Media Giant Announces NEW Streaming App, But Prays Consumers Won’t Use It Too Much–What?!

Stop me if you’ve heard this one before: a legacy media giant, years late to the streaming wars, finally decides it’s time to build an app. Not because they want to. Not because they have a killer product. But because if they wait any longer, their shareholders are going to show up at the earnings call with pitchforks. 

(Source: Giphy) 

That’s Fox right now as they’re officially rolling out their new direct-to-consumer service: Fox One. Which is an actual streaming platform, set to launch before NFL season where 120 million Americans voluntarily watch commercials and pretend to care about Taylor Swift’s boyfriend.

In short, Fox One will include everything. News, sports, and entertainment (whatever’s left of it that is). It’s the full Fox buffet, now available in app form. This is the same company that’s been watching the streaming industry implode in real time and still thought, “Yeah, now feels like the right moment to jump in.” Lachlan Muroch, announced this gem during Fox’s Q3 earnings call. The company pulled in $4.37 billion last quarter, a 27% jump YOY, thanks almost entirely to Super Bowl 59. And they’re using that momentum to finally join the 2019-era streaming party. 

(Source: CNBC) 

But, but, but… here’s where it gets interesting: Lachlan said, with a straight face, that Fox One would be priced at a “healthy” rate. Translation: not cheap… and would mirror what pay-TV distributors already shell out. So if you’re expecting a $5.99 Hulu-tier deal, go ahead and unsubscribe now. But wait, there’s more… He also said, and I swear this is real, that it would be “a failure” if Fox One actually attracted too many subscribers. Because God forbid they piss off their cable partners, who are apparently still writing fat checks to keep the bundle alive like it’s on a ventilator. 

“Sooo, Fox is launching a streaming app, but they don’t want it to succeed too much?” Precisely. Apparently, Fox wants to be in the streaming game, but only in a way that doesn’t threaten the dying ecosystem they still depend on. Sounds legit. 

(Source: Vulture) 

Additionally, Lachlan also said Fox is already talking to other streamers about bundling. Because if there’s anything consumers love more than $14.99 standalone apps, it’s $79.99 bundles that look suspiciously like the cable plans they just ditched. To be fair, they’re giving it away to cable subscribers for free, just so no one gets smart and cuts the cord. But again, that’s only because they don’t want to create a streaming service without triggering a mass cable exodus. 

Some say this is a growth/tech play… I call it plugging a hole in a boat, praying it holds through Q4. But hey, they’ve got football. And if you’ve got football, you can get away with just about anything… including launching a streaming app you hope doesn’t hit too hard. Welcome to Fox One: the streaming service that exists, but only if you promise not to cancel cable, LOL.

(Source: Giphy) 

As always, do what you will with this information and place your bets accordingly (Fox is up 3.82% on the day). Until next time, friends… 

P.S. Oh, I’m sorry, I didn’t know you liked getting rekt. Let’s face it, retail investors get the short end of the stick all day everyday. It’s the smart money’s world, and we are just living in it–only useful when it comes to liquidity purposes in the market. Meaning, if you’re as pissed off as I was when I found out Milli Vanilli was lip syncing the whole time, then it’s time to go from investing blind, to investing smart. Luckily for you, the key is right here as a Stocks.News premium member. Click here to see exactly how our premium members are printing while others quake in the face of today’s market chaos. 

Stocks.News does not hold positions in companies mentioned in the article.