Fox Enters Streaming Wars with Direct-to-Consumer Service
Fox Corporation (FOXA) plans to launch its own streaming service by year-end, catering to the growing demand for over-the-top (OTT) content. The service aims to target cord-cutters and cord-nevers, recognizing the shift in consumer preferences towards streaming platforms.
Despite recognizing the value of traditional cable bundles, Fox CEO Lachlan Murdoch emphasized the need to reach consumers on their preferred platforms. The company's assets have historically been heavily skewed towards linear pay TV ecosystems.
Modest Subscriber Expectations, Competitive Pricing
Fox has tempered its subscriber expectations, intending to price its service accordingly. The company does not aim to convert traditional cable subscribers to its direct-to-consumer model.
Legacy Players Adapt to Streaming Transition
Other legacy media players are also adapting to the streaming transition. Warner Bros. Discovery (WBD) has recently announced plans for a $70 million investment in a digital revamp, including a dedicated streaming product.
Abandoned Venu Sports Joint Venture
Fox's streaming plans follow the abrupt discontinuation of Venu Sports, a joint venture with WBD and Disney's ESPN (DIS). Concerns over regulatory and antitrust issues ultimately led to the abandonment of the project.
Revenue Growth Driven by Election Spending, Sports
In its fiscal second quarter, Fox reported strong revenue, EBITDA, and earnings, driven by electoral spending and a packed sports schedule. The upcoming Super Bowl LIX is expected to further boost share performance.
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