Tag: Fox

  • James Murdoch resigns from News Corp board

    James Murdoch resigns from News Corp board

    MUMBAI: Truly, a saga has come to an end. James Murdoch once considered to be the successor to Rupert Murdoch has resigned from the News Corp board yesterday. James, who helped his father build his Asian empire under Star TV and later at 20th Century Fox and then Fox, was associated with his father’s businesses for more than 20 years.

    The reason for his resignation according to a filing by the company with the US regulators: “My resignation is due to disagreements over certain editorial content published by the Company’s news outlets and certain other strategic decisions.”

    Rupert and James’ elder brother Lachlan accepted his resignation saying: We’re grateful to James for his many years of service to the company. We wish him the very best in his future endeavours.”

    James’ departure brings to the forefront the differences that have arisen between him and Lachlan and Rupert. Rupert has been a pretty strong supporter of Donald Trump and has conservative views, while James has Democrat leanings and has been rooting for Joe Biden through donations.

    This apart, the newspapers under News Corp have been pretty blasé in their coverage of the Australian wildfires, something that has irked James and he and his wife Kathryn have protested against the media conglomerate’s stance on climate change.

    James was CEO Twenty First Century Fox before its entertainment assets were sold to Disney a couple of years ago.

    News Corp owns publications such as Wall Street Journal, The Times, The Sun and The Sunday Times in the UK, as well as a stable of Australian newspapers, including The Australian, The Daily Telegraph and The Herald Sun.

    Raj Nayak who worked with him at Star TV tweeted that he has fond memories of working with him during his tenure there. “A fabulous human being & a wonderful boss,” he added.

    Former Hathway Cable CEO K Jayaram said he had a tough time on the board with James during his tenure as he could not achieve his numbers. “But he was good at heart,” he concluded.

  • The journey of Star India’s Uday Shankar through his eyes

    The journey of Star India’s Uday Shankar through his eyes

    MUMBAI: He came. He spoke. They listened. He conquered.  That, in summation, defines how the Walt Disney Company Asia Pacific president, and Star & Disney India chairman Uday Shankar’s tryst with members and invitees of the Advertising Agencies Association of India’s Subhas Ghosal Memorial lecture “Why I have been in Media for 30 years” on 11 October 2019 went. The audience – consisting of a slew of senior advertising and marketing professionals – listened in awe, smiled, laughed throughout the Shankarspeak, which commenced around 9:30 pm in the Four Seasons Hotel in Worli, Mumbai. He spoke extempore, no teleprompters in sight, and his speech was fluency at its best, delivered with the confidence of a professional who knows what he has achieved and what he is setting out to achieve.

    Throughout his 34-minute speech, Uday constantly referred to the risks he has taken during his entire career. Like the time when he was grappling with being called upon by the Murdochs to head Star India as CEO and he asked his family whether he was taking a chance as he had had no exposure to entertainment or business having been a news man all of his life. To which his daughter quipped: “What risk? If anything, weren’t the Murdochs the ones who were taking the risk?”

    He went on to join the organisation, and the rest, of course, is history. Uday spoke about the time when – on being urged by his wife – he chucked his secure job at the publication Down to Earth and relied on his wife’s income for six months before securing a lower paying position at Zee TV. “I took a 50 per cent pay cut,” he revealed. “But I so wanted to do news television that I was willing to go that distance.”

    Uday then revealed how he switched to the Star Network when he was called upon by the Murdochs to clean up the mess that was Star News from his comfortable position at Aroon Purie’s Aaj Tak.

    “On the face of it, it was a bad career move,” he revealed. “Star News was as messed as it could ever be. All the success and equity I had created for myself at Aaj Tak and before was at risk. The sensible course was to run for my life. But instead I dived headlong into it and doubled down. Within a month I was both editor and CEO. Everyone thought I was going to break all records of disastrous stints as a media CEO. I knew nothing about running a business. But as a journalist I had learned one thing: when you do not know something, you go to people who understand it better than you. That’s what I did. I focused on bringing in good talent and content. And slowly the tide turned. Star News went from bottom to the top of the pile.”

    That’s when the Mudrochs spotted him as a potential leader of Star India. While at Star News he, at least, had command over news content, he did not have any experience of entertainment when he walked into Star India. There was an exodus in the organisation as two top-notch executives had left to launch their own channels, taking experienced professionals with them. He once again relied on his journalistic instinct which told him that a crisis could be tremendous opportunity.

    Once there, he concentrated on playing the long form of the game of cricket – test match vs the IPL, Uday revealed. His first focus was on hiring good talent. Deciding to discount experience, he emphasised on intelligence and youthfulness and irreverance. The leadership under him did not have previous media experience unleashing a really powerful force in the company. Simultaneously, he focused on getting rid of the slacker culture in Star.

    He then went about chipping away at edifices that had made Star Plus a success until then. He dropped all Ekta Kapoor and Balaji shows and dropped the successful Kaun Banega Crorepati and called in new producers to churn out differentiated content like Satyameva Jayate hosted by Aamir Khan to the annoyance of established ones. “Everyone thought we were crazy. Who would put a show like that on entertainment television on Sunday? It was a great decision. It made an impact on society. And it had an even bigger impact on the thinking at Star. Everyone thought that it was going to be my nemesis. But I survived Satyamev Jayate,” he highlighted.

    “We are in the business of content. It may surprise you to know how few companies have content at their core. The biggest contribution I have made at Star is that I have tried to push content closer and closer to the centre of the core so much so that the core of Star today is content,” he further explained.

    “If no one believes that it can be done, we will take a shot at it. This is a culture we have built at Star,” he says.

    The greater risk taken by Uday was the decision to take Star into sports – the graveyard of many media companies. He was not satisfied with the ICC rights, BCCI rights but acquired the IPL rights at aggressive prices as well. “No other media company invested in cricket like Star India did. In contrast to other networks which usually have commentaries in one or two languages, Star expanded it in seven languages which paid off as 86 per cent of their cricket sports viewership come from languages, only 14 per cent comes from English.”

    He spoke about Star’s move towards promoting kabaddi as a sport, wherein everyone thought his goose was cooked. “A friend told me the Murdochs had trusted me too much and that the company had too much money. With the best of intentions, he cautioned that both of these are going to end very badly,” said Uday. “However, we are making some money and I have kept my job. Our sports business is a work in progress as is the sports consciousness in this country. We are slowly building one of the most exciting franchises in the world.”

    Uday then went on the speak about Star’s next  foray with Hotstar wherein he launched the app in a data-dark market where the mobile handset was a device for talking. What gave him the confidence was India’s surprising ability to leapfrog. Once again, he hired the best talent.  He spoke about the risk he took during the Hotstar launch campaign, which ran across the Star network saying “TV is passe. Get over TV. Get Hotstar.”

    He further revealed:  “When we were launching Hotstar, a very senior executive at one of the global tech and video giants warned us that if you try, you will lose a lot of money, effort and time and then you will come begging to us to host your content on our platform. He said that we would still be kind to you. Now, it seems they can’t tire of hiring my talent. Not just one company that is hiring our talent as if it is going out of supply but every media and tech company that’s active in India seems to have one destination to pick up talent  –  Star India. I would make a lot more money if I ran a talent agency. It is annoying but it is also a tribute to our incredibly talented team that’s even more audacious than it is talented. A team that is committed to changing Indian media and content – making a difference to the lives of people. That’s why I am in media for 30 years. And it feels like I am just getting started. Over the years, we have become change agents for India. At Star, we don’t just believe in a better India, we believe in our duty to participate and shape that India. Of course, when a company like Walt Disney values and embraces the businesses we have built, it is extremely gratifying.”

  • Star India rev growth offset by incremental rights expense, weakness in ad rev: Disney management

    Star India rev growth offset by incremental rights expense, weakness in ad rev: Disney management

    MUMBAI: The purchase of 21st Century Fox, which was aimed at helping Walt Disney Company's future plans, is causing initial pain to the Bob Iger-led media conglomerate. In its fiscal third quarter result for 2019, Disney missed earnings expectations partly because of the worse-than-expected performance of Fox assets. Star India, the newly acquired premium property of Disney after the completion of the merger, was not able to live up to expectations.

    “We estimate Star generated about $150 million of operating income in the third quarter last year. Star's results this quarter came in well below our expectations and were driven primarily by a meaningful step-up in rights cost for the quadrennial Cricket World Cup and the Indian Premier League as revenue growth was more than offset by the incremental rights expense,” Disney Senior EVP and CFO Christine McCarthy said.

    Despite the initial challenges, Disney CEO Bob Iger highlighted the benefits of the deal such as the addition of Star and Hotstar to the Disney portfolio giving a significant presence in India. He added that it is a huge market with interesting dynamics notably, a rapidly rising middle class with a strong and growing appetite for media, especially sports. He also noted that Hotstar’s broad array of premium sports rights will serve it well over the next five years especially as it expands the service into markets across Southeast Asia.

    “It was the quadrennial Cricket World Cup, of course. They have their Indian Premier League, which is ongoing, but this is once every four years for the World Cup. There were a couple of significant games that were rained out. They have insurance coverage for some of those, but any proceeds would be in future periods. And there was also some weakness in advertising revenue that was related to the local advertising market,” Iger commented on Star’s performance in India.

    Disney also continued to spend big on streaming services such as Disney+, ESPN+, the platforms where it sees its future. Moreover, the firm also took full operational control of streaming platform Hulu, which further affected the balance sheet.

    Disney’s earnings per share (EPS) for the quarter decreased 28 per cent to $1.35 from $1.87 in the prior-year quarter where it was expected $1.74 by the analysts. Total revenue stood at $20.2 billion against the consensus estimate for $21.4 billion.

  • Disney-Fox merger sees more layoffs: Report

    Disney-Fox merger sees more layoffs: Report

    MUMBAI: The Walt Disney Studios (Disney) 21st Century Fox (Fox) merger continues to cost jobs with another round of layoffs this week. A large number of employees have been laid off from both sides. Since Disney completed its $71.3 billion acquisition of much of Fox, nearly 250 people have exited so far.

    A report from Variety revealed that the latest round of layoff comes in the backdrop of analysts’ prediction of more than 1000 jobs being eliminated due to the merger. According to the report, the latest episode has mainly impacted the production and visual effects departments.

    Visual effects head  John Kilkenny, feature production executive VP Fred Baron, physical production executive VP Dana Belcastro and post-production executive VP Fred Chandler are among the executives who have received pink slips on the Fox side. Those roles reported to Fox film production vice chairman and president Emma Watts prior to the acquisition. Although Disney has enacted three previous rounds of layoffs mostly impacting Fox staffers, severance packages have been generous.

    Disney also informed its staffs that it would shut Fox Research Library on or before 6 January 2020. Fox Library’s content would be integrated into Disney’s own archives. While the teams at the Walt Disney Archives (founded 1970) and the Imagineering Research Library will be evaluating and handling the collection, it is not clear yet if the library’s archivists will also be laid off.

  • Disney formally closes deal with Fox, massive layoffs expected

    Disney formally closes deal with Fox, massive layoffs expected

    MUMBAI: Walt Disney Co (Disney) has finally closed the deal with on its $71 billion acquisition of 21st Century Fox (Fox). In recent months, the acquisition received final approval from antitrust regulators across the globe. This merger will lead to thousands being fired, industry experts as well as several media reports speculate.

    With the deal, Disney is taking over majority of Fox’s assets including 20th Century Fox studio, the FX and National Geographic cable networks, and an additional 30 percent of Hulu. The giant media conglomerate thinks the deal will help it increase its international footprint along with expanding its direct-to-consumer offerings.

    “This is an extraordinary and historic moment for us — one that will create significant long-term value for our company and our shareholders,” Disney CEO Bob Iger said in a press release. “Combining Disney’s and 21st Century Fox’s wealth of creative content and proven talent creates the preeminent global entertainment company, well positioned to lead in an incredibly dynamic and transformative era,” he added.

    Bob Iger promised $2 billion in cost savings which clearly indicates to epic job cuts. While Disney is taking on 15,400 Fox employees, the smaller new Fox Corp will keep about 7,000. The layoffs are expected to come down heavily on domestic market first. “You can anticipate more domestic at the front end, just because of regulatory issues outside of the US,” Disney chief financial officer Christine McCarthy said earlier as quoted by Bloomberg.  The number of cuts could reach up to 4000, maybe even higher than that. Most of the jobs that are expected to be hit by the acquisition are duplicate ones.

    To take on this bet, Disney has to sell 22 regional sports networks in the US and its sports networks in Brazil and Mexico as part of regulatory approvals. The company also agreed to sell its stakes in such networks as Lifetime and History in Europe.

    Although the Fox deal will help Disney in its direct to consumer business, the cost of launching Disney+ is expected to impact the company’s financials next year.  A study from the research firm Ampere Analysis suggested that Comcast, after the acquisition of European pay TV giant Sky, and Walt Disney, after its Fox deal, will dominate global content spending.

  • Disney eyes 10% stake in Hulu

    Disney eyes 10% stake in Hulu

    MUMBAI: The Walt Disney Company wants to have a grip on the US streaming service Hulu. According to reports, Disney is in active discussions with AT&T to acquire the 10 per cent stake that WarnerMedia owns in the streaming platform.

    Disney holds 30 per cent stake in the WarnerMedia Company, combined with another 30 per cent deal with Fox which is finalied and if it succeeds in convincing AT&T, Disney will own 70 per cent of Hulu.

    According to the reports that originated in Variety, Disney’s intentions are to keep Hulu as an adult-oriented, general entertainment hub, while its forthcoming Disney+ SVoD service will complement it as a family-friendly platform. Disney would also likely seek to expand Hulu into international markets.

    NBCUniversal's CEO Steve Burke revealed back in January that Disney also wanted to buy the 30 percent stake the media conglomerate owns, but the company wasn't looking to sell. Disney's offer for AT&T's portion won't fall on deaf ears, though: AT&T has been thinking of selling WarnerMedia's portion to prepare for its own streaming service's launch later this year. 

  • Uday Shankar’s meteoric rise from Star India to Disney APAC

    Uday Shankar’s meteoric rise from Star India to Disney APAC

    MUMBAI: The man running India's largest media company – Star India-  has made it to the top in the Asia Pacific region at probably the world’s most admired entertainment company – Disney. Uday Shankar, who once was a reporter with The Times of India, and then went on to successfully lead news channels such as Aaj Tak and Star News, on Thursday added another glorious chapter to his awe-inspiring journey.

    Late in the evening of 13 December came the announcement that Uday – as he is referred to – would be taking over as chairman of Star and Disney India and president of the Walt Disney Company Asia Pacific.

    Ever since the acquisition of Fox was announced by Disney, many expected Uday  – the blue-eyed boy of the Murdoch family – to get the corner office in the new entity. Doubting Thomases wondered whether the Mouse House would allow an entrepreneurial executive to steer its fortunes in Asia, let alone India.

    Uday has, by sheer dint of his risk-taking ability and innate knowledge of how Indian consumers watch television, transformed the Star Network from a struggling channel  (which was under attack from a slew of old and new players) into India’s largest TV network serving viewers entertainment in many languages as well as delivering India’s top passion, cricket, on its sports channels and its OTT service Hotstar.

    As much as Uday believes in a free culture which encourages entrepreneurialism thanks to his previous direct bosses Rupert and James Murdoch, Disney believes in extreme systems and processes which is a positive for most companies but that has not worked as well as far as its India operations are concerned. Star India overpowers Disney India by multiples in revenue terms.

    Under the new structure, the 55-year-old has a phalanx of old-time Disney executives reporting into him. Among these: Greater China, Japan, and Korea executive vice president & managing director Luke Kang;  Australia and New Zealand managing director Kylie Watson-Wheeler,  and  Middle East senior vice president and managing director Chafic Najia.

    That he has chosen Uday over old Disney timers is a clear sign of the confidence that the Disney direct to consumer and international segment’s chairman Kevin Mayer has reposed in him; that he is the man who will do the job and give him a free hand to help shape the Disney-Fox-Star combine into an even bigger money making machine that it can be in the region.

    On Uday’s shoulders rests the responsibility of steering Disney – and Star India – to entertain more than half the world’s population – the middle east, APAC, and China account for about 4 billion people. And an estimated $10 billion-plus in revenues for The Walt Disney Co.

    It probably is the highest an Indian executive has risen in a global entertainment company. He has his challenges ahead: a merger always means some amount of chop and change and he has to manage that first mainly in India because of the business scale differences between Star and Disney in the country.

    But the bigger challenge will be staving off the competition that Disney faces from the rising FAANGs in India, southeast Asia, Australia New Zealand well as from players from China such as Tencent, Youkou, Iqiyi who could very well eat into the huge pie that Disney China has in its studio business there.

    In Uday, Disney has a go-getting decisive no-nonsense APAC lead exec who likes to get things done; no task is impossible. Every problem brings with it opportunity. That attitude should serve him in good stead in the years to come.

  • Media consumption in India growing @9% in last 6 years: CII-BCG report

    Media consumption in India growing @9% in last 6 years: CII-BCG report

    MUMBAI: The Indian media industry, experiencing disruptions, is witnessing an increase in consumption that has been facilitated by proliferation of broadband too and over the last six years has been growing at the rate of nine percent.

    According to a CII_BCG report released today at CII Big Picture Summit event in New Delhi, at 4.6 hours of consumption per capita per day, India is still behind China (6.4 hours) and US (11.8 hours), suggesting further headroom for growth.

    “Unlike in developed countries, in India this growth has been additive and not cannibalising traditional media, yet. For the next several years, we expect India to remain a multi-modal market where all forms of media, including traditional media like TV and digital will continue to co-exist," the report states.

    In 2012, total media consumption per capita per day was 2.7 hours which was further distributed into print (0.2 hours), radio (0.2 hours), TV (1.9 hours) and digital (0.4 hours). On the other hand, 4.6 hours consumption per capita per day has increased to print (0.3 hours), radio (0.3 hours), TV (2.7 hours) and digital (1.3 hours).

    Over the past 2-3 years, the number of broadband users has become 2X (~480 million broadband users across mobile and fixed) and the data consumption has become 10X (~10 GB per user per month).

    Indian media formats are primarily advertising driven and consumer costs are minimal. Unlike the US where the cost of a cable connection can be as high as $80 per month, India with $3 cost of cable per month doesn’t have the need for skinny bundles.

    India is undergoing a video explosion. Indian consumers are consuming ~190 minutes of video per day per user across platforms, which has been growing at ~8 per cent over the last five years. 30+ digital platforms have been added to the wide range of TV channels. While an average consumer consumes 10-15 channels per day and 2-3 apps in any given month, the overall spectrum of platforms from a content creators/curator’s perspective is massive.

    Global players are realising the importance of creating curated content, in line with viewer preferences. Players like Netflix invest aggressively to match 3X the investment made by top players like Amazon Prime and Hulu. Top 5 global players as per their annual content budget are Fox ($16.7 biilion), Comcast ($15 billion), Disney ($12.7 billion), Time Warner ($12.4 billion) and Netflix ($12 billion).

  • The Walt Disney Company names new organisational structure for media networks biz

    The Walt Disney Company names new organisational structure for media networks biz

    MUMBAI: The Walt Disney Company, as part of the integration planning for its pending acquisition of 21st Century Fox, today announced plans for a new organisational structure for its media networks segment, conditional upon closing of the deal. Under the new structure, several 21st Century Fox executives would assume leadership roles at the Disney business segment once the acquisition closes.

    “The strength of 21st Century Fox’s first-class management talent has always been a compelling part of this opportunity for us,” said The Walt Disney Company chairman and chief executive officer Robert A Iger. “Upon completion of the acquisition, this new structure positions these proven leaders to help drive maximum value from a greatly enhanced portfolio of incredible brands and businesses.”

    Peter Rice will become chairman, Walt Disney Television and co-chair, Disney Media Networks, reporting directly to Iger. The new organisation under Rice will include ABC Television Network, ABC Studios, the ABC Owned Television Stations Group, Disney Channels, Freeform, Twentieth Century Fox Television, FX Networks and FX Productions, Fox 21 Television Studios, and the National Geographic channels.

    “I love making television and have been fortunate to work with incredibly talented executives and storytellers. Disney is the world’s preeminent creative company, and I look forward to working for Bob, and with his exceptional leadership team, to build on that amazing legacy. I also want to thank Rupert, Lachlan and James Murdoch for the privilege of working on such a wide array of movies and television, both entertainment and sports. It has been a wonderful thirty years,” Rice said.

    Rice’s appointment will take effect upon completion of the acquisition. He is currently president of 21st Century Fox and chairman and chief executive officer of Fox Networks Group.

    Reporting to Rice will be: Dana Walden, Chairman, Disney Television Studios and ABC Entertainment; John Landgraf, chairman of FX Networks and FX Productions; Gary E. Knell, chairman of National Geographic Partners; Gary Marsh, president and chief creative officer, Disney Channels Worldwide and James Goldston, president, ABC News

    Walden’s portfolio will include Twentieth Century Fox Television and Fox 21 Television Studios, as well as ABC Entertainment, ABC Studios, Freeform and the ABC Owned Television Stations Group. She is currently chairman and chief executive officer of Fox Television Group.

    Disney Media Networks co-chair Ben Sherwood and Disney|ABC Television Group President, will remain in his current role during the transition period until the acquisition closes.

    “I want to personally thank Ben Sherwood for his years of service at ABC and Disney. Ben has been a valued colleague, and I deeply appreciate his many contributions and insights, as well as his professionalism and cooperation in this transition,” Iger said.

    Disney’s acquisition of 21st Century Fox has received formal approval from shareholders of both companies, and Disney and 21st Century Fox have entered into a consent decree with the US Department of Justice that allows the acquisition to proceed, while requiring the sale of the Fox Sports Regional Networks. The transaction is subject to a number of non-US merger and other regulatory reviews.

  • Comcast’s new offer trumps Fox’s $32.5bn to acquire Sky

    Comcast’s new offer trumps Fox’s $32.5bn to acquire Sky

    MUMBAI: The conflicting parties in bidding war to acquire Sky are leaving no stones unturned. Following the $32.5 billion offer from Rupert Murdoch’s 21st Century Fox, US cable giant Comcast also increased its offer valuing Sky at $34 billion. European pay TV group Sky with 20 million subscribers is a lucrative option for both the firms to extend their business in a Netflix-Amazon era.

    On Wednesday, Fox increased its offer price to buy 61 per cent of Sky putting pressure on Comcast Corporation. It raised the offer to £24.5 billion ($32.5 billion) topping an earlier offer from Comcast.

    Financial Times reported, Sky’s independent committee said Fox’s new bid “represents a substantial increase in value relative to the Comcast offer.” Along with that, it would “unanimously recommend” the offer to Sky shareholders.

    The regulatory approval for Fox’s deal may come this week while Comcast already received approval from the British government. Fox has been waiting long for the approval to buy the 61 per cent of Sky it does not own already. To resolve the concerns that Fox may create a monopoly in the market, Fox agreed to sell the Sky News operation to Disney once the deal is complete. However, now even if the approval comes Fox needs to raise its offer.

    However, the deal is part of a wider battle between Comcast and Disney for control of prized entertainment assets owned by Fox. The tug-of-war includes movie studios, cable channels, National Geographic and a 30 pee cent stake in video website Hulu, as well as Star India.