Who will win the conservative streaming wars? Fox Nation or TMTG+. Trump challenges Netflix and Disney+ with ‘non-woke’ streaming service
Trump Media or Fox Nation? Well the market has been reacting quite strongly to Trump announcing he will use Digital World Acquisition Corp $DWAC as a SPAC to take Trump Media public. DWAC currently has a market cap of ~$3.2 Billion, but there is a strong argument that this valuation is low relative relative to Fox at $23.6 Billion. There is also a meme stock component to the new hot Trump SPAC on Wallstreet Bets.
Fox Nation has additionally increased its aggressive and diverse genre content strategy since I talked about it becoming a “big tent” SVOD competitor to Netflix for conservative Americans in late July. It’s not just about news anymore. The Cops acquisition and increased non news genre content show that Fox Nation is attempting to split the SVOD market similar to how Fox News split the news market just a few decades back. I don’t underestimate Rupert Murdoch ever, but someone else seems to have the same idea.
What’s changed since then? Trump wild card. Of streaming companies, I actually view Fox Nation, not Netflix and Disney as Trump’s main competitors. Netflix and Disney+ are going to have a tough time targeting conservative America as effectively as Trump may be able to do. Netflix and Disney+ whether fairly or unfairly are seen as too ‘woke’. That brand image will be hard to shake especially with Trump and company likely to use Big Media’s woke culture and content against them in marketing pushes.
Trump Media also announced a new social media play. I think that will be far less successful than the SVOD. To launch a social platform, it takes a LOT of technological expertise…Trump may have the network and the reach, but he doesn’t have a very strong technology team at all. However, maybe this IPO funding will make it easier for him to hire the top notch tech talent needed to legitimately scale a competitor to Big Tech social media. Regardless, launching the SVOD service is MUCH more straight forward and leverages Trump’s specialties in entertainment, media, and news. What will be interesting to see? If Trump Media can tie the two ventures TOGETHER. He might be able to get away with a less user friendly social platform if it is well integrated with TMTG+…
Sources and further reading:
Fox News’ ambitions are larger than news. Will Fox Nation become the Netflix of the Right?
CNBC POLITICS Trump SPAC halted multiple times as stock jumps again in volatile trading
Fierce Video Trump plans ‘non-woke’ streaming alternative to Netflix, Disney+
