Twenty-First Century Fox 2014 Annual Report Download - page 18

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12
(d) The Company also owns and operates full power station KFTC, Channel 26, Bemidji, MN as a satellite station
of WFTC, Channel 29, Minneapolis, MN. Station KFTC is in addition to the 28 full power stations described
in this section.
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 60 minutes of late-night programming on Saturday. FOX’s prime-time
entertainment programming features such series as New Girl, Sleepy Hollow, The Following, The Simpsons, and
Glee; unscripted series such as American Idol, Hell’s Kitchen and So You Think You Can Dance; event series such
as 24: Live Another Day; 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, college football and basketball, UFC and international soccer, including, beginning in
2015, the FIFA Women’s World Cup. 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 2013-2014 traditional September to May broadcast
season, FOX ranked first (tied with NBC broadcast network (“NBC”)) 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 12th consecutive year FOX has ranked first among adults ages 18 to 34 (2002-2003 to 2013-
2014) and the 14th consecutive year FOX has ranked first among teens ages 12 to 17 (2000-2001 to 2013-2014).
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 49 years, as compared to 52 years for NBC, 53 years for ABC Television Network (“ABC”) and 57 years for CBS
Television Network (“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, FIFA
and UFC are secured by long-term agreements, including a new long-term agreement with the USGA with events on
FOX beginning in 2015.
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.
In addition, FOX produces multi-platform original dramatic series and original online animated series and
shorts under its Animation Domination High-Def brand.