Business Deals 101

[endorphin_junkie]

I have been trying to figure out what Cathe's new deal is and I have to admit that I just don't get it. If nothing is going to change then what are the advantages of the deal. Is it a matter of Cathe.com being absorbed into a bigger corporation (CCETV), if so at some point shareholders will want a bigger bottom line and my fear is that that means 'dumbing' down workouts for more mass marketing.
Is CCETV an actual broadcasting station or do they own a bunch of smaller stations?? Is their role marketing and distribution? I have so many questions that I don't even know how to ask! Can anyone one help me with a little lesson in business deals? I'm sure that I am not the only one thinking, 'if Cathe says it's a good it must be a good deal but I don't get it!'

I realise that we won't be privy to all of the details but seek a little clarity if someone else has a better handle on the implications of the deal from the details that Cathe chose to share with us. TIA.

Take Care
Laurie

edited for spelling and grammar

 

[pink_fortitude]

I am trying to understand this, as well!!! Somebody, help us!!!

Missy

don't need to edit for spelling and grammar since I always do things right the first time!!!}( }( }( I am so evil and that is so not true!!!:+ :+ :+

 

[Debra L]

Cathe didn't describe SNM's arrangement with CCETV so it's no wonder that you're confused. CCETV produces tv shows, mostly documentaries but they are expanding into sports (from what I could find on the web). Cathe said that SNM would continue to produce their own DVD's so it's clear as mud what CCETV's role will be.

Debra

 

[nancy324]

Laurie-

Thanks for challenging me to answer this question on Marcia's post. I'll give it a whirl. You make a number of good points.

Cathe.com is a small, private (and in all of our opinions, wonderful) company with limited resources. Clear Channel Communications is a diversified media S&P 500 company, which means that it is huge. CCETV is a division of Clear Channel Communications, and, according to it's website, one of the fastest growing ones.

According to the website, the division's primary focus is in four distinct areas of television: (1) the production of original programming, including live music concert events, reality series, and documentaries for television (2) negotiating programming and distribution rights of the division’s productions with the broadcast and cable networks (3) the licensing, production and distribution of all Clear Channel Entertainment programs on DVD; and (4) the international distribution of Clear Channel Entertainment and third party programs on TV and DVD.

As Cathe stated in her announcement "CCETV's job will be to leverage our success and develop our brand into a national and worldwide phenomena." It is not clear from Cathe's post whether cathe.com has merged with CCETV or whether they have just signed a contract as a customer of CCETV.

I don't know anything about the entertainment industry, so maybe someone who knows more can jump in here. But it seems apparent that, as you mentioned, CCETV will have marketing, promotional and distribution resources that it will use to market, promote and distribute Cathe.com workouts to a much larger audience than Cathe.com has ever enjoyed before. Obviously, the goal is to make Cathe.com more profitable. I assume that this means greater sales volume of Cathe.com DVD workouts and other Cathe products, including new kinds of products which may be developed. I'm assuming it will involve more media coverage of Cathe in magazines and on television, etc., and who knows what.

In terms of what CCETV is getting out of it, well, we all know that. They have discovered what we've all known for years: for Cathe, the sky is the limit. And why not? What do Jack LaLane, Jane Fonda or Richard Simmons have that Cathe doesn't have? (Appeal to a mass market with horrendous taste? Okay, you got me there).

As for what that means for our little group of 9300 subscribers to these forums, well, all I can say is that I think many of us share your concerns, Laurie.

Did that help at all?

-Nancy

 

[Tamster]

I don't know if it helped Laurie...but it sure helped me!!! Thanks Nancy!


Tammy

 

[endorphin_junkie]

Yes Nancy that does help to clarify some of it. Thanks so much. I guess all we can do is sit back and observe what will occur during this time of transition. I hope things don't change drastically but, like Pandora, once the 'secret' is out there about Cathe there's no turning back. I'm glad to have been a part of Cathe's building years pre FIT TV and am as curious as everyone else how Cathe.com will be marketed and how the masses will react to our fearless Dynamo

Take Care
Laurie

 

[nastsm0m]

So does this mean that son we will have many more members here? If so I worry about some people getting lost in the shuffle and missing posts/threads. It was nice kind of having a personal relationship with many of the members here. I hope we never lose that special touch when the crowd gets bigger.

Terri