Fox Corporation (FOXA - Free Report) recently launched Fox Soul, a free live-streaming service aimed at African-American viewers.
The ad-supported platform features four hours of live original talk and information shows every day, followed by two hours of reruns from the group's 28 owned-and-operated local television stations. When the programming isn't live, consumers have on-demand access to recent programs.
The streaming platform is available at foxsoul.tv and as an app for iPhone, Apple TV, Android, and FireTV platforms.
Streaming Service to Boost Profitability
African-Americans are the third largest racial demographic in the United States, after Whites and Hispanics. Moreover, they continue to lead the consumption of media across multiple platforms.
Per Nielsen, 91% of African-Americans can be reached weekly via television. However, they tend to gravitate toward content that reflects their images and storylines.
Notably, Fox’s own show Empire, which features an African-American cast, shows up among the top 20 most watched shows for both the African-American and total population.
Moreover, Black Panther, which was the first Marvel Studios movie to feature a black superhero, became the third top-grossing title of all times at the North American box office within two months of release.
Thus, a streaming service aimed specifically at the African-American population is expected to boost Fox’s growth prospects in the near term.
Competition to Hurt Growth
The company’s growth is likely to be hurt by competition in the streaming space, with other players targeting specific racial demographics as well.
Notably, ViacomCBS (VIAC - Free Report) launched its own streaming service Bet+ in September 2019. This subscription video service also targets African-American audiences where the company sees untapped demand.
Moreover, streaming giant Netflix (NFLX - Free Report) has been investing in developing content aimed at specific demographics. The company released the movie Dolemite Is My Name in 2019, which is aimed at a black audience. It has also developed several Spanish-language shows like Narcos and Money Heist for its Hispanic audience.
Further, the streaming market is about to get more crowded with AT&T’s HBO Max and Comcast (CMCSA - Free Report) owned NBCUniversal streaming service Peacock set to debut this year.
Fox Corp. currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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