Fox Enters Streaming Market with Direct-to-Consumer Service

Fox (FOXA) is set to launch its own streaming service, targeting "cord-cutters" and "cord-nevers," as it responds to the growing trend of consumers ditching cable for more affordable streaming options. This move comes as analysts have noted Fox's heavy reliance on linear pay TV at a time when streaming services are gaining traction.

Fox CEO Lachlan Murdoch emphasized the company's commitment to reaching consumers wherever they are while acknowledging that traditional cable bundles remain valuable. He added that the new streaming service will be priced accordingly, with modest subscriber expectations.

This launch follows the announcement by Warner Bros. Discovery (WBD) to invest heavily in the digital revamp of its network, which includes its own streaming product. Previously, Fox was involved in the planned joint venture Venu Sports, but it was abandoned due to regulatory concerns.

Fox's recent financial results exceeded expectations, driven by election spending and live sports events. The upcoming Super Bowl LIX is expected to further boost share value, with Fox securing over $8 million for 30-second ad slots.

Fox's entry into the competitive streaming landscape reflects the industry's adaptation to the shift towards streaming services. The company aims to capitalize on its existing content and expertise to establish a foothold in this rapidly evolving market.