Twenty-First Century Fox 2003 Annual Report Download - page 9

during the year – with five of our movies opening the box
office at number one – News Corporation was a leader in
both Hollywood and Washington in our efforts to devise
solutions to and educate the public about the threat of
digital piracy. With the urgent attention of the industry’s
leaders, we can effectively combat this growing problem.
Certainly our work in Cable Network Programming has
exemplified the Company’s vision of seizing competitive
opportunities. Nowhere are those principles – and the
rewards they enable – more apparent than at Fox News
Channel. Seven years ago, I was told many times by many
“experts” that a start-up news channel stood no chance
against the entrenched cable news leader and was doomed
to fail. This year, Fox News celebrated its first full year as
the number-one cable news channel by more than doubling
its operating income while achieving the highest ratings
growth of all news channels. In a year of international
warfare and trying global events, Fox News was not only
a valuable news source but a cultural phenomenon across
the U.S.
Meanwhile, FX improved ratings and subscribers as
well as advertising and affiliate revenues on the strength
of its original movies like 44 Minutes, which premiered to
the highest ratings in the network’s history, and original
series such as The Shield, which earned both Emmy and
Golden Globe Awards. And Fox Sports Net’s continued
leadership in local sports programming drove considerable
ratings and subscriber gains during the year.
innovation, our duopoly efforts are a work-in-progress;
but we are greatly encouraged by the results thus far.
And in Asia, after years of diligent work, STAR cele-
brated its first full year of operating profitability. By driving
up both subscription and advertising revenues while
improving efficiency, STAR posted a substantial rise in
operating income year-over-year. Furthermore, we are
making great strides in the development of Xing Kong
Wei Shi, our landmark Mandarin entertainment channel,
whose popularity and distribution grew significantly
during the year. Given that development, coupled with
our flourishing operations in India, STAR is poised for
growing success across the diverse and populous markets
it serves.
Our Filmed Entertainment businesses also achieved
outstanding results in the past year as operating income
reached a record US$641 million, besting last year’s
record income by 36 percent. These gains were the result
of our continued creative excellence as well as better cost
containment and heightened success in capitalizing on
the explosion of the home entertainment market. Bolstering
our results were the strong theatrical debut of Daredevil in
February; the record-breaking worldwide theatrical release
of X2: X-Men United in May; a reliably successful series
of films including One Hour Photo, Brown Sugar, Drumline,
Just Married and Phone Booth; and the global home
entertainment performance of Behind Enemy Lines,
Shallow Hal and, in particular, the phenomenal Ice Age.
Also contributing to our gains in Filmed Entertainment
was our thriving television production business, where
higher syndication profits from shows like The Simpsons,
King of the Hill and X-Files as well as revenues from our
pioneering efforts in television home entertainment com-
bined to drive up earnings.
But as well as our film businesses are performing,
I believe the long-term strength of our Company comes
from our ability to foresee and actively confront problems
as well. In addition to repeatedly leading at the box office
7The News Corporation Limited
Rupert Murdoch
Chairman and
Chief Executive
FOX achieved ratings gains
across its schedule as shows
from The Simpsons to 24
and from That ‘70s Show
to Bernie Mac all increased
their viewership.