Twenty-First Century Fox 2007 Annual Report Download - page 8

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NEWS CORPORAT I O N 2007 Annual Report
TV remains one of Hollywood’s most successful television producers, with hit shows
airing not only on the FOX network (such as 24 and The Simpsons) but also on rivals
like CBS (Shark), NBC (My Name Is Earl) and ABC (Boston Legal).
At the Television segment, the FOX Broadcasting Company was for the third year in
a row the most watched network among the coveted 18-49 demographic. American
Idol remained the most popular show on U.S. television, and hits like 24 and House
continued to draw huge audiences. Unfortunately, results for the Television segment
as a whole were mixed. MyNetworkTV, launched last fall in part as replacement
programming for those stations that had
been airing the now defunct UPN Network,
garnered ratings far below expectations.
We have since reworked the lineup for the
network, placing more emphasis on movies
and reality shows, lowering production costs.
At our Asian television operations, we experienced a slowing of the strong growth
recorded in previous years. We are keeping a strong focus on our businesses at STAR
and expect operating momentum to return in late fiscal 2008.
SKY Italia achieved significant operating profit growth. This business is now a major
growth driver.
BSkyB, of which our Company owns 39 percent, added some 400,000 net subscribers,
and also two new services: residential broadband and telephony, each of which has
already attracted customers in the hundreds of thousands. The substantial costs of
bringing these services to market largely account for the decreased rates of income
and profit growth, but the business continues to thrive in a very competitive market.
Our print businesses, led by our world-famous newspapers, continued to provide
reliable cash flows. Our own newspapers remain one of the bright spots in an
otherwise troubled industry. While I share the concerns of those who fret about the
future of newspapers, I have never shared their sense of gloom. We recognize
the necessity in these times above all to ensure that our newspapers remain market
leaders – and ours most assuredly are. Investments in new color printing plants
in the U.K. are paying off, lowering costs, increasing the quality of the product and
offering new options for advertisers.
As the digital revolution accelerates, newspapers should be seen as simply one
delivery method for news organizations. Properly executed, great news brands will
expand, not contract.
7
Todayour Internet portfolio reaches
more than 160 million people globally