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SFX Entertainment MediaTainment FINANCE Issue No. 23 For Decision-Makers and Strategists Who Value Creativity and Appreciate the Value Creativity Brings to Business www.mediatainmentfinance.com Facebook: MediaTainment Finance; Twitter: @MediatainmentMT; @JayKayMed NEWS … 3-14 film: Pinewood regains Shepperton Studios in £37m buyout; China Star raises HK$134m tv: Viacom buys Channel 5 to take on UK; Hearst pays $81m for AwesomenessTV stake music: 10 highest-earning music stars amass $1.36bn games: Gfinity introduces eSport to UK stock exchange; Vivendi settles $275m lawsuit fashion: Advent seeks IPO for fashion retail giant architecture: Thomas Heatherwick Studios designs London, New York river gardens books/prints: HarperCollins launches New Age imprint; Vox Media raises $46.5m ads/marketing: Dentsu Aegis’ $48m Fetch Media acquisition; Brands embrace new tech sport: UK Premier League rights to top $7bn copyright: US Supreme Court tackles Spider Man toy; IP worth $14.5bn to the Philippines live entertainment: Dalian Wanda’s $1.3bn theme park; global music tours valued $20bn photography/art: Iceland government slashes arts funding FEATURES & REPORTS THE UNSEEN: —the London design studio that is taking fashion and innova- tive creative industries by a storm with a magic fabric that changes colour in response to the invisible substances in our environment. See more on … page 15 SFX Entertainment Inc: — why on earth use stock exchange cash to fi- nance electronic dance music festivals starring DJs with names like Avicii, Deadmau5 and Afrojack ? CEO Robert Sillerman has got some strange mixing to do… page 22 Content December 2014 NEWS NEWS Film: Page3 Page 13: Photography/Art Television: Page4 Page 14: Copyright Music: Page5 FEATURES Page15: The Q&A Sessions Games: Page6 - THEUNSEEN Page22: Creative Corporate - SFX ENTERTAINMENT Out-Of-Home: Page7 Page26-27: MTF DIARY listing of international conferences and events Sport: Page8 Back Page: ABOUT MTF Ads & Marketing: Page9 SUBSCRIPTION: Architecture/Design: Page10 To subscribe to the most enriching and enlightening aide to your media and entertainment business strategies, contact [email protected] Books/Print: Page11 Fashion/Luxury: Page12 FILM Pinewood regains Shepperton Studios UK-based Pinewood Shepperton, home to the James Bond movie productions, is now 100% owner of joint venture Shepperton Studios Property Partnership (SSPP) following a £36.8m (US$56.2m) acquisition of the 50% it did not own from insurance group Aviva. Pinewood Shepperton is part of the Pinewood Studios Group, which is 73%-owned by investment company The Peel Group, while the remainder belongs to retailer Warren James Jewellery. In 2006, Pinewood Shepperton formed the joint venture SSPP with Aviva to develop the land and facilities surrounding Shepperton Studios, where some of the Star Wars epics were made. By acquiring the 50% it did not own in SSPP, Pinewood Shepperton regains complete control of Shepperton Studios. The £36.8m was paid for with cash plus loans from Lloyds Bank Commercial Banking and Royal Bank of Scotland. Shepperton Studios is a sister operation of Pinewood Studios, the UK’s largest film studio, which is famous for the James Bond franchise, Pinewood Studios Group also owns the Teddington TV studios in London, plus film-funding company Pinewood Films. Other ventures include Pinewood Atlanta Studios in the US (jointly owned with the Cathy family’s investment vehicle River’s Rock LLC), Pinewood Iskandar Malaysia Studios (a joint venture with the Malaysian government’s Khazanah Nasional Berhad); Pinewood Studio Germany in Berlin (owned with Studio Hamburg); Pinewood Dominican Republic Studios (owned with private-equity firm Indomina Group); and Canada-based Pinewood Toronto Studios. China Star Entertainment sells Eros International to spend shares to raise HK$134m cash on Internet-only movies China Star Entertainment, the movie Eros International, the Indian film studio, is distribution and gambling group listed on the to invest in movies created exclusively for Hong Kong Stock Exchange, plans to focus Internet distribution. Via Eros Now, a web the proceeds from a planned HK$134m portal streaming movies originally made for (US$17.3m) shares sale campaign on the film the cinema and TV shows from the Colors and side of its business, including production. To Zee TV networks, Eros will commission films raise that amount, it says it will issue 1.5 billion for Internet-only audiences. Streamed content shares to subscribers. In addition to movie- will be subscription-funded, while encrypted production financing, China Star Entertain- versions will be downloadable. Additionally, ment says it will use some of the income for Eros, which is on stock exchanges in New the group’s general working capital. York, Bombay and India’s National Stock Exchange, is investing US$180m-plus in big- budget Hindi-language films. Kollywood productions ramp Briefs: Toho’s Godzilla; South up to challenge Bollywood Korean levy; mm2 seeking IPO Digital projectors and filmmaking equip- JASDAQ-quoted Japanese film production ment have enabled Kollywood films, movies group Toho is working on the first Japanese- produced in the Tamil language, to gain as language Godzilla movie since 2004, with much respect in India as the much lauded plans for a 2016 release; *South Korea’s Bollywood movies. This year, 200-plus Kolly- government has voted to retain the 3% levy wood films were released for the first time in imposed on cinema ticket prices for the the genre’s history. Two-hour films that used country’s Film Development Fund for another to cost 65,000 rupees (US$1,024) to shoot seven years; *mm2 Entertainment is reported- and screen in print now cost as little as 5,000 ly seeking an initial public offering(IPO) on rupees (US$78.8) to make. The US dollar Singapore’s Catalist second-tier stock market, conversion rate, however, must also bear in making it the first local movie producer to list mind the cost-of-living differences. on the exchange should it succeed. TELEVISION Viacom buys C5 to take on UK market Philippe Dauman says the £450m paid for UK national terrestrial broadcaster Channel 5 in May 2014 is the largest acquisition made by US-headquartered global media conglomerate Viacom since he became its president/CEO in 2006. Channel 5 was acquired from Northern & Shell Media Group, which bought it from Germany’s RTL Group in 2010 for £105m. Speaking to London-based Broadcast Press Guild, Dauman said the Channel 5 acquisition showed its aggressive ambition to be a major UK player. The free-to-air channel will be relaunched next year with a more youth-oriented programme slate. “The first step is to become bigger than (rival UK commercial public broadcaster) Channel 4. Channel 5 has a lot of room to grow. We think there is an opportunity to bring down the average age of its viewers. We believe that can be done through original programming. We are here to compete.” Viacom currently spends more than £300m a year on programming, including 50% on original content, for its UK cable-and-satellite networks. These include MTV, Nickelodeon and Comedy Central. It also plans to increase Channel 5’s existing £200m annual content budget. In addition, Viacom has launched the first international edition of Spike TV, the US-based young male-skewed factual TV network, in the UK. AMC Networks nabs 49.9% of Hearst Corp pays $81m for a BBC America for growth 25% stake in AwesomenessTV AMC Networks, which owns major US Hearst Corporation, the US-based global TV cable-TV channels and international hit shows -to-magazines media conglomerate, has paid like Mad Men and The Walking Dead, has US$81.25m for a 25% stake in Awesome- grabbed a 49.9% stake in BBC America for nessTV, the youth-oriented YouTube multi- US$200m. A subsidiary of BBC Worldwide, channel network (MCN). The deal values the UK public broadcaster’s commercial unit, Awesomeness TV at US$325m. It was only in advertising-funded BBC America will benefit May 2013 that NASDAQ-quoted DreamWorks from AMC’s extensive reach in the US TV- Animation acquired AwesomenessTV for syndication market and advertising-sales US$33m, with a pledge to increase the price resources. Having previously co-produced to US$117m depending on the MCN’s opera- event TV dramas such as Top of the Lake and tional performance. Hearst, which has TV joint The Honourable Woman, they plan to ventures with DreamWorks’ rival Walt Disney co-invest in more shows. Company, will give Awesomeness’ content access to more TV platforms. DHX Media absorbs Nerd Corps Briefs: actor David Morrissey; Entertainment for C$75m eOne; DreamWorks Animation Canada-based DHX Media, a major interna- UK Hollywood actor David Morrissey has tional investor in TV content, has snapped up joined forces with a group of award-winning Vancouver-based animation producer Nerd producers and directors to launch an Corps Entertainment for C$57m (US$49.5m). independent TV and feature-film production The acquisition includes Nerd Corps’ company called On The Corner; * eOne subsidiaries in interactive apps, gaming, brand (Entertainment One), the London Stock licensing plus 200-plus 30-minute kids’ shows. Exchange-quoted TV group, is opening a These include the international animation dedicated production and development series Slugterra. Shortly before, DHX bought a division in Sydney, Australia; * Next year, library of family-targeted TV series, specials DreamWorks Animation will launch its first- and movies from US-based Echo Bridge ever branded TV network (DreamWorks Entertainment. The Echo Bridge deal included Channel) using existing programmes and the international rights to the Degrassi TV- future productions in 19 Asian countries. series franchise. MUSIC 10 highest-earning artists net $1.36bn The Top 10 highest-earning rock and pop musicians in Forbes’ list amassed US$1.36bn in combined income in 2014. In Forbes’ World’s Highest-Paid Musicians ranking, covering the June 2013 to June 2014 fiscal year, mega producer and Beats Electronics co-founder Dr Dre walked away with a cool US$620m.
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