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Can Tubi and Roku sustain Fox’s growth as sports and political addollars fade?

While cyclical political ad dollars will inevitably return for the next election cycle,underlying linear network rating drops present a deeper structural test, said Michael Goodman, director of entertainment research at Parks Associates.

“Political advertising comes and goes. Every two years you get a bump,"Goodman said. "It's the ratings decline that is the more concerning number forFox because that impacts advertising revenue and trickles into their subscriptionbusinesses. What was working on the linear side is simply not working the way itused to."

However, Goodman said Fox's traditional cable footprint remains essential forfueling its future strategy, even as audience reach shrinks due to cord-cutting. "That linear advertising is a cash cow, and it underpins a lot of what else they'retrying to do," Goodman said. "It helps pay for content development andunderpins major corporate initiatives. Legacy media entities are fighting afundamental shift: you need to take advantage of the cash your linear networksare generating today to become something else."

According to Parks Associates data, combining Fox and Roku’s ecosystems willexpand Fox’s reach to 42% of U.S. broadband households, capturing a 15%net-new audience that currently uses Roku exclusively.

"Tubi is part of that transformation,and certainly the Roku acquisition is part of that transition," Goodman said. "Youcould argue that a lot of the cash generated by linear today is going towardsenabling that acquisition, allowing them to evolve their

From the article, "Can Tubi and Roku sustain Fox’s growth as sports and political addollars fade?" by Saleah Blancafor

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