Rupert Murdoch announced yesterday that the much-anticipated Fox Business Channel will launch in Q4 2007. The "business-friendly" channel will go head-to-head with General Electric's CNBC. News Corp. will distribute the channel to 30 million homes through arrangements with Time Warner, Comcast, Charter Communications and DirectTV. The channel will be run by Roger Ailes, chairman and CEO of Fox News. Since the shuttering of CNNfn in 2004, CNBC has had only Bloomberg Television as a competitor in cable business news. Media analysts remain to be convinced whether the market wants three 24-hour business channels, although the enormously successful Fox TV, which debuted in 1985 to compete with ABC, NBC and CBS, was initially met with similar doubts. Fox News fixture Neil Cavuto will be responsible for news coverage at the new channel. In related news, Mr. Murdoch stated that News Corp. will now turn its attention to providing TV content to be broadcast on the screens of mobile phones.
Sources: New York Times, MarketWatch, Reuters, Red Herring, Press release
Commentary: CNBC Stars Could Hit the Jackpot On New Fox Business Channel, Time Warner Cable Agrees To Carry Future Fox Business Channel, Fox Business Channel Ready For Action in 2007
Stocks/ETFs to watch: News Corp. (NASDAQ:NWS), General Electric (NYSE:GE), Comcast (NASDAQ:CMCSA), Liberty Media (LINTA), DIRECTV Group (DTV), Time Warner Inc. (NYSE:TWX). ETFs: PowerShares Dynamic Media Portfolio (NYSEARCA:PBS), iShares Dow Jones US Consumer Services (NYSEARCA:IYC), PowerShares Dynamic Large Cap Growth (NYSEARCA:PWB), Vanguard Consumer Discretionary ETF (NYSEARCA:VCR), Consumer Discretionary SPDR (NYSEARCA:XLY)
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