ITV

Tag: FXX

  • Hulu signs deal with Walt Disney & Fox

    Hulu signs deal with Walt Disney & Fox

    MUMBAI: Hulu has announced pacts with The Walt Disney Company and 21st Century Fox. This deal means that Hulu will offer content from Fox, ABC, FX, FXX, Freeform, Disney Channel, Fox News, Fox Sports 1 and ESPN, making more than 35 networks available to stream live and watch on-demand through its new streaming service, set to debut in early 2017.

    It has already signed a deal with Time Warner, which will bring TNT, TBS, Cartoon Network and CNN to the service as well.

    Though the date of the launch is not yet announced, Hulu CEO Mike Hopkins has stated that there are additional partners to come.

    Hopkins and the team plans to build a service that can offer subscribers good quality programming on TV. With these two new deals in place, Hulu plans to provide TV fans of all ages live and on-demand access to their favourite programs in a whole new, more flexible, highly personalized way.

    Only time can say whether this service proves to become a threat to the cable companies.

  • Hulu signs deal with Walt Disney & Fox

    Hulu signs deal with Walt Disney & Fox

    MUMBAI: Hulu has announced pacts with The Walt Disney Company and 21st Century Fox. This deal means that Hulu will offer content from Fox, ABC, FX, FXX, Freeform, Disney Channel, Fox News, Fox Sports 1 and ESPN, making more than 35 networks available to stream live and watch on-demand through its new streaming service, set to debut in early 2017.

    It has already signed a deal with Time Warner, which will bring TNT, TBS, Cartoon Network and CNN to the service as well.

    Though the date of the launch is not yet announced, Hulu CEO Mike Hopkins has stated that there are additional partners to come.

    Hopkins and the team plans to build a service that can offer subscribers good quality programming on TV. With these two new deals in place, Hulu plans to provide TV fans of all ages live and on-demand access to their favourite programs in a whole new, more flexible, highly personalized way.

    Only time can say whether this service proves to become a threat to the cable companies.

  • FY-2015: Cable and Filmed Entertainment boost Fox op income 3.1%

    FY-2015: Cable and Filmed Entertainment boost Fox op income 3.1%

    BENGALURU: Rupert Murdoch’s Twenty-First Century Fox Inc. (Fox) reported a 3.1 per cent increase in adjusted annual total segment operating income before depreciation and amortisation (OIBDA) of $6488 million for the year ended 30 June, 2015 (FY-2015) as compared to the $6291 million last year due to higher contributions from the company’s Cable Network Programming and Filmed Entertainment segments.

     

    The company reported total revenues in FY-2015 of $28.99 billion, a $2.88 billion decrease from prior year revenues of $31.87 billion. Excluding the net revenues from the Direct Broadcast Satellite Television (DBS) businesses, Sky Italia and Sky Deutschland AG, which were sold in November 2014 to Sky plc (Sky), in both years, adjusted revenues increased $890 million, or 3.4 per cent, over the $26.06 billion of adjusted revenues in the prior year. This increase was primarily driven by double-digit revenue growth at the Cable Network Programming segment.

     

    Fox reported annual total segment operating income before depreciation and amortization (OIBDA) of $6.72 billion, which is equal to the amount reported in the prior year. Excluding the OIBDA contributions from the DBS businesses in both years, OIBDA increased $197 million, or the above mentioned 3.1 per cent, over the $6.29 billion of adjusted OIBDA in the prior year.

     

    Company Speak

     

    Fox executive chairman Rupert Murdoch said, “We made clear operational strides over the last year that will further position us to benefit from the strong and growing global demand for high quality video content. We delivered a solid financial performance, driven by sustained gains in affiliate fees, while we continued to invest in building our new channels Fox Sports 1, FXX and Star Sports. The appeal of our new sports rights resonated with consumers globally, whether it was Star Sports in India setting new records with hundreds of millions of viewers for the ICC Cricket World Cup, or the more than 25 million viewers who watched the Women’s World Cup Final on Fox. Our film studio achieved outstanding critical and box-office success with a truly diverse range of films and we are proud of the creative excellence that earned it the most Academy Awards in the industry. Our company is well positioned for this time of opportunity in our industry. We will balance the utilization of our strong balance sheet to drive growth. Today’s announcement of our new $5 billion buyback authorization reflects our ongoing program to provide direct shareholder returns.”

     

    Cable Network Programming

     

    Cable Network Programming annual segment OIBDA increased five per cent to $4.65 billion, driven by a 12 per cent revenue increase led by continued strong affiliate revenue growth and higher advertising revenues. The revenue improvement was partially offset by a 16 per cent increase in expenses, representing higher sports programming costs driven by the broadcasts of the ICC Cricket World Cup at Star Sports, increased Major League Baseball and NASCAR rights costs at Fox Sports 1 (FS1), and higher professional team rights costs at the regional sports networks (RSNs) as well as increased entertainment programming costs at FX Networks. The segment OIBDA growth was adversely impacted by five per cent from foreign exchange rate fluctuations, primarily in Latin America and Europe.

     

    Domestic affiliate revenue increased 17 per cent reflecting the combination of sustained growth at the regional sports networks (RSNs), Fox News Channel and FX Networks, increased contribution from FS1, and the consolidation of the Yankees Entertainment and Sports Network (the YES Network). International affiliate revenue increased three per cent driven by strong local currency growth at the Fox International Channels (FIC) and Star, partially offset by a 12 per cent adverse impact from the strengthened US dollar.

     

    Domestic advertising revenue grew four per cent over the prior year period led by double-digit growth at the sports channels, including the impact of the consolidation of the YES Network, as well as growth at Fox News and FX Networks. International advertising revenue increased 14 per cent due to strong local currency growth at Star and FIC, which was partially offset by a five per cent adverse impact from the strengthened US dollar.

     

    OIBDA from the domestic channels increased 12 per cent from the prior year, led by strong double-digit growth at the RSNs, which includes the impact of the consolidation of the YES Network, as well as higher contributions from Fox News Channel and National Geographic Channels. Annual OIBDA at the company’s international cable channels declined 16 per cent from the prior year as double digit local currency growth at the FIC channels and Star entertainment channels was more than offset by the impact of the ICC Cricket World Cup at Star Sports and the adverse impact from the strengthened US dollar, primarily in Latin America and Europe.

     

    Television

     

    Full year segment OIBDA of $718 million decreased $164 million or 19 per cent versus the prior year. The decline principally reflects the absence of advertising revenue and OIBDA generated from the broadcast of the Super Bowl in the prior year. Excluding the impact of the Super Bowl in the prior year, segment revenues were consistent with the year ago as strong retransmission consent revenue growth was counterbalanced by a 6 percent decline in advertising revenues reflecting overall lower general entertainment ratings at the Fox Broadcast Network.

     

    Filmed Entertainment

     

    Full year segment OIBDA of $1.45 billion increased $87 million, or six per cent, over prior year amounts reflecting higher film studio contributions partially offset by lower contributions from the television production businesses and the absence of full year contributions from Shine Group (Shine), which was contributed into the Endemol Shine Group joint venture in December 2014. The film studio’s growth was led by strong worldwide theatrical and home entertainment performance across a diverse set of releases, including Dawn of the Planet of the Apes, The Fault In Our Stars, Taken 3, Gone Girl, Kingsman: The Secret Service and The Maze Runner as well as the home entertainment performance of Rio 2. The film studio’s commercial and creative success was further highlighted by the all-time industry record it set of more than $5.5 billion in global box-office receipts for calendar 2014, as well as its industry leading eight Academy Awards for Fox Searchlight, including Best Picture for Birdman: Or (The Unexpected Virtue of Ignorance). Segment OIBDA growth was also adversely impacted by nine per cent from foreign exchange rate fluctuations.

     

    Total equity (losses) earnings of affiliates

     

    Annual equity earnings from affiliates were $904 million as compared with $622 million in the prior year. The increased contributions from affiliates reflects increased contributions from Sky primarily resulting from the Company’s share of Sky’s gains on the sale of its ownership stakes in National Geographic Channels International, Sky Betting & Gaming (Sky Bet) and its shares in ITV partially offset by purchase price amortization recorded by Sky related to its acquisition of the DBS businesses from the Company, as well as the absence of pre-tax gains related to the Company’s participation in Sky’s share repurchase program which ended last fiscal year. The higher Sky contributions were partially offset by the inclusion of equity losses of Endemol Shine Group, the absence of the YES Network contributions in the current year resulting from its consolidation in February 2014 and higher losses from Hulu.

  • ICC World Cup fees, Simpsons production costs, forex adversely impact Fox Q3-2015 OIBDA

    ICC World Cup fees, Simpsons production costs, forex adversely impact Fox Q3-2015 OIBDA

    BENGALURU: Rupert Murdoch’s Twenty-First Century Fox Inc. reported a 16.8 per cent drop in total revenue to $6840 million in the quarter ended 31 March, 2015 (Q3-2015, current quarter) as comparted to the $8219 million reported for the year ago quarter (quarter ended 31 March, 2014). Excluding net revenues for Q3-2014 from the Direct Broadcast Satellite Television (DBS) businesses, Sky Italia and Sky Deutschland AG, which were sold in November 2014 to Sky plc, adjusted revenues in Q3-2015 increased $84 million or one per cent over the $6.76 billion of adjusted revenue in Q3-2014.

     

    The company’s operating income before depreciation and amortisation fell by $110 million (6.2 per cent) to $1677 million in Q3-2015 from $1787 million in Q3-2014. The company’s Television segment reported a fall of OIBDA to $141 million, which was less than half (49 per cent) of the $288 million reported for Q3-2014. The company attributes the decline in OIBDA to the absence of revenues generated from the broadcast of Super Bowl XLVIII in the prior year and higher entertainment programming costs at the Fox Broadcasting Network from a higher volume of original series, including Glee and Empire, in the current year quarter as compared to more series repeats in Q3-2014.

     

    While its biggest segment in terms of revenues – Cable Network Programming reported an OIBDA improvement of $57 million (4.8 per cent increase) to $1233 million in Q3-2015. OIBDA increment by the segment would have been even higher, but for the impact of 19 per cent increase in segment expenses lead by the planned investments in new channels, primarily Star Sports and FXX, says the company.

     

    Increased Cable Network Programming segment expenses included increased rights fees related to the broadcast of the ICC Cricket World Cup at Star Sports and increased programming costs at FXX led by The Simpsons. International advertising revenue for the segment increased 24 per cent due to strong local currency growth at Star, driven by the broadcast of the ICC Cricket World Cup, and local currency growth at the FIC channels partially offset by the negative five per cent impact from foreign exchange rate fluctuations.

     

    For the nine month period ended 31 March, 2015 (9M-2015), Fox reported revenue of $22782 million as compared to the $23443 million in 9M-2014. Eliminating the revenue by its DBS business (without accounting for the impact of DBS on corporate eliminations) in the current nine month and 9M-2014 periods, 9M-2015 revenue was $ 20620 million and 9M-2014 revenue was $19006 million, reflecting an 8.5 per cent growth.

     

    Fox OIBDA for 9M-2015 was $5178 million as compared to the $4949 million in 9M-2014. Neglecting DBS OIBDA (without accounting for the impact of DBS on corporate eliminations), the company’s adjusted OIBDA for 9M-2015 was $4944 million, which was 5.8 per cent more than the $4671 million reported for 9M-2014.

     

    Segment Results

     

    Cable Network Programming

     

    This segment reported 12.5 per cent increase in revenue to $3590 million in the current quarter from $3152 million in Q3-2014. Over the nine month period (9M-2015), the segment reported 14.2 per cent increase in revenue to $10205 million from $8296 million in Q3-2015.

     

    The segment’s OIBDA for Q3-2015 has been mentioned above. For 9M-2015, segment OIBDA improved seven per cent to $3430 million from $3205 million in 9M-2014.

     

    Domestic (US) affiliate revenue grew 20 per cent in Q3-2015, reflecting the combination of sustained growth at the regional sports networks, Fox News Channel and FX Networks, increased contribution from Fox Sports 1, and the consolidation of the Yankees Entertainment and Sports Network (the Yes Network). International affiliate revenue increased 2 per cent driven by strong local currency growth at the Fox International Channels and Star channels which was partially offset by a 13 per cent adverse impact from the strengthened US dollar.

     

    Domestic advertising revenue was flat y-o-y due to lower ratings at FX Networks and National Geographic Channel.

     

    Television

     

    This segment reported a drop of 22 per cent in revenue in Q3-2015 to $1237 million from $1587 million in the corresponding year ago quarter. For 9M-2015, Television segment reported a revenue drop of 8.4 per cent to $3430 million in Q3-2015 from $4265 million in 9M-2014.

     

    Television segment OIBDA in 9M-2015 fell 17.9 per cent ($132 million) to $605 million from $737 million in 9M-2014.

     

    Filmed Entertainment

     

    This segment reported 4.8 per cent improvement in revenue to $2389 million in Q3-2015 as compared to the $2279 million in Q3-2014. For 9M-2015, Filmed Entertainment segment revenue rose 10.8 per cent to $7618 million from $6876 million in 9M-2014.

     

    Segment OIBDA for Q3-2015 improved 7.9 per cent to $382 million from $354 million in Q3-2014.Filmed Entertainment OIBDA improved 15.4 per cent in 9M-2015 to $1176 million from $1019 million in 9M-2014.

     

    The company says that the growth was driven by the successful theatrical releases Taken 3and Kingsman: The Secret Service in the current quarter, which have grossed over $320 million and $400 million in worldwide box office to date, respectively, and theatrical and home entertainment contributions from Penguins of Madagascar. This growth was partially offset by lower contributions from the television production business due to lower SVOD revenues resulting from the prior year sale of several series to Amazon, including 24 and The Americans, and from the adverse impact from the strengthened US dollar.

  • 21st Century reports 10 per cent operating income growth for Q1-2015: Television segment lags

    21st Century reports 10 per cent operating income growth for Q1-2015: Television segment lags

    BENGALURU: Rupert Murdoch’s Twenty-First Century Fox Inc. (Fox) reported a 10 per cent growth in operating income before depreciation and amortization (OIBDA) in Q1-2015 (quarter ended September 30, 2014) at $ 1,779 million from $ 1,618 million in the corresponding quarter of last year, and 0.7 per cent more than the $ 1,766 million in Q4-2014. 

     

    Commenting on the results, Fox Chairman and Chief Executive Officer Rupert Murdoch said, “Our strong earnings and revenue growth in the quarter were driven by continued momentum at our Cable Network Programming and Filmed Entertainment segments, reflecting sustained increases in affiliate fees as well as the global box office success of Dawn of the Planet of the Apes and The Fault in Our Stars. Additionally, we continued our focus on driving long-term value through our planned investments in a number of our growing brands, most notably our new channels FXX, Fox Sports 1 and Star Sports.” 

     

    Television segment 

     

    The company’s television segment reported flat y-o-y revenue at $ 1,048 million (13.3 per cent of Q1-2015 revenue or TIO and 14.8 per cent of Q1-2014 TIO), and 1.6 per cent more than the $ 1,031 million (12.2 per cent of TIO) in Q4-2014. The segment reported OIBDA of $ 174 million (9 per cent of overall OIBDA) in Q1-2015, down 24.7 per cent from the $ 231 million (14.3 per cent of overall OIBDA) in Q1-2014, but 20 per cent more than the $ 145 million (8.2 per cent of overall OIBDA) in Q4-2014.

     

     Here is what the company had to say about Television segment 

     

    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 5 per cent decline in advertising revenues primarily reflecting the impact from lower general entertainment ratings at the FOX Broadcast Network. The decline in segment OIBDA principally reflects segment expense growth driven by higher programming costs at the Fox Broadcast Network from the investment in additional hours of original scripted content, higher program cancellation costs and higher rights fees related to the new National Football League contract.

     

     Let us look at the other Q1-2015 numbers reported by Fox 

     

    TIO in Q1-2015 at $ 7,887 million was 11.7 per cent more than the $ 7,061 million in Q1-2014 and 6.4 per cent less than $ 8,424 million in the immediate trailing quarter. OIBDA numbers have been mentioned above. 

     

    Cable Network Programming 

     

    Cable Network Programming, the largest contributor to Fox numbers, reported 15 per cent growth in y-o-y revenue to $  3,231 million (41 per cent of TIO) in Q1-2015 from $ 2810 million (39.8 per cent of TIO) but a 3.5 per cent drop from $ 3,347 million (39.7 per cent of TIO) in Q4-2014. This segment reported a 4.7 per cent growth in OIBDA in Q1-2015 to $ 1,038 million (58.3 per cent of overall OIBDA) from $ 991 million (61.2 per cent of overall OIBDA) in Q1-2014, but 13.6 per cent less than the $ 1,202 million (68.2 per cent of overall OIBDA) in the immediate trailing quarter Q4-2014. 

     

    Here is what the company has to say about Cable network programming:  

     

    The revenue improvement was partially offset by a 21 per cent increase in segment expenses, nearly half of which reflected the combined impact of the planned investments in the new sports channels launched in the prior year, coupled with the consolidation of the Yankees Entertainment and Sports Network (the Yes Network). The expense growth at the new sports channels principally reflected increased rights fees related to the broadcast of the India vs. England cricket series at STAR Sports and the inaugural broadcast of regular season Major League Baseball games at Fox Sports 1. In addition to the continued investment in these channels, quarterly segment expenses included increased programming and marketing costs at the FX Networks for additional hours of original programming including The Strain, Tyrant and Sons of Anarchy at FX and the exclusive cable rights to air all 552 episodes of The Simpsons at FXX. Segment OIBDA growth was adversely impacted by 4 per cent from foreign exchange rate fluctuations, primarily in Latin America. 

     

    Domestic affiliate revenue grew 18 per cent reflecting the combination of sustained growth at the regional sports networks (RSNs), FX Networks and Fox News Channel, the contribution from Fox Sports 1, as well as the consolidation of the Yes Network. Reported international affiliate revenue increased 8 per cent driven by strong local currency growth at the Fox International Channels (FIC) and Star channels which was partially offset by an 8 per cent adverse impact from the strengthened US dollar, primarily in Latin America.

     

     Domestic advertising revenue grew 10 per cent in the quarter over the prior year period driven by the consolidation of the Yes Network and solid growth at the FX Networks and Fox News Channel. Reported international advertising revenue increased 13 per cent due to strong growth at the STAR channels.

     

     OIBDA from the domestic channels increased 15 per cent from the corresponding period in the prior year, reflecting OIBDA growth at the Fox News Channel and the RSNs, which included the impact of the consolidation of the Yes Network. This quarterly domestic growth was partially offset by lower contributions from the FX Networks due to the increased investment in programming and marketing. Reported quarterly OIBDA at the Company’s international cable channels’ declined 28 per cent from the corresponding period of the prior year as strong double-digit local currency growth at FIC was more than offset by the timing of the continued investment in STAR Sports and a 19 per cent adverse impact from the strengthened US dollar. 

     

    Filmed Entertainment Segment 

     

    Filmed Entertainment Segment reported 16.8 per cent growth in revenue in Q1-2015 to $ 2,476 million (31.4 per cent of TIO) from $ 2,120 million in Q1-2014, but was 11.7 per cent lower than the $ 2803 million (33.3 per cent of TIO) in Q4-2014. 

     

    OIBDA from Fox’s Filmed Entertainment Segment in Q1-2015 at $ 458 million (25.7 per cent of overall OIBDA) was 39.6 per cent more than the $ 328 million (20.3 per cent of overall OIBDA) in Q1-2014 and 39.6 per cent more than the $ 339 million (19.2 per cent of overall OIBDA) in Q4-2014.

     

     This is what the company has to say about Filmed Entertainment: 

     

    This growth was led by the performance of several successful worldwide theatrical releases in the quarter including Dawn of the Planet of the Apes and Maze Runner, which have grossed over $ 700 million and over $300 million in worldwide box office to date, respectively, continued contributions from the worldwide theatrical and domestic home entertainment performance of The Fault in Our Stars, and the worldwide home entertainment performance of Rio 2. As a result of these successful releases, the film studio became the first to cross the $ 4 billion mark in worldwide box office this year. Quarterly results also reflect higher contributions from the television production businesses driven by higher syndication and SVOD revenues. 

     

    Direct Broadcast Satellite Television

     

     Revenue from Filmed Entertainment Segment in Q1-2015 at $ 1449 million (18.4 per cent of TIO) was 11.7 per cent more than the $ 1,390 million (19.7 per cent of TIO) in the year ago quarter but 6.4 per cent lower than the $ 1,593 million (18.9 per cent of TIO) in Q4-2014.

     

    OIBDA for Filmed Entertainment Segment in Q1-2015 at $ 207 million (11.6 per cent of overall OIBDA) was 8.9 per cent more than the $ 190 million (11.7 per cent of overall OIBDA) in Q1-2014 and 41.8 per cent more than the $ 146 million (8.3 per cent of overall OIBDA) in Q4-2014.

     

     This is what the company has to say about Direct Broadcast Television:

     

     This increase reflects a $ 59 million or 4 per cent revenue increase primarily due to Sky Deutschland subscriber growth, partially offset by higher sports programming costs including SKY Italia’s broadcast of the FIFA World Cup. Sky Deutschland grew net direct subscribers by approximately 96,000 during the quarter, bringing total direct subscribers to 3.91 million, while SKY Italia’s subscriber base declined by 21,000 during the quarter bringing total subscribers to 4.70 million.