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Foxtel hits 1.6m subscribers

Happy EOFTYS? Foxtel now has 1.63 million subscribers, up 5.8% on last year.

eofysFoxtel now has 1.63 million subscribers, up 5.8 per cent, but the company has posted a 14 per cent drop in pre-tax profit to $135 million for 2008-09. EBITDA grew by 16 per cent to $406m.

The company said the result reflected the initial costs of more customers taking up the iQ boxes. 43% of all Foxtel managed subscribers were now taking the iQ and 26% taking Multi-Room.

The rate of cancellations, known as churn, at 13.3% was slightly lower than the 13.4% in the prior corresponding period.

Over 125,000 subscribers were taking the HD+ service, launched in late June 2008.

CEO Kim Williams said, “Our results have been built on a continued commitment to innovation and investment and to providing our customers with a great value entertainment option – which we have developed through extensive customer research and daily customer feedback to our dedicated customer centre.

“While there are some welcome signs that the economy is starting to rebound, conditions still remain economically challenging with unpredictable outcomes for business and this will clearly provide Foxtel with some challenges in maintaining its growth momentum – especially with potential increases in unemployment and the unpredictability in the positive movement in consumer sentiment”.

Source:  The Australian

11 Responses

  1. I want to compliment Foxtel News on the excellent coverage of news and developments in the USA I have an appointment, every morning, with your program, especially to see, hear and listen to Glen Beck. I have been telling everyone around me about the intelligent, articulate and humorous presentation and I could still add a few more accolades, and, for that matter, could extend them to all newspresenters on your program. I pass all the information I gain from your program on to other people I meet, and am astounded how few people are aware of what is going on in the States.A small percentage of our more articulate population reads our major newspaper “The Australian”. However, the news from the USA in it is, naturally, more reflective, and focussed on particular issues. Your program keeps me in contact with daily happenings. I used to work in Foreign Affairs, and international affairs and politics, are my major passion, even at an older age, in which I have landed all of a sudden to my surprise. Thank you, Glen, and all you contributors, for your courage and lively presentations. All good wishes from an Australian admirer, Frederika Westerman

  2. I am one of their new subs… So far, well, so far I get crystal clear vision and awesome docos and some decent comedies… Plus the IQ is awesome…

  3. id love to know the churn for those with IQ vs those without it, how anyone could go from having Foxtel with IQ back to regular TV is beyond me, at the rist of sounding like I work in PR for Foxtel, that IQ device has completely altered the way I watch TV, I cant remember the last time I watched an ad! I just record everything and watch it back with no ads…I started watching last nights DWTS at about 7.30pm and got through the whole thing by 8.50pm..its amazing how much time you save forwarding all the ads and waffle..I love it!

  4. @Stephen. Interesting, thanks for posting that. I’m surprised that much churn exists, obviously people come back after a while.

    I had Optus years ago but apart from the news got over the novelty reasonably quickly. I.Q is attractive as a concept as it’s easier than torrents, but now I can use Hulu, BBC and Channel 4 along with Iview, there’s too much stuff to watch as it is.

  5. After taking up an EOFY offer I have received my bill which shows a charge for my IQ for the last two months – (as a Telstra staff member, you think they’d at least look after one of their own…..) the satellite service also tends to “drop out” every so often, to which i’m offered an assuming automated telephone service to correct my problem – how can they say that they’re always on call in their ads when all i get is an automated machine that temporarily fixes the problem by rebooting the IQ? And why do we have to see the ad for “I love my Foxtel” on Foxtel so often. I never thought I’d say this, but I hate my Foxtel.

  6. Many years ago we had Optus Pay, then Foxtel. Dumped both as being far, far too expensive given that there was only a few channels we ever watched. Most of the stuff back then was reruns of shows we had already seen on FTA. The “new” Scifi channel … just repeats & more reports.

    I would, however, sign-up to Foxtel if they would allow me to choose my own channels. When I look at the current packages/options there’s alway 1 or maybe 2 channels in each package I would watch. Of course that’s done deliberately to force it’s customers to spend more money. These days, why should I, we, have to pay extra for the HD channels?

    If they ever do get their act together then they would have yet another subscriber, but until then …….

  7. all sub tv companies round the world run at 10-15% churn – they’ll probably be happy with 13% in this climate. I believe Sky in the UK was at over 20% for a while before they stitched up the EPL and reached the tipping point into massive profitability – sounds like Foxtel is close to that point now. Makes you wonder, (apart from their blatant laziness) why the FTA haven’t gone harder with Freeview to stem the tide.

  8. They could easily add another 5 percent to there customer unit base by reducing the sales margin even further. Short term bluff story to hide long term financial loss.

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