1. Read the case, keeping in mind the textbook topic(s) the case covers 2. Read the Case Analysis section of the textbook 3. Written Document a. Provide a BRIEF description of the situation b. Update the situation to today(2025) using library and/or online resources (the company web site is a great place to start) i. This means to take into consideration the geo-political and economic environment the firm is operating in NOW. ii. Compare and contrast now vs. when the case takes place c. Cite sources of data not included in the case, using APA format i. Use at least TWO peer-reviewed articles ii. Do NOT rely solely on what you know about the company iii. Other credible sources are: WSI NYT Wash Post The Guardian, the firm's web site and 10K filings (if pub Meet the new Teams video d. Answer the questions at the end of the case if any, in light of the topic of the chapter e. DO NOT spend more than 1/3 to 1/5 a page describing the situation. f. No more than 3 pages, excluding References and Cover Page. 4. Presentation a. No more than 15 minutes. b. 5-7 slides, including the introductory slide C. Address the important facts, decisions, recommendations d. If there is a recommendation needed, make one and justify it using analysis of facts. 5. Your written analysis and your oral presentation should be the same, with the written document providing more detail. 6. Who is your audience? Not Me. Your audience is middle and upper level management of the firm in question. 7. Who are you? An up-and-coming Management trainee who has been tasked with helping the firm to understand the situation in the case. 8:56 W N87% CASE 6 Nex's 2023 Strategy for Batting Rivals in the Global Market for SurbanGU VODU SUUNLIMI out all the different content options was attractive to Prime members because they could conveniently access a very broad range of content categories and titles in one place without having to switch to the app of each different streamer to view a streamer's content library. for In 2022, Amazon acquired MGM Studios $8.5 billion, giving it access to MGM's library of 4,000 films and 17,000 episodes of TV shows. MGM's film library included the James Bond, Rocky, and Creed franchises, Candyman, Sonic the Hedgehog and Top Gun: Maverick. Its TV Shows included Survivor, The Voice, The Consultant, Vikings and Act Your Age Amazon rapidly moved to relaunch MGM's streaming platform EPIX as MGM+, draw- ing not only on MGM's content library but also forthcoming original films, series, and TV shows from MGM Studios. In 2023, MGM+ was a Prime Video Channel partner with a subscription price of $5.99 a month. In April 2023, there were reports in the medias that Amazon was ready to take action on investing in about a dozen new titles for films and/or TV shows to be produced by MGM Studios. Like Netflix, Prime Video had also entered the market for streaming video games. Its game offer ings were available at Prime Gaming. New games were made available weekly and monthly and were free to Prime members who created a Prime Gaming account; gameplayers could also go to amazongames. com and play online games for free. Prime members with a Prime Gaming account got a free subscription to Twitch. Some games had ending dates. Amazon Games also had four studios and teams that devel oped original multiplayer games, and it published best-in-class third-party games, some of which could be played free on Prime Gaming In December 2022. Amazon announced that Amazon Studios would spend more than $1 billion annually to produce films for release in movie the aters in 2023. Further, Amazon broke new ground by opening its first theater. The Culver Theater, in a 41,000 square foot building across the street from Culver Studios in Culver City, California, where Amazon Studios occupied more than 530,000 square feet for film and TV production. The theater had six screens, with tables and plush seat in its lobby along with a full bar of wine, beer, and cocktails and such food offerings nachos, chicken tenders, buffalo chicken sliders, popcorn, candy, and sodas, Moviegoers purchased tickets on digital kiosks using a touch screen; tickets for a noon showing cost $17.99. In December 2022, the Culver Theater's website was advertising upcoming show times for "Avatar: The Way of Water," "Bones and All." "Top Gun: Maverick." "Good Night Oppy." "Nanny," and "Triangle of Sadness." The Walt Disney Company, Disney, and Hulu The Walt Disney Company in 2023 was a broadly diversified international family entertainment and media enterprise with businesses that included (1) the ABC television network; (2) eight ABC broad- casting TV stations: (3) multiple cable channels (the ESPN family of 5 domestic channels and 15 international channels that operated under such brands as Disney, ESPN, Fox, and Star, 3 domes lic Disney branded channels and approximately 75 Disney branded international channels (broadcast in approximately 25 languages and 175 countries/ territories), 3 FX channels, Freeform. 3 National Geographic cable channels, and 50 percent owner- ship of A&E Television Networks, which operated the A&E, HISTORY, Lifetime, Lifetime Movie Network, and FYI cable channels): (4) multiple con- lent production studios, including ABC Signature studios, Walt Disney Pictures, Twentieth Century Studios, Marvel, Lucasfilm, Pixar, Searchlight Pictures, Disney Television Animation, and FX Productions, which also sold and licensed their film and television content to third-party television, cable, and video streaming services; (5) theme parks and resorts; (6) Disney Cruise Lines; (7) content sales/licensing of Disney's wide-ranging intellectual property; (8) sales/licensing of the Disney-related merchandise at The Disney Stores and assorted online sites: (9) 73 percent ownership of National Geographic magazine and (10) direct-to-consumer video streaming services which included Disney+, Disney Hotstar, ESPN+, Hulu (co-owned with NBC Universal), and Star+, The Walt Disney Company reported 2022 revenues of $82.7 billion and earnings of $3.1 billion. In early 2023, Disney CEO Robert Iger was wrestling with the strategic direction the company's C-64 PART 2 Cases in Crating and Executing Strategy streaming and digital businesses should pursue and whether the company should sell its 80 percent stake in ESPN and its 50 percent stake in Hulu. Disney acquired 80 percent of ESPN when it bought ABC In 1996; ESPN was acquired by ABC in 1984, and in 1990 ABC sold a 20 percent equity stake in ESPN to Hearst Communications (now Hearst, Inc). Disney ended up with its 50 percent ownership stake in Hulu in a series of transactions in 2018-2019. Disney Disney debuted its new Disney+ streaming service in November 2019 in the United States, Canada, and The Netherlands and quickly proceeded to expand its geographic coverage. By early 2023, Disney+ was available in 108 countries and 12 territories, its sub- scription prices were $7.99 per month for Disney Basic (with ads) and $10.99 per month or $109.99 per year for Disney+ Premiam (no ads). Disney+ offer ings included existing and forthcoming movies and TV shows Walt Disney Studios, the three Disney TV chan nels, Pixar, Marvel, National Geographic, and 20th Century Fox. Concurrent with the launch of Disney+ in November 2019, Disney began offering a bundle of Disney+, Hulu (ad supported), and ESPN+ for $12.99 per month with no free trial included at the Disney+ website in the United States. There were about 161.8 milion Disney+, Disney+ Hotstar, and Star subscrib ers as of January 2023 this number fell to 157.8 mil- lion as of April 1, 2023. As of April 1, 2023, average revenue per paid subscriber was $6.47 at Disney+ (ver sus $5.77 as of yearend 2023), and $0.59 at Disney+ Hotstar (versus $0.74 at yearend 2022); the decrease at Disney Hotstar was due to lower per subscriber adver- tising revenue." Disney+ Hotstar Disney+ Hotstar was a subscription- based direct-to-consumer service available in India, Indonesia, Malaysia, and Thailand. Programming included television shows, movies, sports and origi nal series in approximately 10 languages, in addi- tion to gaming and social features. Disney+ Hotstar had exclusive streaming rights to cricket from the International Cricket Council (ICC) and the Board of Control for Cricket in India (BCCI), along with other cricket rights. Disney+ Hotstar has $2.9 mil- lion paid subscribers as of April 1, 2023, versus 7.5 million paid subscribers as of car-end 2022. Canadian Football League games, as well as multiple college sports games, PGA golf events, boxing, tennis matches, and cricket games that were nor broadcast live on any of ESPN's family of channels (ESPN, ESPN2, ESPNU-which was dedicated to college sports, ESPN Classic, ESPNews-which aired select ESPN studio shows and a variety of other programming. ESPN Deportes-which aired professional and college sports as well as studio shows in Spanish, SEC Network-which was dedicated to Southeastern Conference college ath- letics ACC Network-which was dedicated to Atlantic Coast Conference college athletics, and Longhans Network-which was dedicated to The University of Texas athletics). As of October 1, 2022, the estimated number of paid ESPN subscribers was 24 million. Hulu's Streaming Service Hulu was a direct-40- consumer streaming service with general entertain- ment content from the Disney's various stadios as well as content licensed from third parties. Hulu's revenue was primarily derived from subscription fees and advertising sales. As of 2023, Hulu had a num ber of subscription plans ⚫ Hulu only for $14.99 per month (which inclu Hula originals, hit movies, a variety of season TV shows (the day after they aired major TV broadcast networks and sele channels), back seasons of hundreds of T and several thousand movies in the Hulu Hulu with ads for $7.99 per month ⚫ Hulu and Disney+ (both with ads) for $9.99 per month. • Hulu, Disney, and ESPN, all with ads, for $12.99 per month. ⚫Hulu, Disney (with ads), and ESPN+ (with ads) plus Live TV for $69.99 per month. Hulu's Live TV option included live linear program streams of all the major broadcast networks (NBC, ABC, CBS, and cable networks (a total of 85 channels in 2023). • Hulu (no adds) plus Live TV for $82.99 7 of 24 ESPN's Streaming Service ESPN was a subscription-based conglomeration offering live sports programs (select live MLB, NHL, NBA, MLS, and In 2023, certain TV programming from ABC, the FX Channels became available streaming service one day after airing unnels. In May 2023, Disney Chairman and CEO Bob lizer announced that Disney would begin celering one app experience in the United States that incorporated all Hul content as part of |||