(Reuters) -Fox Corp said its new subscription-based streaming service will be called “Fox One” and is set to launch before the fall American football season, as the media company seeks to reach audiences beyond its mainstay cable television business.
Unveiling more details on Monday about the service first announced in February, Fox said pricing for Fox One would align with its wholesale rates and would not be offered at a discount.
Shares of the company rose more than 4% in premarket trading as it also reported quarterly profit and revenue exceeding Wall Street expectations, thanks to a surge in advertising revenue driven by its broadcast of “Super Bowl LIX” in February.
The Murdoch family-controlled company has largely sat out the streaming race between legacy media and firms such as Netflix, betting instead on ad revenue from its free Tubi streaming service.
Fox will partner with other distributors and services to offer Fox One, CEO Lachlan Murdoch told analysts, hinting at potentially bundling deals with other streamers — a strategy that has gained traction as companies look to curb subscriber churn.
“The pricing will be healthy,” Murdoch said, adding Fox does not want to lose cable subscribers to the streaming service.
In the March quarter, more advertisers turned to the owner of FOX News, FOX Sports and Tubi to capture its growing viewership. An estimated 127.7 million viewers tuned in for the Super Bowl National Football League championship broadcast by Fox, the largest audience in TV history for a single-network telecast, according to Nielsen. Advertisers paid as much as $8 million for 30 seconds of commercial time during the game.
Revenue rose 27% to $4.37 billion in the third quarter, beating an estimate of $4.18 billion, according to data compiled by LSEG. Advertising revenue increased 65% to $2.04 billion, beating an estimate of $1.67 billion.
Adjusted profit per share of $1.10 beat an estimate of $0.91.
(Reporting by Jaspreet Singh in Bengaluru; Editing by Pooja Desai)
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