Twenty-First Century Fox 2013 Annual Report Download - page 20

programming controlled by DWA, domestically and internationally in all media including theatrical, all home
media formats and certain forms of television. Among TCFF's fiscal 2014 releases, TCFF currently expects to
distribute three DWA films.
Motion picture companies, such as TCFF, typically seek to generate revenues from various distribution
channels. TCFF derives its worldwide motion picture revenues primarily from four basic sources (set forth in
general chronology of exploitation): (i) distribution of motion pictures for theatrical exhibition in the
United States and Canada and markets outside of the United States and Canada (“international” markets);
(ii) distribution of motion pictures in various home media formats, including digital distribution; (iii) distribution
of motion pictures for exhibition on premium pay, subscription video-on-demand, pay-per-view and video-on-
demand programming services; and (iv) distribution of motion pictures for exhibition on free television
networks, other broadcast program services, independent television stations and basic cable programming
services, including certain services which are affiliates of the Company. The Company does not always have
rights in all media of exhibition to all motion pictures that it releases, and does not necessarily distribute a given
motion picture in all of the foregoing media in all markets.
The Company believes that the pre-release marketing of a feature film is an integral part of its motion
picture distribution strategy and generally begins marketing efforts three to six months in advance of a film’s
release date in any given territory. The Company markets and distributes its films worldwide principally through
its own distribution and marketing companies.
Through Twentieth Century Fox Home Entertainment LLC, the Company distributes motion pictures and
other programming produced by units of TCFF, its affiliates and other producers in the United States, Canada
and international markets in all home media formats, including the sale and rental of DVDs and Blu-rays. In
fiscal 2013, the domestic home entertainment division released or re-released approximately 1,230 produced and
acquired titles, including 23 new TCFF film releases, approximately 871 catalog titles and approximately
336 television and non-theatrical titles. In international markets, the Company distributed, produced and acquired
titles both directly and through foreign distribution channels, with approximately 934 releases in fiscal 2013,
including approximately 22 new TCFF film releases, approximately 663 catalog titles and approximately
249 television and non-theatrical releases. In fiscal 2013, the Company entered into an arrangement to distribute
new release animated motion pictures produced by DWA as well as certain other catalog motion pictures and
programming controlled by DWA. In fiscal 2013, the Company continued its worldwide home video distribution
arrangement with Metro-Goldwyn-Mayer (“MGM”), releasing approximately 583 MGM home entertainment
theatrical, catalog and television programs domestically and 611 internationally. The Company also continued its
domestic home video distribution arrangements with Lions Gate (U.S. only) and Anchor Bay Entertainment,
LLC (“Anchor Bay”) (U.S. and Canada), releasing approximately 1,604 Lions Gate home entertainment
theatrical, catalog and television programs and approximately 683 Anchor Bay home entertainment theatrical,
catalog and television programs. During fiscal 2013, the domestic home entertainment division released
403 Blu-ray titles, including 23 new TCFF film releases, 309 catalog titles and 71 television and non-theatrical
releases. In international markets, the Company released 268 Blu-ray titles, including 22 new TCFF film releases
and 246 catalog titles. The Company also distributed 185 Blu-ray titles from MGM domestically and 112 titles
internationally, 298 Blu-ray titles from Lions Gate domestically, and 217 Blu-ray titles from Anchor Bay
domestically.
Units of TCFF license motion pictures and other programs in the United States and international markets to
various third party and certain affiliated subscription pay television, subscription video-on-demand, pay-per-
view, video-on-demand and electronic sell-through services as well as to free television networks and basic cable
programming services for distribution by means of various media, which may include direct broadcast satellite
(“DBS”), cable television systems and the Internet. The license agreements reflecting the subscription pay
television arrangements generally provide for a specified number of exhibitions of the program during a fixed
term in exchange for a license fee that is based on a variety of factors, including the box office performance of
each program and the number of subscribers to the service or system. Among third party license arrangements
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