Before Fox Sports 1 launched last year, Fox made concessions with some cable and satellite providers in order to reach 90 million homes when it turned the key to begin operations on August 17, 2013. Instead of receiving its desired per subscriber fee of about 80 cents, Fox agreed to receive lower fees based on the old Speed Channel (about 23 cents) which FS1 replaced. It was speculated that DirecTV, Dish and Time Warner Cable were the providers that insisted on the lower price instead of paying the full cost.
But as Fox Sports 1 continues operation with no end in sight, it appears that the network may win out after all.
21st Century Fox chief operating officer Chase Carey told a conference last week that Fox Sports 1 was “more than half-way there” in setting new rates (i.e. higher subscription fees) with cable and satellite. Carey said over the next year, the channel was on its way to have its fees set in stone. This means with Fox Sports 1 making more in fees, it could turn a profit sooner than expected. And if that’s the case, it puts more money in FS1’s pocket for sports rights.
So it’s all dependent on the cable and satellite providers willingness to pay more out of their pockets for Fox Sports 1, but as the next 12 months progress, it appears that they’re on its way to making money.
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