Universal Australia Staff Meeting Tuesday 6th September - PowerPoint PPT Presentation

Universal Australia Staff Meeting Tuesday 6th September

International Home Entertainment Marketplace • A $25Bn category in 2011 • Declining from a $28Bn Category in 2008 • Digital emerging as a viable alternative • Customer base is evolving and moving online • Piracy is increasing • Operating costs are rising globally • Studios are looking at how they operate

Universal Australia • Fourth largest International Market behind UK, Germany & Japan • Strong and highly rated team • Ranked between 5th and 7th largest Studio in territory • Market has declined by X% since 2008 • Profit has declined by X% since 2008

Why we want to Lead Change • The Home Entertainment market is changing • We want to lead change - not be led • To influence the shape of the future • First mover advantage is important • Our Customers are asking and needing us to change

A New Business Model • A Joint Venture between Universal Pictures & Sony Pictures Home Entertainment • 50/50 Ownership between the two Businesses • World class content from Universal and Sony • Largest Home Entertainment business in Australia • February 1st 2012 go-live date • Unique in the world

UNIVERSAL AND SONY PICTURES HOME ENTERTAINMENT AUSTRALIA

Operating Principles • JV will sell, market, produce and distribute all Universal and Sony content – New Release, TV, Special Interest and Catalogue, as well as Locally acquired content. • One team in Sales, Marketing, Finance and Operations to deliver for both Studios. • The JV’s Board members will be drawn 50/50 from Sony and Universal. • The MD will report to a Board of 3 Sony & 3 Universal Executives. • Sony DADC will continue to undertake physical distribution and order management on behalf of the JV, with combined volumes and efficiencies. • The JV will design and manage all marketing programs and plans. • The JV will negotiate and operate new Vendor and Customer terms.

What does it mean for us? • Change • A new Company • A new structure • A new Team created from Universal & Sony employees • A new home in Market Street • New systems • A huge opportunity, and long term stability • Real scale in the market • Opportunity to engage the Best Suppliers

What does it mean for our Customers? • One point of contact for all Universal & Sony titles • One box delivery • One invoice • One Merchandising solution • One set of trading terms • The greatest depth and breadth of product in Australia • The best team in Australia • Market leading consumer insight / category trends across Local and Global markets • Greater efficiency • More profit

The Management Team • Managing Director Jim Batchelor • Marketing Director Cindy McCulloch • Sales Director Paul Courtney • Operations Director Kate Bradbury • Strategy Director Catherine Tan • Finance Director Peter Ayling • HR Manager Kelly Dowen • Legal Advisor John Bourne

Other Key Personnel • Jon Horley • New Zealand will not form part of the JV • Universal TV, Theatrical etc will be unaffected • A UPA Finance function will remain at Munn Reserve to service other NBC Universal business’ led by Amanda Blinkhorn • Acquisitions will continue to be led by Joanna White, who will move with the JV • Liz van Hooven will return as interim MD as I transition into the JV

Next Steps • Functional meetings this afternoon • 121 meeting with Directors • Customers and Vendors notified this afternoon • Press Release at 6pm • Face to Face meetings with Customers on Wednesday & Thursday • Clarity on your role by Monday, 19 September

High Level Timeline to Go-Live • Announce Date 6th September • Notify Customers/Vendors 6th September • Team Appointed19th September • Vendor Negotiations Sept / Oct • Customer Negotiations Sept / Oct • Systems Go Live 31st October • Full team in Market Street9th January • GO LIVE 1st February

Questions?

Functional Breakout Meetings • Sales Team : Boardroom • Marketing Team : Level 2 • Finance Team : Amanda’s Office • Operations Team : Level 4 Music • Acquisitions Team : Joanna’s Office