smh.com.au
Murdoch Family Feud Fuels Success of Fox and News Corp
Rupert Murdoch's attempt to alter his family trust to prevent three children from inheriting control of Fox Corporation and News Corp failed, yet both companies are flourishing despite challenges in their respective industries, leaving investors optimistic about their future prospects.
- What role did the 2019 sale of Fox's general-entertainment assets play in its current success?
- Fox's success is linked to its content strategy. By selling its general entertainment assets and concentrating on news and sports, it capitalized on the enduring popularity of these genres on traditional television, while its competitors struggled with the transition to streaming. This strategic decision, combined with the return of Donald Trump boosting Fox News viewership, has driven significant revenue growth.
- What are the potential impacts of the Murdoch family's succession crisis on Fox Corporation's future?
- Fox's future prospects remain strong due to its stable audience in news and sports, its successful foray into ad-supported streaming with Tubi, and potential for acquisition. However, the ongoing family feud and potential leadership changes pose a risk to this success. The company's agility and lack of legacy linear channels give it an advantage in navigating the changing media landscape.
- How has Fox Corporation managed to thrive in the declining linear television market while others struggle?
- Despite a decline in traditional media, Fox Corporation's market value has soared to \$24 billion due to its strategic shift towards news and sports programming, which remain popular on linear TV, unlike general entertainment which has migrated to streaming services. This focus allowed Fox to avoid the heavy losses incurred by competitors in the streaming wars.
Cognitive Concepts
Framing Bias
The article frames the Murdoch family feud as a central and almost entertaining narrative, which might overshadow the more complex business strategies and market forces driving the success of Fox and News Corp. The headline and opening paragraphs emphasize the drama of the probate court case, setting a tone that prioritizes the family conflict over a purely business-oriented analysis. This framing could lead readers to underestimate the strategic decisions that have contributed to the companies' financial health and overestimate the role of the family feud.
Language Bias
The language used to describe the Murdoch family and their feud is often dramatic and sensationalistic. Phrases such as "morbid entertainment," "high-stakes legal maneuver," and "bloodbath" create a tone that is more engaging and entertaining than purely informative or analytical. While these phrases are not explicitly biased, they color the narrative and could influence the reader's perception of the situation. More neutral language, such as "legal dispute," "significant business decision," and "significant market changes" would better convey the information.
Bias by Omission
The article focuses heavily on the Murdoch family feud and its impact on the success of Fox and News Corp, but it omits discussion of other potential factors contributing to the companies' financial performance. While acknowledging the family drama is a significant narrative element, the article could benefit from exploring broader industry trends and economic conditions that may also play a role in the companies' success. For example, the article mentions the decline of linear television, but doesn't delve into the specific strategies Fox employed to navigate this shift successfully. Similarly, the article highlights the success of Dow Jones and REA Group, but doesn't analyze the factors beyond the Murdoch family's involvement that have driven these companies' growth.
False Dichotomy
The article presents a somewhat simplistic view of the relationship between the Murdoch family feud and the companies' financial success, potentially creating a false dichotomy. While the article highlights the feud as a prominent factor, it doesn't fully explore the possibility that other factors are equally or more important. It subtly suggests that the feud itself is a *cause* of investor enthusiasm, but this might be an oversimplification. The uncertainty surrounding succession could be viewed as risky, rather than exciting for investors.
Gender Bias
The article focuses primarily on the actions and decisions of Rupert and Lachlan Murdoch, with less attention to the roles and perspectives of the other family members, especially the three daughters. While the article mentions their opposition to Lachlan's leadership, it doesn't delve into their individual business acumen or potential contributions to the companies' success. This could be interpreted as a subtle gender bias.
Sustainable Development Goals
The article highlights the success of Fox and News Corp, demonstrating growth and profitability in media sectors. This contributes positively to decent work and economic growth by maintaining employment and generating revenue within these industries. The success of REA Group, a significant asset of News Corp, further strengthens this positive impact.