SPT groups and SPE divisions− Ensure that Distribution deals support and coordinate
with Networks carriage deals− Leverage TV deals for home video deals where clients
are in both businesses− Rep inventory for PlayStation
• Position SPT as a syndication and ad sales leader outperforming others in market
• Leverage traditional TV ad sales along with digital inventories/platforms (FearNet, PlayStation)
What we do really well
U.S. Distribution & Ad Sales: Forecast
U.S. Distribution Projected Revenue and Profit Contribution
25
U.S. Ad Sales Projected Revenue and Profit Contribution
FY13 FY14 FY15 FY16 -
100
200
300
400
500
600
700
800
900
40 46 33 29
453 365 368 347
285 367
270 256
352 323 298 281
WWAG MPGTV Profit Contribution
($MM)
FY13 FY14 FY15 FY16 -
50
100
150
200
250
300
350
400
450
-
20
40
60
80
100
120
140
$184
$260
$330
$392
$34
$61
$103
$128
Revenue Profit Contribution($MM)
U.S. Distribution and Ad Sales: Organization Overview
26
Stuart ZimmermanEVP, Ad Sales
Richard BurrisEVP, Strategic Planning &
Analysis
Chris KiriakatisSVP, Digital Ad Sales
David MumfordEVP, Planning & Research
Amy CarneyPresident, Ad Sales, Strategy & Research
Travis HoweSVP, Digital Ad Sales
Steve MoskoPresident, Sony
Pictures Television
John WeiserPresident, U.S.
Distribution
Thanda BelkerEVP, U.S. Pay & TV Sales
Flory BramnickEVP, U.S. Cable
Alan DanielsSVP, Distribution Planning
Phil MartzolfEVP, U.S. Syndication
Sales
U.S. Distribution: Challenges and Opportunities
27
• Renegotiate Starz output deal• Sell library film and TV series into
non-exclusive subscription deals• Split library windows, license
multiple rights, structure non-exclusive deals
• Sell slate carve-out windows utilizing more aggressive inventory tracking and planning
• Develop consistent flow of first-run product with top talent
Opportunities
• Maintain Starz relationship after spin-off and deal with uncertainty regarding Starz’s original programming strategy
• Achieve substantial library targets in a challenging marketplace
Challenges
• Increase feature library sales throughI. Strategic use of driver inventory
to leverage broad package sales
II. Hyper-targeted offerings with premium pricing
III. Multiple nonexclusive buyers and bulk buys to drive low-rated product
• Leverage SVOD licensing and strategic product planning for U.S. channel carriage
• Project revenue and corresponding profit contribution swings based on release timing, size of theatrical slate and timing of off-net syndication avails (e.g., Rules of Engagement, Community, Happy Endings)
MRP Assumptions
Ad Sales: Challenges and Opportunities
28
• Diffuse volatility in TV ad revenue market by growing a strong digital base
• Drive additional revenue for first run through advertiser integrations
• Expand current base of advertisers for :30s and :10 to off-nets
• Find new 3rd party representation opportunities
• Continue to support cable / network properties through Branded Entertainment
• Develop and pioneer high value-rich media placements on connected devices
Opportunities
• Grow within the limits of available shows
• Compete for limited opportunities for 3rd party ad sales representation
• Achieve projected pricing despite volatility in U.S. ad market and aging series
Challenges
• Drive additional revenue for first run through pricing increases and advertiser integrations
• Increase share in TV market upfront
• Expand list of advertisers for 30s / 10s
• Sell at levels of 70% or higher in upfront and sell remaining inventory at premium CPMs
MRP Assumptions
29
International Distribution
What We Do Well, Where We Need Improvement-International Distribution
30
• Improve and streamline marketing, business affairs, planning and admin support
• Integrate format and program sales
What we need to improve
• Execute strong output agreements for film and TV
• Align with U.S. production better than competition
• Leverage across media/lines of business with large consolidated buyers on behalf of transactional, SVOD and traditional TV
• Collaborate on transactional businesses with SPHE
What we do really well
International Distribution: Forecast
Strong and consistent growth
Int’l Distribution Projected Revenue and Profit Contribution
31
FY13 FY14 FY15 FY16 -
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
-
100
200
300
400
500
600
700
800
160 170 175 180
960 975 963 1,008
510 567 634 707
634 653
662 685
WWAG MPG TV Profit Contribution($MM)
International Distribution: Organization Overview
32
Steve MoskoPresident, Sony
Pictures Television
Keith LeGoyPresident, Int’l
Distribution
Ed LouwerseSVP, Product Management
Paul LittmanSVP, Global Sales
Mike WaldEVP, Distribution EMEA
Alex MarinSVP, Distribution, Latin
America
Angel OrengoEVP, Distribution,
Asia/Pacific
Kevin BylesSVP, Distribution, Canada
International Distribution: Challenges and Opportunities
33
• Broaden scope of broadcaster relationships to explore English language, European content, co-production opportunities
• Exploit opportunities for distribution into new platforms (SVOD, FOD)
• Close long-term deals in key markets
• Focus on select emerging markets to expand SPT’s presence and better capitalize on opportunities (Netherlands, Scandinavia, Poland, Hungary, South Africa)
• Broaden scope of broadcaster relationships to explore English language, European content and co-production opportunities
Opportunities
• Handle shifts in feature film slate• Ensure we keep rights to key
revenue-driving feature film franchises
• Access to breakout / hit drama
Challenges
• Drive TV product revenue growth through sustained delivery of network dramas
• Invest in International Distribution
• Drive revenue pipeline through new market entrants
• Establish stronger relationships in key markets
MRP Assumptions
Networks
34
What We Do Well, Where We Need Improvement-Networks
35
• Strengthen network brands and programming identities for existing channels
• Build a bouquet of digital networks
• Focus on hit shows, especially for mature networks (e.g. GSN, SET Brazil/LATAM)
What we need to improve
• Launch new channels, move early in growth markets
• Grow revenue and EBIT
• Establish Crackle as a market leader in its category
What we do really well
Networks: Forecast
Projected Earnings Growth
FYE13 FYE14 FYE15 FYE16 $-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
-
100
200
300
400
500
600
$1,536 $1,961
$2,258
$2,580
268
328
410
503
Revenue EBIT
EBIT projected to reach over $500 million in FY16, projected to grow at a 23% CAGR over the MRP period
EBIT Margin: 17.4% 16.7% 18.2% 19.5%
($MM)
36
As a result of recent investments, North America and Europe projected to grow as a percentage of Networks’ EBIT from 24% in FY13 to 36% in FY16
North America; 17%
Europe; 7%
Latin America; 21%India; 39%
Rest of Asia/Australia; 16%
FY13 EBIT by Region
North America; 23%
Europe; 13%
Latin America; 16%
India; 36%
Rest of Asia/Australia; 12%
FY16 EBIT by Region
Networks: Organization Overview
37
Andy KaplanPresident,
Worldwide Networks
Eric BergerEVP, Digital Networks
Marie JacobsonEVP, Programming &
Production
George ChienSVP, Networks, Asia
Superna KalleSVP, GM, Sony Movie Channel & Cine Sony
Bob BilleciEVP, Technical Operations
T.C. SchultzEVP & MD, Latin America
Ricky OwEVP, Singapore
Steve MoskoPresident, Sony
Pictures Television
Masao TakiyamaSVP, Japan
Kate MarshSVP, Western Europe
Lyle StewartSVP, Central EMEA
Networks: Challenges and Opportunities
38
• Launch channels in new and existing territories
• Increase investment in Crackle U.S. ad and technical infrastructure
• Maximize value in Crackle US and expand internationally (Latin America, UK, Canada)
• Expand SPTL Asia facility to service EMEA channels
• Consider portfolio synergies with GSN
• Grow digital through new or add-on acquisitions
Opportunities
• Grow ad revenues despite the global pressure on ad sales driven by macro economy
• Operate under economic volatility and political uncertainty in Latin America
• Develop growth strategies for smaller up-and-coming territories
• Keep content costs in line
Challenges
• Grow in all regions across the world as newer channels mature to profitability and more mature channels grow or maintain their margins
• Focus next 18 months on maximizing efficiencies in existing operations
• Increase investment in Crackle U.S. advertising and technical infrastructure
MRP Assumptions
Closing
39
Other Ideas for Change
• SPHE
• Management of the Lot
• Outside financing
• AMC
• Expand Embassy Row west coast
• Ad Sales synergies
• Airline sales
40
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