Fox CEO Lachlan Murdoch says his company’s deal to buy Red Seat Ventures, the home of several conservative podcasters such as Megyn Kelly and Tucker Carlson, is more than just a hedge against the quickly graying audiences of cable news. Murdoch says Red Seat’s position as an ad sales organization for independent shows appeals to Fox as it looks to leverage content already under its tent into podcasting.
“We’re excited about that, because we’ll be able to put our own talent through that system,” Murdoch said Monday at the Morgan Stanley Technology, Media & Telecom Conference. “And what that gives us is a significant position with this new podcasting design platform, so we’re excited about that,” he told investors.
An analysis released last week shows the news podcast audience is nearly identical to the U.S. population, unlike cable news networks. Sounds Profitable said the average age of the news podcast listener is 47. That is well below the 69 average for Fox News Channel.
Fox already has podcasts under its umbrella. Fox News Media publishes a few dozen shows from its Fox News, Fox Business, Fox Sports, Fox Weather and OutKick brands.
Red Seat Ventures says its creators generate more than 200 million monthly downloads and views with both podcasts and videos part of its portfolio. Among the other conservative commentators it works with are Bill O’Reilly, Dr. Phil McGraw, Piers Morgan, Dana Loesch, Sean Spicer and Eric Bolling. Red Seat has also expanded into true crime with creators Nancy Grace and “To Catch a Predator” veteran Chris Hansen. Red Seat helps the shows develop podcasts and other content, then distributes the shows and monetizes the advertising. It also helps with the development of video and live events.
Fox says Red Seat Ventures will operate as a standalone entity within its digital and streaming-focused Tubi Media Group. The Red Seat Ventures executive team, led by founding partners Chris Balfe and Kevin Balfe, will continue to lead and operate the business, with Paul Cheesbrough, CEO of Tubi Media Group, assuming the role of Chairman, Red Seat Ventures.
During the Morgan Stanley conference Monday, Murdoch said Fox plans to launch a new video streaming platform this fall that would pull content from Fox News and Fox Sports. He predicted it would have about five million subscribers for the service within five years, but stressed that the aim is to not cannibalize broadcast and cable TV properties. He also said the advertising market has been good for the company, with dozens of new advertisers coming onboard Fox News since the election. Murdoch said he didn’t see the election results as a swing toward the channel’s conversative message, but rather a confirmation of the network’s focus.
“The election results have sort of validated Fox News’s position, and we’ve seen that most strikingly in our advertising revenues,” Murdoch said. “We’ve had over 100 new clients since the election. I think because of the election results, many advertisers have sort of rethought their positioning in this country and understand that the Fox News viewer really does represent Middle America, and they’re responding with their checkbooks.”
Murdoch is no stranger to the audio business. In 2005, he founded Illyria Pty, a private investment company that in 2009 acquired 50% of DMG Radio, a network of radio stations in Australia, which later was renamed NOVA Entertainment. Murdoch became its chairman, and NOVA grew exponentially, nearly doubling in value during the first three years. In 2012, Illyria purchased the remaining 50%, and in the years since, NOVA has become a leading network of FM stations in the country.
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