News Corporation, a media and information services company, creates and distributes content for consumers and businesses worldwide. It operates through News and Information Services, Book Publishing, Digital Real Estate Services, and Cable Network Programming segments. The company distributes content and data products, including The Wall Street Journal, Factiva, Dow Jones Risk & Compliance, Dow Jones Newswires, Barron's, MarketWatch, Dow Jones PEVC, and DJX through various media channels, such as newspapers, newswires, Websites, applications for mobile devices, tablets and e-book readers, newsletters, magazines, proprietary databases, conferences, and videos. It also owns and operates daily, Sunday, weekly, and bi-weekly newspapers comprising The Australian, The Weekend Australian, The Daily Telegraph, The Sunday Telegraph, Herald Sun, Sunday Herald Sun, The Courier Mail, The Sunday Mail, The Advertiser, Sunday Mail, The Sun, The Sun on Sunday, The Times, The Sunday Times, and New York Post, as well as digital mastheads and other Websites. In addition, the company offers home-delivered shopper media that include free-standing inserts and direct mail products; in-store marketing products and services primarily to consumer packaged goods manufacturers; in-store merchandising services; and digital marketing solutions. Further, it publishes general fiction, nonfiction, children's, and religious books; and provides sports programming services with eight television channels distributed through cable, satellite and IP, various interactive viewing applications, and broadcast rights to live sporting events. Additionally, the company offers property and property-related services on its Websites and mobile applications, as well as residential and commercial property Websites; online real estate services; and professional software and services products, which comprise Top Producer, FiveStreet, and ListHub. News Corporation is headquartered in New York, New York.
Business Analysis of News Corp
The Media & Entertainment Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how News Corp compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by News Corp to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.
Here is the performance snapshot of News Corp with an interactive chart.
- Revenue Growth: News Corp reported a revenue growth of -2.7% year-on-year during 2016. Broadcasting, Cable, and Filmed Entertainment Industry grew at 4.6% in the same period
- COGS share of Revenues: As a percentage of revenue, News Corp spent 57.0% of its total revenues on COGS. Broadcasting, Cable, and Filmed Entertainment industry average (COGS share of revenue) in the same period was 28.0%
- R&D share of Revenues: News Corp R&D share of Revenues details are not available because either company does not share the data or we do not have it
- SG&A share of Revenues: As a percentage of revenue, News Corp spent 32.8% of its total revenues on Sales, Marketing, and General Administration (SG&A). Broadcasting, Cable, and Filmed Entertainment industry average SG&A spending in the same period was 43.3%
- Inventory share of Revenues: News Corp Inventory share of Revenues details are not available because either company does not share the data or we do not have it
- Accounts Payable share of Revenues: As a percentage of revenue, News Corp invested 2.6% of its total revenues on Accounts Payable (A/P) Broadcasting, Cable, and Filmed Entertainment industry average Accounts Payable investment in the same period was 10.1%
- Accounts Receivable share of Revenues: As a percentage of revenue, News Corp invested 14.8% of its total revenues on Accounts Receivable (A/R). Broadcasting, Cable, and Filmed Entertainment industry average Accounts Receivable investment in the same period was 17.3%
- PP&E share of Revenues: As a percentage of revenue, News Corp invested 29.0% of its total revenues on Property, Plants, and Equipments (PP&E). Broadcasting, Cable, and Filmed Entertainment industry average PPE investment in the same period was 29.4%
- Intangibles share of Revenues: As a percentage of revenue, News Corp invested 71.4% of its total revenues on Intangibles. Broadcasting, Cable, and Filmed Entertainment industry average Intangibles investment in the same period was 113.0%
- Net Margins: News Corp Net Margins in the year 2016 were 2.2%. Broadcasting, Cable, and Filmed Entertainment industry average Net Margins in the same period were 11.6%
Sector and Industry Association of News Corp
For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.
News Corp is associated with Media & Entertainment Sector and Broadcasting, Cable, and Filmed Entertainment Industry.
Media & Entertainment sector is comprised of the following industries: Broadcasting, Cable, and Filmed Entertainment; Media Agency Services; Publishing. The definitions for each of the industries is as follows:
- Broadcasting, Cable, and Filmed Entertainment industry includes companies that provide radio and television programming. It also includes companies that provide music and filmed entertainment.
- Media Agency Services industry includes companies that provide advertising, public relations and marketing services. It also includes billboard providers and telemarketers.
- Publishing industry includes newspapers, magazine, and book publishers.
Industry Ranking of News Corp
With $8.3 billion revenues, News Corp ranked number 8 of all the companies in the US Broadcasting, Cable, and Filmed Entertainment industry. There were a total of 38 public companies in the US Broadcasting, Cable, and Filmed Entertainment industry that had revenues greater than $50 million during 2016.
The top-10 companies in the US Broadcasting, Cable, and Filmed Entertainment industry by revenues during 2016 were:
Business Model Analysis (BMA) Framework
We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.