WSJ : Apple Sets Its Sights on Hollywood With Plans for Original Content



From: LAURENT CHEKROUN (MAKOR SECURITIES LO) At: 01/12/17 15:43:02
Subject: WSJ : RTRS - U.S. ENVIRONMENTAL PROTECTION AGENCY WILL MAKE AN ANNOUNCEMENT AT
Apple Sets Its Sights on Hollywood With Plans for Original Content

Apple Inc. is planning to build a significant new business in original television shows and movies, according to people familiar with the matter, a move that could make it a bigger player in Hollywood and offset slowing sales of iPhones and iPads.
These people said the programming would be available to subscribers of Apple’s $10-a-month streaming-music service, which has struggled to catch up to the larger Spotify AB. Apple Music already includes a limited number of documentary-style segments on musicians, but nothing like the premium programming it is now seeking.
The technology giant has been in talks with veteran producers in recent months about buying rights to scripted television programs. It also has approached experienced marketing executives at studios and networks to discuss hiring them to promote its content, said people with knowledge of the discussions.

In addition to TV, Apple indicated to these people that it is considering offering original movies, though those plans are more preliminary.
Executives at Apple have told people in Hollywood they hope to start offering original scripted content by the end of 2017.

The shows Apple is considering would likely be comparable to critically acclaimed programs like “Westworld” on Time Warner Inc.’s HBO or “Stranger Things” on Netflix.
Because it is looking at just a handful of carefully selected shows, and potentially films, it doesn’t appear Apple is preparing to spend the hundreds of millions or even billions of dollars it would need to spend annually to become a direct competitor to Netflix Inc., Amazon.com Inc.’s Prime Video or premium cable networks.
Rather, it would escalate the arms race between Apple Music and Spotify, which both offer essentially the same catalog of tens of millions of songs, by adding other content that could distinguish Apple’s service.

Nonetheless, the entry of the world’s most valuable company into original television and films could be a transformative moment for Hollywood and mark a significant turn in strategy for Apple as it starts to become more of a media company, rather than just a distributor of other companies’ media.
In addition to its music-related nonfiction shows and documentaries, Apple Music already has bought the rights to a half-hour version of “Carpool Karaoke,” which is currently a segment on CBS’s “The Late Late Show with James Corden.” It is also making a quasi-biographical series about Dr. Dre, the rap star and Apple Music executive, which is slated to premiere later this year.
But it hasn’t yet bought scripted content from outside producers, a more expensive and riskier endeavor that takes it further onto the turf of entertainment companies. The series and movies Apple is now considering buying don’t have any particular relationship to music, according to the people familiar with the matter.

One reason Apple hasn’t yet completed a deal to buy a scripted series is because it is still working out details of its business strategy built around original content. But it has told producers that a key advantage it hopes to offer is that it would share data on how many people watch its original content and some demographic data on them. Netflix doesn’t share any such information with its content creators, which has been a source of contention among some in Hollywood.
Apple has been flirting for years with whether and how it should enter the entertainment business. It held talk with television companies about offering a “skinny bundle” of networks over the internet, but was never able to reach terms. It also approached Time Warner Inc. last year about a possible merger before that company agreed to be acquired by AT&T Inc.
The move into original content comes as Apple is grappling with a slowdown in its traditional business. Last year it missed its own internal revenue targets for the first time in at least seven years as sales of the iPhone 6s fell short of expectations. Sales of the iPhone, which turned Apple into the world’s most profitable company, have slowed amid rising competition, particularly in China.
Apple Music has become a key piece of the company’s services business, which has been growing as iPhone sales slow. Revenue from Apple Music rose 22% in the quarter ended Sept. 24, but the service’s subscriber base is still dwarfed by Spotify’s.
Apple Music said in December that it had more than 20 million subscribers, most of whom pay $9.99 a month; Spotify counted more than 40 million paying subscribers in September.

WSJ : RTRS - U.S. ENVIRONMENTAL PROTECTION AGENCY WILL MAKE AN ANNOUNCEMENT AT

Apple Sets Its Sights on Hollywood With Plans for Original Content

Apple Inc. is planning to build a significant new business in original television shows and movies, according to people familiar with the matter, a move that could make it a bigger player in Hollywood and offset slowing sales of iPhones and iPads.
These people said the programming would be available to subscribers of Apple’s $10-a-month streaming-music service, which has struggled to catch up to the larger Spotify AB. Apple Music already includes a limited number of documentary-style segments on musicians, but nothing like the premium programming it is now seeking.
The technology giant has been in talks with veteran producers in recent months about buying rights to scripted television programs. It also has approached experienced marketing executives at studios and networks to discuss hiring them to promote its content, said people with knowledge of the discussions.

In addition to TV, Apple indicated to these people that it is considering offering original movies, though those plans are more preliminary.
Executives at Apple have told people in Hollywood they hope to start offering original scripted content by the end of 2017.

The shows Apple is considering would likely be comparable to critically acclaimed programs like “Westworld” on Time Warner Inc.’s HBO or “Stranger Things” on Netflix.
Because it is looking at just a handful of carefully selected shows, and potentially films, it doesn’t appear Apple is preparing to spend the hundreds of millions or even billions of dollars it would need to spend annually to become a direct competitor to Netflix Inc., Amazon.com Inc.’s Prime Video or premium cable networks.
Rather, it would escalate the arms race between Apple Music and Spotify, which both offer essentially the same catalog of tens of millions of songs, by adding other content that could distinguish Apple’s service.

Nonetheless, the entry of the world’s most valuable company into original television and films could be a transformative moment for Hollywood and mark a significant turn in strategy for Apple as it starts to become more of a media company, rather than just a distributor of other companies’ media.
In addition to its music-related nonfiction shows and documentaries, Apple Music already has bought the rights to a half-hour version of “Carpool Karaoke,” which is currently a segment on CBS’s “The Late Late Show with James Corden.” It is also making a quasi-biographical series about Dr. Dre, the rap star and Apple Music executive, which is slated to premiere later this year.
But it hasn’t yet bought scripted content from outside producers, a more expensive and riskier endeavor that takes it further onto the turf of entertainment companies. The series and movies Apple is now considering buying don’t have any particular relationship to music, according to the people familiar with the matter.

One reason Apple hasn’t yet completed a deal to buy a scripted series is because it is still working out details of its business strategy built around original content. But it has told producers that a key advantage it hopes to offer is that it would share data on how many people watch its original content and some demographic data on them. Netflix doesn’t share any such information with its content creators, which has been a source of contention among some in Hollywood.
Apple has been flirting for years with whether and how it should enter the entertainment business. It held talk with television companies about offering a “skinny bundle” of networks over the internet, but was never able to reach terms. It also approached Time Warner Inc. last year about a possible merger before that company agreed to be acquired by AT&T Inc.
The move into original content comes as Apple is grappling with a slowdown in its traditional business. Last year it missed its own internal revenue targets for the first time in at least seven years as sales of the iPhone 6s fell short of expectations. Sales of the iPhone, which turned Apple into the world’s most profitable company, have slowed amid rising competition, particularly in China.
Apple Music has become a key piece of the company’s services business, which has been growing as iPhone sales slow. Revenue from Apple Music rose 22% in the quarter ended Sept. 24, but the service’s subscriber base is still dwarfed by Spotify’s.
Apple Music said in December that it had more than 20 million subscribers, most of whom pay $9.99 a month; Spotify counted more than 40 million paying subscribers in September.

Reuters - QE opponents voiced rare dissent at ECB Dec meeting, minutes show

Opponents of the European Central Bank's money-printing programme openly voiced their dissent at the ECB's latest meeting, when the bank extended its stimulus programme despite improving economic conditions, accounts showed on Thursday.
With euro zone inflation rebounding, the ECB is facing calls, particularly in Germany, to pare back of its 2.3 trillion euros (£1.99 trillion) bond-buying scheme.

In a rare sign of open opposition, the minutes of the Dec. 7-8 meeting of the ECB's Governing Council showed that "a few members" rejected both proposals on the table to continue purchases beyond March.

"A few members could not support either of the two options that had been proposed, while welcoming the scaling down of purchases," the minutes showed.

Bundesbank President Jens Weidmann, the most prominent hawk on the ECB's council, has publicly expressed scepticism about the bank's purchasing of government bonds, which he sees as an emergency measure.

But the Frankfurt-based central bank, due to review its policy again next week, is unlikely to change tack soon, in a year fraught with political risk, including elections in key euro zone countries and the start of Britain's negotiations to leave the European Union.

Overall, the minutes struck a balanced tone.

Policymakers highlighted risks, such as political uncertainty and bond market volatility.

But they also listed potential positives for the euro zone economy, including greater fiscal spending by Donald Trump's new U.S. administration or even in the currency bloc itself.

"Against this background it was emphasised that, in such an uncertain and volatile environment, monetary policy was best advised to follow a 'steady-hand' approach that protected financial conditions in the euro area over the period ahead and allowed the recovery to mature and strengthen," rate setters said in the minutes.

France, the Netherlands, Germany and possibly Italy will hold general elections this year, at a time when scepticism towards the euro project and globalisation is on the rise.

OPTIONS

The ECB's board had tabled plans to either extend purchases until December at 60 billion euros per month or until September at 80 billion euros, the minutes showed, confirming a Reuters report from the day after the meeting.

The first option was eventually chosen. It was interpreted by some economists as a first step towards winding down the programme, an idea that ECB President Mario Draghi has already dismissed.

In fact, the ECB said in the minutes it could raise the pace back to 80 billion euros per month or extend the scheme further if the economic outlook worsens or financing conditions tighten too far, as already reported by Reuters.

But it added that changes to how much of the debt of a single country or of any individual bond issue it can buy were not considered because they would raise legal, communication and reputational problems.

The central bank will decide on its policy again on Jan. 19, with no new move expected.

But pressure from Draghi's critics to change the ECB's course is mounting after December's inflation readings for the euro zone showed a jump to a three-year peak of 1.1 percent.

As the bounce was mainly due to oil prices, board member Yves Mersch said last week it was too early to declare victory.

>>> Vodafone/Liberty Global UK-only combination within reach – bankers

Vodafone/Liberty Global UK-only combination within reach – bankers

  • BT acquisition of EE adds pressure for UK combination
  • UK only deal less complicated than UK/German asset swap
  • Valuation differences remain key obstacle

There is increasing impetus for a combination of Vodafone [LON:VOD] and Liberty Global’s [NASDAQ:LBYTA] UK businesses, two bankers familiar with the companies’ strategies said.
The strategic rationale for Liberty’s Virgin Media and Vodafone’s mobile-focused businesses to combine is more pressing now than when a UK deal was mooted in early 2016, the bankers said.
Last year, Vodafone and Liberty discussed deals in Germany and the UK but could not agree on price, a source close to the situation said.
While Vodafone has had a consumer broadband offering since 2015, the acquisition of EE by BT Group [LON:BT.A] has given the latter a head-start in the fixed-mobile bundle market, the bankers said.
The prospect of Vodafone exiting or having a minority stake in its home market is no longer a controversial idea, as it is seen as one of Vodafone’s least attractive prospects, the bankers said.
Vodafone’s results for the six months to end-September 2016 showed it made a loss in the UK but grew in Europe overall.
Investors would not take issue with Vodafone exiting the UK, a top 10 shareholder in the company said. The business is understandably expected to be valued at a discount to other European markets, the shareholder said.
However, catalysts that encouraged a Liberty-Vodafone joint venture (JV) in the Netherlands are unlikely to have the same impact in the UK, the bankers said. The T-Mobile Netherlands sale process, which forced Liberty to consider its options in the country, provided the backdrop for its JV with Vodafone there, the bankers noted.
O2 UK – whose sale to Hutchison Whampoa [HKG:0013] lapsed last year - provides an alternative mobile target for Liberty, the bankers said. But, the network is not as attractive to Liberty as Vodafone’s, the bankers said.
The launch of Sky Mobile was also anticipated to further increase competition in the UK market and add to the strategic rationale for a Liberty/Vodafone UK deal, the bankers said. While it may be a consideration, the launch this month has not been met with as much fanfare as expected, the bankers noted.
Additionally, the risk of Sky [LON:SKY] acquiring O2 and creating a rival multi-play provider has subsided for now with the satellite company’s sale to 21st Century Fox [NASDAQ:FOXA], the bankers said.
The latest message from Vodafone to its shareholders is that deals with Liberty in the UK and Germany continue to make good sense but that the difficulty lies in agreeing a price, the shareholder said.
Advisers can also be expected to pitch a UK-German asset swap, the first banker said. In this scenario Liberty would sell its German business, Unitymedia, to Vodafone in exchange for Vodafone UK, the banker said.
However, greater valuation disparities in Germany and regulatory concerns there make this much more complex than a UK-only deal, the bankers agreed.
Vodafone has indicated, however, that it thinks merger control issues in Germany are surmountable, the shareholder said.
Even in the UK, which the bankers believed is the most likely national deal, there will likely be some disparity in Vodafone’s valuation, the shareholder said. Vodafone will be looking for an offer valuing the company at 6x EV/EBITDA, while Liberty can be expected to offer from 5x, the shareholder thought.
Liberty Global and Vodafone declined to comment.

FT : https://www.ft.com/content/3ee2fb04-d8a5-11e6-944b-e7eb37a6aa8e


Premier Oil failed to publish the full terms of a refinancing deal in a trading statement on Thursday but insisted it would be agreed within weeks.

The company, which is one of the biggest independent producers in the North Sea, has been in negotiations with its lenders for nine months to refinance its debt, which stood at $2.8bn at the end of December. The talks are aimed at securing a new arrangement until at least 2021.

Premier said in November it hoped to lock up the terms of a deal by the end of 2016 but full details of the proposed refinancing — which will need to be approved by 75 per cent of lenders — were not contained in its latest trading update on Thursday.

Tony Durrant, chief executive of Premier Oil, said discussions were sufficiently advanced with lending banks that the company should be able to announce a final agreement in a “few short weeks’ time”. A group of 40 banks account for about 85 per cent of the company’s borrowings. 

“It really is, I believe, a formality,” he added. “The basic terms we announced in November, they still hold true.”

Premier Oil is the latest independent oil explorer and producer to refinance as companies have pressed ahead with capital-intensive projects in a climate of weak oil prices over the past two years. Rival North Sea developer EnQuest struck a $400m debt restructuring and equity fundraising package in October.

However, Mr Durrant stressed Premier would not be forced to issue new equity as a condition of the fundraising, although the company did say equity warrants would be included as part of the package.

“It wasn’t ever the case we needed new money,” he said on Thursday, adding that the company was seeking to extend some maturities that were coming up on its debts this year and next until 2021.

Premier has been forging ahead with the development of its new Catcher oilfield in the central North Sea, which is due to start up later this year. Total capital expenditure on Catcher is expected to be $1.6bn, the company said on Thursday, 29 per cent lower than original estimates.

Total production last year from Premier’s assets reached a record 71,400 barrels of oil equivalent a day, a 24 per cent increase on the previous year and in line with the company’s most recent guidance of 68,000-73,000 barrels a day, which was raised last year.

The group is guiding towards 75,000 barrels a day of production in 2017, before any contribution from the Catcher field. 

Stephane Foucaud, analyst at First Energy, called the progress with the refinancing and lower than estimated costs for developing the Catcher field “encouraging”.