Home » Consumer News »Online Video » Currently Reading:

Fox Plans to Substantially Hike Fees for Its Cable News and Broadcast Channels

Phillip Dampier May 9, 2019 Consumer News, Online Video 1 Comment

Your cable or streaming TV bill will increase once again as Fox executives told cheering investors this morning it would hike prices for carrying Fox TV stations and its suite of cable networks, including Fox News Channel, Fox Business, Fox Sports 1 and 2, and the Big Ten Network.

“We plan to meaningfully accelerate growth of both direct retransmission and non-[owned and operated] revenue and we believe the broadcast economics we receive are quite underpriced relative to the quality of the content we are providing,” said Fox chief operating officer John Nallen, speaking at a Fox Investor Day event.

Fox’s contracts with most cable, satellite, and streaming providers are coming up for renewal over the next three years, and it should not surprise providers to see substantially higher renewal pricing than ever before to continue carrying Fox’s networks. Fox plans to leverage the increasing amount of live sports on its broadcast network and the relative popularity of Fox News Channel to demand higher compensation. Fox was already collecting 29% more in retransmission consent-related revenue during the third quarter, but that percentage is expected to grow dramatically as new contracts are signed.

Fox News is already the most costly cable news network, and as other broadcast TV networks demand ever greater compensation from cable and satellite providers, Fox executives feel they are not asking as much as they could for their channels. That is an important consideration for Fox, which slimmed down dramatically after a sale of most of its assets to Disney. The ‘new’ Fox is made up of the Fox television network, 28 owned and operated Fox affiliated TV stations, cable news and business, and three sports channels. Nallen sees no need to expand the network lineup further.

“We are no longer lending the potency of our marketing brands toward any other initiative, brand or channel development,” Nallen said. “The purity of this sustained value opportunity from our Fox brands is critical as we are not tethered to any properties that are just getting harder to defend. This frees us up to capture the full value of all our brands across broadcast and cable.”

Nallen knows some cable operators have grown increasingly disenchanted with selling television service, and acknowledged some cable companies may balk at Fox’s new asking price, especially as cord cutting continues to accelerate. He told investors he is technology agnostic about who he sells Fox networks to, so it would come as no surprise if a streaming TV service eventually breaks into the top four Fox channel distributors. At the same time, as prices continue to rise, some traditional cable operators could eventually stop selling television service altogether.

1
Leave a Reply

avatar
1 Comment threads
0 Thread replies
0 Followers
 
Most reacted comment
Hottest comment thread
1 Comment authors
EJ Recent comment authors

This site uses Akismet to reduce spam. Learn how your comment data is processed.

  Subscribe  
newest oldest most voted
Notify of
EJ
Guest
EJ

It is almost comical that these companies don’t see the writing on the wall. Every raise in price causes more cord cutting. Everyone has a breaking point.

Search This Site:

Contributions:

Recent Comments:

  • Andrew: Good for them. Frontier thanks for holding everyone back all this time. /s...
  • Denis: Any thoughts on when we might get the upgrade in Rochester NY? It seems we’re always the last to get anything from Spectrum.......
  • Add Hunters: Would you like to have all your work done in one webite? You can do it all here...Visit us... A...
  • Marilyn: I cancelled my cable & phone service over the phone and just kept internet with Spectrum on 3/31, the guy tried everything to keep me, putting me ...
  • Cable TV Advisor: There are so many new options out there that offer assistance with getting affordable cable TV and satellite service. Some even offer no credit checks...
  • Robin Sesko: I negotiated a new price for 12 months. No contract was discussed. They told me to call back in 12 months to renegotiate again. When I went to canc...
  • Dylan: While in a way I feel sorry for Windstream, I don’t really. It’s dsl is slow and it’s a failing company relying on old customers for its support. If y...
  • Michael C Richards: Who is more likely to eventually make it to heaven, a low level Nazi or a Spectrum executive? My money's on the Nazi, his sins are in the past while ...
  • Damian Kumor: I used to live in Copley which is next to Fairlawn. I didn't even know they had that....
  • Tim: The same thing happened to me a few years ago when it was still TWC. Only then I think the fee was $25. I was able to call and have it taken off, I th...
  • YouForgotJohn_NotVandon: How many times do I need to mock your repetitive trolling comment?....sigh maybe your name is an acronym. Virtually Annoying Nag Droning On Neverendin...
  • NotKim: I'm not Kim, and I've never considered Granite Telecommunications. ...and I don't really care to either. Goooo AWAAAAAY!...

Your Account: