Northern, WI 03/07/2013 (indicesmedia) – It seems like Rupert Murdoch’s 15-year-long efforts have finally borne fruit and the national sports network that News Corp (NASDAQ:NWSA) has launched is all set to reap profits over the next 2-3 years and Walt Disney Company (NYSE:DIS)’s ESPN finally has competition. Yesterday, Fox Sports 1 announced that News Corp (NASDAQ:NWSA) will now be accessible to over 90 million pay-TV homes. They said that the existing New York Yankees, World Cup and NASCAR rights will be drawn from. In addition to this, regional sports channels, the FX network and UFC martial arts bouts will also be available to its viewers.
These investments are the foundation stones for the Fox Sports 1 operations that will be airing live events starting August. Lee Berke, the LHB Sports Entertainment Media president said that the new network will be sharing programming costs, sales and production and back-office functions with the other News Corp outlets. LHB helps various leagues in creating channels. He added that since they are not starting from the lowest rung the path to profitability is not such a steep ascent for them. News Corp (NASDAQ:NWSA) holds rights to football games, Big 12 college basketball, Pac-12 and close to 20 regional sports networks.
Many new building blocks
These include three out of the five most watched ones, Fox sports Southwest, Fox Sports West and No 1 YES Network, 49 percent of which had been bought out by News Corp, last year. In January the Sports Business Channel reported that Fox has the ability to carry upto 18 Yankees baseball games that will be starting nationally in 2014. In addition to this, the company holds rights to the 2018 World Cup, the English Premier League in 2022 as well as the Champions League Tournament which is held annually. For a start, Fox Sports 1 should be generating $1 billion per year in subscription fees as well as sponsorship revenue and advertising.
Chase Cary the News Corp (NASDAQ:NWSA) CEO said that Fox has been signing contracts for over a year now and the new network will sustain all losses as Fox is seeking to expand the subscriber fee but it has the potential to turn into a multi-billion dollar asset in under 5 years. It is going to be a tough competitor to ESPN in the sports space and the company aims at eventually airing NFL games. Fox Sports Go will be the mobile phone service that Fox Sports will be offering. The mobile application will eventually show games and game highlights that will not be available on TV. The Fox website is also being revamped and will sport a new look. The Fox viewers are in for a treat and the company will definitely be raking in the dollars.
A split in News Corp is in the offing and there will be a formation of two companies- an entertainment business with films and television and a publishing operation. The dynamic 81-year old Murdoch who was responsible for turning Fox into a powerhouse in the cable market will be the Chief Executive Officer of the Entertainment Company and chairman of both.
Shares of The Walt Disney Company (NYSE:DIS) went down by 0.21% to close at $56.36
Shares of News Corp (NASDAQ:NWSA) went down by 1.06% to close at $29.87
Shares of Comcast Corporation (NASDAQ:CMCSA) went down by 0.24% to close at $40.85
Shares of CBS Corporation (NYSE:CBS) went down by 0.16% to close at $44.81
Shares of Time Warner Cable Inc (NYSE:TWC) went down by 0.40% to close at $89.29