Fox News is desperate, losing its coveted number one position as the most watched cable news channel, falling to third place behind rivals CNN and MSNBC.

A new Vanity Fair report credits Newsmax with playing a leading role in Fox’s ratings woes. Newsmax is now the 4th-rated cable news channel, according to Nielsen.

In a recent shakeup at Fox, early evening show host Martha MacCallum was demoted to an afternoon slot after Newsmax TV’s “Greg Kelly Reports” beat her show “The Story” in a key ratings demo last month.

“I think it scared them to their core when Greg Kelly beat Martha in the key demo,” another Fox staffer said, Vanity Fair reported, citing the Daily Beast.

The magazine noted that MacCallum “didn’t pound the MAGA drum as hard as Greg Kelly, the Newsmax host who beat her last month in the prized age 25-54 ratings demo — an unexpected win for the smaller conservative channel against the long-running cable juggernaut.”

Vanity Fair quotes one Fox News staffer who summed up to CNN why their network is in free fall: “Newsmax won.”

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