Fox Prepares to Launch Direct-to-Consumer Streaming Service
Fox (FOXA) is poised to enter the competitive streaming market with its own service planned for launch later this year. CEO Lachlan Murdoch announced the move, emphasizing the company's desire to reach consumers on their preferred platforms.
Tailoring to Streaming Demography
Analysts note Fox's assets have been geared towards traditional cable TV at a time when consumers increasingly opt for streaming services. The new service aims to cater to "cord-cutters" and "cord-nevers," according to Murdoch.
Modest Subscriber Expectations and Competitive Pricing
Fox intends to avoid cannibalizing its traditional distribution base and plans to price the service accordingly. This approach contrasts with strategies adopted by other legacy media companies.
Warner Bros. Discovery's Digital Enhancements
Warner Bros. Discovery (WBD) has announced a significant investment in its network's digital revamp, which includes a direct-to-consumer streaming offering.
Abandoned Joint Venture with Venu Sports
Fox's management had hinted at streaming plans before the abrupt dissolution of Venu Sports, a proposed joint venture with WBD and Disney (DIS). Regulatory concerns ultimately led to the venture's demise.
Strong Financial Performance
Fox's recent report showcased strong revenue, EBITDA, and earnings growth, buoyed by election spending and live sports events. Optimism remains high heading into the upcoming Super Bowl LIX, with reports of lucrative ad slots securing over $8 million each.