Fox Broadcast Ratings Hit 14-Year High as Murdoch Weighs Future Sports Rights Costs

2026-02-06 companies

Los Angeles, Friday, 6 February 2026.
Fox Corporation CEO Lachlan Murdoch reported the network’s strongest midseason broadcast performance in over a decade, defying linear television trends. While Q2 revenues climbed to $5.18 billion, Murdoch delivered a crucial strategic signal: the company is prepared to “rebalance” its lucrative sports portfolio if NFL rights fees become prohibitive, prioritizing profitability over retaining every asset.

Linear Resurgence in a Streaming World

In a surprising turn for legacy media, Fox Corporation (NASDAQ: FOXA) has defied the prevailing narrative of linear television’s decline. During the company’s fiscal second-quarter earnings call on Wednesday, CEO Lachlan Murdoch announced that the Fox broadcast network secured its most successful midseason launch in 14 years [1]. This broadcast vitality was driven by the January premieres of Memory of a Killer, Best Medicine, and Fear Factor, each of which surpassed 11 million viewers across platforms during their inaugural weeks [1]. The surge in viewership translated into tangible financial gains; Murdoch noted that entertainment revenue at Fox increased for the quarter, marking the first such uptick in four years [1]. Viewing minutes for the midseason launch period also jumped 21% compared to the previous year, signaling that despite the industry’s pivot to digital, traditional broadcasting retains significant pull with audiences [1].

The Cost of the Gridiron

While the entertainment division celebrated a rare win, the earnings call highlighted a looming financial challenge: the escalating cost of sports rights. Murdoch addressed the possibility of the NFL renegotiating its media deals as early as 2026, stating that Fox is prepared to “rebalance” its sports portfolio to accommodate potential price increases [2][3]. Fox currently pays an average of $2.25 billion annually for its Sunday afternoon NFL package under a deal that runs through 2033 but includes an opt-out option in 2029 [2]. With the NBA recently securing media rights deals worth $75 billion—dwarfing previous contracts—the market expectation is that the NFL will seek a similar valuation spike [2]. Murdoch’s comments suggest that if NFL costs rise significantly, other sports properties in Fox’s stable, which includes MLB and NASCAR, could face scrutiny or reduction to maintain profitability [2][3].

Financial Headwinds and Digital Growth

Financially, the quarter presented a mixed picture. Fox Corporation reported total revenues of $5.18 billion, a 2% increase year-over-year [5][6]. However, net income fell significantly, dropping -36.34% to $247 million from $388 million in the prior year [5]. The company’s adjusted EBITDA also declined to $692 million, a decrease of $89 million attributed to rising expenses in sports programming rights and digital marketing [3]. Despite these pressures, the advertising climate remains robust for Fox’s news division. Murdoch told investors that scatter pricing—the cost for last-minute ad spots—for the Fox News Channel is up an “embarrassing 46% or 47%,” underscoring the network’s dominance in the cable news sector [6].

Sources

Fox Corporation Broadcast Television