Twenty-First Century Fox 2014 Annual Report Download - page 19

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MyNetworkTV
The programming distribution service, Master Distribution Service, Inc. (branded as MyNetworkTV),
distributes two hours per night, Monday through Friday, of original and off- network programming from Twentieth
Television and other third party syndicators to its licensee stations. As of June 30, 2014, MyNetworkTV had license
and delivery agreements covering 182 stations, including 10 stations owned and operated by the Company, reaching
approximately 96% of U.S. households.
Competition. The network television broadcasting business is highly competitive. FOX and MyNetworkTV
compete with other broadcast networks, such as ABC, NBC, CBS and The CW Television Network, independent
television stations, cable and direct broadcast satellite (“DBS”) program services, as well as other media, including
DVDs, Blu-rays, digital video recorders (“DVR”), video games, print and the Internet for audiences, programming
and, in the case of FOX, advertising revenues. In addition, FOX and MyNetworkTV compete with other broadcast
networks and other programming distribution services to secure affiliations or station agreements with
independently owned television stations in markets across the United States. ABC, NBC and CBS each broadcasts a
significantly greater number of hours of programming than FOX and, accordingly, may be able to designate or
change time periods in which programming is to be broadcast with greater flexibility than FOX. In addition, future
technological developments may affect competition within the television marketplace.
Each of the stations owned and operated by Fox Television Stations also competes for advertising revenues
with other television stations and radio and cable systems in its respective market area, along with other advertising
media, such as newspapers, magazines, outdoor advertising, direct mail and Internet websites. All of the stations
owned and operated by Fox Television Stations are located in highly competitive markets. Additional elements that
are material to the competitive position of each of the television stations include management experience, authorized
power and assigned frequency of that station. Competition for sales of broadcast advertising time is based primarily
on the anticipated and actually delivered size and demographic characteristics of audiences as determined by various
rating services, price, the time of day when the advertising is to be broadcast, competition from the other broadcast
networks, cable television systems, DBS services and other media and general economic conditions. Competition for
audiences is based primarily on the selection of programming, the acceptance of which is dependent on the reaction
of the viewing public, which is often difficult to predict.
Filmed Entertainment
The Company is engaged in the production and acquisition of live-action and animated motion pictures for
distribution and licensing in all formats in all entertainment media worldwide, and the production and licensing of
television programming worldwide.
Motion Picture Production and Distribution
One of the world’s largest producers and distributors of motion pictures, Twentieth Century Fox Film
(“TCFF”) produces, acquires and distributes motion pictures throughout the world under a variety of arrangements.
During fiscal 2014, TCFF placed 24 motion pictures in general release in the United States. The motion pictures of
TCFF are produced and/or distributed by the following units of TCFF: Twentieth Century Fox and Fox 2000, which
produce and acquire motion pictures for mainstream audiences; Fox Searchlight Pictures, which produces and
acquires specialized motion pictures; and Twentieth Century Fox Animation, which produces feature length
animated motion pictures. In addition, Fox International Productions, Inc. co-produces, co-finances and acquires
local-language motion pictures intended for distribution outside the United States. The motion pictures produced
and/or distributed by TCFF in the United States and international territories in fiscal 2014 included The Wolverine,
12 Years a Slave, The Grand Budapest Hotel, Rio 2, The Other Woman, X-Men: Days of Future Past, The Fault in
Our Stars and How To Train Your Dragon 2. TCFF has already released or currently plans to release approximately
26 motion pictures in the United States in fiscal 2015, including Dawn of the Planet of the Apes, Gone Girl, Exodus,
The Penguins of Madagascar, Night at the Museum: Secret of the Tomb, Taken 3, Spy, The Fantastic Four, Wild and
Best Exotic Marigold Hotel 2. Pursuant to an agreement with Monarchy Enterprises Holdings B.V. (“MEH”), the
parent company of New Regency in which the Company has a 20% interest, and certain of MEH’s subsidiaries,
TCFF distributes certain New Regency films and all films co-financed by TCFF and New Regency in all media