Fox 4Q16 Earnings

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Twenty-First Century Fox’s (FOXA) CEO James Murdoch on Q4 2016 Results

Excited for Hulu’s future

” domestically Hulu’s velocity is picking up too. With over 11 million paying subs and exciting new live on demand service set to launch in early ’17. With Disney, Time Warner, Fox and more to come, participating in this groundbreaking new product, we’re very excited about Hulu’s future”

Strong advertising demand in this year’s upfront

“And we also saw strong advertising demand in this year’s upfront with revenue growth driven by healthy pricing and volume increases across broadcast and cable. We also expect to build upon last year’s momentum in non-linear advertising gains.”

Lachlan Murdoch

Rupert back in charge of Fox News

“Two weeks ago we received and accepted Roger Ailes’ resignation as the CEO of the business, and our father took up the responsibility of leading Fox News as Chairman and acting CEO. Throughout this process, we have moved quickly and decisively to protect the business, to protect its employees and to protect a unique and important voice, Fox News Broadcast. There is no one more dedicated or more able to transition Fox News to new leadership than its founder. As acting CEO, he joins an existing team that is extraordinarily strong and equally devoted to its success.”

John Nallen

Strongest upfront in years

“As for the upfront; we couldn’t be happier with the strength of the upfronts. We would now fundamentally completed them all. It’s been the strongest upfront we’ve had in years. CPM pricing is in the high, a very high single-digit if you blend both the network and the cable businesses, and volume increases are up in the mid-single digits. So we couldn’t be happier with them. Also the scatter market remains very strong, sort of mid-single digit which I think those are the strength of the advertising market today.”

ad loads have been high on a lot of channels, probably right to reduce them

“And then Anthony, on the ad load side. I think first of all, I think relative to some of our cable competitors, I think we’ve historically and currently generally had lower ad loads. So we do think that’s a part of the product experience. It’s part of the way that we manage the business. But to the extent that you continue to lower them, it really depends on pricing. We make that call kind of an ongoing basis. I would say that where we see dramatically lower ad loads is in the streaming environment, and the CPM increases our substantial and it makes abundant sense to do that where we can target things better, where we can really innovate in terms of those things. But I think generally speaking for a lot of customers and for more, I do think more, some of our competitors out there when I look across the overall kind of dial for cable choices, I think ad loads have been pretty high on a lot of channels, and they’re probably right to reduce them.”