Fox chief executive Lachlan Murdoch has attributed a steep decline in Fox News viewership ahead of the US midterm elections to “viewer fatigue”, speaking on an analysts’ call on Monday (US time) to discuss financial results; the network’s quarterly revenue and adjusted earnings both beat Wall Street estimates.
Nielsen data cited in the report showed Fox News's prime-time audience fell 28 per cent to an average of 2 million viewers between September 28 and October 25. Rivals grew over the same period: Versant Media Group's MS NOW rose 15 per cent to 1.16 million viewers, while Skydance's CNN averaged 644,000, a 16 per cent increase.
The network is still the most-watched on cable and is expected to have more daily viewers on average than in any other midterm year going back to 1998. He pointed to Fox News’s strong viewership last year, driven by coverage of events including massive floods and the assassination of right-wing political activist Charlie Kirk, as a possible reason for the unfavourable comparison, and to similar trends during the 2006 midterms, which also fell during a president’s second term, George W. Bush’s. “Those viewers are not going to any other channel,” Murdoch said. “They’re not switching to CNN or MS NOW. They’re just fatigued and watching slightly less television overall.”
Some media observers attribute the decline to President Donald Trump’s slipping approval ratings, suggesting disengagement from Fox’s traditional Republican audience. The report notes that Democrats are currently favoured by both traditional polls and prediction market odds to win the House of Representatives and Senate, as voters weigh affordability, a controversial war in Iran and tariffs.
The results themselves were stronger than analysts expected. Fox reported fiscal first-quarter revenue of $US4.57 billion ($6.5 billion), against estimates of $US4.31 billion, and adjusted earnings before interest, taxes, depreciation and amortisation of $US1.64 billion, ahead of expectations of $US1.37 billion. The network recorded more than $US350 million in political advertising for the midterms: $US250 million on local stations, $US50 million on the Tubi streaming platform and $US50 million in national political ads. Overall advertising revenue jumped 47 per cent to $US2.08 billion, mainly on the back of broadcasting the men's FIFA World Cup over the summer.
Murdoch said Fox was interested in pursuing the US media rights for the next two World Cup tournaments. FIFA began the bidding process last month, and the rights are expected to fetch as much as $US4 billion. "We were obviously happy with the performance of the World Cup this past year and we'll be looking at the rights for 2030 and 2034 in a disciplined manner as we would with all sports rights," he said.
Analysis
Why This Matters
- Fox News is heading into the midterms with a smaller prime-time audience, even as its parent company's revenue and political advertising bookings beat expectations.
- Murdoch's explanation and the observers' alternative point in different directions: one says the audience has disengaged from television, the other says it is disengaging from Fox.
- The company is also positioning itself for the next round of World Cup US rights, which the report says could fetch as much as $US4 billion.
Background
Fox News is a US cable news network and the most-watched channel on cable, according to the report. Fox, led by chief executive Lachlan Murdoch, reports quarterly financial results to analysts, and audience figures are tracked by Nielsen. US midterm elections, in which the House of Representatives and Senate are contested, fall midway through a president's term, and the report compares the current ratings dip to the equivalent period in 2006, during George W. Bush's presidency.
Key Perspectives
Lachlan Murdoch: attributes the fall to "viewer fatigue", saying viewers are "not switching to CNN or MS NOW" but watching slightly less television overall, and points to tough comparisons with last year's coverage and to similar trends during the 2006 midterms.
Some media observers: attribute the decline to President Donald Trump's slipping approval ratings, suggesting disengagement from Fox's traditional Republican audience.
What to Watch
- The midterm results, with Democrats currently favoured by traditional polls and prediction market odds to win the House and Senate.
- Whether Fox News's prime-time audience recovers once the election is over, or whether the shift to other channels continues.
- FIFA's auction of US media rights for the 2030 and 2034 World Cup tournaments, which Fox says it will pursue.
Checked
12 claims in this story checked against 1 source: 11 supported.
Show each claim
- SupportedLachlan Murdoch attributed Fox News’s viewership decline to “viewer fatigue.”The Age - Latest News: “Lachlan Murdoch acknowledged a steep decline in viewership on Fox News ahead of midterm elections and attributed it to “viewer fatigue.””
- SupportedFox News’s prime-time audience fell 28 per cent to an average of 2 million viewers from September 28 to October 25.The Age - Latest News: “Fox News experienced a 28 per cent drop in its prime-time audience to an average of 2 million viewers from September 28 to October 25, according to Nielsen data.”
- SupportedMurdoch said viewers were watching less television overall.The Age - Latest News: “Fox chief Lachlan Murdoch says viewers are watching less television overall.”
- SupportedMurdoch spoke on an analysts’ call on Monday (US time) to discuss financial results.The Age - Latest News: “Murdoch said on a call with analysts on Monday (US time) to discuss financial results.”
- Partly supportedFox’s quarterly revenue and adjusted earnings both beat Wall Street estimates.The Age - Latest News: “Fox reported fiscal first-quarter revenue of $US4.57 billion ($6.5 billion), exceeding Wall Street’s estimates of $US4.31 billion. Adjusted earnings before interest, taxes, depreciation and amortisation were $US1.64 billion, beating analysts’ expectations of $US1.37 billion.”
- SupportedFox reported fiscal first-quarter revenue of US$4.57 billion, against estimates of US$4.31 billion.The Age - Latest News: “Fox reported fiscal first-quarter revenue of $US4.57 billion ($6.5 billion), exceeding Wall Street’s estimates of $US4.31 billion.”
- SupportedFox’s adjusted earnings before interest, taxes, depreciation and amortisation were US$1.64 billion, against expectations of US$1.37 billion.The Age - Latest News: “Adjusted earnings before interest, taxes, depreciation and amortisation were $US1.64 billion, beating analysts’ expectations of $US1.37 billion.”
- SupportedMS NOW’s audience rose 15 per cent to 1.16 million viewers over the same period.The Age - Latest News: “Versant Media Group’s MS NOW experienced a 15 per cent increase to 1.16 million viewers”
- SupportedCNN averaged 644,000 viewers, a 16 per cent increase over the same period.The Age - Latest News: “Skydance’s CNN averaged 644,000 viewers, a 16 per cent increase over the same period, Nielsen data showed.”
- SupportedMurdoch said, “Those viewers are not going to any other channel,” and that they were not switching to CNN or MS NOW but were watching slightly less television overall.The Age - Latest News: ““Those viewers are not going to any other channel,” Murdoch said. “They’re not switching to CNN or MS NOW. They’re just fatigued and watching slightly less television overall.””
- SupportedOverall advertising revenue rose 47 per cent to US$2.08 billion, mainly because of broadcasting the men’s FIFA World Cup over the summer.The Age - Latest News: “Overall, ad revenue jumped 47 per cent to $US2.08 billion in the quarter, mainly from broadcasting the men’s FIFA World Cup over the summer.”
- SupportedMurdoch said Fox would consider the US rights for the 2030 and 2034 World Cups in a disciplined manner.The Age - Latest News: ““We were obviously happy with the performance of the World Cup this past year and we’ll be looking at the rights for 2030 and 2034 in a disciplined manner as we would with all sports rights,” Murdoch said.”
