News Corp (NWS) UBS Global Media & Communications Conference summary

Industry trends and performance

• U.S. book market saw robust growth, especially from May onward, with strong consumer spending and increased market share.

• Retailers reported healthy store traffic, suggesting a positive holiday season outlook.

• Aggressive retail promotions and notable titles, such as J.D. Vance's book, drove sales spikes.

• Fiction, particularly 'romantasy,' is booming, offsetting declines in nonfiction.

• Print books experienced a resurgence post-pandemic, with young readers driving demand for deluxe editions.

Digital and audiobook growth

• Audiobooks have surpassed e-books in revenue, driven by competition and new entrants like Spotify.

• Spotify's entry monetized occasional listeners, while Audible responded with more aggressive promotions.

• The wholesale, per-listen model with distributors ensures transparent royalties for authors.

• Technical limitations in Spotify's family plan are expected to be resolved, potentially unlocking further growth.

• International expansion of audiobook platforms is anticipated to drive future growth.

Strategic focus and growth drivers

• Management aims to outpace the market's 2%-3% annual growth by investing in trending genres and new authors.

• Backlist strategy leverages recurring waves of demand for established titles, especially when linked to current events or media adaptations.

• Margin expansion is supported by digital growth and a shift toward higher-margin backlist titles.

• M&A activity remains disciplined, focusing on strategic fits and cost synergies, with recent acquisitions in Germany.