A Fox National Sports Net Would Make Sense, But Wouldn’t Ding ESPN: Analyst

Nomura Equity Research’s Michael Nathanson does a nice job this morning of laying out the likely business arrangements for News Corp‘s still unannounced but widely expected plan to convert its Speed channel into a national network to be called Fox Sports 1, with Fuel to be rebranded as Fox Sports 2. Rupert Murdoch is betting on “what the company believes will be increasing value of live sports over the next couple of decades,” Nathanson says. Advertisers spent a record $13.3B on broadcast and cable sports last year, confident that viewers would watch them live — instead of recording the shows to zip past the commercials. News Corp’s sports initiatives also seem to make sense according to Nathanson’s calculations of pay TV fees: Speed and Fuel together collect about $300M a year. Under what the analyst calls his “blue sky scenario,” the company could see nearly $1.5B in additional revenue from cable and satellite companies (and, presumably, their customers) as Fox hikes their prices once the channels are rebranded. (more…)

This article was printed from https://deadline.com/2013/01/news-corp-fox-sports-espn-411619/