August 10, 2022
Spurred in part by the brand’s strength across cable television, the Fox Nation subscription streaming video service saw an 80% increase in paid subscribers for the fiscal year ended June 30, based in part on strong conversion rates from free trial subscribers.
Parent Fox Corporation has not disclosed Nation subscriber numbers since launching the politically themed SVOD in 2018. A recent Kagan research report on cable news SVOD subscribers found that less than 5% of the 2,500 survey respondents subscribed to the platform.
Speaking on the Fox Corporation Aug. 10 fiscal call, CEO Lachlan Murdoch suggested the Fox Nation viewership gains reflected Fox News’ ongoing domination of the cable news market.
“Fox News was the only cable news network to post viewership gains in the fiscal year in the key 25-54-year-old demographic,” Murdoch said, adding that the network saw 30%+ viewership hikes among Latino and Asian demographics.
Separately, Murdoch said that Tubi, the Fox-owned ad-supported VOD and free ad-supported streaming television platform, realized a 45% growth in revenue over the past 12 months of the fiscal year, driven by a nearly 40% jump in monthly average users.
“Both metrics came in better than planned, reinforcing our decision to invest in this strategic asset,” Murdoch said. Fox acquired Tubi in 2020 for $440 million.
The executive said that Tubi users increased 34% in the fourth quarter, underscored by the addition of 25 linear channels on the platform, expanded the VOD library to more than 45,000 titles, and premiered 13 Tubi original programs.
“We will continue to invest judiciously in Tubi with our sights set on achieving $1 billion in revenue run rates in the next couple of years,” Murdoch said.
For the fiscal year, Fox reported total revenue of $13.97 billion, an 8% increase from the $12.91 billion reported in the prior year. Advertising revenue increased 9%, primarily due to higher pricing at Fox Sports and Fox News Media, continued growth at Tubi and the return of a full schedule of live events at Fox Sports.
These advertising gains were partially offset by lower political advertising revenue. Other revenue increased 15%, primarily due to higher sports sublicensing revenue and Fox Nation subscription revenue, in addition to the impact of the consolidation of entertainment production companies at the television business segment, which include MarVista Entertainment, TMZ and Studio Ramsay Global.