Fox CEO Says Company Still Needs Scripted and Unscripted Entertainment Amid “Tough” Streaming Shift

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Lachlan Murdoch told a Morgan Stanley conference that 'scripted and unscripted reality TV is important to bind the ecosystem.'

With Fox News routinely topping the cable ratings charts , and Fox Sports keeping its events including its Sunday NFL games exclusive to broadcast, the company has been able to drive carriage and retrans fee increases.

“We don’t believe it helps to put those rights on a streaming service, we think it is very important that those rights remain exclusive to the broadcast environment, and that is one reason we can drive retrans rights,” he added, specifically referring to Fox’s NFL games. “We provide a premium to them that others don’t.”

“Scripted and unscripted reality TV is important to bind the ecosystem, the stations, to what Fox Sports does. Having said that it is a tough business now. People aren’t used to tuning into a drama on 9 o’clock on a Tuesday night,” Murdoch said, adding that they monetize the programming by selling replays to Hulu, or by owning stakes in programs like Gordon Ramsey’s shows. “You have to have culturally important dramas and reality that people talk about,” he said.

“We passed on the UFC when it came up last tie around, It was very hard for us to monetize it [from an advertising standpoint,” he said.

 

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