The technology-driven transformation of a media giant

Future-Proofing Media: How Fox Embraces Digital-First Strategies

Paul Cheesbrough, CEO of Tubi Media Group, discussed Fox’s transition from a traditional media company to a digital-first approach. He noted that media has always been in a transformative state, rejecting the term “legacy” for its negative connotation. Instead, he prefers “traditional” and “new” media, emphasizing that most companies are now a hybrid of both, balancing broadcast and cable with streaming, web, and mobile platforms.

Mr. Cheesbrough highlighted that while traditional platforms like broadcast TV still generate significant revenue and reach mass audiences, their viewership is declining. This shift is largely due to the rise of subscription video-on-demand services and changing consumer habits. However, he emphasized that the infrastructure and relationships from traditional business, such as sales teams and sports rights, are valuable assets for digital monetization.

A major challenge for media companies is the “innovator’s dilemma”—knowing when to transition from profitable traditional models. Paul Cheesbrough explained that many media companies delayed this shift due to the high profitability of traditional TV. Netflix’s evolution from DVD distribution to streaming forced the industry to adapt, making it clear that disruption was necessary to remain competitive.

Consumers, especially younger audiences, have gravitated towards smartphones and streaming, leading to a significant drop in traditional TV viewership. This necessitates being present on new platforms and developing sustainable monetization strategies. Mr. Cheesbrough noted that building unit economics for digital businesses to fund expensive content, sports rights, and journalism is crucial for long-term profitability.

Fox acquired Tubi in 2020, a free, ad-supported streaming service with a vast content library. Tubi targets a younger demographic with its personalized, modern user experience, offering free content in exchange for short ad breaks. This strategy has propelled Tubi to become the number one free streaming player in the US, leveraging Fox’s content and ad sales capabilities for accelerated growth and monetization.

Discussing the new sports streaming joint venture with Disney and Warner Brothers Discovery, Mr. Cheesbrough explained it aims to aggregate fragmented sports rights into a single, consumer-friendly platform. This initiative targets cord-cutters and mobile audiences, simplifying access to premium sports. He also predicted consolidation in the subscription streaming space, with a few major players dominating the market.

For the future, Paul Cheesbrough stressed that successful media companies will possess strong brands, achieve massive scale (often globally for subscription services), and demonstrate entrepreneurial risk-taking. Investing in new talent, platforms, and agile operations, as Fox did by re-platforming after its Disney transaction, is vital. Maintaining strong cash flow and strategically deploying it for organic growth or M&A are also key attributes for survival.