Prime Highlights:
Fox plans to launch a direct-to-consumer subscription streaming service by the end of 2025, focusing on its sports and news content.
The service will be built using Fox’s existing content, without incurring significant additional rights costs, making development relatively low-cost compared to competitors.
Key Background:
Fox Corporation has revealed its intentions to launch a subscription-based streaming service by the end of 2025. This move marks a significant step as the company, traditionally known for its sports and news content, enters the direct-to-consumer streaming market. Fox’s CEO, Lachlan Murdoch, confirmed the development during the company’s quarterly earnings call, though details about the service remain scarce. The company is currently in the process of designing the app and plans to disclose further information in the coming months.
The upcoming service is expected to offer a blend of Fox’s sports and news programming, but Murdoch emphasized that it is not intended to disrupt the company’s position within the traditional TV bundle. Instead, Fox aims to reach consumers who have already moved away from conventional cable TV. Murdoch noted that while Fox continues to support the traditional cable bundle, the company recognizes the growing demand for streaming options and intends to serve that audience.
Fox’s decision to launch a subscription service comes after its collaboration with Warner Bros. Discovery and Disney to create a sports-focused streaming platform called Venu was scrapped earlier this year. The venture, which aimed to pool the partners’ sports content into a single service, faced delays and legal challenges before being abandoned. Fox, the sole partner without a direct streaming alternative for its sports content, now moves forward with its own offering.
Despite the late entry into the subscription streaming space, Fox’s streaming service is expected to have a low cost of development, as the company will leverage its existing content without significant additional rights costs. Murdoch expressed that the company’s subscriber goals would be modest, and the service would be priced accordingly. Fox remains focused on maintaining a competitive edge through its strong portfolio of live sports and news programming, which continues to be highly valued in the traditional TV landscape.