Tag: Rupert Murdoch

  • 21st Century Fox denies talks for tie-up with Discovery Communications

    21st Century Fox denies talks for tie-up with Discovery Communications

    NEW DELHI: 21st Century Fox has denied as “categorically untrue” that senior executives from 21st Century Fox and Discovery Communications had met to discuss a tie-up that could create a $100 billion movie, entertainment and sports giant.

     

    The story had appeared in the Australian Financial Review.

     

    Rupert Murdoch of Fox and John Malone, a major shareholder in Discovery (and a director) and chairman and CEO of Discovery Holdings, have a long history in media, sometimes fighting one another and other times co-operating.

     

    Australia’s Sydney Morning Herald on 23 February reminded readers that News Corp-backed Foxtel is already working on a 50/50 deal with Discovery to buy Australia’s Ten Network.

     

    A few months ago billionaire Prince Alwaleed bin Talal, a shareholder in News Corp/21st Century Fox, following the ending of 21st Century’s bid for Time-Warner had said, “Combining both companies would have been a dream proposal because the amount of content the combined company would have had would have been tremendous.”

     

    “Knowing Mr Murdoch, I think the idea is still in his mind. But I think the time is not right now because the management of Time Warner are against it, and the shareholders of Fox were also not for it,” he had told CNN in September. 

  • Warren Buffett picks up stake in Rupert Murdoch’s 21st Century Fox

    Warren Buffett picks up stake in Rupert Murdoch’s 21st Century Fox

    MUMBAI: Billionaire Warren Buffett’s investment vehicle Berkshire Hathaway picked up a stake in Rupert Murdoch’s 21st Century Fox during the fourth quarter last year. Buffett’s company bought 4.7 million shares in News Corp and at Tuesday’s closing price of $34 per share, the stake was worth approximately $160 million.

     

    In a quarterly filing with the Securities and Exchange Commission on Tuesday, Berkshire Hathaway said that it bought 4.7 million shares in Murdoch’s company. The companies that fall under the 21st Century Fox umbrella are: 20th Century Fox movie studio, Fox Broadcasting, 20th Century Fox Television, Fox News, FX and Fox Sports.

     

    Berkshire Hathaway has also increased its stake in cable television provider Charter Communications last year from approximately five million shares to 6.2 million during the fourth quarter. Additionally, the company also has stakes in other media and entertainment conglomerates like satellite television company DirecTV (31.4 million shares), Liberty Global (18.2 million shares), Liberty Media (12 million shares) and Viacom (8.6 million shares).

     

    While he upped his investment in media companies, the octogenarian business magnate dumped his stakes in oil companies Exxon Mobil and ConocoPhillips, at a time when oil prices have been on a downslide. His firm offloaded 41 million shares worth approximately $3.7 billion of Exxon, which is the largest US oil company.

  • Fox Cable Network Programming business revenue up 14.2% in Q2-2015

    Fox Cable Network Programming business revenue up 14.2% in Q2-2015

    BENGALURU: Rupert Murdoch’s Twenty-First Century Fox Inc. (Fox) reported a 1.3 per cent drop in total revenue to $8055 million in the quarter ended 31 December, 2014 (Q2-2015, current quarter) as compared to the $8163 million reported for the year ago quarter (quarter ended 31 December, 2013).

     

    In November 2014, the Company sold its 100 per cent and 57 per cent ownership stakes in Sky Italia and Sky Deutschland, respectively, to Sky for approximately $8.8 billion comprised approximately $8.2 billion in cash received, net of $650 million of cash paid to acquire Sky’s 21 per cent interest in NGCI, increasing the Company’s ownership stake in NGCI to 73 per cent.

     

    Excluding the revenue from the satellite businesses that were sold, revenue rose 10 per cent to $7.42 billion in the current quarter over the $6.73 billion of adjusted revenue in the prior year quarter. Sky Italia and Sky Deutschland were a part of Fox’s Direct Broadcast Satellite Television (“DBS”) businesses.

     

    Fox reported OIBDA of $1.72 billion which included $27 million of OIBDA from the DBS businesses. Excluding the OIBDA contributions from the DBS businesses in the current and prior year quarters, adjusted OIBDA grew by $181 million or 12 per cent from $1.51 billion in the prior year to $1.70 billion. This improvement reflects OIBDA growth at the Company’s Cable Network Programming and Television segments says the company. Adjusted OIBDA growth was adversely impacted by approximately $90 million or 6 per cent from foreign exchange rate fluctuations, primarily in Latin America.

     

    Fox chairman and CEO Rupert Murdoch said, “We delivered solid quarterly results despite continuing currency headwinds and ratings challenges at the Fox broadcast network. Our growth was led by sustained affiliate revenue growth in our channels business. I am also very proud of the creative successes that we have achieved at Twentieth Century Fox, which set a global box office record in 2014 and leads the industry with 24 Academy Award nominations, including Best Picture nominations for Birdman and The Grand Budapest Hotel, as well as at our television production studios, which have produced the Emmy and Golden Globe winning Fargo, the critically acclaimed American Horror Story and the promising new series Empire.

     

    “In addition to the operational success achieved this past quarter, we also executed two significant strategic transactions, the combination of our European satellite television holdings, creating Europe’s leading pay television business, and the formation of the Endemol Shine Group joint venture. These transactions further enhance our ability to drive long-term value for all of our shareholders,” he added.

     

    Cable Network Programming

     

    Fox Cable Network Programming business (CNP), which is its largest segment in terms of revenue and operating profit, reported a 14.2 per cent jump in revenue in the current quarter to $3384 million from $2964 million in Q2-2014. OIBDA (Operating Income before Depreciation and Amortization) of CNP segment rose 11.7 per cent to $1159 million in Q2-2015 from $1038 million in the year ago quarter.  The OIBDA improvement in the current quarter was driven by a 14 per cent revenue increase on strong affiliate and advertising revenue growth says the company.

     

    The revenue improvement was partially offset by a 16 per cent increase in segment expenses, approximately half of which reflected the combined impact of the planned investments in the new sports channels, Fox Sports 1 and Star Sports, coupled with the consolidation of the Yankees Entertainment and Sports Network (the YES Network). The expense growth at the new sports channels was led by increased rights fees related to the inaugural broadcast of Major League Baseball Divisional and League Championship playoff games at Fox Sports 1. Segment OIBDA growth was adversely impacted by over $65 million or approximately 6 per cent from foreign exchange rate fluctuations, primarily in Latin America, as mentioned above.

     

    Television business

     

    Fox Television business reported almost flat revenue (drop of 0.4 per cent) at $1623 million in the current quarter versus the $1630 million in the year ago quarter. Television business OIBDA increased 33 per cent in Q2-2015 to $290 million from $218 million in Q2-2014.

     

    The increase in segment OIBDA was driven by lower programming costs at the FOX Broadcast Network from the cancellation of ‘X-Factor’, the absence of’ Glee’ in the current year quarter and the shift of the Major League Baseball League Championship Series to Fox Sports 1, all of which were partially offset by higher rights fees related to the new National Football League contract. Quarterly segment revenues were consistent with those from the corresponding period in the prior year as strong retransmission consent revenue growth was counterbalanced by a 3 per cent decline in advertising revenues. This advertising revenue decline reflects the impact from lower general entertainment ratings at the Fox Broadcast Network, which was partially offset by increased political advertising revenue growth at the local television stations.

     

    Filmed Entertainment business

     

    Filmed Entertainment (FE) business reported revenue growth of 11.1 per cent in Q2-2015 to $2753 million from $2477 million in the corresponding year ago quarter. This growth was led by the performance of several successful worldwide theatrical releases including ‘The Maze Runner’ and ‘Gone Girl’, which have grossed over $340 million and over $365 million in worldwide box office to date, respectively. As a result of these and other successful releases in the year the studio has broken the all-time global box-office industry record, having generated more than $5.5 billion in 2014 claims the company.

     

    FE reported flat OIBDA (down 0.3 per cent) of $336 million versus $337 million in the corresponding year ago quarter. This was due to increased contributions from the film studio, led by a strong theatrical slate was offset by lower contributions from the television production businesses driven by fewer series deliveries, including the absence of ‘How I Met Your Mother’, ‘White Collar’ and ‘Glee’.

     

    Direct Broadcast Satellite Television (DBS)

     

    DBS segment revenue in Q3-2015 was down 56.3 per cent to $663 million from $1517 million in Q2-2014. DBS reported OIBDA of $27 million in Q2-2015 versus $30 million last year.

     

    Consolidated revenues by component

     

    Affiliate Fees grew 17 per cent to $2480 million in Q2-2015 from $2119 million in Q2-2014. Subscription was down 55.7 per cent due to the sale of Sky Italia and Sky Deutschland in Q2-2015 to $605 million from $1366 million in the year ago quarter. Advertising revenue was almost flat down 0.6 per cent) to $2370 million in Q2-2015 as compared to $2385 million in Q2-2014.

     

    Revenue from Content was up 15.4 per cent to $2487 million in the current quarter from $2156 million in Q2-2014. Revenue from ‘Other’ component was down 17.5 per cent to $113 million from $137 million in Q2-2014.

  • Saudi Prince sells his stake in Rupert Murdoch’s News Corp for $188 million

    Saudi Prince sells his stake in Rupert Murdoch’s News Corp for $188 million

    MUMBAI: Saudi Arabia’s Kingdom Holding, the investment firm owned by billionaire Prince Alwaleed bin Talal, has sold majority of its stake in Rupert Murdoch’s News Corp.

     

    During its portfolio review last year, Kingdom Holding decided to reduce the size of its investment in NewsCorp via an orderly disposal program that was predominantly executed in the first half of 2014 and successfully completed by the end of the year. As a result, KHC has decreased its holding in NewsCorp from 13,184,477 class B shares, representing approx. 6.6 per cent ownership to 2,000,000 class B shares, representing approx. one per cent ownership, generating $188 million dollars.  

     

    However, the company continues to holds its 6.6 per cent share in News Corp’s company Twenty-First Century Fox, worth approximately $1.7 billion at current market prices.

     

    Prince Alwaleed Bin Talal said, “The reduction of KHC’s holding in News Corp has been decided in the context of a general portfolio review. We remain firm believers in News Corp’s competent management, led by CEO Robert Thomson, and are fully supportive of Rupert Murdoch and his family. Our investment in Twenty-First Century Fox, constitutes a solid foundation for our long standing relationship that we expect will endure. Twenty-First Century Fox owns a 19 per cent stake in Rotana Group that I own independently from Kingdom Holding.”

     

    Kingdom Holding CFO Mohammed Fahmy added, “As an actively managed holding company, KHC reviews its portfolio of publicly listed and private investments on a regular basis. Decisions to add, hold, dispose of or reduce particular investments are always considered in the context of the overall portfolio allocation.” 

     

    Kingdom Holding held a stake in Murdoch’s media conglomerate since 1997.

     

  • 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!

  • 2014 International Emmy Awards winners announced

    2014 International Emmy Awards winners announced

    MUMBAI: The International Academy of Television Arts & Sciences announced the winners of the 42nd International Emmy Awards tonight at a Gala event attended by over 1000 international television professionals and hosted by British Comedian and writer Matt Lucas at the New York Hilton.

     

    2 Special Awards and 10 Emmy statues were presented by the International Academy during the evening. Winners span 8 countries: Belgium, Brazil, Canada, Germany, the Netherlands, Sweden and the United Kingdom. For the first time a US primetime program produced 50% or more in a language other than English, won an Emmy. This will be a permanent category moving forward.

     

    Mad Men stars Christina Hendricks and John Slattery presented the International Emmy Founders Award to Mad Men creator, Matthew Weiner.

     

    Rupert Murdoch, Chairman and CEO of 21st Century Fox and News Corporation presented the International Emmy Directorate Award to Roberto Irineu Marinho, Chairman & CEO, Grupo Globo. They were joined on the stage by Brazilian actors Milton Gonçalvez and Gloria Pires.

     

    The 10 International Emmy Award Winning programs and performances are:The Exhibition (Arts Programming), Stephen Dillane (Best Performance by an Actor), Bianca Krijgsman (Best Performance by an Actress), What If? 2 (Comedy), Frihet bakom galler (No Burqas Behind Bars) (Documentary), Utopia (Drama Series), El Se?or de los Cielos (Non-English Language US Primetime Program), Educating Yorkshire (Non-Scripted Entertainment), Precious Pearl (Telenovela), and Unsere Mütter, Unsere Väter (Generation War) (TV Movie/Mini-Series). Complete winners information follows this release.

     

    “In the turbulent world we live in today, television’s unique power to show the beauty and drama of the human story is even more important and impactful,” said International Academy President Bruce L. Paisner. “These outstanding programs and performances are an inspiration to audiences worldwide.” 

     

    2014 International Emmy Award Winners  

    Arts Programming

    The Exhibition

    Jove Pictures

    Canada

    An artist faces public outrage as she struggles to mount a large-scale exhibition of paintings based on a police poster of missing women-26 of whom are found murdered on a serial killer’s farm

     

    Best Performance by an Actor

    Stephen Dillane as Karl Roebuck

    The Tunnel

    United Kingdom

    When the body of a French politician is found on the border of the UK and France, Detective Karl Roebuck is sent to investigate on behalf of the British police. A warm family man, Karl could not be more different from his French counterpart, Elise Wasserman. As they are drawn into the case of the serial killer, Karl and Elise learn to respect each other’s differences and work together.

     

    Best Performance by an Actress

    Bianca Krijgsman as Mirte

    De Nieuwe Wereld (The New World)

    Netherlands

    Mirte is the grumpiest cleaner in the airport immigration center, a single mother who cannot take care of her son, just managing to keep a grip on her life. This is until Luke arrives, a West African refugee, not put off by her aggression. During the 10 days of his asylum procedure, their encounters lead to an unexpected relationship.

     

    Comedy

    What If? 2

    Shelter / TV Bastards

    Belgium

    What If? is a comedy sketch show.Every sketch begins with the question what if? What if Jesus was a stand-up comedian? What if all the cops were gay? What If? transports viewers into a completely new and different world!

     

    Documentary

    Frihet bakom galler (No Burqas Behind Bars)

    Nima Film / SVT / NHK / DR / NRK / IKON / The Swedish Film Institute / The Swedish Arts Grants Committee / Nordisk Film & TV Fond / APSA Academy Film Fund

    Sweden

    Meet Sara, Nadjibeh, Sima, and their fellow inmates in a close portrait of life behind bars in an Afghan women’s prison. Most of the women are convicted of running away from their husbands. But the question arises: where are they most free, in prison or in the outside society?

     

    Drama Series

    Utopia

    Kudos Film & TV / Channel 4

    United Kingdom

    What if the conspiracy nuts are right? What if there really are people trying to control our lives?

     

    Non-English Language US Primetime Program

    El Se?or de los Cielos (The Lord of the Skies)

    Telemundo Studios / Caracol TV

    United States of America

    Follow Aurelio Casillas’ journey in becoming the leading, and only, drug dealer in Mexico in the ’90s, taking Pablo Escobar’s place in the region. Police officer Marco Mejia is in his way. After Casillas’ picture is published, ‘The Lord of the Skies’ must disappear without a trace.

     

    Non-Scripted Entertainment

    Educating Yorkshire

    Twofour

    United Kingdom

    Educating Yorkshire is located at the heart of a diverse northern community, offering the audience a fascinating insight into modern school life in the U.K.

     

    Telenovela

    Precious Pearl

    Globo

    Brazil

    Franz is the son of a millionaire factory owner. In the Himalayas, he has an accident and meets Ananda, a spiritual leader. When he is back, he falls for Amelia, a factory worker. Together they have a baby girl, who happens to “come” from afar with a mission.

     

    TV Movie/Mini-Series

    Unsere Mütter, Unsere Väter (Generation War)

    teamWorx Television & Film / ZDF / Beta Film / ZDF Enterprises

    Germany

    Five adolescents, whose friendship was supposed to last a lifetime, are forced to realize that war changes everything.

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

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

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

     

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

     

    Television segment 

     

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

     

     Here is what the company had to say about Television segment 

     

    Quarterly segment revenues were consistent with those from the corresponding period in the prior year as strong retransmission consent revenue growth was counterbalanced by a 5 per cent decline in advertising revenues primarily reflecting the impact from lower general entertainment ratings at the FOX Broadcast Network. The decline in segment OIBDA principally reflects segment expense growth driven by higher programming costs at the Fox Broadcast Network from the investment in additional hours of original scripted content, higher program cancellation costs and higher rights fees related to the new National Football League contract.

     

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

     

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

     

    Cable Network Programming 

     

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

     

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

     

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

     

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

     

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

     

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

     

    Filmed Entertainment Segment 

     

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

     

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

     

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

     

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

     

    Direct Broadcast Satellite Television

     

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

     

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

     

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

     

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

  • Murdoch wants media to unite against Amazon and Netflix

    Murdoch wants media to unite against Amazon and Netflix

    NEW DELHI: Media magnate Rupert Murdoch has called for a cooperative media response to challenger streaming services Amazon and Netflix.

     

    He said during a technology conference by his flagship Wall Street Journal at Laguna Beach that the media industry needs its own competitor to these giants.

     

    “As an industry, we need a competitor – a serious competitor – to Netflix and Amazon,” Murdoch said and added, “I think we are all on the same page.”

     

    21st Century Fox, which he chairs, is one of the partners in Hulu, a rival to Netflix, alongside Disney and NBCUniversal. Last year, Hulu CEO Jason Kilar left abruptly for a new video startup, Vessel, backed by Amazon’s Jeff Bezos.

     

    Talking of HBO’s new streaming service Murdoch said it would be difficult for HBO to launch a standalone service while negotiating with cable companies. “They do not want to get into conflict with them, so they’re really only aiming at the moment at the 10 million people who don’t get cable.”

     

    Murdoch briefly addressed 21st Century Fox’s failed bid for Time Warner over the summer. “We felt that we needed more critical mass and content and this was a wonderful marriage and fit,” he said. 

     

    Given that the panel was entitled “Bets Won and Lost,” the conversation turned to one of Murdoch’s most notable failed investments, the $580 million purchase of MySpace that ended with the sale of the social media site for $35 million. The mogul reiterated, as he has many times, what happened.  

     

    “We just messed it up,” Murdoch recalled, saying that he helped install a layer of bureaucracy that hindered the growth of the site. “It was a series of expensive, lost opportunities.” 

  • 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.