- Published: September 18, 2022
- Updated: September 18, 2022
- University / College: Washington University in St. Louis
- Language: English
- Downloads: 15
Company 20th Century Fox News Corporation MEMO
Entrer Course Name and Number
20th century Fox having its humble beginnings in Los Angeles, CA in 1915 , is today a media conglomerate covering movies, television networks , radio and motion picture film processing. As per the Annual Report the company has five business segments a)Cable Network Programming: b) )Television; c) Filmed Entertainment; Direct Broadcast Satellite Television; and e) Other, Corporate and Eliminations. For the purposes of this memo we will be focusing on our filmed entertainment business.
Introduction and product base : As you know fox is part of a conglomerate that produces and acquires live-action and animated motion pictures for distribution and licensing in a number of different formats for entertainment around the world. 2013 saw releases like Ice Age: Continental Drift, Taken 2, Life of Pi, A Good Day to Die Hard etc. across different continents. As you can tell from the various genres fox invests a lot of money into finding new scripts attracting and retaining new talent like actors directors, special effects etc. Managing deadlines pre-production , production and post-production are very important and have to be managed with the expectation of the release dates.
Distribution Channels: Fox distributes its films through theatrical exhibition (movie theatres) around the world with the US and Canada being their biggest markets. Distribution also takes place through digital distribution, pay per view, subscription video on demand etc. and also over free television networks, independent television stations and basic cable programming. In fiscal 2013 , Fox either released or rerelease 1230 titles which Is inclusive of 23 new films, 871 category titles and 336 television and non-theatrical titles. Internationally in 2013 fox distributed, produced and acquired 934 releases.
Marketing: As we have already covered the fundamental 4 P’s in the previous memo, we will discover a major marketing strategy which has become popular with recent releases. It is part of Fox’s strategy to commit to a pre marketing release of a motion picture up to 6 months before the actual release. This allows the consumer to gain excitement by releasing teaser trailers in the movie theatres, billboard posters of the movie, Online targeted advertising of the trailer over channels like you tube. This as we mentioned in the earlier memo is a major placement of the “ Product” in the mind of movie goers. They always end their trailers by saying or writing “ in theatres . Either summer 2015 or this Christmas etc. suggesting the place. Common knowledge of ticket prices as stated earlier is understood by the majority of customers in their own region.
Competitive marketplace: The film entertainment business is extremely competitive with players like Universal, MGM, and Paramount in the arena. Apart from different options releases all at once can cause oversupply in the market. Basically there are more movies than needed to fill theatres. Now that we have covered our overview as an exercise we will go through where we stand on a standard SWOT analysis which will shed light on our current situation
Strengths: Fox has the brand value and is established in a number Global markets including the Americas, United Kingdom, All of western Europe, India, Japan etc. Their international presence in television broadcasting serves as strong marketing platforms for their movie releases. Access to the best in the television business as their name is synonymous with television and movies
Weaknesses: As movies and television are not a necessity, movie releases are always susceptible to lower demand due to poor economic conditions. Consumers tend to think twice on spending $10 on a movie ticket if their disposable income is not strong.
Opportunities: There are always new niche markets to tap into where a new audience can be built upon. For example Fox has even ventured into Christian religious programming. Similarly research has to be done to investigate new subjects of interest to differentiate fox from its competitors. Streaming technologies for movies over the internet is an avenue that is gaining popularity and can be investigated further (Web 2013)
Threats: Fox is constantly being faced by risks associated with unauthorized copying and distribution of its content i. e. piracy. This leads to hundreds of millions of dollars in lost revenue every year.
Stock Price and finances: As of December 6th Fox’s stock prices is $37. 81 per share and saw its higher ever stock price on December 6th. In November 2014 the stock FOXA was traded on average 3. 4 million shares a day and has a market cap of $27. 8 Billion. Fox’s revenue growth is leading when compared to competition at 8. 7%. 2013 revenues was recorded at $27, 675 millions with a net income of $7097 Million. Net operating cash flow has increased to $440. 00 million or 39. 24% when compared to the same quarter last year.(Web 2014)
Strategy and conclusion: Fox has always been at the forefront of movie entertainment. With the strides made in recent times, Fox should continue to explore new technologies to deliver the best content to audiences like their work in new filming technology in Avatar. From a threat standpoint they should make spend more on R&D and digital security to control their content from getting into the wrong hands. Streaming web sites for movie content are still in their infancy stage , this along with state of the art home entertainment equipment could change the scenario for the future. More research and spending should be dedicated to this to make sure Fox has a competitive edge for the future
References
20TH Century Fox News Corporation Annual Report, Delaware : Investors:
Annual Reports and Proxy Statements. 30 June 2013 < http://www. nike. com/nikebiz/nikebiz. jhtml? page= 17 >
Hodge, Jaimie “ Twenty-First Century fox (FOX) Reaches New Lifetime High Today” The street. com.
BELAVAL DÍAZ, MARIO “ 20th Century Fox will dominate screens in 2014”. Caribbean Business. 2/27/2014