Twenty-First Century Fox 2007 Annual Report Download - page 6

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Our established properties – assets like our newspapers, film studios and broadcast
television properties – maintain valuable brands and loyal audiences, while remaining
the foundation upon which we develop and expand all our activities, as well as
generating reliable cash flows to fund our new businesses. The businesses that I call our
developing operations are already delivering profits but still have room for stronger
growth as they continue to further penetrate new markets. Our third-generation assets
– our newest businesses – are just starting their growth cycles and are poised to become
the Company’s future growth drivers.
This “virtuous cycle” has served us well. We have consistently broadened our offerings,
from newspapers to feature film to free television to cable channels to books to pay-
television to many Internet offerings. And we have expanded our reach, from Australia
to the U.K., then to the U.S. to Continental Europe and to East and South Asia.
One of last year’s best examples of this formula at work was our Cable Network
Programming, a segment containing established, developing and new channels.
Nearly every asset in this segment contributed more than its fair share to the bottom
line. Among our established channels, the FOX News Channel showed strong growth
during the year. The ongoing renegotiations of the Channel’s affiliate deals, coupled
with strong advertising sales, drove record operating income and revenue growth. FX,
another of our established channels, remained a leader in basic cable entertainment,
producing double digit operating income and revenue growth. The regional sports
networks, SPEED and National Geographic, also grew briskly during the year. One
particular stand-out was our Fox International Channels, a relatively unheralded
part of our cable group that nonetheless saw its profits grow strongly this year as
it expanded its channel audience to a larger global audience. We will launch the
FOX Business Network (FBN) this October. FBN has already signed deals with three
of the nation’s largest cable operators, providing the channel on day one with more
than 30 million subscribers – the largest launch of any cable channel in history. We
are confident that FBN, under the leadership of Roger Ailes and his talented team,
will be successful.
Over the past two years, we have begun to transform our Company from a traditional
media giant into a digital juggernaut. I’m pleased to say we made substantial progress
toward achieving that goal last fiscal year. Today our Internet portfolio reaches more
Rupert Murdoch
Chairman and
Chief Executive Officer
NEWS CORPORAT I O N 2007 Annual Report 5