The Birth of a Cable News Nation: On the Media on the debut of Fox News

Rupert Murdoch

Bitter rival billionaire media moguls with titanic egos...A politically ambitious mayor...Deals and double deals...The birth of Fox News played out like an epic Tom Wolfe satire come to life, and was the topic of discussion for an October 13, 1996 segment of On the Media.

Fox News was a late entrant to the newly-waged cable news war: MSNBC, a collaboration between NBC News and Microsoft, had first aired as a cable news competitor to CNN three months earlier. But when News Corp Executive Chairman Rupert Murdoch finally got his entry on the air on October 7, 1996, it could not be seen by 1.1 million New York City cable subscribers.1

Why could the majority of New York City cable subscribers not see Fox News unless they were strolling past the FNC studio windows in Midtown Manhattan? As television critic Eric Mink explained in a column for the New York Daily News (a competitor to Murdoch’s New York Post): “Toss a dart at the Time Warner/Fox News Channel dispute, and hit a hypocrite…” 2

Time Warner had merged with Ted Turner’s Turner Broadcasting System in 1995. As part of the Federal Trade Commission approval of the merger, Time Warner, which operated Time Warner Cable, the leading cable provider in New York City, had to allow access to another cable news channel to compete with CNN.1

Digital cable and its vastly broader bandwidth was still years away, so providers had a finite set of stations to allot (as lamented in the 1992 Bruce Springsteen single “57 Channels (And Nothin’ On)”). In the case of Time Warner Cable, there were 75 channels and nothin’ for Fox News to be on: Time Warner had already given one to slot MSNBC when it launched to replace NBC’s America’s Talking channel. Murdoch was willing to overpay for access (reportedly $10 per subscriber.) He thought he’d made a deal with Time Warner to carry Fox News, but Time Warner changed its mind, citing its previous agreement with NBC. 3

That's when New York Mayor Rudolph Giuliani entered the picture. Murdoch’s Post had endorsed Giuliani’s candidacy and defended his administration’s policies after his election; Giuliani’s then-wife, Donna Hanover, was an on-air personality for the local Fox station’s newscast. Since Time Warner would not give Fox News a slot, the city floated the idea of using one of the city’s five public access Crosswalks channels to show Fox News. Adding to the mix of conflicting interests was that Time Warner Cable’s franchise agreement with the city was up for renewal in 1998 —but that did not keep Time Warner from suing to keep the city from giving a Crosswalks channel to Fox. Then, Murdoch threatened to move the Fox News studios and their reported 14,075 jobs out of the city. Since MSNBC’s studios were across the Hudson in Secaucus, and CNN was headquartered in Atlanta, Giuliani pitched support for Fox as the Big Apple job creator of the three channels. 3, 4

Not lost on anyone was the disdain Murdoch and Turner had for each other. Turner had branded Murdoch a “schlockmeister” and compared him to “the late Führer” 1, and as television critic Marvin Kitman joked during a September 29 segment of On the Media, “Murdoch wanted a cable news network because he feels CNN is a left wing organization and it’s under the influence of Ted Turner and Hanoi Jane, as he still calls Jane Fonda...” (Turner and Fonda were married then.)

Pundits wondered what Fox News meant when it promoted itself as “fair and balanced”.5 Would it hew conservative as the front and editorial pages of Murdoch’s Post did, or would it end up in the middle-of-the-political-road, as Kitman was predicting? On the Media panelist Mike Schneider, a Fox News anchor, said he thought the channel made clear delineations between its news and opinion programming.

Was there really an audience for two, let alone three, all-news cable channels? Were there enough advertising dollars for all of them? Panelists Elizabeth Lesly, media editor of Businessweek, and Mark Jurkowitz, ombudsman of The Boston Globe, and Mink, as well as many experts, were skeptical. A few weeks earlier Kitman had quipped, “It’s not going to be very widely seen. That’s one of the major problems with Fox News...In some cities you’ll be able to pick it up on your toaster and electric toothbrush.”

While these initial questions and controversies continued to swirl, later OTM segments would follow the fighting as the first volleys of the great cable news war were fired.

 

1 Young, Steve. “Fox News takes on CNN”. money.cnn.com, 1996, October 7.

 

2 Mink, Eric. “Fox-TW spat full of phony baloney lotsa hot air in this fight, but viewers are out in the cold”, New York Daily News, 1996, October 10.

 

3 Landler, Mark. “Giuliani pressures Time Warner to transmit a Fox channel”, The New York Times, 1996, October 4.

 

4 Levy, Clifford J.  “An old friend called Giuliani, and New York's cable clash was on“, The New York Times, 1996, November 4

 

5 Mifflin, Lawrie. “At the new Fox News Channel, the buzzword is fairness, separating news from bias”, The New York Times, 1996, October 7.