Netflix has a prediction: The future of live television is Rupert Murdoch's "New Fox."
"New Fox" is the company that will exist after Fox sells $71.3 billion of its assets to Disney. It's basically Fox's broadcast channel, its owned and operated affiliate networks, Fox News, Fox Business, and its national Fox Sports channels. Some in the industry also suspect New Fox may buy back the 22 regional sports networks it agreed to sell Disney if there isn't a higher bidder.
Netflix said in its earnings statement on Tuesday that "New Fox appears to have a great strategy, which is to focus on large simultaneous-viewing sports and news." The company goes on to say, "Other linear networks are likely to follow this model over time."
In other words, Netflix believes there are going to be a bunch of on-demand services, which will be delivered over the Internet, and then there's going to be TV, which will deliver you live events such as news and sports.