In this article, Fox Corp. has announced its entry into the direct-to-consumer streaming market. The company, recognized for its news and sports TV content, revealed its plan to launch a subscription streaming service by the end of the year. CEO Lachlan Murdoch clarified that the streaming service is not intended to disrupt Fox’s position in the traditional bundle. Murdoch provided limited details during the quarterly earnings call, mentioning that the app is currently under development, with more information to follow in the upcoming months.
Fox’s forthcoming streaming service is anticipated to feature both sports and news content, according to Murdoch. Unlike its competitors in legacy media, Fox has been relatively inactive in the streaming sector, apart from the Fox Nation streaming app and the ad-supported service Tubi. Notably, Fox will broadcast the Super Bowl on Tubi for the first time. The decision to venture into subscription-based streaming comes after Fox, Warner Bros. Discovery, and Disney abandoned plans to launch a joint sports streaming app called Venu due to legal obstacles.
Among the three partners, Fox lacked an alternative to offer its sports content outside of the cable TV bundle. Warner Bros. Discovery has HBO Max for live sports, while Disney has ESPN+ and is developing a separate ESPN streamer. Fox’s focus on sports and news content intensified after selling its entertainment assets to Disney in 2019. Murdoch expressed disappointment over the end of Venu, emphasizing Fox’s commitment to the traditional cable bundle while acknowledging the need to reach consumers through various platforms.
Fox’s streaming service is expected to have modest subscriber targets and will be priced accordingly. Murdoch stated that the company does not plan to convert cable TV customers to streaming customers. Fox aims to keep costs low by utilizing existing content without incurring additional rights expenses. The rise of skinny packages from pay TV providers, primarily featuring sports and news content, is seen as a positive trend for Fox’s portfolio. Murdoch highlighted the potential appeal of these bundles to cordless customers, including cord-cutters and cord-nevers.
