losses

US Traditional Media Outlook, 2013-2017

June 6, 2013 by MarketingCharts staff

PwC-US-Traditional-Media-Outlook-2013-2017-June2013PwC has issued its annual “Entertainment & Media Outlook” report, which contains projections for online and offline media markets through 2017 across various components including advertising revenues and consumer spending. The outlook for traditional media markets is similar to previous forecasts in that TV and out-of-home advertising have the healthiest future, while radio continues to grow at a modest pace and the outlook for print continues to be dim, although losses may slow.

  • TV advertising: CAGR = 5.1%

TV advertising spending is projected to grow from $63.8 billion last year to $66.8 billion this year and $81.6 billion in 2017.
TV is the largest advertising medium in the US, accounting for 38% of total advertising revenues last year. Terrestrial broadcasting remains the domain of the big 4 networks (ABC, CBS, NBC, and Fox), but the multichannel sector (led by TBS, Discovery, and USA Network) represented 35% of TV advertising revenues last year.

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Tuesday, June 11th, 2013 news No Comments

NETFLIX EXPLODES AFTER HOURS BEATING ESTIMATES (NFLX)

Source: http://www.businessinsider.com/netflix-earnings-1q-2013-4

netflix kevin spacey

Netflix announced its first quarter earnings this afternoon.

Revenue is inline with analyst’s expectations but EPS killed and the stock is up about 20% after-hours.

We’re updating this post as we go,so click here for live updates >

The big numbers are:

  • Revenue: $1.02 billion verses $1.02 billion
  • EPS: $0.31 versus $0.20
  • Earnings guidance: sees Q2 EPS $0.23-$0.48 versus expectations of $0.30 EPS
Here’s the full outlook for Q2 2013:
netflix q2 2013 guidance
Netflix added three million subscribers in the first quarter bringing the total to 36 million.
They say two million of the new subscribers were added to the streaming business in the U.S. alone attributed in part to positive reception of the first original series House of Cards. International membership grew by one million.
In all markets Netflix saw growth and improved profits or reduced losses.
In regards to exclusive content and deals with other content providers, Netflix says that, “as we continue to focus on exclusive and curated conte! nt, our willingness to pay for non-exclusive, bulk content deals declines.”

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Monday, April 22nd, 2013 news No Comments

drag2share: Movie Studios Are Setting Themselves Up For Huge Losses

source: http://feedproxy.google.com/~r/businessinsider/~3/YfoamdyaVmU/hollywoods-huge-movie-budgets-2013-3

Here’s a look at some of the biggest film budgets of the past three years and the differences in how they fared opening weekend:movie studio gambles

As you can see, sometimes the risk pays off. “The Avengers” and “The Dark Knight Rises” grossed more than $2.5 billion combined.

So far this year, seven films are estimated to have larger-than-life budgets:

movie budgets


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Wednesday, March 6th, 2013 news No Comments

Mobile Advertising Comes Of Age

Source: http://www.businessinsider.com/millennial-media-ipo-2012-1

 

millennial media ad impressionsMillennial Media, a mobile advertising network, filed for an IPO last week. We were waiting for this, as we’d predicted this would happen this year (though we didn’t think it would happen so soon).

How is Millennial Media’s business?

Pretty good, actually.

Here are the highlights:

  • The company generated $70 million in revenue in the first nine months of 2011, from just $6.2 million in 2008;
  • The company has never had a profitable quarter and is still losing money, $4 million for the first nine months of 2011.
  • It’s pretty big and growing pretty fast: it processed 40 billion ad impressions in December 2011, and impressions are growing fast (see chart); Millennial Media has 16.7% marketshare according to IDC.

The Business

millennial media revenues and lossesYou’ll almost certainly see plenty of headlines about Millennial “never turning in a profit” throughout its road show. That’s correct. It’s also irrelevant.

Millennial is growing fast and into an enormous market opportunity–mobile advertising. It should not be profitable. Gartner thinks mobile advertising will be a $20.6 billion market by 2015, which may be conservative. That’s the opportunity Millennial is going after.

What’s more, Millennial Media seems to be gaining both market and operating leverage.

millennial media advertisersMillennial Media’s gross margin, which is roughly the amount it keeps after payments to publishers, improved from 34% to 39% in the first nine months of 2011 compared to the same period in 2010. This is happening as Millennial is growing both advertisers and spending per advertisers, as you can see in the chart at right.

What’s more, Millennial’s losses are narrowing, as you can see in the chart above.

All of this suggests that Millennial is gaining both market leverage–as it gets more established it can keep more of the revenue it generates for publishers–and operating leverage–gaining operational efficiencies as it scales up.

The Market

Mobile Advertising RevenueOne thing people might be worried about is competition from Apple and Google. We’re not. Here’s why:

  • Even though Google is much bigger than Millennial (see chart at right, using data aggregated and estimated by Business Insider Intelligence), most of that is on owned-and-operated properties. Google’s AdMob network is bigger than Millennial’s but it is not dominant.
  • Apple’s online advertising format/network, iAds, has struggled in the marketplace.
  • Ad networks are not a winner take all market. On the web, there are a few giants, and many profitable smaller players. There’s no reason why it couldn’t be the same on mobile, and Millennial, as the biggest independent player, is well positioned.

THE BOTTOM LINE: Millennial Media looks like a strong business scaling up nicely in an exciting, fast-growing market. It’s kind of a boring business–an ad network, but it seems to be executing well. More importantly, don’t trust the media reports that will inevitably bang on about how Millennial has never been profitable. Yes, that’s true, but it doesn’t matter.

 

 

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Tuesday, January 10th, 2012 news No Comments

"Success Comes Through Rapidly Fixing our Mistakes Rather than Getting Things Right the First Time" [Quotables]

Source: http://lifehacker.com/5842592/success-comes-through-rapidly-fixing-our-mistakes-rather-than-getting-things-right-first-time

"Success Comes Through Rapidly Fixing our Mistakes Rather than Getting Things Right the First Time"This quote comes from Tim Harford, who argues that success is really just a product of failure. He believes we have to try, fail, and quickly correct our mistakes in order to properly succeed. Because failure is just an inevitability, no matter who you are, the key is to get better at recovering from it rather than trying to avoid it altogether.

Harford suggests that there are a few key things we need to pay attention to when dealing with failure. First is avoiding the denial that we’re wrong. He says, “It seems to be the hardest thing in the world to admit we’ve made a mistake and try to put it right. It requires you to challenge a status quo of your own making.” Sometimes we’ll go so far as to chase our losses just to avoid failure, as if accepting the failed situation will make all our effort worthless. In the end, we can’t predict what’s going to work. We can only experiment with trial and error. Failure is an important part of this process, and accepting it makes us capable of actually finding success in the long run.

For more information, check out the full article on The 99 Percent. For another take on the same idea, check out this article in the New York Times.

Why Success Always Starts With Failure | The 99 Percent


You can follow Adam Dachis, the author of this post, on Twitter, Google+, and Facebook.  Twitter’s the best way to contact him, too.


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Thursday, September 22nd, 2011 news No Comments

Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.

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