Profile: News Corporation (NWS.O)

News Corporation is a is a diversified media company with operations in eight industry segments, including Filmed Entertainment, Television, Cable Network Programming, Direct Broadcast Satellite Television, Magazines and Inserts, Newspapers and Information Services, Book Publishing and Other. The activities of News Corporation are conducted principally in the United States, the United Kingdom, Continental Europe, Australia, Asia and Latin America. The Company engages in the production and acquisition of live-action and animated motion pictures for distribution and licensing in all formats in all entertainment media worldwide, and the production and licensing of television programming worldwide. The Company is engaged in the operation of broadcast television stations, the broadcasting of network programming in the United States and the development, production and broadcasting of television programming in Asia. The Company produces and licenses news, business news, sports, general entertainment and movie programming for distribution to distributors in the United States and internationally. The Company engages in the direct broadcast satellite business through its subsidiary, SKY Italia. The Company engages in marketing operations, primarily the publication of free-standing inserts, the provision of in-store marketing products and services and magazine publishing. The Company is engaged in the newspaper and information services business, primarily through its subsidiaries News International, News Limited, Dow Jones and The New York Post.

In October 2008, the Company purchased VeriSign Inc.’s minority share of the Jamba joint venture increasing the Company’s interest to 100%. In February 2009, the Company, two newly incorporated subsidiaries of funds advised by Permira Advisers LLP (the Permira Newcos) and the Company’s then majority owned, publicly held subsidiary, NDS Group plc (NDS), completed a transaction pursuant to which all issued and outstanding NDS were acquired. As a result of the transaction, NDS ceased to be a public company and the Permira Newcos and the Company owns approximately 51% and 49% of NDS, respectively.

Filmed Entertainment

News Corporation is a producer and distributor of motion pictures, Fox Filmed Entertainment (FFE), produces, acquires and distributes motion pictures throughout the world under a variety of arrangements. During the fiscal year ended June 30, 2009 (fiscal 2009), FFE placed 25 motion pictures in general release in the United States. Those motion pictures were produced and/or distributed by the units of FFE: Twentieth Century Fox and Fox 2000, Fox Searchlight Pictures, Fox Atomic and Twentieth Century Fox Animation. The motion pictures produced and/or distributed by FFE in the United States and international territories in fiscal 2009 included Marley & Me, Taken, X-Men Origins: Wolverine, Night at the Museum: Battle of the Smithsonian, Slumdog Millionaire, The Wrestler, The Secret Life of Bees and Notorious. Pursuant to an agreement with Monarchy Enterprises Holdings B.V. (MEH), the parent company of New Regency, in which the Company has a 20% interest, and certain of MEH’s subsidiaries, FFE distributes certain New Regency films and all films co-financed by FFE and New Regency in all media worldwide, excluding most international territories with respect to television rights.

Motion picture companies, such as FFE, seek to generate revenues from various distribution channels. Through Twentieth Century Fox Home Entertainment, Inc., the Company distributes motion pictures and other programming produced by units of FFE, its affiliates and other producers in the United States, Canada and International markets in all home media formats, including the sale and rental of digital versatile discs (DVDs). In fiscal 2009, the domestic home entertainment division released or re-released approximately 1,017 produced and acquired titles, including 29 new FFE film releases, approximately 712 catalog titles and approximately 276 television and non-theatrical titles. In International markets, the Company distributed, produced and acquired titles both directly and through foreign distribution channels, with approximately 851 releases in fiscal 2009, including approximately 29 new FFE film releases, over 660 catalog titles and approximately 162 television and non-theatrical releases.

In fiscal 2009, the Company continued its worldwide home video distribution arrangement with Metro-Goldwyn-Mayer (MGM), releasing approximately 1,358 and 774 MGM home entertainment theatrical, catalog and television programs domestically and internationally, respectively, as well as its domestic home video distribution arrangement with Lions Gate, releasing approximately 1,777 Lions Gate home entertainment theatrical, catalog and television programs. During fiscal 2009, the domestic home entertainment division released 141 Blu-ray high definition (HD) disc format (Blu-ray) titles, including 25 new FFE film releases and 106 catalog titles and 10 television and non-theatrical releases. In international markets, the Company released 110 Blu-ray titles, including 16 new FFE film releases and 94 catalog titles. The Company also distributed 51 Blu-ray titles (nine new releases and 42 catalog titles) from MGM domestically and 32 titles (two new releases and 30 catalog titles) internationally, and 72 Blu-ray titles from Lions Gate domestically.

Twentieth Century Fox Television (“TCFTV”) produced television programs for the FOX Broadcasting Company (FOX), ABC Television Network (ABC), CBS Broadcasting, Inc. (CBS), NBC Television Network (NBC), Comedy Partners (Comedy Central) and F/X Networks (FX). Television programs generally are produced under contracts that provide for license fees that may cover only a portion of the anticipated production costs. Twentieth Television licenses both television programming and feature films for domestic syndication to television stations and basic cable services in the United States. Twentieth Television distributes a program portfolio that includes original reality and first-run television programming produced by its production companies for sales to the Fox Television Stations, other local stations, the Company's cable network businesses and all other basic cable networks. Fox Television Studios (FtvS) is a program supplier to United States and International broadcast and cable networks.

The Company's motion picture and television library (the Fox Library) consists of varying rights to several thousand previously released motion pictures and television programs. The Fox Library contains varying rights to many television series and made-for-television motion pictures.

Television

Fox Television Stations operates 27 full-power stations, including stations located in nine designated market areas (DMAs). Fox Television Stations operates two stations in nine DMAs, including New York, Los Angeles and Chicago. Of the 27 full power stations, 17 stations are affiliates of FOX (FOX Affiliates). In addition, Fox Television Stations owns and operates 10 stations affiliated with MyNetworkTV, Inc. (MyNetworkTV). FOX has 217 FOX Affiliates, including the 17 stations owned and operated by the Company, which reach approximately 99% of all United States television households. In general, each week FOX regularly delivers to its affiliates 15 hours of prime-time programming and 90 minutes of late-night programming on Saturday. FOX’s prime-time programming features such series as House, The Simpsons, Bones, Fringe, and 24; unscripted series, such as American Idol and So You Think You Can Dance, and various movies and specials.

MyNetworkTV is a primetime general entertainment broadcast television network with 179 affiliates, including ten stations owned and operated by the Company, and reaching approximately 97% of the United States households. As of June 30, 2009, MyNetworkTV delivered two hours per night of branded prime-time programming every night of the week except Sunday. Branded nights of programming included entertainment shows on Monday, reality crime shows on Tuesday, comedy on Wednesdays, movies on Thursdays and Saturdays and WWE Smackdown on Fridays.

The Company, through its wholly owned subsidiary Star Group Limited (STAR), engages in the development, production and broadcasting of television programming to 53 countries throughout Asia. STAR broadcasts in 13 languages and across 69 channels. STAR’s owned and affiliated channels are distributed in various regions: India; Greater China; Indonesia; the rest of South East Asia; Pakistan; the Middle East and North Africa; the United Kingdom and Europe, and North America.

STAR's programming is primarily distributed via satellite to local cable and direct-to-home (DTH) operators for distribution to their subscribers. STAR a provider of television programming in Asia. Of the 69 channels offered by STAR, 35 channels are wholly owned and operated by STAR, including STAR PLUS, STAR CHINESE CHANNEL, CHANNEL [V], STAR WORLD, STAR MOVIES, STAR CHINESE MOVIES and XING KONG WEI SHI. STAR's channels are distributed both on a pay television and free basis. STAR also provides 34 channels that are joint ventures between the Company and other entities, including channels owned and operated by Phoenix Satellite Television Holdings Limited (Phoenix), ESPN STAR Sports, Media Content & Communications Services (India) Private Limited (MCCS), Vijay Television Private Limited (VPTL) and Asianet Communications Limited.

News Corporation produces and licenses news, sports, general entertainment and movie programming for distribution to distributors in the United States and internationally. Fox News Channel (Fox News) is an around-the-clock all news national cable channel. Fox Sports Net, Inc. (FSN) is a regional sports network (RSN) programmer in the United States, focusing on live professional and major collegiate home team sports events.

FX is a general entertainment network that telecasts original series and films, as well as acquired television series and motion pictures. SPEED brings viewers into the world of auto and motorcycle racing, showcasing NASCAR races, events and original programming, as well as other racing series. FUEL TV is a domestic around-the-clock programming service dedicated to action sports and the lifestyle surrounding it. Fox College Sports consists of three regionally aligned networks, FCS Pacific, FCS Central and FCS Atlantic. Fox Movie Channel (FMC) is Hollywood's studio-based movie network. Fox Reality is an around-the-clock national programming service, which airs syndicated unscripted programming. Fox International Channels (FIC) owns and operates channels in several countries in Europe, Latin America, the Caribbean, Africa and Asia.

Direct Broadcast Satellite Television

SKY Italia distributes over 180 channels of basic and programming services via satellite directly to subscribers in Italy. This programming includes exclusive rights to sporting events, newly released movies and SKY Italia's original programming, such as SKY News, Italy's first around-the-clock news channel. As of June 30, 2009, SKY Italia had approximately 4.8 million subscribers.

Magazines and Inserts, and News America Marketing Group

The Company engages in marketing operations, primarily the publication of free standing inserts and the provision of in-store marketing products and services, and magazine publishing. The Company's United States marketing operations are organized under News America Marketing Group (NAMG). NAMG consists primarily of free-standing insert publications and in-store marketing products and services. NAMG is a publisher of promotional free-standing inserts in the United States. SmartSource is the brand name, which is linked with NAMG's assortment of promotional and marketing products, including free-standing inserts and NAMG's instant coupon machines and various shelf advertising products. The SmartSource iGroup manages NAMG's portfolio of database marketing and online marketing products and services. News Magazines Pty. Ltd (News Magazines) produces both direct sale magazines and inserts for the Company's Australian newspapers.

Newspapers

News International Limited (News International), a subsidiary of the Company, publishes The Times, The Sunday Times, The Sun and the News of the World in the United Kingdom and Ireland. News Limited, the Company's Australian operating subsidiary, is a newspaper publisher in Australia, owning more than 146 daily, Sunday, weekly, bi-weekly and tri-weekly newspapers, of which 104 are suburban publications. News Limited publishes the nationally distributed general interest newspaper in Australia, in cities, such as Sydney, Melbourne, Brisbane, Adelaide, Perth, Hobart and Darwin and newspapers in the suburbs of Sydney, Melbourne, Brisbane, Adelaide, Perth, Hobart and Darwin and the leading suburban newspapers in the suburbs of Sydney, Melbourne, Adelaide, Brisbane and Perth.

The Company owns the New York Post (the Post), a mass circulation, metropolitan morning newspaper that is published seven days a week and distributed in New York City, Baltimore, Boston, Florida and California. Dow Jones provides global business and financial news, information and insight through multiple channels of media. Dow Jones & Company, Inc.’s (Dow Jones) consumer media business includes The Wall Street Journal, Barron’s and MarketWatch franchises (including print, online, television and radio), and its enterprise media business includes Factiva, Newswires, Client Solutions, Indexes and other products and services. Dow Jones’ local media business provides news and information of general interest to local communities throughout the United States.

Book Publishing

HarperCollins is an English language book publisher. Its components are HarperCollins Publishers LLC, HarperCollins Publishers Limited, and The Zondervan Corporation LLC (Zondervan). HarperCollins primarily publishes fiction and non-fiction, including religious books, for the general consumer. In the United Kingdom, HarperCollins publishes some titles for the educational market as well.

Other

Fox Interactive Media, Inc.’s (FIM) digital media properties include MySpace.com, FoxSports.com, Scout.com, IGN.com, RottenTomatoes.com, AskMen.com, Photobucket.com and other Company Web properties. These businesses create original entertainment, news and information content and leverage the Company’s current and archived video assets, and derive revenue principally from the sale of Internet advertising and sponsorships, as well as from subscription services and e-commerce, including the digital sale of video games, television programming and other entertainment products. The Company has a search technology and services agreement through August 2010 with Google Inc. (Google), pursuant to which Google provides search and keyword targeted advertising on a sole basis for a majority of the Company’s Web properties domestically and internationally.

The Company operates Fox Mobile Entertainment, which includes Jamba (known as Jamster in the United States, Canada, the United Kingdom and other English-speaking territories), an international provider of mobile entertainment, offering mobile products directly via mobile phones, including branded content from content providers around the world. Such content includes music, mobile games, video and original content made exclusively for use on mobile phones. Jamba distributes mobile content to consumers in over 25 territories worldwide.

The Company owns or has interests in free-to-air, general entertainment television stations: bTV and GTV in Bulgaria; Channel 10 in Israel; LNT and TV5 in Latvia; Fox Televizija in Serbia, and FOX TV in Turkey. In addition, the Company owns or operates interests in Bulgarian and Russian radio stations. News Digital Media is the Company’s Australian online division. In addition to maintaining the Company’s Australian Websites, News Digital Media is responsible for online advertising and transactions in Australia. News Digital Media sites include carsguide.com.au, news.com.au, MOSHTIX.com.au and truelocal.com.au. News Digital Media also has a 50% stake in CareerOne.com.au.

The Company competes with CNN, MSNBC, CNBC, USA, TNT, Spike TV, HBO and Showtime, ABC, NBC, CBS, The CW Television Network, CNN Headline News and Bloomberg Television.