*from www.reuters.com, April 8, 2013 (To view original article click here.)
Take Away #1: Broadcast TV network Fox could become a subscription service if the courts are not able to protect Fox’s business from startup Aereo, said News Corp COO Chase Carey.
Key Facts and Figures:
- Carey’s comments come a week after a U.S. appeals court rejected a petition by the major broadcasters to stop the online service Aereo.
- Aereo offers a cut-rate TV subscription for consumers by capturing broadcast signals over thousands of antennas at once time.
- “If we can’t have our rights properly protected through those legal and political avenues, we will pursue business solutions,” said Carey.
- “One such business solution would be to take the network and turn it into a subscription service,” said Carey, speaking at the National Association of Broadcasters show in Las Vegas.
Take Away #2: The industry sees Aereo and other similar services as a threat to its ability to control subscription fees and generate advertising income, its two main sources of revenue.
Key Facts and Figures:
- News Corp owns Fox and Monday’s comments represent the most drastic action threatened by a broadcaster so far in regards to the Aereo case.
- Carey added that if Fox became a subscription service, it would be in partnership with its content partners and affiliates.
- Carey emphasized in his remarks that pursuing legal avenues would be the priority, however, before making such a move.
- The television industry is closely watching the case to see whether it could disrupt the traditional TV model.
- Besides News Corp., others participating in the Aereo lawsuit include Comcast’s NBC, Disney’s ABC, and CBS.
Take Away #3: Aereo is backed by IAC, a company by media heavyweight Barry Diller, who was actually behind the launch of the Fox Network in 1986.
Key Facts and Figures:
- “It’s disappointing to hear that Fox believes that consumers should not be permitted to access free-to-air broadcast television,” said Aereo spokeswoman Virginia Lam.
Take Away #4: Last June, News Corp. announced a plan to split its publishing and entertainment assets into two publically traded companies.
Key Facts and Figures:
- The entertainment businesses, which include the 20th Century Fox film studio, Fox broadcasting network, and Fox News Channel, will be called the Fox Group.
- Fox also released a statement reiterating that it is committed to making its broadcast signals free for individual consumers.
- News Corp. shares rose 2% to $31.25 in afternoon trading.
*To view original article from www.reuters.com click here.