Lachlan and James Murdoch addressed investors on Wednesday for the first time since the major management shift in July that placed James Murdoch as CEO of 21st Century Fox and his brother Lachlan as executive co-chairman.
According to Lachlan Murdoch, the new structure creates a “true 50/50 partnership” between himself and James.
“It is a true 50/50 partnership,” Lachlan Murdoch asserted on a call after announcing Q4 earnings that reflected a $2.2 billion drop in revenue from the equivalent quarter last year. “James and I have been working together for many years; I think we know each other better than anybody else knows us.”
Added Murdoch, “We are both uniquely invested in the success of the company.”
That’s demonstrably true. The two younger Murdochs will have ample chance to apply that investment in the coming months and years. An earnings statement released by 21st Century Fox on Tuesday noted that the company had beat Wall Street analysts’ expectations, but also reflected a $2.2 billion drop in revenue compared to the equivalent quarter last year.
That drop was primarily due to Fox’s Sky and Shine businesses coming off of the books, but the drop also reflects a decline in theater revenue, after hits such as “X-Men: Days of Future Past” and “Rio 2” pulled in big bucks last year.
The company also took a hit in the television segment, due to a drop in advertising revenues and higher sports costs from events such as the U.S. Open Golf Championship and FIFA Women’s World Cup.
With broadcast viewership and advertising revenue on the wane, a recurring theme of Wednesday’s call was the need to increase revenue from non-linear platforms.
Case in point: Streaming service Hulu, which Fox Broadcasting Company partially owns.
Noting that Hulu Plus is on pace to surpass 10 million paid customers, James Murdoch enthused, “Hulu’s going really well right now.”
He added that Hulu’s growth isn’t necessarily coming at the expense of rival streaming outlets, noting, “Growth is coming from a variety of places,” Murdoch said. I don’t think it’s a zero sum game between Netflix and an Amazon and Hulu … people want it in addition to other things, and that’s driving really good growth right now.
“We are very committed to growing this business,” Murdoch added of Hulu.