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From Super Bowl Ads to Steady Fees: What Fox’s Q3 2025 Tells Us About Running a Subscription-Based Model



On May 12, 2025, Fox Corporation shared third-quarter results that mixed solid cash generation with softer earnings, due to a big boost from Super Bowl LIX ad sales, steady growth on its Tubi streaming service, and record operating cash flow. The company’s ongoing focus on live sports, news programming, streaming advertising, and reliable affiliate fees helped it stay on course.


With operating cash flow up 92% to $1.81 billion, Fox is well-positioned to fund new projects and return capital to shareholders.


Scope and Snapshot

 Fox’s model is built around three pillars:

  • Live Sports & News Entertainment (broadcast and cable)

  • Digital/AVOD Distribution (primarily Tubi)

  • Affiliate Partnerships & Content Licensing


Q3 FY 2025 Key Results:

  • Total Revenues: $4.37 billion (↑27%)

  • Advertising Revenues: $2.04 billion (↑65%)

  • Affiliate Fee Revenues: $2.01 billion (↑3%)

  • Other Revenues: $330 million (↑20%)

  • Adjusted EBITDA: $856 million (↓4%)

  • Net Income: $354 million (↓50%)

  • Operating Cash Flow: $1.81 billion (↑92%)



Keypoint 1: Ad Sales Jump on Super Bowl LIX

Ad sales for broadcast rose 77%, and cable ads climbed 26% due to high viewership of Super Bowl LIX and strong news ratings.

TV ads added $725 million year-over-year; cable ads added $76 million.


What to expect: Similar premium ad rates for major live events and steady demand for news spots.


Major live events help drive new sign-ups and re-engagement for subscription-based bundles, proving that must-see programming can boost trial and renewal rates.


Keypoint 2: Tubi’s Streaming Ads Continue to Grow:

Tubi’s ad-supported model brought in $330 million, a 20% gain, as more viewers and advertisers joined the platform.


What to expect: Adding new shows and improving ad technology on Tubi should help it bring in even more revenue.


In ad-supported or freemium models, increased engagement directly boosts ad revenue, helping to close the value gap between free users and paid subscribers, and ultimately making the model more sustainable.


Keypoint 3: Affiliate Fees Hold Firm:

Affiliate fees edged up 3% to $2.01 billion. Small subscriber declines were offset by contractually agreed rate increases.


What to expect: Future carriage deals will likely include more fee hikes, although distributors may push back.


Stable carriage fees underscore the value of predictable recurring revenue. This is key for any subscription service aiming to forecast cash flow and plan long-term content investments.


Keypoint 4: Cash Flow Reaches New Highs:

Operating cash flow nearly doubled, rising to $1.81 billion from $941 million last year, which gives Fox room to invest and repurchase stock.


What to expect: We’ll see more share buybacks and targeted spending on sports rights and digital tools.


Strong free cash flow helps reinvestment in customer acquisition and retention initiatives, such as exclusive content or loyalty programs, without adding debt.


Keypoint 5: Ongoing Share Repurchases:

Fox bought back $250 million of Class A shares this quarter, with $650 million left in its current plan. Total buybacks so far: $6.35 billion.


What to expect: Continued buybacks should help support the stock price and lift earnings per share.


Returning capital to shareholders reflects confidence in recurring-revenue models & subscription companies often prioritize cash returns once a predictable subscriber base is established.


Conclusion

Fox’s Q3 results challenge a common assumption: that not every successful business needs to rely on direct subscriptions. They’re pulling in steady revenue without asking users to pay monthly, and that’s something lots of subscription companies overlook.

If people are coming back regularly, whether to watch a live event, stream free content, or engage with your platform, and you’re monetizing that attention well (through ads, partnerships, or licensing), you’ve still got a strong, subscription-like engine.


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