Media companies are on the lookout for new viewers beyond traditional cable TV, and Fox is introducing a subscription-based streaming service called “Fox One,” which is expected to launch just in time for the fall football season.
Fox shared more details about the service, which it first mentioned in February. The pricing for Fox One will align with its standard wholesale fees, and customers shouldn’t expect any discounts.
Following the announcement, Fox’s stock saw an increase of nearly 5%, buoyed by quarterly profits and revenues that exceeded Wall Street’s predictions, largely due to a spike in advertising revenues tied to the February broadcast of “Super Bowl LIX.”
The Murdoch Family, which controls Fox, is focusing on balancing traditional media with the likes of Netflix, while also capitalizing on advertising revenue from Tubi, its free streaming service that boasts around 97 million active users each month.
Fox intends to collaborate with various distributors and platforms to roll out Fox One, as CEO Lachlan Murdoch explained to analysts, hinting at possible partnerships with other streaming services.
“The pricing will be competitive,” Murdoch mentioned, emphasizing that Fox aims to retain its cable subscribers while launching the streaming service.
In the March quarter, there was a noticeable trend of more advertisers turning to Fox’s properties, including Fox News, Fox Sports, and Tubi, as the audience continues to expand. Nielsen reports show that approximately 127.7 million viewers tuned in for the Super Bowl, marking a historic high for television viewership. Advertisers paid about $8 million for every 30 seconds of ad time during the game.
Fox is actively working with various distributors and platforms for the Fox One initiative.
Overall, revenue surged by 27% in the third quarter to reach $4.37 billion, which exceeded expectations of $4.18 billion. Advertising revenue saw a significant boost of 65%, totaling $2.04 billion, surpassing the estimate of $1.67 billion.
Adjusted earnings per share came in at $1.10, beating the predicted amount of $0.91.
