{"id":28398,"date":"2016-10-16T18:23:41","date_gmt":"2016-10-16T22:23:41","guid":{"rendered":"https:\/\/bejone03.expressions.syr.edu\/trf235\/?p=28398"},"modified":"2016-11-30T10:51:50","modified_gmt":"2016-11-30T15:51:50","slug":"21st-century-fox-5","status":"publish","type":"post","link":"https:\/\/bejone03.expressions.syr.edu\/trf235\/2016\/10\/16\/21st-century-fox-5\/","title":{"rendered":"21st Century Fox"},"content":{"rendered":"
Georgia Velkes, Jenna Levine, and Gabrielle Marzolf<\/pre>\n
Overview<\/strong><\/p>\n
\"21st-cnetury-fox-logo\"<\/p>\n
In 1985, News Corporation, a newspaper company from Australia owned by Rupert Murdoch, acquired Twentieth Century Fox Film Corporation. Murdoch subsequently
\nbuilt the company into one of the biggest media companies in the world.\u00a0<\/span>[1]<\/a>
\n<\/span><\/span><\/p>\n
\"Rupert<\/a>
Rupert Murdoch
Executive Chairman<\/p><\/div>\n
In 2012, News Corporation split into two companies. News Corporation kept all the newspaper assets and media assets were put into a new company named\u00a021st Century Fox<\/a><\/span>. 21st Century Fox\u00a0has holdings<\/a> in multiple media businesses internationally and in the United States, including broadcast and cable television networks like\u00a0FOX<\/a>, FX<\/a>, Fox News Channel<\/a>, and\u00a0National Geographic<\/a>, which reach over\u00a01.8 billion subscribers. <\/span>[2]<\/span><\/a> The film company, 20th Century Fox<\/a><\/span>, is one of the Big Six\u00a0Hollywood Studios that produce and distribute films worldwide.<\/span><\/p>\n
 <\/p>\n
 <\/p>\n
Financials<\/strong><\/p>\n
The company had a strong fiscal quarter ending September 30, 2016 with total revenue increasing 7% to $6.51 billion and a net income increase of 22% to $821 million. <\/span>[3] <\/span><\/a>A significant portion of that boost came from the Cable Network Programming division.<\/span><\/p>\n
\"Gretchen<\/a>
Gretchen Carlson, former anchor at Fox News<\/p><\/div>\n
The Fox News Channel experienced significant growth,\u00a0despite the\u00a0Roger Ailes<\/a>\u00a0scandal in the beginning of the quarter, in which former\u00a0<\/span>anchor Gretchen Carlson sued Ailes for sexual harassment<\/a>. Fox settled<\/a> the lawsuit,\u00a0which incited controversy throughout the company, and Ailes resigned. During the lawsuit, Fox faced great controversy and criticism, which increased when Ailes left the company with a $40 million exit agreement<\/a>.<\/span><\/p>\n
\"Roger<\/a>
Roger Ailes, former CEO\/Chairman of Fox News<\/p><\/div>\n
In spite of the controversy, cable revenues increased 10% to $3.81 billion, driven by higher ratings and advertising revenue. The US presidential election, broadcasted on Fox News, increased domestic advertising revenue by 6% and gained the network more viewers. The film business revenue increased more than 6.8% to $1.91 billion which is credited to the theatrical release of \u201cIndependence Day: Resurgence\u201d<\/a> and the home entertainment release of \u201cDeadpool\u201d<\/a> during the quarter. <\/span>[4]<\/span><\/a> The positive earnings release showed a 14.6% rise in the stock price over the past 3 months, gaining $3.62. <\/span>[5]<\/span><\/a><\/p>\n
 <\/p>\n
New Licensing Agreements<\/strong><\/p>\n
As the television industry and television consumption transforms, 21<\/span>st<\/span> Century Fox\u2019s goal is to become a central player in the new digital age. Fox Networks Group recently made a deal with AT&T Inc. and its DirecTV subsidiary. DirectTV launched a streaming service called DirecTV Now<\/a> that allows viewers to stream their programming instead of watching it via satellite transmission. Fox News, Fox Business, FX and many more Fox networks will be available on AT&T\u2019s live streaming service in addition to the content offered to DirecTV subscribers.\u00a0<\/span>[6]<\/span><\/a>\u00a0Fox has also made a licensing deal with Hulu to carry Fox channels on the new over-the-top (OTT) live TV subscription service Hulu will soon release.\u00a0<\/span>[7]<\/span><\/a> The deal includes the FOX broadcast network along with the Fox Sports channels, National Geographic and more. <\/span><\/p>\n
While 21<\/span>st<\/span> Century Fox licenses\u00a0content to companies that partner\u00a0programming with new technology like OTT providers, issues have arisen\u00a0with subscriptions services like Netflix. In September, 21<\/span>st<\/span> Century Fox filed a lawsuit<\/a> against Netflix for illegally \u201cpoaching\u201d two under-contract executives: Tara Flynn, the former VP of Creative Affairs at Fox21<\/a>, and Marcos Waltenberg, the former VP of Promotions at 20th Century Fox<\/a>.<\/span>\u00a0<\/span>[8]<\/a>\u00a0<\/span>In retaliation, Netflix sued 21st Century Fox for the alleged use of illegal contract clauses<\/a>. The outcome of these lawsuits could potentially impact how\u00a0businesses manage employment contracts in the future. <\/span>[9]<\/span><\/a><\/p>\n
 <\/p>\n
TV Ratings<\/strong><\/p>\n
This past quarter Fox Networks Group saw a huge increase of ratings with not only the presidential election and Fox News, but also the FOX network as a result of their rights to the World Series. <\/span><\/p>\n
\"Fox<\/a>
Fox News (http:\/\/www.foxnews.com)<\/p><\/div>\n
Huge interest in this year\u2019s presidential election saw primetime\u00a0<\/span>coverage reach a total of 71 million viewers, and Fox News channel\u2019s 12.2 million viewers beat out CNN\u2019s 11.2 million views for the most viewers of any cable channel for the 7pm-3am time slot, leaning toward a generally conservative audience. <\/span>[10]<\/span><\/a> \u00a0When the election results announced Donald Trump as president elect, Fox News Channel maintained over 10 million viewers<\/a>. <\/span><\/p>\n
This fall, Fox\u2019s overall ratings for the season rose from fourth to first place, with nearly 40 million viewers and a 12.1 rating with the 18-49 demographic. Previously, NBC was the number one network, however the World Series ratings boosted Fox to the top with an 8% advantage over its competitors. <\/span>[11]<\/span><\/a> Furthermore, unlike other networks, Fox has not experienced a ratings drop<\/a> related to professional football broadcasting. Analysts suggest that Fox retained viewers because the network does not show any primetime games and delivers the best overall Sunday coverage including their post-show program, The OT<\/a>. <\/span>[12]<\/span><\/a> Over Thanksgiving, Fox Sports aired the Washington Redskins versus Dallas Cowboys game<\/a>, which, with 35.1 million viewers, was the highest rated program of the holiday and the highest rated NFL game to date.\u00a0<\/span>[13]<\/span><\/a><\/p>\n
<\/div>\n
20th Century Fox<\/strong><\/p>\n
\"20th<\/a>
20th Century Fox<\/p><\/div>\n
Unlike the other business divisions of 21<\/span>st<\/span> Century Fox, the film studio\u00a0exhibited a weak performance over the past year, which resulted in leadership changes. Over the summer official Fox sources announced that the Chairman\/CEO of the studio, Jim Gianopulos, would leave and Stacy Snider would replace him. <\/span>[14]<\/span><\/a> Since Snider has taken over, she has made a number of changes senior management, resulting in the\u00a0<\/span>departure<\/a> of the marketing president Marc Weinstock, who left\u00a0for\u00a0Annapurna Pictures. <\/span>[15]<\/span><\/a><\/p>\n
\"Deadpool<\/a>
Deadpool (2016) official movie poster<\/p><\/div>\n
With all the personnel changes at the studio, senior management is focusing on the\u00a0<\/span>upcoming slate of movies for the next two to three years. After the commercial<\/a>\u00a0<\/span>success<\/a> of \u201cDeadpool\u201d, the studio faces pressure to release similarly profitable films. “Avatar 2”<\/a> has been rumored to be released around Christmas 2018, so the studio will face pressure to follow up the highest grossing film of all time<\/a> at the global box office. Fox’s film adaption of “Assassin’s Creed” generated\u00a0anticipation<\/a> of how the company would transition the content from a video game format to the big screen. [16]<\/a><\/span><\/p>\n