Seth Gilbert, 10-29-2008
Sony warned of financial trouble last week. Now it’s official. Hit with the triple whammy of a unexpected currency fluctuation, weakening consumer spending and mounting losses at the music division, the company reported a 72% drop (y/y) in net income for the fiscal second quarter ended September 30th.
By the numbers, for the 2nd quarter, total revenue was ¥2,072b. At Sept. 30th exchange rates of ¥104 to $1 that translated to about $19.93b. (At Wednesday’s intraday rate of about 97 Yen to the dollar it’s equivalent to near $21.4b). Net income was ¥20.8b or ¥19.83 per diluted share.
Click to Read More
Seth Gilbert, 10-27-2008
Ubisoft CEO Yves Guillemot said in July that he thought “the future of [the gaming] industry depends on [studios] ability to create brands that captivate audiences and to extend those brands to other forms of entertainment.” He’s not alone in that view. With common visual techniques, shared audience demographics and similar story telling narratives the convergence of gaming and movie making is an increasingly common theme. That’s especially apparent at Electronic Arts.
In July, to hasten development of Hollywood relationships, EA signed a deal with talent agency United Artists. At the end of September, EA signed a game development deal with the 300’s director, Zack Snyder. Now, EA is moving ahead with a film deal built around their mercenary themed title, Army of Two.
Click to Read More
Seth Gilbert, 10-24-2008
Whale watching isn’t just a pastime in coastal towns. In financial circles, the biggest of the big, the heaviest of the heavy hitters, aka the “whales,” often draw a crowd too. Investors flock to see where the Buffet’s, the Soros’ and the Icahn’s of the world are deploying their capital. It’s a chance to learn, or maybe even ride the coattails of an expert’s insight to a nice return.
For Carl Icahn watchers, the latest company to watch is Lions Gate. As of June 30th, 2008, filings show Icahn had 3.65% of the “mini-major” production company, or 4,289,508 shares. This month he doubled down.
SEC filings reveal Icahn acquired more than four million additional shares in October. The individual buys, as listed in the filings, are detailed in the table at the end of this article.
Click to Read More
Seth Gilbert, 10-20-2008
Two weeks ago, Netflix provided a window into upcoming earnings with a pre-announcement to reset expectations for the reality of the current economy. Today, the official results debuted. New subscriber additions, as the company warned, were weak but net income was up thirty percent.
Reported net income was $20.4m or 33 cents a share for the third quarter, up from 15.7m (23c/share) for the same period last year. Revenues were in at $341m.
Analysts polled by Thomson Reuters had a consensus estimate of 31cents a share from revenue of $343m.
Click to Read More
Seth Gilbert, 10-8-2008
Now you see it, now you don’t. Real Network’s newly launched DVD copying software platform, RealDVD, has gone from controversial to contained in the blink of an eye. You could say the software has been sequestered.
Friday, days following the program’s launch, with litigation already pending from both sides, U.S. District Judge Marilyn Patel issued a temporary restraining order blocking all sales of the program pending a broader review of the software’s legality.
Tuesday, the TRO was extended. The exact terms haven’t been made public but it appears the judge wants time to gain a more detailed understanding of how the software works and also, to allow the competing sides to prepare expert testimony.
Click to Read More
Seth Gilbert, 10-6-2008
Entertainment industries are sometimes called recession proof. When wallets tighten, retirement gets pushed back, or bills go unpaid, people will spend a little to escape fear and worry. There’s a need for entertainment in tough times, the theory goes. The reality is less forgiving: entertainment like anything else can fall victim to a weakening economy. Entertainment industries are recession resistant not recession proof. Glimpses of August data may be beginning to prove that point.
Mirroring a surprise shortfall in August gaming sales, Netflix came out Monday with a surprise adjustment for their third and fourth quarter guidance. A few weeks ahead of the actual earnings report (October 20th), the Los Gatos company preannounced that third quarter revenue and EPS will fall within prior guidance but subscriber numbers will fall “just below” the low end of guidance.
Click to Read More
Seth Gilbert, 10-1-2008
If content is king, Los Gatos based Netflix seems to be moving to try and grab some sort of throne for their subscription based on-demand video distribution service – and they’re not hesitating, even in spite of the prospect that widespread consumer adoption might be years away. Last week, the company announced catalog boosting deals with CBS and Disney. Today, they added more film and TV content for their streaming video service through a partnership with Liberty Entertainment’s Starz.
Per disclosed terms of the deal, approximately 2,500 programs from Starz library will be added to the “Watch Now” catalog of streaming titles. As with other “Watch Now” content, the programs will be available at no added charge for all Netflix subscribers who pay for an unlimited monthly rental program.
Click to Read More
