Fox Corp: Report on “News” vs. “Opinion” Risk

WHEREAS: he ongoing perception by Fox News viewers, that non-news shows are actual journalism, poses significant risks to Fox Corp. and to U.S. democracy. Last year, Fox settled a lawsuit with Dominion Voting Systems for $787.5 million because of statements made on Fox News alleging illegitimacy of the 2020 election results due to Dominion’s systems.[1] The settlement came after a court rejected Fox’s legal defense that the statements about Dominion were “pure opinion.” The Court found instead that the statements “were made by newscasters holding themselves out to be sources of accurate information.”[2] The 2023 Dominion lawsuit highlights the risk of a news organization inadequately differentiating its news reporting from its opinion and entertainment programming.

Failure to differentiate between journalism and opinion also poses a clear threat to an informed electorate and a thriving American democracy. Studies show that Fox viewers are more likely to be misinformed about issues including elections and the integrity of voting systems, COVID-19, climate change, and other issues.[3] Typically, it is Fox’s opinion shows that are identified as the basis for the misinformation.[4]

Blurred lines between opinion and journalism also introduce significant business risk from potential reputational damage. Twenty-one percent of Fox News viewers said they trusted the network less in light of evidence revealed by the Dominion lawsuit.[5]

A clear differentiation between Fox’s opinion and news shows can mitigate ongoing risks to the Company, shareholders, and its audience without limiting the free speech of hosts or the programming that Fox News provides.

BE IT RESOLVED: Shareholders request that the Fox Corporation Board prepare and publish a report, excluding confidential information, assessing the potential negative social impact and risks to the Company from continuing to inadequately distinguish between Fox’s on-air news content and its opinion content, and the viability and benefits of providing public differentiation between its news and the entertainment-based nature of its non-news shows.

SUPPORTING STATEMENT: Shareholders request that the report include:

Analysis of risk mitigation from a third-party expert that includes legal, financial, and reputational risk;

Identification of likely strategies that increase the distinction between news and opinion content, such as replacing the on-screen “Fox News” branding during opinion shows to highlight opinion-content.

Third-party testing of methods that communicate opinion content to independent viewers (such as the example of branding differentiation, provided below).