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2011 Annual Report 5
a totally new publication called The Daily that takes full advantage of the unique digital
capabilities of the tablet. We believe the market for these products will only expand
as tablets, like mobile phones before them, become inexpensive and ubiquitous.
Q We continued to expand our digital publication of books. Today, e-books represent
approximately 25 percent of U.S. general book revenues when both formats are
available, and HarperCollins is well situated to expand its extensive library onto
these new platforms.
Q We launched a major new initiative that we believe will help change the future of
education. In almost every area of modern life, digital advances have improved
productivity. Not education. That’s changing, and we’ve brought in the former
chancellor of the New York City schools, Joel Klein, to help us tap into what we
see as a $500-billion market in the U.S. alone. Our goal is clear: to become the leader
in advanced digital solutions for the K-12 market, delivering highly engaging,
content-rich interactive products that will allow teachers and schools to measure
and improve student achievement, while alleviating one of the biggest constraints of
our existing school systems – the unsustainable escalation in labor costs. We entered
this market with the acquisition of Wireless Generation, an entrepreneurial company
specializing in individualized, technology-based learning. And we believe we are
poised to revolutionize public education for a whole new generation of students.
Q We also extended our large and varied content creation activities with the acquisition
of Shine Limited. In Shine, we have not only bought a strong business, we have
also brought into our Company a creative team with an outstanding track record
of hit shows and new formats. In a rapidly consolidating global television industry,
Shine will be a key part of our expansion strategy.
Q Finally, we disposed of certain non-strategic or underperforming assets, including
Fox Mobile, Myspace, and News Outdoor in Russia.
Every step we have taken has been guided by a strategy designed to build on our
greatest strength: the creation and distribution of the world’s most sought-after news,
sports and entertainment. At our heart, we are a content company. Maintaining
our lead in content is the key to our continued high growth. To that end, we are
continually evaluating our operating and capital strategies.
Fast Growing Cable Channels
Nowhere is our strength in content more apparent than at the businesses that
represent our most important growth driver, as well as our fastest growing segment:
our Cable Network Programming.
Revenues at the cable network programming segment were up by 14 percent last
year, with operating income up 22 percent. This segment airs some of the world’s
most intriguing content, and it accounts for more than half of the Company’s total
adjusted segment operating income based on continued growth in affiliate and
advertising revenues.
The News
Corporation
ethos is to see
opportunity
where others see
only challenge …
In 2011, we proved
these are not
just words.