Twenty-First Century Fox 2013 Annual Report Download - page 18

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FOX Broadcasting Company (“FOX”)
FOX has 205 FOX Affiliates, including 18 stations owned and operated by the Company, which reach
approximately 99% of all U.S. television households. In general, each week FOX regularly delivers to its
affiliates 15 hours of prime-time programming and 90 minutes of late-night programming on Saturday. FOX’s
prime-time programming features such series as New Girl,The Following, Raising Hope,The Simpsons,Bones,
The Mindy Project and Glee and the upcoming return of the thriller 24; unscripted series such as American Idol,
The X Factor and So You Think You Can Dance; and various specials. In addition, a significant component of
FOX’s programming consists of sports programming, with FOX providing to its affiliates live coverage
(including post-season) of the National Football Conference of the National Football League (the “NFL”) and
MLB, as well as live coverage of the Sprint Cup Series of the NASCAR and college football, UFC and
international soccer. FOX also airs a two-hour block of direct response programming on Saturday mornings
provided by Worldlink Ventures (“Worldlink”), a media sales firm. FOX’s agreement with Worldlink extends
through the 2014-2015 broadcast season.
FOX’s prime-time line-up is intended to appeal primarily to target audiences of 18 to 49-year old adults, the
demographic group that advertisers seek to reach most often, with an emphasis on the difficult to reach 18 to
34-year old adult demographic coveted by advertisers. During the 2012-2013 traditional September to May
broadcast season, FOX ranked first in prime-time programming among adults ages 18 to 34 and second in prime-
time programming based on viewership of adults ages 18 to 49 (based on Live+7 ratings). This is the 11th
consecutive year FOX has ranked first among adults ages 18 to 34 (2002-2003 to 2012-2013) and the 13th
consecutive year FOX has ranked first among teens ages 12 to 17 (2000-2001 to 2012-2013). FOX has ranked
first among adults ages 18 to 49 eight out of the past 10 years. The median age of the FOX viewer is 46 years, as
compared to 49 years for NBC, 53 years for ABC and 55 years for CBS.
FOX obtains programming from major television studios and independent television production companies
pursuant to license agreements. The terms of those agreements generally provide FOX with the right to broadcast
a television series for a minimum of four seasons.
National sports programming is obtained through license agreements with professional or collegiate sports
leagues or organizations. FOX’s current licenses with the NFL, MLB, college football conferences, NASCAR
and UFC are secured by long-term agreements, including recent extensions of the NFL, MLB and NASCAR
national rights.
FOX provides programming to the FOX Affiliates in accordance with affiliation agreements of varying
durations, which grant to each affiliate the right to broadcast network television programming on the affiliated
station. Such agreements typically run three or more years and have staggered expiration dates. These affiliation
agreements generally require FOX Affiliates to carry FOX programming in all time periods in which FOX
programming is offered to those affiliates, subject to certain exceptions stated in the affiliation agreements.
FOX also distributes programming through its network-branded website and FoxNow application and
licenses programming for distribution through the websites and applications of cable television systems, direct
broadcast satellite operators, telecommunications companies and online video distributors.
MyNetworkTV
At the beginning of the 2009-2010 television season, MyNetworkTV transitioned to a new programming
distribution service, Master Distribution Service, Inc., distributing two hours per night of original and off-
network programming from Twentieth Television and other third party syndicators to its affiliates. As of June 30,
2013, MyNetworkTV had 177 affiliates, including 10 stations owned and operated by the Company, reaching
approximately 96% of U.S. households.
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