Twenty-First Century Fox 2014 Annual Report Download - page 22

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States. The decision of a television network to continue a series through an entire television season or to renew a
series for another television season depends largely on the series’ audience ratings.
Twentieth Television. Twentieth Television licenses both television programming and feature films for
domestic syndication to television stations and basic cable services in the United States. Twentieth Television
distributes a program portfolio that includes the Company’s library of television and film assets, and first-run
programming produced by its production companies for sales to local stations, including stations owned and
operated by the Company, as well as to basic cable networks. First-run programs distributed by Twentieth
Television include the court show Divorce Court and the entertainment magazine program Dish Nation.
Twentieth Television derives revenue from off-network, theatrical and first-run program sales in the form of
cash license fees paid by both broadcast and cable licensees, and from the sales of national advertising units retained
by Twentieth Television in its programs. Twentieth Television licenses such shows as Modern Family, Archer, It’s
Always Sunny in Philadelphia, Burn Notice, Family Guy, The Simpsons, Bones, How I Met Your Mother, The
Cleveland Show, Bob’s Burgers, Glee and The Simpsons to cable and broadcast networks. Twentieth Television also
sells national advertising on behalf of other third party syndicators.
Fox Television Studios (“FtvS”). FtvS is a program supplier to the major U.S. and international broadcast and
cable networks. FtvS is currently producing the series White Collar, Graceland, Sirens and Complications for USA,
The Americans and The Comedians for FX, The Killing for Netflix and Maron for IFC.
Shine Limited (“Shine”). Shine is an international television production and distribution group with 26
operating companies across 11 countries creating and exploiting scripted and non-scripted content in the global
marketplace. Shine companies include award-winning genre specialists such as U.K.-based Kudos (drama),
Dragonfly (factual), Princess Productions (entertainment and multi-genre) and Shine TV (factual and factual
entertainment); U.S. producer Shine America (formerly Reveille); and Shine Nordics (previously Metronome
Film & Television), the Nordic region’s largest production group. The group also includes Shine 360°, a group-wide
global brand and commercial rights division, and Shine International, its dedicated international distribution arm.
Shine International distributes a catalogue of approximately 3,800 hours of broadcast content to 265 territories
worldwide as of the end of fiscal 2014. Internationally distributed shows from the Shine group include MasterChef
(now sold for adaptation in 52 territories), The Biggest Loser, and dramas The Bridge and Broadchurch which is
being remade in the U.S. as Gracepoint. Shine has established businesses in Germany, France, Australia, Spain and
Portugal. Shine also has a digital and direct to consumer business through its multi-platform game producer Bossa
Studios and its online original content producer and YouTube multi-channel network, ChannelFlip Media.
In May 2014, the Company and certain funds managed by Apollo Global Management (“Apollo”) entered into
a preliminary agreement, subject to a number of conditions, to form a joint venture with Apollo to combine three
leading creators, producers and distributors of multiplatform entertainment: Shine, Endemol and Core Media Group.
The new joint venture will be jointly owned and managed by the Company and Apollo. There can be no assurance
that the proposed transaction will be completed.
Competition. Similar to motion picture production and distribution, production and distribution of television
programming is extremely competitive. The Company competes with other film studios, independent production
companies and others for the acquisition of artistic properties, the services of creative and technical personnel,
exhibition outlets and the public’s interest in its products. In addition, television networks have affiliated production
companies from which they are increasingly obtaining their programming, which has reduced the demand for
programming from other non-affiliated parties.
Motion Picture and Television Library
The Company’s motion picture and television library (the “Fox Library”) consists of varying ownership and
distribution rights to several thousand previously released motion pictures and many well-known television
programs. Motion pictures in the Fox Library include many successful and well-known titles, such as The Sound of
Music, Mrs. Doubtfire, Home Alone, the Star Wars series, the X-Men series, Independence Day, The Day After
Tomorrow, the Ice Age series, The Planet of the Apes series, Sideways, Walk the Line, The Devil Wears Prada, Little
Miss Sunshine, the Night at the Museum series, the Alvin and the Chipmunks series, Slumdog Millionaire, Life of Pi