Fox Corp. may have largely turned its back on the subscription streaming video-on-demand market, but it hasn’t turned a cold shoulder to direct-to-consumer digital media distribution.
The company currently operates several digital platforms including the free ad-supported Tubi entertainment streaming platform, along with ad-supported Fox Weather, subscription-based Fox Nation and Fox News International.
With pay-TV operators continuing to hemorrhage video subscribers, the media company is eyeing distributing its legacy Fox News and Fox Sports programming brands via over-the-top channels, according to CEO Lachlan Murdoch.
“They will be part of any scaled [digital] platform [going forward] regardless of what technology is used to deliver that content and that platform,” Murdoch said on the May 9 fiscal call. “We see DTC in the future. It will come eventually. As we’ve said before, ‘we’re ready to go,’ we have the technology in place to go DTC when we deem that necessary or prudent.”
At the same time, the executive reiterated that Fox continues to drive “industry leading” affiliate pricing across the multichannel video programing distribution ecosystem.
Affiliate fee and advertising revenue in the quarter topped $1.85 billion and $1.87 billion, respectively, up from $1.79 billion and $1.3 billion in the previous-year period.
“Our pricing is not theoretical, it has been set regarding a third of our programming in this fiscal year,” Murdoch said. “We’re very pleased with where we sit and where we’ve established a market price for our brands.”