Fox Corporation's (NASDAQ:FOXA) ambitious World Cup streaming strategy has shifted from a ratings play to a crucial test of subscriber retention. The company's Fox One service gained over 1 million new subscribers in the first week of the tournament, according to Ampere Analysis, with June nearly doubling the best previous month for sign-ups, as reported by Business Insider.
The subscriber surge was fueled by a low-cost influencer campaign. Fox paid $50,000 each to Austin Franklin and Kevin Akoto, dubbed its 'Chief World Cup Watchers,' to live in a glass box in Times Square and stream all 104 matches. The campaign generated significant organic buzz, with one clip of Norwegian fans reaching over 15 million Instagram views.
Fox One is streaming every World Cup match live in 4K, a full slate that provides day-to-day habit content. The service is priced at $19.99 per month, with a promotional offer of $19.99 total for two months, ending July 19. The 1 million promo users suggest roughly $20 million in gross billings, though this figure excludes platform fees, free trials, and potential churn.
The retention challenge is significant. With the U.S. eliminated and the final on July 19, many new subscribers may cancel. Fox is already testing retention strategies, including offers like 'buy two months, get one month free,' and using Haus to track cost-per-acquisition versus expected lifetime value, according to Business Insider.
Strong ratings have supported the push. Fox reported that 30 million viewers watched the U.S.-Belgium round of 16 match, making it the most-watched soccer broadcast in U.S. history, according to the Associated Press. The England-Mexico match averaged over 21.7 million viewers, setting a U.S. English-language record for a non-U.S. game.
Fox's financial pressures add context. The company reported $3.99 billion in revenue and $954 million in adjusted EBITDA last quarter, with advertising sales dropping to $1.56 billion from $2.04 billion a year ago, partly due to not airing the Super Bowl. Growth at Tubi and Fox One launch costs were cited as factors.
The World Cup is a test for Fox One as a direct-to-consumer play. Brian Borkowski, chief marketing officer for Fox's direct-to-consumer unit, told Business Insider, 'We landed on a gold mine.' However, the ultimate measure will be how many subscribers remain after the tournament ends.
Investor focus will be on retention metrics rather than initial hype. If cost-per-acquisition and lifetime value metrics align, the Times Square cube could prove to be a strategic acquisition test for live sports streaming, rather than just a marketing stunt.
