The key to decoding Fox News isn’t Bill O’Reilly or Sean Hannity. It isn’t even News Corp. chief Rupert Murdoch. To understand what drives Fox News, and what its true purpose is, you must first understand Chairman Ailes. “He is Fox News,” says Jane Hall, a decade-long Fox commentator who defected over Ailes’ embrace of the fear-mongering Glenn Beck. “It’s his vision. It’s a reflection of him.”

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Fear, in fact, is precisely what Ailes is selling: His network has relentlessly hyped phantom menaces like the planned “terror mosque” near Ground Zero, inspiring Florida pastor Terry Jones to torch the Koran. Privately, Murdoch is as impressed by Ailes’ business savvy as he is dismissive of his extremist politics. "You know Roger is crazy," Murdoch recently told a colleague, shaking his head in disbelief. "He really believes that stuff."