And then you traditionally have — when you have a primary — more contested primers. So, we’ll start to see the benefit of that in the first half of our next fiscal ’25 for us. The next question on M&A and the balance sheet, I agree wholeheartedly. I think we have the best balance sheet in the industry. So, I think that’s the math. That’s just a fact. And so, we continue to look for accretive opportunities that would align with our kind of strategic goals and initiatives and we’ll continue to do that. We obviously don’t want our balance sheet to go to waste but we haven’t found anything yet that we’re going to do or follow. So — but it is something we are keeping a close eye on. And then on TV, what is — how does Tubi look over the next three years?
Well, Tubi continues to grow. Obviously, as you get to scale, the growth trajectory, which is just harder to comp with the growth that we’ve had over the last couple of years. But Tubi continues to grow. Money will continue to flow from linear entertainment television, particularly cable entertainment networks into streaming AVOD and SVOD with advertising supported SVOD services. That trend will not slow — will be one of the main beneficiaries of that money flow. So, we’re confident in the continued growth of Tubi. And under the leadership of Angele, it just goes from strength to strength.
Gabrielle Brown : Operator, we have time for one more question.
Operator: Okay. That question comes from the line of Michael Morris from Guggenheim. Please go ahead.
Michael Morris : Thank you. Good morning, guys. Two questions, if I could. The first one is on the JV and some of your existing distribution partners have brought up concerns. It’s in some way unfair to them for you to have a sports-only JV. It seems that you would disagree by virtue of the fact that you’re moving forward. So, I’d love if you could address those concerns and whether you think there will be changes in the marketplace or whether you think those concerns are unfounded. And the second question, a bit more on the model, perhaps for Steve, television profit was, I think, notably strong in the quarter, given that on a year-over-year basis, you did not have the Super Bowl or those extra playoff games. So, can you maybe unpack a little bit?
We would think that those types of events would be uniquely profitable so to show profit growth as you comp those challenges. I’d be curious if you could talk about sort of the sustainability and whether maybe we’re overestimating how profitable those games are. Thank you.
Lachlan Murdoch: Thanks, Mike. Well, let me start. So, on the sports joint venture and how we certainly view it and how we discuss it with our distribution partners. I think the first thing, and this is incredibly important to us is that we are wholly and fundamentally supportive of the traditional cable television bundle. It will continue to be, for a very long time, our number one revenue stream. And we are all in to support our distributors in every way we can in that bundle and supporting their subscribers and their business. So that’s — that is absolutely a fundamental fact for us. Having said that, we’ve always said it’s important for us to put our brands where viewers are, right? And in the universe of sports fans that don’t currently take a cable bundle, that is the universe that the sports joint venture will be entirely focused on and it’s frankly important to us that because we are so invested in the Cable bundle, that the sports joint venture will be very targeted and very focused on the nontraditional Pay TV viewer universe.
And we think we can very cleverly and very — in a very targeted way market to those subscribers so that we minimize any cannibalization of the traditional subscribers. And so, we’re very open with our distributors. We’re very open with how important they are to us and also how — because of that importance, how we can focus the sports joint venture and the errors that needs to be focused on.
Steve Tomsic: Mike, it’s Steve. Just in terms of television profitability. So, quarter-to-quarter, we were up close to $30 million. The way to think about it is the single biggest event was Super Bowl, which was a high tens of million dollars EBITDA contribution last year versus this year. But then you look at it this year to offset that, we grew affiliate fee in the segment by about $70 million. And so, one for the other basically is a push, TV was a push quarter-on-quarter in terms of EBITDA deficit there. And so, then what’s left is the biggest EBITDA sort of driver of contribution when you look at it from a quarter-on-quarter perspective, is the change in entertainment programming costs, which was an ongoing push towards from scripted towards unscripted to get dollar cost per hour down without harming dealership as well as the impact of the strikes.
And so that’s — there’s a lot of other puts and takes in there, but there are sort of the big three things that driver.
Gabrielle Brown: At this point, we are out of time. But if you have any further questions, please give me or Charlie Costanzo a call. Thanks so much for joining us today.
Operator: Ladies and gentlemen, that does conclude your conference call for today. Thank you for using AT&T Executive Teleconference. You may now disconnect.
