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News Corp. Delays Fox Biz Channel, Expects Strong Upfronts

The much-flaunted Fox Business Channel may not launch until the fall, despite earlier reports that it would be off the ground in the first half of 2007.

The news arrives as News Corp. reports a mixed second quarter - profit fell 24 percent from the prior year’s gain of $1.08 billion - due to unexpectedly soft results from the broadcast television division, writes Mediaweek.

The television division was hurt by a number of factors: MyNetwork TV’s launch was lackluster, Fox’s prime time fall line-up underdelivered and came in fourth in terms of total viewers and adults 18-49, and the 2006 World Series broadcast averaged a record low 10.1 rating and 17 share.

However, Fox is expected to bounce back in the second half, thanks to its usual success with American Idol and 24.

News Corp. president and COO Peter Chernin has told investors that the company is focusing on reversing MyNetworTV‘s fortunes by bringing on a dedicated management team under new president Greg Miedel. He points out that programming changes will take place in the middle of March.

Fox cable networks, too, have not performed as anticipated, posting only a 5 percent increase over a year ago. While the cable nets saw affiliate fee and ad revenue gains in the quarter, they were offset by increased marketing cost at FX for its new show Dirt, along with election coverage and 10th anniversary costs at Fox News.

However, the cable scatter market is still robust, though sales are coming through very close to air date, says Chernin, who believes that the current market bodes well for the upfronts.