Fox News Media is projecting half a billion dollars in revenue this fiscal year for its non-cable TV businesses, Trey Gargano, executive vice president of ad sales said in a rare interview about the company’s financials.
Why it matters: Fox has been insulated from some of the viewership challenges plaguing its competitors in the streaming era, but its efforts to diversify away from cable will make its brand even less vulnerable to cord-cutting long term.
- “We see on digital that our audience is an average of 30%-50% younger than those watching linear television in general,” Gargano said.
- The projection includes revenue from all of its products outside of linear television, including podcasts, books, streaming and digital channels.
- Gargano noted these businesses have collectively seen double-digit growth every year since 2020.
Zoom in: Fox News Media’s push to diversify started in 2018 when its newly named CEO Suzanne Scott began to introduce new digital lifestyle products across platforms. Many of those products focused on digital video and streaming, specifically.
- In 2018, the company launched Fox Nation, a subscription streaming service focused mostly on lifestyle and entertainment content. CEO Lachlan Murdoch recently said the service has 2 million to 2.5 million subscribers.
- On Tuesday, Fox Nation announced its first-ever streaming bundle with SiriusXM, a testament to the appeal of its audience to other subscription media companies.
- It introduced Fox News International, a live streaming service for its Fox News and Fox Business linear networks for overseas users in 2020, and Fox Weather, an ad-supported streaming service, in 2021.
Between the lines: The company has also added dozens of audio products, including new podcasts from its biggest on-air personalities, that are available free with ads, a spokesperson confirmed.
- In 2020, it debuted its imprint, Fox News Books, which has sold over 3 million copies across 14 titles, mostly authored by Fox talent.
Follow the money: The growth of its cross-platform products has allowed Fox News Media to develop a more integrated ad sales strategy, which has helped lure over 200 new advertisers to its platform since the election, Gargano said.
- Conversations with advertisers have shifted to be about the Fox News Media platform as a whole, “and in most instances, ways advertisers can do more than just run spots,” he said.
- One area where he sees growing advertising opportunity is social media, which has traditionally been tougher for publishers to monetize. “We’re looking at ways to sort of authentically bring in advertisers to this huge and growing relationship that we have with consumers on social media.”
Reality check: A huge driver of Fox News Media’s cross-platform strategy has been building new digital lifestyle products for its linear talent to reach younger consumers.
- The vast majority of Fox News’ cable stars host a podcast or Fox Nation show, and/or have authored a book via Fox News’ imprint.
- For example, “Fox & Friends First” co-host Carley Shimkus published “Cooking with Friends” in 2023 through Fox News Books. Steve Doocy and Ainsley Earhardt host bible study and cooking programs, respectively, on Fox Nation.
Zoom out: While Fox News’ subscription streaming and book businesses present significant growth opportunities, Gargano said the majority of its digital business revenues are coming from advertising.
- The growth of premium video on its website, combined with Fox Weather’s ad-supported platform, have created opportunities for Fox News to begin selling connected TV ads to marketers looking to extend their campaigns beyond linear television, Gargano said.
- Other digital properties also provide unique marketing opportunities, he noted. While Fox Nation doesn’t include ads, some of its editorial franchises have helped create new opportunities for sponsors. The Fox Nation Patriot Awards, for example, includes sponsorship integrations on-site at the event.
The big picture: Every cable news company is scrambling to diversify its business away from linear television, but few are as far along as Fox News Media.
- CNN, under its new CEO Mark Thompson, plans to introduce a new cross-platform streaming service this year as part of a broader effort to introduce more subscription and lifestyle products.
- MSNBC has launched ticketed events for hyper-fans around the country, but it hasn’t yet launched its own standalone streaming service.
- CNBC debuted a standalone streaming service, CNBC+, earlier this year.
What to watch: To date, Fox News Media hasn’t focused as much on commerce as a significant revenue driver, but the company is looking to do more there, Gargano said.
- For now, most of its commerce opportunities are based around product integration within its flagship cable news morning program, “Fox & Friends.
Axios