Fox Business Network is a flop -- for now.The News Corp. (NYSE: NWS)-owned cable channel is averaging just 8,000 viewers during the day and 20,000 during prime time, well under the 284,000 viewers who watch CNBC during the day and 191,000 who watch the General Electric Co. (NYSE: GE) network during prime time, according to The Washington Post.
Basically, Fox could attract as big of an audience yelling the news through a megaphone in the middle of New York City's Time Square. The poor performance is not a shock. CNBC has a huge advantage in terms of brand recognition and getting people to change their media habits is difficult even under the best of circumstances. Moreover, during periods of economic uncertainty people want to stick with tried and true sources of information rather than something new.
By the way, I am rooting for Fox to succeed. CNBC could use a kick in the pants. The network is so full of itself sometimes that it's painful to watch. Fox, though, has yet to knock CNBC off its high horse.
The launch of Fox Business Network came last year just as confidence in the underlying economy began to buckle. Advertisers, particularly those in financial services, are likely going to cut back on their advertising spending. They probably are reducing their spending on CNBC and shifting their resources online. If you want proof of this, check out some of the cheesy spots that run on the network during the daytime.
"The Fox numbers are a modest improvement over the ratings that leaked late last fall, which had the network averaging 6,000 daytime viewers and 15,000 at night," the paper said.
CNBC management, though, should not get too cocky. News Corp honcho Rupert Murdoch is a patient man. He is willing to spend millions of dollars and wait years to get a return on his investment in Fox Business Network. The channel, like the New York Post newspaper, exists for Murdoch to prove that he can stick it to the mainstream media.
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Reader Comments (Page 1 of 1)
7-29-2008 @ 1:50PM
Mike Rath said...
CNBC is sometimes tough to take, but FOX is unwatchable...I've gotten tired of 1 minute sound bites, not allowing fruitful discussion because of time constraints, constant shouting over one another until nothing can be heard and personalities who think they walk on water...
7-29-2008 @ 2:01PM
David said...
I think it has to do with availability more than anything. At this time, at least in my area, ATT U-Verse does not have Fox Business in U100 package or in HD package, so I don't even get it. They do have CNBC in both. I would probably watch it if they offered it. (I also wish they'd offer Fox News in HD.) It took Fox News a little while to get its feet too. Of course, the stock market isn't going up and up and up like in the late 90s either. CNBC seemed to find its viewership during that time.
7-29-2008 @ 3:33PM
Mike said...
Availability is the biggest problem. It's really supply and demand mixed with chicken and the egg. :)
Add to that a format that just doesn't work and you can see why it's doing so poorly. Fox News wasn't exactly a fast starter either. It will take some time for the network to figure out what works.
7-29-2008 @ 4:25PM
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7-30-2008 @ 10:22AM
Jerry said...
I like how its called a flop. You guys said it as well it has EVERYTHING to do with availability. I had both Uverse and now Time Warner (not by choice) and have yet to even see the FoxBusiness channel. Personally I would like to see another perspective other than all the doom, gloom and sky is falling CNBC has always reported (not just as of late). How about some real journalism and get to the root cause of why I have to shell out more money to get the channel. Maybe even have an article titled CNBC uses predatory tactics...
7-30-2008 @ 11:56PM
Bette said...
my cable company doesn't carry FOX Business so even tho I ALWAYS watch FOX News I have never seen their business channel...if I could watch it I would watch it....actually I'd like to chose and pay for ONLY the cable channels I want....want the cable providers to stop lumping so many channels I don't want into their packages....
7-30-2008 @ 6:16PM
tr said...
I watch it - hard to believe that I would be one of only 8,000 who do. They do have a measured perspective which I prefer.
7-31-2008 @ 7:04AM
jane said...
There is lot of competition nowadays.... also these people need to improve their quality of programs and come up with some new innovative concept.... also brand marketing is important...
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7-31-2008 @ 5:34PM
Jack Meoff said...
If it weren't for such big breasted on-air personalities such as Rebecca Gomez, Tracy Byrnes, and Liz Claman, NOBODY would watch the Fox Business Channel!
9-19-2008 @ 5:55AM
david said...
I'm switching from dish network to Direct TV for Dave Ramsey on this network.