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Tag: Rupert Murdoch

  • “Star India will prove to be a game changer for us”: James Murdoch

    “Star India will prove to be a game changer for us”: James Murdoch

    CANNES: 21st Century Fox co-chief operating officer James Murdoch has lots of hopes from Star India. During his keynote on day one of the ongoing MIPCOM 2014, he said, “If we continue to innovate and lead in India, it will prove to be a game changer for us. It is the number one network in India.” He further stressed that the India business is really doing well for them and so was Sky in the UK.

     

    Murdoch believes in giving freedom and creating a company which backs talent. “At 21st Century Fox, we aspire to be one of the biggest homes for creativity and storytelling. We want to be a place where we can attract some of the best talent and encourage them to take risks, when they can’t take it anywhere else,” stressed Murdoch.

     

    21st Century Fox which is in different businesses, right from television to movies to cable and satellite, believes that the main business at the end of the day is of digital video and about story telling. “A lot of barriers in different lines of our business is breaking down. The challenges in terms of strategies and customer behaviour is similar from place to place and business to business,” he added.

     

    The biggest media giant believes in giving its executives and talent the freedom to think and create. “The culture that we are creating is that right from Mumbai to LA, the executives should have the confidence for risk taking and do great story telling,” he said. The company believes in empowering people to do great business.

     

    Murdoch laid a lot of emphasis on taking risks. “Larger companies have the ability to take risks. We learn lessons along the way. As a company we have made investments in challenging businesses. We are trying to create a culture where people understand that it is better to take risks, even if you get it wrong, at least you have tried. Great successes come from great risks. We have a culture where we do not get traumatised with failures.  We want to be a place where people feel that they can be backed,” he announced.

     

    He feels that all of Fox’s business is of risk. “Investing in original programming is the biggest risk we take, as investing in original programming means delaying some profits for the company,” he said while giving example of Simpsons, which they made and then acquired for cable syndication in the US. “When we took the step, we didn’t know how customers would react to it.”

     

    “These are the sort of risks one needs to take. I love the moment in the business when you say, ‘Holy Cow, we did it!’” he stressed.

     

    The son of media baron Rupert Murdoch, also spoke about the Shine and Endemol joint venture. “We saw opportunity in merging with Endemol. This is a business which will benefit from scale, breadth and diversity of creativity. Both Shine and Endemol have a great future.”

     

    Murdoch feels that in a creative business, one cannot over-synergise. “You have to allow people to run their own show.”

     

    According to Murdoch, consolidation in infrastructure business of cable and television has begun. “The upstream business will see further consolidation. People will seek to invest more in programming, because they see value in it,” he said.

     

    He also touched upon the most talked about collaboration between Time Warner Cable and 21st Century Fox, which did not take place.  “We had thought that the combination could be exciting. It was an opportunity at a moment in time. Given the nature of these things, we didn’t want to get into things like hostile takeovers and so moved out.”

     

    The company will soon be completing the merger of its three Sky businesses in Europe: UK, Germany and Italy. So why merge the three, he said, “Each one of them in their lifecycle has done really well. There are a lot of common things they do. We feel that together there is a huge opportunity to accelerate the business. Also with this they can create great stories. In Europe there is great opportunity for studio business.”

     

    According to Murdoch, consumers like bundling, because that drives down prices and consumption up. “People will bundle things in different ways and the stack will be re-ordered. Subscription TV is alive and kicking, and it is changing, driven by competition,” he said.

     

    He is happy when customers surprise him. “We need to create authenticity in the content. Customers are being better served today.”

     

    He concluded by saying, “TV industry has been very progressive and we need to be pacesetter.”

  • Clooney to direct a movie on UK phone hacking scandal

    Clooney to direct a movie on UK phone hacking scandal

    MUMBAI: Three years after Rupert Murdoch shut the News of the World, George Clooney is set to direct Hack Attack, an adaptation of the book by the same name by Guardian journalist Nick Davies, according to media reports. The book is an account of Davies’ investigation into the hacking scandal surrounding Rupert Murdoch’s news empire, which triggered the demise of its weekly News of the World.

     

    As per the reports, the 53-year old will also serve as co-producer for the movie, alongside Grant Heslov with whom he has worked on several previous films through their Smokehouse Pictures production company.

     

    Making a statement about his latest directorial venture, Clooney said, “This has all the elements – lying, corruption, blackmail – at the highest levels of government by the biggest newspaper in London. And the fact that it’s true is the best part. Nick is a brave and stubborn reporter and we consider it an honour to put his book to film.”

     

    The phone-hacking trial was one of the most expensive in English legal history, spotlighting the close ties between the Murdoch empire and politicians and the no-holds-barred methods of Britain’s tabloid press.

     

    Those affected included the then Kate Middleton, who is now married to Prince William, James Bond star Daniel Craig and actor Jude Law. Murdoch shut the News of the World in 2011 after it emerged that what was then Britain’s biggest selling paper had illegally accessed the voicemails of a murdered schoolgirl.

     

    Two-time Academy Award winner Clooney is most well known for roles ranging from Ocean’s Eleven and its sequels to last year’s Oscar-winning Gravity. But in the last decade the heartthrob actor has moved behind the camera to direct a number of movies including Good Night, and Good Luck, The Ides of March and The Monuments Men.

     

    Shooting on the new movie will begin next year but no release date has been set.

  • Vice Media sells 10% stake to A+E Networks

    Vice Media sells 10% stake to A+E Networks

    MUMBAI: Shortly after media reports about Time Warner ending talks to buy a stake in Vice Media flashed, Financial Times reported that Vice is wrapping up a deal to sell a 10 per cent stake to A+E Networks, the cable television group jointly owned by Walt Disney and Hearst Corporation for $250 million.

     

    According to the report, the sale could be announced as early as next week. This deal puts the entire company’s market value at $2.5 billion which represents a steep increase in Vice’s valuation since last year. The company, last year, sold a 5 per cent stake to Rupert Murdoch’s 21st Century Fox for $70 million, valuing the company at $1.4 billion then.

     

    Talking to the Financial Times, Vice Media co-founder Shane Smith said, “It’s a great deal for us, it means we can preserve our independence and it gives us a war chest for another three years of dramatic growth.”

     

    Smith also added that Vice is exploring the possibility of having its own channel, for the moment it will be producing programming for the network, which runs shows such as Duck Dynasty and Storage Wars.

     

    Vice operates a global network of online channels covering news, sport, technology and music. The company currently has 25 offices across six continents, while its YouTube channel has around 4 million subscribers and over 500 million views.

     

    According to reports, while Vice will produce digital and cable programming for A+E as part of the deal, it will not currently take over running any of its cable channels.

     

    Until recently, Time Warner was in acquisition talks with Vice about buying a 40 per cent stake in the company. The deal would have reportedly valued the company at about $2 billion. But talks stalled due to disputes over Vice’s valuation, The New York Times reported.

     

    Founded in 1994, Vice started out as a Montreal music and youth culture magazine but has since expanded into web content, making a splash with its myriad documentary videos on YouTube. It also has a television series on HBO. Vice’s free magazine is printed in 28 countries. 

  • Fox: Filmed Entertainment, Cable Network shine, Television segments dull Q4 results

    Fox: Filmed Entertainment, Cable Network shine, Television segments dull Q4 results

    BENGALURU: Twenty-First Century Fox, Inc. (Fox, the company) reported financial results for the three months (Q4-2014, current quarter) and full year ended 30 June 2014 (FY-2014). While the company’s Television and Direct Broadcast Satellite Television (DBST) segments reported lower y-o-y Q4-2014 operating income before depreciation and amortization (OIBDA) in Q4-2014, its Cable Networking Programming (CNP) and Filmed Entertainment (FE) segment’s OIBDA grew. For FY-2014, all the segments reported revenue and OIBDA growth.

     

    Fox reported 16.8 per cent growth in overall revenue in Q4-2014 at $8424 million as compared to the $7212 million in Q4-2013 (quarter ended 30 June 2013 or year ago quarter). The company’s OIBDA for Q4-2014 at $1766 million was 18.7 per cent more than the $1488 million in Q4-2013.

     

    For FY-2014, the company reported 15.1 per cent growth in overall revenue to $31867 million from $27675 in FY-2013 (year ended 30 June 2013). OIBDA for FY-2014 at $6715 million was 7.3 per cent more than the $6261 in FY-2013.

     

    Let us look at the segment results reported by the company for Q4-2014 and FY-2014

     

    Cable Network Programming

     

    Fox’s CNP segment reported 13.3 per cent higher revenue in Q4-2014 at $3347 million (39.7 per cent of all revenue) as compared to the $2953 million (40.9 per cent of all revenue) reported for the year ago quarter. Q4-2014 OIBDA at $1202 million (68.1 per cent of all OIBDA) was 11.4 per cent higher than the $1079 million (72.5 per cent of all OIBDA) reported for Q4-2013.

     

    For FY-2014, CNP segment reported 12.8 per cent growth in revenue to $12273 million (38.5 per cent of all revenue) from $10881 million (39.3 per cent of all revenue). OIBDA for FY-2014 at $4407 million (65.6 per cent of all OIBDA) grew 5.5 per cent from $4177 million (66.7 per cent of all OIBDA).

     

    Fox says that this segment’s Q4-2014 OIBDA increase was driven by a 13 per cent revenue increase led by continued affiliate revenue growth. The revenue improvement was partially offset by a 14 per cent increase in expenses, approximately a third of which reflects the planned investments related to the launches of new channels, including Fox Sports 1, Star Sports and FXX, and the consolidation of the Yes Network.

     

    Full year CNP annual segment OIBDA increase was driven by a 13 per cent revenue increase led by continued affiliate revenue growth. The revenue improvement was partially offset by a 17per cent increase in expenses, almost half of which reflects the planned investments related to the launches of new channels and the impact of the consolidation of recently acquired ownership stakes in the Yes Network, ESS, Eredivisie Media & Marketing CV (EMM) and Sports Time Ohio.  

     

    The company says that segment OIBDA growth was also adversely impacted by 3 per cent from foreign exchange rate fluctuations, primarily in Latin America and India during Q4-2014 as well as FY-2014.

     

    Television

     

    Fox’s Television segment reported lower revenue as well as OIBDA for Q4-2014 as increased retransmission consent revenues were more than offset by lower advertising revenues. Quarterly advertising  revenues declined 11 per cent from the corresponding period of the prior year driven by the impact of lower general entertainment  ratings, led by declines at American Idol says the company.

     

    For Q4-2014, the Television segment reported 5.9 per cent lower revenue at $1031 million (12.2 per cent of all revenue) as compared to the $1096 million (15.2 per cent of all revenue) in Q4-2013. The segment’s Q4-2014 OIBDA at $145 million (8.2 per cent of all OIBDA) was 31.9 per cent lower than the $213 million (14.3 per cent of all OIBDA).

     

    In FY-2014, Fox’s Television segment reported 9 per cent higher revenue at $5296 million (16.6 per cent of all revenue) as compared to the $4860 million (17.6 per cent of all revenue). The segment’s OIBDA for FY-2014 at $882 million (13.1 per cent of all OIBDA) was 3.2 per cent higher than the $855 million (13.7 per cent of all OIBDA) in FY-2013.

     

    Fox says that this increase was driven by continued retransmission consent revenue growth and contributions from the broadcast of Super Bowl XLVIII partially offset by the impact of lower primetime general entertainment ratings led by declines at American Idol and X-Factor and higher programming costs. Advertising revenues increased 5 per cent from the prior year driven by the broadcast of Super Bowl XLVIII and higher rates and ratings for the National Football League and Major League Baseball playoffs, substantially offset by the impact from lower general entertainment ratings.

     

    Filmed Entertainment

     

    The Filmed Entertainment (FE) segment reported 37.7 per cent growth in revenue in Q4-2014 at $2803 million (33.3 per cent of all revenue) as compared to the $2035 million (28.2 per cent of all revenue) in Q4-2013.

     

    FE reported Q4-2014 segment OIBDA of $339 million (19.2 per cent of all OIBDA), nearly triple (2.9 times) the $117 million (7.9 per cent of all OIBDA) reported in the same period a year-ago, driven by a $768 million or 37.7 per cent revenue increase. The company says that this growth was led by several successful worldwide theatrical releases in the quarter including X-Men: Days of Future Past, which has grossed $740 million in worldwide box office to date, Rio 2, which has grossed over $90 million in worldwide box office to date, and The Fault in Our Stars, which has grossed over $260 million in worldwide box office to date. As a result of the successful releases, the company claims that the film studio became the first to cross the $3 billion mark in worldwide box office this year. Quarterly results also reflect higher contribution from the television production businesses led by the syndication of Modern Family and the delivery of a new season of 24 adds to the company.

     

    For FY-2014, FE revenue at $9679 million (30.4 per cent of all revenue) increased 12 per cent from $8642 million (31.2 per cent of all revenue) in FY-2013.Full year FE segment OIBDA of $1358 billion (20.2 per cent of all OIBDA) increased $50 million or 3.8 per cent over prior year amounts. The company says that the annual results reflect higher contributions from the television production businesses led by higher SVOD revenues, including the sale of series to Amazon, and the syndication of Modern Family. This growth was partially offset by difficult comparisons to the successful worldwide theatrical performance of Ice Age: Continental Drift in the prior year.

     

    Direct Broadcast Satellite Television (DBST)

     

    Fox’s DBST segment reported 15.5 per cent growth in Q4-2014 revenue to $1593 million (18.9 per cent of all revenue) from $1379 million (19.1 per cent of all revenue).

     

    DBST generated quarterly segment OIBDA of $146million (8.3 per cent of all OIBDA) compared with the $156 million (10.5 per cent of all OIBDA) reported in the same period a year ago.

     

    The company says that the $214 million or 15.5 per cent increase in revenue underpinned by sustained Sky Deutschland subscriber growth was more than offset by higher sports programming costs including Sky Italia’s broadcast of the FIFA World Cup and Sky Deutschland’s exclusive broadcast of Bundesliga soccer. Sky Deutschland grew net direct subscribers by approximately 82,000 during the quarter, bringing total direct subscribers to 3.81 million, while Sky Italia’s subscriber base declined by 25,000 during the quarter bringing total subscribers to 4.73 million.

     

    For FY-2014, the DBST segment’s revenue at $6030 million (18.9 per cent of all revenue) was 35.8 per cent more than the $4439 million (16 per cent of all revenue) in FY-2013. DBST generated annual segment OIBDA of $424 million (6.3 per cent of all OIBDA), a $27 million or 6.8 per cent increase over the prior year driven by higher contributions from Sky Italia resulting from cost reduction efforts. Annual segment revenues increased principally reflecting the full year consolidation of Sky Deutschland revenues versus the consolidation of six-months of Sky Deutschland revenues in the prior year. This revenue increase was offset by the full year consolidation of Sky Deutschland costs, including costs related to its exclusive broadcast of Bundesliga soccer.

     

    BskyB and other affiliates

     

    Quarterly equity earnings from affiliates were $192 million as compared to with $223 million in Q4-2013. Annual earnings from affiliates were $622 million as compared to the $655 million in FY-2014. The decreased contributions from affiliates mainly reflect lower contributions from BskyB, says the company.

     

    Commenting on the results, 21st Century Fox chairman and CEO Rupert Murdoch said: “In the fiscal fourth quarter we built on our operational momentum with double-digit earnings and revenue gains. The Company’s strong financial performance was driven by sustained affiliate revenue increases at our cable networks and record fourth quarter contributions at our filmed entertainment segment on the strength of global box office successes XMen: Days of Future Past, Rio 2 and The Fault In Our Stars. As we close the fiscal year, I continue to have confidence in our ability to execute our growth plan and drive value for our shareholders. Our new $6 billion share buyback programme, to be executed over the next 12 months, further underscores our disciplined approach to increasing shareholder value.”

     

    Click here to read the full earnings report

  • Fox withdraws Time-Warner acquisition bid

    Fox withdraws Time-Warner acquisition bid

    BENGALURU:  Twenty-First Century Fox (Fox) withdrew its proposal to acquire Time Warner Inc.  Excerpts of the Fox press release – chairman and CEO Rupert Murdoch commented: “We viewed a combination with Time Warner as a unique opportunity to bring together two great companies, each with celebrated content and brands.  Our proposal had significant strategic merit and compelling financial rationale and our approach had always been friendly.  However, Time Warner management and its Board refused to engage with us to explore an offer which was highly compelling. Additionally, the reaction in our share price since our proposal was made undervalues our stock and makes the transaction unattractive to Fox shareholders.  These factors, coupled with our commitment to be both disciplined in our approach to the combination and focused on delivering value for the Fox shareholders, has led us to withdraw our offer.”

     

    “21st Century Fox’s future has never been brighter.  The strength of our leading franchises, combined with the power of our emerging growth businesses and the leadership positions of our international enterprises put us on a path for even greater success.”

     

    The Board today authorised a USD 6 billion share repurchase programme. The repurchase of an additional USD 6 billion of Class A Common Stock is expected to be completed in the next 12 months. 

     

    Murdoch continued, “This significant return of capital underscores the Company’s ongoing commitment to disciplined capital allocation and returning value to shareholders in a meaningful way.”

     

    Time Warner responded with a press release. Excerpts of Time Warner’s statement regarding the announcement by Twenty-First Century Fox that it has withdrawn its proposal to acquire all of the outstanding shares of Time Warner.

     

    “Time Warner’s Board and management team are committed to enhancing long-term value and we look forward to continuing to deliver substantial and sustainable returns for all stockholders.  Time Warner is well positioned for success with our iconic assets, including the world’s leading premium television brand, the world’s strongest ad-supported cable network group, and the world’s largest film and television studio.  We thank our stockholders for their continued support. Citigroup Global Markets Inc. is acting as financial advisor to Time Warner. Cravath, Swaine & Moore LLP is acting as legal advisor to Time Warner.”

  • Fox moves to garner funds; Fox or Time Warner, who will blink first?

    Fox moves to garner funds; Fox or Time Warner, who will blink first?

    BENGALURU: It was a deal, the possibility of which they had announced in May 2014. The media pundits said that it was inevitable, now that Rupert Murdoch’s 21st Century Fox (Fox) bid to buy out Time Warner had been rejected by the latter in mid-July 2014.  Fox needed to sweeten the offer with a higher bid and with the proceeds from the BSkyB deal, the company would not have to go in for a very big addition to its debt.

     

    Fox has gone ahead and done just that. Last week on Friday, Fox through a press release announced that it will transfer Sky Italia and its 57.4 per cent interest in Sky Deutschland to BSkyB to create a pan-European digital television leader through the combination of these assets.

     

    The release said further: ‘In exchange for the transfer, 21st Century Fox will receive approximately $ 9.3 billion in value from BSkyB comprised of approximately $ 8.6 billion in cash and BSkyB’s 21 per cent interest in National Geographic Channels International, raising 21st Century Fox’s ownership stake to 73 per cent. In addition, 21st Century Fox will participate in BSkyB’s announced equity offering by purchasing approximately $ 900 million of additional shares in BSkyB to maintain the Company’s 39.1 per cent ownership interest. The net, after-tax cash proceeds to be received by 21st Century Fox upon completion of all the elements of this transaction will approximate $ 7.2 billion. The agreement is subject to regulatory approvals, the approval of BSkyB stockholders and customary closing conditions.’

     

    Confirming the deal, in a message to his staff, Sky CEO Jeremy Darroch said, “The three companies complement each other well. We all operate businesses that look similar and offer similar products, and of course we share the same brand. But our affiliation goes deeper than that. We may work in different countries, but our corporate culture and values are familiar. Our teams know each other well and have a history of working together. So I am confident that this is a combination that will work well.” Darroch added, “We expect this process to take several months to complete.”

     

    So far Fox has chosen not to directly comment about the rejection of its bid or move by the Time Warner board that would stymie any action by 15 per cent or more of Time Warner’s shareholders that could favour bids by Fox and force Time Warner to consider being taken over. Fox has not commented on the Writers Guild of America, West (WGAW) speaking against any agglomeration of media companies and more specifically the WGAW’s opposition to Fox’s proposal for taking over Time Warner.

     

    However, in an oblique statement, the Fox release quotes its chairman and CEO, the 83 year old Rupert Murdoch as saying, “Our renewed authorisation for our share buyback program will be executed regardless of any potential acquisition or investment activity by the company. 21st Century Fox’s number one priority is increasing shareholder value in a disciplined manner and as a result, we will only consider transactions that fully support this objective.”

     

    Bloomberg reported on Saturday that Fox  is open to giving Time Warner shareholders seats on the board of the combined company should its $ 75 billion takeover bid succeed, attributing this to people familiar with the situation. Media reports suggest that the offer for board representation could appear in a revised proposal and that one of the reasons for Time Warner’s rejection of Fox’s overtures is that its shareholders are being offered non-voting shares by Fox.

     

    So it is more of a question of ‘when’ and not ‘if’ a fresh proposal is made by Fox. We should hear soon more about the Fox –Time Warner takeover/merger saga that will take two to three years to consummate, if it happens.

  • Are tech companies interested in Time Warner? Fox or Time Warner, who will blink first?

    Are tech companies interested in Time Warner? Fox or Time Warner, who will blink first?

    BENGALURU: Are tech companies really interested in Time Warner? Speculation is on about one of the biggies like Google, Amazon, Apple coming in as the knight in shining armour to thwart Fox’s unsolicited offer and taking over. Or maybe Verizon or Disney could step in, up the ante and carry away the bride? Is there really a knight in shining armour at all? Time will tell.

     

    While an acquisition like Time Warner would most certainly help Google get into Hollywood and help it create online platforms, Google is not in the content creation business and it could acquire other properties at a far lower price.

     

    Though Amazon has signed a multiyear agreement with Viacom for streaming children’s content and has had a successful video-on-demand partnership with CBS, it would be entering into completely new territory, were it to take over Time Warner. Amazon is already into competition with mobile handset players like Samsung and Apple with its Fire phone, does the company have the wherewithal (besides funds) and the bandwidth to take on more?

     

    For Apple’s iTunes and Apple TV, the merger would be great news, and acquisition of the huge content would be great, but Apple’s focus has been on devices, and not content. Will it be able to leverage the content to the extent to make it worthwhile spending that kind of money?

     

    As mentioned earlier, Time-Warner had rejected Rupert Murdoch’s 21st Century Fox (Fox) unsolicited offer allegedly worth about USD 76 billion cash and stock. 21st Century Fox had offered to buy Time Warner for USD 32.42 in cash and offered a ratio of 1.531 Fox class-A share for each Time Warner share. The Fox offer was worth about USD85-86 per share.

     

    In a defensive move, Time Warner has in the meantime initiated evasive action to thwart attacks on its soft underbelly by eliminating a provision in its bylaws that earlier could let just 15 per cent of its shareholders call special meeting, so as to prevent it being forced to consider the Fox offer in case Fox resorts to this measure to force the issue. The bylaws now say that the CEO or a majority of the board can call a special meeting.

     

    Joining the fray against the Fox Time Warner merger is the Writers Guild of America, West (WGAW), which says that such deals could harm writers.

  • Writer’s guild opposes media mergers: Fox Time Warner deal

    Writer’s guild opposes media mergers: Fox Time Warner deal

    BENGALURU: The chatter about moves, countermoves by both sides continues unabated around global media circles. Joining the fray against the Fox Time Warner merger is the Writers Guild of America, West(WGAW), which says that such deals could harm writers.

     

    As mentioned earlier, Time-Warner had rejected Rupert Murdoch’s 21st Century Fox (Fox) unsolicited offer allegedly worth about USD 76 billion cash and stock. 21st Century Fox had offered to buy Time Warner for USD 32.42 in cash and offered a ratio of 1.531 Fox class-A share for each Time Warner share. The Fox offer was worth about USD85-86 per share.

     

    Soliciting funds, the WGAW in an email sent to some of its members stated, “As writers, we face a landscape today that the founders of our guild would hardly recognize. For decades, there were dozens of significant buyers in television and movies. Then federal limits on mergers disappeared. FCC regulations requiring independent production in television were repealed.”

     

    “Now, those six conglomerates are threatening to swallow one another. “Think of that. Between them, Fox and Time-Warner would control 40 per cent of the industry’s writing jobs. What happens if more consolidation follows?  What happens if one mega-company ends up devouring them all?”

     

    “Giving to the Guild PAC is vital to your future,” the mail said. “The checks you write to your favourite Senate candidates cannot influence policy. But a powerful PAC, supporting candidates in the name of the WGA, gives us a fighting chance in the war against the corporate madness that threatens us all.”

     

    The mail added, “When our Guild speaks, Washington listens. But to make sure our voices are heard, we need power. Simply put, we need you. This, then, is our call to arms. In the industry as it exists today, writers no longer have the luxury of staying out of politics. Rather, more than ever, we need a voice in them.”

     

    Earlier, TV show runner and creator of the ‘Shield’ (2002-2008 for Fox Television Studios and Sony Pictures Television) and ‘Chicago Code’ (2011 for Fox Broadcasting Company) fame, Shawn Ryan had appeared before the Senate Committee on Commerce, Science, & Transportation to discuss the adverse effect of “weak net neutrality regulations” and media consolidation on the creative community.

     

    Before his appearance, Ryan had in a statement through the WGA said, “The reality of American media is that it is controlled by a handful of companies formed through two decades of consolidation .These companies own the television networks, the production studios and almost all of the scripted content that is available on television and in movie theatres. The cable companies that distribute this content are even more concentrated.”

     

    In February 2014, the WGAW had issued a statement opposing the friendly Comcast Time Warner Cable merger that is awaiting approvals. “Comcast’s proposed merger with Time Warner Cable is bad for everyone: content creators, programmers, suppliers, and consumers. As writers know all too well, media consolidation leads to already too powerful companies limiting competition. The WGA will fight to stop this ill-conceived merger.”

     

    Also, on June 24 this year, WGAW president Chris Keyser  testified against the proposed merger of AT&T and DirecTV. Chaired by U.S. Senator Amy Klobuchar (D-MN), the subcommittee’s jurisdiction includes oversight of antitrust law and competition policy, with that day’s hearing focused on the AT&T – DirecTV merger and its impact on competition and consumers. “They will use their power to force content providers to accept below market rates for their product,” stated Keyser in his testimony. “It is a stated goal of the merger to reduce affiliate fees. The problem is: it is those fees that have fueled the recent boom in creative programming – particularly on cable. Reduce those fees through the outsized power of monopoly – and the result is less creativity, less product, less innovation.”

  • Fox or Time Warner, who will blink first? Time Warner changes bylaws

    Fox or Time Warner, who will blink first? Time Warner changes bylaws

    BENGALURU: Reports fly thick and fast, some speculation, some part truth across the global media about the aftermath of Time Warner’s rejection of Twenty First Century Fox (Fox) unsolicited merger bid. What will the 83 year old tough as nails Fox ‘patriarch’ Rupert Murdoch do next? Known for his bulldogged tenacity once he sets his sights on a company, what and when (and not will it) will Fox up the ante to a reportedly manageable USD105 per share.

     

    Time Warner has in the meantime initiated evasive action to thwart attacks on its soft underbelly by eliminating a provision in its bylaws that earlier could let just 15 per cent of its shareholders call special meeting, so as to prevent it being forced to consider the Fox offer in case Fox resorts to this measure to force the issue. The bylaws now say that the CEO or a majority of the board can call a special meeting.

     

    There is a quiet buzz of Time Warner’s CEO Jeff Bewkes alleged animosity towards Murdoch and his hierarchical management bent. Under expert hatchet man Bewekes leadership, Time Warner has chopped the unwieldy behemoth created by the largest media deal ever by the AOL-Time Warner merger in 2000-01, and has delivered a total shareholder return of more than 150 per cent since 2008, almost tripling the return of the S&P 500 over the same period.

     

    Speculation is rife about Fox paring off its wholly-owned Sky Italia unit and its 57 per cent stake in Sky Deutschland AG to British Sky Broadcasting Group Plc., within the next two weeks for about USD 13 billion. US banks JPMorgan & Chase Company and Goldman Sachs Group Inc., will probably help Murdoch finance the bid say pundits. Fox and the British Sky Broadcasting Group had disclosed their talks about a possible transaction in May this year.

     

    For now, Fox’s bid has probably kept at bay bids from Time Warner’s suitors such as Google among others, unless of course, Google/others can better the approximate USD85 per share offer made by Fox.

  • BSkyB acquires 70 per cent stake in Love Productions

    BSkyB acquires 70 per cent stake in Love Productions

    MUMBAI: Media baron Rupert Murdoch owned UK pay TV operator BSkyB has acquired a stake in one of UK’s leading production houses- Love Productions. The investment is a strategy to grow a broad, international content business spanning broadcasting, production and distribution. 

     

    Love Productions, launched in 2004 by Richard McKerrow and Anna Beattie has created shows such as Great British Bakeoff and Great British Sewing Bee as well as documentaries like Baby Borrowers, Famous Rich and Homeless, Benefits Street, Make Bradford British and My Last Summer. It has bases in London, Bristol, New York and Los Angeles.

     

    Under the new ownership of BSkyB, it will operate as a separate company while continuing its work of producing programs and formats. The owners will run the company along with the existing management team.

     

    BSkyB’s international distribution business, Sky Vision, will become Love Productions’ distribution partner, representing all new finished programmes and formats and leveraging its relationships with leading networks and producers across the world.   Meanwhile, existing agreements with broadcasters and distributors won’t be affected.

     

    Sky Vision deals extensively with independent producers, sourcing programming for distribution, largely from the UK and the US. It has development deals with a number of production companies including Ugly Brother Studios in the US and in the UK with back2back productions and Roughcut TV. The investment in Love Productions is part of this strategy to grow a broad, international content business.  

    Sky MD content Sophie Turner Laing said, “This is a significant step for our growing international content business. Love is one of the UK’s most innovative and creative independent producers with a track record of success across a range of genres, both in the UK and globally. Led by Richard and Anna, Love has a hugely talented team with exciting plans for the future. We are really looking forward to supporting them as they build on their relationships with different broadcasters throughout the industry and helping them to grow the business”.

     

    Love Productions joint chief creative officers Richard McKerrow and Anna Beattie said, “We are extremely excited by the prospect of a partnership with Sky. We feel it’s the perfect time to be working with a group who can help us realise our creative and commercial potential and fulfil all of our international ambitions for the Love brand. Love has always sought to be a pioneering company, launching new ideas and breaking new ground. Sky feels like a company of the future, full of dynamic and extremely creative leaders who will back our independent spirit and are keen to support all our future ambitions.”