Businessweek

teams, with a focus on half-hour comedies and one-hour dramas, primarily for primetime broadcasts. Primetime programming produced either for its networks or for third parties for the 2012/2013 television season include the returning one-hour dramas Army Wives, Body of Proof, Castle, Criminal Minds, Grey’s Anatomy, Once Upon a Time, Private Practice, Revenge and Scandal; the returning half-hour comedies Cougar Town, and Happy Endings. New primetime series include the 1 hour dramas Nashville and Perception, and the half-hour comedies Malibu Country and The Neighbors. Additionally, the drama series Devious Maids, Mistresses, Red Widow and Zero Hour, and the comedy Family Tools are in production for mid-season launch. The company also produces the late night show Jimmy Kimmel Live, and various primetime specials for network television and live-action syndicated programming. Syndicated programming includes the daytime talk shows, Katie and Live! with Kelly and Michael, and the game show, Who Wants to Be a Millionaire. The company also produces news programming, including World News with Diane Sawyer, Good Morning America, 20/20, and Nightline and programming for daytime, such as The View, The Chew, This Week with George Stephanopoulos, and General Hospital. Television Distribution The company distributes its productions worldwide in pay and syndication markets, in DVD and Blu-ray formats and also online via company Internet sites, such as ABC.com and third-party services. The company’s distribution groups also distribute programming aired on its cable networks. Domestic Television Stations The company owns eight television stations. All of its television stations are affiliated with ABC. Each owned station broadcasts three digital channels: the first consists of local, ABC, and syndicated programming; the second is the Live Well Network in standard definition; and the third is the Live Well Network in high definition. The Live Well Network provides programming on lifestyle topics, such as interior design, healthy cooking, and outdoor activities. Hulu LLC (Hulu) Hulu’s principal business is to aggregate television and film entertainment and other content for consumer viewing on the Internet. Hulu sells advertising to third parties and offers the Hulu Plus subscription service. The company owns 32% interest in Hulu. Seasonality Advertising revenues at the Media Networks are subject to seasonal advertising patterns and changes in viewership levels. Revenues are typically somewhat higher during the fall and somewhat lower during the summer months. Affiliate revenues are typically collected ratably throughout the year. Certain affiliate revenues at ESPN are deferred until annual programming commitments are met. These commitments are typically satisfied during the second half of the company’s fiscal year (ending on September 29, 2012), which generally results in higher revenue recognition during this period. PARKS AND RESORTS The Parks and Resorts segment owns and operates the Walt Disney World Resort in Florida; the Disneyland Resort in California; Aulani, a Disney Resort & Spa in Hawaii; the Disney Vacation Club; the Disney Cruise Line; and Adventures by Disney. The company manages and has effective ownership interests of 51% in Disneyland Paris, 48% in Hong Kong Disneyland Resort, and 43% in Shanghai Disney Resort. It also licenses the operations of the Tokyo Disney Resort in Japan. The company’s Walt Disney Imagineering unit designs and develops new theme park concepts and attractions, as well as resort properties. The Parks and Resorts segment is involved in the sale of admissions to theme parks; sales of merchandise, food and beverages; room nights at hotels; sales of cruise vacations; and sale and rental of vacation club properties. Walt Disney World Resort The Walt Disney World Resort is located 22 miles southwest of Orlando, Florida, on approximately 25,000 acres of owned land. The resort includes theme parks (the Magic Kingdom, Epcot, Disney’s Hollywood Studios and Disney’s Animal Kingdom); hotels; vacation club properties; a retail, dining and entertainment complex; a sports complex;