Countless threads on this topic already. Anyhow, there were interviews in BusinessWeek and the New York Times a month or so ago where Murdoch stated that he doesn't believe in the iTunes business model. He wants his compnay to have as much control as possible and said that they wouldn't make the move to iTunes. He said that they would soon have their own delivery system. He also, foolishly said that he can see a day when people will download a 20 second joke snippet from Family Guy to show to their friends.
Yeah - great idea. "Hey everyone, gather 'round my cell to watch this hilarious bit." Not.
My guess is that Murdoch will cave and Fox will eventually come to iTunes.