SNL Kagan: Media Conglomerates Increasing Focus on TV

CHARLOTTESVILLE: SNL Kagan has analyzed the segment revenues of the six largest media conglomerates and how they are changing, concluding that their focus is shifting more toward TV and away from publishing.

News Corp decided to separate its 21st Century Fox entertainment business this year. In terms of the impact the split had on the company’s financial results, at 21st Century Fox total quarterly revenue is up 16 percent, from $6.24 billion in the prior-year period to $7.21 billion (excluding the results from the spun-off News Corp). During this period, revenues from cable programming increased from $2.54 billion to $2.95 billion, DBS television from $95 million to $1.38 billion, filmed entertainment from $1.98 billion to $2.04 billion, while TV held steady at $1.1 billion.

At Time Warner, revenues from the publishing segment have dropped, from $86 million to $83 million since Q2 2012. TV and filmed entertainment increased, however, from $2.61 billion to $2.94 billion, and networks delivered a gain from $3.6 billion to $3.84 billion.

The Walt Disney Company has announced plans to sell Hyperion’s adult trade publishing imprint. While Disney will retain all of its Disney and Disney-Hyperion branded children’s and young adult book titles and will publish franchise‐based titles from Disney/ABC Television Group, the Hyperion adult trade book division will be sold to Hachette Book Group for an undisclosed amount. Total revenues at the company increased 4 percent year on year to $11.58 billion. Breaking it down by segment, media networks revenues for the quarter increased 5 percent to $5.35 billion, while parks and resorts revenues increased 7 percent and consumer products grew 4 percent. There were, however, decreases in the studio entertainment and interactive segments.

Both CBS Corporation and Viacom have simplified their structures since splitting from one another years ago. CBS has diversified in recent years, but is also shedding some noncore assets, choosing to focus more on its entertainment holdings than its outdoor business. Entertainment revenues in the June quarter were up 18 percent to $2.01 billion, and cable networks revenues gained 16 percent to $518 million. By comparison, Outdoor Americas revenues increased just slightly from $334 million to $335 million and publishing remained constant at $189 million.

At Viacom, total revenues rose by 14 percent year on year, boosted by growth in the media networks (+13 percent) and filmed entertainment (+15 percent) divisions.

Comcast Corporation’s diversified strategy for media conglom NBCUniversal Media is also proving to be positive. For the June quarter, NBCU reported total revenues of $6 billion, up 8.9 percent year on year. Broadcast TV revenues were up 11.6 percent to $1.73 billion and cable networks revenues were up 7.7 percent to $2.41 billion. Filmed entertainment revenues increased 12.8 percent, while theme parks were up just 1.1 percent.