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Business Wars: Fox News vs CNN | Riot Act | Episode 4 Summary
Episode Overview In this episode of *Business Wars*, titled "Fox News vs CNN | Riot Act | 4", the narrative focuses on the intense rivalry between CNN and Fox News during a pivotal time in American media and politics, specifically around the 2016 presidential election and the years that followed. The episode highlights CNN's strategies to recover from its tumultuous relationship with the Trump administration and Fox News’s efforts to dominate election coverage.
Key Themes and Concepts
CNN's Comeback Strategy
- Conflict with Trump:
- CNN capitalizes on President Trump's hostile rhetoric towards the network, labeling it "fake news".
- Trump’s preference for Fox News boosts CNN's ratings as viewers flock to see how CNN responds to his attacks.
- Jeff Zucker's Leadership:
- Zucker, as the chief of CNN, is depicted as hands-on and willing to engage in confrontational journalism to boost ratings.
- The strategy involves high-profile interviews, such as Jake Tapper's contentious exchange with Kellyanne Conway, which reinforces CNN's brand as a battleground for political discourse.
- Shift in Audience Perception:
- CNN transforms its identity from a neutral news source to a more controversial player, effectively polarizing its audience as ratings surge.
- The episode notes that CNN's ratings soared to unprecedented levels, making 2016 its best earnings year.
Fox News's Election Coverage Strategy
- Focus on Early Calls:
- Fox News seeks to establish dominance in election coverage by investing in a new exit poll strategy to make quicker calls than competitors.
- This culminates in a significant moment where Fox News successfully predicts the Democratic takeover of the House before other networks.
- Ratings vs Audience Sentiment:
- Despite accurate early calls, Fox faces backlash from its core audience when the results contradict their expectations, reflecting a conflict between journalistic integrity and audience loyalty.
The Stakes of Election Night
- November 2020 Election:
- The episode details the dramatic events on election night, particularly Fox News's pivotal call of Arizona for Biden, which leads to a significant viewer backlash from Trump supporters.
- The internal conflict at Fox News arises as pro-Trump commentators and the administration pressure the network to retract its call.
Fallout and Transformation
- Shift in Viewership:
- Following its controversial election coverage, Fox News experiences viewer defection to alternative news sources like Newsmax, and faces credibility challenges as it grapples with the fallout of its reporting decisions.
- Legal and Corporate Challenges:
- The aftermath of the election leads to legal troubles for Fox News, including a major lawsuit from Dominion Voting Systems, which they ultimately settle for $800 million.
CNN's Struggles and Future Plans
- Launch of CNN+:
- Under new corporate ownership, CNN attempts to pivot towards digital streaming with the launch of CNN+.
- Despite initial subscriber interest, the service fails to sustain momentum and is shut down shortly after its launch, further illustrating CNN's struggle to adapt in a changing media landscape.
Overall Implications
- The competitive landscape of cable news is portrayed as a battlefield where ratings, viewer loyalty, and political affiliations shape the strategies of networks.
- The episode concludes with a reflection on how the battle for viewers affects journalistic practices, audience engagement, and the financial stability of media organizations.
Key Takeaways
- The rivalry between CNN and Fox News exemplifies the broader conflict in media where opinion and sensationalism often trump traditional journalism.
- The dynamics of audience engagement are intricate, with viewer loyalty heavily influenced by political sentiments and network strategies.
- Legal implications and corporate mergers play crucial roles in shaping the future of media outlets, as seen with the struggles of CNN and the pressures faced by Fox News.
Conclusion This episode of *Business Wars* encapsulates the tumultuous and often contentious landscape of American news media during a critical political period. The fierce competition between CNN and Fox News is emblematic of larger trends in media consumption, journalistic integrity, and the impact of political polarization on viewer loyalty and engagement.
Written by AI. May contain mistakes. Listen to the episode to check what was said.
Transcript
Automatic transcript. May contain errors.0:08February 2017, CNN Studio in Washington, D. A producer huddles before a huge control panel. The wall in front of him is covered with dozens of screens, all showing different live camera feeds. One producer peers at the feed from the White House South Lawn. In the shot is Kellyanne Conway, a blonde-haired senior advisor to the president. She's wearing a cream-colored suit and looking confident about the verbal jousting that's about to begin. Donald Trump became president 18 days ago, and he's at war with CNN. He calls it fake news and primarily gives interviews to Fox News. But now CNN anchor Jake Tapper's got a chance to tackle Conway on her boss's anti-CNN stance.
0:56The producer narrows his eyes. Do we have powder? She looks shiny. A short, solid man with a bald head moves in from behind the producer. He's CNN chief Jeff Zucker. Previous CNN bosses didn't tend to get involved in editorial decisions. But Zucker's hands-on and chasing maximum ratings. Ah, she's fine. Zucker and Trump go way back. At NBC, Zucker made Trump the star of The Apprentice. So when Trump began his presidential run, Zucker saw the ratings potential before CNN's challengers did. He put Trump on CNN eight times more often than his main rival for the Republican nomination. Now, Trump is president.
1:40And CNN's primetime ratings are up 70 % in a year. Tapper's interview with Conway starts. The producer splits the screen so Tapper and Conway are seen side by side. Tapper brings up Trump's latest claim, that many terror attacks go unreported. After he said that, the White House released a list of the attacks that he was supposedly referring to as, in his words, not even being reported. I want to put up some footage of CNN reporters covering the attacks on that list. The producer rolls tape, showing CNN reports on multiple terrorist attacks, then hits a button. The on-screen headline switches to, CNN extensively covered many attacks on WH list.
2:24Kellyanne, CNN and other media organizations cover terrorism around the world all the time. Saying that we don't cover terrorism, that's just false. Zucker directs the producer. Keep them both on screen. I want Tapper's reactions. On the screen showing the images being broadcast, Tapper looks skeptical as Conway counters that Trump's point was that terrorism is being downplayed. Zucker isn't worried about crossing swords with the White House. CNN's own research says the fight plays well for Trump and for CNN. The president's attacks change few minds. And those who trusted CNN still trusted. Those who didn't still don't.
3:05But Trump's criticism does bolster those opinions. People who disliked CNN now hate it. People who liked it now love it. And these stronger feelings towards the brand are boosting ratings. CNN used to be seen by some as milquetoast, a middle-of-the-road alternative to Fox News' conservative bombast and the liberal outrage of MSNBC. Now, CNN is a dividing line in an America where people on both sides are moving to political extremes. And that's helped make 2016 CNN's best earnings year ever. As the interview blasts past its allotted six minutes, the producer turns to Zucker. Okay, ad break's due in one minute.
3:52Burn the commercial. She wants to talk. Keep it going. Zucker then moves to bring the questioning back to Trump versus CNN. Tell Jake to ask her if CNN's fake news. Moments later, Tapper relays the question. Are we fake news, Kellyanne? Is CNN fake news? No, I don't think CNN is fake news. Zucker smiles. It's enough to keep the Trump versus CNN soap opera rattling on to the benefit of both sides. But while Zucker's using reality TV techniques to attract viewers, Fox News is readying a new tactic. One designed to put the competition on the back foot when Trump comes up for re-election.
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6:36On the last episode, Roger Rails used the war on terror to catapult Fox News ahead of CNN. But then news broke about how he tried pressuring female employees into having sex with him to help and protect their careers. and Rupert Murdoch fired him. Now CNN's mounting a comeback through its clashes with President Donald Trump. But it's still got a long way to go to catch up with Fox News. And right now, Fox News is on a mission to own election coverage. This is Episode 4, Riot Act.
7:17It's November 6, 2018, and the next two years of the Trump presidency hang in the balance. Fox News alert. It's decision day. In America, control of Congress is up for grabs as millions of Americans cast their ballots in what's shaping up to be historic midterm elections. The polls will soon close, and millions will turn to cable news to watch the results come in. But this year, Fox News has a plan to win the election night ratings war. For years, Fox, CNN, and other news networks have made their election night calls using the National Election Pool's exit poll. But after the poll underestimated Trump's support in 2016, Fox broke from the pack.
7:58Now, after spending millions to develop a rival exit poll with the Associated Press and the University of Chicago, the Fox News voter analysis poll is about to make its debut. At Fox News headquarters in Manhattan, the voter analysis team is crunching the numbers. But the goal isn't just accuracy. It's speed. Fox News wants to call this election before its rivals. And at 9.32 p.m. Eastern Time, it places its bet on the result. We are now ready to make one of the biggest calls of the night. The Fox News decision desk can now project that Democrats will take control of the House of Representatives for the first time in eight years, dealing a major setback to President Trump's legislative agenda, giving fresh hope to liberals who want to investigate, as we just talked about, possibly even impeach the president.
8:50Fox News called it correctly and almost an hour before the competition. The result might disappoint many of its core viewers. But Fox News has proven it's going to be the network that calls the 2020 presidential election first. And that promises a major ratings win when Trump looks for a second term in office.
9:17March 2019, Warner Media headquarters, Manhattan. In a conference room, CNN chief Jeff Zucker and top executives from CNN's digital operation are meeting their new boss. AT &T's just bought CNN's parent company, Warner Media, for over$80 billion and put John Stanky in charge. Stanky's priority is to power up the media giant's digital offerings, and that includes CNN. He addresses the team. My role is to plan five to ten years out, not to participate in the editorial process. Zucker grins. Oh my God, please don't. I'm sure I'd only make it worse. But I do want to make CNN digital even stronger.
10:01I see tremendous opportunities we've yet to tap into. People still prefer to get their news from TV right now, but the trends suggest that that'll change five, ten years out. Fox News might have surpassed CNN and TV ratings long ago, but online, CNN rules. Around 121 million people access CNN.com every month. Fox News.com gets 105 million. But Fox News' new CEO, Suzanne Scott, is making an aggressive push online. She's bulked up Fox's digital newsroom and redesigned the website. Now, FoxNews.com is growing fast and even beating CNN on total page views. A CNN digital executive brings up a presentation detailing his team's analysis of how Fox News is making these gains.
10:54We've identified several strategies. Fox News' new website discourages sharing of content. Instead, it tries to get people to stick around and register their details. They're chasing loyal users over passing traffic. This could explain how they get more page views despite having fewer actual viewers. The executive brings up the Fox News homepage. Their content is different, too. Not just more right-wing opinions, but more tabloid stories and viral content that riles up its more conservative visitors. These are stories we at CNN view as not newsworthy. The executive scrolls down the homepage. For example, today, they've got mom praises grocery cashier for special moment with younger daughter.
11:39And here's another one. High school wrestler forfeits state final rather than wrestle girl. Zucker interjects. What's a bikini story? Yeah, so they have a strategy we nicknamed the Daily Bikini. and basically they run lots of stories about women in bathing suits. But it doesn't look like there is one today. I stand corrected. Here we are. Mom flaunts bikini body after 137-pound weight loss. Zucker smiles. So, yeah, that's what they're doing, all right. But we don't want to follow that strategy. We're not in the clickbait business. We don't do cat videos, water skiing squirrels. Hard news is CNN's bread and butter.
12:19Stanky nods. Agreed. But how do we grow the digital operation? What about something like Fox Nation? Fox Nation is Fox News' new streaming service. For$5.99 a month, Fox News superfans get access to exclusive programs like The Birth of Jesus, The Man Who Killed Osama Bin Laden, and The First Family, a documentary about the Trump family. Yeah, I'm not sure Fox Nation is the right model, but sure, we can look into that. This trend of people canceling cable TV subscriptions is only going to accelerate and cable fees are still our main income. So that's something to explore for sure. Early the following year, the team comes back with a rough plan for a subscription service called CNN+.
13:06But while CNN starts to plot its move into streaming, Fox News continues to thrive on cable TV.
13:20November 3rd, 2020. It's morning on Election Day, and Fox Corporation CEO Lachlan Murdoch is on the company's quarterly earnings call. And as usual, Fox News is the star performer. Fox News was the most watched network in all of television from Memorial Day through Election Day. The investors listening are impressed. When Fox News overtook CNN in 2002, It set its sights on becoming the top cable network. Now, it's America's most watched TV network, period. The race between Trump and Democratic candidate Joe Biden is a big reason why. In primetime, Fox News now averages more than 3 million viewers.
14:04CNN's a distant second place with 1.8 million, despite recent gains. Lachlan continues with the good news. Fox News primetime ratings are up 54 % among 25 to 54-year-olds. This demo is sought out by advertisers, making these gains particularly impactful. And Fox News accounts for 50 % of total primetime viewership in swing states, compared to CNN with 23%. This is only possible because we speak to the broadest audience of anyone in our competitive set. The call moves on to the Q &A. One investment bank analyst homes in on the election effect. Lachlan, how might the outcome of today's presidential election affect Fox News going forward?
14:49You think ratings can vary based on the outcome? News stories are out of our control, of course. As we enter a more normal news cycle, the appetite for news will shift back to the great American pastimes of watching football, baseball, and the masked singer. We look forward to that shift. What we want to control is market share. For 18 years now, we've maintained our number one position. We fully expect to maintain that. The call ends on a high. And with the Fox News voter analysis team primed to deliver the outcome of today's election ahead of the competition, the investors are confident that tonight will end in another win for Fox.
15:31That same evening, just after 11 p.m., Fox News headquarters Manhattan. Fox News Chief Suzanne Scott checks her phone. It's another text from Lachlan Murdoch. Australian media is reporting that Biden has to win Arizona to have a chance of winning. Is that right? The votes are cast, the count is underway, and Fox News is hoping to be the first network to name America's next president. Scott heads to the decision desk, where the team who makes the calls has been debating the latest Fox News voter analysis projections for Arizona. What's the call in Arizona? Is it time? Decision Desk Chief Arnon Mishkin replies.
16:09We've been debating it for 30 minutes, but I think, yes, it's going blue. Scott types a reply to Lachlan. Biden, Arizona. At that moment, on the studio floor, Fox News anchor Bill Hemmer is using a touchscreen to walk viewers through the ways Biden and Trump can each secure victory. So just go ahead and come back here to the what-if scenario. I don't want to start ticking these off yet, guys. I think it's too early. I haven't made a lot of calls in some of the states, so I'll refrain from that for now. But what is this happening here? Why is Arizona blue? Did we just call it? Did we make a call in Arizona?
16:50Let's see. There's a checkmark. Did our decision desk make it? Arizona, 11 electoral votes? Yes. The call on Arizona drops without warning live to the on-air team. And it's a bombshell. Without Arizona, Trump's chances are slim, and Biden is almost certainly the winner. And across America, millions of Fox News viewers are absorbing that news. On the third floor of the White House, President Trump stares in disbelief as the words, Former VP Biden wins Arizona, appear on Fox News. Over at CNN, Arizona's still up for grabs. Trump seethes for a moment and then yells at his son-in-law, Jared Kushner, to call Rupert Murdoch and get the call changed.
17:41Trump aides start calling everyone they know at Fox News, screaming at them to get the Arizona call off the air. But Fox News sticks to its guns. The pressure keeps mounting. An hour after Fox calls Arizona, it's still the only news network that's dared to do it. Fox wanted to beat the competition. But now, it feels out on a limb and exposed. When Fox News made the call, 13.6 million people were watching, well ahead of the 9.1 million watching CNN. Now, Fox viewers are deserting it. With the election results seemingly inevitable, many turn off their TVs. Others switch to CNN or niche networks like the pro-Trump Newsmax, which reassures them that Fox News is wrong.
18:31Upset Trump supporters barrage Fox News with complaints about the call. Faced with a backlash, Fox News puts Mishkin on air to defend the decision to call Arizona. We're getting a lot of incoming here. But Mishkin has no hope to offer Trump fans. I'm sorry. The president is not going to be able to take over and win enough votes to eliminate that seven-point lead. 24 hours ago, Fox News was on top of the world. Now, it's facing legions of angry viewers and a president on the warpath. And things are about to get worse. Because inside Fox News, rebellions brewing. The network's pro-Trump commentators are about to rally around the president and drag the network into a public civil war that will cost Fox dearly.
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22:05Election night, November 4th, 2020, Phoenix, Arizona. Outside the building where the election counts taking place, 200 supporters of President Donald Trump are gathered at the entrance. They're armed with bullhorns and flags bearing the words, Keep America Great. Police stand between them and those counting the 400 ,000 ballots that will decide whether Fox News was right to call Arizona for Joe Biden. An MSNBC journalist wearing a face mask moves towards the fired-up crowd to see reports live from the scene. We're keeping a respectful distance, but a loud and very boisterous crowd. You'll start here and then start up here.
22:48And they're actually chanting, Fox News sucks. Fox News sucks. The reason why they're chanting that is because Fox News called Arizona for Biden yesterday. And a lot of people are angry about that. The backlash against Fox News is in full force. Online, Trump superfans are venting their anger and sharing conspiracy theories. At home, they're changing the channel. Within Fox News, the network's conservative commentators are questioning the Arizona call. And from inside the White House, President Trump is fanning the flames by claiming that if he's lost, it's because of voter fraud. Day after day, Fox News finds itself attracting the ire of those who believe Trump will win as the count drags on and other networks hold off making a call.
23:40But on Saturday, November 7th, CNN finally makes its call. After four long, tense days, we've reached a historic moment in this election. We can now project the winner of the presidential race.
23:59CNN projects Joseph R. Biden Jr. is elected the 46th president of the United States, winning the White House and denying President Trump a second term. But by the time its rivals join Fox News in projecting a Biden victory, the damage has already been done to the nation's market-leading news provider. The following week, the weekly TV ratings report lands at Fox News headquarters like a sledgehammer. Fox News anticipated a post-election slump in its rating, but the speed at which they are losing eyeballs is terrifying. And so is where the audience is going, Newsmax. The Newsmax TV channel launched in 2014.
24:45Its target market is conservatives who feel Fox News is too mainstream. Before the election, on a really good night, it might attract 100 ,000 viewers in prime time. barely 2 % of the Fox News audience. But now, Newsmax is getting 800 ,000 viewers, viewers who had been watching Fox News. Alarmed by the exodus to Newsmax, Fox News decides it has to reassure its core audience that it is still their champion. It gives over airtime to Trump's claim that the election wasn't lost, but stolen, even though many at Fox News, including Rupert Murdoch, believe Trump's vote-rigging claims are nonsense. Fox News is now walking a tightrope.
25:30Trump has offered no evidence to support his claims of electoral fraud, so taking the allegations seriously risks destroying Fox News's journalistic credibility. But challenging Trump's claims risks alienating its conservative viewers even more. So its reporters turn mealy-mouthed, noting that while there's no proof of electoral fraud, the claim should be investigated and promising that Fox News will keep digging into the story. But Maria Bartiromo, the anchor of Fox News' Sunday Morning Futures show, uses an interview to highlight a conspiracy theory about voting machines made by a company called Dominion.
26:09Welcome back. I'm back with Sidney Powell, who is part of President Trump's legal team in contesting this election. Sidney, we talked about the Dominion software. I know that there were voting irregularities. Tell me about that. That's to put it mildly. The computer glitches could not and should not have happened at all. That is where the fraud took place. As Powell accuses Dominion on air, Porter Romo makes no effort to challenge her assertions. Dominion quickly issues a statement defending itself and explaining why the fraud claims are false. But in the days and weeks that follow, as a way to keep people watching, Other Fox News anchors also push the idea that the election was stolen and Dominion was involved.
26:53As the inauguration of Joe Biden nears, Fox News keeps amplifying the idea that the election was a fix, stoking anger to head off the risk of more viewers defecting to Newsmax. And on January 6th, 2021, the simmering anger among Trump supporters that's been bubbling away since election night finally boils over. This is CNN Breaking News. And good evening. I am Erin Bernad, and we have breaking news this hour. Of course, the terror in the nation's capital today. A curfew is in effect as we speak in Washington. You wouldn't know it, though, if you just looked at the live pictures. You still have pro-Trump groups and mobs in the streets stand off with police.
27:38We are also learning that today's insurrection has turned deadly. A woman was pronounced dead at a hospital after apparently being shot on Capitol grounds. In the aftermath of the January 6th riots, Dominion sues Fox News for spreading lies about it being a party to electoral fraud. Dominion is seeking$1.6 billion in damages. In a panicked board meeting, a Fox Corporation board member urges Rupert and Lachlan Murdoch to distance Fox News from Trump's claims. The Murdochs promise that Fox News is pivoting the network away from them as fast as they can, but note that they need to take the viewers with them, or the channel will lose them altogether.
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28:21But it's already too late to stop that from happening. That month, for the first time since January 2002, Fox News is no longer the number one news network. On the day of the riots, Fox News pulled in 3.4 million viewers, MSNBC got 4.5 million. And CNN beat them both with 5.9 million. Fox News also spent the next two days in third place. Fox News played with fire to cling on to its audience and got burnt. And now, for the first time in 19 years, it looks vulnerable.
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31:18February 2022, New York. Inside Warner Media's New York headquarters, CEO Jason Kyler spells out the decision he's made. This undeclared relationship leaves me no option but to ask for your resignation. CNN boss Jeff Zucker knew this was coming. The trouble started with the internal investigation into former CNN anchor Chris Cuomo's involvement in the political affairs of his brother Andrew, the former governor of New York. That probe uncovered that Zucker had been in a romantic relationship with a senior CNN colleague for years but failed to declare it. But both Zucker and Kyler know this couldn't have come to light at a worse time.
32:02Next month, CNN launches its streaming service, CNN+. It's been in the works for three years and cost$300 million to create. It's CNN's biggest commercial bet since 1980, when Ted Turner put it on the air. Then, there's the merger that's been hanging over CNN like a rain cloud. A year ago, AT &T decided it didn't want to own WarnerMedia after all, So it made a deal to merge it with Discovery Communications. And that merger will complete just two weeks after CNN Plus launches and see a new management team taking charge of the media empire. And word is, they're not keen on CNN Plus. Zucker leans forward, hoping for a stay of execution.
32:50I acknowledge I was wrong and I need to resign, but there's a lot happening now. Fox News is weakened. CNN Plus is about to launch. The merger's close. I am willing to stay on for a transition period until you find a new leader for CNN. Kyler shakes his head. No, Jeff, that won't work. You need to go immediately. Despite Zucker's exit and the imminent merger, CNN Plus motors on towards launch. Kyler is confident that it can connect the brand with young adults who don't currently and probably never will buy a cable TV subscription. The streaming service will cost$6 a month and offer exclusive programming from deep-dive documentaries to topical lifestyle shows.
33:36It's also got a lineup of high-profile anchors, among them Chris Wallace, who quit Fox News because of its willingness to give airtime to conspiracy theories about stolen elections and the Capitol riots. CNN's also selling$50 CNN Plus NFTs, or non-fungible tokens, as rare digital keepsakes to commemorate this historic moment. On March 29th, 2022, CNN Plus goes live, opening with Kate Baldwin's brisk morning show, Five Things. Good morning, and welcome to CNN Plus. I'm Kate Baldwin. It is March 29th, 2022, a historic day. for CNN as you are watching the first live broadcast on our brand new streaming service.
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34:38April 11th, 2022, New York. Less than three weeks after launch, CNN Plus boss Andrew Morse is finally face-to-face with CNN's new overlords at Warner Brothers Discovery. He's been trying to get an audience with them for months. Word is the Discovery team, who now dominate the business, are cold on CNN+. They prefer the idea of CNN being one part of an all-in-one streaming service, similar to Disney +, or NBC's Peacock. So Morris needs to convince them that a standalone service still makes sense. But he's got few friends in this room. Zucker's history. Kyler didn't stay after the merger. And among the unfamiliar faces in the room, Chris Licht, the CBS executive who will take over running CNN next month.
35:28Morse opens by highlighting CNN Plus's early progress. We've secured 150 ,000 paying subscribers in our first 14 days. We're on target to meet our first year goal of 2 million subscribers. Licht checks his notes. How many of those subscribers are using CNN Plus on a daily basis? Subscriptions are the usual metric, but currently fewer than 10 ,000 people use CNN Plus daily. That doesn't fill me with confidence that they're going to keep on paying. As I said, the number of subscriptions is the usual metric. If people access content once a week and feel they get enough value from that, it's not a problem.
36:06I should also mention that CNN Plus only became available on Roku today, and it's yet to launch on Android TV. Another member of the new management team crosses his arms. You know, it's stuff like that that makes me question the timing of CNN Plus's launch. I don't understand why this service was rushed out just before the merger. Feels to me like that was done to stake a claim over the service to guard against CNN Plus becoming part of the wider Warner Brothers Discovery streaming strategy. That wasn't the case. We've been working on it for some time. Licht leans forward. I think we should reassess.
36:43Current plan is to invest a billion dollars in CNN Plus over the next four years to get 15 to 18 million subscribers worldwide and reach break even. I think we need to review that plan, and so I suggest we stop external marketing of CNN Plus for two weeks. Yeah, that's right. Morse's heart sinks as the rest of the management murmur and nod in agreement. Two weeks later, Warner Brothers Discovery shuts down CNN Plus and lays off most of the team. It was supposed to be CNN's future. It lasted just one month. Fox News is now winning on two out of the three battlefronts. Online, CNN is still far ahead with 125 million unique visitors compared to Fox's 83 million.
37:34But when it comes to streaming services, Fox Nation stands unopposed. On cable TV, Fox News is recovering from its post-election slump and getting 2.1 million viewers in prime time. CNN remains a distant second with 828 ,000 viewers, and its position is fragile, too. Third-placed MSNBC is just 1 ,000 viewers behind. But while Fox News is back on top, the fallout from its post-election scramble to hold on to viewers continues.
38:14January 2023, the Fox Corporation lot, Los Angeles. 92-year-old Rupert Murdoch slowly settles into his chair and looks at his interrogator. He's Justin Nelson, the lead attorney for Dominion Voting Systems, which is suing Fox News for spreading false claims that its voting machines were involved in a conspiracy to rig the 2020 presidential election. Nelson looks at the aging media billionaire and continues the deposition questioning. Did President Trump or his team call you on the night of the election? Well, my friend Jared Kushner called me saying, this is terrible, and I could hear Trump's voice in the background shouting.
38:53What did you say? I said, well, the numbers are the numbers. Did you believe that the 2020 presidential election was free and fair? Yes. The election was not stolen. What do you make of the bogus charges that have been made against Dominion? We only report what was going on, that's all. We didn't state them. They were not our charges. When the president says something, anything, it's news. You are aware now that Fox did more than simply host these three guests who stated these charges and give them a platform, correct? Well, I think you've shown me some material in support of that over the past two days.
39:30Was it wrong for Fox News hosts to endorse these lies? Well, if they knew they were lies, yes. And you are now aware that Fox endorsed at times this false notion of a stolen election? Not Fox, no, not Fox. Maybe some commentators. Nelson produces an internal Fox News document, which discusses Fox News commentators endorsing the stolen election claim. This document shows that Fox endorsed the narrative of a stolen election, does it not? No. Some of our commentators were endorsing it, yes, but... It's about their endorsement of a stolen election? Yes, they endorsed. Nelson and Murdoch share a glance.
40:12They both know Murdoch's just conceded that Fox News wasn't just reporting the news, but endorsing false claims about Dominion. Mr. Murdoch, I appreciate your time. Are we done? We are. As the attorneys on both sides pack up, Fox's legal chief leans over to Murdoch. They didn't lay a finger on you. Murdoch gives his lawyer a withering look and jabs a wrinkled finger in Nelson's direction. I think Mr. Nelson would strongly disagree with that. Nelson smiles. Indeed I do. Three months later, Fox settles the lawsuit with Dominion. It agrees to pay Dominion close to$800 million and acknowledges a court ruling that the claims it broadcast about its voting machines were false.
41:00A few days later, Fox News abruptly fires its primetime star, Tucker Carlson. Despite pulling in more than 4 million viewers each night, Carlson's talk of the Capitol riots being a false flag operation to discredit Trump has sent major advertisers fleeing. And with Carlson eliminated, Fox News promises a new primetime schedule with more advertiser appeal and less controversy. Yet despite the expensive lawsuits and outrage, Fox News is still winning. It ended 2023 as the biggest network on cable TV for the eighth year running, with 1.9 million primetime viewers. Its old enemy, CNN, is now in steep decline.
41:50After shutting down CNN +, it made a push to reset relations with Republican voters with a greater emphasis on impartiality, even going so far as to downplay the first hearing into the Capitol riots. But instead of winning viewers, the New Direction lost them, and the network sank into a distant third place to MSNBC. CNN may have started the 24-hour news revolution, but it was Fox News that realized that the big money wasn't to be found in serving up hard facts, but in news spiced up with plenty of opinion and lots of drama.
42:57The End Story. Research by Marina Watson. Our senior producers are Karen Lowe and Dave Schilling. Our producers are Emily Frost and Grant Rutter. Sound design by Josh Morales. Voice acting by Michelle Phillippe. Fact-checking by Will Tablin. Our coordinating producer is Desi Blalot. Our managing producer is Matt Gann. Our senior managing producer is Ryan Lohr. Our executive producers are Jenny Lauer-Beckman and Marshall Louis for Wondery.
44:01Transcription by CastingWords are injecting mystery vials with no FDA oversight. I'm David Brown, host of Business Wars. In our latest season, we're diving into the race to Ozempic and the billion-dollar showdown between Big Pharma's biggest players. Can they close the supply gap before one bad vial destroys everything? Make sure to follow Business Wars on the Wondery app or wherever you get your podcasts. You can binge all episodes of Business Wars early and ad-free right now on Wondery+. us.
From the publisher
It's February 2017 and CNN is mounting a comeback through its clashes with President Donald Trump. And Fox News is on a mission to own election coverage. But its emphasis on making election night calls early puts it in hot water with its core audience. Soon, Fox News faces an existential threat.
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