November 3, 2021
Fox Corp.’s cold shoulder to subscription video-on-demand continues to pay dividends on the bottom line. The media company Nov. 3 reported that first-quarter fiscal-year 2022 (ended Sept. 30) ad revenue increased 17% to $1.13 billion, from $969 million in the previous-year period. Total revenue increased 12% to $3.05 billion, from $2.72 billion a year earlier.
CEO Lachlan Murdoch attributed the increase in part to the company’s focus on AVOD and free ad-supported streaming TV and the return of a full schedule of live events at Fox Sports and more scripted programming at Fox Entertainment compared with the postponements and cancellations in the prior year quarter as a result of the pandemic.
Fox acquired Tubi in April 2020 for $440 million, quickly bolstering the AVOD platform with catalog, primetime network shows, i.e. “The Masked Singer,” and original programming.
“We have made a strong start to the 2022 fiscal year with broad-based operating momentum led by the return of a full slate of live events at Fox Sports and exceptional progress at Tubi,” Murdoch said in a statement.
Murdoch said that as TV viewers migrate back to live news, sports and increase their streaming, the trends underscore the strategy and priorities that have defined Fox since its asset (20th Century Fox Studios) sale to Disney.
“We remain focused on bolstering our core brands and leveraging the unique assets that distinguish us to further propel growth and drive value for our shareholders,” he said.