Tubi, the leading AVOD service, demonstrated strong organic growth with a 13% increase in total view time in fiscal 2025, reaching a 2.2% share of all television viewing. Furthermore, the company plans to launch FOX One, a wholly-owned direct-to-consumer subscription streaming service, by Fall 2025 to expand its digital reach.

FOX secured new sports rights for INDYCAR and LIV Golf, extended Big East Conference rights through 2031, and maintains a long-term 11-year media rights agreement with the NFL. These investments, alongside a 42% ownership in the newly launched United Football League (UFL), reinforce its position in live sports programming.

The decision to discontinue the Venu Sports joint venture in January 2025, resulting in restructuring charges and write-offs, demonstrates management's willingness to exit non-performing strategic initiatives. This allows for a reallocation of resources to more promising growth areas, such as the acquisition of two digital media companies in fiscal 2025.

Management has consistently achieved strong operational and financial results, with total revenues increasing 17% and net income rising 48% in fiscal 2025, despite a complex industry environment characterized by evolving consumer behavior and intense competition.

The company's investment in Tubi, which saw 13% growth in total view time, and the planned launch of FOX One by Fall 2025, demonstrates a proactive approach to digital transformation. FOX Entertainment Studios' expansion of in-house unscripted content also reflects a strategic move to manage content economics directly.

Operating expenses increased by $1.4 billion or 16% in fiscal 2025, primarily due to higher sports programming rights amortization and production costs (e.g., Super Bowl LIX, NFL, college football). Selling, general and administrative expenses also rose by $144 million or 7% due to higher employee costs, indicating cost pressures despite revenue growth.

Industry-wide declines in MVPD subscribers are expected to continue and potentially accelerate, negatively impacting the Company's affiliate fee and advertising revenues. This shift in consumer behavior towards direct-to-consumer offerings poses a significant challenge to traditional linear distribution models.

The intense competition for popular programming rights, particularly in sports, is driving up acquisition costs, as evidenced by the $1 billion impact of higher sports programming rights amortization in fiscal 2025. The inability to renew these agreements on favorable terms or being outbid by competitors could adversely affect revenues and profitability.

The rapid development of generative AI introduces new risks, including the potential for competitors to replicate proprietary content and the risk of misattribution or IP infringement. Concurrently, the increasing sophistication of cyberattacks, potentially intensified by AI, poses threats of service disruption, data breaches, and significant financial and reputational harm.

FOX News has been the top-rated national cable news channel for over 20 consecutive years, and FOX Sports holds a leadership position in marquee live sports broadcasts. The FOX Network also ranked #1 in the 18-49 and 18-34 audiences during the 2024-2025 broadcast season, demonstrating robust brand strength and audience engagement.

Tubi is recognized as one of the fastest-growing AVOD services in the U.S., achieving 13% growth in total view time and a 2.2% share of all television viewing in fiscal 2025. Its ability to attract a young, diverse, and highly engaged audience positions it strongly in the competitive streaming landscape.

The Company's portfolio benefits from broad distribution across approximately 60 million U.S. households for its national cable networks and virtually every U.S. market for FOX Network programming. Its 29 owned and operated television stations cover 18 DMAs, including 14 of the 15 largest, ensuring significant market presence and reach.

Operating expenses increased by $1.4 billion or 16% in fiscal 2025 compared to fiscal 2024. This was primarily driven by approximately $1 billion in higher sports programming rights amortization and production costs, including those related to Super Bowl LIX and college football, partially offset by the absence of WWE costs.

Selling, general and administrative expenses increased by $144 million or 7% in fiscal 2025, primarily due to higher employee costs. This indicates a rise in overhead that, while smaller than content costs, still contributes to overall cost pressures.

Restructuring, impairment and other corporate matters increased to $350 million in fiscal 2025 from $67 million in fiscal 2024. This includes a $70 million non-cash impairment charge for FCC licenses due to lower expected advertising revenue and costs related to the discontinuation of the Venu Sports joint venture.

The Company is expanding its digital distribution offerings, with Tubi growing 13% in total view time in fiscal 2025 and launching 70 new original titles and 40 new channels. The planned Fall 2025 launch of FOX One, a direct-to-consumer subscription streaming service, further solidifies its digital strategy.

FOX maintains a comprehensive cybersecurity program aligned with the NIST Framework, including regular internal and external penetration testing, third-party security assessments, and a documented incident response plan. The Audit Committee actively oversees these efforts, indicating a strong commitment to data protection.

The company acknowledges the uncertain advantages and risks of generative AI, including its potential to enable new competitors to rapidly produce content, replicate proprietary content, and create 'deep fakes' that could erode audience trust and lead to IP infringement claims. Management is monitoring legal developments in this area.

The Board authorized an additional $5 billion for its stock repurchase program, increasing the total authorization to $12 billion. In fiscal 2025, the company repurchased approximately 21 million shares of Class A Common Stock for $1 billion, indicating management's belief in the company's intrinsic value and commitment to returning capital to shareholders.

The Company declared a semi-annual dividend of $0.28 per share, totaling $0.54 per share for fiscal 2025. With an expected aggregate of $250 million in total cash dividends for fiscal 2026, this demonstrates a stable and ongoing commitment to providing returns to stockholders.

FOX repaid $600 million of senior notes in fiscal 2025, contributing to a reduction in total borrowings from $7.197 billion to $6.602 billion. This, combined with $5.4 billion in cash and cash equivalents and an unused $1.0 billion revolving credit facility, highlights a prudent capital structure and strong liquidity.

FOX is committed to its 10,400 full-time employees through competitive compensation, comprehensive benefits, and programs promoting work-life balance, such as a robust parental leave policy and subsidized childcare. Learning and development initiatives, including specialized training on newsgathering ethics and early career programs, are also in place.

The Company's Board, particularly the Audit Committee, actively oversees cybersecurity risks, receiving regular updates from the CISO and conducting in-depth discussions on industry trends. This demonstrates a commitment to robust governance practices in managing critical digital risks.

FOX fosters a trusting work environment by enforcing policies against harassment, discrimination, and retaliation, supported by mandatory compliance training for all employees. The presence of employee-driven Employee Resource Groups (ERGs) further promotes a respectful and inclusive workplace community.

The media industry is experiencing a rapid evolution in consumer behavior, with increasing viewership through direct-to-consumer offerings (SVOD, AVOD, FAST) and a decline in traditional linear television. This trend intensifies audience fragmentation and competition for digital advertising, posing ongoing challenges for traditional media companies.

Advertising revenues are significantly impacted by cyclical sports events, such as the Super Bowl LIX in February 2025, and major political events, including the 2024 presidential and congressional elections. Weak economic conditions, high inflation, and higher interest rates also continue to adversely affect overall advertising expenditures.

The Company faces a complex and rapidly evolving regulatory environment, particularly concerning data privacy (e.g., CCPA, GDPR) and the emerging regulation of AI in political advertising. Changes in FCC regulations, such as the potential reallocation of C-Band spectrum, also introduce uncertainty and could lead to increased compliance costs and operational limitations.