Twenty-first Century Fox Inc's Comment on Competitors and Industry Peers
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 advertisers
within a broad spectrum of television networks, including other non-news cable
networks and free-to-air broadcast television networks.
Sports programming operations. A number of basic and pay television programming
services, such as ESPN and NBC Sports Network, as well as free-to-air stations
and broadcast networks, provide programming that also targets Fox Sports 1,
Fox Sports 2 and the FSN RSNs’ respective audience. On a national level,
the primary competitors to Fox Sports 1, Fox Sports 2 and FSN are ESPN, ESPN2,
NBC Sports Network and CBS Sports Net. In regional markets, the FSN RSNs compete
with other regional sports networks, including those operated by team owners,
cable television systems, local broadcast television stations and other sports
programming providers and distributors. Fox Sports 1, Fox Sports 2 and FSN also
face competition online from Major League Baseball Advanced Media, Yahoo Sports,
ESPN.com, NBCSports.com and CBSSports.com, among others.
In addition, Fox Sports 1, Fox Sports 2, the FSN RSNs and FSN compete, to
varying degrees, for sports programming rights. The FSN RSNs compete for local
and regional rights with local broadcast television stations, other local and
regional sports networks, including sports networks launched by team owners,
and distribution outlets, such as cable television systems. Fox Sports 1, Fox
Sports 2 and FSN compete for national rights principally with a number of national
cable and broadcast services that specialize in or carry sports programming,
including sports networks launched by the leagues and conferences, and television
“superstations” that distribute sports. Independent syndicators
also compete by acquiring and reselling such rights nationally, regionally and
locally. Distribution outlets, such as cable television systems, sometimes contract
directly with the sports teams in their service area for the right to distribute
a number of those teams’ games on their systems. In certain markets, the
owners of distribution outlets, such as cable television systems, also own one
or more of the professional teams in the region, increasing their ability to
launch competing networks and also limiting the professional sports rights available
for acquisition by FSN RSNs.
FX and FXX. FX and FXX face competition from a number of basic cable and pay
television programming services, such as USA Network (“USA”), TNT,
Spike TV, Home Box Office, Inc. (“HBO”) and Showtime Networks (“Showtime”),
as well as free-to-air broadcast networks and Internet subscription and rental
services that provide programming that targets the same viewing audience as
FX and FXX. FX and FXX also face competition from these programming services
in the acquisition of distribution rights to movie and series programming.
National Geographic U.S. National Geographic Channel and Nat Geo Wild face
competition for viewers and advertising from a number of basic cable and broadcast
television channels, such as Discovery Channel, History Channel, Animal Planet,
Travel Channel, Science Channel, H2, Military Channel, Biography and Tru TV,
as well as free-to-air broadcast networks and sports, news and general entertainment
networks which have acquired or produced competing programming.
FIC. Internationally, the Company’s cable businesses compete with various
local and foreign television services providers and distribution networks for
audiences, advertising, content acquisition and distribution platforms.
STAR India. In India, the pay television broadcasting industry has several
participants, and STAR India’s entertainment channels compete with both
pay and free-to-air channels since they are delivered by common cable, direct-to-home
and IPTV. STAR India also competes in India to acquire Hindi and other Indian
languages film and programming rights, and internationally for English film
and programming rights.
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.
Competition. Motion picture production and distribution are highly competitive
businesses. 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. The number of motion pictures released by the Company’s
competitors, particularly the other major film studios, in any given period
may create an oversupply of product in the market, which may reduce the Company’s
shares of gross box office admissions and may make it more difficult for the
Company’s motion pictures to succeed. The commercial success of the motion
pictures produced and/or distributed by the Company is affected substantially
by the public’s unpredictable response to them. The competitive risks
affecting the Company’s home entertainment business include the number
of home entertainment titles released by the Company’s competitors that
may create an oversupply of product in the market, competition among home media
formats, such as DVDs and Blu-rays, and other methods of distribution, such
as EST and VOD services.
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.
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.
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