Advertising is moving to digital platforms, away from cable TV, and it's having a direct impact on companies such as 21st Century Fox (FOXA) .
Revenue from cable TV programming, Fox's largest business, rose 2.1% to $4.02 billion, trailing estimates that called for $4.13 billion. Fox said ad sales from cable TV programming were flat compared with the same period a year ago.
Overall, Fox's results for its fiscal third quarter were significantly bolstered by its broadcast of Super Bowl LI and an additional NFL playoff game. Nonetheless, revenue still fell short of analyst projections of $7.64 billion. Fox posted revenue of $7.56 billion for the quarter.
Fox posted earnings per share of 44 cents for the quarter, less than the average Wall Street analyst forecast of 48 cents per share. Fox shares, which dipped 1.2% on Wednesday, were down an additional 1.8% after hours to $27.40.
The slowdown in advertising comes as consumer viewing habits are fragmenting and advertisers are moving more of their marketing dollars to digital platforms led by Facebook (FB) , Alphabet's (GOOGL) YouTube and Snap (SNAP) .
There's also a lot happening at Fox that has little to do with ongoing operations.