Twenty-First Century Fox 2014 Annual Report Download - page 23

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and Taken, as well as four of the top 20 domestic box office grossing films of all time, which are Avatar, Titanic
(together with Paramount Pictures Corporation), Star Wars Episode IV: A New Hope and Star Wars Episode I: The
Phantom Menace.
The Fox Library contains varying ownership and distribution rights to many television series and made-for-
television motion pictures. The television programming in the Fox Library consists of such classic series as 24, How
I Met Your Mother, King of the Hill, Prison Break, Boston Legal, My Name is Earl, The Mary Tyler Moore Show,
M*A*S*H, Hill Street Blues, Doogie Howser, M.D., L.A. Law, The Wonder Years, The Practice, Ally McBeal,
Angel, Dharma & Greg, In Living Color, The X-Files, Buffy the Vampire Slayer, The Cleveland Show, Arrested
Development, Futurama, Raising Hope and NYPD Blue, as well as prior seasons of such current series as The
Simpsons, Bones, Family Guy, Glee, Modern Family, Sons of Anarchy, New Girl, Last Man Standing and American
Dad.
Direct Broadcast Satellite Television
The Company, through its wholly-owned subsidiary, Sky Italia, and its majority-owned subsidiary, Sky
Deutschland, engages in the broadcast service business directly to subscribers in Italy (in the case of Sky Italia) and
Germany and Austria (in the case of Sky Deutschland). The Company also owns a significant equity interest in
BSkyB, which is engaged in the DBS business (for a description of the business of BSkyB, please see discussion
under heading “Equity Interests”).
Sky Italia
Sky Italia currently distributes more than 170 channels of basic, premium and pay-per-view programming
services via satellite and broadband directly to subscribers in Italy. This programming includes exclusive rights to
popular sporting events, newly-released movies and Sky Italia’s original programming, such as SKY TG 24, Italy’s
first 24-hour news channel. As of June 30, 2014, Sky Italia had approximately 4.73 million subscribers.
Sky Deutschland
In January 2013, the Company increased to 55% its ownership in Sky Deutschland, the leading pay television
operator in Germany and Austria. Sky Deutschland currently distributes more than 70 channels of basic, premium
and pay-per-view programming services via satellite, cable and broadband to subscribers in Germany and Austria.
Sky Deutschland also can be received via Teleclub in Switzerland. Sky Deutschland’s program offering includes
current feature films, new series, children’s channels, documentaries and live sports, such as the German Bundesliga
and UEFA Champions League. As of June 30, 2014, Sky Deutschland had approximately 3.81 million subscribers.
Combination of European Satellite Television Holdings
In July 2014, the Company entered into agreements with BSkyB to sell its 100% and 57% (on a fully diluted
basis) ownership stakes in Sky Italia and Sky Deutschland, respectively. As consideration for the transfer, the
Company will receive approximately $9.3 billion (based on foreign currency exchange rates as of the date of the
agreements) in value from BSkyB, including approximately $8.6 billion in cash. The agreements are subject to
regulatory approvals, the approval of BSkyB stockholders and customary closing conditions. The Company will
remain engaged in the DBS business through its approximate 39% interest in BSkyB, which is more fully described
under the heading “Recent Developments.”
Competition. Sky Italia and Sky Deutschland compete with companies that offer video, audio, interactive
programming, telephony, data and other information and entertainment services, including broadcasters of free-to-
air television channels, broadband Internet providers, digital terrestrial transmission (“DTT”) services, wireless
companies and companies that are developing new media technologies.