Industry Insider: FOX’s Live-First Strategy Still Works
In an industry still dealing with cord-cutting, soft linear advertising, and streaming margin pressure, Fox Corporation demonstrates that not all media companies face the same challenges. FOX's fiscal second quarter of 2026 reinforces a strategy that has become increasingly clear in recent years: focus on live sports, live news, and ad-supported streaming while everyone else chases scale.
FOX reported $5.18 billion in revenue for the quarter ended December 31, 2025, a 2% increase year on year, as well as $692 million in adjusted EBITDA. While those topline figures may appear modest when compared to the streaming-fueled growth narratives of previous cycles, the underlying performance tells a more important story. FOX is increasing its advertising and distribution revenue even without the political advertising tailwinds that boosted results a year ago.
Perhaps the most notable takeaway from the quarter is FOX's advertising resilience. Despite the fact that fiscal 2025 saw a record political advertising cycle, total advertising revenue increased by 1% year over year. Lachlan Murdoch, Executive Chair and CEO of FOX, described the advertising environment across the company's portfolio as the strongest it has seen in years, driven by pricing strength and demand in sports, news, and streaming.
FOX News reported its highest second-quarter advertising revenue ever, despite difficult year-over-year comparisons. The network added approximately 200 new advertisers in the first half of fiscal 2026, on top of the 350 added the previous year, indicating sustained brand demand for live news environments despite broader concerns about cable news erosion.
Sports advertising was equally effective. FOX set records for ad revenue during the MLB postseason, NFL regular season, college football, and NFC Championship programming, highlighting the company's advantage in owning premium, real-time viewing environments that advertisers cannot replicate elsewhere.
During the quarter, distribution revenue increased by 4%, with price increases more than offsetting subscriber losses. Management stated that subscriber losses improved sequentially to around 6.3%, excluding FOX One, indicating a significant stabilization compared to previous periods. The rise of "skinny bundles" has played a role, and FOX sees these offerings as a net positive because distributors continue to buy FOX's channels as a bundled package regardless of how they are marketed to consumers.
FOX One, the company's direct-to-consumer live streaming product that debuted just five months ago, is a major contributor to that confidence. Management stated that FOX One has exceeded expectations, thanks to both direct sign-ups and partnerships, with no significant cannibalization of traditional pay-TV subscribers. While live sports account for the majority of engagement, news accounts for roughly one-third of total minutes viewed, with news viewers spending nearly three times as much time per week as non-news viewers. That engagement profile supports FOX One's position as a live destination rather than a passive on-demand service.
Tubi has continued to quietly emerge as one of Fox's most important growth engines. The ad-supported streaming service had its most-streamed quarter ever, with total viewing time up 27% year on year and revenue up 19%. More importantly, Tubi achieved EBITDA profitability for the second quarter in a row, a feat that many streaming competitors still struggle to achieve. Tubi has become a valuable addition to FOX's live programming portfolio, with more than 70% of its audience classified as cord-cutters or cord-nevers and more than 95% of viewing occurring on-demand.
Despite seasonal free cash flow pressure caused by sports rights payments and working capital timing, FOX focused aggressively on shareholder returns. The company has repurchased $1.8 billion in shares year to date, bringing the total buybacks since 2019 to $8.4 billion, or roughly 35% of total shares outstanding. FOX also declared a $0.28 per share dividend, bringing the total cash returned to shareholders to around $10.4 billion since the company's inception.
The quarter collectively underscores FOX's increasingly unique position in the media landscape. While competitors pursue global streaming scale and library-driven engagement, FOX has embraced scarcity: live sports, live news, and cultural moments that continue to pique advertiser interest. Management stated that while peer advertising revenue has declined in recent years, FOX's advertising revenue, including streaming, has continued to grow at a healthy rate.
As FOX enters the second half of fiscal 2026, with major events such as the FIFA Men's World Cup on the horizon, the company's strategy appears less defensive and more deliberate. In a fragmented media economy, FOX believes that immediacy, not ubiquity, will remain the most valuable currency.
