Corporation Background Compact Corporation was founded June 28, 1963 by Ralph J. Roberts, Daniel Aaron, and Julian A. Brood’s. “Compact is one of the nation’s leading providers of communications, entertainment, and cable products and services. Headquartered In Philadelphia, Pennsylvania, they employ over 100,000 employees nationwide” (Compact, 2010). The five general areas that make up Compact are cable communications, cable networks, broadcast television, filmed entertainment, and theme parks.
The two major areas of Compact are cable communications and cable networks since they primarily consist of high-speed internet and cable television. The most popular technology that Compact has created is Gifting. This product allows for on-demand television and internet access. The combination of cable, internet, and telephone services has allowed them to surpass fifty million customers (Sashes, 2012). With millions of users, this is where they make the majority of their money.
One of the negative aspects of Compact within the past year is that they have en losing thousands of customers through other products like Entitle. Because of this, they have recently exposed a new product that should gain back all of the customers they lost. “Compact has launched a new store that enables US Expertly TV customers to buy movies and TV shows. Titles purchased through the new Civility On their TV, computer, or mobile device” (McCormick, 2013). This new advancement in their services will keep them on top of other competitors such as Directs and Entitle.
Another important aspect of Compact’s success is the various digital media and endures that they own. Based on the Columbia Journalism Review, Compact owns part of Hull, Tivoli, and Version (Columbia, 2013). These three services are very popular and can really benefit Compact with further development. Hull is a website that offers streaming of TV shows, movies, and other media while TIVOLI lets you record shows. Since Compact didn’t offer these services in their own package at first, they had to rely on their ownership of these products to stay ahead of their competitors.
Version seemed important to me because they are the global leader in domain Ames and take people where they want to go on the internet (Version, 2013). This is a smart piece of ownership by Compact because the internet is only getting bigger and more advanced, which could lead to major benefits in the future. For the past few years Compact has also shown a good increase in the amount of money that they make. “In 2012, their revenue increased 12% to $62. 6 billion, reflecting strong growth in both cable communications and Universal businesses” (Compact, 2012). Their operating cash flow also increased 9% to $20 billion.
