Tag: News Corp

  • Q2-2014: News Corp reports flat results due to lower advertising, forex; EPS down

    Q2-2014: News Corp reports flat results due to lower advertising, forex; EPS down

    BENGALURU: A 3.9 per cent drop in advertising revenue and negative foreign exchange (forex) impacted News Corporation (News Corp., company) numbers for the quarter ended 31 December, 2014 (Q2-2015, current quarter).

     

    Total revenues went up marginally by 2.8 per cent to US$ 2280 million in the current quarter from US$ 2238 million in the corresponding year ago quarter (Q2-2014, quarter ended 31 December, 2013). The company says that the majority of the revenue increase reflects strength in the Book Publishing and Digital Real Estate Services segments.

     

    News Corp adds that Australian newspapers revenues declined 8 per cent due to negative foreign currency fluctuations and modest advertising revenue declines. Total News and Information Services segment advertising revenues declined 9 per cent, driven primarily by weaknesses in the UK print advertising market, lower revenue from free-standing insert products at News America Marketing and negative foreign currency fluctuations.

     

    Net income available to News Corp stockholder was down 5.3 per cent in Q3-2015 to US$ 142 million  from US$ 150 million in the corresponding year ago quarter resulting in a 7.7 per cent drop in basic and diluted EPS to US$ 0.24 in Q2-2015 from the US0.26 in Q2-2014. Adjusted was US$ 0.26 compared to US$ 0.31 in the prior year.

     

    The Company reported almost flat second quarter total segment EBITDA of US$ 328 million compared to US$ 327 million in the prior year quarter. The company says that these results include US$ 13 million and US$ 19 million in fees and costs – net of indemnification – related to the U K Newspaper Matters in the three months ended 31 December, 2014 and 2013, respectively, as well as US$ 16 million of one-time transaction costs in the second quarter of fiscal 2015 related to the acquisition of Move, Inc. (Move). Strong revenue performances in the Book Publishing and Digital Real Estate Services, combined with lower expenses related to the capitalization of Amplify Learning’s software development costs, which were offset by the above mentioned declines at the News and Information Services segment and negative foreign currency fluctuations. Adjusted total segment EBITDA increased 4 per cent compared to the prior year.

     

    Company Speak

     

    News Corp chief executive Robert Thomson said, “The development of the new News Corp continued apace in the second quarter as we began the transformation of the just acquired realtor.com, which has certainly exceeded our expectations in traffic growth in recent weeks. We were clearly buffeted by currency headwinds, but the strength of our brands, the breadth of our reach, the intensifying focus on cost discipline and the power of our portfolio meant that we saw continued growth in revenue and increasing upside in our long-term prospects. Our digital personality has evolved quickly, with realtor.com having given us a new and influential platform, digital subscribers on the rise at our news mastheads, robust growth at REA, and healthy e-book sales at HarperCollins. The vision we outlined for the company is becoming a reality, and while we have much work ahead, the foundations we have laid over the past 18 months put us in a strong position for enduring success and increased shareholder value.” 

     

    Segment Results

     

    News and Information services

     

    This segment had witnessed revenue decline in the previous quarter (Q1-2015). In Q2-2015 also revenue declined 5.5 per cent to US$ 1523 million from US$ 1612 million in Q2-2014. This segment’s EBIDTA declined 15.3 per cent to US$ 216 million from US$ 255 million in the year ago quarter.

     

    The declines mentioned above were partially offset by higher advertising revenues at Dow Jones, across the Wall Street Journal franchise. Circulation and subscription revenues declined 3 per cent, due to the decline in professional information business revenues at Dow Jones and lower print circulation volume, partially offset by higher subscription pricing, cover price increases says News Corp.

     

    Book Publishing

     

    Book publishing segment revenues increased 19.9 per cent to US$ 469 million from the US$ 391 million reported for the year ago quarter. This segment’s EBIDTA increased 13.2 per cent to US$ 77 million in the current quarter as compared to the US$ 68 million in Q2-2014.

     

    News Corp informs that revenue growth in this segment was driven by the inclusion of the results of Harlequin Enterprises Limited (Harlequin) and strong performances in Children’s and General Books resulting from higher backlist sales during the holiday season, which largely offset the lower revenues from the Divergent series. E-book revenues improved by 14 per cent versus the prior year period, driven by Harlequin, and represented 17 per cent of consumer revenues.

     

    Cable Network Programming

     

    Revenue from this segment increased marginally by 1.8 per cent to US$ 112 million in the current quarter from US$ 110 in the year ago quarter primarily due to higher affiliate pricing and increased subscribers says the company. Segment EBIDTA was correspondingly up 1.9 per cent to US$ 54 million from US$ 53 million in Q2-2014. The company attributes increase in EBIDTA to higher revenues, partially offset by negative foreign currency fluctuations and higher programming rights and production costs.

     

    Digital Real Estate Services

     

    This segment reported a whopping 49.5 per cent increase in revenue from US$ 103 million in the year ago quarter to US$ 154 million in the current quarter. News Corp says that the increase was primarily driven by the inclusion of the results of Move, coupled with higher residential listing depth product penetration and higher pricing at REA Group Limited (REA Group). However, this segment’s EBIDTA increased marginally by 3.6 per cent in the current quarter to US$ 57 million from US$ 55 million in Q2-2014. The company says that increase in revenue was partially offset by US$16 million of one-time transaction costs related to the acquisition of Move. Excluding the contributions from Move, divestitures and foreign currency fluctuations, Adjusted revenues and Adjusted Segment EBITDA increased 26 per cent and 38 per cent, respectively, compared to the prior year.

     

    Digital Education

     

    This segment reported flat revenue in Q2-2015 and Q2-2014 at US$ 22 million as higher subscription revenues at Amplify Insight and higher revenues at Amplify Access were offset by lower Amplify Insight consulting revenues and lower revenues at Amplify Learning, related to the early grade print and hybrid learning products says the company. Segment EBIDTA improved 45.5 per cent to a negative US$ 24 million in the current quarter from a negative US$ 45 million in the year ago quarter primarily due to the impact of the capitalization of Amplify Learning’s software development costs of US$ 14 million and lower expenses.

     

    Other

     

    News Corp explains that Segment EBITDA in the quarter improved by US$ 8 million compared to the prior year, primarily due to lower fees and costs, net of indemnification, related to the claims and investigations arising out of certain conduct at The News of the World (the U.K. Newspaper Matters) of approximately $ US6 million. The net expense related to the U.K. Newspaper Matters was US$ 13 million for the three months ended 31 December, 2014 as compared to US$ 19 million for the three months ended 31 December, 2013.

  • US Justice Dept drops case against News Corp in phone-hacking scandal

    US Justice Dept drops case against News Corp in phone-hacking scandal

    MUMBAI: Rupert Murdoch’s company News Corp will not be prosecuted in the US over the phone-hacking scandal that the company was involved in the UK.

     

    An enquiry was made into whether the alleged payments to the British police by News Corp journalists meant that the company broke anti-corruption laws in the US.

     

    However, the US Department of Justice has said that it was not pursuing charges and was closing its investigation.

     

    In a joint statement issued by 21st Century Fox and News Corp; News Corp general counsel and 21st Century Fox senior executive vice president and group general counsel, chief compliance officer Gerson Zweifach said, “21st Century Fox and News Corp have been notified by the United States Department of Justice that it has completed its investigation of voicemail interception and payments to public officials in London, and is declining to prosecute either company. We are grateful that this matter has been concluded and acknowledge the fairness and professionalism of the Department of Justice throughout this investigation.”

     

    News Corp’s tabloid newspaper in the UK, News of the World closed down in 2011 after the scandal broke.

  • 2014: The roller-coaster year for West Bengal media

    2014: The roller-coaster year for West Bengal media

    A trip down memory lane in 2014 has seldom been a tempest in a teapot; but, a year fraught with a bumpy roller-coaster ride, at least for the media in West Bengal… almost as unpredictable and enigmatic as its leader. West Bengal, centre staged and witnessed many ups and downs on the news channels. Many bled during the year, with a slowdown in the second half, but only one channel triumphed and reigned supreme. It was none other than ABP Ananda, which was rated highest week after week.

    City-based ABP Ananda emerged as a great opinion maker, backed by concrete facts and figures, and powerful, impact reporting. “In fact, its viewership increased after West Bengal Chief Minister Mamata Banerjee’s diktat not to watch the channel,” quoted a media analyst.

    The channel has built a strong presence in the Bengal and Maharashtra markets and has firmed up plans in Punjab as well. ABP Group, in the year 2014, said that it aims to launch 3 – 4 regional news channels in the next 2 – 3 years in the western region, followed by northern India.

    Worthy of note, Zee Entertainment Enterprises Limited (ZEEL), which has a major stake in the news share in the north and western India, gained control in the east through its 24×7 Bengali news channel – 24 Ghanta. The channel inducted veteran journalist and Hindustan Times deputy resident editor Anirban Choudhury as the new face on its board and saw a turn for the better in the programme content and style.

    TV18 Broadcast too launched a 24-hour Bengali news channel called ETV News Bangla in March 2014, in the presence of West Bengal Chief Minister Mamata Banerjee. The channel aims to redefine regional channels in Bengal. ETV News Bangla has caught the attention of various localities in Kolkata.

    Star India too hinted that it plans to start a Bengali sports channel. The Indian unit of Rupert Murdoch’s News Corp empire, Star India aims to expand beyond cricket coverage into sports such as hockey, football and even, kabaddi.

    There was excitement in the air! News of non-operational Mahua Bangla, a Bengali general entertainment channel and Mahua Khabor, a 24-hour Bengali news channel, spread like wild fire that they were to go live again in the year 2014! This sparked renewed vigour among job seekers as the parent company, Mahuaa Media Private Limited (MMPL), which closed down the two channels in 2013 in Kolkata, was “exploring all possibilities” to arrange funds in the range of Rs 150 – Rs 200 crore to breathe life into the sick channels.

    The most interesting development was that production company Channel Eight, which was earlier compelled to disassociate itself from the Bengali GEC Aakash Aath, after it didn’t get the 51 per cent stake in the channel as promised, within a month joined the channel again after it got its stake. The GEC said that though the focus of the channel has changed, it intends to keep news in the mixed bag. It also launched a couple of new shows such as comedy serial – Ghhente Gha directed by Manish Ghosh and scripted by Padmanabha Dasgupta.

    Focus Bangla, a 24×7 Bengali news channel, is bullish about its growth in the regional market. It had introduced many new slots for programmes featuring one-to-one interviews with experts from various fields.

    Narsingha Broadcasting also aimed to foray into television media business. The company was to launch a Bengali satellite news channel in 2014 but its plans were deferred to the early part of next year!

    On the whole, West Bengal, has a small market size with a few 24-hour satellite channels owned by big corporates, which makes it difficult for others to survive in the market place. In the past one and half years, the advertising pie in Bengal has also gone down. On top of that, the money market companies made their exit, further putting a severe fund crunch in the media market. The Saradha chit fund scam was a golden egg for most news channels.

    Bengali GECs, news, and other television channels which generated around 35 – 40 per cent of the advertisement revenue from Non-Banking Financial Institutions (NBFCs) till last fiscal year were all bleeding as the NBFC players understood that even after spending a huge amount, they were not being able to make an impression on the minds of people to invest in deceptive schemes, thanks to the Saradha Group’s chit fund business, which went bust in the beginning of the financial year 2013-14.

    Many other companies, which are engaged in money marketing have reduced their ad spend, firstly to stay away from the authorities’ watchful eye and secondly, they seem to think that even after spending a huge amount on ads, investors are not gullible enough to put in their hard-earned money into the chit fund schemes.

    In 2014, Bengal saw careful media coverage of Lok Sabha elections by the regional television channels. These included 24×7 Bengali news channels like ABP Ananda, 24 Ghanta, ETV News Bangla, Focus TV, Kolkata TV, Tara Newz, and infotainment channels like Aakash Bangla, which had three news slots for all the election coverage. 

    The 2014 elections were notable for the vast array of outlets that an interested consumer could avail to create his own media experience on multiple screens. However, a continuous simmering political situation called for more political debates, phone-in shows in 2014.

    On the other hand, the entertainment channels saw phenomenal growth as the regional market is growing. The advertising market is also growing day by day. The viewer bouquet is fast growing too.  Changes in programme structure have been incorporated in 2014. Serials, reality shows, films are given extra weightage.

    Each channel has grown in terms of viewership. The viewers just want consistent performances and channels, which can give them quality content and programmes; and hence, no one gets to lose their market share.

    Bengali viewers are natural lovers of football. Many of them have been losing interest; but, with the advent of Indian Super League (ISL), with daily exciting coverage, celebrity owners and great sponsors, it ensured more new viewers from all demographics. Not to mention that Sourav Ganguly’s Atlético de Kolkata, finally won the coveted Cup.

    The GECs continue to dominate the Kolkata advertisement market, with high production values and a robust content bank based on local programming.

    Overall, the Bengali media is surging ahead in leaps and bounds with more channels in the foray, new programmes on view and a bunch of creative minds behind them!

    With this change in tide, which is nothing but technology-driven, the media groups had taken the route of social networking sites and web as tools for promoting their programmes and started getting live viewership ratings and responses.

    The face of media is fast changing, where the media once uni-directional in its approach is now becoming bi-directional in communication and the future looks bright!

  • News Corp revenue up 4%, EBIDTA up 21% in Q1-2015

    News Corp revenue up 4%, EBIDTA up 21% in Q1-2015

    BENGALURU: News Corporation (News Corp., company) reported 4 per cent growth in revenue in Q1-2015 (Quarter ended 30 September 2014, or current quarter) to US$ 2150 million from US$ 2072 million in the corresponding year ago quarter Q1-2015.

     

    The company’s EBIDTA increased 21 per cent to US$ 170 million in Q1-2015 from US$ 141 million in Q1-2014. The y-o-y EBITDA improvement was driven primarily by strong revenue performances in the Book Publishing, Digital Real Estate Services and Digital Education segments, combined with lower expenses related to the capitalization of Amplify Learning’s software development costs, partially offset by declines at the News and Information Services segment.

     

    The following segments contribute to News Corps numbers: News and Information Services, Book Publishing, Cable Network Programming, Digital Real Estate Services, Digital Education, and ‘Other’.

     

    Segment Results

     

    News and Information services

     

    Revenues for Q1-2015 decreased US$ 44 million, or 3 per cent, compared to Q1-2014. Australian newspaper revenues were relatively flat, reflecting modest advertising revenue declines and favourable foreign currency fluctuations.

     

    The company says that total segment advertising revenues declined 7 per cent, driven by weakness primarily in the print advertising market and the absence of results from LMG, partially offset by the benefit from foreign currency fluctuations. Circulation and subscription revenues declined 1 per cent, primarily due to the decline in professional information business revenues at Dow Jones, the absence of results from LMG and lower print circulation volume, partially offset by cover price increases in the U.K. and at several Australian newspapers as well as higher subscription pricing at The Wall Street Journal and WSJ.com. Adjusted revenues declined 3 per cent compared to the prior year.

     

    Segment EBITDA decreased US$28 million in the current quarter, or 21per cent, as compared to the prior year. Results were impacted by revenue weakness at Dow Jones coupled with the sale of LMG and incremental dual rent and other facility costs related to the relocation of the Company’s London operations of US$14 million, partially offset by an increase at News Corp Australia.

     

    Book Publishing

     

    Revenues in Q1-2015 increased US$ 78 million, or 24 per cent, compared to the prior year driven by the inclusion of the results of Harlequin and continued popularity of the Divergent series by Veronica Roth. The company claims that it sold more than 3.5 million net units of the Divergent series in the quarter helped by the release of Four: A Divergent Collection. E-book revenues improved by 28 per cent versus the prior year period, primarily driven by Harlequin, and represented 22 per cent of consumer revenues. Segment EBITDA increased US$ 12 million, or 28 per cent, from Q1-2014 due to higher revenues coupled with ongoing operational efficiencies and higher contribution to profits from ebooks, as well as a modest benefit from the acquisition of Harlequin. The improvements were partially offset by approximately US$ 5 million of transaction fees related to the acquisition of Harlequin. Adjusted revenues increased 6 per cent and Adjusted Segment EBITDA increased 23 per cent, compared to the prior year.

     

    Cable Network Programming

     

    In the first quarter of fiscal 2015, revenues increased US$ 7 million, or 5 per cent, compared Q1-2014, primarily due to higher affiliate pricing and increased subscribers. Segment EBITDA in the quarter increased US$ 3 million, or 10 per cent, due to higher revenues, partially offset by higher programming rights and other production costs. Adjusted revenues increased 4 per cent and Adjusted Segment EBITDA increased 10 per cent, compared to the prior year.

     

     

    Digital Real Estate Services

     

    Revenues in the quarter increased $22 million, or 24 per cent, compared to Q1-2014, primarily reflecting higher residential listing depth product penetration and higher pricing. Segment EBITDA in the quarter increased US$ 13million, or 30 per cent, compared to the prior year primarily due to the increased revenues as noted above, partially offset by higher marketing costs and US$ 2 million of incremental costs related to the proposed acquisition of Move,Inc. (“Move”). Adjusted revenues and Adjusted Segment EBITDA increased 23 per cent and 32 per cent, respectively, compared to the prior year.

     

    Digital Education

     

    Revenues in the quarter increased US$ 15 million, or 56 per cent, compared to the prior year primarily due to higher revenues at Amplify Learning, driven by the adoption of early grade print and hybrid learning products, and at Amplify Access. Segment EBITDA in Q1-2015 improved US$ 27 million, or 53 per cent, from the prior year, primarily due to the capitalization of Amplify Learning’s software development costs of US$ 15 million and higher revenues.

     

    Other

     

    Segment EBITDA in Q1-2015 improved by US$ 2 million compared to Q1-2014, due to lower fees and costs, net of indemnification, related to the claims and investigations arising out of certain conduct at The News of the World (the “U.K. Newspaper Matters”) of approximately US$ 3 million.

    The net expense related to the U.K. Newspaper Matters was US$ 14 million for the three months ended 30 September 2014 as compared to US$ 17 million for the three months ended 30 September 2013.

     

    Click here to read the earnings release

  • Star’s youth-turn

    Star’s youth-turn

    From Tulsi to Sandhya to Yo Yo Honey Singh, the country’s oldest general entertainment channel (GEC), Star Plus, is definitely keeping pace with the changing tastes of viewers.

    A gamble for News Corp executive chairman Rupert Murdoch, when launched in 1992, has been churning out content, which has created enough and more loyalists. Be it the 2000 revamp, which saw the launch of ‘Kaun Banega Crorepati’ and the ‘K’ series led by ‘Kyunki Saas Bhi Kabhi Bahu Thi’ and many others or the current array of hits like ‘Diya Aur Baati Hum’ and ‘Yeh Rishta Kya Kehlata Hai’.

    So what is the secret ingredient for its success? “It’s the stories we tell,” says Star Plus general manager Gaurav Banerjee, who took charge in 2010 when the channel went through a second revamp.

    Star, over the years, has changed the way GECs told stories and made the characters a household name. Families sat together to watch the story of Tulsi and the Virani parivar. However, as the stories stretched, people’s interest diminished, giving birth to newer channels to proliferate and reasons to the strong team to move on.

    It is at this time that the channel again repositioned itself with ‘Rishta Wahi, Soch Nayi’ in 2010, which saw the birth of new characters and different and interesting stories.  In the last decade or so, viewers have evolved; as more women stepped out of their homes to work, the thinking changed as well. Keeping pace with this, the channel brought in the new “progressive bahus” of television.

    The most popular of them being Sandhya of ‘Diya Aur Baati Hum’, which went on air in 2011 and tells a story of a girl with aspirations married to an illiterate halwai and conservative in-laws. Banerjee believes that the channel has always come up with some of the biggest ideas. “It was ‘Kyunki…’ 15 years ago, today its ‘Diya aur Bati’.”

    Some of other shows launched with the new philosophy of the channel were ‘Pratigya’, ‘Sasural Genda Phool’, which died a natural death, while some like ‘Yeh Rishta Kya Kehlata Hai’ continue the successful run.

    “The times are changing, but even today the role of a family, especially the relationship between a saas and a bahu is an integral part of our society,” says Banerjee, who feels it would be wrong to call the channel, a saas-bahu channel. “In our stories, relationships are important but the characters are stronger.”

    In 2012, with ‘Satyamev Jayate’, the channel once again shook the industry by revamping the Sunday morning slot which no one dared to experiment with, after the success of ‘Mahabharat’ and ‘Ramayan’ on Doordarshan. The weekly show created and hosted by Aamir Khan highlighted social issues prevalent in India and discussed possible solutions.

    Star India CEO Uday Shankar has gone on record to say that he had called up James Murdoch and told him about the risk associated with SMJ because of the investment and he told him ‘we would live.’ The channel had invested Rs 4 crore per episode in season one, the amount unheard of then for a reality show. The series is now in its third season.

    As we move towards the end of 2014, the channel still continues to enjoy its number one position in the TAM TV ratings with a huge margin. In the week 42 of TAM TV ratings, it witnessed a huge hike and clocked 600,523 GVTs while Colors recorded 436,422GVTs.

    A year back, with shows like ‘Veera’, ‘Pyaar Ka Dard Hai Meetha Meetha Pyaara Pyaara’ and more recently, with ‘Yeh Hai Mohabbatein’ and ‘Ek Hassena Thi’, the channel has moved its programming strategy towards youngsters. The same was also donned by the actors and actresses during the 2014 Star Parivar Awards, who wore ‘modern’ outfits while thanking the channel going ‘younger’.   

    And now with the four new shows – ‘India’s Raw Star’, ‘Airlines’, ‘Nisha Aur Uske Cousins’ and ‘Everest’ – the channel is once again changing its programming strategy.

    Is Star Plus going younger?

     “Why shouldn’t we?” comes the prompt response from Banerjee who feels that with consumers’ tastes evolving, the channel which entertains the youngest democracy in the world, needs to change as well.

    The continuous effort to do something new and different has once again made the channel take a step forward to cater to the younger audiences. The now Balaji group CEO Sameer Nair, who is credited for the 2000 revamp of the channel, believes that if Star is moving towards catering the youth, then it is good. “One needs to move with time and Star has always been aiming to give the viewers what they want,” he adds.

    The channel, which has a strong in-house research team and associates with various agencies, is continuously conducting researches across the country to know what the viewers want. The recent studies tell that there is a certain section of youngsters who want to watch different stories, something that won’t put off the elders and can be enjoyed by the whole family.

    The research emphasised on today’s women who want more financial freedom and want a career; though marriage is important but that is not a priority anymore. It also highlighted that GECs weren’t reflecting that desire in their content.

    The channel informs that as per TAM data, 50 per cent of the total television viewership comes from women and only 10 per cent of this comes from the age group of 15 to 24. “We are already higher in this category as 16-17 per cent of our audience comes from within that age group, but we think there are still a number of women who don’t watch enough of Star Plus and we want to cater to them,” says Star India SVP Nikhil Madhok.

    The 10 second ad slot for the weekend properties ‘India’s Raw Star’ is touted at Rs 3 lakh while ‘Airlines’ is anything between Rs 80,000 and 1 lakh. The daily soap ‘Nisha Aur Uske Cousins’ is Rs 50,000 plus.

     “The viewers are giving us direction and as market leaders we have to lead that change,” says Banerjee.

    However, media planners say that though Star isn’t averse to experimenting and state the example of ‘Satyamev Jayate,’ they point out that GECs work on loyalty and Star Plus enjoys a huge following, but somewhere the shift is to tap in the youth segment so that the revenue doesn’t get impacted.

    Planners state that sometimes for a brand, ratings don’t matter but the TG does. Hence, they opt to be associated with channels or shows which are talking to that TG. They give the example of Tata Safari and ‘24’ on Colors.

    Banerjee dispels the argument and firmly says that the channel doesn’t need to change to woo advertisers. “We are not under any pressure, but we wish to change as the country is young.”

    But do planners believe that the change will impact Star’s brand equity? Maxus MD Kartik says, “I don’t think the move to go younger will impact the channel’s image or brand value because the core of the shows is still entertainment. They are not moving away from the brand’s identity.”

    On the other hand, brand consultant Harish Bijoor thinks that while the brand will alienate a set of its older viewers, the big segment to harvest is the young. “Indian demographics today do not necessarily go hand in hand with channel viewer profiles today. The audience is young. If one is to grow, one needs to harvest young viewership. Star Plus should go young in slots. A 50: 50 skew would work well for it.”

    The process of bringing out the best content isn’t simple. After numerous meetings with the best in the business as Banerjee says, pilots are shown to viewers to get their feedback as it is very important, so much so, that sometimes numerous set of viewers watch a particular pilot to tell the right story.

     “Fiction is our greatest strength and we make sure that we get all the elements right apart from the story. The settings, the actors all need to fit the story and it takes time before we put out a show for consumption,” says Banerjee. For instance, the channel worked on the finer details and concept for years on ‘SMJ’ and ‘Mahabharat’.

    Weekend programming head Ashish Golwalkar says that people have grown up watching their serials, but with time one needs to look at the current lot of youngsters. “Today a lot of youngsters think of Star Plus as a ‘mummy’ channel and if we didn’t change now, five years down the line nobody will be watching us,” opines Golwalkar.

    Banerjee along with his team, which consists mostly of 30 years-olds, put in a lot of effort to bring a variety on the channel’s platter. Research is an important part, but the team also depends on its understanding of the consumer as well as learning gained from its previous hits and misses.

    He doesn’t shy away from admitting the shortcomings of the channel. For instance, he agrees to the fact that with no innovation, the channel’s dance reality show, ‘Nach Baliye’, will not be able to grab the eyeballs in the future. Same goes for ‘MasterChef’ where the channel experimented with ‘Masterchef Junior’ and was able to make some headway. Banerjee proudly boasts about the channel’s biggest bet with mythological show, ‘Mahabharat’ which was aired in the 8:30 pm slot giving tough competition to Sab’s ‘Tarak Mehta ka Oolta Chashma’.

    For Madhok, while content on the channel has seen a change, the marketing too will soon have a changed approach. “Our main communication is our promo which gives us enough leeway to widen our approach and position. Also, since the TG (women between the age group of 22-25) which we are focusing on are very active online, hence, that will be our major catchment area,” says Madhok.

    It is very clear that Star Plus  doesn’t want to overlap with its youth channel, Channel V. “We want to cater to young women, not girls, therefore, the content will talk about marriage and relationships but the theme will resonate what is priority for these young women,” adds Madhok. In the past couple of years, the channel has already increased its digital spends from 5 per cent to 20 per cent.

    On social media, the channel lags behind Colors, which has more likes on Facebook and followers on Twitter. The channel has 6,233,082 likes on Facebook while Colors has 7,652,409 likes, Zee has 3,620,047 likes. On Twitter it has 335K followers while Colors has 395K and Zee has 153K followers.

    At the recently concluded MIPCOM 2014, 21st Century Fox co-chief operating officer James Murdoch said, “If we continue to innovate and lead in India, it will prove to be a game changer for us.” And moving ahead with this is Star India which is now gearing to lure the women in business suits.

  • Creating the world’s largest content production behemoth

    Creating the world’s largest content production behemoth

    MUMBAI: When it’s the Murdochs you have to think big. Big with a capital B.  No less. Consider the 21st Century Fox’s latest announcement that it has entered into a preliminary agreement, with funds managed by affiliates of private equity (PE) firm Apollo Global Management to form a joint venture that seeks to bring the Shine Group, Core Media Group, and Endemol under one umbrella.

     

    The new initiative has conditions attached.  It will have to be jointly owned and managed by the two groups. 21st Century gave no assurances that the proposed transaction would be completed. 

     

    But if it does go through, it will create the world’s largest independent production engine (estimates are that its valuation will be in the region of $2 billion). The proposed Apollo 21st Century joint venture will boast a roster of shows such as Big Brother, Deal or No Deal, The Money Drop and Your Face Sounds Familiar, Total Wipeout, The Million Pound Drop Live, Peaky Blinders and Ripper Street (under Endemol); MasterChef, The Face, The Biggest Loser, The Bridge and Broadchurch (through Shine) and So You think You can Dance and American Idol (through Core Media).

     

    Both 21st Century and Apollo have their own compulsions to make the deal happen, though how it will happen is not clear. Shine, Endemol and Core Media own a complex web of production companies worldwide headed by various senior executives.

     

    Apollo, for its part, has been eager to consolidate its TV production holdings through Endemol and Core Media and even find a partner to further its global ambitions. It has $125 billion in assets in several sectors in its portfolio.

     

    Apollo wanted a piece of the content production pie and forayed into TV production when it acquired CKX Media (along with it came Simon Fuller’s 19 Entertainment which co-owns the Idol format franchise) in 2011, renaming it later as Core Media.  

     

    The PE firm then went on to expand its TV production presence by acquiring a stake in Endemol after buying out owners Goldman Sachs and Sylvio Berlusconi’s Mediaset in 2012.  Endemol has a presence in 30 countries through 90 companies, makes more than 15,000 hours of programming every year for 300 broadcasters and has a handsome catalogue of 2000 formats.

     

    Apollo currently co-owns Endemol with Cyrte Investments (a fund closely associated with Endemol founder John de Mol and now renamed as Daysim Investment Strategies).  It tried to merge Core and Endemol but backed off when de Mol opposed the move in 2012. De Mol, for his part, attempted to unite Endemol with his current media vehicle Talpa Media earlier this year, but jettisoned the deal when the sticker price went up.

     

    Earlier, in 2012, Apollo explored the possibility of fusing Endemol and Core Media with investment from former News Corp CEO Peter Chernin’s Chernin Entertainment. But the discussions were aborted.

     

    Murdoch has his own imperatives to make the deal happen. It gives 21st Century the opportunity to exit from the Shine group, which was acquired by News Corp in 2011 for $675 million. He had come under severe criticism of nepotism as Shine was founded and run by his daughter Elisabeth, who now functions as its chairman. Today, Shine is owned by 21st Century after Murdoch restructured News Corp into two units – News Corp and 21st Century – following the phone hacking and police bribery scandals in the UK.  And it has 26 production companies across 11 countries including Shine TV, Shine America, Judos Film & TV and Princess Production in its portfolio.

     

    The deal is an indication of how Murdoch sees his media empire structured going forward. His movie production and television broadcasting businesses figure under a single vehicle 21st Century.  His newspaper and publishing interests under News Corp. His satellite, platforms and pay TV business under British Sky Broadcasting (BSkyB – has recently announced that it has made an offer to acquire 21st Century’s investment in Sky Deutschland and Sky Italia, leading pay TV platforms in Europe).

     

    BSkyB, Sky Italia and Sky Deutschland are owned by 21st Century with differing equity stakes. And his content production business is now slated to be under the joint Apollo and Shine venture.

     

    The proposal is timely. The content production landscape is undergoing a wave of consolidation: recently, Discovery Communications and Liberty Global agreed to buy UK production company All3Media for $930 million and Britain’s ITV snapped up 80 per cent of Leftfield Productions for $360 million.

     

    Agglomeration in content production in Europe and the US is following in the wake of consolidation in the pay TV business, where companies such as Comcast are showing an urge to merge in order to strengthen their negotiation power with content providers.

     

    The Apollo-21st Century joint venture, if it goes through according to reports, will also focus on expanding the combined entity’s focus beyond unscripted formats to scripted shows and on digital productions for online and over the top service providers. And, if it does get realised, it could spark off another wave of acquistions by other content producers as they try and join the getting-scale race too.

  • Lachlan Murdoch appointed as News Corp non-executive co-chairman

    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. 

  • Star TV UK debuts on Skys on demand service

    Star TV UK debuts on Skys on demand service

    MUMBAI: The News Corp owned Star TV UK has got all its channels onto Sky Digital’s on demand service and has become the first Asian broadcaster to do so. With this, Star’s programmes will be available ‘on demand’ to Sky customers at no additional cost.

     

    More than 3.4 million homes have their set top boxes connected to the broadband to enjoy this catch up service.

     

    Four channels are available in the Star TV pack- Star Plus, Star Gold, Life Ok and Star Jalsha.

  • Rupert Murdoch’s pay for latest fiscal year dropped to $28.9 mn

    Rupert Murdoch’s pay for latest fiscal year dropped to $28.9 mn

    MUMBAI: Rupert Murdoch’s compensation for the latest fiscal year dropped 3.7 per cent to $28.9 million.

     

    He had made $30 million the previous year, but saw a slight decline in the latest period ended 30 June, according to a regulatory filing Friday.

     

    The filing was made by his entertainment conglomerate 21st Century Fox, which was created along with new News Corp in a split mid-year. The pay for the latest year was for Murdoch’s work as chairman and CEO of the pre-split News Corp.

     

    The fiscal-year pay for former News Corp and now 21st Century Fox deputy COO James Murdoch, the media mogul’s son, rose 1.2 per cent from $16.84 million to $17.04 million.

     

    Chase Carey, president and COO of the pre-split News Corp and now 21st Century Fox, made $27.05 million in the latest year, up 9.2 per cent from $24.76 million in the fiscal year ended 30 June 2012.

     

    Rupert Murdoch’s salary for the latest year was unchanged at $8.1 million, his stock awards rose from $3.51 million to $5.16 million, and he also received a $12.5 million non-equity incentive payout, a form of bonus he received instead of the bonus that he had gotten a year earlier. His other compensation included $274,531 in personal use of the corporate aircraft and $15,694 in personal use of a corporate car. The conglomerate’s stock rose 46 per cent in the most recent fiscal year.

     

    James Murdoch’s salary was unchanged at $3 million, his stock awards rose from $5.26 million to $7.48 million, and he got $6 million in non-equity incentive compensation. Among his other compensation was $283,035 in personal use of the corporate aircraft and $8,925 in personal use of a corporate car. The executive oversees the company’s international operations.

     

    Carey’s salary was also unchanged at about $4 million, his stock awards rose from $8.77 million to $12.91 million, and his non-equity compensation amounted to $10 million. His other compensation included $60,067 in personal use of the corporate aircraft and $14,400 in personal use of a corporate car.

  • 21st Century Fox demerges, stocks on a high

    21st Century Fox demerges, stocks on a high

     MUMBAI: Last December, the 21st Century Fox had announced the separation of its business into two independent publicly-traded companies. And starting 1 July, the Rupert Murdoch owned News Corporation completed its separation process.

     

    The news of the split affected the trading as the News Corp shares saw a downward slide while the stocks of 21st Century Fox closed with a little high on NASDAQ. The first day saw a two per cent increase in the 21st Century Fox shares. On the other day News Corp plunged five per cent.

     

    The publishing firms like The Wall Street Journal and Harper Collins as well as the other news and information services will be under News Corp’s banner, while 21st Century Fox will have Star, Twentieth Century Fox, Fox, Sky, National Geographic, Fox News, Fox Sports and FX.

     

    The Company’s assets will also include pay-tv businesses Sky Deutschland, Sky Italia and its equity interests in BSkyB and Tata Sky.

     

    “21st Century Fox launches as a unique force bringing news and entertainment to more than a billion customers every day in over 100 languages,” said 21st Century Fox chairman and CEO Rupert Murdoch. “Our success will continue to be rooted in a deep belief in originality and a commitment to empowering creative minds and entrepreneurs around the world. Our management teams are the best in the business and we will drive growth and shareholder value by expanding our existing assets and brands, while embracing new opportunities and technology.”

     

    As previously announced, Rupert Murdoch will serve as chairman of the new News Corporation and chairman and CEO of Fox Group. Chase Carey will serve as president and COO of Fox Group, with James Murdoch continuing in his capacity as Deputy Chief Operating Officer.