In 1996 Rupert Murdoch hired Roger Ailes, a Republican media consultant, to build a new 24 hour cable news network. Fox News immediately went to work to disparage Democrats and liberals. They spent their early years mired in debt, losing $80-90 million annually. It was only Murdoch’s deep pockets that kept them out of bankruptcy. Still, they had some strategic success as they badgered Bill Clinton with Whitewater and Lewinsky, and they corralled Republican and evangelical voters so that George Bush and Karl Rove could reach them more easily.

However, it was during the Bush years that Fox News began to outperform the cable competition. CNN, HLN, and the launch of MSNBC diluted the non-rightist audience giving Fox a plurality of viewers and bragging rights for ratings victories. Fox enjoyed first shots at interviews and scoops from the administration and Congressional Republicans. That brought them greater influence and gratitude from the halls of power. In addition, the White House kept its TVs tuned to Fox, as well as those at Camp David, the Crawford ranch, and even on Air Force One. Vice-President Dick Cheney even had a travel directive that required that “all televisions [be] tuned to Fox News.” Woe to those staffers who failed in that duty.

There may never have been (and hopefully never again will be) such a close relationship between a news organization and a presidential administration. In the end, they were even trading places as if they were merely different departments of the same enterprise: When presidential advisor Karl Rove moved out of the White House to become a Fox News contributor, Fox anchor Tony Snow moved in to become Bush’s press secretary.

Going forward, Fox will find themselves on a new frontier. It is highly improbable that they will be the exclusive broadcaster in the White House of Barack Obama. Although, I certainly hope that the new administration will pay close attention to the spew emanating from Fox, I don’t expect them to be in cahoots. Murdoch and company are definitely going to lose some of their clout. There will be a new Chairman at the FCC, and a new position for a White House Technology advisor. These will be knowledgeable and independent people who will serve the public interest – for a change. Here is a sampling of the views of Fox News, and Big Media in general, from some senior members of the new administration:

President Obama: “In recent years, we have witnessed unprecedented consolidation in our traditional media outlets. Large mergers and corporate deals have reduced the number of voices and viewpoints in the media marketplace.”

Hillary Clinton, Secretary of State Designate: “There have been a lot of media consolidations in the last several years, and it is quite troubling. The fact is, most people still get their news from television, from radio, even from newspapers. If they’re all owned by a very small group of people – and particularly if they all have a very similar point of view – it really stifles free speech.”

Eric Holder, Attorney General Designate: “With the mainstream media somewhat cowered by conservative critics, and the conservative media disseminating the news in anything but a fair and balanced manner, and you know what I mean there, the means to reach the greatest number of people is not easily accessible.”

More President Obama: “I am convinced that if there were no Fox News, I might be two or three points higher in the polls. If I were watching Fox News, I wouldn’t vote for me, right? Because the way I’m portrayed 24/7 is as a freak! I am the latte-sipping, New York Times-reading, Volvo-driving, no-gun-owning, effete, politically correct, arrogant liberal. Who wants somebody like that?”

This can’t be good news for Fox News. But the network seems to be aware of the shifting landscape and has been preparing for battle. They signed new long-term contracts with Ailes, Bill O’Reilly, and Sean Hannity. They axed Hannity’s foil, Alan Colmes. They hired reinforcements like Mike Huckabee, Glenn Beck, and Judith Miller. Clearly they see trouble ahead and are responding by stocking their armory with ever more weapons of mass deception.

Unfortunately for Fox, forecasts are not rosy for the disinformation station. They are consistently the slowest growing cable news network, particularly in the all-important 25-54 demographic. They have the oldest skewing cable news audience. They are facing stiffer competition than ever, with the surging Keith Olbermann and Rachel Maddow’s record-breaking debut. The Fox News ratings crown was once unassailable. Today, while still maintaining their first place average, they often come in second and occasionally third. That was unthinkable two short years ago.

As for their future prospects, it is difficult to make a case for Fox to be optimistic. In addition to their recent ratings woes, they are entering a period wherein the American public may not appreciate a network that is hostile to a new president who is held in high regard. Obama is beginning his term with an 80% approval rating. Of course, that won’t last, and Fox will surely seek to shorten Obama’s honeymoon. But contrary to some media analysts who suggest that an adversarial relationship with Washington will benefit Fox, the truth is that Fox experienced its strongest growth amidst the friendliness of Bush years. This suggests that it is not simply drama and controversy that propelled Fox (although that is their preferred programming model), but that having powerful political allies helped them to succeed. When looked at objectively, that shouldn’t surprise anyone. When has having powerful political allies ever been a disadvantage?

Nevertheless, Fox is pursuing the path of most hostility, as evidenced by their new schedule. For further evidence note the response by Fox News commentators following Obama’s inaugural speech. Brit Hume’s first comments were to find passages that might please the right. Chris Wallace actually speculated that the flubbed oath of office (due to Chief Justice Roberts mangling the text) might mean that Obama isn’t really president (Let the conspiracy emails begin). Glenn Beck spent the whole hour of his second show on Fox heaping scorn on Obama. And while Rush Limbaugh isn’t technically on Fox, he is a charter member of the same ideological fraternity, and he has published a long dissertation on why he hopes Obama fails. These guys aren’t wasting any time.

This is just a preview of what we have to look forward to. The influence of Fox News is bound to decline. The Obama camp would be justified in giving Fox a cold shoulder. Fox deserves it for their brazen partisanship and for failing the test of responsible journalism. Other networks should now get some exclusives and scoops. And the more that this historic administration ignores Fox, the less relevant they will be.

We will now see Fox revert to the behavior of an injured wild beast that becomes even more ornery and more dangerous. We see it already. It’s important that we keep an eye on this threat, as it is not retreating to its lair. But it is retreating in the hearts and minds of the American people, and for that we should feel some sense of relief.