By Dean Seal and Joe Flint
Fox Corp. said it would launch its direct-to-consumer streaming service that will include Fox News, Fox Sports and other entertainment offerings before the start of the NFL season in September.
The new platform will be called Fox One, Fox Chief Executive Lachlan Murdoch said on a Monday investor call to discuss the company's latest quarterly results, which beat analyst forecasts.
Shares rose 4.8% in morning trading.
Murdoch didn't disclose pricing details for the new product, but said it won't undercut deals Fox has with cable and satellite television distributors.
"We do not want to lose a traditional cable subscriber to Fox One," he said Monday. The service will target the "cordless community," he said, referring to people who don't currently subscribe to a pay-TV distributor.
Murdoch said Fox would look to form partnerships with other streamers and distributors to market and sell the service, and has already been approached by several streamers. Such streaming bundles, like one from Disney and Warner Bros. Discovery offering Disney+, Max and Hulu, have been popular with consumers.
Fox One isn't expected to have original content.
Fox and The Wall Street Journal's parent company, News Corp, share common ownership.
Fox Corp. posted a fiscal third-quarter profit of $346 million, or 75 cents a share, for the first three months of the year. That is compared with $666 million, or $1.40 a share, in the same quarter a year earlier, a decline caused by higher expenses.
Stripping out one-time items, adjusted earnings were $1.10 a share. Analysts polled by FactSet had been expecting 92 cents a share.
Revenue rose 27% to $4.37 billion, ahead of analyst estimates for $4.19 billion, according to FactSet.
Fox's cable-network business, which includes Fox Sports 1, Fox Business and Fox News, logged a 11% revenue gain driven by higher prices and more digital ad revenue. Affiliate fees got a 3% revenue boost from higher prices that offset declining subscribers.
The company's television segment saw a 40% jump in revenue from Super Bowl LIX, as well as digital growth led by its Tubi streaming service.
Operating costs surged 45% to $2.97 billion, primarily due to higher sports-programming rights amortization and production costs from its broadcast of the Super Bowl. Higher digital content and marketing costs contributed as well. Overhead costs were up 8% at $551 million.
Write to Dean Seal at dean.seal@wsj.com and Joe Flint at Joe.Flint@wsj.com
(END) Dow Jones Newswires
May 12, 2025 10:41 ET (14:41 GMT)
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