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Next TV rights deal

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News Corp reports: Sports rights, print ad revenue, Foxtel subs

News Corp reports: Sports rights, print ad revenue, Foxtel subs
13
Aug, 2015
by Mediaweek
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News Corporation today reported financial results for the three months and fiscal year ended June 30, 2015.

Commenting on the results, chief executive Robert Thomson (pictured) said:

?Thanks to solid performance across a number of our businesses, including the fast-growing realtor.com, we had a strong fourth quarter finish to a good fiscal year. Despite an uneven global economy, very tough currency headwinds and the ongoing transformation of the media landscape, for fiscal 2015 we posted stable revenues, robust EBITDA growth and healthy free cash flow.

?With disciplined internal investments, strategic acquisitions and ongoing product innovation, we have aggressively shifted the company to be more global and more digital. We have clearly emerged as an international leader in digital real estate, opened up new territories at HarperCollins, expanded digital subscriber penetration at our mastheads and successfully integrated our programmatic exchange, creating new digital and mobile advertising opportunities across News Corp.

?We have begun to execute on a capital return program that signifies our confidence in the prospects of the company and the efficacy of its long-term strategy. The year ahead will be an opportunity to build on the sound and profitable platform we have collectively created.?

Speaking on the earnings call this morning from Sydney, Thomson noted this marks the second anniversary of the new News Corp, with the company financially stronger and better positioned for the future.

Thomson also discussed the continuing investment in digital. International success included growth at The Wall Street Journal and The Times, while the company admitted it was facing challenges at The Sun in London.

Foxtel continues to report subscriber growth with the numbers up 9% year-on-year to around 2.8m. Foxtel revenue was up 2% YOY, but EBITDA was down 16% partly because of increased costs for sports rights.

When Thomson was asked about this week?s Nine deal for NRL rights, he commented: ?Football rights is a contact sport in itself. We are currently at about half time [in the NRL negotiations].? He didn?t comment further apart from adding, ?I am an AFL tragic, and the result I am focused on is an Essendon victory on Saturday.?


There was little commentary about Australian newspapers, except a note that ad revenues were down 8% YOY with particular weakness from the retail and auto categories.

? Full Year Results

News Corp reported fiscal 2015 full year total revenues of $8.63 billion, a 1% increase as compared to the prior year revenues of $8.57 billion. The increase reflects growth in the book publishing and digital real estate services segments, primarily as a result of the acquisitions of Harlequin Enterprises Limited and Move, respectively, which was partially offset by adverse foreign currency fluctuations and lower advertising revenues at the News and Information Services segment. Adjusted revenues were 1% lower than the prior year.

The company reported full year total segment EBITDA of $852 million, an 11% increase as compared to $770 million in the prior year. These results include $50 million in fees and costs in fiscal 2015 and $72 million in fiscal 2014 ? net of indemnification ? related to the UK newspaper matters. The improvement was driven by increased revenues in the book publishing segment due to the inclusion of Harlequin results and lower expenses, mainly due to the increased capitalisation of software development costs, at the digital education segment; partially offset by adverse foreign currency fluctuations, declines at the news and information services segment, which includes higher legal costs at News America Marketing, and stock-based compensation expense in connection to the acquisition of Move.

http://www.mediaweek.com.au/news-corp-reports-sports-rights-print-ad-revenue-foxtel-subs/
fox have admitted to including presto subscribers in their "subscriber growth"
 

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Caroline Wilson, when asked if AFL were caught sleeping at the wheel with the new NRL TV rights, said "Gillon Mclachlan has been under the pump the last few weeks... but we know hes good at broadcast deals, he would not have not known about this."

So no one in Rugby League knew about it, no one in the media knew about it, no analysts knew about it or predicted a deal anything close to it, and NEWS CORP & FOXTEL KNEW NOTHING ABOUT IT, but somehow Gilligan knew? REALLY!?!?:roll::lol:

What reality do Victorians occupy?
 

Lockyer4President!

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Caroline Wilson, when asked if AFL were caught sleeping at the wheel with the new NRL TV rights, said "Gillon Mclachlan has been under the pump the last few weeks... but we know hes good at broadcast deals, he would not have not known about this."

So no one in Rugby League knew about it, no one in the media knew about it, no analysts knew about it or predicted a deal anything close to it, and NEWS CORP & FOXTEL KNEW NOTHING ABOUT IT, but somehow Gilligan knew? REALLY!?!?:roll::lol:

What reality do Victorians occupy?

Caroline Wilson is a special kind of nutbag.

She should be at home writing blog trash on AFL forums but instead she's considered a serious sports journo in Melb.
 

gUt

Coach
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Caroline Wilson, when asked if AFL were caught sleeping at the wheel with the new NRL TV rights, said "Gillon Mclachlan has been under the pump the last few weeks... but we know hes good at broadcast deals, he would not have not known about this."

So no one in Rugby League knew about it, no one in the media knew about it, no analysts knew about it or predicted a deal anything close to it, and NEWS CORP & FOXTEL KNEW NOTHING ABOUT IT, but somehow Gilligan knew? REALLY!?!?:roll::lol:

What reality do Victorians occupy?

Sorry, isn't she saying he didn't know?
 

undertaker

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That's a Channel 9 issue ( what ads they run during NRL )

Also, what do people think about Channel 9 continually moving kick off times to suit them ? Last night was 7:55 & apparently all the Thursday & Friday night games until Round 26 will start around this time. I think the Thursday night time is just unfair, especially for kids. The NRL should be stronger on this to allow & encourage the next generation of fans to watch games. To have SOO starting around 8:20 is terrible, what chance to kids have to watch this when it finishes around 10p.m. on a school night ?

The tired old line about 'we paid a lot of money we can put it one when we like' is ridiculous when you compare it to sports like the NFL, NBA & EPL who start their events at the advertised time ( not when the tv broadcaster wants to ) & pay just a little bit more than the NRL rights.

As I correctly predicted, Thursday night football would have a pre-game show and kickoff would be closer to 8pm than 7:30pm, which I agree is harsh on the fans, especially families with school-aged children (although much easier to attend than a 7pm Monday night match, where people are still coming home from work, and hence any match held outside a metropolitan area becomes almost difficult to attract fans to the game). I feared this was going to be the case, albeit not as bad as 2013 when Thursday night matches in the first few rounds kicked off as late as 8:10pm! (e.g. Rd 2 Eels vs Bulldogs at ANZ Stadium) And unless some intervention from the ARLC occurs, this is not going to change when Thursday night matches become regular from 2018 onwards.

Ideally, if the telecast starts at 7:30pm, Thursday night matches should kick off no later than 7:45pm. The more ideal situation is to have the pre-game show starting at 7pm, with kickoff at 7:35pm. That would be the best outcome for people thinking about attending the match. I remember a couple of years ago or so, Ch9 had their Friday night pre-game shows starting at 7pm in the final rounds of the season. It all depends on whether Ch9 are prepared to do away with A Current Affair on Thursday nights.
 

Desert Qlder

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It is not a good thing that McLachlan is having his tyres pumped when he has not done anything of significance in the job.

They are setting themselves up for disappointment.

I'm hoping Wilson is on Offsiders this week so we can watch her and Whately squirm about should they talk TV rights, which they will probably avoid anyway.
 

nrlnrl

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As I correctly predicted, Thursday night football would have a pre-game show and kickoff would be closer to 8pm than 7:30pm, which I agree is harsh on the fans, especially families with school-aged children (although much easier to attend than a 7pm Monday night match, where people are still coming home from work, and hence any match held outside a metropolitan area becomes almost difficult to attract fans to the game). I feared this was going to be the case, albeit not as bad as 2013 when Thursday night matches in the first few rounds kicked off as late as 8:10pm! (e.g. Rd 2 Eels vs Bulldogs at ANZ Stadium) And unless some intervention from the ARLC occurs, this is not going to change when Thursday night matches become regular from 2018 onwards.

Ideally, if the telecast starts at 7:30pm, Thursday night matches should kick off no later than 7:45pm. The more ideal situation is to have the pre-game show starting at 7pm, with kickoff at 7:35pm. That would be the best outcome for people thinking about attending the match. I remember a couple of years ago or so, Ch9 had their Friday night pre-game shows starting at 7pm in the final rounds of the season. It all depends on whether Ch9 are prepared to do away with A Current Affair on Thursday nights.

Surely they could start their pre-game at 7, with kick-off at 7:20. Then, the game would normally finish around 9:05 & they could have a wrap up of the game & start The FootyShow around 9:15-9:20. ( not that I watch it, but for their ratings )
 

nrlnrl

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Caroline Wilson, when asked if AFL were caught sleeping at the wheel with the new NRL TV rights, said "Gillon Mclachlan has been under the pump the last few weeks... but we know hes good at broadcast deals, he would not have not known about this."

So no one in Rugby League knew about it, no one in the media knew about it, no analysts knew about it or predicted a deal anything close to it, and NEWS CORP & FOXTEL KNEW NOTHING ABOUT IT, but somehow Gilligan knew? REALLY!?!?:roll::lol:

What reality do Victorians occupy?

I admire those who describe themselves ( or others say it ) as being under the pump, because that's all they do with their time - telling people that.
 
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Sorry, isn't she saying he didn't know?

"not have, not known", she is saying he is soo connected he knew the ins and outs of the NRL's confidential negotiations on a deal that stunned everybody over both the timing and the amount. Nonsense.
 

gUt

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"not have, not known", she is saying he is soo connected he knew the ins and outs of the NRL's confidential negotiations on a deal that stunned everybody over both the timing and the amount. Nonsense.

Yep I'm not unsorry you're not incorrect
 

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Why would the NRL tell Telstra if they didn't tell Foxtel? Foxtel is 50% owned by Telstra!
NRL deal leaves Telstra peeved

THE NRL’s surprise move this week to award not only free-to-air TV rights, but streaming rights, to four games a week to Nine TV network from 2018 blindsided none other than its major sponsor, telecoms giant Telstra.

BizCon hears that relations between Telstra’s business development area and its “partners” at the NRL are more than a little tense in the wake of the decision.

After all, you’d think Telstra’s position as the code’s longest-serving naming rights sponsor (it has partnered with the NRL since 2001) — not to mention the $75m a year it is stumping up for streaming rights to rugby league until the end of 2017 — may have earned it a bit of advance warning of the decision. Certainly, we’re hearing that’s what Telstra executives are saying behind the scenes.

But it seems no amount of money buys professional courtesy these days. We hear the first Telstra heard it had lost exclusive streaming rights to rugby league was Dave Smith’s (above) announcement of the Nine deal on Monday.

Oh to be a fly on the wall when negotiations get serious for Telstra to renew its various deals with the NRL from 2018.
http://www.dailytelegraph.com.au/bu...o-the-wilderness/story-fnkltfm0-1227482565547
 

BuffaloRules

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Can only assume Telstra's quote for streaming didn't cut it.

Poor form not to be told though that they missed out..... It is a News Ltd article mind you so probably BS..
 

flippikat

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Surely they could start their pre-game at 7, with kick-off at 7:20. Then, the game would normally finish around 9:05 & they could have a wrap up of the game & start The FootyShow around 9:15-9:20. ( not that I watch it, but for their ratings )

From a kiwi perspective too, starting the Thursday night game at 9:20 pm NZ time is far better than 10 pm kickoff on a work night.

It's the difference between getting to bed closer at 11pm or midnight for work the next day.

Not that this probably matters to the decision-makers in Sydney, but if I was running Sky Sports, I know which kickoff time I'd prefer.

Another thing on the NZ rights.. does anyone here think the NRL should try to get better FTA coverage here? Since we have no anti-siphoning laws here, EVERY game is liveand commercial-free on Sky Sports (Channel 9 games stay with the live feed as Australia go to commercials).

This is brilliant for those with Sky Sports (did I add we also get Nine's Footy Shows & all the Fox shows?), but those without pay tv get no live games & and this weekend Maori TV shows Warriors v Panthers 24 HOURS after Sky Sport. Surely the NRL can get better FTA exposure than that for the game here, without eroding Sky too much?
 

Chief_Chujo

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All this negative crap coming from news papers just tells me Smith and co have made a great deal.

Cry some more news, its time for you to pay up.
 

Cumberland Throw

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did nine buy exclusive streaming rights ?

if fox pay the money for the simulcasting, surely they would get foxtel GO streaming as well
 
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