Business News – Outfoxed?
FOX Business News launched yesterday; the channel has been on air since 5am EDT, same for the website. Here is how they kicked it off:
A Business News Station had been in Rupert Murdoch’s sketch book for quite a while, although FOX Business Networks (FBN) has to share the market with CNBC – reaching almost 90 million households alone – and Bloomberg. FBN will only be broadcasted to 30 million homes in the beginning. So what’s it going to be? A conservative, big-business friendly PR-machine?
The FBN team describes the channel as “Main Street vs. Wall Street” – sounds more like an investment guide for the average joe. Roger Ailes, the man who lead FOX News to overtake CNN in as little as four years in viewers, apparently sees a chance in appealing to smaller investors. As does Rupert Murdoch, as he told Fortune:
“I’m looking for a wider audience, more people in business and on Main Street, more than people who are just watching the market all the time. It will be a real business channel – a real aspirational channel, if you will.”
The launch comes as a part of News Corp’s bigger strategy to dominate global business news – no matter if it’s print, TV or online. Two months ago, Ruport Murdoch’s company had already bought The Wall Street Journal’s publisher, Dow Jones & Co Inc., in a $5 billion deal. It’s going to be interesting to see how the TV station and the news publisher will integrate. For now, Dow Jones still has a content providing contract with the rivals from CNBC that runs until 2012; until then it seems like a fair competition. After that, CNBC has to come up with a good idea. Actually, make that at least a couple of them.
So, will it be the same deal as eleven years ago when FOX News went on-air? Roger Ailes once again leading the underdog with controversy and conservatism to win in the ratings? No, today’s TV market is hardly comparable to the situation a decade ago. Back then, the mystic word was cable, now all cool kids do online. Also, the competition is aware of history – CNBC will not react as slowly as CNN to the new circumstances. And then there is also the failure of CNNfn, Ted Turner’s own attempt to create a business news channel, looming out of the dark.
However, FBN has some advantages. Being with News Corp always helps. Rupert Murdoch is willing to spend $300 million each year for the next three years to get FBN on its feet. Murdoch, himself being a fierce believer in the power of the internet, has already geared the network towards a dualistic, on-air and online at the same time and speed strategy.
News Corp is going down both tracks – reaching out to the avid brokers who get their stock prices online, trusting the expertise of The Wall Street Journal, as well as to the small business owners who are in need of basic information about the markets and might watch FBN. Rupert Murdoch secures his stakes online as offline; at Wall Street as well as at Main Street. Might just work out.
By Kolja Langnese
Sources:
- Washington Post – Fox Puts Its Money on ‘Fun’ Business Channel
- Fortune – Inside FOX Business News
- Reuters – Fox Business Channel to take on CNBC
- Broadcasting & Cable – COVER STORY: Inside Roger Ailes’ Plan to Crush CNBC
- The Wall Street Journal – Murdoch’s Next Focus: Business-News Battle
- FOX Business News
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