Fox Corp. was mainly far from the streaming war, but it is about to change.
Fox Corp.’s Executive Chairman Lachlan Murdoch told Wall Street analysts on Tuesday that his company will launch streaming products for consumers and sports assets.
The announcement is another approval that the consumer shifts from a cable or satellite video provider to streaming services, and is alive at the time when the payment of TV subscription revenue is borrowed.
Murdoch did not provide the name or price of the service, but he said he would start by the end of the year. He stated that the plan should not be considered a sign of abandoning the traditional paid television business.
“I think the conventional bundles are still most worth the consumers and the most valuable for the company,” said Murdock. “But, even so, we want to reach consumers wherever we are. Currently, there are many population outside the conventional cable bundle in either code cutter or cordnever. “
Murdoch said that the expected streaming service was “modest.” He said that the existing content of Fox News and Fox Sports was packaged, and no additional right costs were incurred.
The only streaming property of FOX is the advertising -supported service Tubi and Fox Nation. This is a $ 7.99 -month service operated by Fox News, with about 2 million subscribers. Fox Nation is mainly entertainment and documentary show, and some FOX News Programs are provided the day after running a cable.
The fox cable business remains strong. The second quarter of financial results showed that the company increased by more than 30 % from a year ago with a profit of $ 2.17 billion. However, paid television houses (now about 70 million in the United States) continue to decrease nearly 10 % a year.
Murdoch was Ben’s solid supporter, a joint venture between Warner Brothers Discovery and Walt Dizney Co., and would have provided streaming services with channels that carry sports characteristics. However, Venu never got off the ground after a legal challenge from FUBO, which provides similar services.
After the court ruled that Venu was anti -competitive, the venture was closed following the settlement agreement. Disney has gained a majority of FUBO’s shares and fuses with the Hulu Live TV service.
“Legal -related attention to business has become more and more difficult to endure,” said Murdoch.
But Fox will be a clinician in a field where several major players still have lost billions of dollars.
“Nobody wants to leave it when streaming is replaced by Linear,” said Ross Benes. “However, the subscription streaming market is already crowded. Another entrants will be more competitive and more difficult to get profits.”
Times’s staff writer Meguji Ams has contributed to this report.
