[opendtv] Murdoch: Digital Gives TV Business Chance to Innovate | Broadcasting & Cable
- From: Craig Birkmaier <craig@xxxxxxxxxxxxx>
- To: OpenDTV Mail List <opendtv@xxxxxxxxxxxxx>
- Date: Wed, 10 Dec 2014 08:28:49 -0500
Thought for today.
> That would put Fox in the position of trying to decide whether it would be a
> better business by selling programming directly to customers as opposed to
> going through wholesalers. But Murdoch said, "I think we can do both."
Regards
Craig
http://www.broadcastingcable.com/news/currency/murdoch-digital-gives-tv-business-chance-innovate/136219
Murdoch: Digital Gives TV Business Chance to Innovate
Currency 21st Century Fox's COO says MVPDs are moving too slow 12/09/2014
09:02:00 AM Eastern
The killer app on digital is television, said James Murdoch, chief operating
officer of 21st Century Fox.
Asked about Fox's digital strategy at the 42d annual UBS Media Conference on
Tuesday, Murdoch said that by putting content on apps and other digital
distribution platforms, it is able to innovate outside of the traditional
distribution models.
That becomes important as more homes become broadband only. Murdoch cited
research that showed that the number of broadband-only homes could grow from
about 2 million currently to 10 million. He said he could see it reaching 20
million.
That would put Fox in the position of trying to decide whether it would be a
better business by selling programming directly to customers as opposed to
going through wholesalers. But Murdoch said, "I think we can do both."
Murdoch said that going direct allows faster innovation in terms of programming
and creating advertising opportunities. He said that MVPDs have not innovated
as fast, and that that can be "frustrating."
Murdoch noted that digital has meant changing business models including buying
and selling all of the windowing rights to a property. He pointed to the sale
of all rights for The Simpsons to FXX as an example of a deal that gave the
acquirer the ability to be creative with the property. Viewers enjoyed being
able to see all of the Simpsons episode as a marathon and the marathon boosted
FXX's ratings. At the same time, the attention the Simpson's got on cable
revitalized viewership of original episodes on Fox Broadcasting, he said.
Murdoch said that the television business is important to Fox. "Returns for
great shows is going to continue to be strong," he said. But increasingly,
studios are going to be selling more rights to the networks that commission the
programing. Pricing for those rights is something that will have to be worked
out, he said.
"Everyone wants to be in television production," Murdoch said, but there's
going to be a separation in the business. "Some people are going to be more
successful, some people will be less successful," he said. "We need to continue
to invest and create that magnet for storytellers to allow them to do the best
work they've ever done."
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