Empire May Help 21st Century Fox Woo Advertisers in 2015
21st Century Fox Ranks Third Largest in 3Q15
Broadcast network ratings for 2014–2015 TV season
At J.P.Morgan’s May 18 Global Technology, Media and Telecom Conference, James Rupert Murdoch, co-chief operating officer of 21st Century Fox (FOXA), commented on his company. Murdoch stated how the company feels about the advertising demand. He said, “But there’s no question that entering this period with a little bit of momentum with a hit show like Empire, as you mentioned, also Gotham and some points on the board for the network, which we haven’t had for a few years is a much better position to be in.”
Earlier, we learned that 21st Century Fox’s Television segment had lower year-over-year advertising revenues in 3Q15. This was due in large part to declining network ratings.
As you can see in the above graph, Fox had the lowest primetime Nielson ratings among the four largest US networks in the 2014–2015 TV season in the 18–49 years age group. NBC (CMCSA) had the highest ranking. The network broadcast Super Bowl XLIX this year.
CBS (CBS) and ABC (DIS) got the second and third highest rating points, respectively, in this key 18–49 years adult demographic, the most sought after by advertisers.
Riding on the success of Empire
Fox may be banking on the success of its Empire TV series launched in 2015. In the 2014–2015 TV season, Empire got the second highest Nielson rating points of 7.1 in the 18–49 years adult category. It followed NBC’s Sunday Night Football with rating points of 7.3 in the same category for the period.
If you want to take a diversified exposure to 21st Century Fox, you may invest in the Consumer Discretionary Select Sector SPDR Fund (XLY). The ETF held ~2.7% in the company on April 30, 2015.
Investors should be aware that XLY also held a total of ~16.8% in media companies Comcast (CMCSA), Time Warner (TWX), and The Walt Disney Company (DIS).
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