Fox (FOXA) Goldman Sachs Communacopia + Technology Conference 2024 summary

Strategic focus and business performance

• Maintains a streamlined portfolio centered on live news and sports, avoiding heavy investment in entertainment streaming.

• Achieved $14 billion in revenue and nearly $3 billion EBITDA in a non-Super Bowl, non-election year.

• Divested entertainment and regional sports networks to focus on core brands, driving strong retransmission revenue.

• Prioritizes must-have channels for cable bundles, supporting industry-leading rate increases.

• Expects continued growth by focusing on live content and leveraging premium brand value.

Sports rights and distribution strategy

• Sports rights are managed as a portfolio, balancing reach, advertising, and distributor value.

• Rationalized portfolio by dropping less effective rights (e.g., WWE, Thursday Night Football) and adding successful events like Copa América and UEFA Euros.

• Remains committed to the cable bundle, keeping sports rights within traditional distribution.

• Venu, a new sports streaming service, targets cord cutters and cord nevers, offering a user-centric, sport-focused experience.

• NBA rights were not pursued in the latest cycle as they were not seen as additive.

TV ecosystem, cord cutting, and bundles

• Sees a floor for pay TV subscribers, with core channels remaining essential in bundles.

• Skinny bundles and digital platforms are viewed as key to reaching audiences who have left traditional TV.

• Venu aims to simplify sports viewing for consumers, consolidating rights and reducing fragmentation.

• Seeks to avoid cannibalizing cable subscribers with Venu, focusing on new audiences.