21st Century Fox (TV)

Posted on September 30, 2015 by Jason Mussman

Jason Mussman

21st Century Fox Corporate Logo [1] Source: 21st Century Fox

21^st Century Fox was formed on June 28, 2013 with the division of News Corp into two separate companies, 21^st Century Fox (The Entertainment Properties) and News Corp (The Publishing Properties) [2]. Founded by Rupert Murdoch, one of the most recognized names in the entertainment industry today, 21^st Century Fox was created to bring about the future of film and broadcasting industry [3]. Rupert Murdoch still remains Executive Chairman of the Board but on July 1^st 2015 Rupert Murdoch’s son, James Murdoch, took over as CEO [4]. 21^st Century Fox has a broad portfolio of global assets in the broadcast and film industry. 21^st Century Fox’s most prominent broadcast network are the FOX Networks.

Early in June 2015 21st Century Fox and News Corp. reached an agreement to move their world headquarters [5]. The new headquarters will be at the second World Trade Center site. The building being developed by Bjarke Ingels Group, will house studios, be completely state of the art and will put a new more meaningful location to 21st Century Fox [5]

21st Century Fox

Two World Trade Center

New York, NY 10006

…….

Executive Leadership

Rupert Murdoch [6]
Executive Chairman – 21st Century Fox. Source: Eva Rinaldi

Lachlan Murdoch [7] Executive Chairman – 21st Century Fox. Source: Deadline

James Murdoch [8]
CEO – 21st Century Fox. Source: Deadline

Background

21^st Century Fox reaches over 1.8 Billion customers daily through its portfolio of film, cable and broadcast networks [9]. 21^st Century Fox has assets in both the broadcast

Some assets owned by 21st Century Fox [11] Source: 21st Century Fox

and cable networks including, FOX, YES, FX, FXX, FOX News Channel, FOX Sports and the most recently acquired, National Geographic [9].

The FOX network currently has 16 shows in its fall lineup with hit show Empire, leading the ratings [10].

Financials

Fox Sports logo [13] Source: Fox Sports

21^st Century Fox continually innovates, standing behind its cable networks to drive revenue growth. The 21^st Century Fox brand is globally recognizable because of its strategy to acquire and keep viewers. Sports and News programming is the cornerstone of this strategy [12]. 21^st Century Fox continues to combat cord cutting by continuing to improve on its Sports and News content and programming [12]. These two types of content bring in a live audience and help keep 21^st Century Fox on top of the marketplace.

21st Century Fox Annual Revenue [15] Source: 21st Century Fox Investor Relations

In Fiscal 2015, 21^st Century Fox’ revenue dropped 9% from $31,867,000,000 to $28,987,000,000 [12]. The drop in revenue was due in large part to the sale of its direct broadcast networks [12]. During this same period, 21^st Century Fox held nearly 25% of the market share of all Cable Programming, second to only Disney [14]. While Television made up approximately 17% of 21^st Century Fox total revenue, it dropped 8%, or $401 Million from 2014 [12]. At the same time, advertising sales decreased by 14%. The main cause of the falling prices was due to lower ratings on the FOX networks entertainment shows [12].

Screenshot of market share for Cable Network Programming [14] Source: CSIMarket

21st Century Fox trades on the Nasdaq under the ticker FOXA. Today, December 1^st 2015, the share price for 21^st Century fox is $30.26 [16]. This is a 5.56% decline from fiscal 2014 where the stock sat at $35.79 [16]. As stated earlier, the decline in stock price was due to in large part to poor ratings from Fox’s entertainment shows [12].

FOXA Stock Price [27] Source: Google Finance

National Geographic Acquisition

National Geographic Cover – June 1985 [28] Source: National Geographic

With the goal of saving National Geographic and expanding on its efforts in science and innovation, National Geographic and 21^st Century Fox agreed on a Joint Venture. The deal took place on September 9^th creating the for-profit Joint Venture National Geographic Partners [17]. For $725 Million 21^st Century Fox will take control of 73% of National Geographic [18]. This merger will give 21^st Century Fox new assets on both the television and print front [19]. This merger will help both National Geographic and 21^st Century Fox, and will provide both companies with new assets in both content and financials. The National Geographic endowment will increase to $1 Billion, providing more finances for innovation and research throughout the world [18]. This move will help 21^st Century Fox reach a broader audience as well as give it more assets on the digital platform.

Empire

Promo for Empire [29] Source: Fox

January 7^th 2015, FOX Network, the leading cable network for 21^st Century Fox, premiered a new show that would significantly impact 21^st Century Fox as well as the world around it. Empire, a show that centers on African American artists and executives, are all seen fighting for control of a music empire [21]. Empire continually leads in ratings each week, bringing in massive revenue for 21^st Century Fox [20]. Currently, Empire is the second priciest show for advertisers, coming in just behind Sunday Night football. A typical ad spot for Empire, costs just around $500,000 [32]. While Empire brings in a diverse audience, it is one of the highest rated shows among African American viewers [22]. Empire is doing more than just helping Fox on screen. Because the show centers on the music industry, the show is also constantly creating new songs and new stars [22].

Presidential Debate

Tweet by Justin Haskins after 3rd Republican Primary Debate [30] Source: Justin Haskins, Twitter

Tweet by Mark Simone after 3rd Republican Primary Debate [31] Source: Mark Simone, Twitter

After rival network CNBC inappropriately handled the moderation of the third Republican Presidential primary debate, the RNC suspended its future debate scheduled with CNBC [23]. At this time FOX Business stepped up and requested to host the next debate.

The RNC agreed and stated that “Fox Business won’t become a character in the campaign soap opera”, something that CNBC was accused of doing in the prior debate [23]. CEO James Murdoch later stated that he was going to show America the way a real debate should be handled, giving time to the real issues of the economy and the future and not an entertainment show [23]. This move for FOX will not only help with ratings, it will also bring in significant cash. Because of its estimated 14 million viewer audience, it is estimated that each 30 second spot, will bring into Fox roughly $250,000 [23].

The Future

Assets of 21st Century Fox [26] Source: 21st Century Fox

21st Century Fox will continue to innovate and continue to bring in revenue for its shareholders. With its diverse and ever expanding portfolio, 21^st Century Fox will continue to be a a leader in the global entertainment industry. By continually investing and utilizing innovative methods to fight against cord cutting, 21^st Century Fox will continue to grow and produce strong earnings for its investors.

Breaking News!

The Primetime Emmy nominated show Bones is currently suing 20th Century Fox, a division of 21st Century Fox [24]. The lawsuit is being brought on by the actors and producers of the show. In the suit the plaintiffs claim that Fox made “sweetheart deals” that cheated them out of tens and millions of dollars [25]. Deschanel and Boreanaz, two of the stars of Bones, claim that they are contractually entitled to 3% of the shows profits. 21st Century Fox has not commented on the suit [24].

[1] “21st Century Fox.” Logopedia. Accessed December 02, 2015. http://logos.wikia.com/wiki/21st_Century_Fox.

[2] “21st Century Fox.” 21st Century Fox. Accessed December 01, 2015. https://www.crunchbase.com/organization/21st-century-fox#/entity.

[3] “21st Century Fox Success Story.” 21st Century Fox Profile, History, Founder, Founded, Ceo. Accessed December 01, 2015. http://successstory.com/companies/21st-century-fox.

[4] Lieberman, David. “It’s Official: James Murdoch To Become Fox CEO Sharing Power With Lachlan.” Deadline. June 16, 2015. Accessed December 01, 2015. http://deadline.com/2015/06/fox-james-murdoch-become-ceo-1201445613/.

[5] News, Bloomberg. “News Corp. Will Move Headquarters to 2 World Trade Center.” Latest from Crains New York Business. June 02, 2015. Accessed December 02, 2015. http://www.crainsnewyork.com/article/20150602/REAL_ESTATE/150609962/news-corp-will-move-headquarters-to-2-world-trade-center.

[6] Rinaldi, Eva. “Rupert Murdoch.” Digital image. December 21, 2012. Accessed December 2, 2015. https://en.wikipedia.org/wiki/Rupert_Murdoch#/media/File:Rupert_Murdoch_-_Flickr_-_Eva_Rinaldi_Celebrity_and_Live_Music_Photographer.jpg.

[7] “Lachlan Murdoch Exits Ten.” TelevisionAU. Accessed December 02, 2015. http://televisionau.com/2014/03/lachlan-murdoch-exits-ten.html.

[8] “James Murdoch Faces Shareholder Resistance Over Board Re-Election.” Deadline. November 20, 2014. Accessed December 02, 2015. http://deadline.com/2014/11/james-murdoch-faces-shareholder-resistance-over-board-re-election-1201290216/.

[9] “Investor Relations .” Investor Relations. Accessed December 02, 2015. http://www.21cf.com/Investor_Relations/.

[10] “FOX 2015-16 Season Ratings (updated 12/1/15) – Canceled TV Shows – TV Series Finale.” Canceled TV Shows TV Series Finale. December 01, 2015. Accessed December 01, 2015. http://tvseriesfinale.com/tv-show/fox-2015-16-season-ratings-38075/.

[11] “Index of /wp-content/uploads/2014/08.” Index of /wp-content/uploads/2014/08. Accessed December 02, 2015. http://marketbusinessnews.com/wp-content/uploads/2014/08/.

[12] “21st Century Fox Annual Report.” Accessed December 2, 2015. http://tcfeuspstrgektron.blob.core.windows.net/uploadedfiles/pages/investor_relations/21cf%202015ar%20web.pdf.

[13] Accessed December 2, 2015. http://a.fssta.com/content/dam/fsdigital/media/images/migration/press-releases/2014/05/06/121913-FSO-FOXSportsLogo-PI.vresize.1200.675.high.35.jpg.

[14] “FOXA’s Competition by Segment and Its Market Share.” Csimarket. Accessed December 1, 2015. http://csimarket.com/stocks/competitionSEG2.php?code=FOXA.

[15] “21st Century Fox Annual Report.” Accessed December 1, 2015. http://tcfeuspstrgektron.blob.core.windows.net/uploadedfiles/pages/investor_relations/21cf%202015ar%20web.pdf.

[16] “Twenty-First Century Fox Inc.” : NASDAQ:FOXA Quotes & News. Accessed December 02, 2015. https://www.google.com/finance?cid=25639.

[17] Laylin, Tafline. “National Geographic Contributors Embrace Fox Deal with Ample Cautio.” The Guardian. September 16, 2015. Accessed December 2, 2015. http://www.theguardian.com/media/2015/sep/16/national-geographic-21st-century-fox-merger-rupert-murdoch.

[18] “National Geographic Society and 21st Century Fox Agree to Expand Partnership.” National Geographic Society Press Room. September 09, 2015. Accessed December 02, 2015. http://press.nationalgeographic.com/2015/09/09/national-geographic-society-21st-century-fox-agree-to-expand-partnership/.

[19] Farhi, Paul. “National Geographic Gives Fox Control of Media Assets in $725 Million Deal.” Washington Post. September 9, 2015. Accessed December 02, 2015. https://www.washingtonpost.com/lifestyle/style/national-geographic-magazine-shifts-to-for-profit-status-with-fox-partnership/2015/09/09/7c9f034e-56f0-11e5-8bb1-b488d231bba2_story.html.

[20] Porter, Rick. “Rock Steady: The Most Consistently Rated Shows of Fall 2015.” TV By The Numbers by Zap2itcom. November 26, 2015. Accessed December 02, 2015. http://tvbythenumbers.zap2it.com/2015/11/26/rock-steady-the-most-consistently-rated-shows-of-fall-2015/.

[21] “Empire.” IMDb. Accessed December 02, 2015. http://www.imdb.com/title/tt3228904/.

[22] “A SPRAWLING EMPIRE: HOW FOX’S HIT TV SHOW AFFECTS MUSIC.” Nielsen. September 23, 2015. Accessed December 2, 2015. http://www.nielsen.com/us/en/insights/news/2015/a-sprawling-empire-how-foxs-hit-tv-show-affects-music.html.

[23] Gold, Hadas. “For Debate, Fox Business Aims to Be the Anti-CNBC.” POLITICO. November 9, 2015. Accessed December 02, 2015. http://www.politico.com/story/2015/11/fox-business-republican-debate-cavuto-bartiromo-215634.

[24] Patten, Dominic. “Fox “Cheated” ‘Bones’ Stars Out Of More Than $100M, New Profit-Participation Suit Claims.” Deadline. November 30, 2015. Accessed December 02, 2015. http://deadline.com/2015/11/bones-lawsuit-david-boreanaz-emily-deschanel-fox-barry-josephson-1201647064/.

[25] Balloni, Matthew. “‘Bones’ Producer Sues Fox for “Accounting Chicanery,” Claims Top Execs “Threatened” Him.” The Hollywood Reporter. November 25, 2015. Accessed December 02, 2015. http://www.hollywoodreporter.com/thr-esq/bones-producer-sues-fox-accounting-843854.

[26] Mussman, Jason Taylor. 21st Century Fox Brands. Digital image. Accessed December 1, 2015.

[27] “Twenty-First Century Fox Inc.” : NASDAQ:FOXA Quotes & News. Accessed December 02, 2015. https://www.google.com/finance?cid=25639.

[28] “Thoughts on Afghan Girl’s Third Cover Appearance as National Geographic Looks Back, Forward – Reading The Pictures.” Reading The Pictures. October 02, 2013. Accessed December 02, 2015. http://www.readingthepictures.org/2013/10/thoughts-on-afghan-girls-third-cover-as-national-geographic-looks-back-forward/.

[29] “Empire Review – Where Does Your Loyalty Lay? – Screen Sirens TV.” Screen Sirens TV. October 02, 2015. Accessed December 02, 2015. http://screensirenstv.com/empire-review-where-does-your-loyalty-lay/.

[30 ]Haskins, Justin. “CNBC Has Totally Discredited Itself Tonight with This Travesty of a Debate. The Questions Have Been Atrocious and Biased. #GOPDebate.” Twitter. October 28, 2015. Accessed December 02, 2015. https://twitter.com/TheNewRevere/status/659551198098386944?ref_src=twsrc%5Etfw.

[31] Simone, Mark. “The Big Winner of This Debate – FOX Business Network. CNBC Looking Too Biased, a Little Sleazy and Untrustworthy #GOPDebate #CNBCGOPDebate.” Twitter. October 28, 2015. Accessed December 02, 2015. https://twitter.com/MarkSimoneNY/status/659548475764420608?ref_src=twsrc%5Etfw.

[31] Poggi, Jeanine. “TV Ad Pricing Chart: ‘Sunday Night Football,’ ‘Empire’ Are Broadcast’s Most Expensive Ad Buys.” Advertising Age Media RSS. September 24, 2015. Accessed December 02, 2015. http://adage.com/article/media/ad-pricing-chart-sunday-night-football-empire-broadcasts-most-expensive-ad-buys/300516/.

Relativity Media

Posted on November 4, 2013 by Erin Morris

By Erin Morris

Courtesy of Relativity Media

RELATIVITY MEDIA
9242 Beverly Blvd. Suite 300
Beverly Hills, CA 90210
Telephone: 310.724.7700
Website: http://www.relativitymedia.com/

KEY EXECUTIVES

Ryan Kavanaugh, CEO and Founder [1]

[1]

Tucker Tooley, President [1]

[1]

Happy Walters, Co-Chief Operating Officer [1]

[1]

Gregory Shamo, Co-Chief Operating Officer [1]

[1]

HISTORY

Ryan Kavanaugh and Lynwood Spinks, former venture capitalists and business consultants, founded Relativity Media in 2004. The film studio originally began as a middleman agent, making deals with other studios and then arranging financial support with banks. However, in 2009, Relativity acquired Rogue Pictures from Universal, and since has been involved in developing, creating, and distributing films its own films. Over the last decade, the studio has produced, distributed or structured financing for roughly 200 films, earning over $20 billion worldwide and garnering a total of 73 Oscar® nominations for motion pictures such as The Social Network and The Fighter. [1]

FINANCIALS

Relativity Media is not a publically traded company, and as such, specific quarterly information is not available. However, box office and studio market share information is readily accessible.

Relativity ranks 9^th among film distributors for the year with a 2.3% market share as of November 20^th, 2013. The studio also finished 9^th in 2012, but with a 1.9% market share. However, with other studios gearing up for Oscar season and Relativity having just one upcoming release, both the market share and ranking might go down. [2] [3]

The studio has grossed $217,267,120 in 2013 thus far, with $104,312,782 of it earned by its four fall releases: The Family, Don Jon, Romeo and Juliet, and Free Birds. [2] [4] [5] [6] [7]

RECENT RELEASES

Don Jon

[5]

Longtime actor Joseph Gordon-Levitt made his writing and directorial debut with Don Jon, the story of a charming New Jersey man who struggles with finding true intimacy because of his porn addiction. Scarlett Johansson, Julianne Moore, and Tony Danza also starred in the critically acclaimed controversial film. [5]

Don Jon, which was originally produced by Voltage Pictures for $6 million, premiered at the 2013 Sundance Film Festival where Relativity acquired the rights for $4 million. [8]

The film began its theatrical run on September 27th in 2,400 theaters with a $9 million opening weekend. Don Jon went onto gross over $24 million. [5]

Upon first glance, the numbers look astounding for Relativity – a $24 million gross on a $6 million production budget. However, when Relativity acquired the rights to Don Jon at Sundance, the studio pledged to a $27 million marketing budget. [8]

Relativity distribution chief Kyle Davies still maintained that they were pleased with the film’s performance, citing the film’s strong reviews as a success and that the studio wants “to be in the Joseph Gordon-Levitt business.” [8]

Romeo and Juliet

[9]

Relativity also acquired the rights to Romeo and Juliet, little known Italian filmmaker Carlo Carlei’s 2013 adaptation of the Shakespeare classic. Oscar, Emmy, and Golden Globe winner Julian Fellowes, creator of BBC darling Downtown Abbey, wrote the screenplay. Hailee Steinfeld, who rose to fame in 2010 when she received an Oscar nomination at 14 years old for her performance in True Grit, and Douglas Booth portrayed the titular star crossed lovers. Damian Lewis of Homeland fame played Lord Capulet, Stellan Skarsgård acted as Prince of Verona, and Oscar nominee Paul Giamatti portrayed Friar Laurence. [6] [9] [10]

Oddly, given the star power attached to the project, Relativity gave Romeo and Juliet a limited release. It opened in just 461 theaters on October 11^th, 2013 and earned $520,116 during its opening weekend and a mere $1,143,238 to date. [6]

The film received mixed reviews from critics, who called the modern adaption – which kept the traditional Verona setting but not the Shakespearean language – muddled, dull, and dumbed-down. [11]

FUTURE RELEASES

Out of the Furnace

[12]

Relativity’s remaining release for year is Out of the Furnace, a drama starring Christian Bale that will be released December 6^th, 2013. The star-studded cast also includes the likes of Oscar nominees Casey Affleck, Woody Harrelson, Sam Shepard, Willem Dafoe, Oscar winner Forest Whitaker, and Zoe Saldana of Avatar and Star Trek fame. [12]

The film focuses on Bale who plays a blue-collar man that seeks justice when his younger brother – a war veteran that got involved in a dangerous crime ring – disappears and the police fail to search for him. [12]

Directed by the critically acclaimed writer and director of Crazy Heart Scott Cooper, the film has already gained Oscar buzz for Bale, who won the statue back in 2010 for The Fighter, and Affleck, who was nominated once in 2007 for The Assassination of Jesse James by the Coward Robert Ford. [13]

Given the film’s early December release date, falling between the big Thanksgiving and Christmas opening weekends, Out of the Furnace will not directly go up against any other major films and faces little competition at the box office.

A trailer for the film can be viewed here.

IN THE NEWS

From the Theater to the Classroom

[14]

Relativity didn’t appear to believe in Romeo and Juliet enough to advertise heavily or give it a wide release, but the studio did use the film to market their latest venture: the Relativity School.

Relativity will become the first major motion picture studio to invest in forming a school for filmmaking and performing arts. Pending the State of California’s approval, Relativity will begin accepting applications in March of 2014 and class will begin four months later. [14]

On October 4^th, 2013, Relativity previewed Romeo and Juliet at the New York’s All-American High School Film Festival to promote its college. The studio also offered the festival’s young filmmakers – and prospective students – a meet and greet with Relativity President Tucker Tooley. [15]

The school, located in Downtown Los Angeles, will offer degrees in Master of Fine Arts, Bachelor of Science, Bachelor of Fine Arts, and Associate of Fine Arts in fields such as Performing Arts, Entrepreneurship in Media, and Film Production. Relativity has called the school a place where “higher education meets Hollywood” due to industry insiders creating the curriculum and it being located on a working studio lot. [14]

From the Big Screen to the Small Screen

[17]

Relativity has branched out not only into education but also television. On October 6^th, 2013 it was announced that the National Geographic Channel will produce a scripted TV series based on the Relativity film Act of Valor. Act of Valor, a war film about an elite team of US Navy SEALs, garnered the studio over $80 million after its February 2012 release. [16] [17]

CEO Ryan Kavanaugh cited the 2010 Relativity-distributed Nev Shulman documentary Catfish – which later spawned a popular MTV reality series by the same name – as inspiration for the business venture. Production for the Act of Valor series will start in early 2014. It will be the first scripted show for both National Geographic and Relativity. [16]

[19]

Act of Valor isn’t the only Relativity movie that’s being given the TV treatment. It was announced on October 6^th that the Bradley Cooper flick Limitless will have a spin-off series as well. The star-studded thriller brought in over $160 million after it premiered in March 2011. Cooper will serve as an executive producer on the series. [18] [19]

SOURCES

[1] About Relativity Media – Company History and Executive Biographies and Images. RT 11/13/13

[2] Box Office Mojo Relativity Media Results for 2013. RT 11/15/13

[3] Box Office Mojo Relativity Media Results for 2012. RT 11/15/13

[4] The Family Box Office Results. RT 11/15/13

[5] Don Jon Box Office Results. RT 11/15/13

[6] Romeo and Juliet Box Office Results. RT 11/15/13

[7] Free Birds Box Office Results. RT 11/15/13

[8] Hollywood Reporter Article on Don Jon’s Production and Marketing Budgets. RT 11/15/20

[9] Relativity’s About Romeo and Juliet. RT 11/15/20

[10] IMDB for Julian Fellowes. RT 11/15/20

[11] Rotten Tomatoes Reviews of Romeo and Juliet. RT. 11/15/20