Fox Reports 'Continental Drift' With Netflix6 Nov, 2012 By: Erik Gruenwedel
Studio touts SVOD license deals for driving margins
Twentieth Century Fox Studio posted first-quarter (ended Sept. 30) operating income of $400 million, up $53 million (15%) from operating income of $347 million during the previous-year period.
The studio, which includes 20th Century Fox Home Entertainment, attributed the increase in part to the worldwide theatrical performance of Ice Age: Continental Drift, which has grossed more than $860 million in global box office to date and is now the biggest animated film of all-time at the international box office.
The quarter, which saw revenue dip less than 2% to $1.74 billion from $1.77 billion, also included increased contributions from the television production studios, including increased digital distribution revenue related to the timing of delivery of subscription video-on-demand content to Netflix.
In May, Netflix signed streaming deals with Fox for the former’s Latin America and Brazilian SVOD services. That deal augmented prior expansion of their agreements encompassing both physical and digital distribution of Fox movies and television programs in the United States.