Simplifying content delivery, especially for a massive company like 21st Century Fox, is a worthy goal to optimize customer engagement as consumer expectations change rapidly.
“Every aspect of our business is being affected by increasingly rapid change from how we develop content, to delivery, to consumer engagement, and of course, to how we monetize it all,” Lachlan Keith Murdoch, Executive Co-Chairman for 21st Century Fox, said during the company’s Aug. 5 fourth-quarter earnings conference call, according to Seeking Alpha. “The scale and speed of this change will, to some, be overwhelming. But a key underlying trend is important to recognize here. More people are now watching more quality storytelling than ever. They are just consuming it differently, given the growing array of options available to them. This is a key and positive trend.”
Empowered by new technologies, 21st Century Fox customers are demanding distinct and better ways to consume content, personalized to them in a variety of new non-linear environments, Murdoch explained.
“These new viewing experiences bring with them both new challenges, which we do not underestimate, but also significant opportunities for viewers, advertisers, and distributors that simply have not been possible in the linear world,” he said. “These challenges and opportunities are forefront in our mind as we develop and execute over-the-top distribution and advertising strategies. One thing is very clear to us. In this environment, it is not enough to simply adapt to change. To succeed in this environment, we must lead change. And that is what all of us in the senior team are committed to do. But we also understand that linear viewing remains a key driver of our channels business, which in turn, is a direct result of our continuing commitment to finding and investing in the best content and content creators around the world. This commitment will not diminish under the new management structure, and if anything, will increase. Sport and news are also more important than ever in the linear world. Fox Sports, specifically Fox Sports 1, is showing strong viewing momentum as Fox News also continues to deliver dominant ratings.”
Murdoch added: “Our goal has been and remains to simplify our business and focus on the content, the brand, and the markets that are most valuable to our customers and to our shareholders. We separated 21st Century Fox News Corp to drive value and focus. We merged the Skys into one entity and we consolidated strategic minority investments, including YES Network, ESPN STAR Sports, Fox Pan-American Sports, Asianet and MAA TV. We refocused our channels in the key global brands of scale Fox, Fox Sports, FX, Fox News, Nat Geo and STAR and launched several new channels in support of this effort, including Fox Sports I, FXX and STAR Sports. As a result of this work, we feel 21st Century Fox today is well positioned to succeed in today's dynamic media market as a global content creator and distributor. Despite the changes in our industry, you should not expect any seismic shift in our areas of focus, or in the direction of travel of the company.”