Fox Corp's Strategic Reinvention in the Streaming Era: A Glimpse into Sustainable Ad Revenue Growth

In an era where traditional media is grappling with declining viewership and shifting consumer habits, Fox Corporation has emerged as a beacon of innovation. By leveraging its diversified media assets—Tubi, Fox News, and the newly launched Fox One—Fox is not only adapting to the streaming revolution but also redefining the advertising landscape. This strategic reinvention positions the company to deliver consistent earnings upside, even as the broader media sector faces headwinds.

Tubi: The Ad-Supported Powerhouse

Tubi, Fox's ad-supported video-on-demand (AVOD) platform, has become a cornerstone of its digital strategy. In Q3 2025, Tubi generated $330 million in advertising revenue, a 20% increase from the prior quarter, driven by a 35% year-over-year revenue surge. The platform's success is rooted in its ability to balance viewer experience with advertiser value. With an average of four to six minutes of ads per hour, Tubi avoids overwhelming users while maximizing ad inventory.

The Super Bowl LIX simulcast on Tubi was a watershed moment, attracting 15.5 million peak concurrent viewers and 8 million new registered users. This event underscored Tubi's ability to scale during high-profile moments, generating $1 billion in revenue over the trailing 12 months. Its 100 million monthly active users and 24% year-over-year increase in viewing time further validate its appeal. For advertisers, Tubi offers a cost-effective alternative to premium SVOD platforms, with a 35% increase in ad spend during the 2024 upfront market.

Fox News: Digital Diversification and Ad Innovation

Fox News has evolved beyond its linear TV roots, embracing digital platforms to expand its advertising footprint. In 2025, the network's ad revenue surged 26% year-over-year, fueled by a 31% growth in Tubi's ad revenue and a 15% increase in Cable Network Programming advertising. The launch of OneFox, a unified ad-buying platform, has streamlined access to Fox's entire portfolio, including news, sports, and Tubi. This integration has tripled ad volume year-over-year, offering advertisers a cohesive way to reach diverse audiences.

Fox News' digital expansion into subscription services like Fox Nation (2.5 million subscribers) and ad-supported platforms like Fox Weather has created new revenue streams. These initiatives are projected to generate $500 million in non-cable revenue in 2025, with double-digit growth since 2020. The network's focus on social media, product integrations, and commerce-driven content (e.g., “Fox & Friends”) further diversifies its ad offerings.

Fox One: The Future of Direct-to-Consumer Streaming

Fox's latest venture, Fox One, launched in August 2025, is poised to amplify its ad revenue potential. Priced at $19.99/month, the service offers direct access to Fox News and Fox Sports programming, targeting cord-cutters and underserved demographics. By integrating Caliente TV—a regional sports streaming service with rights to the Premier League and Liga MX—Fox One taps into high-engagement sports content, a lucrative segment for advertisers.

While Fox One's financial impact in 2025 is yet to be fully realized, its strategic alignment with industry trends (e.g., DTC streaming, sports betting via FanDuel) signals long-term growth. CEO Lachlan Murdoch emphasized that Fox One complements existing linear offerings, ensuring Fox remains competitive in a fragmented market.

Financial Resilience and Shareholder Value

Fox's diversified strategy has translated into robust financial performance. In fiscal 2025, the company reported $16.3 billion in revenue, a 17% increase, with advertising revenue up 26%. Q4 2025 saw a 7% rise in ad revenue to $1.08 billion, driven by political advertising, the Super Bowl, and Tubi's growth. Fox's strong balance sheet—0.72 debt-to-equity ratio and 2.59 current ratio—supports continued reinvestment in digital assets.

To reward shareholders, Fox increased its share repurchase authorization by $5 billion and raised its dividend to $0.28 per share. These moves reflect confidence in the company's ability to sustain earnings growth amid industry-wide challenges.

Investment Implications

Fox's strategic reinvention offers a compelling case for investors. By capitalizing on AVOD trends, digital diversification, and DTC streaming, the company is insulating itself from the decline of traditional media. Tubi's scalable ad model, Fox News' digital innovation, and Fox One's potential to capture new audiences create a multi-pronged approach to ad revenue growth.

For investors, the key metrics to monitor include Tubi's subscriber growth, Fox One's user acquisition, and the performance of OneFox in attracting advertisers. With Fox's 16.57% return on equity and disciplined capital allocation, the company is well-positioned to deliver shareholder value in the streaming era.

In conclusion, Fox Corp's ability to adapt and innovate in the face of industry disruption underscores its leadership in the evolving media landscape. For those seeking exposure to a company that is not only surviving but thriving in the streaming era, Fox presents a high-conviction investment opportunity.