COMPANY

21^st Century Fox is a world premier portfolio of cable, broadcast, film, pay TV and satellite assets extending across six continents. With an audience of more than 1.8 million subscribers whom speak approximately 50 local languages daily, 21^st century Fox is a home to global portfolio cable and broadcasting networks and properties, including FOX, FX, FXX, FXM, FS1, Fox News Channel, Fox Business Network, FOX Sports, FOX Sports Networks, National Geographic Channels, STAR India, 20 local television stations in the U.S. and more than 300 international channels.[2]

BACKGROUND

Rupert Murdoch founded 21^st Century Fox on June 28, 2013 when he decided to split the company’s predecessor, News Corporation, into two separate media properties. Murdoch believed the split would “unlock the true value of both companies and their distinct assets, enabling investors to benefit from their separate strategic opportunities,” which he also proposed would allow for each division to gain more focused management. 21^st Century Fox primarily deals in the film and television industries.

KEY EXECUTIVES

 

 

 

 

 

 

 

 

 

 

FINANCIALS

In the 2015 fiscal year, the cable networks business assisted in driving the performance of 21st Century Fox by gaining double digits in affiliates as well as advertising revenue. At its core, the sports and news networks have assisted in the development and growth of 21st Century Fox this year. They have faced a few concerns such as change in foreign currency exchange rates as well as interest rates and stock prices, however, they are working to manage these potential risks and concerns. There is currently no 2016 fiscal year report. [7]

BUDGET CUTS

Due to financial troubles from fiscal year 2015, 21^st Century Fox has entered 2016 seeking to cut $250 million in expenses for the current fiscal year, primarily through buyouts amid unprecedented challenged in its core television and film businesses. [8] Because of higher programming and marketing costs, along with an increasingly turbulent media environment, Fox’s corporate bottom line has been under increased financial pressure. Consumers are switching to digital platforms for entertainment and are either using their pay-TV subscriptions less or are canceling them all together, resulting in less revenue for Fox and other programming companies that rely heavily on cable programming fees for profit.

21^st Century Fox intends to trim its West Coast workforce to help reach the cost-reduction goal and has been offering ‘generous’ benefit packages to employees at Fox Networks who resign voluntarily. Failure to meet the cost-reduction goal through voluntary buyouts will most likely result in job cuts for employees and additional restructuring for the company.[9]

INVESTMENTS

Despite early financial challenges for the fiscal year 2016, 21^st Century Fox has made some seemingly wise investments, many of which include joining the U.K. satellite TV operator, Sky, to lead the raising of $15 million in the Series B for TV startup, FuboTV. [11] FuboTV was launched in January 2015 and is the fastest-growing virtual MVPD in the U.S., as it bundles sports TV networks with entertainment content that complements its core offering. It is also currently the second largest service and top provider for live streaming of soccer in the U.S. FuboTv plans on using the funding provided by 21^st Century Fox and Sky to expand its lineup of TV networks and build new features to enhance the viewing experience for its audience members. [12] While neither investor is currently licensing content to FuboTV, both 21^st Century Fox and Sky intend to work closely with this startup as it continues to grow.

PARTNERSHIPS

To commemorate the series final of Fox’s groundbreaking reality series, “American Idol,” 21^st Century Fox is partnering with the National Association for Music Education’s Give a Note Foundation to distribute a new wave of 21^st Century Fox Give a Note Grants. [14] The grants will support up to 20 under-funded music education programs at schools across the United States. The 15-season television program has not only created and discovered some of music’s biggest stars, but has also inspired millions of young students across the country to take part in their school’s music programs. 21^st Century Fox is very proud to honor American Idol’s legacy by backing the Give a Note Foundation and supporting music education act schools across America. [15]

OVERVIEW

While it is clear that 21^st Century Fox has left fiscal year 2015 with some financial challenges, it is also apparent that the company is making strategic strides in the right direction in attempt to gain more suitable finances for the current fiscal year moving forward. The company is not only making an attempt to cut its spending by $250 million through buyouts, but is also investing its money in more promising projects and programs such as FuboTV. Unlike the current state of the entertainment industry’s media landscape, startups like FuboTV, which are more in line with popular media consumption methods like online streaming, are more likely to provide a stable source of revenue. Lastly, despite the financial turmoil and transitions the company has been experiencing, 21^st Century Fox is still upholding the profound legacy of one of its biggest television hits, American Idol, by participating in partnership with the Give a Note Foundation to provide under-funded music programs in schools across America with grants.

Sources:

1. 21^st Century Fox Logo. com. Retrieved: April 24, 2016.

2. Busniess Wire. (March 10, 2016). “FuboTV – the Leading Sports-First Virtual MVPD – Raises $15 Million Series B Investment Led by 21^st Century Fox and Sky.” Business Wire. Web. Retrieved: April 24, 2016.
3. Rupert Murdoch Photo.com. Retrieved: April 24, 2016.

4. Lachlan K. Murdoch photo. The Age. Retrieved: April 24, 2016.

5. Chase Carey Photo. Hollywood Reporter. Retrieved: April 24, 2016.

6. James Murdoch Photo. Deadline. Retrieved: April 24, 2016.

7. 21^st Century Fox Annual Fiscal Report. com. Retrieved: April 24, 2016.

8. The Guardian. (Feb. 1, 2016). “Fox Seeks $250m Worth of Staff Cuts.” The Guardian. Web. Retrieved: April 24, 2016

9. Flint, Joe and Keach Hagey. (Feb. 1, 2016). “Fox, Offering Buyout, Targets $250 Million in Cost Cuts.” The Wall Street Journal. Web.

10. FuboTV Logo. Web. Retrieved: April 24, 2016.

11. Spangler, Todd. (March 9, 2016). “Soccer-Streaming Startup FuboTV Raises $15 Million Led by 21^st Century Fox, Sky.” Variety. Web. Retrieved: April 24, 2016.

12. Busniess Wire. (March 10, 2016). “FuboTV – the Leading Sports-First Virtual MVPD – Raises $15 Million Series B Investment Led by 21^st Century Fox and Sky.” Business Wire. Web. Retrieved: April 24, 2016.

13. 21^st Century Fox. (April 1, 2016). “21^st Century Fox Partners with Give a Note Foundation to Honor ‘American Idol’ Series Finale by supporting Music Programs at U.S. Schools.” CSRWire. Web. Retrieved: April 24, 2016

14. James, Meg. (February 1, 2016). “Fox to Reduce Workforce; Targets 425 million Budget Cuts.” Los Angeles Times. Web. Retrieved: April 24, 2016

15. Flint, Joe and Keach Hagey. (Feb. 1, 2016). “Fox, Offering Buyout, Targets $250 Million in Cost Cuts.” The Wall Street Journal. Web.