FIVE FORCES ANALYSIS

asalama

MoviesandEntertainmentNorthAmericaMarketline.pdf

Home >Business & Finance homework help >Management homework help >FIVE FORCES ANALYSIS

MarketLine Industry Profile

Movies & Entertainment in North America

October 2019

Reference Code: 0205-2108

Publication Date: October 2019

WWW.MARKETLINE.COM MARKETLINE. THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED

http://www.marketlineinfo.com/

Movies & Entertainment in North America

Industry Profiles

1. Executive Summary

1.1. Market value

The North American movies & entertainment market grew by 2.9% in 2018 to reach a value of $29,036.2 million.

1.2. Market value forecast

In 2023, the North American movies & entertainment market is forecast to have a value of $30,001.7 million, an increase of 3.3% since 2018.

1.3. Category segmentation

Music & video is the largest segment of the movies & entertainment market in North America, accounting for 53% of the market's total value.

1.4. Geography segmentation

The United States accounts for 91.6% of the North American movies & entertainment market value.

1.5. Market rivalry

The wide range and diversity of audience taste allows movie and music producers scope for significant differentiation in terms of genre and content. This limits rivalry somewhat.

1.6. Competitive Landscape

The North American movies and entertainment market is characterized by the presence of huge multinational companies that operate through a variety of subsidiaries. At the top end of the market, consolidation is evident, with a small number of large companies accounting for the majority of revenues. Companies operating in the market have been facing increasing competition from streaming services such as Spotify and VOD companies such as Netflix and Amazon Prime Video, who have gone on to produce their own original content. The leading players in this market have been responding to this threat, with the likes of Walt Disney and WarnerMedia (AT&T) launching their own streaming services.

Movies & Entertainment in North America

Industry Profiles

TABLE OF CONTENTS

1. Executive Summary 2

1.1. Market value................................................................................................................................ 2

1.2. Market value forecast .................................................................................................................. 2

1.3. Category segmentation ............................................................................................................... 2

1.4. Geography segmentation ............................................................................................................ 2

1.5. Market rivalry............................................................................................................................... 2

1.6. Competitive Landscape ............................................................................................................... 2

2. Market Overview 8

2.1. Market definition .......................................................................................................................... 8

2.2. Market analysis ........................................................................................................................... 8

3. Market Data 10

3.1. Market value.............................................................................................................................. 10

4. Market Segmentation 11

4.1. Category segmentation ............................................................................................................. 11

4.2. Geography segmentation .......................................................................................................... 12

5. Market Outlook 13

5.1. Market value forecast ................................................................................................................ 13

6. Five Forces Analysis 14

6.1. Summary ................................................................................................................................... 14

6.2. Buyer power .............................................................................................................................. 15

6.3. Supplier power .......................................................................................................................... 17

6.4. New entrants ............................................................................................................................. 19

6.5. Threat of substitutes .................................................................................................................. 21

6.6. Degree of rivalry ........................................................................................................................ 23

7. Competitive Landscape 25

7.1. Who are the leading players?.................................................................................................... 25

Movies & Entertainment in North America

Industry Profiles

7.2. Who are the main challengers to the incumbents? ................................................................... 25

7.3. What have been the most significant mergers/acquisitions over the last three years? ............. 26

8. Company Profiles 28

8.1. The Walt Disney Company ....................................................................................................... 28

8.2. Comcast Corporation ................................................................................................................ 34

8.3. AT&T Inc ................................................................................................................................... 39

8.4. Sony Corporation ...................................................................................................................... 43

8.5. Viacom, Inc. .............................................................................................................................. 50

8.6. Vivendi S.A................................................................................................................................ 55

8.7. Spotify AB ................................................................................................................................. 59

8.8. Lions Gate Entertainment Corp. ................................................................................................ 61

8.9. Amazon.com, Inc. ..................................................................................................................... 66

8.10. Netflix, Inc. ................................................................................................................................ 70

8.11. Warner Music Group Corp. ....................................................................................................... 74

About MarketLine ................................................................................................................................... 80

Movies & Entertainment in North America

Industry Profiles

LIST OF TABLES

Table 1: North America movies & entertainment market value: $ million, 2014–18 10

Table 2: North America movies & entertainment market category segmentation: $ million, 2018 11

Table 3: North America movies & entertainment market geography segmentation: $ million, 2018 12

Table 4: North America movies & entertainment market value forecast: $ million, 2018–23 13

Table 5: The Walt Disney Company: key facts 28

Table 6: The Walt Disney Company: Annual Financial Ratios 31

Table 7: The Walt Disney Company: Key Employees 32

Table 8: The Walt Disney Company: Key Employees Continued 33

Table 9: Comcast Corporation: key facts 34

Table 10: Comcast Corporation: Annual Financial Ratios 36

Table 11: Comcast Corporation: Key Employees 37

Table 12: Comcast Corporation: Key Employees Continued 38

Table 13: AT&T Inc: key facts 39

Table 14: AT&T Inc: Annual Financial Ratios 40

Table 15: AT&T Inc: Key Employees 41

Table 16: AT&T Inc: Key Employees Continued 42

Table 17: Sony Corporation: key facts 43

Table 18: Sony Corporation: Annual Financial Ratios 45

Table 19: Sony Corporation: Key Employees 46

Table 20: Sony Corporation: Key Employees Continued 47

Table 21: Sony Corporation: Key Employees Continued 48

Table 22: Sony Corporation: Key Employees Continued 49

Table 23: Viacom, Inc.: key facts 50

Table 24: Viacom, Inc.: Annual Financial Ratios 52

Table 25: Viacom, Inc.: Key Employees 53

Table 26: Viacom, Inc.: Key Employees Continued 54

Table 27: Vivendi S.A.: key facts 55

Movies & Entertainment in North America

Industry Profiles

Table 28: Vivendi S.A.: Annual Financial Ratios 57

Table 29: Vivendi S.A.: Key Employees 58

Table 30: Spotify AB: key facts 59

Table 31: Spotify AB: Key Employees 60

Table 32: Lions Gate Entertainment Corp.: key facts 61

Table 33: Lions Gate Entertainment Corp.: Annual Financial Ratios 62

Table 34: Lions Gate Entertainment Corp.: Annual Financial Ratios (Continued) 63

Table 35: Lions Gate Entertainment Corp.: Key Employees 64

Table 36: Lions Gate Entertainment Corp.: Key Employees Continued 65

Table 37: Amazon.com, Inc.: key facts 66

Table 38: Amazon.com, Inc.: Annual Financial Ratios 68

Table 39: Amazon.com, Inc.: Key Employees 69

Table 40: Netflix, Inc.: key facts 70

Table 41: Netflix, Inc.: Annual Financial Ratios 72

Table 42: Netflix, Inc.: Key Employees 73

Table 43: Warner Music Group Corp.: key facts 74

Table 44: Warner Music Group Corp.: Key Employees 76

Table 45: Warner Music Group Corp.: Key Employees Continued 77

Table 46: Warner Music Group Corp.: Key Employees Continued 78

Table 47: Warner Music Group Corp.: Key Employees Continued 79

Movies & Entertainment in North America

Industry Profiles

LIST OF FIGURES

Figure 1: North America movies & entertainment market value: $ million, 2014–18 10

Figure 2: North America movies & entertainment market category segmentation: % share, by value, 201811

Figure 3: North America movies & entertainment market geography segmentation: % share, by value, 201812

Figure 4: North America movies & entertainment market value forecast: $ million, 2018–23 13

Figure 5: Forces driving competition in the movies & entertainment market in North America, 2018 14

Figure 6: Drivers of buyer power in the movies & entertainment market in North America, 2018 15

Figure 7: Drivers of supplier power in the movies & entertainment market in North America, 2018 17

Figure 8: Factors influencing the likelihood of new entrants in the movies & entertainment market in North

America, 2018 19

Figure 9: Factors influencing the threat of substitutes in the movies & entertainment market in North America,

2018 21

Figure 10: Drivers of degree of rivalry in the movies & entertainment market in North America, 2018 23

Movies & Entertainment in North America

Industry Profiles

2. Market Overview

2.1. Market definition

The movies & entertainment market consists of both producers and distributors of entertainment formats, such as movies and music.

The movie box office segment is valued as the revenues received by box offices from total annual admissions.

The music & video segment covers retail sales of prerecorded music singles, CDs, VCDs, DVDs and Blue-Ray disks, and paid downloadable music and video.

Any currency conversions used in the creation of this report have been calculated using constant 2018 annual average exchange rates.

For the purposes of this report, the global market consists of North America, South America, Europe, Asia-Pacific, Middle East, South Africa and Nigeria.

North America consists of Canada, Mexico, and the United States.

South America comprises Argentina, Brazil, Chile, Colombia, and Peru.

Europe comprises Austria, Belgium, the Czech Republic, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Norway, Poland, Portugal, Russia, Spain, Sweden, Switzerland, Turkey, and the United Kingdom.

Scandinavia comprises Denmark, Finland, Norway, and Sweden.

Asia-Pacific comprises Australia, China, Hong Kong, India, Indonesia, Kazakhstan, Japan, Malaysia, New Zealand, Pakistan, Philippines, Singapore, South Korea, Taiwan, Thailand, and Vietnam.

Middle East comprises Egypt, Israel, Saudi Arabia, and United Arab Emirates.

2.2. Market analysis

The North American movies & entertainment market has been volatile in recent years with decline seen in 2017. The market recovered with moderate growth in 2018. Sluggish growth is expected in the forecast period to 2023.

The US accounts for the majority of the movies & entertainment market in this region, accounting for 91.6% of the value in 2018. In all three markets, the US, Canada, and Mexico, the box office segments have been growing while each country’s music & video segment has been declining. In the US, the box office segment performed particularly well in 2018, growing by 8.8% to reach $12.0bn in 2018. This growth was spurred by popular new cinema releases, including Black Panther which grossed over $700m at the domestic box office in 2018 and Avengers: Infinity War with a domestic gross of $678.8m. A similar situation was also seen in Canada where US films fared particularly well. Domestic cinema releases also fared quite well, including 1991, La Bolduc, and La chute de l’empire américain.

The North American movies & entertainment market had total revenues of $29,036.2m in 2018, representing a compound annual growth rate (CAGR) of 1.1% between 2014 and 2018. In comparison, the Canadian market declined with a compound annual rate of change (CARC) of -2.6%, and the Mexican market increased with a CAGR of 7.1%, over the same period, to reach respective values of $1,443.4m and $1,005.5m in 2018.

Music and video piracy remains a significant issue in this market, with the proliferation of illegal streaming and download sites becoming increasingly difficult to regulate. While growth has been good in Mexico prior to 2018, this market has been hindered from reaching its full potential due to the prolific nature of piracy in the country. So much so that in a report in April 2019 on intellectual property theft (notably music and movies), the Office of the United States Trade Representative included Mexico on its 'watch list' countries.

Movies & Entertainment in North America

Industry Profiles

The music & video segment was the market's most lucrative in 2018, with total revenues of $15,388.1m, equivalent to 53% of the market's overall value. The box office segment contributed revenues of $13,648.2m in 2018, equating to 47% of the market's aggregate value.

The performance of the market is forecast to decelerate, with an anticipated CAGR of 0.7% for the five-year period 2018 - 2023, which is expected to drive the market to a value of $30,001.7m by the end of 2023. Comparatively, the Canadian market will decline with a CARC of -1.8%, and the Mexican market will increase with a CAGR of 5.6%, over the same period, to reach respective values of $1,315.1m and $1,320.0m in 2023.

Sluggish overall growth in this market is expected as declines in the music & video segment offsets solid box office growth. The music & video market is struggling amidst the growing popularity of streaming services, with the likes of Netflix and Spotify growing from strength to strength. SVOD platforms are become increasingly popular in the filmed entertainment sector, significantly hindering growth in both physical and download movie sales. Similarly, music streaming services are increasingly replacing physical music sales and digital downloads. The online music streaming market in the US is expected to grow with a CAGR of 13.3% between 2018 and 2023 to reach a value of $10.1bn.

Meanwhile, growth at the box office will remain robust as movie theaters increasingly adopt digital screens, increase ticket prices and diversify ticket discounts. What’s more, a spate of eagerly awaited movie releases, including Toy Story 4 (2019), Frozen 2 (2019), Avatar (2020), and Fast and Furious 9 (2020), will help to drive growth.

Movies & Entertainment in North America

Industry Profiles

3. Market Data

3.1. Market value

The North American movies & entertainment market grew by 2.9% in 2018 to reach a value of $29,036.2 million.

The compound annual growth rate of the market in the period 2014–18 was 1.1%.

Table 1: North America movies & entertainment market value: $ million, 2014–18

Year $ million € million % Growth

2014 27,755.3 23,501.3

2015 28,641.4 24,251.6 3.2%

2016 28,656.0 24,263.9 0.1%

2017 28,223.9 23,898.0 (1.5%)

2018 29,036.2 24,585.9 2.9%

CAGR: 2014–18 1.1%

SOURCE: MARKETLINE M A R K E T L I N E

Figure 1: North America movies & entertainment market value: $ million, 2014–18

SOURCE: MARKETLINE

M A R K E T L I N E

Movies & Entertainment in North America

Industry Profiles

4. Market Segmentation

4.1. Category segmentation

Music & video is the largest segment of the movies & entertainment market in North America, accounting for 53% of the market's total value.

The Box office segment accounts for the remaining 47% of the market.

Table 2: North America movies & entertainment market category segmentation: $ million, 2018

Category 2018 %

Music & Video 15,388.1 53.0%

Box Office 13,648.2 47.0%

Total 29,036.3 100%

SOURCE: MARKETLINE M A R K E T L I N E

Figure 2: North America movies & entertainment market category segmentation: % share, by value, 2018

SOURCE: MARKETLINE

M A R K E T L I N E

Movies & Entertainment in North America

Industry Profiles

4.2. Geography segmentation

The United States accounts for 91.6% of the North American movies & entertainment market value.

Canada accounts for a further 5% of the North American market.

Table 3: North America movies & entertainment market geography segmentation: $ million, 2018

Geography 2018 %

United States 26,587.4 91.6

Canada 1,443.4 5.0

Mexico 1,005.5 3.5

Total 29,036.3 100.1%

SOURCE: MARKETLINE M A R K E T L I N E

Figure 3: North America movies & entertainment market geography segmentation: % share, by value, 2018

SOURCE: MARKETLINE

M A R K E T L I N E

Movies & Entertainment in North America

Industry Profiles

5. Market Outlook

5.1. Market value forecast

In 2023, the North American movies & entertainment market is forecast to have a value of $30,001.7 million, an increase of 3.3% since 2018.

The compound annual growth rate of the market in the period 2018–23 is predicted to be 0.7%.

Table 4: North America movies & entertainment market value forecast: $ million, 2018–23

Year $ million € million % Growth

2018 29,036.2 24,585.9 2.9%

2019 29,105.8 24,644.8 0.2%

2020 29,249.1 24,766.1 0.5%

2021 29,675.2 25,126.9 1.5%

2022 29,842.9 25,268.9 0.6%

2023 30,001.7 25,403.4 0.5%

CAGR: 2018–23 0.7%

SOURCE: MARKETLINE M A R K E T L I N E

Figure 4: North America movies & entertainment market value forecast: $ million, 2018–23

SOURCE: MARKETLINE

M A R K E T L I N E

Movies & Entertainment in North America

Industry Profiles

6. Five Forces Analysis

The movies & entertainment market will be analyzed taking producers and distributers of film and music as players. The key buyers will be taken as retailers and cinemas, and suppliers of equipment and staff as the key suppliers.

6.1. Summary

Figure 5: Forces driving competition in the movies & entertainment market in North America, 2018

SOURCE: MARKETLINE

M A R K E T L I N E

The wide range and diversity of audience taste allows movie and music producers scope for significant differentiation in terms of genre and content. This limits rivalry somewhat.

The movies and entertainment market comprises the following segments: video retail, box office, and music sales. The latter remains significant, although the two film segments account for the majority of this market. This analysis will therefore largely focus on video retail and box office sales.

The movies and entertainment market remains an integral part of popular culture, and still has a large number of buyers and investment. Buyers tend to be large multiplex cinemas or retail chains, which have significant financial muscle, through to small independent shops and cinemas. Suppliers to the market include companies able to deliver a wide range of skilled crew and equipment, as well as creative individuals such as actors, directors and writers. Supplier power is weakened for those that solely rely on business in the film industry. Entry is increasingly possible on a small scale, due to the greater affordability of digital cameras and computer equipment, as well as the ease of distribution over the internet. However, such entrants have to compete with extremely large Hollywood players with substantial marketing and production budgets. Substitutes include other forms of entertainment, illegal downloads and online streaming, although the movie industry has strongly campaigned for the tightening of copyright laws.

The music industry has changed dramatically with its shift towards digital income. Large retail buyers have suffered significantly and lost considerable power, with iTunes and similar providers becoming increasingly dominant. Suppliers to the market include a similarly wide range of skilled crew and equipment, as well as creative individuals such as singers, musicians and producers. Supplier power is weakened by their strong reliance on the music industry. Again, entry is increasingly possible given the ease of distribution on the internet. Substitutes also include illegal downloads and online streaming. Many of the issues facing the movies market are therefore similar to those in the music business.

Movies & Entertainment in North America

Industry Profiles

6.2. Buyer power

Figure 6: Drivers of buyer power in the movies & entertainment market in North America, 2018

SOURCE: MARKETLINE

M A R K E T L I N E

In this market, there are some companies present with vertical integration from production through to exhibition or retail. One example is The Walt Disney Company, which produces motion pictures (including through its Marvel, Pixar, and Lucasfilm brands and its recently acquired Fox Family and Fox Animation, 20th Century Fox, and Fox Searchlight Pictures brands), distributes DVDs to retailers and also sells through its own-brand Disney stores, as well as being a part-owner of the online streaming service, Hulu. Such integration generally falls foul of anti-trust laws in the US, following the well-known ‘Paramount ruling’ of 1948. However, in the US and many other countries, it is common for a company to operate in both production and distribution areas, distributing both its own films and those of other film-making concerns. The presence of such incumbents weakens buyer power significantly.

Buyers in this market range in size from large retail and multiplex cinema chains through to small independent shops and cinemas. These larger buyers experience strong financial muscle which translates into a higher negotiating power. Such buyers include retailers such as Wal-Mart and Amazon, and cinema chains such as AMC Entertainment, Cineplex Entertainment, and Cinépolis. Players are reliant on revenues from such buyers, as the loss of business from these large buyers could have a significant negative impact on sales. Producers of big budget films, such as the loss-making Robin Hood (2018), which had a production budget of around $100m, are clearly reliant on strong box office sales to break even and hopefully provide a profit. If a large cinema chain such as AMC did not show such a film, revenues would be severely hit. Likewise, smaller budget niche films, which are unlikely to be shown in large multiplexes, generate revenues from exhibition in smaller, independent cinemas. Such reliance significantly increases buyer power.

Brand loyalty is weak, with buyers likely to switch between players due to the absence of switching costs. Essentially, players all offer the same products (films or music), although the differentiation in quality can be stark. Buyers are prone to switch as they must buy films that are likely to be successful at the box office and so generate revenues. Conversely, box office buyers are not likely to be particularly price sensitive as they will need to buy films that attract large audiences, whereas big retailers may be more sensitive since they are less reliant on film or music sales. Cinemas may experience stronger brand loyalty to particular directors, actors and actresses as they may help attract audiences to a film. End-consumer pull through is going to be of significant importance to all buyers in this market. Cinemas need to show what the consumers want, while retailers need to stock films or music that cater to consumer demand. This slightly weakens buyer power.

Buyers are unlikely to backward integrate into the business sector of players due to the strong level of differentiation between these businesses. Players are more likely to forwards integrate into the business of buyers, and could do this by establishing their own retail premises or online sites, or by acquiring a company already involved in film exhibition.

Movies & Entertainment in North America

Industry Profiles

Many larger retailers have diversified operations and are not reliant on music and film sales, though these do account for a significant sales proportion. Cinemas, however, are entirely reliant on players’ products. This significantly reduces buyer power.

In terms of the download market, there are a number of large important buyers, including Amazon (Amazon Prime Video and Amazon Music), Google (Google Play), Apple (iTunes) and Spotify who all hold strong positions in the market. The loss of one such buyer to music and film producers/distributors would be severely felt. A degree of backwards integration is also evident; for example, Amazon now produces its own original content through Amazon Prime Video.

Overall, buyer power is assessed as moderate.

Movies & Entertainment in North America

Industry Profiles

6.3. Supplier power

Figure 7: Drivers of supplier power in the movies & entertainment market in North America, 2018

SOURCE: MARKETLINE

M A R K E T L I N E

In order to make a motion picture, a skilled crew with a range of technical skills is needed. Such skills may include costume and set design, and lighting and cinematography. Furthermore, actors, a screenwriter and a director will also be required to coordinate the project. It is common for these professionals to work freelance and be hired for a particular film. Their supplier power is very sensitive to their individual skills and reputations. For example, an award winning costume designer would experience stronger supplier power compared to a costume designer at the beginning of their career. For this reason, it is difficult for market players to integrate backwards and switching costs are likely to be high during production, giving suppliers greater power. This strength is moderated by the large choice of suppliers available pre-production.

Film production companies also require equipment such as cameras, film stock, lighting, sound, stunt and action equipment. Many film production companies may set up deals with suppliers to benefit both sides. A classic example of this would be the supply of cars and watches in James Bond films, with actors and film scenes later used in, for instance, Aston Martin or Omega commercials. Certain supplies, such as cameras, are likely to be bought from a large supplier and re-used. Film stock will be bought in bulk from large companies, such as Fujifilm or Kodak. Sony is also a provider of film stock, giving a good example of how backward integration is achievable by market players.

Suppliers able to provide products to major, international film companies generally tend to be large themselves. However, supplier power is weakened in some cases, as the use of substitute inputs is a viable option. For example, materials used for costumes and sets can be substituted with cheaper alternatives. In addition, the use of CGI effects and the popularity of animated films reduces the need for certain suppliers, lowering their power.

For major market players, quality is of high importance. This means that suppliers can often negotiate higher prices due to their differentiated input, which increases their power. However, some suppliers may rely on the film production market for revenues. Supplier power is weakened for such suppliers. Other suppliers, such as those supplying make-up and materials for costumers, can supply to a variety of different customers and so experience increases power.

Supplier power may increase in the future as skilled crews and creative artists are able to distribute their own productions more easily on the internet. Major releases however, such as Avengers: Infinity War (2018) and Black Panther (2018), which had respective worldwide grosses of $2.05bn and $1.3bn in 2018, remain backed by large studios.

Movies & Entertainment in North America

Industry Profiles

In terms of music production, suppliers will include musicians, the power of which will vary depending on popularity and demand. Other inputs will include employees with a range of technical skills for production and editing of the final product. Music production companies may hire these professionals permanently or on a freelance basis.

Overall, supplier power is assessed as moderate.

Movies & Entertainment in North America

Industry Profiles

6.4. New entrants

Figure 8: Factors influencing the likelihood of new entrants in the movies & entertainment market in North America, 2018

SOURCE: MARKETLINE

M A R K E T L I N E

The market is relatively fragmented, with buyers required to provide products to a wide range of audiences with varying tastes and preferences. While blockbuster movies require considerable up-front investment that only major companies can afford, the diversity of audiences in this market means that smaller players can thrive.

In this market, low cost switching facilitates the fact that buyers are prone to switch between players. Buyers, such as multiplex cinemas, may experience a certain degree of loyalty to certain producers of films, if they have a history of producing popular and successful films. However, this brand loyalty is limited.

Economies of scale are generally important in this market, with top-grossing films having usually been produced by an extremely large company. However, small-scale entry is possible, perhaps by producing more niche offerings. Small- scale market entry is further encouraged by the development of affordable high-definition digital video cameras that can rival 35mm film quality, easy-to-use computer editing software and the increasing visibility of independent film festivals. Full-length films are often showcased at film festivals such as Sundance, Cannes, Venice and Berlin. Award winners from these exhibitions are more likely to get picked up for distribution by major film studios.

Fixed costs can be very high and film budgets are typically divided into four sections. Above the line expenses refer to the individuals involved in the creative process of a film, such as the screenwriter, director and actors. Big name actors can be extremely expensive, but can help to drive audiences to a film. Below the line expenses refer to the individuals who are involved in the physical production of a film, and include roles such as boom operator, make-up artist, and sound engineer. Post production expenses refer to stages of production that occur after the shooting of a film. This can include editing the picture, editing the music, and adding special effects. Additional expenses include technical equipment, locations, props, and insurance. Despite this, some low-budget films have been extremely successful at the box office. One example is Paranormal Activity, released in 2007, which had a budget of $15,000 and went on to gross over $193m worldwide. Furthermore, having the funds to facilitate a big budget film does not necessarily guarantee success at the box office. One of the biggest loss-making films of recent times was Mortal Engines (2018) with a production budget of over $100m and suffered a loss of an estimated $174.8m.

The film industry is subject to restrictions and censorship that other artistic mediums are not. In the US, the Motion Picture Association of America rates films based on their suitability for audiences. Ratings range from G (general audiences) to NC 17 (no admittance to those aged 17 and under). Ratings can significantly impact the box office

Movies & Entertainment in North America

Industry Profiles

takings of a film. In Canada, films are classified by six different agencies, each one part of a provincial government. In Mexico, age ratings for motion pictures are issued by the General Directorate of Radio, Television and Cinematography. Films given an A rating are suitable for all age groups, B ratings for those aged 12 and over, B-15 rated films are not recommended for children under 15, C ratings are for those aged 18 and over, while D ratings are adult movies. Ratings can significantly impact the box office takings of a film. Therefore, many filmmakers may edit certain scenes or shots in their films in order to obtain a lower rating, thereby expanding their potential customer base.

Additional barriers to entry are the need to access distribution and exhibition networks. Smaller production companies can use the services of sales agents to help with this, but they will be competing with the major studios, both domestic and foreign, that may have well-established distribution systems in place, sometimes even running their own distribution network.

Whilst access to suppliers may be relatively easy, large incumbent players are unlikely to be acquiescent to a new entrant on a big-scale. Smaller independent production companies are therefore able to develop quite successfully but unable to turn themselves into a major competitor with such ease. The costs required to protect intellectual property on a large scale are also significant for major players, further weakening the threat of new entrants.

US films are dominant in this region. All of the films in the US box office top 10 for 2018 were produced or co- produced in the US. As such, foreign entry to the US box office may prove difficult. The top 10 highest grossing films at the Mexican box office in 2018 were US films including Avengers: Infinity War, Incredibles 2 and Jurassic World: Fallen Kingdom. A feature of the Canadian market relevant to new entrants is the existence of Anglophone and Francophone communities, which have distinct patterns of demand. In terms of Canadian produced movies, three out of the top 10 in 2018 were English-language movies, with the remaining seven being French-language.

In the US, the film industry receives little support at the federal level, although some exists at state level. Successful market entry will require careful assessment of the nature of state support.

In North America, the market for movies and entertainment has been volatile in recent years, with stagnation in 2016 being followed by decline 2017, although recovery was evident in 2018. Such factors as video and music piracy have an impact on this market. In the US, the physical DVD business is crumbling. Demand for digital video has helped to offset these declines to a certain extent in previous years, but the growth of streaming services such as Netflix and Amazon Prime Video is damaging the download market. The music segment in particular is struggling, which does not bode well for companies wishing to enter this segment of the market. This is largely due to the decline in not only physical music sales, but also digital downloads as subscription streaming services become more popular.

Overall, the likelihood of new entrants to this market is assessed as moderate.

Movies & Entertainment in North America

Industry Profiles

6.5. Threat of substitutes

Figure 9: Factors influencing the threat of substitutes in the movies & entertainment market in North America, 2018

SOURCE: MARKETLINE

M A R K E T L I N E

Substitutes to movies can exist in terms of theater and other forms of entertainment. However, these have successfully existed alongside the movie industry and can share audiences.

Substitutes in terms of distribution channels, on the other hand, can have an effect on market players. Companies such as Apple and Amazon have become involved in the broadband movie market. Additional competition comes from video streaming services, such as Amazon Prime Video and Netflix In the US, Netflix had 58.5 million subscribers by the end of 2018, compared to 52.8 million subscribers at the end of 2017. In Canada, Netflix has seen strong growth, growing to approximately 6.8 million subscribers by the end of 2018, up from 6.1 million in 2017. Penetration of the internet in Mexico has grown from 21.7% in 2008 to 68.2% 10 years later in 2018, which has boosted the market in this country. While companies such as Amazon and Netflix act as buyers to the leading players in this market, the substitution threat comes in the form of original content. Netflix original series such as Stranger Things, Orange is the New Black, and House of Cards have become worldwide hits, as well as a spate of original movies.

Equally, Disney and Comcast have created their own online service with Hulu and the large studios maintain the copyrights being used. The real loser in this switch is therefore retail buyers. The move towards online distribution also widens the other forms of entertainment that can be substituted, such as online gaming, social networks and learning, yet also provides further opportunities for advertising and film related merchandise.

However, this form of distribution substitute can also be carried out illegally, which can affect market player revenues. Consumers can illegally buy films that have just left the cinema that are not available to buy legally, though they can often be of poor quality. The level of piracy, and the way legislators have responded, varies significantly from country to country. For example, the US government has clamped down on such activities, shutting down websites such as Megaupload, one of the largest file-sharing websites. The website was accused of costing copyright holders more than $500m in lost revenues. The site, however, was re-launched in 2013 from New Zealand, one year after being taken down by the FBI. Canada was home to some of the more prolific P2P sites implicated in illegal file-sharing, but in June 2012, a bill was passed to tighten the copyright law with regards to sharing content online. However, the increasing proliferation of video streaming and sharing sites have become increasingly difficult to regulate.

However, the actual effect of such piracy websites on revenues is contestable. Seven of the 10 highest grossing films of all time worldwide were released in the past five years, including Avengers Endgame (2019), Star Wars (2015) and

Movies & Entertainment in North America

Industry Profiles

Avengers: Infinity War (2018). This indicates both that illegal downloads may not be as threatening as first thought and that the opportunity of widening audiences provided by emerging markets is becoming realized.

The recorded music market demonstrates that new formats offering distinct advantages to the end-user can present a serious threat to existing formats, even where the latter is cheaper. In the early 1980s, CDs were considerably more expensive than vinyl and cassette formats, and imposed significant switching costs because CD players were also very expensive. Nevertheless, the new format offered genuine advantages to the consumer, such as high quality sound and resistance to degradation in normal use. This led ultimately to the complete collapse of the pre-recorded cassette market, and relegated the vinyl album to niche markets. Similarly, CDs have been largely replaced by digital downloads, because these offer significant advantages: e.g. the ability to purchase individual tracks, and the ease with which they can be used in portable MP3 players and phones. The speed with which the new, alternative formats undermined the existing format, sometimes despite higher prices and switching costs, indicates that buyers found the substitutes highly advantageous.

Sales of recorded music are currently being hugely undermined by the growth of digital music streaming. Music streaming sites such as Spotify have grown in popularity and had a detrimental impact on not only physical music sales, but also digital downloads. Globally, music streaming grew by over 40% in 2018, while other forms of music sales declined. In the US, revenue from music streaming grew with a CAGR of 49.0% between 2014 and 2018 to reach a value of $5.4bn.

Overall, there is a strong threat of substitutes in this market.

Movies & Entertainment in North America

Industry Profiles

6.6. Degree of rivalry

Figure 10: Drivers of degree of rivalry in the movies & entertainment market in North America, 2018

SOURCE: MARKETLINE

M A R K E T L I N E

In the movies and entertainment market, there are a number of large market players, including some of the largest global production and distribution companies. However, there are numerous smaller companies, including independents. The wide range and diversity of audience taste allows films scope for significant differentiation in terms of genre and content. This limits rivalry somewhat.

However, the larger companies in this market make for formidable incumbents, increasing rivalry. What’s more, some consolidation in this market is evident, with larger companies acquiring smaller incumbents. For example, in 2016, Lions Gate Entertainment, a movie production company in the US, acquired Starz Entertainment, LLC, an integrated media and entertainment company, for $4.4bn. Many large players are merging; an example of this is AT&T’s acquisition of Time Warner in 2018 in an attempt to compete with the growing popularity of streaming services. Similarly, in March 2019, Walt Disney completed its acquisition of 21st Century Fox for approximately $71bn, significantly altering the competitive landscape. Moreover, Disney is cementing its position in the streaming market, following competition from the likes of Netflix and Amazon, agreeing to acquire Comcast's one-third stake in Hulu in May 2019, which would give the company full control of the streaming service. What’s more, the company is launching a new streaming service in later in 2019 called Disney+.

In the Canadian market, there are certain niche areas in which the major international production companies do not compete. For example, Anglophone and Francophone films are produced by domestic companies amongst which the competition is less fierce due to the smaller size and number of such businesses. Similarly, in Mexico, rivalry is less intense amongst domestic players that produce Spanish speaking movies for the local market. These companies tend to be smaller in size and number.

The leading market players typically produce high budget films, aiming to recoup their investment with wide and heavily-publicized theatrical releases, as well as television, DVD and online sales. Such high fixed costs serve to intensify rivalry. On the other hand, such outlay is not always necessary to produce a successful movie.

In terms of the box office, success at the top of the box office charts is limited to a handful of companies, reducing the rivalry level significantly. For example, six out of the top 10 movies at the US 2018 box office were produced through subsidiaries of Walt Disney (including Fox, which was acquired in 2019), two were produced by Universal Pictures (owned by Comcast), while WarnerMedia (AT&T) and Paramount Pictures (Viacom) produced one each of the top 10. Extending this to the box office top 50, Walt Disney was responsible for 12 movies, Universal (Comcast) for 13,

Movies & Entertainment in North America

Industry Profiles

WarnerMedia (AT&T) for 13, Paramount Pictures (Viacom) and Sony both produced five of the top 50 movies, while MGM Holdings and Lionsgate produced one each. Four out of the top 10 movies at the Canadian 2018 box office were produced through subsidiaries of Walt Disney (including Fox, which was acquired in 2019), two were produced by Sony, two by Universal (Comcast), while WarnerMedia (AT&T) and Paramount Pictures (Viacom) produced one each of the top 10. A very similar situation is seen in the Mexican market. This demonstrates just how consolidated the box office segment is at the top end of the market.

A similar scenario is seen in the music segment of this market. Of the Billboard top 10 music albums for 2018 in the US, six were distributed by subsidiaries of Universal Music Group (owned by Vivendi), three by Warner Music Group, and one by Sony. Similarly, in Canada, eight were distributed by subsidiaries of Universal Music Group (owned by Vivendi), one by Warner Music Group, and one by Sony.

Major film production companies have similar business models and structures and some also specialize in other markets. A number of the large players are media conglomerates, operating in a diverse range of markets spanning movies, music, internet, and television. One example is Sony Corporation, which also manufactures digital and electronic products. The similar nature of each company's business allows each firm to better predict the other's moves and the diverse nature of some companies reduces the impact of difficult conditions in any one market, both tending to reduce rivalry.

Exit barriers are low because players tend to use external suppliers for making films and many film sets are one-off costs or can be shot on location. Film studios can also be sold to a number of different media industries, or if necessary converted to other uses.

Once a film is made, it is relatively easy to expand sales due to the ‘weightless’ nature of the product; it can simply be sold as a digital download in many countries, for example. It is therefore easy to deliver more of the product if demand rises. Buyers are also able to switch between players easily, as switching costs are low. These two factors intensify rivalry.

Overall, rivalry is assessed as moderate in this market.

Movies & Entertainment in North America

Industry Profiles

7. Competitive Landscape

7.1. Who are the leading players?

The Walt Disney Company is the leading player in this market, with the entertainment conglomerate producing four out of the top 10 highest grossing movies at the US and Mexican box offices, and three at the Canadian box office in 2018. The company is diversified, operating in the media and entertainment markets, with its major products and services including resorts, hotels, cruise lines, studio entertainment such as animated motion pictures, direct-to-video content, musical recordings, live stage plays, books, magazines, comic books, media networks, cable programming services, radio broadcasting, television broadcasting, and operations of internet sites. The company is also diversified geographically with operations in the US, Canada, Europe, Asia-Pacific and Latin America.

Comcast operates as a leading player in this market through its NBCUniversal Media (Universal) subsidiary, which it acquired in 2009. The company, through its Universal Pictures division, produces, markets and distributes filmed entertainment worldwide. Universal produced 13 of the top 50 highest grossing movies at the US box office and 10 at the Canadian box office in 2018. It also operates Universal branded theme parks in Hollywood and Orlando, as well as distributing news, entertainment and sports programming through a wide network of its owned local television stations and affiliated stations across the US.

AT&T is a leading player in the movies and entertainment market through its WarnerMedia subsidiary. AT&T completed its acquisition of Time Warner in 2018, with the company subsequently being renamed WarnerMedia. The company produced 13 of the top 50 at the US box office and 10 of the top 50 at the Mexican box office in 2018. The company produced one of the top 10 movies at the Canadian box office in 2018, with A Star is Born being the eighth highest grossing movie of the year. WarnerMedia operates various media brands such as Cinemax, Adult Swim, CNN, TBS, HBO, Cartoon Network, Warner Bros, New Line Cinema and TNT.

Sony Corporation operates as a leading player in both the movie and music segments of this market through its Sony Pictures and Sony Music subsidiaries. The company produced five of the top 50 highest grossing movies at the US box office, as well as distributing the Travis Scott music album – Astroworld, which was ranked number seven in the US top 100 billboard chart for 2018. Similarly, Sony produced two of the top 10 highest grossing movies at the Canadian box office in 2018, as well as distributing the P!nk music album – Beautiful Trauma, which was ranked number nine in the Canadian top 10 billboard chart. Sony Corporation also operates in other diversified markets, with the company having nine business segments: game and network services, home entertainment and sound, mobile communications, financial services, pictures, devices, imaging products and solutions, music, and all other. The company is also diversified globally.

7.2. Who are the main challengers to the incumbents?

Currently, the main challengers to the leading players in this market come from streaming services such as Spotify and VOD companies such as Netflix and Amazon Prime Video, who have gone on to produce their own original content. SVOD platforms are become increasingly popular in the filmed entertainment sector, significantly hindering growth in both physical and download movie sales. Similarly, music streaming services are increasingly replacing physical music sales and digital downloads; the online music streaming market in the US is expected to grow with a CAGR of 13.3% between 2018 and 2023 to reach a value of $10.1bn. Physical sales of recorded music in Canada declined by over 28%

Movies & Entertainment in North America

Industry Profiles

in 2018, while revenue from digital downloads fell by around 24%. Meanwhile, music streaming revenue grew by almost 32% in 2018. In 2018, physical recorded music sales accounted for 24% of recorded music sales in Mexico, while digital formats accounted for 66%. The growth of internet penetration in households across Mexico has aided the growth of challengers in this market. Internet penetration in Mexico has grown from 21.7% in 2008 to 68.2% 10 years later in 2018.

However, while these companies act as challengers, they also offer significant revenue streams to the leading players, making for a complicated relationship. For example, Netflix spent $12.04bn on content in 2018, with the leading players benefitting from this. The likes of Spotify, Netflix and Amazon act as both challengers and buyers to the leading players.

In the music segment, the streaming services offered by companies such as Spotify and Amazon Music are having a detrimental effect on physical music sales and digital downloads. In 2018, online music streaming became the biggest revenue source in the music industry, overtaking the physical and download market. Globally, subscription audio streaming accounted for 37% of recorded music revenues in 2018 and ad-supported streaming accounted for a further 10%. This significantly dwarfed the 25% of the global recorded music industry accounted for by physical music sales and 12% by digital downloads (both of which make up the music segment of this report). However, as previously mentioned, companies such as Spotify and Amazon Music also act as buyers in this market, meaning the threat they pose to incumbents is not straight forward. While streaming has hindered the physical and download sales of recorded music for the likes of Sony and Universal Music Group, these incumbents do benefit from the revenue generated through streaming. For example, in Q1 2019, 53.2% of Sony’s recorded music revenues were accounted for by streaming.

In terms of SVOD platforms acting as challengers to the incumbents in this market, this has become increasingly apparent with the surge in original content offered by the likes of Netflix and Amazon Video. Netflix is currently the leading video streaming platform with over 148 million subscribers worldwide as of Q1 2019 and an expected original content budget of $15bn for 2019. In the US, Netflix had 58.5 million subscribers by the end of 2018, compared to 52.8 million subscribers at the end of 2017. In Canada, Netflix has seen strong growth, growing to approximately 6.8 million subscribers by the end of 2018, up from 6.1 million in 2017. Netflix is growing as a challenger in Mexico and has more than 50 projects in the country in different stages of production that include original content and co- productions for 2019 and 2020. Additionally, Netflix confirmed the opening of a Mexico City office for this year. Netflix confirmed four local films in different stages of development that will be added to its offering over the next two years. The projects include Como caído del cielo, a musical comedy inspired by the songs of Mexican legend Pedro Infante; Fondeados, with Marcos Bucay (Club de Cuervos; Yo, Potro) in his feature film directorial and writer debut; Se busca papá, a family film produced by Corazón Films; and Ahí te encargo, a modern take on a romantic comedy, written by Tiaré Scanda and Leonardo Zimbrón.

Netflix has produced a wealth of original content that has been met with success, for example, Netflix original series ‘Stranger Things’ is the highest ranked show on Internet Movie Database (IMDb). Such is the threat posed by Netflix that many of the leading incumbents in this market have either launched or are in the process of launching their own SVOD platforms. For example, Walt Disney is releasing its Disney+ streaming service in the US in November 2019, with the Canadian release date expected to be in the first quarter of 2020. Amazon Video is a further challenger in the US and Mexican markets, with the service also set to be launched in Canada later this year (2019).

Illegal music and video piracy sites also act as significant challengers to the leading incumbents in this market. In 2018, the US topped the list of countries with the most visits to piracy sites, with approximately 17 billion visits throughout the year. Canada is currently ranked as 11th in the world for video piracy with around 2.5 billion visits to piracy sites last year. An April 2019 report on intellectual property theft (notably music and movies) by the Office of the United States Trade Representative included Mexico on its 'watch list' countries. The increasing proliferation of video streaming and sharing sites online has become increasingly difficult to regulate. While the growth of legal streaming platforms has reduced the impact that illegal streaming and downloading have on players in this market, visits to these sites are still prevalent.

7.3. What have been the most significant mergers/acquisitions over the last three years?

Movies & Entertainment in North America

Industry Profiles

Consolidation in this market is evident, with larger companies acquiring smaller incumbents. For example, in 2016, Lions Gate Entertainment, a movie production company in the US, acquired Starz Entertainment, LLC, an integrated media and entertainment company, for $4.4bn. Similarly, in Q1 2019, Universal Music Group (owned by Vivendi) acquired Ingrooves Music Group – a smaller company that held around 2% of the US recorded music market.

One of the largest mergers in recent times occurred in 2018 when AT&T acquired Time Warner for $85bn. This deal was largely a response to the threat posed by SVOD services such as Netflix, with three WarnerMedia subscription video-on-demand services planning to be launched later in 2019 and in 2020. HBO Max is the service that is being positioned as the main competitor to the likes of Netflix, Amazon Video, and Walt Disney’s upcoming services Disney+. HBO Max will launch in the US in spring 2020 and will have exclusive streaming rights to popular television series Friends, with the series being removed from Netflix in 2019. Other content owned by AT&T will also be pulled from other streaming services and be aired exclusively through the HBO Max platform.

Another significant acquisition comes in the form of Walt Disney’s agreement to buy Comcast’s share of Hulu (approximately one third). With this acquisition, Disney will have full control of the Hulu streaming service. Walt Disney is launching its Disney+ streaming service in the US in November 2019 and in Canada in 2020 and has commented that it is considering offering Hulu to customers bundled in with the new platform.

In March 2019, Disney closed its $71.3bn 21st Century Fox acquisition. As is the trend in this market, this acquisition forms part of Disney’s plan to position itself as one of the largest streaming companies through its ESPN+ service, Hulu, and upcoming Disney+ platform. With this acquisition, Disney has more movies, series and intellectual property which it can offer through its SVOD offerings. The acquisition also helps to cement Walt Disney’s leading position at the North American box office.

Movies & Entertainment in North America

Industry Profiles

8. Company Profiles

8.1. The Walt Disney Company

8.1.1. Company Overview

The Walt Disney Company (Walt Disney), together with its subsidiaries, is a diversified worldwide entertainment and media company. The company's major products and services include entertainment and educational books, magazines, comic books, media networks, cable programming services, radio broadcasting, television broadcasting, and operations of internet sites. The company also operates resorts, hotels and other facilities, vacation club, and cruise lines and provides studio entertainment such as animated motion pictures, direct-to-video content, musical recordings, and live stage plays. The company has operations in the US, Canada, Europe, Asia pacific and Latin America. Walt Disney is headquartered in Burbank, California.

The company reported revenues of (US Dollars) US$59,434 million for the fiscal year ended September 2018 (FY2018), an increase of 7.8% over FY2017. In FY2018, the company’s operating margin was 25%, compared to an operating margin of 25.1% in FY2017. In FY2018, the company recorded a net margin of 21.2%, compared to a net margin of 16.3% in FY2017.The company reported revenues of US$20,245.0 million for the third quarter ended June 2019, an increase of 35.7% over the previous quarter.

8.1.2. Key Facts

Table 5: The Walt Disney Company: key facts

Head office: 500 South Buena Vista StreetBurbank, California, United States

Number of Employees: 201000

Website: www.thewaltdisneycompany.com

Financial year-end: September

Ticker: DIS

Stock exchange: New York Stock Exchange

SOURCE: COMPANY WEBSITE M A R K E T L I N E

8.1.3. Business Description

The Walt Disney Company (Walt Disney or 'the company') is a diversified international family entertainment and media enterprise based in the US. The company primarily operates a portfolio of broadcast, cable, radio, publishing and digital businesses. In addition, Walt Disney is engaged in the operation of theme parks and resorts; film production; consumer entertainment products; and interactive entertainment business. The company has operations in the US and Canada, Europe, Asia Pacific, Latin America and Other.

The company operates through four segments: Media Networks, Parks and Resorts, Studio Entertainment, Consumer Products and Interactive Media.

Walt Disney's Media Networks segment includes cable and broadcast television networks; television production operations; television distribution; domestic television stations; and radio networks and stations.

The cable networks business includes ESPN, the Disney Channels and Freeform (formerly ABC Family). The company also operates the Hungama and UTV/Bindass networks in India. The cable networks group produces its own programs

Movies & Entertainment in North America

Industry Profiles

or acquires rights from third-parties to air programs on its networks. In addition, it has interests in joint ventures that operate cable and broadcast programming services. The segment primarily sells programming to cable, satellite and telecommunications service providers. Programming developed by the company's cable networks is also sold to television markets worldwide to subscription video-on-demand (SVOD) services, such as Netflix, Hulu and Amazon, and in home entertainment formats such as DVD, Blu-ray and iTunes.

Media Networks segment's broadcasting business includes a domestic broadcast network, television production and distribution operations and eight owned domestic television stations. The company has a 33% interest in Hulu, a venture that acquires and produces film and television content and distributes it on the internet. The company's domestic broadcast television network comprises of the ABC Television Network (ABC), which has affiliation agreements with 242 local television stations reaching 100% of all the US television households.

ABC produces its own programs and also acquires programming rights from third parties as well as entities that are owned by or affiliated with the company. ABC also broadcasts its programs through its official website, ABC.com. The television production business is engaged in the production of original live-action television programs under the ABC Studios label. In addition, the company distributes its productions in television markets worldwide to SVOD services and in electronic, physical formats. The operations of domestic television stations include eight television stations. In FY2016, the Media Networks segment reported revenues of $23,689 million, which accounted for 42.6% of the company's total revenue.

Walt Disney's Parks and Resorts business segment owns and operates the Walt Disney World Resort in Florida; the Disneyland Resort in California; Aulani, a Disney Resort and Spa in Hawaii; the Disney Vacation Club; the Disney Cruise Line; and Adventures by Disney. In addition, the company manages and has ownership interests of 81% in Disneyland Paris, 47% in Hong Kong Disneyland Resort and 43% in Shanghai Disney Resort. The company also licenses the operations of the Tokyo Disney Resort in Japan. The company sells admissions to theme parks; offers food, beverage and merchandise; provides rooms at hotels; sales of cruise and other vacation packages and sales and rentals of vacation club properties. The Walt Disney Imagineering unit provides master planning, real estate development, attraction, entertainment and show design, engineering support, production support, project management and other development services, including research and development for the company’s Parks and Resorts operations. In FY2016, the Parks and Resorts segment reported revenues of $16,974 million, which accounted for 30.5% of the company's total revenue.

The company's Studio Entertainment Business segment produces and acquires live-action and animated motion pictures, direct-to-video content, musical recordings and live stage plays. Walt Disney distributes films primarily under the Walt Disney Pictures, Pixar, Marvel, Touchstone and Lucasfilm banners. The company produces and distributes Indian movies worldwide through its UTV banner.

For the theatrical market, Walt Disney produces and distributes both live-action films and full-length animated films. As of October 1, 2016, the company released domestically approximately 1,000 full-length live-action features and 100 full-length animated features. For the home entertainment market, the company distributes home entertainment releases directly under each of its motion picture banners. In addition, it acquires and produces original content for direct-to-video release. As of October 1, 2016, the company had approximately 1,400 active produced and acquired titles, including 1,000 live-action titles and 400 animated titles in the domestic home entertainment marketplace; and approximately 2,200 active produced and acquired titles, including 1,600 live-action titles and 600 animated titles in the international marketplace.

For the television market, Walt Disney licenses titles to Video-on-Demand (VOD), pay television, free television and International Television service providers for electronic delivery to consumers for a specified rental period. It also licenses its films outside the US. The company's Disney Music Group includes Walt Disney Records, Hollywood Records, Disney Music Publishing and Buena Vista Concerts. The segment also includes the operations of Disney Theatrical Group, which develops, produces and licenses live entertainment events. In FY2016, the Studio Entertainment segment reported revenues of $9,441 million, which accounted for 17% of the company's total revenue.

Walt Disney's Consumer Products and Interactive Media segment licenses the company’s trade names, characters and visual and literary properties to various manufacturers, game developers, publishers and retailers throughout the world. The segment also develop and publish games, primarily for mobile platforms, and books, magazines and comic books as well as the distribution of branded merchandise directly through retail, online and wholesale businesses. The company perform these activities through Merchandise Licensing, Retail, Games and Publishing businesses. In

Movies & Entertainment in North America

Industry Profiles

addition, the segment’s operations include website management and design, primarily for other company businesses, and the development and distribution of online video content.

The company's merchandise licensing operations cover a range of product categories, including toys, apparel, home decor and furnishings, stationery, accessories, health and beauty, food, footwear and consumer electronics. The company’s publishing business, creates, distributes, licenses and publishes children's books, magazine and learning products in print and digital formats and storytelling apps in multiple countries and languages based on the company's branded franchises. It also operates Disney English, which develops and delivers an English language learning curriculum for Chinese children using the company's content in 27 learning centers in eight cities across China. The company's retail business markets Disney, Marvel and Lucasfilm-themed products through retail stores operated under the Disney store name and through internet sites in North America (DisneyStore.com and MarvelStore.com), Western Europe, Japan and China. The company owns and operates 223 stores in North America, 78 stores in Europe, 48 stores in Japan and one in China. The company also offers retailers merchandise under wholesale arrangements. In FY2016, the Consumer Products and Interactive Media segment reported revenues of $5,528 million, which accounted for 9.9% of the company's total revenue.

The company’s operations also include Maker Studios, a leading network and developer of online video content distributed primarily on YouTube and other digital platforms. The company also licenses Disney properties and content to mobile phone carriers in Japan. The company also develops, publishes and distributes interactive family content through a portfolio of platforms, including Disney.com, Disney on YouTube, Babble.com and various Disney- branded apps.

Geographically, the company classifies its operations into four segments, namely the US and Canada, Europe, Asia Pacific, Latin America and Other. In FY2016, the US and Canada segment accounted for 76.6% of the company's total revenues, followed by Europe with 12.1%; Asia Pacific with 8.2%; Latin America and Other with 3.1%.

Movies & Entertainment in North America

Industry Profiles

Table 6: The Walt Disney Company: Annual Financial Ratios

Key Ratios 2014 2015 2016 2017 2018

Growth Ratios

Sales Growth % 8.37 7.48 6.04 -0.89 7.79

Operating Income Growth % 27.79 15.18 7.83 -2.46 7.16

EBITDA Growth % 23.19 13.13 7.76 -0.56 7.34

Net Income Growth % 22.25 11.75 12.04 -4.38 40.29

EPS Growth % 19.50 14.85 17.63 -1.61 21.78

Working Capital Growth % -21.66 -77.49 -70.75 -3088.71 -72.07

Equity Ratios

EPS (Earnings per Share) USD 4.26 4.90 5.73 5.69 7.23

Dividend per Share USD 0.86 1.81 1.42 1.56 1.68

Dividend Cover Absolute 4.96 2.71 4.04 3.65 4.30

Book Value per Share USD 26.45 27.83 27.04 27.54 32.52

Profitability Ratios

Gross Margin % 45.88 45.94 46.09 45.04 44.94

Operating Margin % 23.43 25.10 25.53 25.12 24.98

Net Profit Margin % 15.37 15.98 16.88 16.29 21.20

Profit Markup % 84.76 84.97 85.48 81.93 81.61

PBT Margin (Profit Before Tax) % 25.09 26.43 26.73 25.01 24.78

Return on Equity % 16.68 18.83 21.71 21.74 25.83

Return on Capital Employed % 16.13 18.33 18.89 18.18 18.39

Return on Assets % 9.07 9.73 10.42 9.56 12.96

Return on Working Capital % 606.95 3106.37 11453.23

Operating Costs (% of Sales) % 76.57 74.90 74.47 74.88 75.02

Administration Costs (% of Sales) % 17.55 16.25 15.74 14.83 14.91

Liquidity Ratios

Current Ratio Absolute 1.14 1.03 1.01 0.81 0.94

Quick Ratio Absolute 1.02 0.93 0.92 0.74 0.86

Cash Ratio Absolute 0.26 0.26 0.27 0.21 0.23

Leverage Ratios

Debt to Equity Ratio Absolute 0.33 0.39 0.47 0.61 0.43

Net Debt to Equity Absolute 0.25 0.29 0.36 0.51 0.34

Debt to Capital Ratio Absolute 0.25 0.28 0.32 0.38 0.30

Efficiency Ratios

Asset Turnover Absolute 0.59 0.61 0.62 0.59 0.61

Fixed Asset Turnover Absolute 2.14 2.16 2.12 1.98 2.05

Inventory Turnover Absolute 17.26 18.04 20.26 21.94 23.67

Current Asset Turnover Absolute 3.33 3.29 3.30 3.36 3.63

Capital Employed Turnover Absolute 0.69 0.73 0.74 0.72 0.74

Working Capital Turnover Absolute 25.91 123.74 448.65

SOURCE: COMPANY FILINGS M A R K E T L I N E

Movies & Entertainment in North America

Industry Profiles

Table 7: The Walt Disney Company: Key Employees

Name Job Title Board

Carolyn Cassidy President Creative Affairs Senior Management

Abhishek Maheshwari Head India Senior Management

Alan F. Horn Chairman of The Walt Disney Studios Senior Management

Alan N. Braverman Executive Vice President General Counsel

and Secretary Senior Management

Andrew Messina Senior Vice President Disney Advertising

Sales Senior Management

Andy Bird Chairman of Walt Disney International Senior Management

Asad Ayaz President Marketing, The Walt Disney Studios Senior Management

Aylwin B. Lewis Director Non Executive Board

Ben Sherwood Co-chair of Disney Media Networks, and

President of Disney|ABC Television Group Senior Management

Bob Chapek Chairman of Walt Disney Parks and Resorts Senior Management

Brent A. Woodford Executive Vice President Controllership,

Financial Planning and Tax Senior Management

Christine M. McCarthy Senior Executive Vice President and Chief

Financial Officer Senior Management

Craig Hunegs President Disney Television Studios Senior Management

Derica W. Rice Director Non Executive Board

Elissa Margolis Senior Vice President Enterprise Social

Responsibility Senior Management

Flora McKiernan Senior Vice President Disney Advertising

Sales Senior Management

Fred H. Langhammer Director Non Executive Board

Howard Kurtzman President Business Operations Senior Management

Jack Dorsey Director Non Executive Board

James Pitaro Co-Chair - Disney Media Networks Executive Board

James Pitaro President ESPN Executive Board

Jan Koeppen President Europe, Middle East and Africa Senior Management

Jayne Parker Executive Vice President and Chief Human

Resources Officer Senior Management

Jennifer Lee Chief Creative Officer Walt Disney Animation

Studios Senior Management

Jeremiah Tachna Senior Vice President Disney Advertising

Sales Senior Management

Jerry Daniello Senior Vice President Entertainment Brand

Solutions Disney Advertising Sales Senior Management

Joe Earley Head Marketing and Operations Disney+ Senior Management

John Rood Senior Vice President Marketing Disney

Channels Worldwide Senior Management

John S. Chen Director Non Executive Board

Jonnie Davis President ABC Studios Senior Management

SOURCE: COMPANY FILINGS M A R K E T L I N E

Movies & Entertainment in North America

Industry Profiles

Table 8: The Walt Disney Company: Key Employees Continued

Name Job Title Board

Josh Mattison Vice President Business Operations Senior Management

Josh Sussman Executive Vice President Business Affairs Senior Management

Kevin Mayer Chairman - Direct-to-Consumer and

International Business Senior Management

Kevin Mayer Senior Executive Vice President and Chief

Strategy Officer Senior Management

Kevin Swint Senior Vice President BAMTech Senior Management

Laura Nathanson Executive Vice President Revenue and Operations Disney Advertising Sales

Senior Management

Marco Forte Senior Vice President Disney Advertising

Sales Senior Management

Maria Elena Lagomasino Director Non Executive Board

Mark G. Parker Director Non Executive Board

Mary T. Barra Director Non Executive Board

Michael Froman Director Non Executive Board

Orin C. Smith Independent Lead Director Non Executive Board

Patricia Betron Senior Vice President Disney Advertising

Sales Senior Management

Pete Docter Chief Creative Officer Pixar Animation Studios Senior Management

Peter Rice Chairman Walt Disney Television Executive Board

Peter Rice Co-Chair, Disney Media Networks Executive Board

Ravi Ahuja Chief Financial Officer Senior Management

Ravi Ahuja President Business Operations Senior Management

Rebecca Campbell President Disneyland Resort Senior Management

Rita Ferro President Disney Advertising Sales Senior Management

Robert A. Iger Chairman and Chief Executive Officer Executive Board

Robert W. Matschullat Director Non Executive Board

Ronald L. Iden Senior Vice President Global Security Senior Management

Sheryl Sandberg Director Non Executive Board

Susan E. Arnold Director Non Executive Board

Terence Carter Executive Vice President Development Senior Management

Wanda Young Senior Vice President Client Solutions

Insights and Creative Senior Management

Wendell Scott Senior Vice President Disney Advertising

Sales Senior Management

Zenia Mucha Executive Vice President and Chief

Communications Officer Senior Management

SOURCE: COMPANY FILINGS M A R K E T L I N E

Movies & Entertainment in North America

Industry Profiles

8.2. Comcast Corporation

8.2.1. Company Overview

Comcast Corporation (Comcast or “the company”) is a media and technology company that produces and distributes entertainment, news, sports, filmed entertainment and other content through NBCUniversal and operates cable systems through Comcast Cable. The company's major services include cable communications; advertising; cable networks; regional sports and news networks; content licensing; broadcasting; films; motion pictures; distribution; theme parks; video services; high-speed internet services; voice services. Comcast offers its services directly to residential and business customers through its customer service call centers, retail stores and customer service centers, websites, door-to-door selling, telemarketing, third-party outlets, and through advertising via direct mail, television and the Internet. It primarily operates in the US, Europe and Asia. The company is headquartered in Philadelphia, Pennsylvania, the US.

The company reported revenues of (US Dollars) US$94,507 million for the fiscal year ended December 2018 (FY2018), an increase of 11.1% over FY2017. In FY2018, the company’s operating margin was 20.1%, compared to an operating margin of 21.2% in FY2017. In FY2018, the company recorded a net margin of 12.4%, compared to a net margin of 26.7% in FY2017.The company reported revenues of US$26,858.0 million for the second quarter ended June 2019, a decrease of 0% over the previous quarter.

8.2.2. Key Facts

Table 9: Comcast Corporation: key facts

Head office: 1 Comcast Center1701 JFK Boulevard, Philadelphia, Pennsylvania, United States

Number of Employees: 184000

Website: corporate.comcast.com

Financial year-end: December

Ticker: CMCSA

Stock exchange: NASDAQ

SOURCE: COMPANY WEBSITE M A R K E T L I N E

8.2.3. Business Description

Comcast Corporation (Comcast or “the company”) is a diversified media and technology company that offers cable services, video services, Voice over Internet Protocol and high-speed internet services. The company operates two businesses, such as Comcast Cable and NBCUniversal. It primarily operates in the US, Europe and Asia.

The company operates through five reportable business segments: Cable Communications, NBCUniversal, Sky, and Corporate and Other.

The Cable Communications segment includes the operations of Comcast Cable that provides video, high-speed internet and voice, and security and automation services to residential customers under the XFINITY brand. It also provides these services to business customers and sell advertising. As of December 31, 2018, Comcast's cable systems served 21.9 million video customers, 27.2 million high-speed Internet customers and 11.4 million voice customers, with 30.3 million total customer relationships, and passed more than 57 million homes and businesses. In FY2018, the Cable Communications segment reported revenue of US$55,143 million, which accounted for 56.9% of the company's total revenue.

Movies & Entertainment in North America

Industry Profiles

The NBCUniversal segment owns and operates theme parks worldwide, and develops, produces and distributes news and information, entertainment, sports and other content for global audiences. The segment is further classified into four categories: cable networks, broadcast television, filmed entertainment, and theme parks. The Cable Networks segment primarily consists of national cable entertainment networks, national cable news and information networks, national cable sports networks, regional sports and news networks, international cable networks, cable television studio production operations, and related digital media properties. The company markets and distributes cable network programming in the US and internationally to multichannel video providers and to subscription video on demand (SVOD) services such as Netflix, Amazon and Hulu. The company's cable entertainment networks include USA Network, E!, Syfy, Bravo, Oxygen, Universal Kids, MSNBC, CNBC, CNBC World, NBC Sports Network, The Olympic Channel and Golf Channel. The Broadcast Television segment operates the NBC and Telemundo broadcast television networks, which together serve audiences and advertisers in all 50 states.

The segment also includes NBC and Telemundo owned local broadcast television stations, the NBC Universo national cable network, and its broadcast television studio production operations and related digital media properties. The Filmed Entertainment segment primarily consists of the operations of Universal Pictures, which produces, acquires, markets and distributes both live-action and animated film entertainment worldwide. It also develops and produces live stage plays. The company produces films under the DreamWorks Animation, Focus Features and Illumination names. The Theme Parks segment primarily consists of Universal theme parks in Orlando, Florida; Hollywood, California; and its Osaka, Japan. In FY2018, cable networks accounted for 32.7% of the segment’s total revenue, followed by broadcast television (31.7%), filmed entertainment (19.8%), and theme parks (15.8%). As of December 31, 2018, the NBCUniversal segment owned and operated 11 NBC-affiliated local broadcast television stations, which include stations in 8 of the top 10 general markets, reached approximately 32 million US television households. In FY2018, the NBCUniversal segment reported revenue of US$35,761 million, which accounted for 36.9% of the company's total revenue.

The Sky segment includes the operations of Sky that provides high-speed internet, video, wireless phone and voice services. It also consists of a content business, which operates entertainment networks, the Sky News broadcast network and Sky Sports networks. As of December 31, 2018, the segment had 23.6 million retail customers. In FY2018, the Sky segment reported revenues of US$4,587 million, which accounted for 4.7% of the company's total revenue.

The Corporate and Other segment of the company includes wireless phone service and Comcast-Spectacor, which owns the Philadelphia Flyers and Wells Fargo Center arena in Philadelphia. In FY2018, the Corporate and Other business segment reported revenues of US$1,403 million, which accounted for 1.5% of the company's total revenue.

Geographically, the company classifies its operations into two segments: the US and foreign. In FY2018, the US accounted for 87% of the company's total revenue and the foreign countries accounted for 13% of the company's total revenue.

Movies & Entertainment in North America

Industry Profiles

Table 10: Comcast Corporation: Annual Financial Ratios

Key Ratios 2014 2015 2016 2017 2018

Growth Ratios

Sales Growth % 6.37 8.34 8.36 5.32 11.15

Operating Income Growth % 9.75 7.30 5.60 7.05 5.50

EBITDA Growth % 6.86 7.63 6.65 7.20 6.67

Net Income Growth % 22.95 -2.59 6.31 161.98 -48.40

EPS Growth % 25.11 2.81 10.29 15.44 20.70

Working Capital Growth % -19.81 51.46 -11.93 9.20 1.86

Equity Ratios

EPS (Earnings per Share) USD 1.60 1.62 1.78 2.10 2.53

Dividend per Share USD 0.45 0.50 0.55 0.63 0.76

Dividend Cover Absolute 3.55 3.24 3.24 3.33 3.33

Book Value per Share USD 11.28 9.91 11.38 14.77 15.82

Profitability Ratios

Gross Margin % 69.59 69.74 69.84 70.18 68.58

Operating Margin % 21.60 21.39 20.85 21.19 20.11

Net Profit Margin % 12.18 10.96 10.75 26.74 12.41

Profit Markup % 228.88 230.42 231.59 235.35 218.29

PBT Margin (Profit Before Tax) % 18.12 17.95 17.74 18.06 16.13

Return on Equity % 15.90 15.62 16.09 33.13 16.38

Return on Capital Employed % 10.48 10.74 10.59 10.89 8.48

Return on Assets % 5.27 5.01 5.00 12.36 5.34

Return on Working Capital % -382.93 -271.30 -325.30 -318.90 -330.30

Operating Costs (% of Sales) % 78.40 78.61 79.15 78.81 79.89

Administration Costs (% of Sales) % 36.26 36.62 37.32 37.30 37.04

Liquidity Ratios

Current Ratio Absolute 0.78 0.68 0.76 0.74 0.79

Quick Ratio Absolute 0.78 0.68 0.76 0.74 0.79

Cash Ratio Absolute 0.26 0.13 0.15 0.16 0.14

Leverage Ratios

Debt to Equity Ratio Absolute 0.91 1.01 1.13 0.94 1.56

Net Debt to Equity Absolute 0.84 0.96 1.07 0.89 1.51

Debt to Capital Ratio Absolute 0.48 0.50 0.53 0.48 0.61

Efficiency Ratios

Asset Turnover Absolute 0.43 0.46 0.47 0.46 0.43

Fixed Asset Turnover Absolute 2.26 2.31 2.31 2.28 2.28

Current Asset Turnover Absolute 4.98 5.77 5.63 5.20 4.95

Capital Employed Turnover Absolute 0.49 0.50 0.51 0.51 0.42

SOURCE: COMPANY FILINGS M A R K E T L I N E

Movies & Entertainment in North America

Industry Profiles

Table 11: Comcast Corporation: Key Employees

Name Job Title Board

Amy Lynch Senior Vice President Mountain West Region Senior Management

Asuka Nakahara Director Non Executive Board

Bob Eatroff Executive Vice President Global Corporate

Development and Strategy Senior Management

Brian L. Roberts Chairman Executive Board

Brian L. Roberts Chief Executive Officer Executive Board

Brian L. Roberts President Executive Board

D’Arcy F. Rudnay Chief Communications Officer Senior Management

D’Arcy F. Rudnay Executive Vice President Senior Management

Dana Strong President Consumer Services, Comcast Cable Senior Management

Daniel C. Murdock Chief Accounting Officer Senior Management

Daniel C. Murdock Controller Senior Management

Daniel C. Murdock Senior Vice President Senior Management

David C. Novak Director Non Executive Board

David L. Cohen Senior Executive Vice President Senior Management

David N. Watson Chief Executive Officer Comcast Cable Senior Management

David N. Watson President Comcast Cable Senior Management

David N. Watson Senior Executive Vice President Senior Management

David Tashjian Regional Vice President, Oregon Washington

Region Senior Management

Dennis Mathew Senior Vice President Western New England

Region Senior Management

Edward D. Breen Director Non Executive Board

Elaine Barden Vice President Business Development and

Strategic Initiatives, California Senior Management

Evan Broslovsky Vice President Customer Experience, Western

New England Region Senior Management

Gerald L. Hassell Director Non Executive Board

Jason Gumbs Vice President Technical Operations Senior Management

Jeff Votaw Vice President Engineering Senior Management

Jeffrey A. Honickman Director Non Executive Board

Jeremy Darroch Chief Executive Officer Sky Senior Management

Joel Armijo Chief Financial Officer Comcast Advertising Senior Management

Joel Armijo Senior Vice President Comcast Advertising Senior Management

Kathryn A. Zachem Executive Vice President Regulatory and

State Legislative Affairs Senior Management

SOURCE: COMPANY FILINGS M A R K E T L I N E

Movies & Entertainment in North America

Industry Profiles

Table 12: Comcast Corporation: Key Employees Continued

Name Job Title Board

Kenneth J. Bacon Director Non Executive Board

Kimberley D. Harris Executive Vice President Senior Management

Kimberley D. Harris General Counsel NBCUniversal Senior Management

Kristeen Cominiello Vice President Sales and Marketing Senior Management

Madeline S. Bell Director Non Executive Board

Marcos Vicente Vice President Finance and Business

Operations Senior Management

Maritza G. Montiel Director Non Executive Board

Michael J. Cavanagh Chief Financial Officer Senior Management

Michael J. Cavanagh Senior Executive Vice President Senior Management

Michael Parker Senior Vice President Keystone Region Senior Management

Rodrigo Lopez Senior Vice President Washington State Senior Management

Sheldon M. Bonovitz Director Non Executive Board

Stephen B. Burke Chief Executive Officer NBCUniversal

Holdings and NBCUniversa Senior Management

Stephen B. Burke President NBCUniversal Holdings and

NBCUniversal Senior Management

Stephen B. Burke Senior Executive Vice President Senior Management

Thomas J. Reid General Counsel Senior Management

Thomas J. Reid Secretary Senior Management

Thomas J. Reid Senior Executive Vice President Senior Management

SOURCE: COMPANY FILINGS M A R K E T L I N E

Movies & Entertainment in North America

Industry Profiles

8.3. AT&T Inc

8.3.1. Company Overview

AT&T Inc (AT&T) provides telecommunications, media and technology services. The company offers wireless communications, data/broadband and internet services, digital video services, local and long-distance telephone services, telecommunications equipment, managed networking, and wholesale services. AT&T also develops, produces and distributes feature films, television, gaming and content over various physical and digital formats. It also provides advertisement, entertainment services for various household customers. The company serves individual customers and business enterprises. The company markets services under various brands including AT&T, Cricket, DIRECTV, SKY, and Unefon. It has business presence in the US, Mexico, and Latin America. AT&T is headquartered in Dallas, Texas, the US.

The company reported revenues of (US Dollars) US$170,756 million for the fiscal year ended December 2018 (FY2018), an increase of 6.4% over FY2017. In FY2018, the company’s operating margin was 15.8%, compared to an operating margin of 12.4% in FY2017. In FY2018, the company recorded a net margin of 11.3%, compared to a net margin of 18.3% in FY2017.The company reported revenues of US$44,957.0 million for the second quarter ended June 2019, an increase of 0.3% over the previous quarter.

8.3.2. Key Facts

Table 13: AT&T Inc: key facts

Head office: 208 S Akard StreetDallas, Texas, United States

Number of Employees: 262000

Website: www.att.com

Financial year-end: December

Ticker: T

Stock exchange: New York Stock Exchange

SOURCE: COMPANY WEBSITE M A R K E T L I N E

8.3.3. Business Description

AT&T Inc (AT&T) provides telecommunications, digital media and technology services. The company offers wireless communication services, broadband and internet services, video services, local exchange services. telecommunications equipment, managed networking, and wholesale services.

AT&T operates through four business segments: Communications, WarnerMedia, Latin America and Xandr.

The company has business presence in the US, Mexico, Brazil, and other regions. It owns three regional TV sports networks in the US.

Movies & Entertainment in North America

Industry Profiles

Table 14: AT&T Inc: Annual Financial Ratios

Key Ratios 2014 2015 2016 2017 2018

Growth Ratios

Sales Growth % 2.87 10.84 11.57 -1.98 6.36

Operating Income Growth % -60.29 102.96 -1.77 -17.98 34.81

EBITDA Growth % -37.97 53.52 7.25 -11.63 24.79

Net Income Growth % -65.02 107.16 -2.77 126.96 -34.23

EPS Growth % -56.16 58.34 -5.18 -12.32 46.41

Working Capital Growth % -68.84 221.65 3.24 -81.63 479.27

Equity Ratios

EPS (Earnings per Share) USD 1.24 2.37 2.10 1.49 2.74

Dividend per Share USD 1.84 1.88 1.92 1.96 2.00

Dividend Cover Absolute 0.67 1.26 1.09 0.76 1.37

Book Value per Share USD 17.30 19.96 20.06 22.94 25.28

Profitability Ratios

Gross Margin % 54.59 54.33 53.06 51.53 53.49

Operating Margin % 9.22 16.88 14.87 12.44 15.77

Net Profit Margin % 4.86 9.09 7.92 18.34 11.34

Profit Markup % 120.21 118.96 113.03 106.33 115.01

PBT Margin (Profit Before Tax) % 7.82 14.10 12.10 9.43 14.57

Return on Equity % 7.18 10.88 10.54 20.91 10.52

Return on Capital Employed % 4.71 6.98 6.89 5.51 5.76

Return on Assets % 2.24 3.82 3.22 6.95 3.97

Return on Working Capital % -332.21 -209.62 -199.45 -890.33 -207.20

Operating Costs (% of Sales) % 90.78 83.12 85.13 87.56 84.23

Administration Costs (% of Sales) % 29.97 22.45 22.17 21.98 21.48

Liquidity Ratios

Current Ratio Absolute 0.90 0.75 0.76 0.97 0.80

Quick Ratio Absolute 0.85 0.67 0.72 0.95 0.76

Cash Ratio Absolute 0.23 0.11 0.11 0.62 0.08

Leverage Ratios

Debt to Equity Ratio Absolute 0.91 1.03 1.00 1.17 0.94

Net Debt to Equity Absolute 0.82 0.99 0.96 0.81 0.93

Debt to Capital Ratio Absolute 0.48 0.51 0.50 0.54 0.49

Efficiency Ratios

Asset Turnover Absolute 0.46 0.42 0.41 0.38 0.35

Fixed Asset Turnover Absolute 1.18 1.24 1.31 1.28 1.33

Inventory Turnover Absolute 62.23 22.48 25.32 36.50 31.79

Current Asset Turnover Absolute 4.66 4.22 4.41 2.73 2.62

Capital Employed Turnover Absolute 0.51 0.41 0.46 0.44 0.37

SOURCE: COMPANY FILINGS M A R K E T L I N E

Movies & Entertainment in North America

Industry Profiles

Table 15: AT&T Inc: Key Employees

Name Job Title Board

Anne Chow Business Senior Management

Bala Subramanian Chief Digital Officer Senior Management

Beth E. Mooney Director Non Executive Board

Brian Lesser Chief Executive Officer AXandr, ATandT

Services, Inc Senior Management

Charlene Lake Chairman ATandT Foundation Executive Board

Charlene Lake Chief Sustainability Officer Executive Board

Charlene Lake Senior Vice President Corporate Social

Responsibility Executive Board

Chris Penrose President Internet of Things Solutions Senior Management

Cynthia B. Taylor Director Non Executive Board

David R. McAtee II General Counsel Senior Management

David R. McAtee II Senior Executive Vice President and General

Counsel Senior Management

David S. Huntley Chief Compliance Officer Senior Management

David S. Huntley Senior Executive Vice President Senior Management

Debra L. Lee Director Non Executive Board

Geoffrey Y. Yang Director Non Executive Board

Glenn H. Hutchins Director Non Executive Board

John J. Stephens Chief Financial Officer Senior Management

John J. Stephens Senior Executive Vice President Senior Management

John Stankey Chief Executive Officer WarnerMedia, LLC Senior Management

Joyce M. Roche Lead Director Non Executive Board

Laura D'Andrea Tyson Director Non Executive Board

Lori M. Lee Chief Executive Officer ATandT Latin America Senior Management

Lori M. Lee Global Marketing Officer Senior Management

Marissa Shorenstein President Northern Region Senior Management

Matthew K. Rose Director Non Executive Board

Michael B. McCallister Director Non Executive Board

Randall L. Stephenson Chairman Executive Board

Randall L. Stephenson Chief Executive Officer Executive Board

Randall L. Stephenson President Executive Board

Richard W. Fisher Director Non Executive Board

SOURCE: COMPANY FILINGS M A R K E T L I N E

Movies & Entertainment in North America

Industry Profiles

Table 16: AT&T Inc: Key Employees Continued

Name Job Title Board

Samuel A. Di Piazza, Jr. Director Non Executive Board

Scott T. Ford Director Non Executive Board

Thaddeus Arroyo Chief Executive Officer Consumer Business Senior Management

William A. Blase, Jr. Senior Executive Vice President Human

Resources Senior Management

William E. Kennard Director Non Executive Board

SOURCE: COMPANY FILINGS M A R K E T L I N E

Movies & Entertainment in North America

Industry Profiles

8.4. Sony Corporation

8.4.1. Company Overview

Sony Corporation (Sony or 'the group') is a designer, developer, manufacturer and marketer of audio, video, imaging, game, communications, and information technology products. It sells products to the industrial, consumer and professional markets. The group operates in electronics, entertainment and financial services sectors. Sony offers a wide range of products, including mobile phones, tablets, accessories, applications, home and portable game consoles. Sony also provides compact digital cameras, interchangeable single-lens cameras, video cameras, broadcast- and professional-use products, televisions (TVs), audio and video products, semiconductors, and components. It also offers network services relating to game, video, and music content, and financial services. Sony operates across Asia Pacific, Africa, Europe, Latin America, North America and the Middle East, Africa. The group is headquartered in Tokyo, Japan.

The company reported revenues of (Yen) JPY8,665,687 million for the fiscal year ended March 2019 (FY2019), an increase of 1.4% over FY2018. In FY2019, the company’s operating margin was 10.3%, compared to an operating margin of 8.5% in FY2018. In FY2019, the company recorded a net margin of 10.6%, compared to a net margin of 5.7% in FY2018.

8.4.2. Key Facts

Table 17: Sony Corporation: key facts

Head office: 1-7-1 Konan, Minato-ku, Tokyo, Japan

Number of Employees: 114400

Website: www.sony.co.jp

Financial year-end: March

Ticker: 6758

Stock exchange: Tokyo Stock Exchange

SOURCE: COMPANY WEBSITE M A R K E T L I N E

8.4.3. Business Description

Sony Corporation (Sony or 'the group') develops, designs, manufactures and sells electronic equipment, instruments, and devices for the industrial, professional and consumer markets. The group operates in approximately 200 countries and territories. Sony operates its manufacturing facilities in Asia including Japan. It markets products and services through subsidiaries, unaffiliated distributors, direct sales and through the internet. The group also uses third-party contract manufacturers for certain products.

The group operates through nine segments: Game and Network Services, Home Entertainment and Sound, Mobile Communications, Financial Services, Pictures, Semiconductors, Imaging Products and Solutions, Music, and All Other.

The Game and Network Services segment offers hardware products and others, such as home and portable game consoles, peripheral devices and packaged software. The segment also provides network services relating to game, video, and music content through its subsidiary, Sony Interactive Entertainment LLC. In FY2019, the Game and Network Services segment reported revenue of JPY2,224,622 million, which accounted for 25.7% of the group’s revenue.

The Home Entertainment and Sound segment offers televisions, such as liquid crystal display (LCD) TVs, OLED TVs, and audio and video products, including Blu-ray Disc players/recorders, home audio, headphones and memory-based

Movies & Entertainment in North America

Industry Profiles

portable audio devices. In FY2019, the Home Entertainment and Sound segment reported revenue of JPY1,154,533 million, which accounted for 13.3% of the group’s revenue.

Through the Mobile Communications segment, Sony carries out the research, development, design, marketing, sales, manufacturing, distribution and customer services for mobile phones, tablets, accessories and applications. The group also offers Internet broadband network services to subscribers. Moreover, it creates and distributes content through its portal services to various electronics products platforms such as personal computers (PCs) and mobile phones. In FY2019, the Mobile Communications segment reported revenue of JPY487,330 million, which accounted for 5.6% of the group’s revenue.

The Financial Services segment operates through a wholly-owned subsidiary, Sony Financial Holdings (SFH). SFH is a holding company for Sony Life, Sony Bank, and Sony Assurance. SFH integrates various financial services offered by Sony including insurance, savings and loans. SFH operates the insurance and banking business through Sony Life, a Japanese life insurance company; Sony Assurance, a Japanese non-life insurance company; and Sony Bank, a Japanese internet-based bank. In FY2019, the Financial Services segment reported revenue of JPY1,274,708 million, which accounted for 14.7% of the group’s revenue.

The Pictures segment consists of motion pictures production, television productions, and media networks. Motion pictures include global production, acquisition and distribution of live-action and animated motion pictures and direct- to-video content. The segment also includes operations of Sony Pictures Entertainment (SPE). SPE's principal motion picture production organizations include Columbia Pictures, TriStar Pictures, Screen Gems, Stage 6 Films, Sony Pictures Animation, AFFIRM Films and Sony Pictures Classics. SPE also operates Sony Pictures Imageworks (a visual effects and animation studio) and manages a studio facility, Sony Pictures Studios, which includes post production facilities. The television productions includes the production, acquisition and distribution of TV programming, including scripted series, unscripted reality or light entertainment, daytime serials, game shows, animated series, made for TV movies and miniseries and other programming. SPE also produces local language programming and licenses SPE owned programming and formats across the world. Media networks includes digital network and TV operations. SPE's TV networks include Sony Pictures Networks India (SPN), which operates TV networks in India, and a controlling interest in Game Show Network (GSN), which operates a US based cable network and an online game business. Digital networks include FunimationNow in North America and SonyLIV in Indi. In FY2019, the Pictures segment reported revenue of JPY985,270 million, which accounted for 11.4% of the group’s revenue.

The Semiconductors segment provides charge-coupled devices (CCDs), complementary metal oxide semiconductor (CMOS) image sensors, logical system integrations (LSIs) and other semiconductors. In FY2019, the Semiconductors segment reported revenue of JPY770,622 million, which accounted for 8.9% of the total revenue.

The Imaging Products and Solutions segment offers compact digital cameras, interchangeable lens cameras, display products, including medical equipment and projectors, and consumer and professional video cameras. The segment also includes the FeliCa contactless IC (integrated circuit) card technology business, and the broadcast/professional solutions business. In FY2019, the Imaging Products and Solutions segment reported revenue of JPY661,304 million, which accounted for 7.6% of the group’s revenue.

The Music segment comprises operations of Sony Music Entertainment (SME); Sony Music Entertainment Japan (SMEJ); and a US subsidiary in the music publishing business, Sony/ATV Music Publishing (Sony/ATV). SME develops, produces and distributes recorded music in all commercial formats and genres worldwide, excluding Japan. SMEJ is an entertainment that is involved in the production of recorded music and music videos through contacts with many artists in all music genres. Sony/ATV is a US-based music publishing business that owns and acquires rights to musical compositions. In FY2019, the Music segment reported revenue of JPY795,025 million, which accounted for 9.2% of the group’s revenue.

The All Other segment comprises various operating activities, including disc manufacturing business outside of Japan and recording media business. In FY2019, the All Other segment reported revenue of JPY299,806 million, which accounted for 3.5% of the group’s revenues.

Geographically, Sony classifies its operations into six regions: Japan, Europe, the US, Asia Pacific, China, and Other Areas. In FY2019, Japan accounted for 29.9% of the group’s revenue, followed by the US (22.9%), Europe (21.5%), Asia Pacific (10.5%), China (8.9%), and Other Areas (6.3%).

Movies & Entertainment in North America

Industry Profiles

Table 18: Sony Corporation: Annual Financial Ratios

Key Ratios 2014 2015 2016 2017 2018

Growth Ratios

Sales Growth % 5.78 -1.34 -6.20 12.37 1.42

Operating Income Growth % 175.88 324.36 -3.37 159.69 22.51

EBITDA Growth % 175.88 324.36 -3.37 159.69 22.51

Net Income Growth % -50.41 569.67 86.69

EPS Growth % -12.84 287.70 62.73

Working Capital Growth % -5.36 15.76 36.59 -48.68 87.47

Equity Ratios

EPS (Earnings per Share) JPY -113.04 117.49 56.89 379.75 707.74

Dividend per Share JPY 20.00 20.00 27.50 35.00

Dividend Cover Absolute 5.87 2.84 13.81 20.22

Dividend Cover Absolute -5.00

Book Value per Share JPY 1982.54 1952.79 1977.72 2344.96 2995.31

Profitability Ratios

Gross Margin % 30.70 30.83 31.40 32.44 33.28

Operating Margin % 0.83 3.59 3.70 8.54 10.32

Net Profit Margin % -1.53 1.82 0.96 5.74 10.57

Profit Markup % 44.29 44.58 45.78 48.03 49.87

PBT Margin (Profit Before Tax) % 0.48 3.76 3.31 8.18 11.67

Return on Equity % -5.44 6.00 2.93 16.54 24.46

Return on Capital Employed % 0.62 2.46 2.26 5.43 6.00

Return on Assets % -0.81 0.91 0.43 2.67 4.58

Return on Working Capital % -4.29 -12.52 -45.88 -32.46 -164.23

Operating Costs (% of Sales) % 99.17 96.41 96.30 91.46 89.68

Administration Costs (% of Sales) % 22.05 20.87 19.81 18.53 18.20

Liquidity Ratios

Current Ratio Absolute 0.88 0.87 0.83 0.92 0.86

Quick Ratio Absolute 0.74 0.73 0.71 0.80 0.76

Cash Ratio Absolute 0.40 0.40 0.39 0.49 0.46

Leverage Ratios

Debt to Equity Ratio Absolute 0.38 0.30 0.29 0.29 0.20

Net Debt to Equity Absolute -0.01 -0.04 0.10 -0.08 -0.03

Debt to Capital Ratio Absolute 0.27 0.23 0.23 0.22 0.17

Efficiency Ratios

Asset Turnover Absolute 0.53 0.50 0.44 0.47 0.43

Fixed Asset Turnover Absolute 11.03 10.39 9.63 11.41 11.43

Inventory Turnover Absolute 8.14 8.31 7.88 8.66 8.59

Current Asset Turnover Absolute 1.96 1.93 1.78 1.79 1.66

Capital Employed Turnover Absolute 0.74 0.68 0.61 0.64 0.58

SOURCE: COMPANY FILINGS M A R K E T L I N E

Movies & Entertainment in North America

Industry Profiles

Table 19: Sony Corporation: Key Employees

Name Job Title Board

Anthony Vinciquerra Chairman-Sony Pictures Entertainment Inc Senior Management

Anthony Vinciquerra Chief Executive Officer Sony Pictures

Entertainment Inc Senior Management

Anthony Vinciquerra Executive Vice President Senior Management

Anthony Vinciquerra Head Pictures Business Senior Management

Eriko Sakurai Director Non Executive Board

Hiroki Totoki Chief Financial Officer Executive Board

Hiroki Totoki Director Executive Board

Hiroki Totoki Senior Executive Vice President Executive Board

Ichiro Takagi Head Conusmer AV sales and Marketing Senior Management

Ichiro Takagi Head Home Entertainment and Sound

Business Senior Management

Ichiro Takagi Head Manufacturing, Logistics, Procurement

and Engineering Platform Senior Management

Ichiro Takagi Senior Executive Vice President Senior Management

Jim Ryan Chief Executive Officer Sony Interactive

Entertainment Senior Management

Jim Ryan Director Sony Interactive Entertainment Senior Management

Jim Ryan Head Game and Network Service Business Senior Management

Jim Ryan President Sony Interactive Entertainment Senior Management

John V. Roos Director Non Executive Board

Kazuo Matsunaga Vice Chairman Executive Board

Kazushi Ambe Executive Vice President Senior Management

Kazushi Ambe Head Human Resources and General Affairs Senior Management

Kenichiro Yoshida Chief Executive Officer Executive Board

Kenichiro Yoshida Director Executive Board

Kenichiro Yoshida President Executive Board

Koichi Miyata Director Non Executive Board

Kunihito Minakawa Director Non Executive Board

Michinori Mizuno Chairman--Sony Music Entertainment (Japan)

Inc Senior Management

Michinori Mizuno Chief Executive Officer Sony Music

Entertainment (Japan) Inc Senior Management

Michinori Mizuno Executive Vice President Senior Management

Michinori Mizuno Head Music Business (Japan) Senior Management

Rob Stringer Chief Executive Officer Sony Music

Entertainment Senior Management

SOURCE: COMPANY FILINGS M A R K E T L I N E

Movies & Entertainment in North America

Industry Profiles

Table 20: Sony Corporation: Key Employees Continued

Name Job Title Board

Rob Stringer Executive Vice President Senior Management

Rob Stringer Head Music Business (Global) Senior Management

Sakie Akiyama Director Non Executive Board

Shigeki Ishizuka Head Electronics Products and Solutions

Business Senior Management

Shigeki Ishizuka Head Storage Media Business Senior Management

Shigeki Ishizuka Senior Executive Vice President Senior Management

Shigeru Ishii Director Sony Financial Holdings Inc Senior Management

Shigeru Ishii Executive Vice President Senior Management

Shigeru Ishii President Sony Financial Holdings Inc Senior Management

Shiro Kambe Corporate Executive Officer Senior Management

Shiro Kambe Executive Vice President Senior Management

Shiro Kambe Head Legal, Compliance, Corporate

Communications, CSR, External Relations and Information Security and Privacy

Senior Management

Shuzo Sumi Chairman Executive Board

Terushi Shimizu Executive Vice President Senior Management

Terushi Shimizu Head Semiconductor Business Senior Management

Terushi Shimizu President Sony LSI Design Inc Senior Management

Terushi Shimizu President Sony Semiconductor Manufacturing

Corporation Senior Management

Terushi Shimizu President Sony Semiconductor Solutions

Corporation Senior Management

Tim Schaaff Director Non Executive Board

Toru Katsumoto Director Sony Imaging Products and Solutions

Inc Senior Management

Toru Katsumoto Executive Deputy President - Sony Imaging

Products & Solutions Inc Senior Management

Toru Katsumoto Head RandD, Medical Business, Senior Management

Toru Katsumoto Senior Executive Vice President Senior Management

Toshiko Oka Director Non Executive Board

Toshimoto Mitomo Executive Vice President Senior Management

Toshimoto Mitomo Head Intellectual Property and Business

Incubation Platform Senior Management

Toshimoto Mitomo Senior General Manager - Startup

Acceleration Division Senior Management

Tsuyoshi Kodera Deputy President - Sony Interactive

Entertainment Senior Management

Tsuyoshi Kodera Director Sony Interactive Entertainment Inc Senior Management

Tsuyoshi Kodera Executive Vice President Senior Management

SOURCE: COMPANY FILINGS M A R K E T L I N E

Movies & Entertainment in North America

Industry Profiles

Table 21: Sony Corporation: Key Employees Continued

Name Job Title Board

Wendy Becker Director Non Executive Board

Yoshihiko Hatanaka Director Non Executive Board

SOURCE: COMPANY FILINGS M A R K E T L I N E

Movies & Entertainment in North America

Industry Profiles

Table 22: Sony Corporation: Key Employees Continued

Name Job Title Board

SOURCE: COMPANY FILINGS M A R K E T L I N E

Movies & Entertainment in North America

Industry Profiles

8.5. Viacom, Inc.

8.5.1. Company Overview

Viacom Inc. (Viacom) is a global media company that offers variety of entertainment content including television programs, motion pictures, short-form content, games, consumer products, podcasts, live concerts and social media experiences. The company creates, acquires and distributes entertainment content delivers it to cus tomers through cable, satellite, and broadband services. It also develops, produces, finances, acquires and distributes motion pictures, television programming and other entertainment content. Viacom provides these services under the name of various leading entertainment brands such as Nickelodeon, MTV, BET, Comedy Central, Paramount Network, VH1, TV Land, CMT and Logo. It has presence across the Americas, Asia, Europe, Middle East and Africa. The company is headquartered in New York City, New York, the US.

The company reported revenues of (US Dollars) US$12,943 million for the fiscal year ended September 2018 (FY2018), a decrease of 2.4% over FY2017. In FY2018, the company’s operating margin was 19.7%, compared to an operating margin of 20.9% in FY2017. In FY2018, the company recorded a net margin of 13.3%, compared to a net margin of 14.1% in FY2017.The company reported revenues of US$2,958.0 million for the second quarter ended March 2019, a decrease of 4.3% over the previous quarter.

8.5.2. Key Facts

Table 23: Viacom, Inc.: key facts

Head office: 1515 BroadwayNew York, New York, United States

Number of Employees: 10400

Website: www.viacom.com

Financial year-end: September

Ticker: VIAB

Stock exchange: NASDAQ

SOURCE: COMPANY WEBSITE M A R K E T L I N E

8.5.3. Business Description

Viacom, Inc. (Viacom or 'the company') produces and distributes television (TV) programming, motion pictures, and other entertainment content. The company offers content across TV, motion picture, online and mobile platforms in over 183 countries and territories.

Viacom classifies its business into two reportable segments: Media Networks and Filmed Entertainment.

Under the Media Networks segment, the company provides entertainment content and related branded products for consumers in key demographics. It creates, acquires and distributes programming to its audiences through traditional cable and satellite distribution through over-the-top (OTT) services, such as subscription video-on-demand (SVOD); on connected televisions, personal computers (PCs), tablets, smartphones, and other connected devices; using apps, browsers and other interfaces; and through a variety of social media platforms.

Viacom Media Networks operates the company's media networks businesses through three brand groups, including the Global Entertainment Group, the Nickelodeon Group, and BET Networks. Viacom Media Networks operates variety of TV channels, which include Nickelodeon, Comedy Central, MTV, VH1, SPIKE, BET, CMT, TV Land, Nick at Nite, Nick Jr, Channel 5 (the UK), Logo, Nicktoons, TeenNick, and Paramount Channel, among others.

Movies & Entertainment in North America

Industry Profiles

Through the Nickelodeon Group, the company provides entertainment, content, and services that target kids aged 2- 17 and their families. Comedy Central features late night, sketch, scripted and animated series, along with stand-up specials and series. Comedy Central produces nationwide stand-up tours and has its own record label. MTV is a youth culture brand that creates original music and pop culture content for all media platforms. Its multiplatform portfolio includes domestic linear television networks MTV, MTV2, mtvU, MTV Classic and MTV Live; MTV.com; the MTV App; and channels across all social media platforms. VH1 is the company’s lifestyle brand offering online, mobile and app experiences to consumers with content centered on VH1 shows, pop culture, celebrities and lifestyle topics, including original series, exclusive events and entertainment news. SPIKE is a general entertainment brand featuring a mix of original and acquired programming, sports series, specials, live events and movies.

BET Mobile business provides music, gaming and video content to its target audiences on mobile devices and digital services across all major service providers. CMT is the leading country music and lifestyle destination. Through its linear television network and digital presence, the company’s CMT channel offers musical shows and events, unscripted series, original documentaries, and scripted shows. TV Land features a mix of original programming, classic and contemporary television shows, specials and movies. Nick at Nite is aired on Nickelodeon in the evening hours, primarily featuring licensed contemporary family comedies. Nick Jr. is engaged in educating and entertaining preschoolers, providing kids with an opportunity to engage with characters they love while building their imaginations, gaining key cognitive and social-emotional skills. Channel 5, a public service broadcaster in the UK, and its sister channels air a broad mix of popular content, including factual programming, entertainment, reality, sports, acquired and original drama, and preschool programming through its Milkshake brand. Logo is Viacom’s entertainment brand featuring one-of-a-kind personalities, shows, specials and unique stories. Nicktoons is a cartoon channel for kids and features signature franchises and fan favorites such as Teenage Mutant Ninja Turtles, The Fairly OddParents, SpongeBob SquarePants, Sanjay & Craig and Breadwinners. TeenNick caters to kids between the age group of 6-11 featuring Nickelodeon original live action hits such as Sam & Cat, Victorious, iCarly, Zoey 101 and Drake & Josh. Paramount Channel is a 24-hour movie channel available free-to-air in Spain and Italy, and on basic cable television in France, Hungary, Russia, Romania, Sweden, Poland, Thailand/South East Asia and various Latin American countries, including Brazil, Mexico, Chile and Argentina. As of September 30, 2017, the company’s program services reached 4.3 billion television subscribers in 183 countries through over 300 programmed and operated television channels. In FY2017, the Media Networks segment reported revenue of US$10,096 million, which accounted for 75.4% of the company’s revenue.

Under the Filmed Entertainment segment, the company produces, finances, acquires and distributes motion pictures, television programming and other entertainment content under the Paramount Pictures, Paramount Animation, Paramount Players, Nickelodeon Movies, MTV Films, and Paramount Television brands. Paramount Pictures is a producer and distributor of filmed entertainment and has a library consisting of nearly 1,200 motion pictures and various television programs. Paramount Television develops, finances, and produces programming for television a nd other platforms. Some of the major productions of Paramount Pictures include several Academy Award winning movies such as Titanic, Braveheart, Forrest Gump, The Godfather, There Will Be Blood, Wings, Arrival, Fences, The Big Short, Selma and The Wolf of the Wall Street. In FY2017, the Filmed Entertainment segment released 14 films in the domestic and international theatrical market including Transformers: The Last Knight, xXx: The Return of Xander Cage, Baywatch, Ghost In The Shell, Jack Reacher: Never Go Back, Arrival and Fences. In FY2017, the Filmed Entertainment segment reported revenue of US$3,289 million, which accounted for 24.6% of the company’s revenue.

Geographically, the company classifies its operations into three segments: United States, EMEA and All Other. In FY2017, the US segment accounted for 71.6% of the company's revenue, followed by EMEA with 17%; and All Other with 11.4%.

Movies & Entertainment in North America

Industry Profiles

Table 24: Viacom, Inc.: Annual Financial Ratios

Key Ratios 2014 2015 2016 2017 2018

Growth Ratios

Sales Growth % -0.08 -3.74 -5.88 6.21 -2.41

Operating Income Growth % 3.75 -24.00 -18.36 9.82 -8.11

EBITDA Growth % 3.05 -22.67 -17.16 9.10 -7.84

Net Income Growth % -0.17 -19.62 -25.18 30.32 -8.27

EPS Growth % 13.31 -6.24 -25.33 10.27 1.02

Working Capital Growth % -55.14 -44.95 17.24 140.94 -1.27

Equity Ratios

EPS (Earnings per Share) USD 5.43 4.73 3.61 4.67 3.83

Dividend per Share USD 1.26 1.46 1.40 0.80 0.80

Dividend Cover Absolute 4.31 3.24 2.58 5.84 4.79

Book Value per Share USD 8.98 8.89 10.77 15.00 18.38

Profitability Ratios

Gross Margin % 52.54 48.24 46.48 43.93 46.85

Operating Margin % 29.54 23.32 20.23 20.92 19.69

Net Profit Margin % 17.35 14.49 11.52 14.13 13.28

Profit Markup % 110.68 93.19 86.83 78.36 88.15

PBT Margin (Profit Before Tax) % 25.50 18.86 15.94 16.68 15.43

Return on Equity % 64.29 54.32 33.62 31.05 23.21

Return on Capital Employed % 21.30 16.92 13.41 13.91 12.92

Return on Assets % 10.20 8.51 6.44 8.11 7.24

Return on Working Capital % 309.11 426.76 297.18 135.45 126.06

Operating Costs (% of Sales) % 70.46 76.68 79.77 79.08 80.31

Administration Costs (% of Sales) % 21.03 21.56 23.37 22.76 23.64

Liquidity Ratios

Current Ratio Absolute 1.33 1.19 1.23 1.55 1.50

Quick Ratio Absolute 1.12 0.98 1.00 1.30 1.28

Cash Ratio Absolute 0.25 0.13 0.10 0.37 0.38

Leverage Ratios

Debt to Equity Ratio Absolute 3.41 3.47 2.79 1.84 1.36

Net Debt to Equity Absolute 3.15 3.33 2.70 1.61 1.15

Debt to Capital Ratio Absolute 0.77 0.78 0.74 0.65 0.58

Efficiency Ratios

Asset Turnover Absolute 0.59 0.59 0.56 0.57 0.55

Fixed Asset Turnover Absolute 13.41 13.52 13.29 13.89 13.65

Inventory Turnover Absolute 8.10 8.42 8.20 8.44 7.58

Current Asset Turnover Absolute 2.30 2.70 2.74 2.57 2.18

Capital Employed Turnover Absolute 0.72 0.73 0.66 0.66 0.66

Working Capital Turnover Absolute 10.47 18.30 14.69 6.48 6.40

SOURCE: COMPANY FILINGS M A R K E T L I N E

Movies & Entertainment in North America

Industry Profiles

Table 25: Viacom, Inc.: Key Employees

Name Job Title Board

Bruce Gillmer Executive Vice President Music/Talent

Programing and Events, Viacom International Media Networks

Senior Management

Bruce Gillmer Head Music/Talent, Global Entertainment

Group Senior Management

Charles E. Phillips, Jr. Director Non Executive Board

Chris McCarthy President MTV, VH1 and Logo Group Senior Management

Christa A. D'Alimonte Executive Vice President Senior Management

Christa A. D'Alimonte General Counsel Senior Management

Christa A. D'Alimonte Secretary Senior Management

Cristiana Falcone Sorrell Director Non Executive Board

David Kline Chief Technology Officer Senior Management

David Kline Executive Vice President Senior Management

David Lynn Chief Executive Officer Viacom International

Media Networks Senior Management

David Lynn President Senior Management

Deborah Norville Director Non Executive Board

Doretha F. Lea Executive Vice President Global Government

Affairs Senior Management

Fukiko Ogisu Chief People Officer Senior Management

Fukiko Ogisu Executive Vice President Senior Management

James Bombassei Senior Vice President Investor Relations and

Treasurer Senior Management

James N. Gianopulos Chairman, Paramount Pictures Corporation Senior Management

James N. Gianopulos Chief Executive Officer Paramount Pictures

Corporation Senior Management

Jose Tolosa Chief Transformation Officer Senior Management

Judith A. McHale Director Non Executive Board

Julia Phelps Senior Vice President Communications,

Culture and Marketing Senior Management

Kelly Day President Viacom Digital Studios Senior Management

Kenneth B. Lerer Director Non Executive Board

Kent Alterman President Comedy Central, Paramount

Network and TV Land Group Senior Management

Kern Schireson Chief Data Officer Senior Management

Kern Schireson Executive Vice President Senior Management

Kevin Kay President Paramount Network, TV Land and

CMT Senior Management

Marva Smalls Chief of Staff, Nickelodeon Group Senior Management

Marva Smalls Executive Vice President Public Affairs Senior Management

SOURCE: COMPANY FILINGS M A R K E T L I N E

Movies & Entertainment in North America

Industry Profiles

Table 26: Viacom, Inc.: Key Employees Continued

Name Job Title Board

Marva Smalls Global Head of Inclusion Strategy, Viacom Senior Management

Nicole Seligman Director Non Executive Board

Robert M. Bakish Chief Executive Officer Executive Board

Robert M. Bakish Director Executive Board

Robert M. Bakish President Executive Board

Ronald L. Nelson Director Non Executive Board

Sarah Kirshbaum Chief Operating Officer Viacom Media

Networks Senior Management

Scott M. Mills President BET Networks Senior Management

Sean Moran Head Marketing and Partner Solutions Senior Management

Shari E. Redstone Vice Chairman Non Executive Board

Thomas J. May Chairman Non Executive Board

Tom Gorke Executive Vice President Senior Management

Tom Gorke Head Distribution and Business Development Senior Management

Wade C. Davis Chief Financial Officer Senior Management

Wade C. Davis Executive Vice President Senior Management

SOURCE: COMPANY FILINGS M A R K E T L I N E

Movies & Entertainment in North America

Industry Profiles

8.6. Vivendi S.A.

8.6.1. Company Overview

Vivendi S.A. (Vivendi or "the company") is an integrated media and content company, engaged in providing pay television (Pay-TV), film production and distribution, subscription video-on-demand, and music services. It provides Set-top boxes, Mobile TV, Web TV, Free-to-air TV and International pay-TV, communications services in media expertise, creativity, healthcare/wellness areas; operates pay-TV; creates, develops, distributes downloadable video games; produces, sells, and distributes movies and TV series; and shows interests in several event venues. The company has its operations in France, the US, Brazil, and Morocco. The company is headquartered in Paris, France.

The company reported revenues of (Euro) EUR13,932 million for the fiscal year ended December 2018 (FY2018), an increase of 11.4% over FY2017. In FY2018, the company’s operating margin was 0.8%, compared to an operating margin of 8.1% in FY2017. In FY2018, the company recorded a net margin of 0.9%, compared to a net margin of 9.7% in FY2017.

8.6.2. Key Facts

Table 27: Vivendi S.A.: key facts

Number of Employees: 41600

Website: www.vivendi.com

Financial year-end: December

Ticker: VIV

Stock exchange: Euronext Paris

SOURCE: COMPANY WEBSITE M A R K E T L I N E

8.6.3. Business Description

Vivendi S.A. (Vivendi or "the company") is a global content and media provider with presence across the entire digital value chain. The company creates and publishes content for which it develops broadcast networks and distribution platforms. It has presence in television channels, production and distribution of films, music, and digital businesses. Vivendi primarily operates in France, the US, Europe and other geographies.

The company operates through its five operating segments: Universal Music Group (UMG), Canal+ Group, Gameloft, Vivendi Village and New Initiatives.

Universal Music Group is engaged in the sale of recorded music (physical and digital media), exploitation of music publishing rights, as well as artist services and merchandising. In FY2017, the Universal Music Group segment reported revenues of EUR5,673 million, which accounted for 45.4% of the company's revenue.

Canal+ Group is a publisher and distributor of premium and thematic pay-TV and free-to-air channels in France, Poland, Africa and Vietnam, as well as production, sales and distribution of cinema films and TV series. In FY2017, the Canal+ Group segment reported revenues of EUR5,246 million, which accounted for 42% of the company's revenue.

Gameloft is engaged in the creation and publishing of downloadable video games for mobile phones, tablets, triple- play boxes and smart TVs. In FY2017, the Gameloft segment reported revenues of EUR258 million, which accounted for 2.1% of the company's revenue.

Vivendi Village is comprised of Vivendi Ticketing (including See Tickets and Digitick), MyBestPro (experts counseling), Watchever (subscription streaming services), Radionomy (digital radio), the venues L’Olympia and Theatre de

Movies & Entertainment in North America

Industry Profiles

L’OEuvre in Paris, and CanalOlympia in Africa, as well as Olympia Production. In addition, Paddington Bear has been integrated within Vivendi Village since December 31, 2017. In FY2017, the Vivendi Village segment reported revenues of EUR109 million, which accounted for 0.9% of the company's revenue.

New Initiatives includes Dailymotion (video content aggregation and distribution platform), Vivendi Content (notably including Flab Prod and Studio+), Canal Factory and Group Vivendi Africa (business in the process of being developed). In FY2017, the New Initiatives segment reported revenues of EUR51 million, which accounted for 0.4% of the company's revenue.

Geographically, the company classifies its operations into four segments: France, the US, Rest of Europe and Rest of the world. In FY2017, France segment accounted for 35.3% of the company's revenues, followed by the US with 24.2%; Rest of Europe with 22.8%; and Rest of the world with 17.7%

Movies & Entertainment in North America

Industry Profiles

Table 28: Vivendi S.A.: Annual Financial Ratios

Key Ratios 2014 2015 2016 2017 2018

Growth Ratios

Sales Growth % -1.59 6.67 0.53 15.55 11.45

Operating Income Growth % -91.26 3128.95 -27.95 15.16 -88.80

EBITDA Growth % -91.26 3128.95 -27.95 15.16 -88.80

Net Income Growth % 141.18 -59.27 -34.99 -3.18 -89.56

EPS Growth % -2.91 157.97 49.27 20.09 -29.93

Working Capital Growth % -751.49 -48.34 -55.26 -141.56 -187.26

Equity Ratios

EPS (Earnings per Share) EUR -0.22 0.51 0.93 0.97 0.10

Dividend per Share EUR 1.00 3.00 0.40 0.45 0.50

Dividend Cover Absolute -0.22 0.17 2.32 2.15 0.20

Book Value per Share EUR 16.73 15.54 15.39 14.03 13.53

Profitability Ratios

Gross Margin % 39.33 39.09 36.88 41.72 45.32

Operating Margin % 0.38 11.40 8.17 8.14 0.82

Net Profit Margin % 47.02 17.95 11.61 9.73 0.91

Profit Markup % 64.83 64.18 58.43 71.60 82.88

PBT Margin (Profit Before Tax) % -1.06 11.02 12.31 7.15 3.69

Return on Equity % 20.99 9.26 6.48 6.90 0.74

Return on Capital Employed % 0.13 4.70 3.50 4.18 0.47

Return on Assets % 11.17 5.47 3.73 3.65 0.37

Return on Working Capital % 0.43 27.16 43.74 15.55

Operating Costs (% of Sales) % 99.62 88.60 91.83 91.86 99.18

Administration Costs (% of Sales) % 31.81 33.18 31.38 34.25 36.05

Liquidity Ratios

Current Ratio Absolute 2.25 1.51 1.28 0.91 1.07

Quick Ratio Absolute 2.23 1.50 1.27 0.90 1.05

Cash Ratio Absolute 0.98 1.06 0.72 0.21 0.44

Leverage Ratios

Debt to Equity Ratio Absolute 0.09 0.11 0.19 0.24 0.32

Net Debt to Equity Absolute -0.21 -0.28 -0.01 0.14 0.10

Debt to Capital Ratio Absolute 0.08 0.10 0.16 0.20 0.24

Efficiency Ratios

Asset Turnover Absolute 0.24 0.30 0.32 0.38 0.40

Fixed Asset Turnover Absolute 2.44 14.80 15.37 15.62 9.32

Inventory Turnover Absolute 27.57 56.75 56.91 48.57 39.78

Current Asset Turnover Absolute 0.64 0.74 0.96 1.37 1.33

Capital Employed Turnover Absolute 0.35 0.41 0.43 0.51 0.58

Working Capital Turnover Absolute 1.15 2.38 5.35 19.01

SOURCE: COMPANY FILINGS M A R K E T L I N E

Movies & Entertainment in North America

Industry Profiles

Table 29: Vivendi S.A.: Key Employees

Name Job Title Board

Arnaud de Puyfontaine Chief Executive Officer Management Board Senior Management

Dominique Delport Director Non Executive Board

Frederic Crepin General Counsel and Member of Management

Board Senior Management

Herve Philippe Chief Financial Officer and Member of

Management Board Senior Management

Paulo Cardoso Director Non Executive Board

Philippe Benacin Vice Chairman, Supervisory Board Non Executive Board

Sandrine Le Bihan Director Non Executive Board

Simon Gillham Member Senior Management

Stephane Roussel Chief Operating Officer and Gameloft, Chairman and Chief Executive Officer

Senior Management

Tarak Ben Ammar Director Non Executive Board

Veronique Driot-Argentin Director Non Executive Board

Vincent Bollore Chairman Non Executive Board

Virginie Chomicki Director Non Executive Board

Virginie Morgon Member, Supervisory Board Non Executive Board

Yannick Bollore Member, Supervisory Board Non Executive Board

SOURCE: COMPANY FILINGS M A R K E T L I N E

Movies & Entertainment in North America

Industry Profiles

8.7. Spotify AB

8.7.1. Company Overview

Spotify AB (Spotify) is a music streaming service that gives instant access to songs on phones, computer and tablet. It also helps to browse through the music collections of friends, artists and celebrities, or create a radio station. The company develops tools such as Spotify Web API that helps to fetch data from the music catalog and manage user’s playlists and saved music. Spotify also allows users to share music with their known ones via email, facebook, blog, twitter, and Spotify. Its libspotify C API package allows to build personal music streaming applications. The company has operations across Mexico, Hong Kong, Singapore, the UK, the US, Poland, Norway, France, Italy, Finland, Spain, Denmark, Canada, Germany and Belgium. Spotify is headquartered in Stockholm City, Stockholm, Sweden.

8.7.2. Key Facts

Table 30: Spotify AB: key facts

Head office: Regeringsgatan 19, Stockholm City, Stockholm, Sweden

Website: www.spotify.com

Financial year-end: April

SOURCE: COMPANY WEBSITE M A R K E T L I N E

Movies & Entertainment in North America

Industry Profiles

Table 31: Spotify AB: Key Employees

Name Job Title Board

Alex Norstrom Chief Premium Business Officer Senior Management

Barry McCarthy Chief Financial Officer Senior Management

Cameron Farrelly Global Creative Director Senior Management

Christopher Marshall Director Non Executive Board

Cristina Stenbeck Director Non Executive Board

Daniel Ek Chairman Executive Board

Daniel Ek Chief Executive Officer Executive Board

Dawn Ostroff Chief Content Officer Senior Management

Gustav Soderstrom Chief Research & Development Officer Senior Management

Heidi O’Neill Director Non Executive Board

Karen Lawson Managing Director Australia and New Zealand Senior Management

Katarina Berg Chief Human Resources Officer Senior Management

Lee Brown Head Global Sales Senior Management

Liz Gateley Head Creative Development Senior Management

Martin Lorentzon Director Non Executive Board

Padmasree Warrior Director Non Executive Board

Paul Sawyer Chief Accounting Officer Senior Management

Seth Farbman Chief Marketing Officer Senior Management

Shishir Mehrotra Director Non Executive Board

Ted Sarandos Director Non Executive Board

Thomas Staggs Director Non Executive Board

SOURCE: COMPANY FILINGS M A R K E T L I N E

Movies & Entertainment in North America

Industry Profiles

8.8. Lions Gate Entertainment Corp.

8.8.1. Company Overview

Lions Gate Entertainment Corp. (Lionsgate) is a global content platform. The company is involved in picture production and distribution, television (TV) programming and syndication, home entertainment, international distribution and sales, branded channel platforms, interactive ventures and games, and location-based entertainment. Its films, TV series, digital products and linear and over-the-top platforms reach audiences worldwide. The company operates in the US, the UK and Canada, and has output agreements for its films in Australia, New Zealand, Benelux, Canada, Commonwealth of Independent States (CIS), Eastern Europe, France, Germany, Austria, Italy, Poland, Scandinavia and Spain. Lionsgate is headquartered in Santa Monica, California, the US.

The company reported revenues of (US Dollars) US$3,680.5 million for the fiscal year ended March 2019 (FY2019), a decrease of 10.9% over FY2018. The operating loss of the company was US$22.8 million in FY2019, compared to an operating profit of US$183.8 million in FY2018. The net loss of the company was US$284.2 million in FY2019, compared to a net profit of US$473.6 million in FY2018.

8.8.2. Key Facts

Table 32: Lions Gate Entertainment Corp.: key facts

Head office: 2700 Colorado AvenueSanta Monica, California, United States

Telephone: 1 310 449 9200

Number of Employees: 1415

Website: www.lionsgate.com

Financial year-end: March

Ticker: LGF

Stock exchange: New York Stock Exchange

SOURCE: COMPANY WEBSITE M A R K E T L I N E

8.8.3. Business Description

Lions Gate Entertainment Corp. (Lionsgate) is a next generation content provider with presence in motion picture production and distribution, television (TV) programming and syndication, home entertainment, family entertainment, digital distribution, new channel platforms and international distribution and sales.

The company operates through three segments: Motion Picture, Television Production and Media Networks.

Movies & Entertainment in North America

Industry Profiles

Table 33: Lions Gate Entertainment Corp.: Annual Financial Ratios

Key Ratios 2014 2015 2016 2017 2018

Growth Ratios

Sales Growth % -8.77 -2.18 36.38 28.97 -10.86

Operating Income Growth % -4.43 -111.88 -112.40

EBITDA Growth % -4.28 -105.50 1179.10 -58.98

Net Income Growth % 19.56 -72.38 -70.52 3100.00 -160.01

EPS Growth % 5.80 -69.05 21.18 256.72 -131.54

Working Capital Growth % 8.62 -142.72 -100.06 -127960.00 -59.64

Equity Ratios

EPS (Earnings per Share) USD 1.20 0.33 0.09 1.40 -1.33

Dividend per Share USD 0.24 0.32 0.18 0.09

Dividend Cover Absolute 20.80 4.99 1.02 0.48 15.58

Book Value per Share USD 5.79 5.79 12.12 14.95 13.51

Profitability Ratios

Gross Margin % 45.17 39.71 40.53 44.06 45.51

Operating Margin % 8.78 -1.07 -1.13 4.45 -0.62

Net Profit Margin % 7.58 2.14 0.46 11.47 -7.72

Profit Markup % 82.37 65.86 68.16 78.77 83.53

PBT Margin (Profit Before Tax) % 8.89 -1.44 -4.20 3.60 -8.37

Return on Equity % 21.58 5.90 0.59 15.01 -9.74

Return on Capital Employed % 7.12 -1.20 -0.48 2.80 -0.34

Return on Assets % 5.92 1.41 0.23 5.21 -3.27

Return on Working Capital % 11.70 10.29 -7260.00

Return on Working Capital % 11.70 10.29

Operating Costs (% of Sales) % 91.22 101.07 101.13 95.55 100.62

Administration Costs (% of Sales) % 35.63 40.22 36.30 32.74 34.80

Liquidity Ratios

Current Ratio Absolute 7.16 0.50 1.00 0.73 0.84

Quick Ratio Absolute 3.00 0.49 0.83 0.62 0.65

Cash Ratio Absolute 0.31 0.03 0.19 0.16 0.11

Leverage Ratios

Debt to Equity Ratio Absolute 1.56 1.86 1.76 1.24 1.22

Net Debt to Equity Absolute 1.44 1.79 1.63 1.12 1.16

Debt to Capital Ratio Absolute 0.61 0.65 0.64 0.55 0.55

Efficiency Ratios

Asset Turnover Absolute 0.78 0.66 0.49 0.45 0.42

Fixed Asset Turnover Absolute 116.48 67.02 30.65 25.24 23.22

Inventory Turnover Absolute 0.99 2.02 12.43 8.26 6.81

Current Asset Turnover Absolute 1.04 1.45 2.50 2.38 2.32

Capital Employed Turnover Absolute 0.81 1.12 0.43 0.63 0.54

SOURCE: COMPANY FILINGS M A R K E T L I N E

Movies & Entertainment in North America

Industry Profiles

Table 34: Lions Gate Entertainment Corp.: Annual Financial Ratios (Continued)

Key Ratios 2014 2015 2016 2017 2018

Working Capital Turnover Absolute 1.40 1.17 6403.00

Working Capital Turnover Absolute 1.40 1.17

SOURCE: COMPANY FILINGS M A R K E T L I N E

Movies & Entertainment in North America

Industry Profiles

Table 35: Lions Gate Entertainment Corp.: Key Employees

Name Job Title Board

Aaron Janus Senior Vice President Production Senior Management

Arthur Evrensel Director Non Executive Board

Brian Goldsmith Chief Operating Officer Senior Management

Corii D. Berg General Counsel Senior Management

Daniel Sanchez Director Non Executive Board

Daryl Simm Director Non Executive Board

David M. Zaslav Director Non Executive Board

Emily Fine Director Non Executive Board

Erin Westerman Executive Vice President Production Senior Management

Gene George Executive Vice President Worldwide

Distribution Senior Management

Gordon Crawford Director Non Executive Board

Hardwick Simmons Director Non Executive Board

James W. Barge Chief Financial Officer Senior Management

Jared Goetz President North American television

distribution Senior Management

Jon Feltheimer Chief Executive Officer Executive Board

Jon Feltheimer Director Executive Board

Kerry Phelan President Global Franchise Management Senior Management

Marisa Liston Head Global Earned Media, Communications Senior Management

Mark H. Rachesky, M.D. Chairman of the Board Non Executive Board

Meredith Wieck Vice President Production Senior Management

Michael Burns Vice Chairman of the Board Executive Board

Michael T. Fries Director Non Executive Board

Nathan Kahane President Senior Management

Rohit Jain Managing Director India Senior Management

Ron Schwartz President Lionsgate Worldwide Home

Entertainment Senior Management

Shaun Barber Executive Vice President Senior Management

Shaun Barber General Sales Manager Operational Management

Sir Lucian Grainge Director Non Executive Board

Susan Hummel Executive Vice President Canada Senior Management

Susan Hummel Managing Director Canada Senior Management

SOURCE: COMPANY FILINGS M A R K E T L I N E

Movies & Entertainment in North America

Industry Profiles

Table 36: Lions Gate Entertainment Corp.: Key Employees Continued

Name Job Title Board

Susan McCaw Director Non Executive Board

SOURCE: COMPANY FILINGS M A R K E T L I N E

Movies & Entertainment in North America

Industry Profiles

8.9. Amazon.com, Inc.

8.9.1. Company Overview

Amazon.com, Inc. (Amazon or 'the company') is a retailer that offers its products through online and physical stores. The company offers a range of merchandise, including books, apparel, electronics, home and garden tools, toys and baby games, sports and outdoor products, automotive and industrial products and other general merchandise products. It also provides services that includes web services, order fulfillment, publishing, advertising and co-branded credit cards services. The company manufactures and sells electronic devices, including Kindle e-readers, Fire tablets, Fire televisions (TVs) and Echo. Amazon markets its products through its website, www.amazon.com. Amazon also operates through various international websites. It has business presence across North America, Europe and Asia- Pacific. The company is headquartered in Seattle, Washington, the US.

The company reported revenues of (US Dollars) US$232,887 million for the fiscal year ended December 2018 (FY2018), an increase of 30.9% over FY2017. In FY2018, the company’s operating margin was 5.3%, compared to an operating margin of 2.3% in FY2017. In FY2018, the company recorded a net margin of 4.3%, compared to a net margin of 1.7% in FY2017.The company reported revenues of US$63,404.0 million for the second quarter ended June 2019, an increase of 6.2% over the previous quarter.

8.9.2. Key Facts

Table 37: Amazon.com, Inc.: key facts

Head office: 410 Terry Avenue NorthSeattle, Washington, United States

Number of Employees: 647500

Website: www.amazon.com

Financial year-end: December

Ticker: AMZN

Stock exchange: NASDAQ

SOURCE: COMPANY WEBSITE M A R K E T L I N E

8.9.3. Business Description

Amazon.com, Inc. (Amazon or 'the company') is an online retailer. The company offers a range of products and services through its physical stores and e-commerce site, amazon.com. . The company offers a range of merchandise, including books, apparel, home and garden tools, toys and baby games, sports and outdoor products, automotive and industrial products and other general merchandise products. It also sells electronic devices, such as Fire tablets, Kindle e-readers, Echo devices and Fire TVs. Moreover, it offers a membership program called Amazon Prime, which provides customers unlimited free shipping option on over 100 million items, access to unlimited streaming of thousands of movies and TV episodes, and other benefits. The company also provides advertising services and order fulfillment services to its consumers.

The company operates through three business segments: North America, International and Amazon Web Services (AWS).

The North America segment focuses on retail sales of consumer products (including from sellers) and handles subscriptions through North America-focused online and physical stores. This segment also includes export sales generated from the online stores. In FY2018, the North America segment reported revenue of US$141,366million, which accounted for 60.7% of the company's revenue.

Movies & Entertainment in North America

Industry Profiles

The International segment includes the retail sales of consumer products (including from sellers) and subscriptions from internationally focused online stores. This segment also includes export sales from international online stores (including export sales from their respective sites to customers in the US, Canada and Mexico), but excludes export sales from North American online stores. In FY2018, the International segment reported revenue of US$65,866 million, which accounted for 28.3% of the company's revenue.

The Amazon Web Services (AWS) segment includes global sales of compute, storage, database, and other AWS service offerings for start-ups, enterprises, government agencies, and academic institutions. In FY2018, the AWS segment reported revenue of US$25,655 million, which accounted for 11% of the company's revenue.

Amazon serves four primary customer sets: consumers, sellers, developers and enterprises, and content creators. The company also develops and produces media content. Amazon fulfills customer orders through its fulfillment centers and delivery networks that it operates in North America and other foreign countries; co-sourced and outsourced arrangements in certain countries; and digital delivery. Amazon serves sellers by offering programs that enable them to sell their products on their websites and also on Amazon's websites. The company earns fixed fees, per-unit activity fees and interest on such transactions. The company serves developers and enterprises through AWS, which provides a broad set of global compute, storage, database, and other service offerings. Amazon serves content creators such as authors and independent publishers through Kindle Direct Publishing, an online platform that allows independent authors and publishers to select a royalty option and make their books available in the Kindle Store. The company also offers its own publishing arm, Amazon Publishing. It also offers programs that allow authors, musicians, filmmakers, application developers, and others to publish and sell content.

Geographically, the company classifies its operations into five regions: the US, Germany, Japan, the UK, and Rest of the World. In FY2018, the US accounted for 68.8% of the company's revenue, followed by Germany (8.5%), the UK (6.2%), Japan (5.9%), and Rest of the World (10.5%).

Movies & Entertainment in North America

Industry Profiles

Table 38: Amazon.com, Inc.: Annual Financial Ratios

Key Ratios 2014 2015 2016 2017 2018

Growth Ratios

Sales Growth % 19.52 20.25 27.08 30.80 30.93

Operating Income Growth % -76.11 1154.49 87.46 -1.91 202.51

EBITDA Growth % -60.68 585.52 81.76 -0.02 188.37

Net Income Growth % -187.96 297.82 27.92 232.11

EPS Growth % -188.53 292.06 -7.08 335.70

Working Capital Growth % 96.84 -43.85 8.09 17.76 189.97

Equity Ratios

EPS (Earnings per Share) USD -0.52 1.25 4.90 4.55 19.83

Book Value per Share USD 23.10 28.42 40.43 57.25 88.69

Profitability Ratios

Gross Margin % 29.48 33.04 35.09 37.07 40.25

Operating Margin % 0.20 2.09 3.08 2.31 5.33

Net Profit Margin % -0.27 0.56 1.74 1.71 4.33

Profit Markup % 41.81 49.34 54.07 58.90 67.36

PBT Margin (Profit Before Tax) % -0.12 1.47 2.86 2.14 4.84

Return on Equity % -2.24 4.45 12.29 10.95 23.13

Return on Capital Employed % 0.67 7.24 10.57 5.59 13.18

Return on Assets % -0.51 1.00 3.20 2.83 6.85

Return on Working Capital % 5.50 122.83 213.03 177.44 185.11

Operating Costs (% of Sales) % 99.80 97.91 96.92 97.69 94.67

Administration Costs (% of Sales) % 18.71 19.07 20.06 21.92 22.40

Liquidity Ratios

Current Ratio Absolute 1.12 1.05 1.04 1.04 1.10

Quick Ratio Absolute 0.82 0.75 0.78 0.76 0.85

Cash Ratio Absolute 0.62 0.58 0.59 0.54 0.60

Leverage Ratios

Debt to Equity Ratio Absolute 1.50 1.06 1.06 1.59 1.13

Net Debt to Equity Absolute 0.14 -0.13 0.06 0.85 0.40

Debt to Capital Ratio Absolute 0.60 0.51 0.51 0.61 0.53

Efficiency Ratios

Asset Turnover Absolute 1.88 1.79 1.84 1.66 1.58

Fixed Asset Turnover Absolute 6.38 5.52 5.34 4.56 4.21

Inventory Turnover Absolute 7.99 7.73 8.13 8.14 8.38

Current Asset Turnover Absolute 3.18 3.19 3.34 3.36 3.44

Capital Employed Turnover Absolute 3.37 3.47 3.44 2.42 2.47

Working Capital Turnover Absolute 27.48 58.86 69.20 76.87 34.71

SOURCE: COMPANY FILINGS M A R K E T L I N E

Movies & Entertainment in North America

Industry Profiles

Table 39: Amazon.com, Inc.: Key Employees

Name Job Title Board

Andrew R. Jassy Chief Executive Officer Amazon Web Services Senior Management

Brian T. Olsavsky Chief Financial Officer Senior Management

Brian T. Olsavsky Senior Vice President Senior Management

Daniel P. Huttenlocher Director Non Executive Board

David A. Zapolsky General Counsel Senior Management

David A. Zapolsky Secretary Senior Management

David A. Zapolsky Senior Vice President Senior Management

Indra Nooyi Director Non Executive Board

Jamie S. Gorelick Director Non Executive Board

Jeffrey A. Wilke Chief Executive Officer Worldwide Consumer Senior Management

Jeffrey M. Blackburn Senior Vice President Business Development Senior Management

Jeffrey P. Bezos Chairman Executive Board

Jeffrey P. Bezos Chief Executive Officer Executive Board

Jeffrey P. Bezos President Executive Board

Jonathan J. Rubinstein Director Non Executive Board

Judith A. McGrath Director Non Executive Board

Patricia Q. Stonesifer Director Non Executive Board

Rosalind G. Brewer Director Non Executive Board

Sahar Baghery Business Development Executive, EMEA-

Amazon Prime Video Senior Management

Shelley L. Reynolds Controller Senior Management

Shelley L. Reynolds Principal Accounting Officer Senior Management

Shelley L. Reynolds Vice President Senior Management

Thomas O. Ryder Director Non Executive Board

Tom A. Alberg Director Non Executive Board

Wendell P. Weeks Director Non Executive Board

SOURCE: COMPANY FILINGS M A R K E T L I N E

Movies & Entertainment in North America

Industry Profiles

8.10. Netflix, Inc.

8.10.1. Company Overview

Netflix, Inc. (Netflix) is an online television network streaming TV shows and movies. The company offers DVDs and Blu-ray titles to subscribers, apart from a separate library of movies. Netflix subscribers can watch unlimited TV shows and movies streamed over the Internet to their TVs, computers and mobile devices and also as receive digital versatile discs (DVDs) delivered to their homes. The company also offers free-trial memberships to new members and certain rejoining members. Netflix uses the services of third-party cloud computing providers such as Amazon Web Services, and other content delivery networks to stream the content over the internet efficiently. The company primarily operates in the US. Netflix is headquartered in Los Gatos, California, the US.

The company reported revenues of (US Dollars) US$15,794.3 million for the fiscal year ended December 2018 (FY2018), an increase of 35.1% over FY2017. In FY2018, the company’s operating margin was 10.2%, compared to an operating margin of 7.2% in FY2017. In FY2018, the company recorded a net margin of 7.7%, compared to a net margin of 4.8% in FY2017.The company reported revenues of US$4,923.1 million for the second quarter ended June 2019, an increase of 8.9% over the previous quarter.

8.10.2. Key Facts

Table 40: Netflix, Inc.: key facts

Head office: 100 Winchester CirLos Gatos, California, United States

Number of Employees: 7100

Website: www.netflix.com

Financial year-end: December

Ticker: NFLX

Stock exchange: NASDAQ

SOURCE: COMPANY WEBSITE M A R K E T L I N E

8.10.3. Business Description

Netflix, Inc. (Netflix) is an internet television network that offers movies and TV shows. It also delivers original series, documentaries and feature films on its screens. Subscribers can instantly watch content streamed to their TVs, computers and mobile devices and receive DVDs delivered to their homes as well. The company has a subscriber base of more than 117 million members across 190 countries globally.

The company operates through three reportable business segments: Domestic Streaming, International Streaming and Domestic DVD.

The Domestic Streaming segment derives revenues from membership fees for monthly subscription services consisting of streaming content to the members in the US. In FY2017, the segment had 54.8 million memberships and 52.8 million paid memberships. As of December 31, 2017, the domestic streaming segment reported revenue of US$6,153 million, which accounted for 52.6% of the company’s total revenue.

The International Streaming segment derives revenues from membership fees for monthly subscription services consisting of streaming content to members outside the US (such as Canada, the UK, Ireland, Sweden, Norway, Denmark, Finland, the Netherlands, Belgium, Luxembourg, France, Germany, Japan, Austria, Switzerland, Cuba, Australia, New Zealand, Spain, Italy, South Korea, Singapore, Hong Kong, Taiwan and Portugal). In FY2017, the

Movies & Entertainment in North America

Industry Profiles

segment had 62.8 million memberships and 57.8 million paid memberships. In FY2017, the International streaming segment reported revenue of US$5,089.2 million, which accounted for 43.5% of the company’s total revenue.

The Domestic DVD segment derives revenues from monthly subscription fees for services consisting of DVD by mail. In FY2017, the company had 3.4 million memberships and 3.3 million paid memberships. As of December 31, 2017, the domestic DVD segment reported revenue of US$450.5 million, which accounted for 3.9% of the company’s total revenue.

The company also offers free-trial memberships to new members and certain rejoining members. Netflix uses the services of third-party cloud computing providers such as Amazon Web Services, and other content delivery networks to stream the content over the internet efficiently. Netflix ships and receives DVDs across the US. The company maintains a network of shipping centers that allow the company to provide fast delivery and return service to subscribers. Netflix also streams movies and TV shows instantly to members' TVs, computers and mobile devices over the internet. In addition, the company streams content on other internet-connected devices, including digital video players and TV set-top boxes. Netflix has agreements with various cable, satellite and telecommunications operators to make its service available through the TV set-top boxes of these service providers.

Movies & Entertainment in North America

Industry Profiles

Table 41: Netflix, Inc.: Annual Financial Ratios

Key Ratios 2014 2015 2016 2017 2018

Growth Ratios

Sales Growth % 25.83 23.16 30.26 32.41 35.08

Operating Income Growth % 98.14 -24.05 24.19 120.83 91.40

EBITDA Growth % 98.14 -24.05 24.19 120.83 91.40

Net Income Growth % 137.36 -54.03 52.22 199.41 116.71

EPS Growth % 103.74 -54.51 51.45 235.54 83.49

Working Capital Growth % 39.73 50.50 -40.40 94.39 45.52

Equity Ratios

EPS (Earnings per Share) USD 0.62 0.28 0.43 1.43 2.62

Book Value per Share USD 4.39 5.20 6.23 8.26 12.00

Profitability Ratios

Gross Margin % 31.83 32.27 31.72 34.49 36.89

Operating Margin % 7.31 4.51 4.30 7.17 10.16

Net Profit Margin % 4.85 1.81 2.11 4.78 7.67

Profit Markup % 46.68 47.65 46.45 52.65 58.46

PBT Margin (Profit Before Tax) % 6.35 2.09 2.95 4.15 7.77

Return on Equity % 14.36 5.52 6.97 15.60 23.12

Return on Capital Employed % 9.19 4.58 4.22 6.19 8.24

Return on Assets % 4.28 1.42 1.57 3.43 5.38

Return on Working Capital % 31.86 16.08 33.50 38.06 50.06

Operating Costs (% of Sales) % 92.69 95.49 95.70 92.83 89.84

Administration Costs (% of Sales) % 15.93 18.16 17.77 18.32 18.99

Liquidity Ratios

Current Ratio Absolute 1.47 1.54 1.25 1.40 1.49

Quick Ratio Absolute 1.47 1.54 1.25 1.40 1.49

Cash Ratio Absolute 0.60 0.65 0.38 0.52 0.58

Leverage Ratios

Debt to Equity Ratio Absolute 0.49 1.08 1.27 1.82 1.98

Net Debt to Equity Absolute -0.11 0.27 0.72 1.03 1.26

Debt to Capital Ratio Absolute 0.33 0.52 0.56 0.65 0.66

Efficiency Ratios

Asset Turnover Absolute 0.88 0.79 0.74 0.72 0.70

Fixed Asset Turnover Absolute 38.84 41.94 41.67 41.04 42.82

Current Asset Turnover Absolute 1.58 1.45 1.58 1.75 1.82

Capital Employed Turnover Absolute 1.26 1.02 0.98 0.86 0.81

Working Capital Turnover Absolute 4.36 3.56 7.79 5.31 4.93

SOURCE: COMPANY FILINGS M A R K E T L I N E

Movies & Entertainment in North America

Industry Profiles

Table 42: Netflix, Inc.: Key Employees

Name Job Title Board

A. George Battle Director Non Executive Board

Ann Mather Director Non Executive Board

Anne M. Sweeney Director Non Executive Board

Ben Kelly Manager - Nonfiction Series Senior Management

Bradford L. Smith Director Non Executive Board

David Hyman General Counsel Senior Management

David Hyman Secretary Senior Management

David Wells Chief Financial Officer Senior Management

Greg Peters Chief Product Officer Senior Management

Jay C. Hoag Director Non Executive Board

Jessica Neal Chief Talent Officer Senior Management

Kelly Bennett Chief Marketing Officer Senior Management

Leslie Kilgore Director Non Executive Board

Melissa Cobb Vice President Kids and Family Senior Management

Rachel Whetstone Chief Communications Officer Senior Management

Reed Hastings Chairman Executive Board

Reed Hastings Chief Executive Officer Executive Board

Reed Hastings President Executive Board

Richard N. Barton Director Non Executive Board

Rodolphe Belmer Director Non Executive Board

Susan Rice Director Non Executive Board

Ted Sarandos Chief Content Officer Senior Management

Timothy M. Haley Director Non Executive Board

SOURCE: COMPANY FILINGS M A R K E T L I N E

Movies & Entertainment in North America

Industry Profiles

8.11. Warner Music Group Corp.

8.11.1. Company Overview

Warner Music Group Corp. (Warner Music or 'the company'), a wholly-owned subsidiary of Access Industries, is a music-based content provider. The company provides recorded music CDs, Vinyl and DVDs and digital services such as streaming and downloads formats under Asylum, Atlantic, Big Beat, Sire, Rhino, Canvasback, Eastwest, Elektra and Erato brands. It also offers artist services, concert promotions, sponsorships, merchandising and artist management. The company sells physical recorded music products through music specialty stores, general entertainment specialty stores, supermarkets, mass merchants and discounters, independent retailers and other traditional retailers. Warner Music is headquartered in New York City, New York, the US.

The company reported revenues of (US Dollars) US$2,984 million for the fiscal year ended September 2010 (FY2010), a decrease of 6.7% over FY2009. In FY2010, the company’s operating margin was 3%, compared to an operating margin of 3% in FY2009. The net loss of the company was US$143 million in FY2010, compared to a net loss of US$100 million in FY2009.The company reported revenues of US$682.0 million for the second quarter ended March 2011, a decrease of 13.6% over the previous quarter.

8.11.2. Key Facts

Table 43: Warner Music Group Corp.: key facts

Head office: 1633 BroadwayNew York, New York, United States

Number of Employees: 4660

Website: www.wmg.com

Financial year-end: September

SOURCE: COMPANY WEBSITE M A R K E T L I N E

8.11.3. Business Description

Warner Music Group Corp.(Warner Music or ‘the company’) is a music-based content provider with interests in recorded music, music publishing and artist services. The company’s record labels include Asylum, Atlantic, Big Beat, Canvasback, Eastwest, Elektra, Erato, FFRR, Fueled by Ramen, Nonesuch, Parlophone, Reprise, Rhino, Roadrunner, Sire, Warner Bros., Warner Classics, Warner Music Nashville and Warner/Chappell Music.

Warner Music operates through two business segments: Recorded Music and Music Publishing.

The Recorded Music segment of Warner Music provides licensing, marketing and sales of recorded music under DVDs, Vinyl, and CDs formats. The segment also offers music through artists, including merchandising, fan clubs, sponsorships, artist management and concert promotions. In the US, the recorded music business is conducted through Warner Bros. Records, Atlantic Records and Rhino labels. Outside the US, the business is conducted in more than 50 countries through various subsidiaries, affiliates and non-affiliated licensees.

The Recorded segment includes Warner-Elektra-Atlantic Corporation (WEA Corp.), Alternative Distribution Alliance (ADA), various distribution centers and ventures operated internationally. The recorded music products of Warner Music are offered in physical format through online physical retailers such as Amazon.com, barnesandnoble.com and bestbuy.com, and in digital format through digital download services such as Apple's iTunes and Google Play, digital streaming services such as Apple Music, Deezer, Napster, Spotify and YouTube, including digital radio services such as iHeart Radio, Pandora and Sirius XM.

Movies & Entertainment in North America

Industry Profiles

Warner Music participates in image and brand rights associated with artists, including merchandising, sponsorships, touring and artist management. Cinram Group (Cinram) is Warner Music's supplier of manufacturing, packaging and physical distribution services in the US and Canada. In FY2018, the Recorded Music segment generated revenue of US$3,360 million, which accounted for 83.7% of the company’s revenue.

The company’s Music Publishing segment publishes music across a range of musical styles. The segment exploits the market and owns acquires rights to musical compositions. The segment also provides royalties or fees pursuant to mechanical, public performance, synchronization and other licenses. Warner Music holds over one million copyrights from over 70,000 songwriters and composers. The segment's operations include Warner/Chappel, the company's global music publishing company which operates in more than 50 countries through various subsidiaries, affiliates and non-affiliated licensees. In FY2018, the Music Publishing segment generated revenue of US$653 million, which accounted for 16.3% of the company’s revenue.

The company classifies geographic operations into regions: the US, the UK, and All Other Territories. In FY2018, the US segment accounted for 43.8% of the company's revenue, followed by the UK (14.8%) and All Other Territories (41.4%).

The company has business presence in over 50 countries outside of the US.

Movies & Entertainment in North America

Industry Profiles

Table 44: Warner Music Group Corp.: Key Employees

Name Job Title Board

Aaron Bay-Schuck Chief Executive Officer Warner Bros. Records Senior Management

Aaron Bay-Schuck Co-Chairman- Warner Bros. Records Senior Management

Alex Blavatnik Director Non Executive Board

Alex Kamins Vice President Global Digital Business

Development – Innovation and Emerging Technology

Senior Management

Alfonso Perez-Soto Executive Vice President Eastern Europe,

Middle East and Africa Senior Management

Andrea Ganis President Promotion Atlantic Records Senior Management

Andy Ma Chief Executive Officer China division Senior Management

Andy Ma Executive Vice President Commercial And

Business Development China division Senior Management

Ben Larsen Senior Vice President International Marketing

Warner Bros. Records Senior Management

Beth Appleton General Manager Australia Senior Management

Beth Appleton Senior Vice President Marketing Australasia Senior Management

Carianne Marshall Chief Operating Officer Warner/Chappell

Music Senior Management

Carlos Ruiz Diaz Managing Director Warner/Chappell Music

Mexico Senior Management

Craig Kallman Chairman- Atlantic Records Group Senior Management

Craig Kallman Chief Executive Officer Atlantic Records

Group Senior Management

Dan Cohen Senior Vice President Nonesuch Records Senior Management

Donald A. Wagner Director Non Executive Board

Emmy Lovell Executive Vice President Warner Music

Europe Senior Management

Eric Levin Chief Financial Officer Senior Management

Eric Levin Executive Vice President Senior Management

Eric Mackay Executive Vice President Global Digital

Strategy Senior Management

James Steven Chief Communications Officer Senior Management

James Steven Executive Vice President Senior Management

Jeff Sosnow Executive Vice President AandR Warner

Bros. Records and Reprise Records Senior Management

Jennifer Ivory General Manager Warner Bros. Records UK Senior Management

John Esposito Chairman - Warner Music Nashville Senior Management

John Esposito Chief Executive Officer Warner Music

Nashville Senior Management

Julian Petty Executive Vice President Business and Legal

Affairs Senior Management

Julian Petty Head Business and Legal Affairs Senior Management

Julie Greenwald Chairman- Atlantic Records Group Senior Management

SOURCE: COMPANY FILINGS M A R K E T L I N E

Movies & Entertainment in North America

Industry Profiles

Table 45: Warner Music Group Corp.: Key Employees Continued

Name Job Title Board

Julie Greenwald Chief Operating Officer Atlantic Records

Group Senior Management

Karl Kongkham Managing Director Warner Music Thailand Senior Management

Kate Logan General Counsel International Senior Management

Kate Shepherd Managing Director Entertainment Programming, Warner Music UK

Senior Management

Kinga Siennicka Managing Director Warner Music Poland Senior Management

Laura Swanson Executive Vice President Media and Strategic

Development Senior Management

Len Blavatnik Director Executive Board

Len Blavatnik Vice Chairman Executive Board

Marcela Vaccari Vice President Business Development, Latin

America and Spain Senior Management

Maria Osherova Chief Human Resources Officer Senior Management

Maria Osherova Executive Vice President Senior Management

Mark Baker Vice President Public Policy and Government

Affairs Senior Management

Mary Nunez Vice President Sync Latin Senior Management

Maryrose Maness Deputy General Counsel Senior Management

Maryrose Maness Senior Vice President Senior Management

Mathias Dopfner Director Non Executive Board

Max Lousada Chief Executive Officer Recorded Music Executive Board

Max Lousada Director Executive Board

Michael Chester Executive Vice President Promotion Warner

Bros. Records Senior Management

Michael Lynton Chairman Non Executive Board

Michele Nadelman Chief Financial Officer Warner Bros. Records Senior Management

Mike Caren Chief Executive Officer Artist Partners Group Senior Management

Mike Caren Creative Officer Senior Management

Mike Herbrik General Manager Senior Management

Moe Hamzeh Managing Director Warner Music Middle East Senior Management

Noreena Hertz Director Non Executive Board

Oana Ruxandra Chief Acquisition Officer Senior Management

Oana Ruxandra Executive Vice President New Business

Channels Senior Management

Ole Obermann Chief Digital Officer Senior Management

Ole Obermann Executive Vice President Business

Development Senior Management

SOURCE: COMPANY FILINGS M A R K E T L I N E

Movies & Entertainment in North America

Industry Profiles

Table 46: Warner Music Group Corp.: Key Employees Continued

Name Job Title Board

Paul M. Robinson General Counsel Senior Management

Paul M. Robinson Secretary Senior Management

Pete Ganbarg President AandR Atlantic Records Senior Management

Rocio Guerrero Vice President AandR and Cross Cultural

Strategy, Warner Music Latin America and Spain

Senior Management

Ron Broitman Executive Vice President Warner/Chappell Senior Management

Ron Broitman Head Synchronization Warner/Chappell Senior Management

Scott Cherkin Senior Vice President Global Consumer

Acquisition and Retention Senior Management

Scott Maclachlan Senior Vice President AandR Warner Music

Australasia Senior Management

Stephen F. Cooper Chief Executive Officer Executive Board

Stephen F. Cooper Director Executive Board

Steve Robertson General Manager AandR, Pop/Rock Atlantic

Records Nashville Senior Management

Steve Robertson Senior Vice President AandR, Pop/Rock

Atlantic Records Nashville Senior Management

Stu Bergen Chief Executive Officer International and

Global Commercial Services Senior Management

Thomas H. Lee Director Non Executive Board

Tim Fraser-Harding President Global Catalog, Recorded Music Senior Management

Tom Corson Chief Operating Officer Warner Bros. Records Senior Management

Tom Corson Co-Chairman- Warner Bros. Records Senior Management

Trent Tappe Chief Compliance Officer Senior Management

Trent Tappe Deputy General Counsel Senior Management

Trent Tappe Senior Vice President Senior Management

Ynon Kreiz Director Non Executive Board

SOURCE: COMPANY FILINGS M A R K E T L I N E

Movies & Entertainment in North America

Industry Profiles

Table 47: Warner Music Group Corp.: Key Employees Continued

Name Job Title Board

SOURCE: COMPANY FILINGS M A R K E T L I N E

Movies & Entertainment in North America

Industry Profiles

About MarketLine

In an information-rich world, finding facts you can rely upon isn’t always easy. MarketLine is the solution.

We make it our job to sort through the data and deliver accurate, up-to-date information on companies, industries and countries across the world. No other business information company comes close to matching our sheer breadth of coverage.

And unlike many of our competitors, we cut the ‘data padding’ and present information in easy-to-digest formats, so you can absorb key facts in minutes, not hours.

What we do

Profiling all major companies, industries and geographies, MarketLine is one of the most prolific publishers of business information today.

Our dedicated research professionals aggregate, analyze, and cross-check facts in line with our strict research methodology, ensuring a constant stream of new and accurate information is added to MarketLine every day.

With stringent checks and controls to capture and validate the accuracy of our data, you can be confident in MarketLine to deliver quality data in an instant.

For further information about our products and services see more at: http://www.marketline.com/overview/

Disclaimer

No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, MarketLine.

The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that MarketLine delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such MarketLine can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.

http://www.marketline.com/overview/

Copyright of Movies & Entertainment Industry Profile: North America is the property of MarketLine, a Progressive Digital Media business and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use.