Murdoch: FOX News Is The Fifth Broadcast Network

Lachlan Murdoch, the Chief Executive Officer of Fox Corporation, Monday asserted during an interview that Fox News, the company's flagship cable news outlet, has achieved such unparalleled dominance in its ratings that it should now be regarded as a "fifth broadcast network" alongside the traditional quartet of ABC, CBS, Fox, and NBC. Murdoch pointed to the channel's commanding market share, which hovers around 65% among its cable news competitors, as evidence of its newfound status.

The interview took place on Monday at Fox Corporation's Technology, Media & Telecom Conference, where Murdoch sat down with Ben Swinburne, Managing Director and Head of U.S. Media Research for Morgan Stanley. During the conversation, Murdoch appeared to revel in Fox News' recent triumphs, taking a well-deserved victory lap in light of the outlet's absolute ratings supremacy over the past year.

Lachlan Murdoch

Swinburne acknowledged Fox News' critical role within its parent company, stating that it is "obviously the biggest driver of cash flows" for Fox Corporation, which falls under Murdoch's purview. He then posed a question about the sustainability of the outlet's growth in distribution revenues, given the well-documented challenges facing traditional television. "How is it sustainable given all of the headwinds we know about to traditional TV, that you can keep growing distribution revenues for that business over time?" Swinburne inquired.

Murdoch responded by emphasizing the key ingredients behind Fox News' success: "Look, it comes down to great content, great journalism and a great brand ultimately. If you look at the Fox News viewer, they're incredibly loyal. They're passionate about the service. They really see it as not just as a news service but as a network for them." He went on to highlight the impressive subscriber base of Fox Nation, the company's streaming service, which boasts between 2 and 2.5 million users—a testament to the lifestyle aspect that resonates with Fox News' most devoted fans.

Continuing his argument, Murdoch stressed a fundamental shift in how the company perceives its cable news outlet: "It's important to note that we don't see Fox News anymore as just a news service. We see it as one of the top five broadcast networks in the United States, even though we don't have the same distribution that broadcast has." With this bold statement, he effectively proposed that Fox News deserves to be mentioned in the same breath as the iconic broadcast networks, despite its origins in cable television. Murdoch argued that the lines between broadcasting and cable delivery have become increasingly blurred due to the rise of cord-cutting and streaming services.

To bolster his case, Murdoch pointed to recent performance metrics: "In January and February, we were the number two broadcast network, right? Equivalent to the number two broadcast network at Fox News. Despite having a much smaller universe in cable. In January, we were only beaten by NBC, and in February we were only beaten by CBS. And so that's how we view it. And that's how we're able to drive, frankly, the affiliate revenue growth that we've achieved." These figures underscore Fox News' ability to compete with, and even surpass, some of the traditional broadcast giants, despite operating within the more limited reach of cable television.

Later in the interview, Murdoch elaborated on why he takes such pride in these accomplishments, noting that approximately two out of every three cable news viewers are tuning in to Fox News. "It's very important and it's what we think about all the time and we work very hard on. It's also important because if you think about the strength of Fox News in a traditional universe, it's 65% share," he explained. "You know, it's a lot of work to get the 70% share, you're never going to get to 100 – probably not – and so you have to look in new markets and also in this last election what was obvious for everyone who was watching was the emergence of non-linear and nontraditional platforms and their importance in this election."

Murdoch's remarks suggest a strategic vision for Fox News that extends beyond its cable news roots, positioning it as a multifaceted media powerhouse capable of rivaling the reach and influence of traditional broadcast networks. As the media landscape continues to evolve, with non-linear and nontraditional platforms gaining prominence, Fox News appears poised to leverage its loyal viewer base and strong brand identity to maintain its dominance and expand into new arenas.