Paramount

Corporate Finance Project
The Entertainment/Electronics Industry

May 2, 2005 Simone De Liberis Georgios Fassas Paulo Larumbe Brad Pseres Daniel Weisleder Jennifer Williams

Executive Summary This is a corporate finance analysis of the following companies in the Entertainment/Electronics industry: Apple Computers, Inc. Cablevision Electronic Arts Netflix Time Warner TiVo These businesses represent an industry trend of convergence between electronics and entertainment companies. Business Descriptions: Apple Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the industry in innovation with its award-winning desktop and notebook computers, OS X operating system, and iLife and professional applications. Apple is also leading the digital music revolution with its iPod portable music players and iTunes online music store. Cablevision Cablevision Systems Corporation was organized in 1985 and is one of the largest cable operators in the United States based on the number of subscribers. As of December 31, 2004, the company served about 2.96 million homes in the New York-metropolitan area. The business is classified into four segments: • Telecommunications Services – consists of the cable television business which includes basic cable, interactive digital cable, high-speed data, Voice over Internet Protocol and residential telephone services operations • Rainbow – this segment consists of interests in national and regional programming businesses including AMC, The Independent Film Channel, WE: Women’s Entertainment, fuse and various Fox Sports regional networks • Madison Square Garden – this segment owns and operated the Madison Square Garden arena and the adjoining Theater at Madison Square Garden. Also included here are the New York Knicks, the New York Rangers and the New York Liberty professional sports franchises • Rainbow DBS – This... [continues]

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