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Fox (FOXA) Rides on Growing Cable TV and Digital Viewership

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Fox Corporation FOXA continued its cable television dominance with FOX News Channel (FNC) gaining more viewers in total day and prime time for the sixth consecutive year according to the latest data from Nielsen Media Research.

FOX News Digital grabbed the #1 spot for the month of November. FOXNews.com reached close to 1.6 billion multiplatform views and over 2.9 billion multiplatform minutes, per the data from Comscore.

Fox has been benefiting from the growing popularity of its cable and digital content among viewers. This has translated into higher revenues and share price appreciation.

Fox shares have outperformed the Zacks Broadcast Radio & Television industry as well as peers including Comcast CMCSA, The New York Times NYT and AT&T T.

Shares of Fox, which currently has a Zacks Rank #3 (Hold), have gained 27.1% year to date compared with the industry’s growth of 5.1%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Fox Corporation Price and Consensus

Fox Corporation Price and Consensus
Fox Corporation Price and Consensus

Fox Corporation price-consensus-chart | Fox Corporation Quote

In contrast, shares of Comcast, parent of NBCUniversal, which owns MSNBC, have declined 6.8% year-to-date. NYT stock has fallen 12.8%, while shares of AT&T, parent of Warner Media which owns CNN, have slumped 17.5% on a year-to-date basis.

FNC Dominates Cable in Total Day & Prime Time

FNC averaged between 2,365,000 viewers and 374,000 viewers in the age group 25-54 and 233,000 in the 18-49 age group. In total day, FNC delivered between 1,328,000 viewers and 223,000 viewers among the 25-54 age group.

FNC is the most-watched basic cable network compared with its peers — CNN and MSNBC — having delivered 2 million viewers in primetime and 1 million in total day.

Per data from Nielsen/MRI Fusion, FNC holds 44% shares of the entire cable news audience in total day viewership and 41% of the audience within the 25-54 age group. In primetime, the network holds a 47% audience share in total viewers and 43% in the younger 25-54 demography.

As a result, FNC increased its share of the cable news audience within the 25-54 age group from 2020 to 2021.

Tucker Carlson Tonight finished 2021 as the highest-rated program in cable news, averaging 3,219,000 viewers, 537,000 within the 25-54 age group and 340,000 within the 18-49 demography.

FOXNews.com Gaining Rapid Traction

FOXNews.com beat CNN.com in multiplatform minutes for the ninth consecutive month and outperformed all other news brands in the news competitive set.

FOXNews.com had more than 90 million multiplatform unique visitors for the fourth straight month in November. The FOX News Mobile App drove close to 6.3 million unique visitors in the month.

FOXNews.com maintained its popularity as the most engaged news brand for the 87th consecutive month against social media peers.

FOX News was the top-performer in Facebook and Instagram interactions among news competitors, with more than 26.9 million Facebook interactions (up 35% compared with October) and more than 30 million on Instagram (up 11% compared with October), according to Socialbakers.

FOX News finished November as #1 among news competitors with YouTube video views, nabbing more than 301 million, up 33% year over year.

Improving Ad Spending Environment Bodes Well

Fox is expected to benefit from an improving ad spending environment. Growing cable television and the digital viewer will continue to boost traffic, thereby driving ad revenues.

In the fiscal first quarter of 2022, Cable Network Programming (46.5% of revenues) revenues increased 6.9% year over year to $1.42 billion. Advertising revenues increased 4%, primarily on continued digital monetization at FOX News Media, and the favorable impact of additional live events and studio shows at FOX Sports in the reported quarter.

Television (51.9% of revenues) revenues increased 17.1% from the year-ago quarter’s figure to $1.58 billion. Advertising revenues improved 22% year over year primarily on a recovering base market at the FOX Television Stations, continued growth at Tubi and strong pricing at FOX Entertainment.

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