News Corp Analyst Day Notes

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This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.

Rupert Murdoch:

“This is really a very, very exciting day for me. With the split of our company and the birth of the new News Corp., I’ve been given an extraordinary opportunity most people never get in their lifetime: the chance to do it all over again.”

“When I began on the journey of creating News Corporation 60 years ago in Adelaide, I pretty much had one small newspaper and a very overdeveloped ambition. Well, today, the company is worth $77 billion. I’m not saying I didn’t make many mistakes along the way, even some spectacular ones. But not as many as everyone predicted, thank God. ”

“in 1986, people thought that Barry Diller and I were just positively mad and said that no one can compete with the big 3. And of course, when we came up with The Simpsons, people would say, “Animation was just for kids.” Today, it’s longest-running comedy in prime time in American history and has made us and a lot of other people a fortune.”

“When we launched Sky, people said the public don’t need more choice and that we would bankrupt ourselves. The BBC should alone decide what was good for viewers. In retrospect, I could have done without the stress of nearly bankrupting the company and my family. But today, BSkyB has over 10.5 million customers and is still growing and making a lot of money. And when we launched Fox News, no one thought we could take on CNN. Nobody. Even Ted Turner bragged that he was going to squash me like a bug, and a lot of other things. But with hard work and the genius of Roger Ailes, Fox News has been #1 in cable news for 11 straight years, and now its annual operating profits are more than $1 billion.”

“We’ve always been an eclectic and unconventional company, so you should not expect that will change. I’ve told each of our CEOs to be themselves even as we set out to tell you about the new News Corp. What we share is our core belief, and I think you will see it as the common thread here today. Knowledge is the most valuable commodity in the world, and never has a more ravenous appetite for knowledge existed than today”

Other Management:

“let me be very, very clear. Print is still a particularly powerful platform. 43% of Wall Street Journal readers are millionaires, and the other 57% will be millionaires if they continued to read the Journal.”

“Gone are the days when flat earthers insisted that all digital content must be free all the time.”

“3.5 million read The Wall Street Journal every single day…$124 billion is spent by our readers every year in consumer expenditure. Our readers are the #1 buyers of fashion, jewelry and travel. And as Robert more eloquently and amusingly said, 43% of our customers are millionaires.”

“Thanks to digital technology, overall book consumption is up. The number of books purchased and consumed is increasing on a domestic and global basis”

“K-12 alone, 50-plus-million kids in America we’re talking about, is now almost $700 billion market. And of that, about $40 billion goes into products and services and $17 billion on instructional materials and technology.”