Fox Corp. is venturing into the direct-to-consumer streaming market, as announced in a recent article. The company, recognized for its news and sports TV content, revealed its plan to introduce 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.
The forthcoming streaming service from Fox 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 arena, except for the Fox Nation streaming app and the ad-supported service Tubi. Notably, Fox will broadcast the Super Bowl on Tubi for the first time alongside its upcoming streaming service launch.
Fox’s decision to enter the subscription-based streaming market comes after the cancellation of the joint venture sports streaming app Venu, which was a collaboration with Warner Bros. Discovery and Disney. While Warner Bros. Discovery and Disney have their respective streaming platforms for sports content, Fox lacked a similar option until now. Murdoch expressed disappointment over the end of Venu, emphasizing Fox’s commitment to sports and news content following the sale of its entertainment assets to Disney in 2019.
Murdoch highlighted that Fox’s streaming service will be priced modestly, with no plans to convert traditional cable TV customers into streaming subscribers. The company aims to leverage its existing content without incurring additional costs for exclusive rights. This approach is expected to keep the expenses of developing and distributing the platform relatively low compared to competitors.
Furthermore, Murdoch acknowledged the positive impact of exclusive live sports on driving subscriber and ad revenue growth for streaming platforms. He also mentioned the favorable trend of skinny packages offered by traditional pay TV providers, which predominantly include sports and news content. Murdoch expressed optimism that these bundles would appeal to cordless customers, including cord-cutters and cord-nevers, benefiting Fox’s portfolio economically.
