Fox Reports Better-Than-Expected Q3 Earnings, Adjusted EBITDA Up 11% YoY
"Now Streaming" is The Fly's weekly recap of the stories surrounding the biggest content streamers.PLAYING THIS WEEKEND:Among this weekend's most notable new streaming content is Paramount+TV series "Dutton Ranch," a show that serves as both spin-off and sequel to hit series "Yellowstone." Meanwhile, Disney+subscribers can catch "The Punisher: One Last Kill," a TV special in the Marvel Cinematic Universe starring Jon Bernthal. Additionally, Hulu users can watch the new season of sports documentary series "Welcome to Wrexham," which features Ryan Reynolds and Rob McElhenney.FOX RESULTS:On Monday, Foxreported better-than-expected Q3 earnings and revenue, with adjusted EBITDA for the quartere rising 11% year-over-year. Commenting on the results, Executive Chair and Chief Executive Officer Lachlan Murdoch said, "Our fiscal third quarter results once again demonstrate continued strength and momentum across our business. This strong performance, led by robust core advertising trends, underscores FOX's leadership in live programming, bolstered by continued strength at our leading free streaming service, Tubi. Against this backdrop, we are proud to be bringing the world's biggest sporting event to American homes with the FIFA Men's World Cup hosted here in North America across June and July. Meanwhile we remain steadfast in our commitment to delivering long-term shareholder value supported by our strong balance sheet."NETFLIX UPFRONT:During its "upfront" presentation to advertisers, Netflixsaid its ad-supported subscription plan reaches over 250M global monthly active viewers, up from 190M it cited this past November, Variety's Brian Steinberg reported. The streaming giant also said its ad tier will expand to 15 additional countries beginning in 2027, including Austria, Belgium, Colombia, Denmark, Indonesia, Ireland, Netherlands, New Zealand, Norway, Peru, Philippines, Poland, Sweden, Switzerland, and Thailand.Meanwhile, Netflix said it will air five NFL games next season, as opposed to just two Christmas Day games it has broadcasted the past two seasons. The streaming giant will air the season opener between the San Francisco 49ers and Los Angeles Rams in Australia, a Green Bay Packers vs Rams contest the night before Thanksgiving, two Christmas Day games, and a week 18 game in January. Netflix will also broadcast the NFL Honors presentation. According to Variety, the new schedule will be in place through the 2029-2030 NFL season.Following the news, JPMorgan reiterated an Overweight rating on Netflix with a $118 price target, with the firm saying it is positive on Netflix's reach, content strategy, and improving advertising technology. The company's upfront announcements demonstrate progress towards building a scaled advertising strategy and highlight the view of Netflix becoming "Global TV," the analyst tells investors in a research note.Meanwhile, Raymond James reiterated a Market Perform rating on Netflix, saying it came away from the company's Upfronts presentation and Q&A session with several key takeaways. Of note, the firm said the engagement debate is not likely to be settled anytime soon, but Netflix likes its chances with its 2026 content slate, and that ads scaling is solid, with the building blocks in place for market expansion while the Netflix Ads Suite adds more tools. Additionally, the company's willingness to innovate on standard TV ad experiences should be a positive over time, but usually change in the ad industry requires a bit of convincing among buyers, the analyst tells investors in a research note.INKUBATOR:Netflix has been working on a new internal studio known as INKubator that seeks to use generative AI to create short-form animated content, with thee company hiring for a wide variety of roles at the studio, including producers, software engineers, and CG artists, Lowpass' Janko Roettgers reported, citing a number of recently published job listings. The company has not yet publicly announced plans for INKubator, though a handful of LinkedIn profiles indicate the studio quietly launched in March, the author noted.NETFLIX/TEXAS:Texas Attorney General Ken Paxton sued Netflix for "spying on Texans, including children, and collecting users' data without their knowledge or consent." Paxton said, "For years, Netflix represented to consumers that it did not collect or share extensive user data. In reality, Netflix is a logging company that records and monetizes billions of behavioral events-and occasionally streams movies. Netflix uses intentional engineering to track and log users' viewing habits, preferences, devices, household networks, application usage, and other sensitive behavioral data. Every interaction on the platform became a data point revealing information about the user. This tracking applied to not only adults' accounts, but also kids' profiles." The lawsuit seeks to stop the collection and disclosure of user data, require Netflix to disable autoplay by default on kid's profiles, and secure other injunctive relief and civil penalties.FCC/DISNEY:FCC Commissioner Anna Gomez sent a letter to Disney CEO Josh D'Amaro saying that the media giant has been "made a target" by the commission. "I am writing because The Walt Disney Company has once again been made a target by this FCC, and the record of its actions against your company demands a clear accounting," the letter reads. "What Disney and ABC are facing is not a series of coincidental regulatory actions but a sustained, coordinated campaign of censorship and control, carried out through the weaponization of the FCC's authority as a federal regulator and aimed at pressuring a free and independent press and all media into submission. You are not the first target of this campaign, and you will not be the last."WARNER BROS./'UNBREAKABLE':Warner Bros. Discoveryannounced "Unbreakable," a suite of new cross-platform ad solutions from Warner Bros. Discovery Advertising that it says are designed to "connect brands with audiences through seamless, participatory experiences." The company added: "This fan-first approach is designed to move fluidly between linear television, digital environments, and social platforms, ensuring that brand experiences remain consistent and impactful regardless of where fans engage."STOCK PLAYS:Other publicly traded companies in the space include Comcast, Apple, Amazon, FuboTV, AMC Networks, and Roku.
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Paramount's Warner Bros. Acquisition Faces Regulatory Scrutiny
- Regulatory Warning: U.S. and European lawmakers cautioned Paramount CEO David Ellison that the proposed acquisition of Warner Bros. Discovery will undergo rigorous scrutiny, despite preliminary shareholder approval, necessitating compliance with EU merger regulations.
- Competition Concerns: Lawmakers expressed that the merger could substantially lessen competition across interconnected markets, including film and television production, content licensing, and streaming services, thereby reducing consumer choice and increasing prices, highlighting significant concerns about the transaction's impact.
- Funding Structure Issues: Paramount's plan to acquire Warner Bros. at $31 per share includes a $7 billion breakup fee, with nearly $24 billion financed by sovereign wealth funds from Gulf states, raising alarms about national security and editorial independence due to foreign influence.
- Call for Transparent Review: Lawmakers demanded a rigorous and transparent review process for the merger, asserting that public trust requires compliance with regulatory standards, and warned that any claims suggesting the transaction has cleared regulatory hurdles are misleading.
BET Greenlights New Comedy Series 'LOT PATROL'
- Series Launch: BET has officially greenlit the comedy series 'LOT PATROL' from Manny Halley Productions, which showcases the chaos and humor of Hollywood through a mismatched squad of eccentric security guards, expected to attract a wide audience.
- Cast Lineup: The series stars well-known actors such as DeRay Davis and Carl Anthony Payne, combining diverse characters and comedic styles to reveal the real stories behind Hollywood from their perspectives.
- Cultural Foundation: The show emphasizes BET's core values of community, culture, and connection, highlighting the struggles and dreams of marginalized individuals in the chaotic Hollywood environment, carrying significant social implications.
- Production Team: Directed by Erik White with Ernest L. Dancy and Manny Halley as chief writers, the team's extensive experience is set to infuse the series with unique perspectives and creativity, enhancing the viewer's experience.
BET Greenlights New Comedy Series 'LOT PATROL'
- Series Launch: BET has greenlit a new comedy series titled 'LOT PATROL', which humorously depicts the chaos behind Hollywood through a mismatched squad of eccentric security guards, likely to attract a broad audience.
- Star Cast: Featuring well-known actors like DeRay Davis and Carl Anthony Payne, the series combines their humor and personalities to enhance viewer engagement and enjoyment.
- Cultural Foundation: The show emphasizes BET's core values of community, culture, and connection, showcasing the real lives and challenges of those working in Hollywood, which carries significant social implications.
- Production Team: Directed by Erik White with Manny Halley and Ernest L. Dancy as chief writers, the series aims to maintain high creative and execution standards, thereby enhancing its competitive edge in the market.
Domestic Box Office Soars with Summer Blockbusters on the Horizon
- Significant Box Office Growth: The domestic box office reached $161.2 million over the weekend, marking an almost 88% increase from the same period in 2025, indicating a strong demand for films and a promising recovery for the industry.
- Year-to-Date Performance: So far in 2026, ticket sales have totaled $3.02 billion, reflecting a 16% increase from last year, suggesting a rapid return of audiences to theaters and driving overall market recovery.
- Strong New Releases: Disney's 'The Devil Wears Prada 2' grossed $41.6 million in its second week, while Warner Bros.' 'Mortal Kombat II' debuted with $38.5 million, showcasing the appeal of new films and market vitality.
- Optimistic Future Outlook: Upcoming blockbusters like 'Star Wars: The Mandalorian and Grogu' and 'Toy Story 5' are expected to further boost box office revenues, with industry analysts predicting a surge in audience attendance during the summer season, potentially pushing total box office earnings beyond $10 billion.
Summer Box Office Off to a Strong Start
- Significant Box Office Growth: Domestic ticket sales topped $161 million over the weekend, marking an almost 88% increase compared to the same three-day period in 2025, indicating a strong audience interest and signaling a recovery in the summer movie market.
- Strong Performers: Disney's 'The Devil Wears Prada 2' grossed $41.6 million in its second week, while Warner Bros.' 'Mortal Kombat II' debuted with $38.5 million, showcasing the strong appeal and competitive positioning of new releases in the market.
- Stable Holdover Films: 'The Super Mario Galaxy Movie' and 'Project Hail Mary' demonstrated impressive performance in their sixth and eighth weeks, with ticket sales declining only 45% and 23% respectively, reflecting strong word-of-mouth and sustained audience interest.
- Optimistic Annual Box Office Outlook: As of Sunday, the 2026 box office has generated $3.02 billion, a 16% increase from the same period last year, and although still below 2019's $3.8 billion, the upcoming blockbuster releases are expected to further boost ticket sales.
Democrats Demand Disclosure on Media Merger Influence
- Media Merger Scrutiny: Two U.S. House Democrats have requested Paramount Skydance CEO David Ellison to disclose whether he offered to alter CNN's coverage of President Trump in exchange for merger approval with Warner Brothers Discovery, highlighting significant concerns over media merger transparency.
- Political Influence Concerns: Representatives Jamie Raskin and Frank Pallone noted in their letter that Trump may expect favorable press coverage as a result of the merger, raising serious concerns about media independence and the potential for increased political bias.
- Concentration of Power Risk: The letter warns that a merger between Paramount Skydance and Warner would dangerously concentrate media power within a single conglomerate, potentially stifling independent voices and affecting the public's access to diverse information, thereby impacting the democratic process.
- Increased Regulatory Calls: This incident has sparked calls for stricter regulatory scrutiny of media mergers, emphasizing the need for robust review mechanisms to prevent excessive concentration of media power and the abuse of political influence, ensuring fairness and independence in news reporting.
Paramount's Warner Bros. Acquisition Faces Regulatory Scrutiny
- Regulatory Warning: U.S. and European lawmakers cautioned Paramount CEO David Ellison that the proposed acquisition of Warner Bros. Discovery will undergo rigorous scrutiny, despite preliminary shareholder approval, necessitating compliance with EU merger regulations.
- Competition Concerns: Lawmakers expressed that the merger could substantially lessen competition across interconnected markets, including film and television production, content licensing, and streaming services, thereby reducing consumer choice and increasing prices, highlighting significant concerns about the transaction's impact.
- Funding Structure Issues: Paramount's plan to acquire Warner Bros. at $31 per share includes a $7 billion breakup fee, with nearly $24 billion financed by sovereign wealth funds from Gulf states, raising alarms about national security and editorial independence due to foreign influence.
- Call for Transparent Review: Lawmakers demanded a rigorous and transparent review process for the merger, asserting that public trust requires compliance with regulatory standards, and warned that any claims suggesting the transaction has cleared regulatory hurdles are misleading.
BET Greenlights New Comedy Series 'LOT PATROL'
- Series Launch: BET has officially greenlit the comedy series 'LOT PATROL' from Manny Halley Productions, which showcases the chaos and humor of Hollywood through a mismatched squad of eccentric security guards, expected to attract a wide audience.
- Cast Lineup: The series stars well-known actors such as DeRay Davis and Carl Anthony Payne, combining diverse characters and comedic styles to reveal the real stories behind Hollywood from their perspectives.
- Cultural Foundation: The show emphasizes BET's core values of community, culture, and connection, highlighting the struggles and dreams of marginalized individuals in the chaotic Hollywood environment, carrying significant social implications.
- Production Team: Directed by Erik White with Ernest L. Dancy and Manny Halley as chief writers, the team's extensive experience is set to infuse the series with unique perspectives and creativity, enhancing the viewer's experience.
BET Greenlights New Comedy Series 'LOT PATROL'
- Series Launch: BET has greenlit a new comedy series titled 'LOT PATROL', which humorously depicts the chaos behind Hollywood through a mismatched squad of eccentric security guards, likely to attract a broad audience.
- Star Cast: Featuring well-known actors like DeRay Davis and Carl Anthony Payne, the series combines their humor and personalities to enhance viewer engagement and enjoyment.
- Cultural Foundation: The show emphasizes BET's core values of community, culture, and connection, showcasing the real lives and challenges of those working in Hollywood, which carries significant social implications.
- Production Team: Directed by Erik White with Manny Halley and Ernest L. Dancy as chief writers, the series aims to maintain high creative and execution standards, thereby enhancing its competitive edge in the market.
Domestic Box Office Soars with Summer Blockbusters on the Horizon
- Significant Box Office Growth: The domestic box office reached $161.2 million over the weekend, marking an almost 88% increase from the same period in 2025, indicating a strong demand for films and a promising recovery for the industry.
- Year-to-Date Performance: So far in 2026, ticket sales have totaled $3.02 billion, reflecting a 16% increase from last year, suggesting a rapid return of audiences to theaters and driving overall market recovery.
- Strong New Releases: Disney's 'The Devil Wears Prada 2' grossed $41.6 million in its second week, while Warner Bros.' 'Mortal Kombat II' debuted with $38.5 million, showcasing the appeal of new films and market vitality.
- Optimistic Future Outlook: Upcoming blockbusters like 'Star Wars: The Mandalorian and Grogu' and 'Toy Story 5' are expected to further boost box office revenues, with industry analysts predicting a surge in audience attendance during the summer season, potentially pushing total box office earnings beyond $10 billion.
Summer Box Office Off to a Strong Start
- Significant Box Office Growth: Domestic ticket sales topped $161 million over the weekend, marking an almost 88% increase compared to the same three-day period in 2025, indicating a strong audience interest and signaling a recovery in the summer movie market.
- Strong Performers: Disney's 'The Devil Wears Prada 2' grossed $41.6 million in its second week, while Warner Bros.' 'Mortal Kombat II' debuted with $38.5 million, showcasing the strong appeal and competitive positioning of new releases in the market.
- Stable Holdover Films: 'The Super Mario Galaxy Movie' and 'Project Hail Mary' demonstrated impressive performance in their sixth and eighth weeks, with ticket sales declining only 45% and 23% respectively, reflecting strong word-of-mouth and sustained audience interest.
- Optimistic Annual Box Office Outlook: As of Sunday, the 2026 box office has generated $3.02 billion, a 16% increase from the same period last year, and although still below 2019's $3.8 billion, the upcoming blockbuster releases are expected to further boost ticket sales.
Democrats Demand Disclosure on Media Merger Influence
- Media Merger Scrutiny: Two U.S. House Democrats have requested Paramount Skydance CEO David Ellison to disclose whether he offered to alter CNN's coverage of President Trump in exchange for merger approval with Warner Brothers Discovery, highlighting significant concerns over media merger transparency.
- Political Influence Concerns: Representatives Jamie Raskin and Frank Pallone noted in their letter that Trump may expect favorable press coverage as a result of the merger, raising serious concerns about media independence and the potential for increased political bias.
- Concentration of Power Risk: The letter warns that a merger between Paramount Skydance and Warner would dangerously concentrate media power within a single conglomerate, potentially stifling independent voices and affecting the public's access to diverse information, thereby impacting the democratic process.
- Increased Regulatory Calls: This incident has sparked calls for stricter regulatory scrutiny of media mergers, emphasizing the need for robust review mechanisms to prevent excessive concentration of media power and the abuse of political influence, ensuring fairness and independence in news reporting.
