Cable News in Decline: Here's Why Time is Running Out for Fox News

by Nomad

If the capitalist model is based on supply and demand, what will happen when there is nobody left to buy your product? That the situation facing Fox News.

Fox News, as one writer noted,  has built its success by "selling a conservative political product to an older audience."

The average age of the audience is over 68 years old. That's average, mind you. Not only are the Fox News viewers the oldest, they are also  the most misinformed. They are also likely to remain that way the longer they continue to watch. 

In many ways, tuning into Fox News is a lifestyle choice. The average viewer of the channel tends not to have an active agenda and can devote much more time watching television news. On the other hand, a younger audience would more likely spend more time on the Internet or engaging with people socially.

Frank Rich, writing for New York Magazine, called Fox News a politically conservative 'retirement community.' When looking at the long-term viability of the network, that's something to consider.

The Slow Sinking of the Viewership

Last spring it was reported that the ratings for the cable news channel for the ideal consumer (25-54 age group) is at its lowest point in 12 years. As one blogger pointed out:

The average age of Bill O'Reilly's audience is a shocking 72.1 years old. Well, Megyn Kelly (perhaps because of that hip "y" in her first name) has brought that figure all the way down to 71.7 years old. That's a decrease of 0.4 years—almost 5 months younger! At this rate, they should make it to that prime 25-54 demographic some time in the year 2525. (If man is still alive!)

Programming executives at the network must be scrambling for solutions. There was a recent shake-up in which Megyn Kelly replaced Sean Hannity in the prime time slot. 

But if they thought the Megyn Kelly would be the way to attract a younger audience, then the problem of who needs to be replaced goes much deeper than just anchors. 

All that programming sleight of hand did was make the old men salivate from the heady combination of sensational looks, perkiness, and mean-girl aggression.

As the blogger noted: young people are not going to tune in given that they are just going to be fed the same stream of lies, distortions, and evasions no matter who the talking head might be. 

So, the real question is: 

What happens when there aren’t enough young people tuning in to replace the elderly audience?

Investor Revolt at News Corp: Will the Murdoch Dynasty be Dethroned?

by Nomad

After NewsCorp investors staged a revolt at the annual shareholders meeting last week, CEO and founder Rupert Murdoch barely managed to retain control over his company.
The source of the dissatisfaction revolves around the structure of the company, and the Murdoch family's ability to lead the company.

If reports are accurate, things apparently got hot and heavy at a recent News Corp shareholders meeting last week. According to an article in  The Sidney Morning Herald, Rupert Murdoch just barely survived a  revolt at the annual meeting of investors. At issue, was the Murdoch family control of the company, which sparked widespread displeasure among a large number of stockholders.

The company structure allows the Murdoch family to control around 40 per cent of the company's vote while actually owning 14 per cent of News Corp. In this way, they have been able to keep an iron grip on the company. That has,  as the article notes, lead "to accusations it is run more like a family fiefdom than a conventional public company." 

Furthermore, some investors charge that such a structure provides Murdoch family with significant control of News Corp while passing the risks onto the other investors. 
One investors at the meeting called it "“fundamentally undemocratic."

"This kind of governing structure may be exactly what we'd expect in Cuba or North Korea, but it is at odds with good governance practices here," Bill Dempsey, chief financial officer of the New York-based Nathan Cummings Foundation, told Mr Murdoch at Friday's meeting

Shareholders proposed that the company's controversial dual-class voting structure be reformed. They proposed scrapping the present structure and replacing it with a one share, one vote system. Although the motion was narrowly defeated, it was a sign that all is not well behind the ramparts of the News Corp fortress.

Notably, even one of the companies key investor, the Saudi Prince Alwaleed bin Talal, (worth an estimated $27 billion) also voted in favor of restructuring the company. It marked the first time in 17 years that Al-Waleed, News Corp's second largest single investor, has voted in opposition of Murdoch.