Tag Archives: media

Sony Makes Brilliant Move

13 Jun
Sony Playstation

Sony made brilliant use of Xbox’s PR fumbles.
Image: Shutterstock

If you aren’t a gamer, you may not be aware of the recent waves in the gaming industry as the next generation of console development is rolling out.  It began with Microsoft’s announcement of the Xbox One in late May.  Microsoft has fumbled the promotion of the new console, not only upsetting the gaming community with its lackluster game development but with a feature that many game enthusiasts have long feared.  Not only will the system require an online connection to play, but will essentially render used or borrowed games useless without a significant fee to Xbox for a new verification code.  While Microsoft scrambled to clarify the online features and announce more game titles, the sour taste from the original announcement is still fresh in consumer minds.

Especially now that Sony has swiftly used the bad PR to its advantage with its announcement of the Playstation 4 console. Not only did Sony include a montage of new games during their announcement at a major electronics conference, but also practically bragged that it would be a hundred dollars less than the Xbox.  Two complete its One-Two punch to Microsoft, Sony made a twenty-two second instructional video on how to share used games (you hand your game over to your friend).

Sony stocks spiked right after the Xbox announcement, indicating that Xbox may have some trouble peddling its new wares to the market.  However, it ultimately seems that Xbox is targeting another market entirely.  The promotion for the device has heavily stressed its cloud computing capabilities, indicating the ability to streamline a wide variety of media consumption at record speeds.  Television and movies are more important to the Xbox One marketing strategy, and may attract buyers who are not as upset about not being able to buy used games.  Meanwhile, Playstation is executing a pro-gamer strategy perfectly, using everything from pricing to humor to rake in loyalty. It will be interesting to see which one pays off.

Hulu Bids Are In: But Will They Sell?

30 May
hulu

Is Hulu up for grabs?
Image: Hulu

The subscription TV service Hulu is potentially up for grabs, and everyone seems to be rushing to get a bid in. Last year the company brought in nearly $700 million in revenue from ads and paying subscribers (of which there are about 4 million), so it’s likely that they will be looking for bids of $1 billion or more.

Hulu is currently owned by three different companies: News Corp., Walt Disney Co., and Comcast Corp. While Comcast operates as a “silent” partner, Walt Disney and News Corp. have disagreed on a strategy for the company. This difference in opinion has likely been a main driver in the sale. The shared ownership makes for a tricky situation for buyers, since one, two, or all three can independently decide whether or not to sell.

So who is knocking on Hulu’s door? Everyone is, it seems. Yahoo, who recently acquired Tumbler for a pricey $1 billion, has put in a bid, as has Silver Lake Management teamed with WME Entertainment. Private equity firm KKR, led by business leaders Henry Kravis and George Roberts, has also reportedly put in a bid.

netflix

Hulu, like Netflix, is a leader in next generation television.
Image: Netflix

Time Warner Cable, DirectTV, the Chernin Group, and Guggenheim Digital Media have all also shown an interest, according to inside sources. For each of the bidders and potential bidders, there is a wide array of benefits to acquiring Hulu. Yahoo likely sees this as a chance to get more involved with video media, as Google has done with YouTube. Cable and media companies would probably use the service as a way to distribute media in the future, and companies like Henry Kravis’ KKR are likely interested in the growth potential of Hulu as compared to competitor Netflix.

Will Hulu’s owners actually sell? The bids would have to be high, but we already know that some companies (like Yahoo) are willing to pay a big chunk of money for future investments, so long as they see it paying off in the long term.