By Jennifer Saba
(Reuters) - Twenty-First Century Fox (O:FOXA) President Chase Carey said on Wednesday "a vast majority of customers want a bundle of channels" rather than to cherry pick networks, an option cable providers are increasingly offering in the face of declining subscriptions.
Carey, who is also co-chief operating officer, made the remarks during a quarterly earnings call after Fox posted a 1.2 percent rise in adjusted revenue, helped by growth in its cable network business and the box office success of "Taken 3" and "Kingsman: The Secret Service."
Letting consumers choose what networks they would like to pay for "a la carte" rather than a pricey cable subscription that includes hundreds of channels is a trend that is pitting cable providers and networks against each other.
Verizon Communications Inc (N:VZ) is the latest distributor to challenge the traditional pay-TV universe when it launched in April a new slimmed-down package of channels with the option to add on genres such as sports, kids or news.
Fox, along with Comcast Corp's (O:CMCSA) NBC Universal, said Verizon's service violates their contracts that allow Verizon to carry their networks. Walt Disney Co's (N:DIS) ESPN went so far as to sue Verizon.
Carey did not address Verizon's service directly on the call.
He said the pay-TV ecosystem is strong, but also acknowledged that video streaming products are important and that Fox is considering offering them.
Fox, which is controlled by Rupert Murdoch, said third-quarter revenue rose $6.84 billion from $6.76 billion when adjusted for the sale of its European pay-TV assets Sky Italia and Sky Deutschland AG to Sky Plc (L:SKYB) in November.
Analysts were expecting revenue of $6.89 billion, according to Thomson Reuters I/B/E/S.
At its cable networks, which includes the Fox News Channel and Fox Sports 1, revenue increased 14 percent to $3.6 billion on strong affiliate fees.
The company's television unit, which includes the Fox Network, suffered from weak ratings and a 7 percent decline in advertising revenue. Overall revenue for the unit fell 22 percent to $1.2 billion. During year-ago quarter, Fox broadcast the Super Bowl, which helped boost TV results.
Twenty-First Century Fox owns movie studios including Twenty Century Fox whose revenue for the quarter rose 5 percent to $1.2 billion.
Net income attributable to shareholders fell to $975 million, or 46 cents per share, in the third quarter ended March 31, from $1.05 billion, or 47 cents per share, a year earlier.