MERRILL LYNCH CONFERENCE 
    DAVID HASLINGDEN / CEO




                             1
CAUTIONARY STATEMENT REGARDING 
FORWARD LOOKING STATEMENTS.
This document contains certain “forward‐looking statements” wi...
WHAT IS FOX INTERNATIONAL CHANNELS


    FOX and National Geographic branded Channels
•
    140 Channels
•
    32 Language...
CHANNEL
Distribution
CHANNEL
Distribution
FOR EXAMPLE: OUR ITALIAN CHANNEL LINEUP




                                      7
CHANNEL
Distribution




               8
CHANNEL
Distribution




               9
CHANNEL
Distribution




               10
CHANNEL
Distribution




               11
DIVERSE MARKETS
PayTV penetration 2008



                                     US PayTV




                              ...
DIVERSE MARKETS
Digital PayTV penetration 2008



                                           US PayTV


                  ...
STILL EARLY ON IN THE GROWTH CURVE
With similar experience curves: young markets will be key growth drivers

             ...
STILL EARLY ON IN THE GROWTH CURVE
US Broadcast vs. cable network’s share of audience




           Broadcast            ...
THAT HAVE DELIVERED GROWTH
Industry PayTV revenue ‐ international CAGR 13% (2004‐2008)




                               ...
GROWTH DRIVERS
3 Key Factors




1. Socio‐demographic change
2. Competition among distributors
3. Acceptance of cable adve...
FIC REVENUE PERFORMANCE / FY03‐08
Revenues up at 30%+ CAGR to $926m

                                                     ...
FIC REVENUE PERFORMANCE / FY03‐08
Every segment showing growth

                                                          ...
GROWTH DRIVERS / FY03 ‐ 08
Launching new channels




  “Channel” means a unique distribution feed.  FIC launched 40 in FY...
EXAMPLE: LATIN AMERICA 
PayTV subscribers growing at 11% CAGR




                                        CAGR 2%




    ...
EXAMPLE: LATIN AMERICA 
19 new basic channels in 6 years ‐ cumulative FIC subscribers +31% CAGR



                       ...
EXAMPLE: LATIN AMERICA 
FIC’s Ad revenue grew at a 43% CAGR



                                                CAGR 31%

 ...
FIC PROFIT PERFORMANCE /FY03‐08
Operating Profits grown to $232m (50%+ CAGR) 

                                           ...
FIC PROFIT PERFORMANCE /FY03‐08
Every segment profitable

                                                          $232m
...
MARGIN GROWTH 
Operating margin increased from below 10% to above 25%  


                                                ...
CHANNEL AGE & PROFITABILITY
New channels broke‐even by 6th quarter after launch

                                         ...
RATINGS PERFORMANCE
Nat Geo vs. Discovery




                           Discovery
      Nat Geo


                       ...
NAT GEO vs. DISCOVERY IN LATAM
Catching up on ratings




                                      Discovery
            Nat ...
NAT GEO vs. DISCOVERY vs FOX
Our FOX channel is a ratings leader in Latin America




                                    ...
FOX: #1 IN ENTERTAINMENT

                                                                              SPAIN
    LATIN AM...
FIC RATINGS ON SKY ITALIA
Driving viewership on SKY




   OUR CHANNELS 
     DELIVER 21% 
 OF ALL TV RATINGS 
    IN SKY ...
NEWSCORP OPPORTUNITIES / ITALY

ENTERTAINMENT                                    DOCUMENTARIES                            ...
NEWSCORP OPPORTUNITIES / GERMANY

ENTERTAINMENT                         DOCUMENTARIES                        KIDS
FOX     ...
MARKET GROWTH /02‐08
13% CAGR Intl Markets (industry multichannel revenue)




                                           ...
MARKET GROWTH /08‐12
Not 13%, but 10% CAGR is not too shabby




                                                         ...
FINANCIAL PROFILE OF BUSINESS
Many and young




                           Profit Contribution ($m) by Channel




WELL P...
STRONG BRANDS




         “While branding has not historically been overly important in 
         television… brand is in...
OFFICES
Distribution




  140   Channels
383m    Cum. Subs.
7,500   Affiliates
3,500   Advertisers
1,800   Employees
   3...
OFFICES
DISTRIBUTION

            AVERAGE 10 YEARS AT FIC




  140   Channels
383m    Cum. Subs.
7,500   Affiliates
3,500...
OFFICES
DISTRIBUTION

            AVERAGE 10 YEARS AT FIC

              AVERAGE 6 YEARS AT FIC

  140   Channels
383m    ...
OFFICES
DISTRIBUTION

            AVERAGE 10 YEARS AT FIC

              AVERAGE 6 YEARS AT FIC

  140   Channels
383m    ...
SLEEPING GIANTS
Medium term?

                                                JAPAN
     CHINA
  • 369m TV homes          ...
CHINA
One day?




• Limited channel distribution in 80 cities
• 50m Households viewing Nat Geo programming blocks
• At so...
CHINA
One day?




           47
ENGINE OF GROWTH FOR NWS
             We are well positioned for the opportunities that lay in front of us

              ...
news corp David Haslingden at Merrill Lynch 2008 Media Fall Preview
news corp David Haslingden at Merrill Lynch 2008 Media Fall Preview
news corp David Haslingden at Merrill Lynch 2008 Media Fall Preview
news corp David Haslingden at Merrill Lynch 2008 Media Fall Preview
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news corp David Haslingden at Merrill Lynch 2008 Media Fall Preview

  1. 1. MERRILL LYNCH CONFERENCE  DAVID HASLINGDEN / CEO 1
  2. 2. CAUTIONARY STATEMENT REGARDING  FORWARD LOOKING STATEMENTS. This document contains certain “forward‐looking statements” within the meaning  of the Private Securities Litigation Reform Act of 1995.  These forward‐looking statements are based on management’s present  expectations and beliefs about future events.  As with any projection or forecast, these statements are inherently susceptible to  risks, uncertainty and changes in circumstance. Important factors could cause  actual results to differ materially from those expressed or implied by these forward‐looking statements and should be considered in evaluating the outlook of  the Company.  Risks and uncertainties are detailed from time to time in News Corporation’s filings  with the U.S. Securities and Exchange Commission. News Corporation is under no  obligation to, and expressly disclaims any obligation to, update or alter its forward‐looking statements, whether as a result of changes, new information,  subsequent events or otherwise. For additional information, please visit Newscorp website: www.newscorp.com/investor/index.html 2
  3. 3. WHAT IS FOX INTERNATIONAL CHANNELS FOX and National Geographic branded Channels • 140 Channels • 32 Languages • 383m Cumulative Subscribers • 7,500 different Affiliates • 3,500 different Advertisers • 1,800 staff • 37 offices • 4
  4. 4. CHANNEL Distribution
  5. 5. CHANNEL Distribution
  6. 6. FOR EXAMPLE: OUR ITALIAN CHANNEL LINEUP 7
  7. 7. CHANNEL Distribution 8
  8. 8. CHANNEL Distribution 9
  9. 9. CHANNEL Distribution 10
  10. 10. CHANNEL Distribution 11
  11. 11. DIVERSE MARKETS PayTV penetration 2008 US PayTV 12 Source: SNL Kagan, FIC analysis
  12. 12. DIVERSE MARKETS Digital PayTV penetration 2008 US PayTV US Digital PayTV 13 Source: SNL Kagan, FIC analysis
  13. 13. STILL EARLY ON IN THE GROWTH CURVE With similar experience curves: young markets will be key growth drivers US vs UK vs Chile  starting from the year they reached 20% penetration YEAR US starting in 1977 UK starting in 1994 Chile starting in 2004 14 Source: World Bank 2008, SNL Kagan 2008
  14. 14. STILL EARLY ON IN THE GROWTH CURVE US Broadcast vs. cable network’s share of audience Broadcast Cable Networks 15 Source: Nielsen, Merrill Lynch Research
  15. 15. THAT HAVE DELIVERED GROWTH Industry PayTV revenue ‐ international CAGR 13% (2004‐2008) 16 Source: FIC analysis of SNL Kagan PayTV programmer Income (excluding platforms)
  16. 16. GROWTH DRIVERS 3 Key Factors 1. Socio‐demographic change 2. Competition among distributors 3. Acceptance of cable advertising 17
  17. 17. FIC REVENUE PERFORMANCE / FY03‐08 Revenues up at 30%+ CAGR to $926m $926m FY03‐07 are proforma, including National Geographic Channels International 18
  18. 18. FIC REVENUE PERFORMANCE / FY03‐08 Every segment showing growth $926m Internet Production NGC LatAm FOX LatAm NGC Europe FOX Europe NGC Asia FOX Asia FY03‐07 are proforma, including National Geographic Channels International 19
  19. 19. GROWTH DRIVERS / FY03 ‐ 08 Launching new channels “Channel” means a unique distribution feed.  FIC launched 40 in FY08 20
  20. 20. EXAMPLE: LATIN AMERICA  PayTV subscribers growing at 11% CAGR CAGR 2% CAGR 11% 21 Source: FIC analysis, SNL Kagan
  21. 21. EXAMPLE: LATIN AMERICA  19 new basic channels in 6 years ‐ cumulative FIC subscribers +31% CAGR CAGR 31% CAGR 2% CAGR 11% 22 Source: FIC analysis, SNL Kagan
  22. 22. EXAMPLE: LATIN AMERICA  FIC’s Ad revenue grew at a 43% CAGR CAGR 31% CAGR 2% CAGR 43% CAGR 11% 23 Source: FIC analysis, SNL Kagan
  23. 23. FIC PROFIT PERFORMANCE /FY03‐08 Operating Profits grown to $232m (50%+ CAGR)  $232m FY03‐07 are proforma, including National Geographic Channels International and  excludes acquisition related amortization of $14 million in FY08. 24
  24. 24. FIC PROFIT PERFORMANCE /FY03‐08 Every segment profitable $232m Internet Production NGC LatAm FOX LatAm NGC Europe FOX Europe NGC Asia FOX Asia FY03‐07 are proforma, including National Geographic Channels International FY03‐07 are proforma, including National Geographic Channels International and  excludes acquisition related amortization of $14 million in FY08. 25
  25. 25. MARGIN GROWTH  Operating margin increased from below 10% to above 25%   40 Channels >25% 20 <10% FIC  Margin FIC  New Channels 26
  26. 26. CHANNEL AGE & PROFITABILITY New channels broke‐even by 6th quarter after launch >$20m Channels launched less than 3 years ago contribute >$20m in aggregate profits. 27
  27. 27. RATINGS PERFORMANCE Nat Geo vs. Discovery Discovery Nat Geo 28 Source: FIC analysis of people‐meter ratings in multichannel homes, prime time, 2008 to date
  28. 28. NAT GEO vs. DISCOVERY IN LATAM Catching up on ratings Discovery Nat Geo 29 Source: FIC analysis of people‐meter ratings in multichannel homes, prime time, 2008 to date
  29. 29. NAT GEO vs. DISCOVERY vs FOX Our FOX channel is a ratings leader in Latin America Discovery FOX Nat Geo 30 Source: FIC analysis of people‐meter ratings in multichannel homes, prime time, 2008 to date
  30. 30. FOX: #1 IN ENTERTAINMENT SPAIN LATIN AMERICA Pay/P18‐34HM rat% D+/Cable/P18‐34 rat% FOX 0.59 FOX 0.55 TNT 0.50 C+ 0.51 Disney Channel 0.39 PARAMOUNT  0.46 Universal Channel 0.34 COMEDYAXN 0.41 Cartoon Network 0.30 CALLE 13 0.25 JAPAN ITALY Pay/P18‐34HM rat% Pay/P18‐34HM rat% FOX 0.50 FOX 0.35 Sky Sport 1 0.45 Animax 0.28 FOX LIFE 0.42 Kids Station 0.26 FOX CRIME 0.39 Sky A Sports+Jidaigeki Senmon  0.20 Sky Cinema 1 0.30 Channel 0.20 31 Source: FIC analysis of people‐meter ratings in multichannel homes, prime time, 2008 to date
  31. 31. FIC RATINGS ON SKY ITALIA Driving viewership on SKY OUR CHANNELS  DELIVER 21%  OF ALL TV RATINGS  IN SKY HOMES  32
  32. 32. NEWSCORP OPPORTUNITIES / ITALY ENTERTAINMENT DOCUMENTARIES KIDS Cartoon Network Discovery Science BBC Prime FOX National Geographic Cartoon Network +1 Discovery Civilization Hallmark FOX +1 National Geographic +1 Boomerang Animal Planet E! Entertainment FOX Life NatGeoAdventure RaiSat Smash Comedy Central FOX Life +1 NatGeoWild Jetix AXN FOX Crime HistoryChannel Jetix +1 DiscoveryRealTime FOX Crime +1  HistoryChannel+1 Nickelodeon Fantasy FX RaiSat Gambero Rosso Disney Channel Current Cult Marco Polo Disney Channel +1 Cooltoon SKY Vivo Alice Toon Disney                    GXT                      SKY Show Leonardo ToonDisney +1 GXT+1 Jimmy DiscoveryChannel Playhouse Disney RaiSat Extra DiscoveryTravel& Living RaiSat YoYo RaiSat Premium JimJam SPORT CINEMA MUSIC NatGeoMusic Music on SKY  Eurosport News SKY CINEMA 1 SKY Cinema Classics Video Italia Radio on SKY*MTV  ESPN Classic SKY Cinema 2 The MGM Channel Deejay TV Brand New Nuvolari SKY CINEMA 3 RAISAT Cinema Match Music Rock  MTV Hits Snai Sat SKY Cinema Hits SKY Cinema HD TV MTV Gold Sport Italia SKY Cinema MAX Music Box MTV Pulse Yacht &Sail SKY Cinema Mania VH1 * FIC CHANNELS 33
  33. 33. NEWSCORP OPPORTUNITIES / GERMANY ENTERTAINMENT DOCUMENTARIES KIDS FOX Disney Channel Discovery Channel Premiere 4 Junior  Discovery Geschichte Premiere Nostalgie Jetix Discovery HD Premiere Krimi Animal Planet Premiere HD Focus Gesundheit 13th Street Sci Fi Heimatkanal SPORT CINEMA MUSIC Hit24 Premiere  Premiere 1 Goldstar TV Sportportal Premiere 2 Classica Premiere 3 Premiere Filmfest Premiere Film Classics MGM * FIC CHANNELS 34
  34. 34. MARKET GROWTH /02‐08 13% CAGR Intl Markets (industry multichannel revenue) 35 Source: FIC analysis of SNL Kagan PayTV programmer Income (excluding platforms)
  35. 35. MARKET GROWTH /08‐12 Not 13%, but 10% CAGR is not too shabby 36 Source: FIC analysis of SNL Kagan PayTV programmer Income (excluding platforms)
  36. 36. FINANCIAL PROFILE OF BUSINESS Many and young Profit Contribution ($m) by Channel WELL POSITIONED TO: ‐Increase subscribers above the organic growth of current platforms ‐Increase ratings 37
  37. 37. STRONG BRANDS “While branding has not historically been overly important in  television… brand is increasing in importance, along with the  growth of multi‐platform opportunities” Jessica Reif Cohen 38 Source: Scripps Networks Interactive – Merrill Lynch Equity Report Sept 2008
  38. 38. OFFICES Distribution 140 Channels 383m Cum. Subs. 7,500 Affiliates 3,500 Advertisers 1,800 Employees 37 Offices 41
  39. 39. OFFICES DISTRIBUTION AVERAGE 10 YEARS AT FIC 140 Channels 383m Cum. Subs. 7,500 Affiliates 3,500 Advertisers 1,800 Employees 37 Offices 42
  40. 40. OFFICES DISTRIBUTION AVERAGE 10 YEARS AT FIC AVERAGE 6 YEARS AT FIC 140 Channels 383m Cum. Subs. 7,500 Affiliates 3,500 Advertisers 1,800 Employees 37 Offices 43
  41. 41. OFFICES DISTRIBUTION AVERAGE 10 YEARS AT FIC AVERAGE 6 YEARS AT FIC 140 Channels 383m Cum. Subs. 7,500 Affiliates 3,500 Advertisers 1,800 Employees 37 Offices 44
  42. 42. SLEEPING GIANTS Medium term? JAPAN CHINA • 369m TV homes • 48m TV homes • 164m PayTV home (45%) • 11m PayTV home (23%) • 41m digital homes (11%) • $17bn TV Ad market • National Geographic Magazine recently  • Pay Channels get 2% of this ad spend approved for distribution  • 48m TV homes • FIC has 6 Channels, second intl. player  behind Liberty’s Jupiter RUSSIA KOREA • 18m TV homes • 50m TV homes • 17m PayTV home (95%) • 17m PayTV home (34%) • 4m digital homes (23%) • 4.5m digital homes (9%) • FOX and Nat Geo are the two leading  • Digital penetration growing at 20% p.a. international channel brands • We have 4 channels, avg. 2m homes • Impending changes to Media laws will  • Extremely embryonic permit foreign operators to increase  • Still in investment phase ownership; greater return possibilities 45 Source: eMarketer, SNL Kagan, FIC analysis
  43. 43. CHINA One day? • Limited channel distribution in 80 cities • 50m Households viewing Nat Geo programming blocks • At some point foreign channels will be granted access 46
  44. 44. CHINA One day? 47
  45. 45. ENGINE OF GROWTH FOR NWS We are well positioned for the opportunities that lay in front of us 50% Historical  CAGR FIC Op Inc FY03‐07 are proforma, including National Geographic Channels International and excludes acquisition related  48 amortization of $14 million in FY08.

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