Increasing emphasis on digital products
Additionally, in April 2023, Fox Corporation announced the formation of new division Tubi Media Group, including the company’s standalone digital brands and businesses, such as the AVOD streaming service Tubi, fin-tech company Credible, and web3 company Blockchain Creative Lab. In 2020, Fox acquired Tubi for 440 million U.S. dollars, and since then it has reportedly more than doubled its number of monthly active users, reflecting the growing importance of the digital streaming market for the broadcaster.The television segment is Fox’s largest business segment, with the company generating over 7.6 billion U.S. dollars in revenue in 2022 with the production and distribution of programs through broadcast networks and stations, as well as streaming platform Tubi. In comparison, the cable network division, including the production and licensing of cable news content, reportedly made over six billion dollars that year.
Falling TV ratings
Fox Corporation is not only known for TV news and its streaming services, but also for sports TV. According to the company, the brand Fox Sports reaches over 100 million consumers on a weekend alone and can be watched on several sports-related TV networks, stations, and digital devices. Fox Sports airs one of the most watched sporting events, with the NFC championship between the 49ers and the Rams reaching the second highest U.S. viewership rating among sporting events in 2022. Furthermore, Fox ranked third in terms of the global sports rights spending market share, after Comcast and Disney.What is more, Fox Entertainment is home to several famous scripted and unscripted TV shows, such as long-running animated sitcom series “The Simpsons,” as well as Fox’s most watched scripted TV show “9-1-1” and its spin-off “9-1-1: Lone Star.” However, due to a decline in TV viewership and tightened profit margins, several TV shows such as “Call Me Kat” have recently been canceled. Additionally, after Carlson’s surprising exit, TV ratings of the debut of the channel’s new 8 p.m. hour show suffered by around 21 percent compared with the average viewership for “Tucker Carlson Tonight.” Along with another upcoming trial, the company will need to demonstrate its strength to keep up with their competitors.
