KSR Entertainment Management

Kody Helm Steven Lavendier

Randy Davis !

6/17/2014

Creating accessibility and peace of mind... One piece at a time.

Who are we?

Entertainment Management Company, currently working for Warner Bros. Entertainment Inc.

We strive to create an ease of accessibility for a variety of entertainment consumers. We intertwine our organizational strengths with other companies in order to reinvent entertainment as it pertains to their target consumers.

Environmental Scanning

Overview Warner Bros. Entertainment Inc. is an American production company that produces a variety of items in film, television and music entertainment. It is the “global leader in the creation, production, distribution, licensing and marketing of all forms of entertainment and their related businesses” (2014, Warner Bros.)

The company thrives on four main core values, which surround its profound business ethics and community outreach. These core values consist of, creativity, community, sustainability and workplace.

Opportunities...

Customers

Target market ranges greatly as it pertains to age.

Primarily families with young-teenage children.

Upper-middle class of all geographic markets.

Opportunities in forms of marketing (i.e. online, social-media, advertisements, commercials.) Expanding target market in general.

Collaborators

Distributes films totally financed and produced by third parties.

Including name on upcoming, large-budget movies (i.e. The LEGO Movie, Edge of Tomorrow, Horrible Bosses 2 etc.)

Opportunities in expanding collaborator reach and monetizing its distribution and marketing operations.

External...

Climate

Climate well, big ticket superhero movies increasing in popularity.

Change for expansion through streaming films & TV Shows, due to recent theatre ticket price increase.

Technologically, blu-ray, 3D, IMAX becoming increasingly popular.

Socially & Culturally, consumers looking for next ‘big’ blockbuster.

Competitors

Disney/Marvel Entertainment (one of the largest competitors.)

Marvel: Billion dollar franchise, built large expanded cinematic universe. Many large-grossing movies, some sequels more successful than predecessors.

Warner Bros.: No cinematic universe (yet) that can compete with magnitude of Disney/Marvel.

Strategy Formulation

Effects of Solution

Internal job opportunities and position openings.

Determination of profitable share between Warner Bros. and theaters.

Production & Distribution altered to enable online viewing capabilities. Distributing to multiple different online databases.

Research & Development to address new, expanded target market/audiences.

Results

Assign existing employees to new internal positions to avoid new hire/training fees.

Reducing distribution costs by not producing and distributing to big-name, large market theaters.

Less risk of box office failure.

Monthly fee increases revenue on non large budget films, thus increasing revenue.

Consumer Communication...

Ads on social media websites or applications on smartphones would need to be implicated. Warner Bros. could market on Facebook, Instagram, Pinterest, and applications such as Pandora, Vimeo, Spotify, and many other applications.

The age group of our target market could in turn be geared toward the younger, more technologically advanced, generation. We will communicate these changes primarily through social media and applications, in addition but not limited to; commercials on TV, YouTube, Facebook page, WarnerBros.com and pop up ads on various sites.

Proposed solution will be called, Warner Bros. Goes: Online.

Implicating Responsibility

Legal Intellectual property concerns, pirating, and copyright issues.

Primary issues due to the fact that pirating or copyright infringement is almost inevitable in today’s society and it occurs so often it is almost impossible to stop.

Limiting this infringement: Warner Bros. Entertainment will have a brief statement in the beginning of the film stating its illegal to copy, distribute to display this film in any other manner or medium.

Warner Bros. owns each and every copyright and trademark to the films it produces. Any attempt to copy, or infringe upon these works will result in serious criminal action, maximum charges will be pressed against offenders, penalties which coincide with penal codes will be implemented at maximum punishment.

Warner Bros. Entertainment operates under the Copyright law of the Unites States of America, Contained in Title 17 of the Unites States Code. Any and all chapters under this code will provide the provisions and outlines of all legal proceedings and processes as it pertains to copyright infringement, pirating, intellectual property considerations and fraudulent reproduction, distribution, display or any matter in relation to films streamed online.

!

Ethical Cyber crime, and intellectual property theft.

Third party issues as it pertains to the manners listed above can be serious ethical as well as legal issues.

Actions will be determined after a trial period of the proposed solution to underline its success rate and profitability.

Coincide with SEC’s mission: to protect investors; maintain fair orderly and efficient markets; and facilitate capital formation.

We are hoping the proposed solution is extremely successful and will create greater recognition for Warner Bros. Entertainment, while benefitting shareholders by opening up new, and expanding current stock options.

We are attempting to protect and benefit all shareholders and operate in an ethical manner as it pertains to Warner Bros. code of conduct and legalities underlined in the SEC’s codes of conduct as well.

Warner Bros. Vs The World

While Warner Bros in not the overall “biggest” earner comparatively, they are still prominent in earnings.

(Yahoo Finance, 2014)

Here we see over the years the increase in stock value of Time Warner/Warner Bros.

There’s a significant increase from 2012 to 2013, and it increases in value into 2014, which indicates that it

will continue to increase substantially.

(Yahoo Finance, 2014)

On this chart, we are able to see the increase in dividends, with an average

of a .03 increase each year.

(Yahoo Finance, 2014)

Dividends

Cost Of Goods sold Forecasts

Here is shown various percentages until 2018 and what the costs could be in a few years of

goods/services.

(Yahoo Finance, 2014)

Revenues

• This chart shows revenue at $30,000,000,000 (billion).

!• Partnering with a streaming

service, such as LiveStream.com would cost $12,000 (thousand) a year.

!• With revenue at $30 billion, the

streaming service would cost less than .0001% of Warner Bros overall revenue each year (30,000,000,000 x .000001) .

!• Something like Netflix can also

increase revenue, though it may significantly increase the cost.

(Yahoo Finance, 2014)

Even at 3% average growth each year is still a significant amount of profit growth (though gross), that’s still a difference of a billion dollars more or less.

!Gross profit is at about half of the $30 billion revenue at almost $14 billion for 2013.

(Yahoo Finance, 2014)

Operating expenses showcase over $6 billion in operating expenses.

!Streaming services would only cost .0001% of Warner Bros (Time Warner)’s yearly operating expenses, but can greatly increase revenue if enough people pay for their services.

!More money, less risk.

(Yahoo Finance, 2014)

Challenges

Not making as many movies as their competitors

Not well known actors in movies

Needs to market their movies better

Solution

New Release theatre movies to go online !

Be on the companies website !

For a price !

Benefit everyone!!!

How you say?

Available on mobile devices: laptop, tablets, smartphone, etc.!

A lower price!

Percentage of the profits would go to the local theatre!

People that does not want to or cannot get out

Movies Now

3D/IMAX quality!

Cinematic Universe!

6 months to a year in a half!

depends on the complexity

Audiences

It speaks today’s society!

does not have time to go!

Bad weather, traffic, different obligations, etc.

Strategy Evaluation

Our company will evaluate the success of the timeline milestones !

Company will decide corrective action need be if benchmarks are not met!

Delegate projects from the timeline to workers

Glavinich,Thomas(2013).”Know Your Audience” Retrieved from http://www.ecmag.com/section/your-business/know-your-audience!

Insightonthenews (N.D.).” 8MM-Movie-Film-O” Retrieved from http://www.insightonthenews.net/?attachment_id=358 !

Miniwatts Marketing Group(2014). “Internet World Stats” Retrieved from http://www.internetworldstats.com/stats.htm !

NodAccess(2012). “About You” Retrieved from http://www.nodaccess.com/Solutions_HID_Fargo_AWID_Suprema_C-TPAT?lng=en !

Under30CEO(2014). “Business Challenges” Retrieved from http://under30ceo.com/9-challenges-of-partnering-with-a-bigger-company/business-challenges/ !

Yahoo Finance. (2014, June) Time Warner Inc. Retrieved from http://finance.yahoo.com/q?s=TWX !

Yahoo Finance. (2014, June) The Walt Disney Company. Retrieved from http://finance.yahoo.com/q;_ylt=As0G7DRk.W9vAwAMCYjRt78nv7gF;_ylc=X1MDMjE0MjQ3ODk0OARfcgMyBGZyA3VoM19maW5hbmNlX3dlYl9ncwRmcjIDc2EtZ3AEZ3ByaWQDBG5fZ3BzAzEwBG9yaWdpbgNmaW5hbmNlLnlhaG9vLmNvbQRwb3MDMQRwcXN0cgMEcXVlcnkDRElTLARzYWMDMQRzYW8DMQ--?p=http%3A%2F%2Ffinance.yahoo.com%2Fq%3Fs%3DDIS%26ql%3D0&type=2button&uhb=uhb2&fr=uh3_finance_vert_gs&s=DIS !

Yahoo Finance. (2014, June) Twenty-First Century Fox. Retrieved from http://finance.yahoo.com/q;_ylt=As0G7DRk.W9vAwAMCYjRt78nv7gF;_ylc=X1MDMjE0MjQ3ODk0OARfcgMyBGZyA3VoM19maW5hbmNlX3dlYl9ncwRmcjIDc2EtZ3AEZ3ByaWQDBG5fZ3BzAzEwBG9yaWdpbgNmaW5hbmNlLnlhaG9vLmNvbQRwb3MDMgRwcXN0cgMEcXVlcnkDRk9YQSwEc2FjAzEEc2FvAzE-?p=http%3A%2F%2Ffinance.yahoo.com%2Fq%3Fs%3DFOXA%26ql%3D0&type=2button&uhb=uhb2&fr=uh3_finance_vert_gs&s=FOXA

References