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Category: Business

Headline News Sega Posts $169M Loss In First Half, Cuts Price Of Dreamcast Console

An AP Newswire brief stated that Sega Corp. has reported a $169 million loss for the first fiscal half, largely because the declining value of its investments more than offset the improvement in its video-game business. Sega, which earlier in 2001 abandoned production of its Dreamcast game system, has also announced another reduction in price for the discontinued console. The Dreamcast system, which originally retailed for $199, will now be available for $49.99. Sega hopes the drastically reduced price will move the remaining 270,000 units out of stores by the end of the holiday season.

Headline News Cinar Restructures, Cuts Staff

Scandal-plagued children's television producer Cinar Corp. has laid off staff and appointed new auditors in an attempt to restructure its entertainment and corporate divisions. Under the restructuring, Cinar's Montreal staff has been reduced from 164 to 110. While most of the layoffs were corporate positions, 22 employees were cut in Cinar's studios and animation department. The restructuring is the latest of several administrative steps taken during the past 20 months by Cinar's current management to put the company on solid footing once again.

Headline News Film Roman Announces Year-to-Date Figures

SIMPSONS producer Film Roman, Inc. announced a revenue decrease of 26%, or $1.3 million, to $3.7 million for the quarter ended September 30, 2001. This number is down from $5.0 million for the previous year at this time. Total revenue decreased primarily because the company delivered fewer prime time fee-for-services episodes offset by more Saturday morning fee-for-services episodes.

Headline News WGA Uses Ads To Get A Rise Out Of Nick

In an aggressive attempt to discredit Nickelodeon, the Writers Guild of America, west (WGAw) has launched an advertising campaign requesting Nickelodeon Animation Studios adhere to the standards of the International Council of Toy Industries (ICTI) Code of Business Practices or the Fair Labor Association (FLA) Workplace Code of Conduct. The request is in reference to the licensing and manufacturing of toys and other merchandise based on two Nickelodeon animated characters SPONGEBOB SQUAREPANTS and JIMMY NEUTRON: BOY GENIUS.

Headline News TV-Loonland Plans Strategic Investment In Metrodome Group

TV-Loonland AG has its eyes set on 29.9 percent of the British DVD and video distributor Metrodome Group plc., London. If the green light is given at a general meeting on November 29, 2001, TV-Loonland will buy 4,184,250 new shares from Metrodome at a price of 17 pence (approximately US$.25) per share as part of a capital increase. At the same time TV-Loonland is prepared to extend a £1.5M ($2.18M) loan to Metrodome for the purpose of buying new film and DVD/video rights.

Headline News Terkuhle Stays With MTV, But Not As Prez

In further developments of the MTV restructuring that has so far resulted in layoffs and the closing of MTV Animation production, Abby Terkuhle is no longer president of MTV Animation. However, according to an MTV spokesperson, Terkuhle will continue his relationship with the company, although the nature of this relationship could not be discussed at press time. Sources suggest that Terkuhle will have a first look producing deal or some similar arrangement.

Headline News Blue Sky Lays Off Animation Staff

Blue Sky Studios, currently at work on the upcoming CG animation feature ICE AGE, has laid off a significant number of their animators. Sources say approximately 100 people have been let go, which could not be confirmed by Fox as of press time. However, a Fox rep did concur that animators have been laid off because the studio is ramping down as principle animation on ICE AGE is nearing completion. The Fox corporate representative also said that Blue Sky has a project in development that has not yet been announced.

Headline News Pixar Reports Third Quarter Results

Pixar Animation Studios, which currently has the United States top motion picture for a second week in a row, recently reported a 30 percent decline in third quarter earnings. Pixar said earnings fell to $6.2 million or 12 cents per diluted share in the third quarter, which concluded at the end of September 2001, a month before MONSTERS, INC. hit theaters. This figure is down from $8.8 million or 18 cents per share in the period a year ago. Pixar also announced that it is raising projections for 2001 EPS from the previous range of $0.50 to $0.58, to a new estimate of about $0.60.

Headline News Secret Lab Closing Not So Secret

In a follow up to a story about the Secret Lab closing that was written in VARIETY and subsequently reported in AWN and numerous other media outlets, AWN was told that the layoffs were part of an overall restructuring of Disney, including the feature animation department, that was announced in April 2001.

Headline News I See Virtual People

Interactive media provider Pulse has inked a deal with text-to-speech (TTS) technology provider Rhetorical Systems making Pulse the exclusive North American reseller of Rhetorical Systems' technology for Web-based solutions. Under the agreement, Pulse will integrate Rhetorical Systems' rVoice software and sell interactive media solutions featuring a selection of character and photo-real 3D personalities with automated lip-synching and realistic human speech in both genders and a range of accents and speaking styles. Specific financial details of the agreement were not disclosed.

Headline News Online Gaming Not Yet Profitable For Electronic Arts.

In an attempt to reach a previously announced goal of making its online gaming unit successful by the year 2003, game company Electronic Arts (EA) said it will cut as many as 250 jobs at its division, reported REUTERS. The cuts represent about 1/3 of EA.coms employees. Electronic Arts employs over 3600 people worldwide and is the number one video game publisher in the U.S. The company is also the exclusive game provider to AOL. EAs first foray into the subscription online gaming arena, the five-episode suspense thriller MAJESTIC, launched online in August 2001.

Headline News FOX And ABC – One Big Happy Family?

According to a VARIETY news report, layoffs may be imminent at newly acquired Fox Family Worldwide. The Walt Disney Company recently completed their buy out of Fox Family for a final purchase price of $5.2 billion and the changes have already begun. The companys flagship Fox Family cable channel has been renamed ABC Family and it will be rebranded with an interim ABC Family logo starting this weekend.

Headline News Activision Withdraws Registration For Common Stock Offering

Activision, Inc. has discontinued its previously announced public offering of common stock due to current market conditions. The company has filed with the Securities and Exchange Commission an application for the withdrawal of its registration statement covering the 6 million shares of its common stock that were to be issued in the proposed public offering. The company has also discontinued any further marketing efforts in connection with the offering. However, the companys Board of Directors has approved a three-for-two split of its outstanding common shares.

Headline News The 3DO Company Announces Second Quarter Results

The 3DO Company has finished the fiscal second quarter ended September 30, 2001 in line with expectations. Revenues were $9.9 million, compared to $20.2 million reported for the second quarter of last fiscal year. The net loss for the quarter decreased by 42% to $9.7 million, or $0.20 per share, compared to a loss of $16.7 million, or $0.45 per share in the same quarter last year. The company recorded an adjustment to the second quarter of the prior fiscal year, which resulted in a reduction of $1.8 million of revenue and $0.5 million in cost of sales.

Headline News MTV Restructures And Lays Off Hundreds

On Monday, October 29, 2001, MTV Networks announced a worldwide restructuring plan resulting in 450 lay-offs, approximately 9% of its full-time staff. The departments most significantly affected are the online divisions and MTV Animation. The once separate online operations will be integrated with the television businesses meaning staffers for the online division will be moved out of their current location at 770 Broadway and merged with the television operation in midtown Manhattan. This move represents the majority of the staff cuts.

Headline News Disney’s Secret Lab Closes Its Doors

Disney has announced plans to close The Secret Lab, the visual effects unit of its Feature Animation group. The Secret Lab was formed two years ago, emerging from Oscar-winning effects house Dream Quest Images, which was founded in 1979 and became a division of Disney in 1996. In a VARIETY report, Walt Disney Feature Animation president Thomas Schumacher stated that The Secret Lab is no longer actively seeking outside contracts. However, he also said, If the studio comes to me and says heres a movie that we have a special demand for, then fantastic.

Headline News Disney Completes Acquisition Of Fox Family Worldwide

The Walt Disney Company has completed its previously announced acquisition of Fox Family Worldwide, Inc. from Haim Saban and Fox Broadcasting Company. The acquisition closed on October 21, 2001 with a final purchase price of $5.2 billion, including approximately $2.9 billion in cash and the assumption of $2.3 billion in Fox Family. Michael D.

Headline News Cinar Repays Debt

Canadian family entertainment company CINAR Corporation has recently repaid an existing bank loan which was due on October 15, 2001. The corporation had US$26 million outstanding as of November 30, 2000 and this amount has now been repaid in the current fiscal year.

Headline News Fox And eBay Auction Animation For Charity

Fox Entertainment Group has teamed with eBay to support Auction for America, the online charity initiative designed to raise funds for the victims, families and communities affected by the terrorist attacks of September 11. The auctions began October 22, 2001 and will continue through the holiday season. All proceeds will be donated to the Twin Towers Fund.

Headline News Avid Reports Third Quarter Results

Avid Technology, Inc. has reported its financial results for the third quarter ended September 30, 2001. Revenues for the quarter were $102.3 million. Net loss for the quarter was $14.2 million or $.55 per share including amortization of acquisition-related intangible assets, and restructuring and other costs, net. Excluding these items, Avid would have reported a net loss of $801,000 or $.03 per share for the third quarter of 2001. For the nine months ended September 30, 2001, revenues were $329.8 million.

Headline News New York And Vienna-Based Creative Teams Become Super-Fi

Executive producer John Yuiska and creative director Daniel Garcia have joined forces with Vienna-based digital content studio .voortekk to form Super-Fi. The company will produce animation and design-based cross-platform content for commercials, broadcast design, music videos, film and branded online entertainment. Super-Fi will maintain offices in New York and Vienna.

Headline News Activision -- One Of America's Fastest Growing Companies

Activision, Inc. has been recognized by Fortune Magazine as one of the top 100 fastest-growing publicly held companies in the U.S. Activision, ranked 86th in Fortune Magazine's 2001 "100 Fastest-Growing American Companies," is the only interactive entertainment company to appear on the list. The company's three-year annualized performance ratings were 45% earnings per share, 36% revenue growth and 56% total stock market return.

Headline News Sega And THQ Announce Multi-Title Co-Publishing Agreement

THQ Inc. and Sega Corporation have entered into an exclusive, multi-title co-publishing agreement under which THQ will co-publish 16 Game Boy Advance titles featuring Sega brands in North America through 2003. The launch will begin with six titles released through March 2002. The agreement provides Sega with greater exposure on the Game Boy Advance platform as it transitions exclusively to software publishing and provides THQ with content to help solidify its position as a leading independent Game Boy Advance publisher.