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Tag: 21st Century Fox

  • Q2-2016: 21st Century Fox reports flat revenue, operating income up 2.1%

    Q2-2016: 21st Century Fox reports flat revenue, operating income up 2.1%

    BENGALURU: Rupert Murdoch’s 21st Century Fox Inc (Fox) reported almost flat YoY (down 0.7 per cent) adjusted revenue of $7,375 million in the quarter ended 31 December, 2015 (Q2-2016, current quarter) as compared to the $7,424 million in the corresponding prior year quarter.

    Adjusted Operating Income (OIBDA) in the current quarter increased 2.1 per cent YoY at $1,730 million as compared to $1,695 million. The company says that the decline compared to last year’s adjusted revenues reflects higher affiliate and advertising revenues at the Cable Network Programming and Television segments that were more than offset by lower revenues generated at the Filmed Entertainment segment due to lower home entertainment revenues and the absence of revenues from Shine in the current quarter. The adverse impact of foreign exchange rates in the current quarter impacted adjusted revenue growth by $207 million, or three per cent in total.

    According to Fox, the YoY increase in adjusted OIBDA compared to last year’s adjusted OIBDA primarily reflects eight per cent growth at the company’s Cable Network Programming segment partially offset by reduced contributions from the Filmed Entertainment segment. The adverse impact of foreign exchange rates impacted adjusted OIBDA growth by $109 million, or six per cent.

    Commenting on the results, Fox executive chairmen Rupert and Lachlan Murdoch said, “During the quarter, our cable business continued to drive our growth, delivering sustained increases in domestic affiliate fees and gains in advertising revenue, underscoring the power of our global brands and distinctive programming. In addition, we are encouraged by progress at the Fox Broadcast Network, which delivered significant advertising gains from both our sports and entertainment programming. At our television production business, we deliberately invested in a higher number of new original series this quarter in support of the network’s new primetime schedule and in creating valuable long-term assets for the company. We continued with our top priority of delivering standout storytelling and are proud of our industry-leading Academy Award nominations as well as Golden Globe wins across both our film and television businesses.”

    Cable Network Programming

    Cable Network Programming quarterly segment OIBDA increased eight per cent to $1.25 billion, driven by a nine per cent revenue increase on strong affiliate revenue growth and higher advertising revenues partially offset by a 10 per cent increase in expenses. The increase in expenses was primarily due to the impact from the consolidation of newly acquired National Geographic Partners businesses as well as higher planned sports programming costs led by soccer, Major League Baseball and college football rights. Foreign exchange fluctuations, primarily in Latin America and Europe, adversely impacted segment OIBDA growth by five per cent.

    Domestic affiliate revenue increased 10 per cent reflecting continued strong growth at FS1 and Fox News and sustained growth across all of the other domestic cable networks. Domestic advertising revenue grew three per cent over the prior year period reflecting solid growth at Fox News and the Regional Sports Networks, led by higher ratings for National Basketball Association games, partially offset by lower advertising revenues at FX Networks from lower ratings. Domestic OIBDA contributions increased seven per cent over the prior year led by higher contributions from Fox News and the domestic sports channels.

    International affiliate revenue decreased one per cent as 11 per cent local currency growth at Star and the Fox International Channels (FIC) was more than offset by a 12 per cent adverse impact from the strengthened US dollar. Despite an 11 per cent adverse impact from the strengthened US dollar, international advertising revenue increased 15 per cent as the Star and FIC channels generated strong local currency growth. Quarterly OIBDA at the international cable channels increased eight per cent reflecting strong local currency growth partially offset by the adverse impact of the strengthened US dollar.

    Television

    Television generated quarterly segment OIBDA of $279 million, an $11 million decrease over the $290 million reported in the prior year quarter. Quarterly segment revenues were six per cent higher than the corresponding period in the prior year due to strong retransmission consent revenue growth and a four per cent increase in advertising revenues, primarily reflecting low double digit
    advertising growth at the Fox Broadcast Network, which benefited from higher national pricing and increased audiences for both the National Football League and the new primetime schedule led by Empire, partially offset by lower cyclical political advertising revenues at the TV stations. The decrease in segment OIBDA was driven by higher contractual sports programming costs at the Fox Broadcast Network that more than offset the higher revenues.

    Filmed Entertainment

    Filmed Entertainment generated quarterly segment OIBDA of $302 million, a $34 million decrease from the $336 million reported in the same period a year-ago. Quarterly segment revenues decreased $392 million to $2.36 billion, primarily due to lower worldwide home entertainment revenues reflecting difficult comparisons to last year’s strong performance of X-Men: Days of Future Past and Dawn of the Planet of the Apes with this year’s home entertainment performance of Spy, the absence of revenue contributions from Shine and the adverse impact of the strengthened US dollar partially offset by higher television production network revenues. The OIBDA decline over the prior year primarily reflects lower contributions from the television production business due to higher deficits related to more new series delivered during the quarter and the absence of contributions from successful series that concluded in the prior year, including Sons of Anarchy, partially offset by higher film studio contributions driven by the worldwide theatrical performance of The Martian, which has grossed over $600 million in worldwide box office to date. Segment OIBDA comparisons were also adversely impacted by a 14 per cent negative impact from foreign exchange rate fluctuations.

  • 21st Century Fox eyes $250 million cost cut via staff buyouts

    21st Century Fox eyes $250 million cost cut via staff buyouts

    MUMBAI: The Rupert Murdoch owned 21st Century Fox is looking at reducing costs by approximately $25 million in the 2017 fiscal by offering enhanced benefit packages to employees of its film (Twentieth Century Fox Film) and TV networks (Fox Networks Group) divisions if they resign voluntarily.

    In an internal email memo, Fox Networks Group chairman and CEO Peter Rice said, “Our industry is changing rapidly, presenting new challenges and even more opportunities at every turn. For a company that has always embraced change and innovation, these are exciting times. To ensure we make the most of this new world, we need to adjust, adapt, and organize for the future. With this in mind, through the remainder of this fiscal year, we will be undertaking some structural changes, increasing investment in some parts of the company while making cost reductions in other areas.”

    “As the next step in this reorganization, colleagues who fit a specific set of criteria will be offered a generous benefit package if they decide to voluntarily resign from the company, effective May 23, 2016. Colleagues who are eligible for this offer will receive a confidential email in the next few hours with specific terms and benefits. Again, the program is completely voluntary,” Rice added.

    Twentieth Century Fox Film chairman and CEO Jim Gianopulos wrote in his memo, “As we all know, the film industry is facing many significant changes, and we are no exception. While we continue to succeed on many fronts, such as garnering an extraordinary 30 Academy Awards nominations and; last year, setting an all-time industry box office record, we must be cognizant of the industry’s transformation and position ourselves to continue our success in this new environment. To that end, we are reviewing our organizational structure and looking at potential cost reductions to position us for sustained future growth.”

    “This comes at a time that is both exciting and challenging for the company. We are the best at what we do and will continue to excel, but we also have to be fearless about transforming, and embrace both change and opportunity. If we structure our organization for the media world ahead of us, we will continue to thrive and make 20th Century Fox a stronger and more agile company going forward,” Gianopulos added.

  • 21st Century Fox eyes $250 million cost cut via staff buyouts

    21st Century Fox eyes $250 million cost cut via staff buyouts

    MUMBAI: The Rupert Murdoch owned 21st Century Fox is looking at reducing costs by approximately $25 million in the 2017 fiscal by offering enhanced benefit packages to employees of its film (Twentieth Century Fox Film) and TV networks (Fox Networks Group) divisions if they resign voluntarily.

    In an internal email memo, Fox Networks Group chairman and CEO Peter Rice said, “Our industry is changing rapidly, presenting new challenges and even more opportunities at every turn. For a company that has always embraced change and innovation, these are exciting times. To ensure we make the most of this new world, we need to adjust, adapt, and organize for the future. With this in mind, through the remainder of this fiscal year, we will be undertaking some structural changes, increasing investment in some parts of the company while making cost reductions in other areas.”

    “As the next step in this reorganization, colleagues who fit a specific set of criteria will be offered a generous benefit package if they decide to voluntarily resign from the company, effective May 23, 2016. Colleagues who are eligible for this offer will receive a confidential email in the next few hours with specific terms and benefits. Again, the program is completely voluntary,” Rice added.

    Twentieth Century Fox Film chairman and CEO Jim Gianopulos wrote in his memo, “As we all know, the film industry is facing many significant changes, and we are no exception. While we continue to succeed on many fronts, such as garnering an extraordinary 30 Academy Awards nominations and; last year, setting an all-time industry box office record, we must be cognizant of the industry’s transformation and position ourselves to continue our success in this new environment. To that end, we are reviewing our organizational structure and looking at potential cost reductions to position us for sustained future growth.”

    “This comes at a time that is both exciting and challenging for the company. We are the best at what we do and will continue to excel, but we also have to be fearless about transforming, and embrace both change and opportunity. If we structure our organization for the media world ahead of us, we will continue to thrive and make 20th Century Fox a stronger and more agile company going forward,” Gianopulos added.

  • FCC action could stifle TV innovation

    FCC action could stifle TV innovation

    On Wednesday, FCC chairman Tom Wheeler proposed a new technology mandate that would require satellite and cable TV providers to disaggregate or separate their services so that a few companies could repackage them as their own without negotiating for content rights like everybody else in the market does today. While the chairman touts consumer benefits to his proposal, the opposite is the case. 

     

    The proposal, like prior federal government technology mandates, would impose costs on consumers, adversely impact the creation of high-quality content, and chill innovation. It also flies in the face of the rapid changes that are occurring in the marketplace and benefitting consumers.

     

    As a member of the technical advisory committee that the FCC formed, I, along with others on the committee, put in an extraordinary amount of time examining these issues. The Report we produced comprehensively discussed the widely-adopted apps-based model. The chairman ignores the less regulatory apps-based approach that is already expanding the array of choices that consumers have to access content on retail devices.  

     

    In the 21st century, television has been on a tear of innovation. In the 1980s, wanting your MTV became an anthem. The 1990s saw an explosion of channels and diversity of voices on television, and the beginnings of HDTV. Change has been accelerating ever since. 

     

    Netflix now has more customers in the US than any traditional TV provider; tablets, smartphones, smart TVs, connected devices for accessing video are ubiquitous; and new online video services are announced all the time. There are services from online powerhouses like Amazon; from new entrants like Sony’s Play Station Vue and Dish’s Sling TV that sell packages including linear channels; and from programmers like HBO, Showtime, and CBS. Just this week, we’ve seen the influence of these new services in locking up content at Sundance.

     

    These changes are bringing enormous consumer benefits — the quantity and variety of high-quality programming is better than ever, and consumers expect access to content anytime, anywhere, and on devices of their choice.

     

    Comcast is responding with our innovative X1 platform, and enabling access on a growing array of devices. Like other traditional TV distributors, online video distributors, networks, and sports leagues, Comcast is using apps to deliver its Xfinity service to popular customer-owned retail devices.

     

    These apps are wildly popular with consumers. Comcast customers alone have downloaded our apps more than 20 million times. This apps revolution is rapidly proliferating, and we are working with others in the industry and standards-setting bodies to expand apps to reach even more devices.

     

    Given these exciting, pro-consumer marketplace developments, it is perplexing that the FCC is now considering a proposal that would impose new government technology mandates on satellite and cable TV providers with the purported goal of promoting device options for consumers. 

     

    A little background here. Congress enacted “navigation device” legislation twenty years ago that directed the FCC to foster retail alternatives to cable set-top boxes. The FCC responded with a CableCARD mandate. Despite the cable industry’s longstanding and ongoing support for CableCARDs, consumers showed little interest in the technology; it saddled cable operators and their customers with over $1 billion in unnecessary costs; and, it was overtaken by the explosive growth in connected devices and apps. 

     

    It is strange now that the FCC is ignoring the important lesson of history that intrusive federal governmental regulatory interference in the market just doesn’t work by proposing new mandates at a time when Congress’s goals are being realized in the marketplace and consumers have unprecedented device choices that go well beyond what anyone could possibly have imagined even a decade ago. 

     

    The proposal would require traditional TV distributors like satellite and cable providers – but not other video distributors – to re-architect their networks and develop an undefined new piece of customer equipment just so device companies can take apart the video service and selectively reassemble it. 

     

    Consumer costs would rise, content security would weaken, and consumer protections such as privacy would erode. It would undermine intellectual property rights and content licensing agreements. The Chairman has said that his proposal addresses these concerns, but the simple fact is that the proposal strips away the tools that video distributors use to present service in a way that satisfies security, regulatory, and licensing requirements.

     

    As noted, the FCC’s track record on these types of technology mandates has been less than stellar. CableCARD is just one example. Another is the 1394 output mandate. The FCC required cable operators to include 1394 outputs on their set-top boxes, the mandate went on for years even after it was clear that other outputs had won out in the marketplace.

     

    Already, a broad range of parties is weighing in to support the innovation that is occurring in the marketplace and raising concerns including Disney, 21st Century Fox, NBCUniversal, and Viacom as well as small, independent, and diverse programmers like TV One, Fuse Media, Crossings TV , Revolt, and Baby First Americas; device manufacturers like Roku, Cisco, and ARRIS; diversity organizations such as the Hispanic Technology and Telecommunications Partnership (HTTP), a coalition of Hispanic organizations; and legislators, including 30 members of the Congressional Black Caucus and the National Black Caucus of State Legislators.

     

    As the Commission considers taking this initial step to launch a rulemaking proceeding to determine whether to impose new mandates and if so, what those should ultimately be, we look forward to studying the proposal and providing constructive input. We hope the FCC will decide to avoid this major step backward for consumers and video innovation. 

     

     

    (Disclaimer: The article has been sourced from Comcast’s website. The views expressed here are purely personal views of the author, who is Comcast Cable SVP – business and industry affairs and chief technology officer Mark Hess and Indiantelevision.com does not necessarily subscribe to them.)

  • FCC action could stifle TV innovation

    FCC action could stifle TV innovation

    On Wednesday, FCC chairman Tom Wheeler proposed a new technology mandate that would require satellite and cable TV providers to disaggregate or separate their services so that a few companies could repackage them as their own without negotiating for content rights like everybody else in the market does today. While the chairman touts consumer benefits to his proposal, the opposite is the case. 

     

    The proposal, like prior federal government technology mandates, would impose costs on consumers, adversely impact the creation of high-quality content, and chill innovation. It also flies in the face of the rapid changes that are occurring in the marketplace and benefitting consumers.

     

    As a member of the technical advisory committee that the FCC formed, I, along with others on the committee, put in an extraordinary amount of time examining these issues. The Report we produced comprehensively discussed the widely-adopted apps-based model. The chairman ignores the less regulatory apps-based approach that is already expanding the array of choices that consumers have to access content on retail devices.  

     

    In the 21st century, television has been on a tear of innovation. In the 1980s, wanting your MTV became an anthem. The 1990s saw an explosion of channels and diversity of voices on television, and the beginnings of HDTV. Change has been accelerating ever since. 

     

    Netflix now has more customers in the US than any traditional TV provider; tablets, smartphones, smart TVs, connected devices for accessing video are ubiquitous; and new online video services are announced all the time. There are services from online powerhouses like Amazon; from new entrants like Sony’s Play Station Vue and Dish’s Sling TV that sell packages including linear channels; and from programmers like HBO, Showtime, and CBS. Just this week, we’ve seen the influence of these new services in locking up content at Sundance.

     

    These changes are bringing enormous consumer benefits — the quantity and variety of high-quality programming is better than ever, and consumers expect access to content anytime, anywhere, and on devices of their choice.

     

    Comcast is responding with our innovative X1 platform, and enabling access on a growing array of devices. Like other traditional TV distributors, online video distributors, networks, and sports leagues, Comcast is using apps to deliver its Xfinity service to popular customer-owned retail devices.

     

    These apps are wildly popular with consumers. Comcast customers alone have downloaded our apps more than 20 million times. This apps revolution is rapidly proliferating, and we are working with others in the industry and standards-setting bodies to expand apps to reach even more devices.

     

    Given these exciting, pro-consumer marketplace developments, it is perplexing that the FCC is now considering a proposal that would impose new government technology mandates on satellite and cable TV providers with the purported goal of promoting device options for consumers. 

     

    A little background here. Congress enacted “navigation device” legislation twenty years ago that directed the FCC to foster retail alternatives to cable set-top boxes. The FCC responded with a CableCARD mandate. Despite the cable industry’s longstanding and ongoing support for CableCARDs, consumers showed little interest in the technology; it saddled cable operators and their customers with over $1 billion in unnecessary costs; and, it was overtaken by the explosive growth in connected devices and apps. 

     

    It is strange now that the FCC is ignoring the important lesson of history that intrusive federal governmental regulatory interference in the market just doesn’t work by proposing new mandates at a time when Congress’s goals are being realized in the marketplace and consumers have unprecedented device choices that go well beyond what anyone could possibly have imagined even a decade ago. 

     

    The proposal would require traditional TV distributors like satellite and cable providers – but not other video distributors – to re-architect their networks and develop an undefined new piece of customer equipment just so device companies can take apart the video service and selectively reassemble it. 

     

    Consumer costs would rise, content security would weaken, and consumer protections such as privacy would erode. It would undermine intellectual property rights and content licensing agreements. The Chairman has said that his proposal addresses these concerns, but the simple fact is that the proposal strips away the tools that video distributors use to present service in a way that satisfies security, regulatory, and licensing requirements.

     

    As noted, the FCC’s track record on these types of technology mandates has been less than stellar. CableCARD is just one example. Another is the 1394 output mandate. The FCC required cable operators to include 1394 outputs on their set-top boxes, the mandate went on for years even after it was clear that other outputs had won out in the marketplace.

     

    Already, a broad range of parties is weighing in to support the innovation that is occurring in the marketplace and raising concerns including Disney, 21st Century Fox, NBCUniversal, and Viacom as well as small, independent, and diverse programmers like TV One, Fuse Media, Crossings TV , Revolt, and Baby First Americas; device manufacturers like Roku, Cisco, and ARRIS; diversity organizations such as the Hispanic Technology and Telecommunications Partnership (HTTP), a coalition of Hispanic organizations; and legislators, including 30 members of the Congressional Black Caucus and the National Black Caucus of State Legislators.

     

    As the Commission considers taking this initial step to launch a rulemaking proceeding to determine whether to impose new mandates and if so, what those should ultimately be, we look forward to studying the proposal and providing constructive input. We hope the FCC will decide to avoid this major step backward for consumers and video innovation. 

     

     

    (Disclaimer: The article has been sourced from Comcast’s website. The views expressed here are purely personal views of the author, who is Comcast Cable SVP – business and industry affairs and chief technology officer Mark Hess and Indiantelevision.com does not necessarily subscribe to them.)

  • 21st Century Fox buys stake in smartglasses company ODG

    21st Century Fox buys stake in smartglasses company ODG

    MUMBAI: 21st Century Fox will be acquiring a minority stake in Osterhout Design Group (ODG), an augmented and virtual reality and smartglasses designer and manufacturer. 

     

    Pending the completion of final agreements, 21st Century Fox will become the principal outside investor in ODG. In addition, the two companies plan to enter into a strategic partnership that brings together ODG’s technologies with 21st Century Fox’s content and storytelling. 

     

    ODG is further cementing its leadership in the Smartglasses arena as it moves into immersive experiences for entertainment with the introduction of its high-definition, cinema-wide field of view technology which it is demonstrating at CES 2016.

     

    “The power of virtual and augmented reality enables us to deliver on our longstanding commitment to bring audiences exciting new creative experiences fuelled by next generation technologies,” said 20th Century Fox Film chairman and CEO Jim Gianopulos. “Our agreement with ODG underscores the innovation we are bringing to market through our Fox Innovation Lab, most recently with VR experiences for The Martian and Wild. We look forward to partnering with ODG and serving as its lead outside investor as the ODG team pushes the film experience into the future with its high-definition, cinema-wide field of view technology.” 

     

    “We’re excited to have 21st Century Fox join our family and help extend our considerable leadership in AR head-worn computing. This space is ultimately heading towards widespread consumer adoption and by having 21st Century Fox onboard, we’ll be able to deliver immersive and interactive entertainment experiences that transform how users consume content,” said ODG CEO Ralph Osterhout.

     

    ODG’s current smartglasses, the R-7, feature ultra-transparent 3D stereoscopic displays and offer innovative technologies in a small, light and sleek design. The R-7 requires no external computing and delivers a quality user experience of display clarity, on-board processing power and system accuracy. 

  • ‘We have never got the cable television pay model right’: Ronnie Screwvala

    ‘We have never got the cable television pay model right’: Ronnie Screwvala

    Despite having a negative connotation more often than not, “disruption” can be a good thing, especially when it’s planned and executed in a strategic manner. And if there’s one person who is known for good disruption time and again in the Indian media and entertainment industry, it’s Rohinton Soli Screwvala or Ronnie, as he is popularly known as.

    With a quest to grow and excel in whatever he undertakes, Screwvala belongs to the rare breed of first generation media entrepreneurs in India. For him, trying is not enough for he believes in achieving all his dreams as he dreams with his eyes open!

    The pioneer of cable television in India, Screwvala has been best known to build brands and enter untapped territories. From a humble beginning in the cable industry, erecting one of India’s well known media company UTV, grabbing The Walt Disney Company’s attention, foraying into Kabbadi – a sport that was never televised robustly to breaking even in the second year, Screwvala has always pushed the boundaries.

    Complacency and failure are two words that don’t exist in his dictionary. In a country where entrepreneurship means legacy business, Screwvala is the flag bearer for first generation entrepreneurs.

    In a conversation with Indiantelevision.com’s Anirban Roy Choudhury, Screwvala goes back in time and shares his views on the Indian cable TV industry, Disney, sports and more.

    Read on for more :-

    The Disney – UTV deal is touted as a landmark deal in the Indian broadcast space. How does it feel when you look back at it today?

    I feel very proud when I look back at Disney India. We have a phenomenal team, which is doing an incredible job across the board. The channel is doing well and the movie studio is doing fantastic. The live show Beauty and the Beast has given live experiences in India a new benchmark. The best part is that they did it with local talent. It was not some imported show that travelled in here and went away.

    So it’s an incredible job done by the Disney team in India and I am proud of them. The easiest thing would have been to get a travelling show in, but they took the difficult route with local talent so it’s a local Disney show. The Disney team makes me feel proud.

     

    As a pioneer of cable television in India, you played a pivotal role in building it from scratch. What is your view on the evolution?

    When I look at cable, I have to say I have a little bit of regret because we are the only country in the world where we have to explain what cable TV is!

    The concept of local cable operator (LCO), multi system operator (MSO) is not there anywhere in the world other than India. A cable operator means that you need to pay for content. There are cable operators who are actually aggregators of channel. We have never got the pay model right! It started because nobody wanted to pay. Then there was a whole decade of under-declaration and nobody made capital investment.

    There are two things: Firstly, after 25 years of cable we are still not paying for content and secondly, serious investments have not gone into cable. You need billions of dollars……. we are still using the same cable that we were using 25 years back. We are still using the same model that we were using 20 years back. Yes, there have been some improvements, but we cannot call it cable TV. We are not cable TV like the world understands cable TV and that’s my problem.

    On the flip side, I must say it’s an incredible cottage industry. Look at the number of jobs it has created! It’s such a gigantic industry and for that matter if it was not the way it flourished, TV might not have been that popular the way it is. People could still be watching terrestrial TV and there would have been no satellite programming. So the fact that it has spread because of its entrepreneur spirit is a proud moment.

    I am proud of the entrepreneur spirit that has gone in there. However, I am regretful because no serious investment has been made there and we could not manage to get the pay model right.

    Speaking about the pay model, are we getting it right in digital? We are providing content for free and hence making free content consumption a behaviour.

    Let’s be very clear… people think online is free, but we are not doing anything for free. The first entrepreneurship course that we are launching is for Rs 50,000 for three months. Yes, people are skeptical to pay but that’s the way forward.

    The problem with the digital platform is that the biggest player in the ecosystem – YouTube is for free. That becomes habit forming. Things will change on digital once we go to experiential viewing. There has to be something for you other than just watching… I don’t have any idea what that is but we are trying very very hard to figure it out.

    I think the digital paid space will be experiential where you are not paying for watching but for watching plus plus… We are trying to figure out what those plusses are.

    Do we have a content strategy ready for digital? People still consider it to be a platform for 2 to 3 minutes video consumption.

    You will be shocked to hear that since last year, people are watching 30 to 40 minutes of content online even while everyone thought that digital means two to three minutes. 

    There are more people now watching 20 to 30 minutes of content online compared to the ones watching two – three minutes. What’s more, people have been also heard saying that the smaller duration content is snaky. That habit is changing because there are increased offerings. You give people quality content, they will consume it.

    Quality of content and storytelling in digital is changing. People are ready to watch a full movie on digital but they cannot now because of the bandwidth issue. So content size is not an issue, it’s the quality that matters.

    Talking about films on digital, Netflix recently simulcast The Beasts of No Nations. What’s your take on Netflix and what is the revenue model that Indian players should follow?

    Today Netflix’s market cap is as much as 21st Century Fox’s, it is as big as Time Warner and higher than Viacom… with the sole exception of Disney, which is the largest media company in the world.

    The road ahead for digital has to be ad revenue. We cannot fool ourselves on that. But the frustrating part is that we are dealing with people who do not understand digital. So the problem is that when you start a new digital medium, the main constituent – the advertisers – do not understand it at all. They still think it’s niche. They just don’t get it that today movies can be launched on digital.

    There are huge advantages of the platform. Sorry to generalise on the advertisers but the fact is that they do not understand digital and it’s going to take them three to four years to understand it. The big challenge is that while digital players will rely on advertisers, there will be no one available to experiment. So players will have to experiment, prove and only then will advertisers come on board.

    Are you saying that the next few years will be very tough for digital players?

    It will be tough, but it will be tough in a good way. It won’t be scary tough. Only serious players in the ecosystem will stay. The others that are coming with a herd mentality, the MCN players etc… I have no idea what they are up to.

    You cannot wake up to 20 different channels. What is the need? What is the model? Where will it go? What will happen to it? And the worst part is, you got investors backing those models. I fail to understand what they are up to. But yes, serious players who want to be in the ecosystem for good will be there.

    After your successful stint with Kabaddi, are you eyeing any other sport?

    We are investing in football. We are doing global grass root training programmes but it’s not the training that everyone is doing here. The training that we are giving is very different wherein we will take 60 kids to Germany for six years of training.

    Since the cost of something like this is very high, the expenses will be shared by us and the candidates. The will pay for the lodging and boarding, whereas we will pay for the training. We will manage their careers for the next 10 years. The age group that we are looking at is under 12, under 14, and under 16. We have to catch them really young and that’s the challenge.

    There are people who do three months training and summer courses, but you cannot become football stars by that. In our initiative, the kids will have to be away from home for six years. The peer pressure to meet global standards, the environment, discipline and the commitment is what we plan to offer them.

    So is this a business proposition of USports or are you doing this to uplift the sport?

    (Laughs). Of course it is a business proposition! Swades is the only social initiative that I am in for non-profit. Everything else is pure business. I think we are in the process of developing 300 future football stars. Then we will manage their careers for 10 years, that’s our business model.

    What is the progress of your motor-sport innovation?

    My motor-sport venture is an attempt to start a destination sport in India involving two-wheelers. Lakshadweep, Daman and Diu, Leh and Ladakh and Puducherry are the locations that we have in mind. The infrastructure has to step up to it, and the most important part is not the track but safety.

    This year India will be number one in terms of bike consumption, larger than China. The two-wheeler population is massive in India. Therefore, sports is an interesting way to go forward with that. But to us, the most important part is safety. It’s not a rally that we are planning so we cannot do it on a muddy paddy field. The infrastructure will take time to grow. There will be one domestic team and one international. The domestic riders will go abroad and train for six months.

    How much more time do you think it will take to match the quality you need? Are there any other investors involved?

    I would have liked to start it in next six months but the safety level that we are targeting will take at least 18 months more.

    I am doing it on my own and there is no partner involved to start the league. Here, we are going to be a league owner and our partners will be the ones we sell our franchises to.

    You have entered into online education with UpGrad. What are your plans with the venture?

    UpGrad is in the education space for post-grads. We are eyeing 14 to 16 completely different online courses, which will all be post-grad and specialised courses.

    We kicked off on 25 November with our entrepreneurship course. UpGrad received 2000 applications and then eventually we shortlisted 600 participants for the first cohort that started on 25 November. This would be the first time someone is doing a course of such high scale on entrepreneurship. The number that we roped in is huge. For every hundred students, there will be a teacher associate, who will interact with them at regular intervals. There will be a continuous process of mentorship. The course on entrepreneurship is of three months. After that the next one on Big Data will be of nine months to a year. We are launching three new courses, which will be out between March and May.

     

    You recently wrote a book and that inspired many igniting minds. Are you planning a second one too?

    I am not an author for sure! A book takes a lot of effort, I am happy being a business man. I am not even thinking about one more book at this stage.

     

     

     

     

    What are your plans with Swades? How much do you invest in it both in terms of money and time?

    Swades to me is not an investment. We are putting our heart and soul in it. Zarina, my wife, is working full time for that. We are not cutting cheques. Philanthropy is when you cut a few cheques and give it to an NGO. We are building a foundation from ground up. Yes, we are putting our own money but we are also putting our sweat and toil. We have 1200 people working for Swades, which is also quite big. It is a life-long commitment for us and there is no running away from it.

     

     

    You are too much of a TV person to not be in TV. When are you going back? What’s next?

    I don’t feel I am being left alone. Look at the things we are doing with Football, UpGrad and with Kabaddi. If because of Filmfare, five people used to come for selfies, now at least 50 of them come because of Kabaddi. It’s the same in rural areas too. When we travel for Swades related work, we get to know the popularity and the craze of the sport.

    I am happy with what we are doing and have no plans of going back. Swades is a key focus for me and Zarina both and we will continue to do what we are doing.

  • National Geographic Partners announces new senior leadership appointments

    National Geographic Partners announces new senior leadership appointments

    MUMBAI: Upon completing the transaction to form National Geographic Partners (NGP), CEO Declan Moore announced a series of new appointments, thereby choosing the core leadership positions. National Geographic Partners combines the National Geographic television channels and National Geographic’s other media and consumer-oriented assets.

    “We are thrilled to bring these incredibly talented executives to the senior leadership team”, Moore informed, after 21st Century Fox and National Geographic Society made the formation of National Geographic Partners public.

    “We’re excited to officially begin our journey to bring a new and integrated National Geographic experience to people worldwide, and I look forward to partnering with Ward Platt and working with Susan Goldberg, Courteney Monroe and Jeffrey Schneider to share the National Geographic mission with an even larger audience,” added Moore..

    Fox International Channels (FIC) COO and CEO of National Geographic Channels International CEO Ward Platt will assume the new post of National Geographic Partners COO. He will partner with Moore to drive the global revenue of the entire portfolio of National Geographic Partners’ businesses, including channels distribution, advertising revenue, digital publishing, licensing, travel and consumer products. Platt will also have oversight of the new venture’s international operations.

    National Geographic magazine editor in chief Susan Goldberg has been vested with additional responsibilities as an editorial director who will supervise the publishing activities under the new venture, including digital journalism, magazines, books, maps, children and family, travel and adventure.

    The current National Geographic Channels US CEO Courteney Monroe, will serve as CEO of National Geographic Global Networks, overseeing global programming, operations and global marketing for the portfolio of National Geographic Channels around the world, including National Geographic Channel, Nat Geo WILD, Nat Geo People and Nat Geo MUNDO. Additionally, Monroe will oversee National Geographic Studios, the in-house television production studio previously part of National Geographic Ventures

    This expanded role will see Monroe working  closely with Fox Networks Group chairman and CEO Peter Rice, with an aim to position National Geographic Channels as a global leader in premium science, adventure and exploration programming.

    The current National Geographic Channels business and legal affairs EVP, Jeffrey Schneider, has been appointed National Geographic Partners business legal and affairs EVP, overseeing the legal dealings associated with the new venture.

    While these form the key leadership positions, further new appointments are expected follow says NGP.

  • 21st Century Fox sees growth in cable & television; film segment disappoints

    21st Century Fox sees growth in cable & television; film segment disappoints

    MUMBAI: Twenty-First Century Fox, Inc. (21st Century Fox) reported total quarterly revenues of $6.08 billion in the quarter ended 30 September, 2015, which is a decrease of $406 million, or six per cent from the $6.48 billion of adjusted revenues reported in the prior year.

     

    This decline in adjusted revenues was primarily the result of a seven per cent revenue increase at the Cable Network Programming segment due to higher affiliate and advertising revenues being more than offset by lower revenues generated at the Filmed Entertainment segment due to lower theatrical revenues and the absence of revenues from Shine in the current quarter.

     

    The adverse impact of foreign exchange rates and the absence of revenues from Shine in the current quarter each impacted adjusted revenue growth by approximately $200 million, or six per cent in total.

     

    Quarterly total segment operating income before depreciation and amortization (OIBDA) of $1.54 billion decreased $37 million, or two per cent, from the $1.57 billion of adjusted OIBDA reported in the prior year. This decline in adjusted OIBDA reflects double-digit growth at both the company’s Cable Network Programming and Television segments, which was more than offset by reduced contributions from the Filmed Entertainment segment. The adverse impact of foreign exchange rates impacted adjusted OIBDA growth by $109 million, or seven per cent.

     

    The company reported quarterly income from continuing operations attributable to stockholders of $678 million ($0.34 per share), compared with $1.04 billion ($0.48 per share) in the prior year.

     

    Excluding the net income effects of Other, net and gains and other adjustments related to Sky and Endemol Shine Group included in Equity earnings from affiliates, adjusted quarterly earnings per share from continuing operations attributable to stockholders was $0.38 compared with the adjusted year-ago result of $0.39.

     

    Commenting on the results, 21st Century Fox executive chairman Rupert Murdoch said, “Our cable networks business generated strong growth in the first fiscal quarter, delivering double-digit earnings gains both domestically and internationally on sustained increases in overall affiliate fees, higher advertising revenues and lower expenses. Our quarterly results also reflect the expected impact of challenging comparisons for our film studio due to the timing of key releases, as well as the poor performance of The Fantastic Four. We are pleased with the recent success of The Martian, and as we look forward, we have an exciting film slate, which includes this weekend’s The Peanuts Movie, the holiday release of Joy, as well as the summer releases of the newest X-Men and Independence Day. Good progress is being made at the Fox Network both from our returning series, including the continued success of Empire, as well as some of our new series. We are focused on creating compelling storytelling and enhancing the customer experience of our digital video brands as we respond to changing consumer preferences.”

     

    CABLE NETWORK PROGRAMMING

     

    Cable Network Programming quarterly segment OIBDA increased 26 per cent to $1.31 billion, driven by a seven per cent revenue increase on strong affiliate revenue growth and higher advertising revenues combined with lower expenses. The two per cent decline in expenses was primarily due to the absence of the prior year broadcast of the India vs. England cricket series at Star Sports. Foreign exchange fluctuations, primarily in Latin America and Europe, adversely impacted segment OIBDA growth by five per cent.

     

    Domestic affiliate revenue increased 11 per cent reflecting strong growth at FS1 and sustained growth across all of the other domestic cable networks. Domestic advertising revenue grew four per cent over the prior year period reflecting solid growth at the sports channels and Fox News. Domestic OIBDA contributions increased 19 per cent over the prior year led by higher contributions from FS1, FX Networks and Fox News.

     

    International affiliate revenue decreased one per cent as 11 per cent local currency growth at Star and the Fox International Channels (FIC) was more than offset by a 12 per cent adverse impact from the strengthened US dollar.

     

    International advertising revenue decreased one per cent as continued local currency growth at FIC and the Star entertainment channels was offset by an 11 per cent adverse impact from the strengthened US dollar as well as the absence of advertising revenues from the prior year broadcast of the India vs. England cricket series at Star Sports. Quarterly OIBDA at the international cable channels increased 53 per cent reflecting strong local currency growth partially offset by the adverse impact of the strengthened US dollar.

     

    TELEVISION

     

    Television generated quarterly segment OIBDA of $196 million, a $22 million or 13 per cent increase over the $174 million reported in the prior year quarter. The increase in segment OIBDA was driven by lower operating costs led by lower programming expenses at the Fox Broadcast Network and TV stations partially offset by higher marketing costs at the Fox Broadcast Network. Quarterly segment revenues were consistent with those from the corresponding period in the prior year as strong retransmission consent revenue growth was counterbalanced by a five per cent decline in advertising revenues primarily reflecting the expected impact of one less week of National Football League broadcasts in the current quarter as compared to the prior year quarter and lower political revenues at the TV stations, as well as lower general entertainment ratings at the Fox Broadcast Network.

     

    FILMED ENTERTAINMENT

     

    Filmed Entertainment generated quarterly segment OIBDA of $149 million, a $309 million decrease from the $458 million reported in the same period a year-ago. 

     

    Quarterly segment revenues decreased $691 million to$1.79 billion,primarily reflecting lower worldwide theatrical revenues, the absence of revenue contributions from Shine, lower syndication revenues reflecting the sale of How I Met Your Mother in the prior year and the adverse impact of the strengthened US dollar. The OIBDA decline over the prior year reflects lower contributions from the film studio attributable to the difficult comparisons to last year’s successful worldwide theatrical performance of Dawn of the Planet of the Apes and the home entertainment performance of Rio 2 with this year’s worldwide theatrical release of The Fantastic Four in August as well as higher theatrical pre-release costs in the current year primarily related to the successful worldwide theatrical release of The Martian in early October, which has grossed over $430 million in worldwide box office to date. Segment OIBDA comparisons were also adversely impacted by lower contributions from the television production businesses and a negative comparative 11 per cent impact from foreign exchange rate fluctuations.

  • Zee’s Subhash Chandra plans succession; names Amit Goenka as head – international biz

    Zee’s Subhash Chandra plans succession; names Amit Goenka as head – international biz

    MUMBAI: In a bid to steer to company towards the future, Zee Entertainment Enterprises Ltd’s (Zeel) Next Gen is stepping into pivotal roles. While Zeel chairman Subhash Chandra had pulled in his elder son Puneet Goenka into the firm a decade ago, he is now shoring up the senior management by bringing in his younger son Amit Goenka as CEO of Zeel’s international broadcasting business.

     

    Even as Puneet has steered Zeel to greater heights as its managing director and CEO, Amit, who was earlier the non executive chairman of the company, has been entrusted with the responsibility to provide clear focus to the company’s international operations. 

     

    To this effect, Zeel is reorganising its overseas broadcasting operations of all international channels, excluding sports, English channels and uplinking activities, under a wholly owned subsidiary of its company Asia Today Ltd (ATL). Currently, these operations are housed under Zeel’s overseas subsidiaries ATL, Mauritius (being renamed as ATL Media Ltd) and Zee Multimedia Worldwide (Mauritius) Ltd and their respective subsidiaries.

     

    Additionally, Zeel has also got board approval to write-off of an investment of GBP 3.25 million (equivalent to Rs. 33.06 crore) made by ATL, in 2013 for acquiring a minority stake in MirriAD Ltd., UK. This write-off was on account of continuing losses and consequent capital reduction and restructuring in the latter.

     

    “Bringing in Amit is a good move by Chandra as he has successfully been working behind the scenes at the Essel Group on innovations and business development despite heading Playwin as its CEO. He has a good deal of experience under his belt, which should help Zeel achieve Chandra’s global vision for Zee,” says a media observer. “It’s good succession planning by the savvy mediapreneur. And it’s quite akin to what his former partner Rupert Murdoch has done in recent times by bringing in his elder son Lachlan in a non-executive capacity as News Corp co-chairman and 21st Century Fox. His younger son James has been running 21st Century Fox as its CEO much earlier.”

     

    A techie at heart, Amit has more than 10 years experience and is the CEO of Pan India, which runs the online lottery business under the Playwin brand. Some of the other projects where he is involved are ITZ Cash, animation division, wireless mobility, 7575 short code business, Digital Media Convergence Limited, Mumbai Football Club, All Sports Bar and All Sports Magazine amongst others. Amit has also worked with Zee Telefilms and was closely associated with the group’s investment and restructuring of the ICO project, a global mobile telephony project during his early days.

     

    Additionally, Zeel executive vice chairman Subodh Kumar has resigned from his post with immediate effect. He will, however, continue as a non-executive director on the Board of the company.