"Fox Challenges ESPN With Pursuit of Time Warner"

Emily Steel and Richard Sandomir explore Rupert Murdoch and News Corp's desire to take over Time Warner and as with most things these days, the rationale leads to live sports as the only way to advertiser's hearts and away from cord cutters.

As reader Jay explained to me this week, it's all about those sub fees and trans fees and by golly, I'm starting to believe him after reading this NY Times piece.

TV ad spending generated by sports increased nearly 50 percent to $12 billion in the United States in 2013, according to the Interpublic Group’s MagnaGlobal ad buying firm. “It is DVR-proof,” said Kevin Collins, head of sports ad buying for MagnaGlobal. “Viewers are not skipping over the commercials.”

Mr. Murdoch has long realized the value of sports. Over the years, Fox has amassed a sizable American sports footprint, buying rights to football, baseball, Nascar and the 2018 and 2022 men’s World Cup. Internationally, his businesses have long profited from a roster of international sports-rich channels in Europe, Asia and Latin America.

To date, Fox Sports 1 has not given ESPN reason for great concern. Over the last 11 months, Fox Sports 1 has averaged 88,000 male viewers 18 to 49 years old in prime time, and 122,000 people of both sexes 18 to 49 years old in prime time, compared with ESPN’s 762,000 and 1,070,000, respectively, according to Brad Adgate, director of research for Horizon Media.

Earlier this week it was revealed that Murdoch's Sky Sports may be closing in on the UK rights to The Open Championship, also possibly setting the stage for a battle over the U.S. rights when they become available after 2017.