Fox (NasdaqGS:FOX) Q2 2026 Earnings call February 04, 2026 08:30 AM ET Speaker2As a reminder, this conference is being recorded. I'll now turn the conference over to Chief Investor Relations Officer, Ms. Gabrielle Brown. Please go ahead, Ms. Brown.Speaker0Thank you, Krista. Good morning, and welcome to our fiscal 2026 second quarter earnings call. Joining me on the call today are Lachlan Murdoch, Executive Chair and Chief Executive Officer, John Nallen, President and Chief Operating Officer, Steve Tomsic, o ...

Content Strategy & Revenue Growth - Paramount 需要通过更多院线和剧集内容来填充其服务，特别是 Paramount+ [2] - Paramount 旨在加速内容制作，并通过将 UFC 纳入 Paramount+ 来差异化内容，无需按次付费 [3] - Paramount 计划明年将超过 15 亿美元再投资于其 DTC 资产，如 UFC 和 Paramount+ 原创内容 [4] - David Ellison 认为，公司需要增加内容，并在制作和发行方面保持灵活性，拥抱新的发行方式 [5][6] Potential Acquisition of Warner Brothers Discovery - Paramount 收购 Warner Brothers Discovery 将不会面临反垄断问题，因为 Paramount 是较小的工作室 [8] - 由于有线电视网络业务持续下滑，将 Warner Brothers Turner Networks 与 Paramount 的有线电视网络合并也不会有问题 [9] - 从战略和监管角度来看，Paramount 可能在收购 Warner Brothers Discovery 方面具有优势 [10] - Larry Ellison 可能会利用其 Oracle 股份为收购 Warner Brothers 的交易提供资金 [11] Industry Consolidation & Cost Savings - 行业整合的关键在于内容规模能否奏效 [4] - Paramount 计划将成本节约重新投资到业务中，包括 DTC 资产 [4] - Paramount 正在进行裁员，以实现协同效应，并将成本节约用于更多内容和新的发行模式 [3][6] Market Performance - Paramount 股价上涨约 24% [12]

Core Viewpoint - The company is focusing on enhancing its content strategy to drive revenue growth, particularly through Paramount Plus and other direct-to-consumer (DTC) properties [2][4][5]. Content Strategy - The company aims to increase theatrical and episodic content on Paramount Plus to attract more subscribers, indicating a "build it and they will come" approach [2][3]. - A significant investment of over $1.5 billion is planned for next year to enhance DTC properties, including UFC and Paramount Plus originals [4]. Industry Consolidation - The overall industry is experiencing consolidation, with the company considering a potential bid for Warner Brothers Discovery, which could be strategically beneficial given its smaller studio status [4][8]. - The regulatory environment appears favorable for a merger between Paramount and Warner Brothers, as both are smaller players compared to larger competitors like Comcast [8][9]. Financial Considerations - The company may have the financial capability to engage in a bidding war for Warner Brothers, depending on strategic decisions made by its leadership [10][11]. - The decline in cable networks due to cord-cutting trends may provide an opportunity for the company to integrate Warner Brothers' assets without significant regulatory hurdles [9]. Market Reaction - Following these developments, the company's shares have seen an increase of approximately 2.4% [12].

Customer Experience & Psychology - Companies should focus on understanding customer psychology to improve customer experience, as 95% of decisions are made by the subconscious mind [1] - Psychological and neuroscientific approaches are applicable not only to marketing and advertising but also to customer experience [1] - A simple question can change the customer journey and lead to a purchase [1] Branding & Marketing - Branding is not just a logo or colors, but the feeling associated with the brand; companies invest millions/billions in advertising to maintain this emotional connection [1] - The difference between marketing and neuromarketing is that marketing targets the conscious mind, while neuromarketing targets both the conscious and subconscious [2] - Content is not king, but the "Pawn" (sales) is, because sales has one-on-one interactions; reaching the end of the board transforms the pawn into something else [2] Case Studies & Strategies - The mirror strategy at a coffee shop created FOMO (Fear Of Missing Out) and built a strong community base [1] - Nestlé targeted children in Japan with Kit Kat to cultivate a taste for coffee later in life, resulting in Japan becoming a leading coffee importer after 30 years [1] - Companies should view customers as human beings, not just sources of revenue, to ensure sustainability and brand longevity [1]

Inside Netflix's $18 Billion Content Strategy https://t.co/8IuUIzEkYU ...

Financial Data and Key Metrics Changes - Total company revenue grew 2% year over year, excluding the Super Bowl, reaching $7.2 billion [5][19] - Direct to Consumer (D2C) revenue increased by 9% year over year to $2 billion, with subscription revenue growing 16% [20] - Adjusted OIBDA improved to $688 million, reflecting year-over-year improvements in D2C and filmed entertainment [19][20] - Free cash flow was $123 million, including $108 million in restructuring payments [19] Business Line Data and Key Metrics Changes - D2C OIBDA improved by nearly $180 million year over year, with a loss of $109 million [5][20] - TV Media advertising revenue, excluding the Super Bowl, was flat year over year, with OIBDA at $922 million [21] - Filmed Entertainment revenue increased by 4% year over year to $627 million, with OIBDA of $20 million compared to a loss of $3 million in the previous year [22] Market Data and Key Metrics Changes - Paramount Plus ended the quarter with 79 million global subscribers, up 11 million year over year, including 1.5 million new subscribers in the quarter [6] - Global watch time per user on Paramount Plus increased by 17% year over year, and churn improved by 130 basis points [6] - Pluto TV's global viewing time increased by 26% year over year, although monetization was softer than expected [11] Company Strategy and Development Direction - The company is prioritizing key investments while streamlining non-content expenses due to macroeconomic uncertainties [5] - A differentiated content strategy focusing on fewer, bigger breakthrough original series is driving growth, with Paramount Plus having 25% of the top 10 SVOD originals [7] - The company plans to achieve domestic profitability for Paramount Plus in 2025 and is focused on leveraging its content library and iconic IP [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's performance despite macroeconomic challenges, emphasizing strong engagement and content-driven growth [5][26] - The company anticipates that supply-demand dynamics in digital advertising will stabilize over time, leading to improved monetization [11][31] - Management acknowledged potential impacts from macroeconomic uncertainties, particularly in advertising, but remains focused on expense management and strategic investments [26][67] Other Important Information - The company is expanding the Yellowstone franchise with three new series set to premiere in the coming quarters [8] - The success of Sonic the Hedgehog 3 contributed significantly to the Filmed Entertainment segment's performance [22] - The company is on track to close a pending transaction with Skydance in the first half of the year [19] Q&A Session Summary Question: Advertising pressure on Pluto and digital advertising - Management acknowledged the impact of new entrants in the digital supply space but expects supply-demand dynamics to balance out over time [31] Question: FCC's potential impact on affiliate revenue - Management emphasized the mutually beneficial relationship with affiliates and expressed confidence in securing partnerships despite potential regulatory changes [34] Question: Licensing strategy for library content versus original content - Management views content licensing as a growth business but believes in using valuable IP to grow owned assets while still considering selective licensing opportunities [38] Question: Expectations for linear declines and streaming growth - Management indicated that subscriber declines in linear TV are expected to continue, while streaming growth is driven by subscriber growth, churn improvements, and ARPU [46][47] Question: Current relationship with Taylor Sheridan and potential acquisition of 101 Studios - Management expressed satisfaction with the current partnership with Taylor Sheridan and indicated no plans to acquire 101 Studios, preferring to maintain the existing relationship [51][54] Question: Interest in bundling and joint ventures - Management is open to exploring bundling opportunities but emphasizes a disciplined approach to ensure value and audience growth [60] Question: Upside in TV media performance - Management attributed the strong performance to CBS's broadcast slate and sports, which helped offset softness in the digital landscape [65]