Twenty-First Century Fox 2014 Annual Report Download - page 14

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8
In November 2013, STAR India launched six STAR Sports networks, which broadcast in India, among other
sports, the BCCI Domestic and International Cricket Series matches in India, for which Star India has acquired
media rights through 2018, the International Cricket Council matches, for which Star India has acquired media
rights through 2015, the England and Wales Cricket Board matches, for which Star India has acquired media rights
through 2017, and Cricket Australia matches, for which Star India has acquired media rights through 2017.
In May 2014, the Company acquired additional interests in Asianet Communications Limited (“Asianet
Communications”), increasing the Company’s interest from 87% to approximately 100%. Asianet Communications
broadcasts and operates the Malayalam language channels Asianet and Asianet Plus and the Kannada language
channel Suvarna. The Company also owns 100% of Vijay Television Private Limited, which broadcasts and
operates the Tamil language channel Vijay.
The Company also owns an approximate 26% stake in Balaji Telefilms Limited (“Balaji”), which is one of the
largest television content production companies in India, the shares of which are listed on The Stock Exchange,
Mumbai and the National Stock Exchange of India. Balaji currently produces serials broadcast on general
entertainment channels in India.
In May 2011, Star Den, a 50/50 joint venture with Den Networks Limited, entered into a 50/50 joint venture,
Media Pro Enterprise India Private Limited (“Media Pro”), with Zee Turner Limited and Zee Entertainment
Enterprises Limited (“ZEEL”) to distribute and market all channels owned by the Company and ZEEL, their
respective affiliated channels and other third party channels in India, Nepal and Bhutan. In February 2014, the
Telecom Regulatory Authority of India (the “TRAI”) issued regulations prohibiting content aggregators from
bundling channels of third party broadcasters. As a result, Media Pro ceased operations in August 2014.
Middle East. The Company has an approximate 19% interest in Rotana Holding FZ-LLC (“Rotana”), a
diversified media company in the Middle East and North Africa. The Company also has an approximate 36.8%
interest in Moby Group Holdings Limited (“MGH”). MGH operates television, radio, production and other media
businesses in Afghanistan and elsewhere in Central and South Asia.
Fox Sports Asia. In November 2012, the Company acquired the remaining 50% interest in ESPN STAR
Sports, now operating as Fox Sports Asia and STAR Sports, that it did not already own for approximately $220
million, net of cash acquired, and the Company now, through its wholly owned subsidiaries, owns 100% of Fox
Sports Asia. Fox Sports Asia is a leading sports broadcaster in Asia and operates 27 channels in different languages.
Phoenix. In November 2013, the Company sold its remaining 12% interest in Phoenix Satellite Television
Holdings Limited (“Phoenix”), which owns and operates Chinese language general entertainment, movie and current
affairs channels, as well as a new media business, for approximately $210 million.
PT Visi Media Asia. The Company owns an approximate 6.7% interest in PT Visi Media Asia Tbk, a company
which listed on the Indonesia Stock Exchange in November 2011. PT Visi Media Asia Tbk owns and operates
television channels and an online news portal, all of which are targeted at audiences in Indonesia.
Competition
General. Cable network programming is a highly competitive business. Cable networks compete for content
and distribution and, when distribution is obtained, for viewers and advertisers with free-to-air broadcast television,
radio, print media, motion picture theaters, DVDs, Blu-ray high definition format discs (“Blu-rays”), Internet,
wireless and portable viewing devices and other sources of information and entertainment. Important competitive
factors include the prices charged for programming, the quantity, quality and variety of programming offered and
the effectiveness of marketing efforts.
FOX News. FOX News Channel’s primary competition comes from the cable networks CNN, HLN (CNN’s
Headline News), and MSNBC. Fox Business Network’s primary competition comes from the cable networks CNBC
and Bloomberg Television. FOX News Channel and FOX Business Network also compete for viewers and