-
Why Doesn’t Obama Ban Iranian Press TV? by Kenneth R. Timmerman
The Case of CH2M HILL: $2 Billion in Crony Stimulation by Rusty Weiss
The Truth about George Soros by AIM Staff
Lifting the Veil on WikiLeaks by AIM Staff
The Truth about Al-Jazeera English by Cliff Kincaid
Reaganomics and Obamanomics in the Media and in Reality by Malcolm A. Kline, Don Irvine and Spencer Irvine
How State Budget Battles Could Mean More Criminals Back on the Streets by Michael Tremoglie
Radical Muslims, Environmentalists and the Green Jihad by Mark Musser
Russian-Backed Propaganda Networks Claim Obama is a CIA Agent by Cliff Kincaid
Media Conceal True Nature of Flash Mob Racial Violence by John T. Bennett
NBC’s Mitchell Should Resign Over Telling Gaddafi’s Lies (Part 1, Part 2, Part 3) by Cliff Kincaid
CASA de Maryland: The Illegals’ ACORN by James Simpson
Special Report
The Newswire
Take AIM Podcast
Fox News Now Worth $12.4 Billion
Last month Fox News celebrated its tenth consecutive year as the number one cable news channel. Now comes a report that shows just how that ratings success has translated into huge financial gains for the channel’s owner, News Corp.
Multichannel News took a look at Fox News and found that not only has their average primetime audience increased 78% in the last 10 years, but they are fast becoming a financial juggernaut in the cable industry with subscriber fees rivaling that of the entertainment channels.
Whatever the reasons for its audience alchemy, FNC’s Nielsen success has translated to significant financial gains with both advertising and affiliate fees. In a research report, Morgan Stanley analyst Benjamin Swinburne estimates FNC’s fair-market value at $12.4 billion, which makes it News Corp.’s top asset. He forecasts total revenue at $1.6 billion this year, with EBITDA of $975 million.
Miller Tabak analyst David Joyce estimated that FNC will generate $802 million of its $1.87 billion in 2012 revenue, a 12% advance overall, from advertising. He puts FNC’s operating income at $714 million for the year, a 38% margin.
According to SNL Kagan estimates, FNC will ring up $852.1 million in ad sales in 2012, versus $683 million for CNN/Headline News and $271.8 million for MSNBC.
Current estimates are that Fox News receives 82 cents per subscriber from cable and satellite systems, which compares to 50 cents at CNN and 19 cents at MSNBC. While it’s far ahead of its rivals, Fox is flexing its ratings muscle and is reportedly seeking a rate increase to as much as $1.25 per subscriber, which, if achieved, would make their earnings explode, as well as setting a new standard for the value of cable news. Rates in this area would put it on par with cable entertainment channels, which are considered more valuable than news channels.
Even more remarkable is that in less than 16 years, Fox has not only managed to become News Corp’s number one asset, as noted above by a Morgan Stanley analyst, but its estimated worth represents 25% of the entire company’s market capitalization.
Industry observers say that short of Fox’s major personalities retiring or leaving the network, or the competition coming up with top-drawer personalities of their own, it will be hard to dislodge Fox from their perch in the foreseeable future.
For MSNBC and CNN it has been a decade of futility as they have tried to catch Fox, and for the near future their prospects don’t look much brighter.
Share This
About the author
Don Irvine is Chairman of Accuracy in Media. He is active on Facebook and Twitter. You can follow him @donirvine to read his latest thoughts.
Related Posts
6 Comments for Fox News Now Worth $12.4 Billion
So,,,they make more than last year,,,& will probvably make more next year. So,,a few cowardly advertisers bow out because of pressure from groups like Soros funded friends,,,& Fox loses a few million in Ads,,,,BIG DEAL. They make it up & will do better next year. So,,,will you NOW bring back Glenn Beck???? I watch Fox & Fox Bus News,,,but I do NOT watch the commercials ,,or will buy anything on the Fox channels ,,,not until they grow Cahones & re-hire Beck.
THIS DATA IS COMPLETELY FALSE!!! FAKED, TOTAL LIES!!! OBVIOUSLY MURDOCH IS WORRIED, IS HES AUDITING HIS OWN FINANCIALS??? BECAUSE, THIS REPORT IS A REPEAT OF HIS PREVIOUS ONE 2 YEARS AGO!! FOX IS LOSING AUDIENCE & NETWORK SHARES!!! FAST!! DID YOU SEE OREILLYS FAKE GRAPH?? FOX NEWS 36%… WEB NEWS 25% CLOSE TO PRINT/PAPER NUMBERS??? AT 20% WHAT A LAUGH!!! INTERNET IS 65% WHERE WE GET ACTUAL FACTUAL.. NEWS!! PROPAGANDA IS OVER!!! KEEPING AMERICA IN THE DARK, IS OVER!!! YOU ARE OVER FOX, AND RIGGING THESE NUMBERS ONLY WORKS FOR IDIOTS!! MAYBE YOU SHOULD OF RETHOUGHT SELLING OUT TO SOROS??? PAYWALLS ARE CENSORSHIP TO BTW!!! MURDOCH IS HARDLEY THE GENIUS HE THINKS HE IS. NOTE: IF YOU HAVE TO GET BUYING ADVERTISING TO SAY YOUR NUMBER 1??? YOU ARENT, ANYMORE. IM IN UK, FEEL SORRY FOR YOU AMERICANS WITH NOTHING BUT PROPAGANDA NOW!! READ THE INDIA TIMES!! THATS WHAT WE DO!!
THE CLEAR SIGN SHOULD BECK, THEN JUDGE NAP, OUT.. SALLY KOHN SOROS MOUTH PIECE IN!! MURDOCH IS LETTING SOROS RUN HIS NETWORK FROM THE INSIDE NOW?? HE BENT OVER, AND SOLD AMERICA OUT!! FUNNY, THE SAME PERSON THAT TOOK HIM DOWN..HE SELLS OUT TO?? HOW STUPID IS THAT??
HOW DO YOU GIVE UP THE DOMINANT MARKET SHARE WHICH WAS RIGHT AT 80%… TO SELL THEM OUT, TO **SHARE THE LEFTS 40%???
WTF?? WHATEVER YOUR POLITICS, THATS OUT RIGHT CRAZY!!
SOMETHING —FISHY— ABOUT WHY THE, RIGHT WAS SILENCED.. MOST RECENTLY THE JUDGE!! JUST BEFORE 2012. GUESS SOROS GOT WHAT HE WANTED. BUT, AMERICA, KNOWS WHAT THAT MEANS. YOUR EXVIEWERS.. WERENT STUPID, TOO BAD YOU THOUGHT, THEY WERE.
AFTER THEY MADE YOU RICH!! BRAGGING ABOUT THE BUSINESS, THEY GAVE YOU.. THEN YOU RUBBED SOROS IN THEIR FACES… WHOA. BAD MOVE. LIKE TO SEE YOUR NUMBERS NEXT YEAR!! WE WONT GET FOOLED AGAIN. FAIR PROPAGANDA-BALANCED PROPAGANDA… IS GUESS WHAT?? STILL PROPAGANDA/LIES/COMPLETE BULL!!! ALSO, GET OREILLY A CALCULATOR.. THAT GRAPH WAS HILARIOUS… OREILLY BEATS REAL NEWS ON WEB??? LAUGHABLE. YOUR PAYWALL ON YOUR OTHER SITES?? WILL BREAK YOUR PIGGYBANK!! WHOMEVER PAYS.. TO READ PROPAGANDA..IS A COMPLETE MORON!!
hmmnn.. Fox being above CNN, does’nt mean much, the programs have become so Cnn like, icluding the losers Cnn fired! these so called profit figures won’t last long. either way!
I wouldn’t gamble on Fox keeping the lead, it seems it did clearly sell out, the folks!! I would gamble on seeing people so fed up with the competition of who lies better, to end them all.
Personally, I’m insulted that all these socalled News outlets consider the audience stupid.
funny that Uk guy, I also read other countries news to see what U.S. is really doing, or lying about! how bad is our news then?
What possible relevance could the headline of this article POSSIBLY have to the average working American and his or her family!
It’s just Blowhard Bu**sh**!