Fox Corporation (FOXA) is making the move into streaming with the launch of Fox One, which is a $20-a-month service that brings together Fox News, NFL games, and its cable networks. The move marks a major shift for the company as it targets younger audiences who are increasingly turning to digital platforms for news and entertainment.
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Fox Corp, led by Rupert Murdoch, is a global media company that owns Fox News, Fox Sports, Fox Entertainment, and Fox TV Stations.
More Details About Fox One
Launching on Thursday, the Fox One app will combine the company’s live news, sports, and entertainment content in one place. Starting in October, subscribers will also have the option to bundle Fox One with ESPN’s (DIS) upcoming streaming app.
Meanwhile, the service costs $20 per month, or $39.99 per month with the ESPN bundle. For an added fee, subscribers can also include Fox Nation, Fox’s existing service featuring original shows from Fox News hosts, docuseries, and other exclusive programs.
Fox Bets on Streaming
After years of holding back on streaming, Fox is finally jumping in with Fox One. The company is late to the game compared to rivals like Disney, Warner Bros. (WBD), Comcast’s (CMCSA) NBCUniversal, and Paramount (PSKY), which launched their services about six years ago.
In that time, Fox has leaned heavily on its U.S. cable business, even as the industry continues to shrink. However, cable viewership is aging too, with Nielsen data showing the average Fox News viewer is 69 years old.
At the same time, Fox has seen a surge in younger audiences through platforms like YouTube. Looking ahead, CEO Lachlan Murdoch said the company expects Fox One to draw a few million subscribers over the next few years. However, streaming chief Pete Distad emphasized that the real focus isn’t just on sign-ups, but on building a profitable service by leveraging Fox’s existing content library.
Is FOXA a Good Stock to Buy?
On TipRanks, FOXA stock has a consensus Moderate Buy rating based on seven Buys and six Holds assigned in the last three months. The average Fox Corporation stock price target of $61.50 implies an upside of 4.3% from current levels.
Year-to-date, FOXA stock has gained over 21%.
