To mirror a five percent rise in the home video market, Fox’s home video earnings are up as well. Total revenue of the media giant is up 14 percent from last year, at $9.54 billion, with the driving force behind the growth in home video being digital services like Hulu. Digital rentals and Blu Ray are also experiencing bumps offsetting the decline in other formats. The future is encouraging for Fox’s line of digital services as the recent profitable bump shows.
FX Networks is aiming to compete with large broadcast networks for ad buys by splitting their audiences and offering competitive CPMs. The newest network, FXX, aimed at the valuable 18-34 demographic, will launch September 2 and become the new home for such favorites as “The League” and “It’s Always Sunny in Philadelphia.” This announcement follows the launch of FXM, which airs movies, and will soon be home to original miniseries much like competitor HBO. The company also intends to launch FXNow this fall, offering on-demand streaming aimed to reduce DVR usage. The service will include FX original series as well as a rotating set of movies. Now that FX has clearly set its sights on such varied competitors as ABC, NBC, HBO, and Netflix, will other networks follow suit and diversify?
And again, Fox is suing Dish over the Hopper. After a failed lawsuit over the Hopper DVR’s ability to skip commercials, Fox is going after the network for delivering live and recorded TV to computers, phones, and tablets through the Internet. Fox argues that this feature breaches Fox’s licence agreement with Dish because Dish doesn’t have rights to Fox’s content on the Internet, unlike providers like iTunes and Amazon, who currently pay to offer commercial-free, on-demand versions of Fox programming over the Internet. This is just a battle in the ongoing war over how viewers will be able to access content in the age of readily accessible streaming – and the success or failure of the Hooper, as well as the legal battles surrounding it, could determine how this conflict resolves more broadly.