Fox Finding Footing With Streaming
Fox may have sold its studio assets to Disney, but it is not backing out of the TV business by any stretch. The company is finding success in streaming from Tubi to Fox Nation as the much more nimble company positions itself for a post cable world.
No, the cable TV industry is hardly done, but having revenue sources based out of streaming allows the company to build something where it seems that the market is headed. And while Fox News is always at the top echelon of cable ratings it appears that the decision to purchase Tubi and Launch other branded streaming options like the paid app Fox Nation and the free Fox Weather are going to pay off.
The company announced that it plans to spend between 200 and 300 million dollars on streaming per year going forward. So far the investments seem to be paying off handsomely. Tubi, which was acquired for 440 million dollars two years ago is set to make 700 million this year. And this is with the basic formula of older favorites with a mix of Fox reality and competition shows sprinkled in along with a grid-based FAST and a collection of on-demand content from multiple studios. And while it does not officially release subscriber numbers, the company says that Fox Nation’s subscriber count sits at single-digit millions. So in other words between 1-10 million. That is not bad for a service that is simply an outgrowth/supplement to the heavily watched cable news channel.
Ad-supported streaming looks like it is going to become more and more the norm as industry leaders realize that customers will watch ads and also do not want to be nickeled and dimed for every show they enjoy. Fox through either prescience or necessity got on that train early.