Fox Corporation is making its long-awaited move into the direct-to-consumer streaming business. The company announced on Tuesday that it plans to launch a new subscription-based streaming service by the end of the year, expanding its reach beyond traditional cable.
A Streaming Expansion Without Disrupting the Bundle
Unlike other media companies pivoting heavily into streaming, Fox is not looking to disrupt its presence in the traditional TV bundle. CEO Lachlan Murdoch emphasized during the company’s earnings call that the service is designed to complement, rather than replace, its existing cable offerings.
“We’re huge supporters of the traditional cable bundle, and we always will be. But having said that, we do want to reach consumers wherever they are, and there’s a large population, obviously, that are now outside of the traditional cable bundle,” Murdoch said.
Sports and News Take Center Stage
The new streaming service will feature Fox’s premium sports and news content, marking a strategic expansion of its core offerings. This move follows Fox’s long-standing focus on live programming, which remains one of the strongest drivers of cable viewership.
Fox has already dipped its toes into streaming with Fox Nation, a subscription service offering exclusive Fox News content, and Tubi, a free ad-supported platform. Additionally, Super Bowl LVIII will be streamed on Tubi for the first time, signaling Fox’s increased digital ambitions.
A Response to Changing Market Dynamics
Fox’s shift towards subscription-based streaming comes after the collapse of Venu, a planned joint venture between Fox, Warner Bros. Discovery, and Disney that aimed to bundle their sports content into a single streaming platform. Legal challenges forced the three companies to abandon the initiative.
Unlike its former partners, Fox lacked a dedicated sports streaming alternative—while Warner Bros. Discovery integrates live sports into Max, and Disney has ESPN+ and its upcoming direct-to-consumer ESPN “Flagship” service, set to launch in August.
Murdoch acknowledged the end of Venu as the company’s “only disappointment in sports.”
Low-Cost Strategy to Reach Cord-Cutters
Fox intends to take a measured approach with its new service. Murdoch stated that subscriber expectations will be modest, and the company plans to price the platform accordingly to attract cord-cutters and cord-nevers without cannibalizing its existing cable audience.
Unlike streaming giants spending billions on exclusive programming and sports rights, Fox plans to keep costs low. “We don’t expect to have any exclusive rights costs or additional incremental rights costs,” Murdoch said, explaining that the service will primarily package existing content.
The Rise of Skinny Bundles
Fox also sees promise in the resurgence of skinny bundles—smaller, sports and news-focused TV packages that cater to audiences avoiding full-scale cable subscriptions.
“We’re very pleased with this trend of the bundle. It’s financially, economically positive for us,” Murdoch said. He hopes that the smaller, targeted bundles will appeal to viewers who have cut the cord or never subscribed to cable in the first place.
Conclusion
Fox’s entry into the subscription streaming market reflects its commitment to adapting without abandoning traditional television. By leveraging its core strengths in sports and news, the company is positioning itself to reach streaming audiences while maintaining its dominance in cable. With a cost-conscious approach and an emphasis on repackaging existing content, Fox aims to find a niche in the increasingly competitive streaming landscape.
