Fox Announces Entry into Streaming Market with Direct-to-Consumer Service

Key Financial Metrics:

* FOXA: +4.51%
* WBD: -0.69%
* DIS: -0.73%

Overview:

Fox Corporation (FOXA) is set to join the competitive streaming landscape with its own direct-to-consumer service, targeting launch by year-end. CEO Lachlan Murdoch emphasized the company's desire to reach consumers "wherever they are," while acknowledging the continued value of traditional cable bundles.

Target Audience and Pricing:

The new service will focus on "cord-cutters" and "cord-nevers," individuals who have abandoned or never subscribed to cable. Fox plans to offer modest subscriber expectations with competitive pricing.

Industry Transition and Competition:

Fox's move reflects the industry's shift towards streaming. Warner Bros. Discovery (WBD) has recently announced a significant investment in its digital revamp and streaming platform.

Abandoned Venu Sports Venture:

Fox previously explored a joint sports streaming venture with WBD and Disney (DIS), known as Venu Sports. However, increased regulatory and antitrust concerns led to the venture's abandonment.

Financial Performance and Outlook:

Fox reported strong fiscal second quarter results, exceeding consensus expectations driven by election spending and live sports broadcasts. The upcoming Super Bowl LIX is expected to provide further momentum for the company's shares.