The forthcoming sports streaming venture backed by Disney, Fox Corp. and Warner Bros. Discovery will reach 5 million subscribers in its first five years, according to a projection shared Monday by Fox CEO Lachlan Murdoch. Speaking at a conference hosted by Morgan Stanley, Murdoch cited the forecast in responding to questions about whether the new venture would threaten the company’s existing pay-TV business.
The man trying to derail a Fox Corp. TV station license renewal claims that alleged false reporting by corporate sibling Fox News Channel about the 2020 presidential election can be taken into account by federal regulators. Former Fox executive Preston Padden, in a filing Wednesday with the FCC, said the agency in considering the character of a TV station licensee seeking renewal is allowed to evaluate the licensee’s conduct elsewhere.
He will oversee the company’s Ad Sales efforts across the company’s portfolio of brands and platforms, including Fox Entertainment, Tubi, Fox Sports, FS1, FS2, Fox Deportes, and Fox News Media, which includes Fox News Channel and Fox Business Network.
With concerns over Dominion Voting Systems and Smartmatic lawsuits still heavily lingering, Fox Corp. shareholders are voting on a short slate of issues Friday afternoon: electing seven directors, ratifying the selection of Ernst & Young LLP as the company’s independent registered public accounting firm for the fiscal year ending June 30, 2024; and executive compensation.
that include connecting executive compensation to future costly legal exposure.
Sports, FAST Channels Are Bright Spots For Broadcasters In A Down Quarter
Until 2024’s political windfall machine can kick in, TV groups have been leaning into revenue opportunities from sports rights and streaming prospects like FAST channels, where the breakeven mark is getting closer.
He will lead all legal, compliance, and regulatory matters as well as oversee government affairs.
Tubi And Sports Shine For Fox Corp. Earnings
CEO Lachlan Murdoch: “Tubi will be the way our audiences primarily engage with entertainment in the future. It’s a core part of our business.” Another positive: Affiliate fee revenues increased 2% in the last quarter, driven by 8% growth at the company’s television segment, which includes its TV stations.
Fox Corp. Edges Wall Street Quarterly Estimates, But Feels The Squeeze Without Political Ad Influx
Fox Corp. nipped Wall Street estimates for its fiscal first quarter, but earnings fell from a year ago partly due to a comparative lack of political ad spending. Revenue came in at $3.21 billion, up a smidgen from $3.19 billion in the prior-year quarter. Adjusted earnings per share were $1.09, down from $1.21 a year ago. Both the top and bottom line slightly exceeded Wall Street analysts’ consensus forecasts, but Fox shares slipped 2% in pre-market trading due to some less-than-upbeat aspects of the quarterly report.
As Rupert’s eldest son is set to rule a new empire, he could coast on the assets put in place by his father or evaluate the kingdom for a megadeal involving crown jewel Fox News.
Rupert Murdoch becomes chairman emeritus of the companies, effective in November.
Senior executives from Fox Corp. and Fox Television Stations will share insights into how they’ve been modernizing and securing the companies’ broadcast infrastructure during a session at TVNewsCheck’s Cybersecurity for Broadcasters Retreat, set for Oct. 26 at NAB Show New York.
Technology executives from Fox Corp., Hearst Television, CBC, Sony and Florical told a TVNewsCheck webinar last week that the lack of a “trigger point” and a shortage of personnel experts in managing IT infrastructures are among the factors slowing down the pace of the industry’s IP transition.
Regulators invited public comment on whether the U.S. broadcast license for Fox Corp.’s TV station in Philadelphia should be renewed after a grassroots organization asked that it be denied, saying Fox knowingly broadcast false news about the 2020 election.
Alfred Sikes is the latest figure to urge the commission to study whether Rupert and Lachlan Murdoch meet the character qualification to remain broadcast licensees.
Fox Corp. is parting ways with one of its key strategic and business leaders, Viet Dinh, a longtime consiglieri in the Murdoch empire. Dinh is leaving his post as chief legal and policy officer on Dec. 31 and will become a “special advisor” to the company, Fox said in a press release.
Fox Corp. Claims Top Upfront Performance
CEO Lachlan Murdoch: “In this year’s upfront we believe Fox led the market in both price and volume across our live sports and news offerings,” he said. And he said he’s optimistic about the current quarter. “While it is early in the quarter, underlying ad trends have shown signs of improvement over last quarter. We are seeing an uptick in scatter, driven largely by sports, and national news is solid,”
Fox Corp. Hits Quarterly Target Despite Advertising Dip
Fox Corp. revenue stayed flat in the quarter ending June 30 compared with the year-earlier period, but it matched Wall Street analysts’ consensus estimate as earnings beat expectations. Earnings came in at 74 cents a share in the quarter ending June 30, topping analysts’ target of 72 cents and rising from 55 cents in the year-ago period. The revenue figure stayed flat with the 2022 quarter. Affiliate fee revenue climbed 3% from a year ago, paced by a 9% upswing in the TV division.
Fox Corp. and Flutter Entertainment Plc plan to wind down their Fox Bet online wagering business starting on Aug. 1, according to people familiar with the plans. Flutter, parent of the competing betting service FanDuel, will keep the customer database and market-access agreements associated with the business, said the people, who asked not be identified since the decision hasn’t been announced. An announcement could come today.
His promotion follows the departure of Mike Biard, who is moving to be Nexstar’s president-COO.
Executives from Fox Corp., Hearst Television, CBC, Sony Electronics and Florical Systems will question the viability of continuing to invest in on-prem hardware given the cloud’s capacious flexibility in a TVNewsCheck Working Lunch Webinar on Aug. 17 at 1 p.m. ET. Register here.
The Murdochs Are Awful. But Don’t Punish Fox O&Os For It.
Rupert and Lachlan Murdoch undermined trust in American democracy with their reckless propagation of Trump’s Big Lie, but Fox’s O&Os shouldn’t be in the FCC’s crosshairs to pay for it, as a watchdog group would have it.
Wells Fargo analyst Steven Cahall downgraded Fox Corp. stock to “underweight” from “equal weight” as lower ratings at Fox News Channel and cord-cutting threaten to depress earnings. Cahall lowered his target price for Fox stock to $31 a share from his previous $35 a share target and Friday’s close of $31.92. According to Cahall, FNC accounts for about 80% of Fox Corp.’s earnings.
The group asks the FCC to deny the station’s license renewal application, alleging that senior management of Fox Corp. “manipulated its audience by knowingly broadcasting false news about the 2020 election. Its intentional and chronic news distortion further divided the country, sowing discord that was a contributing factor to the attack on our nation’s Capitol on Jan. 6, 2021.”
Oregon’s Attorney General Ellen Rosenblum is investigating Fox Corp.’s board of directors for “breach of fiduciary duty” after Fox News repeatedly broadcast election lies in the wake of the 2020 election. That resulted in a historic $787 million defamation settlement with Dominion Voting Systems.
Oregon’s attorney general announced that she is investigating Fox Corp.’s board of directors for “breach of fiduciary duty” after Fox News repeatedly broadcast election lies in the wake of the 2020 election. That resulted in a historic $787 million defamation settlement with Dominion Voting Systems. “Treasurer Read and I believe that Fox’s board of directors breached its fiduciary duties by allowing Fox News to broadcast false claims that Dominion and Smartmatic rigged the 2020 presidential election,” said Attorney General Ellen Rosenblum in a statement. “We hope to hold the board accountable and protect the long-term value of Oregon’s investment in Fox Corp.
Marianne Gambelli, president of ad sales for Fox Corp., says in an interview that she believes the company will stand apart in the TV industry’s looming “upfront” sales session by not pressing potential sponsors to snap up commercial inventory in multiple venues.
Fox Corp. Revenues Up In Quarter Hit By Legal Settlement
Sports saved the company’s fiscal 3Q. “Our advertising revenues increased 43%, led by the Super Bowl,” said CFO Steve Tomsic. “Television advertising revenue led this growth with a 61% increase, fueled by Super Bowl 57, which generated over $650 million in gross revenue. We also benefitted from two additional NFL Playoff games — one divisional and one wildcard — partially offset by the timing of one less regular season game.”
Fox Swings To $50 Million Quarterly Loss On Dominion Settlement
Fox Corp. today reported a $50 million loss last quarter from a $290 million profit the year before mostly due to the cost of a legal settlement with Dominion Voting Services. Sales jumped 18% last quarter to $4.08 billion advertising revenues rose 43%, reflecting the impact of Super Bowl LVII, a higher volume of NFL games and continued growth at Tubi. Affiliate fee revenues increased 3% with 9%. Other revenue was essentially unchanged from the prior year quarter.
Fox Corp. is one partner using the audio giant’s “broadcast-to-podcast” technology to turn existing Fox radio shows into on-demand podcasts.