21st Century Fox FY 1Q17 Earnings Call Notes

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Twenty-First Century Fox’s (FOXA) CEO James Murdoch on Q1 2017 Results

Scale for the scale’s sake doesn’t appeal [AT&T acquisition question]

“So in terms of scale, look I think as we’ve often said, this is an industry and a business that thrives on scale. But at the same time, scale for scale sake is you know are not something that we think should be pursued, we really like the business mix that we have. We’ve really simplified the operating model over the last number of years and invested in these big scale brands that really operate at the top of their games, I think all over the world. And we feel pretty good about that and our focus remains, execution and operating the business as best as we can and growing it as fast as we can. I think – so there is no heightened appetite for any inorganic activities proposed – recent activity and I would say as I said I think the last quarter, we really try to be very, very disciplined about this, we are very high heard all in terms of how we think about investment and how we think about doing things. We slowly passed on lot of opportunities that we thought were – the price was just not going to deliver the value for shareholders that we think that we want to deliver. So I don’t think there is really any change there with respect to our own posture. I would say though that our business is growing really well and there’s investment in these brands, there’s investment in the content and programming, there’s investment in the capabilities around the business from a user experience perspective and a monetization perspective are really getting traction. So we feel good about the business mix and as I said we are operating and are involved in it.”

I don’t think you necessarily have to have an independently priced a la carte offering

“I don’t think you have to necessarily say that an independently priced a la carte or otherwise kind of direct to consumer offering is necessary, but where it is appropriate and where we think we can do some really interesting we will for example in India with HotStar which is growing gang busters and we really saw an opportunity in mobile video to do something around the content that we create there and that’s been a great success and we think it is going to be a huge platform going forward. So I think it is the mix depending up to the region but there is no question that user experience is really important in terms of how people discover our programming, how they interact with them and how we can monetize in the best way possible. “