Is Cord-Cutting Hurting Everybody?

The shift away from traditional cable and satellite TV isn’t slowing down. Recent reports show that cord-cutting is accelerating, with subscription numbers dropping by about 10% in recent quarters. Currently, only around 40 million people in the U.S. still subscribe to traditional linear TV.

Even when you add in virtual TV providers like Hulu + Live TV, YouTube TV, and Sling, the overall pay TV market is still shrinking, down roughly 5% recently. This puts the total number of pay TV subscribers at about 62 million, far below what it used to be.

Affiliate Revenue Takes a Hit—Except for Fox

As fewer people pay for traditional TV, media companies that rely on it for revenue are feeling the squeeze. Linear affiliate fees—a key source of income from cable distributors—are dropping. Disney has seen a 3% dip, and Warner Bros. Discovery has experienced an 8% drop. These are significant hits in an already shifting media landscape.

But one company is going against the tide: Fox Corp. In the first quarter of this year, Fox saw a 5% increase in linear affiliate revenue, reaching close to $2 billion. This is part of a positive trend that began in late 2023. The main reason? Fox’s deep investment in live news and sports, two genres that audiences still prefer to watch in real time.

Fox’s Unique Streaming Strategy

Unlike its competitors, Fox has taken a slower, more strategic approach to streaming. Its newly announced platform, Fox One, isn’t trying to replace traditional TV—it’s designed to work alongside it. What’s more, Fox isn’t chasing the same audience as everyone else. Instead of trying to win back cord-cutters, it’s targeting “cord-nevers”—people who’ve never had a cable subscription to begin with.

This approach is helping Fox maintain a more stable base of viewers. While the company still lost some subscribers (down 6.5% in Q1), it fared better than Disney and Warner Bros. Discovery.

A Steady Bet on Live Content

While many media giants scrambled to go all-in on streaming years ago, Fox has stayed committed to the power of live TV. That decision is now helping it stand apart as the rest of the industry adjusts to falling subscriber counts and slow profitability in streaming.

In short, Fox Corp.’s focus on live programming and a complementary, not competing, streaming plan is proving to be a smart play. It might just be the reason it’s weathering the cord-cutting era better than most.

Cate Bender, the author, is Project Coordinator of Marketing Keys