Profile: Ascent Media Corporation (ASCMA.O)

Ascent Media Corporation (Ascent Media), incorporated on May 29, 2008, is a holding company and owns 100% of its operating subsidiary, Ascent Media Group, LLC (AMG). AMG is primarily engaged in the business of providing content and creative services to the media and entertainment industries in the United States, the United Kingdom and Singapore. AMG provides solutions for the creation, management and distribution of content to motion picture studios, independent producers, broadcast networks, programming networks, advertising agencies and other companies that produce, own and/or distribute entertainment, news, sports, corporate, educational, industrial and advertising content. The Company operates in two business segments: Content Services group and Creative Services group. On September 4, 2008, Ascent Media consummated the sale of Ascent Media CANS, LLC (AccentHealth). On September 8, 2008, the Company sold 100% of the outstanding membership interests in Ascent Media Systems & Technology Services, LLC. On September 30, 2008, Ascent Media sold 100% of its ownership interest in Visiontext Limited.

Content Services

AMG’s Content Services group provides a complement of facilities and services necessary to optimize, archive, manage, and reformat and repurpose completed media assets for global distribution via freight, satellite, fiber and the Internet, as well as the facilities, technical infrastructure, and operating staff necessary to assemble programming content for cable and broadcast networks and to distribute media signals via satellite and terrestrial networks. AMG’s Content Services group operates from facilities located in California, Connecticut, Florida, Minnesota, New York, New Jersey, Virginia, the United Kingdom and Singapore. AMG implements clients’ creative decisions, including decisions regarding the integration of sound and visual effects, to assemble source material into its final form. In addition, AMG uses computer graphics equipment to generate titles and character imagery and to format certain entertainment media content to meet specific production and distribution requirements, including time compression and commercial breaks. AMG creates and delivers multiple master copies of the applicable final product for distribution, broadcast, archival and other purposes designated by the customer.

AMG’s Digital Media Distribution Center provides services that enable content owners to digitize content once, then store, manage, re-purpose and distribute such content globally in multiple formats and languages to numerous providers. AMG provides support services required to manufacture and deliver commercials to specific television broadcasters or radio stations, including format conversion, video and audio duplication, distribution, and storage and asset management, for advertising agencies, corporate advertisers and other content owners. AMG uses satellite, fiber-optic and Integrated Services Digital Network (ISDN), Internet access, terrestrial broadband, and conventional air freight for the delivery of television and radio spots to broadcasters and radio stations.

AMG provides film restoration, preservation and asset protection services. AMG’s technicians use photochemical and digital processes to clean, repair and rebuild a film’s elements in order to return the content to its original and sometimes to an improved image quality. AMG also protects film element content from future degradation by transferring film images to newer archival film stocks and digital files. AMG also provides asset protection services for its clients’ color library titles, which is a preservation process whereby black/white (B/W), silver image, polyester, positive and color separation masters are created, to protect the images of new and older films.

Creative Services

AMG’s Creative Services group provides technical and creative services necessary to complete principal photography into final products, such as feature films, movie trailers and television (TV) spots, documentaries, independent films, scripted and reality television, TV movies and mini-series, television commercials, Internet and new media advertising, music videos, interactive games and new digital media, promotional and identity campaigns and corporate communications. AMG markets its creative services under various brand names, including Company 3, Encore Hollywood, FilmCore, Level 3 Post, Method, RIOT Santa Monica, RIOT Atlanta, Rushes and Ascent 142. The creative services client base comprises motion picture studios and their international divisions, independent television production companies, broadcast networks, cable programming networks, advertising agencies, creative editorial companies, corporate media producers, independent owners of television and film libraries and media distribution channels.

AMG provides the services for clients to view principal photography on a daily basis, including film processing and digital transfer, which is the transfer of film negatives to video or digital data. AMG also provides dailies viewing environments at client locations and in editorial cutting rooms for their clients’ productions. AMG’s digital intermediate service provides customers with the ability to convert film to a high resolution digital master file for color correction, creative editorial and electronic assembly of masters in other formats. The digital intermediate process provides filmmakers and commercial producers with creative control through visual manipulation options and the ability to see their creative decisions applied in real time.

The Company competes with Paramount Pictures, Sony Pictures Entertainment, Twentieth Century Fox, Universal Pictures, The Walt Disney Company, Warner Bros. Entertainment, Thomson, Kodak, Deluxe Entertainment Services, and DG FastChannel, Inc.