Fox One’s Launch Plans
Fox Corp. has officially announced the name and timing for its upcoming direct-to-consumer streaming service, Fox One. The company plans to launch the service ahead of the National Football League (NFL) season later this year. Fox CEO Lachlan Murdoch revealed the name and launch timing during a quarterly earnings call on Monday, though the exact launch date and pricing details will be disclosed in the coming months.
Pricing Strategy for Fox One
Although specific pricing details were not shared, Murdoch stated that the cost of the new streaming service would align with “wholesale pricing,” meaning it would be similar to the cost of channels for traditional pay TV distributors. Fox will also offer the service to cable TV subscribers at no additional cost, further incentivizing its existing customer base. Murdoch emphasized that the pricing would not be discounted, as the company aims to avoid the loss of traditional cable subscribers to Fox One.
Fox’s Strategy: Bundling and Partnerships
Fox is also focusing on offering Fox One as part of bundles with other distributors and services. Murdoch revealed that other streaming platforms had already approached Fox regarding potential bundling opportunities. The company plans to move forward with several of these relationships, strengthening its position in the competitive streaming market.
Fox Corp. Financials: A Strong Quarter
Fox reported a 27% increase in fiscal third-quarter revenue, reaching $4.37 billion, lifted by the success of Super Bowl 59. The game, which attracted approximately 128 million viewers, aired on both the Fox broadcast network and Tubi, Fox’s free, ad-supported streaming service. Ads for the Super Bowl commanded prices as high as $8 million per spot, contributing to a 65% surge in advertising revenue for Fox during the quarter.
Fox’s Streaming Strategy
While Fox has been more cautious in its approach to streaming compared to its competitors, it has already launched services like Fox Nation and Tubi. However, it has not yet made all of its content available via a direct-to-consumer streaming offering. The upcoming launch of Fox One marks a significant step in Fox’s strategy to expand its digital presence and compete more effectively with rivals such as Warner Bros. Discovery and Disney.
Fox’s Streaming Competitors
In February, Murdoch had hinted at the company’s streaming service plans, which follow the abandonment of a joint venture with Warner Bros. Discovery and Disney to create Venu, a sports-focused streaming app. While Fox was the only one of its partners without a subscription-based streaming service in the market, competitors like Warner Bros. Discovery and Disney already offer live sports content via their respective services, Max and ESPN+.