21st Century Fox is considering an array online initiatives to attract younger viewers and consumers who don’t subscribe to traditional pay TV services. New digital platforms are “the most exciting and important opportunity for future growth,” Chief Operating Officer Chase Carey told an earnings conference.
The traditional cable TV bundle “is fraying at the edge” as millennials face economic pressure and watch more online, Carey said after Fox posted first-quarter sales and profit that beat analysts’ estimates. But even as Fox plan how to reach consumers on smartphones and tablets, he asserted that pay-TV will remain “the primary consumer package for years ago come.”
“In terms of digital, we are looking at everything,” Carey said. “We are making our own analysis of what we think consumers want, so it was not implying there is anything imminent….The key challenge for us is to build these choices in ways that fairly compensate us for our content and brands, and do not undermine more established business models.”
21st Century Fox reported profits of $999 million in the third quarter, buoyed by strong earnings in its film and cable television units. The company also said revenue rose to $8.42 billion, a 17 per cent increase from the same period last year.