Fox Corporation (NASDAQ:FOX) Q1 2024 Earnings Call Transcript

Phil Cusick: Hi. Thanks. A lot has been asked, but Lachlan, thinking about your comments on DR and recognizing that some of those upfront issues hopefully fade. But it makes me curious about your view on the future of the linear video ad landscape you have Tubi which allows you to benefit from the shift to digital. But do you think we’ve reached a tipping point where linear video advertising is it secular not just cyclical decline? Thank you.

Steve Tomsic: Thank you, Phil. The short answer is we got to you have to I think break it up by category, right? And so if we look at Sports and News there’s no sign of a slowdown in sort of demand for the really incredible and unique reach that those platforms deliver our advertising clients. I think on the DR issue is a specific issue that really relates to upfront before last we’re — there was a — due to the negotiating strategy of some of our competitors there was an oversupply of direct response in the market and that’s driven pricing down. And we see — we didn’t see the same activity in this past upfront. And so we expect the pricing pressure on DR to ameliorate or wash out in the coming quarters. So we do see that as a shorter-term problem and not a structural problem at all.

And so it comes back to particularly in News and Sports, there is no other content or platform that offers the reach that those categories offer. And so we are optimistic is not a strong enough word. We are very confident in the future of linear advertising when you can deliver and the audiences that we deliver with the brands and the brand safety that we also can offer our clients.

Gabrielle Brown: At this point, we are out of time. But if you have any further questions, please give me or Dan Carey a call. Thank you once again for joining today.

Steve Tomsic: Thank you everyone. Thank you.

Operator: Ladies and gentlemen, that does conclude your conference call for today. Thank you for using AT&T Executive Teleconference. You may now disconnect.