Tag: Lachlan Murdoch

Roger Ailes steps down as Fox News chairman & CEO

MUMBAI: The Murdoch family-promoted 21st Century Fox has announced Roger Ailes has stepped down as chairman and CEO of Fox News and resigned from Fox Business Network and Fox Television Stations, effective immediately.

Rupert Murdoch, Executive Chairman of 21st Century Fox, will assume the role of Chairman and acting CEO of Fox News Channel and Fox Business Network.

It’s a stunning fall for Ailes, a long time political operative and Murdoch ally, who is credited with building Fox News and leading the cable channel to ratings dominance.

In a statement released to the media last week, Rupert Murdoch said: “I am personally committed to ensuring that Fox News remains a distinctive, powerful voice. Our nation (the US) needs a robust Fox News to resonate from every corner of the country.”

Murdoch will be assisted in running the Fox businesses by existing management team under Bill Shine, Jay Wallace and Mark Kranz.
Ailes, 76, was in the eye of the storm having been accused of sexual harassment in a lawsuit filed earlier this month by former Fox News host Gretchen Carlson.

Though Ailes has vigorously denied Carlson’s claims, Fox News launched an internal investigation. The developments, critics and media observers claim, was a result of public and political pressure and perception.

“Roger Ailes has made a remarkable contribution to our company and our country. Roger shared my vision of a great and independent television organization and executed it brilliantly over 20 great years,” the company statement quoted Murdoch as saying.

In a letter to Murdoch, released by a publicist, Ailes said, “I am proud of our accomplishments and look forward to continuing to work with you as an adviser in building 21st Century Fox.”

“We join our father in recognizing Roger’s remarkable contributions to our company,” a joint statement from Murdoch’s two sons, Lachlan and James, said. The sons are in charge in charge of Fox News.
Ailes began his television career in the early 1960s as a producer at The Mike Douglas Show in Cleveland, and went onto serve as media consultant for several Republican presidents, including Richard Nixon and Ronald Reagan.

“I take particular pride in the role that I have played advancing the careers of the many women I have promoted to executive and on-air positions,” Ailes wrote in the letter to Murdoch, adding that many of these talented journalists have deservedly become household names known for their intelligence and strength whether reporting the news, fair and balanced, and offering exciting opinions on opinion programmes.

In his defence, Ailes further stated in the letter that Fox News has become No. 1 in all of cable because he “identified and promoted the most talented men and women in television, and they performed at the highest levels.”

In 1996, Murdoch, seeing a market for a conservative cable news outlet, hired Ailes to create Fox News. And Ailes moulded the network to run like a political campaign operation with primetime shows that were unabashedly conservative and hosts who openly espoused Republican talking points.

The network eventually unseated CNN as the highest rated cable news network and became one of the most popular cable networks of all genres, reaching more than 90 million households.

“It is always difficult to create a channel or a publication from the ground up and against seemingly entrenched monopolies,” Murdoch Sr. said, adding, “To lead a flourishing news channel, and to build Fox Business, Roger has defied the odds.”

July 25, 2016
Q3-16: Affiliate & Advertising revenues prop 21st Century Fox revenue 5.7 percent

BENGALURU: Rupert Murdoch’s Twenty-First Century Fox Inc. ( 21st Century Fox) reported 5.7 percent year-on-year (y-o-y) growth in adjusted total revenue (revenue) for its third quarter ended 31 March 2016 (Q3-16, current quarter). 21st Century Fox reported revenue of $7,228 million in the current quarter as compared to $6,840 million in the corresponding year ago quarter. This revenue growth reflects higher affiliate and advertising revenues at both the Cable Network Programming and Television segments partially offset by lower television production revenues at the Filmed Entertainment segment. The adverse impact of foreign exchange rates in the current quarter impacted revenue growth by $204 million, or 3 percent in total.

Affiliates fees in Q3-16 increased 7.3 percent y-o-y to $2,939 million as compared to $2,740 million. Advertising revenue in the current quarter increased 3.6 percent to $1,907 million as compared to $1,840 million in the corresponding year ago quarter. Content revenue in Q3-16 increased 4.5 percent y-o-y to $2,288 million to $2,189 million. ‘Other’ revenue in Q3-16 increased 32.4 percent y-o-y to $94 million from $71 million.

Quarterly total segment operating income before depreciation and amortization (OIBDA) of $1,881 million increased $204 million, or 12.2 percent, from the $1,677 million of quarterly OIBDA reported in the prior year. The increase principally reflects double digit OIBDA growth at each of the company’s Filmed Entertainment and Cable Network Programming segments partially offset by lower contributions from the Television segment. The adverse impact of foreign exchange rates impacted OIBDA growth by $110 million, or 7 percent.

21st Century Fox reported quarterly income from continuing operations attributable to stockholders of $844 million ($0.44 per share), compared with $990 million ($0.47 per share) in the prior year. Excluding the net income effects of Other, net and gains and other adjustments related to Sky plc and Endemol Shine Group included in equity losses from affiliates, adjusted quarterly earnings per share from continuing operations attributable to stockholders was $0.47 compared with the adjusted year-ago result of $0.42.

21st Century Fox executive chairmen Rupert and Lachlan Murdoch said: “We delivered significant revenue and earnings growth in the quarter on the strength of gains in affiliate and advertising revenues across our domestic and international cable portfolios as well as at our television segment. Whether it was Fox News outranking all of basic cable for the first time, FX delivering the year’s most watched new cable show with The People v. O.J. Simpson: American Crime Story, or Star Sports remaking televised sports in India, the unique appeal of our industry leading brands and premium content has never been clearer. This strength extended to our film studio, which broke global box office records and expanded a global franchise with Deadpool, while delivering its second strongest quarterly earnings ever. The demonstrated value of our brands and our outstanding creative content will drive our businesses forward in both the existing and evolving media marketplace.”

Cable Networking Programming (CNP)

CNP revenue in Q3-16 increased 9.8 percent y-o-y to $3,941 million as compared to $3,590 million. Cable Network Programming quarterly segment OIBDA increased 11.5 percent to $1,375 million driven by a 10 percent revenue increase on higher affiliate revenues and low double digit advertising revenue growth, partially offset by a 9 percent increase in expenses.

Domestic affiliate revenue increased 7 percent reflecting sustained growth at FX Networks and FS1. Domestic advertising revenue grew 17 percent over the corresponding prior year quarter reflecting higher ratings and pricing at Fox News and a higher number of National Basketball Association games played in the current quarter at the Regional Sports Networks as well as the impact from the consolidation of the National Geographic non-channels businesses. Domestic OIBDA contributions increased 7 percent over the Q3-15 led by higher contributions from FS1, Fox News and FX Networks.

International affiliate revenue increased 6 percent driven by strong local currency growth at the Star India and Fox Networks Group International (FNG International) channels, formally known as Fox International Channels, or FIC, which was partially offset by a negative 14 percent impact from the strengthened US dollar. International advertising revenue increased 6 percent as local currency growth at the Star India and FNG International entertainment channels was partially offset by a negative 11 percent impact from the strengthened US dollar. Quarterly OIBDA at the international cable channels increased 67 percent reflecting strong growth at the Star India channels due to both higher affiliate and advertising revenues at the entertainment channels and lower rights costs at the sports channels due to the absence of the prior year broadcast of the ICC Cricket World Cup.

Television

Television revenue increased 5 percent y-o-y in Q3-16 to $1,298 million from $1,237 million in Q3-15. Television generated quarterly segment OIBDA in Q3-16 of $125 million, a $16 million decrease from the $141 million reported in Q3-15. Quarterly segment revenues were 5 percent higher than in Q1-15 due to strong retransmission consent revenue growth and higher advertising revenues led by higher political spending 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 segment reported a 2.8 percent y-o-y decline in revenue to $2,321 million in Q3-16 as compared to $2,389 million in Q1-15. Filmed Entertainment generated quarterly segment OIBDA of $470 million, an increase of $88 million, or 23 percent, from the $382 million reported in the same period a year-ago. The OIBDA increase was driven by higher contributions from the film studio, led by the record-breaking worldwide theatrical release of Deadpool, which has grossed over $760 million in worldwide box office to date and is the top grossing R-rated movie ever, partially offset by lower television production results reflecting the absence of the network delivery of Glee, which aired its final season on the Fox Broadcast Network last year. Q3-16 segment revenues decreased primarily reflecting lower worldwide home entertainment and television production revenues and a 3 percent negative impact from foreign exchange rate fluctuations, partially offset by higher worldwide theatrical revenues, led by the theatrical release of Deadpool. Foreign exchange fluctuations adversely impacted segment OIBDA growth by 13 percent.

May 5, 2016
Q3-16: Affiliate & Advertising revenues prop 21st Century Fox revenue 5.7 percent

BENGALURU: Rupert Murdoch’s Twenty-First Century Fox Inc. ( 21st Century Fox) reported 5.7 percent year-on-year (y-o-y) growth in adjusted total revenue (revenue) for its third quarter ended 31 March 2016 (Q3-16, current quarter). 21st Century Fox reported revenue of $7,228 million in the current quarter as compared to $6,840 million in the corresponding year ago quarter. This revenue growth reflects higher affiliate and advertising revenues at both the Cable Network Programming and Television segments partially offset by lower television production revenues at the Filmed Entertainment segment. The adverse impact of foreign exchange rates in the current quarter impacted revenue growth by $204 million, or 3 percent in total.

Affiliates fees in Q3-16 increased 7.3 percent y-o-y to $2,939 million as compared to $2,740 million. Advertising revenue in the current quarter increased 3.6 percent to $1,907 million as compared to $1,840 million in the corresponding year ago quarter. Content revenue in Q3-16 increased 4.5 percent y-o-y to $2,288 million to $2,189 million. ‘Other’ revenue in Q3-16 increased 32.4 percent y-o-y to $94 million from $71 million.

Quarterly total segment operating income before depreciation and amortization (OIBDA) of $1,881 million increased $204 million, or 12.2 percent, from the $1,677 million of quarterly OIBDA reported in the prior year. The increase principally reflects double digit OIBDA growth at each of the company’s Filmed Entertainment and Cable Network Programming segments partially offset by lower contributions from the Television segment. The adverse impact of foreign exchange rates impacted OIBDA growth by $110 million, or 7 percent.

21st Century Fox reported quarterly income from continuing operations attributable to stockholders of $844 million ($0.44 per share), compared with $990 million ($0.47 per share) in the prior year. Excluding the net income effects of Other, net and gains and other adjustments related to Sky plc and Endemol Shine Group included in equity losses from affiliates, adjusted quarterly earnings per share from continuing operations attributable to stockholders was $0.47 compared with the adjusted year-ago result of $0.42.

21st Century Fox executive chairmen Rupert and Lachlan Murdoch said: “We delivered significant revenue and earnings growth in the quarter on the strength of gains in affiliate and advertising revenues across our domestic and international cable portfolios as well as at our television segment. Whether it was Fox News outranking all of basic cable for the first time, FX delivering the year’s most watched new cable show with The People v. O.J. Simpson: American Crime Story, or Star Sports remaking televised sports in India, the unique appeal of our industry leading brands and premium content has never been clearer. This strength extended to our film studio, which broke global box office records and expanded a global franchise with Deadpool, while delivering its second strongest quarterly earnings ever. The demonstrated value of our brands and our outstanding creative content will drive our businesses forward in both the existing and evolving media marketplace.”

Cable Networking Programming (CNP)

CNP revenue in Q3-16 increased 9.8 percent y-o-y to $3,941 million as compared to $3,590 million. Cable Network Programming quarterly segment OIBDA increased 11.5 percent to $1,375 million driven by a 10 percent revenue increase on higher affiliate revenues and low double digit advertising revenue growth, partially offset by a 9 percent increase in expenses.

Domestic affiliate revenue increased 7 percent reflecting sustained growth at FX Networks and FS1. Domestic advertising revenue grew 17 percent over the corresponding prior year quarter reflecting higher ratings and pricing at Fox News and a higher number of National Basketball Association games played in the current quarter at the Regional Sports Networks as well as the impact from the consolidation of the National Geographic non-channels businesses. Domestic OIBDA contributions increased 7 percent over the Q3-15 led by higher contributions from FS1, Fox News and FX Networks.

International affiliate revenue increased 6 percent driven by strong local currency growth at the Star India and Fox Networks Group International (FNG International) channels, formally known as Fox International Channels, or FIC, which was partially offset by a negative 14 percent impact from the strengthened US dollar. International advertising revenue increased 6 percent as local currency growth at the Star India and FNG International entertainment channels was partially offset by a negative 11 percent impact from the strengthened US dollar. Quarterly OIBDA at the international cable channels increased 67 percent reflecting strong growth at the Star India channels due to both higher affiliate and advertising revenues at the entertainment channels and lower rights costs at the sports channels due to the absence of the prior year broadcast of the ICC Cricket World Cup.

Television

Television revenue increased 5 percent y-o-y in Q3-16 to $1,298 million from $1,237 million in Q3-15. Television generated quarterly segment OIBDA in Q3-16 of $125 million, a $16 million decrease from the $141 million reported in Q3-15. Quarterly segment revenues were 5 percent higher than in Q1-15 due to strong retransmission consent revenue growth and higher advertising revenues led by higher political spending 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 segment reported a 2.8 percent y-o-y decline in revenue to $2,321 million in Q3-16 as compared to $2,389 million in Q1-15. Filmed Entertainment generated quarterly segment OIBDA of $470 million, an increase of $88 million, or 23 percent, from the $382 million reported in the same period a year-ago. The OIBDA increase was driven by higher contributions from the film studio, led by the record-breaking worldwide theatrical release of Deadpool, which has grossed over $760 million in worldwide box office to date and is the top grossing R-rated movie ever, partially offset by lower television production results reflecting the absence of the network delivery of Glee, which aired its final season on the Fox Broadcast Network last year. Q3-16 segment revenues decreased primarily reflecting lower worldwide home entertainment and television production revenues and a 3 percent negative impact from foreign exchange rate fluctuations, partially offset by higher worldwide theatrical revenues, led by the theatrical release of Deadpool. Foreign exchange fluctuations adversely impacted segment OIBDA growth by 13 percent.

May 5, 2016
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.

February 9, 2016
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.

February 9, 2016
Murdoch scion to take over 21st Century Fox from 1 July

MUMBAI: The Board of 21st Century Fox has made a series of senior management changes, which will take effect 1 July, 2015. As was reported by Indiantelevision.com last week, Rupert Murdoch, the company’s founder, chairman and CEO, together with Lachlan Murdoch, currently co-chairman, will become executive co-chairmen.

Additionally, Chase Carey, the company’s deputy chairman, president and COO since 2009, will become the executive vice chairman and serve in that role through 30 June, 2016. James Murdoch, currently co-chief operating officer, will become CEO.

In conjunction with these changes, the company’s corporate functions, and its global television and film operations will now jointly report to Lachlan and James Murdoch.

Rupert Murdoch said, “It has always been our priority to ensure stable, long term leadership for the company, and these appointments achieve that goal. Lachlan and James are each talented and accomplished executives and together, we, as shareholders and partners, will strive to take our company to new levels of growth and opportunity at a time of dynamic change in our industry.”

He added, “I can’t thank Chase Carey enough for his friendship, counsel and leadership over the past decades. He will be actively engaged in supporting Lachlan and James as they step in to their new roles.”

Carey said, “I am grateful to Rupert for giving me the opportunity of a lifetime and truly believe there isn’t a company out there that’s more exciting, with more growth potential, than 21st Century Fox. I look forward to continuing to work with Rupert to support Lachlan and James in their new positions.”

In a joint statement, Lachlan and James Murdoch said, “We are both humbled by the opportunity to lead, with our father and the talented team of executives at 21st Century Fox, this extraordinary company. We are grateful to Chase for being the leader and partner that he has been, and we are both delighted that his wisdom and sure handedness will continue to serve 21st Century Fox. We are also grateful to the Board for providing us the opportunity to lead this great company. Most importantly, we each look forward to working with the entire team of creators, executives, artists and all of our colleagues that make up our global businesses, to steer the company into the future, and to drive continued value for our shareholders.”

21st Century Fox lead director Rod Eddington said, “The Board has long been focused on succession and we’re fortunate to have two very talented executives in Lachlan and James to take this company into the future. Working in tandem with Rupert, we’re confident their partnership and stewardship will give this business real momentum for many years to come. We are also deeply grateful to Chase Carey for his many years of exceptional leadership and his agreement to continue his contributions through his new position.”

June 17, 2015
Lachlan Murdoch appointed as News Corp non-executive co-chairman

MUMBAI: News Corp has got its new non-executive co-chairman in Lachlan Murdoch. The announcement was made by the News Corp board of directors on 26 March.

“This appointment is a sign of confidence in the growth potential of News Corp and a recognition of Lachlan’s entrepreneurial leadership and passion for news, digital media and sport,” said News Corp executive chairman Rupert Murdoch in a statement.

“In this elevated role, Lachlan will help us lead News Corp forward as we expand our reach and invest in new technologies and markets around the world. We have many challenges and opportunities ahead, and Lachlan’s strategic thinking and vast knowledge of our businesses will enable me as executive chairman and the company as a whole to deliver the best outcomes on behalf of our stockholders, employees and customers,” added Murdoch.

Lachlan Murdoch is currently a director of News Corp and 21st Century Fox, executive chairman of NOVA Entertainment Group, executive chairman of Illyria Pty and director of Sydney’s Museum of Contemporary Art. Until recently, he also served as non-executive chairman of Ten Network Holdings. Under his leadership, NOVA Entertainment Group became Australia’s number one national FM network.

Prior to founding Illyria in 2005, Lachlan was the deputy chief operating officer of News Corporation (now 21st Century Fox), a role in which he was directly responsible for two thirds of the company’s global revenue, with specific emphasis on its US television stations group and publishing assets.

While at the former News Corporation, Lachlan had oversight of HarperCollins and the company’s lines of business in Australia, including REA. He also served on the Board of Foxtel and as chairman of Fox Television Stations and publisher of the New York Post. At Fox Television Stations, Lachlan oversaw the company’s 35 owned-and-operated television stations, where he raised the bar on local news coverage nationwide, increasing the total number of local news hours across the group to more than 850 per week. At the New York Post, Lachlan overhauled the tabloid and grew its circulation by more than 40 per cent. During his tenure, the Post became the nation’s fastest growing newspaper and the seventh largest in the United States

“I’ve had the pleasure of knowing and working with Lachlan for a number of years, and I’m delighted he’ll be serving in this elevated capacity,” said News Corp chief executive Robert Thomson.

“Lachlan’s experience, acumen and enthusiasm will serve us well as we guide News Corp and its businesses through this era of digital transformation and global expansion. His early appreciation of the value of REA, the digital property site that is a jewel in our crown, is an indicator of his prescience and strategic savvy,” informed Thomson.

“I am grateful to the Board of News Corp for this exciting opportunity, and I’m looking forward to working more closely than ever with my father as well as Robert Thomson and his team, who have launched the new News so successfully,” said Lachlan Murdoch.

“News Corp today has the energy and sensibility of a start-up and is at the cutting edge of change in the media, publishing and education industries, and much more,” he concluded.

March 26, 2014

‘No concrete offer has come from Jain Group’ : Rajasthan Royals CEO Raghu Iyer

Rajasthan Royals recently grabbed media attention for a reported $200 million offer from Kolkata-based Jain Group of Industries to acquire majority stake. The deal failed to fructify and the Indian Premier League (IPL) franchise is busy working out its future growth plans.

Amid controversies over shareholding issues, Rajasthan Royals has furiously pursued its low cost model and is one among the few franchises who have broken even. It has kept its costs under control even as revenue from central pool and team sponsorship has grown year-on-year.

Despite being profitable, the franchise has had its fair share of challenges, the biggest one being the termination of franchise agreement by the BCCI. While the franchise was reinstated into the IPL after winning the legal battle, the arbitration with the BCCI is still on.

In an interview with Indiantelevision.com‘s Ashwin Pinto, Rajasthan Royals CEO Raghu Iyer shares the franchise‘s journey and its plans to become a successful sporting franchise.

Excerpts:

Q. Is it true that Rajasthan Royals was offered $200 million for diluting majority stake?Are you now waiting for the BCCI‘s permission before cashing out?
Many offers keep coming our way. Interested parties come and talk to franchise owners. One of them was from the Jain Group, but it is not on the table anymore. So far no concrete offer has been made. We are not waiting for the BCCI’s permission to sell the franchise.

Q. Has Rajasthan Royals broken even?
We have. We run a tight ship and are in the black. We have not gone berserk on buying players, which is a big cost area. You need to spend only where it is necessary.

Q. Does the arbitration process with the BCCI make it harder to plan long term?
No, the arbitration process continues. Our operational business also moves along.

Q. Are Lachlan Murdoch and Suresh Chellaram silent investors or are they active in the team‘s functioning and operations?
We are a professionally managed franchise and owners don’t get into day to day activities.

‘Very seldom does a property come and take over the entire playing field. The IPL has changed the business of sport. It is one of the largest brands that India has created and is one of the largest sporting brands globally‘

Q. What impact has the IPL had on the business of cricket and sports marketing?
Very seldom does a property come and take over the entire playing field. The IPL has changed the business of sport. It is one of the largest brands that India has created and is one of the largest sporting brands globally. If you look at the various stakeholders, everybody has gained significantly from it.

The most important part is that the domestic cricketers have a platform to perform and also an opportunity to earn a very decent living. You can earn between Rs 1-3 million which is a decent amount of money for somebody who five years back would have struggled to make good money. Next comes the broadcaster Max who is very happy and has really raked in the moolah. Sponsors have been happy like DLF.

The franchisees bought into the league and did not think that it would grow so much. The growth has been helped by the investment that each franchisee has put in. The paying public are also happy. One thing that is significant for this year’s IPL is that all the stadiums are pretty much full. Our home matches have been sold out. Barring one odd match here and there, most matches are full.

Q. But the ratings this year are showing a downward trend. Is this because the IPL has lost some of its novelty sheen and matured as a property?
I wouldn’t call it a downward trend. The cumulative reach has plateaued at the 140 million level. In terms of ratings, even the average of 3.6 is a success. Name one property on television that delivers this rating day in and day out – whether it is at 4 pm or 8 pm. Of course, if you compare it to the initial years where the IPL managed a 4.8 rating, it is low. I will give you the example of KBC which launched with a rating of 20 and then settled down at a rating of 5-6. Even soaps like Kahaani had a rating of 10 and then settled down.

I wouldn’t say that the IPL has matured as other leagues have been around for 40-50 years. The IPL is still a baby. The fact of the matter is that with so many ups and downs, it is still delivering ratings and advertisers are coming in for the teams, Max (the official broadcaster) and the BCCI. This shows that the IPL is heading in the right direction.

Q. In hindsight was adding two more teams a possible mistake as a longer tournament means increasing the danger of viewer fatigue?
I don’t think that there is a viewer fatigue at play. Fans are flocking to the stadiums for tickets. A rating of 3.5 is not fatigue. There are other factors – perhaps, there is fragmentation of media. And it is not that ratings have dropped drastically – it is a marginal drop in the initial period. The number of close matches has increased and if you observe the buzz, people are following the league.

Q. Do you feel that it might be a mistake to hold an auction every few years which leads to confusion among fans regarding who is playing in their team?
I wouldn’t call it a mistake. Having an auction is so that the teams have an even playing field. The idea of the auction and a salary cap was that all the franchises taking part would have an equal opportunity to pick up players and build decent teams. In order to address viewer confusion, the IPL introduced player retention. As a franchise what we would want is for the fans to remember Rajasthan Royals for the brand of cricket that we play.

That is the challenge that is not unique to us. It is present for all teams. Our motto is find a way to win from anywhere. We did this under Shane Warne. This character was shown in the match against the Deccan Chargers when we chased down an almost impossible score. We want fans to remember our brand of cricket rather than this being Shane Warne’s team or Rahul Dravid’s team.

The underdog story was something that people identified with. People thought of us as underdogs. We have built on this story. We have romanticised the story of us winning from nowhere. Over the last four years from research, we realised that fans remember that we have the X factor that is mercurial at times and can surprise the opposition. This is something we want to build on.

Q. Is it fair to say that Chennai and Mumbai are at an advantage in terms of fan following because they have managed to retain the nucleus of their sides?
These teams along with Bangalore are at an advantage due to the cities. The people in those cities are loyal and passionate about their team and this is evident from how the local film industries are passionate about their team. The fans there are more loyal than the fans in some of the other cities. Player retention was allowed to all the teams. Some franchises chose to retain. We chose to retain Warne
and Watson as we felt that those were the two players around which the Rajasthan Royals name was pretty synonymous with.

Q. Does the IPL Governing Council need a franchise representative?
It would be nice if the IPL governing council had franchise representatives. Having said that, the IPL has interactive workshops with the franchises. As long as the IPL Governing council is addressing our problems, it is fine. The IPL makes it a point to ensure that franchises points are addressed.

Q. One thing that is plaguing the IPL is the lack of fan engagement activation being done by franchisees during the off season. It is just about two months and then it is forgotten. Why isn‘t more being done
in this regard?
This issue has been brought up in the workshops. To be fair to the IPL, they have taken cognizance of this and have promised to address this. One challenge is the lack of availability of players. There is the Champions Twenty20 League but the franchises who have not qualified have to think of interesting things to keep their brand alive. We tied up with a school in Jaipur and ran a school tournament in November.

Then in January we tied up with the Jaipur Marathon. Ideally it would be great if we could have Rajasthan Royals B and C teams playing cricket. This would keep the younger boys well oiled. Bit cricketers have commitments. They either play in the Ranji Trophy, Duleep trophy or the national side. It is not an IPL issue; it is a cricket issue. Franchises try to get around this. Delhi Daredevils has a soccer tournament. KingsXI Punjab does a talent hunt.

Q. What marketing initiatives have the Rajasthan Royals been doing to boost fan loyalty this season?
We started off with Rahul Dravid as the captain. Once he retired, his brand value shot up to a different level. We piggy backed on this to some extent. Locally in Rajasthan we did on-ground activities. The aim was for the fans to meet and greet players. We also had a huge bunch of local Rajasthan players in the team which was not there earlier like Pankaj Singh and Ashok Maneria. Along with Dravid, we took them to hangouts like malls where they could meet fans.

In terms of above the line we always look at support from our sponsors. There is an HDFC ad which is about the values that Rajasthan Royals brings to the table. It is about promoting youth, it is about Dravid increasing the challenges to the youth within the team. It is about how the youngsters rise to the challenge. We are a team that promotes youngsters. We have 19 partners, up from 17 last season. Each one activates it in a different manner. TCS is doing a different activation for instance.

Q. What was the brief given to FoxyMoron?
Social media is growing in importance. All franchises have focussed on this area this season. This is the best way to keep in touch with fans and get responses. Post the player auctions, we got fan responses about whether they were happy or not happy with our picks. Post the sale of Ross Taylor, some fans were disappointed and wrote in.

We are number four among IPL teams in terms of social media. So for a Mumbaiite if the first most popular team isMumbai Indians, the second is Rajasthan Royals. FoxyMoron’s role is to ensure that content remains fresh.

Q. Has this been a challenging season in terms of mopping up revenues due to the economic slowdown?
We have a hard working team and have managed good results. We have got a 15 per cent hike in sponsorship revenue. To be honest, it did take some amount of selling to get in the sponsors. We have 19 partners brands on board including Ultratech, Puma, Pepsi, and HDFC Life who have come back as sponsors. There was a question mark initially about how good the IPL would be after last year. But this year we are happy about how things have gone so far.

Q. How do you break through the clutter to offer maximum returns to sponsors?
Creative initiatives come from the clients as they want to break clutter in their category. For example, Ultratech Cement is with us and in their category there is only one company associated with another franchise in a smaller manner. In life insurance, HDFC Life is with us and I don’t see any brand in that category in the IPL. They take the trouble to do some really good advertising. Clients are with
us not just as advertisers but also to gratify their sales force and distributors.

Another important thing is that four local brands have tied up with us which is something that was not there last year. This shows the penetration that the IPL and Rajasthan Royals give. Bikajee is with us as a snack partner and it was a matter of prestige for them to tie up with us. They are doing good stuff in the interiors of Rajasthan which will in turn grow our brand.

Q. What is the split in the local revenue streams?
The trading window is starting to generate good revenue. It can become a significant area if teams look at this in a serious manner. Ticketing has been fantastic. Sponsorship, though, accounts for 60 per cent of revenue, followed by ticketing. Licensing and merchandising is the item that should show exponential growth this area. It is waiting to explode. I don’t think that it has done that for any franchise so far. To go back to your earlier question on how to keep the brand alive throughout the year, this is it: L&M has to come into play.

Q. What is the split between central and local revenue and by when will local revenue dominate?
55 per cent of our revenue comes from the central pool. The key is licensing and merchandising. Once that takes off, then local revenue will go past what we make from the central pool. The healthy share of television revenue will hopefully still be there. It will take four years for licensing and merchandising to grow.

Q. What are the plans in terms of growing licensing and merchandising?
The first plan is to keep the franchise brand alive across the year because if you sell merchandise for just two months, then it will not work. It has to be available for at least 10 months in a year. The second issue is to make merchandise more affordable.

Teams come out with Jerseys for Rs 800-1000. I don’t think that Indians can afford this. It has to come down to Rs 200. For the next season, we want to tie up with a merchandise partner. Puma has been our merchandise partner and they have been pushing our brand, but the challenge is to penetrate into the interiors of the market to ensure that merchandise is sold.

There are different reasons why franchises have not turned licensing and merchandising into a serious revenue stream so far. In the first year, nobody knew about the IPL and in the second edition, the IPL went to South Africa. This is the first year where franchises have been able to sit down properly and think about how they want to go about things. Licensing and merchandising is a long term play.

Q. Have you approached ticketing and hospitality in a different manner this time?
We brought down the ticket prices starting at Rs 200 for stands that are price sensitive. Some of the hospitality tickets are at Rs. 4000-5000 compared to previous years when it was only Rs 30,000-40,000. For the first four matches, we really stripped it down. We needed to see what the off take would be. We have done well.

Q. After this year, central revenue contracts (like DLF‘s deal) come to an end. How do you see the BCCI faring in terms of stitching together new deals with more value, given that viewership has fallen?
The IPL is a unique property and platform. It is something that people will be willing to pay a premium. I don’t see the BCCI not being able to get in sponsors at the value that they are forecasting.

Q. Champions Twenty20 League doesn‘t seem to be going anywhere in terms of viewer interest despite getting Bollywood stars to promote it. What is the reason?
It will take some more time to deliver as far as ratings are concerned. The quality of cricket is excellent. They will get in ratings when the same foreign teams play in it more often.

Then the local audience will identify with those teams. One team that will get a big fan following is Trinidad and Tobago. They have been coming and doing pretty well. This season will be their third season. If a team comes in three to four times, fan following will go beyond the IPL teams.

May 3, 2012

‘PPC plans to pump in Rs 5 billion over three years’ : Shailendra Singh – Percept Holdings joint MD

These are busy times for Percept Holdings as it plans to build a strong growth engine in the entertainment space. The company has a war chest of Rs 5 billion and 17 movie projects are in pipeline. Talks are also on with Rupert Murdoch’s estranged heir Lachlan Murdoch to sell 30-40 stake in Percept Picture Company.

Murdoch has already entered into a JV to form Percept Talent Management. Percept is also looking at scaling up its sports marketing business.

In an interview with Indiantelevision.com’s Sibabrata Das and Ashwin Pinto, Percept Holdings joint MD Shailendra Singh elaborates on his ambition to become one of the top Bollywood studios in India.

Excerpts:

Percept has identified entertainment as an important growth engine. Inside entertainment, is it mainly movies?
In communications, the margins now are pretty tight and competitive. We will continue to give it due attention as it is our bread-and-butter. But we want to also build strong pillars in media and entertainment. We have done on ground events, live shows and celebrity endorsements for the last so many years. We realise that we now have to be aggressive in the movie space as we spot dynamic changes in the marketplace.

How much is Percept Picture Company (PPC) planning to invest in the venture?
We are planning to pump in Rs 5 billion over three years. We have already lined up 17 projects and our investment over the next one year will be in the region of Rs 2 billion.

Will Lachlan Murdoch pick up a stake to support PPC’s growth plans ?
We are in talks to sell 30-40 per cent stake to Lachlan Murdoch. There is a strong possibility of an association as we share a strategic fit. We have already entered into a 50:50 joint venture with his company Illyria Pty Ltd (Australia) to launch a new initiative in the business of talent management. We believe Murdoch can provide a lot of strategic inputs. Historically, we have always been with partners for strategic rather than pure funding reasons.

What is the brand of movies that PPC will be making?
We make movies for all audiences and our ultimate goal is that in 2010 the consumer should identify our films as a PPC film. We want to catch everybody – from a six-year to a 60-year-old adult. That is because we make clean films. We have made a conscious effort that our films should not expose cleavages. India is a traditional society and we have to maintain our values.

Which is why you have made movies like Hanuman for the kids?
We have such a large kids population and yet we haven’t put our focus on kids films. So we made Makdee. Hanuman has the drama, romance and climax to succeed – and it did! We are now making a sequel to Hanuman.

Our kids have been growing up on Disney and Hollywood. Is that fair? We have our own mythology, superheroes. PPC plans to come up with two animation films soon. Hanuman’s sequel returns and will be released in November 2007. The second is an international film that will be released in summer 2008.

Have you locked up with different directors for multiple movies so that you can widen the slate of your offerings?
We created challenging cinema not just for the kids but also for the metro urban audience. We made MP3, Corporate. We have also touched rural viewers and made movies like Malaamaal Weekly. There is a lot of strategic thinking that goes into filmmaking and it comes from the long years that we have spent towards understanding the consumer. Our relationship with firms like Airtel and Hero Honda among others, have helped us achieve this.

Percept has been involved in 18 completed films that include Page 3, Corporate, Malamaal Weekly, Home Delivery, Traffic Signal and Hanuman. And the directors we have locked in for multiple movies include Nagesh Kukunoor, Priyadarshan and Madhur Bhandarkar. We lay a lot of focus on directors rather than on stars.

The perception in the industry is that you hijacked Sahara’s movie business?
Not really. We made our first film eight years ago called Pyaar Mein Kabhie Kabhie with newcomers. Then we made a movie called Makdee. We made Phir Milenge independently and then gave it to Sahara. When we were involved in the management of running Sahara One, anything that we did on the content side we gave it to Sahara. Even today, we are keen to offer Sahara the rights to movies like Hanuman (sequel) and Malaamaal Weekly (sequel) if they want it.

But Sahara was left with no contracts with directors?
Madhur Bhandarkar came to us because he shared a comfortable relationship with us. That is how this industry works. Sahara One’s movie business received a setback as they lost key people in the organisation to TV 18. And let me reinforce this again; we continue to enjoy a strong relationship with Sahara as an agency. They have been our client for over 13 years.

Do you stick your neck out and make the cinema you believe in?
There is a huge demand for quality and niche cinema. This is
risky, but it also helps build a brand. The advantage we have is that we also own P9, an in-house marketing company. And we are not shy of partnering with our competition at this stage. We, for instance, had Adlabs distribute a movie for us. We know that we are playing a tricky game but this is the only way we can produce 12-14 films a year. It is crucial that we are successful at this stage. The ultimate aim is to own the entire value chain.

Which is why you acquired Spiderman3 to spruce up your distribution?
We had been waiting for the right product to launch our distribution business; Spiderman3 was obviously the most appropriate. Initially we will be concentrating on Hollywood films as we believe that there is a huge untapped market for them in India but in due course we will start pursuing Bollywood film distribution as an independent business vertical.

The decision is completely demand driven. We believe that while all other aspects of cinema like production, marketing and even exhibition have seen radical changes in recent years, the distribution business continues to be as it was and we are confident that we will be able to make a big difference in this area. The unprecedented success of Spiderman3 is proof that effective distribution can really help create super success.

Currently we have allocated well over $10 million for infrastructure development and acquisition of content for Hollywood and Bollywood distribution. We will be targeting all big Hollywood releases in the year.

Are you getting into home video?
We will be launching our home video label by late 2007. It will include all our films but we will be pursuing others as well. We are developing our plans at the moment but there is a likelihood that this could be an acquisition or a joint venture.

The pricing today is competitive. We will keep our DVDs probably in the Rs 60 region. But our plan is to provide some value add; we will give more than a movie. And we are trying to provide a total solution. We recently bought two animation films and a South Indian film for a 360 degree distribution on all platforms. This shows that we have arrived as a brand. It is my dream that PPC will be that kind of a studio where people will see value in the knowledge that we carry as opposed to production details.

‘Independent producers will not survive by making two films a year. Getting critical mass fast is the order of the day‘

Are you planning to produce regional movies?
We are in the process of setting up a joint venture with one of South India’s largest and most respected studios and that will give us an entry into the south Indian film industry which produces almost as many films as Bollywood.

Since Sahara contracted you to run their entertainment business for a particular period of time, hasn’t this fuelled your ambition to get into the broadcasting space?
Owning a channel is not on the radar. It is a tough business and needs years before it can turn profitable. We want to make content for broadcasters and, if asked, help run a channel. We want to be experts at creating content for all platforms whether it is TV, mobile, cinema. We have just launched our mobile content division.

Is it fair to say that on the TV content side you haven’t made much progress?
We were running Sahara One as management consultants.
In the process, we produced television shows and launched a television division for ourselves. Due to our selfish interests, we only focused on supplying content for Sahara One. This included Shobhaa De’s chat and India’s first live game show. We did six shows for Sahara One. We also outsourced to other production houses.

How has the experience with Sahara One helped you capitalize on the opportunity?
For us, it was like taking a diploma course at Harvard. Our first task was to build a broadcasting image which was upwardly mobile and young. We changed the name of the channel, its look and logo. We then had to create content that the consumers wanted. This was tough as the channel was carrying a hangover of the past of Sahara Manoranjan.

The second stage was to appropriately monetise the current library. We had to clean up several film contracts that were done before we took over. We had to do a lot of fire fighting.

After that, we began a new era. We brought into our basket several films like Page Three. Sahara only lost money on Home Delivery.

We also strategically launched Filmy and we created a unique space in a market where there was already a clutter of three other Hindi movie channels (Zee Cinema, Max, Star Gold with B4U not making much impact).

The common opinion is that Percept gained at the cost of Sahara?
The market cap of Sahara One has gone up after we took charge. Investors also came in.

How do you plan to make a mark in the TV content business?
We are getting back as far as TV content is concerned. The market thought that we are an in-house production company for Sahara. We had to change that perception. It took us some time to do that.

To go big we need to get into formats. In India, we think of big ideas and execute small. We are trying to create formats that we can produce here and then get it exported globally.

Do you see a studio system emerging?
Absolutely. You will have six top studios including Yash Raj Films, Adlabs, UTV and PPC. You need the muscle to play the game. Independent producers will not survive by making two films a year. Getting critical mass fast is the order of the day.

In the field of sports marketing, do you see any alternate emerging to cricket?
There is no true second sport challenging cricket. I am confident that the sponsors, media and fans will bring cricket back.

The issue is that when the World Cup debacle took place, people wondered if they should support other disciplines. Is putting all the eggs in one basket good for business? That thinking did happen. The BCCI should have had a chat with the sponsors to sort out the issues concerning the future of cricket.

With stars like Sachin, Saurav, Dravid and Kumble probably retiring at the same time, how will it affect money coming in from sponsors?
You create the next level. As brand marketers, that is what we do. You create Dhoni, Yuvraj Singh. The fans and marketers create the next level with the help of new talent that is seen as being cool.

When we thought that Shah Rukh was God, Hritik came into the picture. Clients need to have brand consultants who will tell them that there is an age and a time to position yourselves in a certain manner.

Are you looking at sports marketing for other sports?
We are looking at soccer and baseball. We have identified four corporates and we are talking to them about the benefits of being associated with these sports. It is a tough task as the federations do not want it. The facilities at the stadiums are awful.

Why baseball?
Baseball is about a ball and bat. It is an American sport and we have a hangover for all things American. It is a throw ball sport and anyone can do it. The challenge is to make it commercially successful. We have bought some rights. We are looking at a 10-15 year programme which is interesting. We can play baseball in existing cricket stadiums at night. Infrastructure is not an issue.

What are the expansion plans for Percept Talent Management (PTM) after Lachlan Murdoch has bought a stake in the company?
PTM is the talent management wing of Percept Holdings. PTM will identify, acquire raw talent, and give them the much needed professional edge required to catapult their career into the big league. PTM will ensure that they provide effective and efficient turnkey solutions to their talents. I see huge potential for this business going forward. We will leverage the great depth of talent resident in India and abroad through this partnership with Lachlan Murdoch.

How do you see yourself creating an entertainment empire? Will it rest on movie as the backbone?
Entertainment is not just Bollywood. Cricket and Bollywood are huge in India. But there is so much more happening with the advanced technology these days – gaming, mobiles, retail, exhibitions etc. We will look at various opportunities based on our consumer research and feedback and look to providing services at various touch points. For example, Percept Holdings plans to bring a unique Bollywood experience (cafe, rides, Bollywood tours, 3D gaming booth etc) for Indian filmbuffs. We’ll offer a slice of what Brand Bollywood could be like in a 50,000-100,000 square feet area in Mumbai. We also have a separate vertical at PDM called PDM-Entertainment which will create and IPR new entertainment properties for clients.

June 18, 2007

Lachlan Murdoch buys stake in online DVD rental firm QuickFlix

MUMBAI: Media scion, Lachlan Murdoch who surprised many industry observers last year by leaving News Corporation has bought close to 10 per cent stake in Australian DVD rental company Quickflix.

Lachlan, who is the eldest son of News Corp chairman and chief executive Rupert Murdoch, quit his executive role at News Corp last year, saying he wanted to move his family back to Australia.

Lachlan had set up a new company, Illyria Pty Ltd, in August last year after moving to Australia. Media reports indicate that the firm has bought 4.04 million shares in Quickflix.

Quickflix hopes to build a community of film fans who will submit their online reviews. Reports add that its ultimate aim is to compete with the likes of MySpace, which is owned by News Corp.

Quickflix owns online DVD rental company HomeScreen Entertainment, which was founded by Tony Faure, the recently appointed chief executive of Yahoo! Australia and NZ.

August 28, 2006