★★★★★ 0/5

Streaming now two-thirds of Foxtel Group subscribers

4.66m subscribers across Foxtel Group with more Binge subscribers than residential Foxtel customers.

16
Leave a comment

Foxtel  Group has reported 4.662m subscribers up 3% on the corresponding period, with Streaming now comprising two thirds.

That includes Binge, a star performer up 17%, Kayo (up 10%), Foxtel Now (down 17%) and Flash (not disclosed).

There are now more Binge subscribers than Foxtel residential customers, and Kayo has very nearly overtaken the latter.

Residential and commercial subscribers were down 12% with churn at near record-low levels.

News Corp Chief Executive Robert Thomson said: “In Australia, Foxtel Group continues to build on its streaming success. Streaming now accounts for two-thirds of the total Foxtel subscription base and that revenue growth is more than offsetting the decline in broadcast – fears that our world-class streaming products would be a catalyst for cannibalisation have been unfounded.

“Broadcast churn is at near record-low levels with Foxtel retail churn in March under 10%. That success is also a tribute to our marketing and customer service teams at Foxtel, and to the leadership of Patrick Delany and Siobhan McKenna.”

Binge paid subscribers grew 22% year-over-year from the last quarter, to nearly 1.5 million subscribers, bolstered by The Last of Us.

Foxtel introduced advertising within the Binge Basic product which accounts for approximately 30% of all Binge subscribers.

“As at the end of March, Binge, our entertainment streaming product, launched advertising on its basic service, adding a new, lucrative revenue stream. Interest from advertisers has been ardent as the initial phase of packages were sold out. We have demand and, seemingly, some flexibility on pricing in the months and years ahead.”

News Corp CFO Susan Panuccio added: “On a constant currency basis, revenues rose 2% versus the prior year, the fifth consecutive quarter of growth in constant currency.

“Streaming revenues accounted for 26% of circulation and subscription revenues, compared to 20% in the prior year and again more than offset broadcast revenue declines, benefiting from both volume growth and higher pricing at Kayo Sports and Binge.

“Total closing paid subscribers across the Foxtel Group improved to nearly 4.6 million at quarter end, up 6% year-over-year. Total paid streaming subscribers were approximately 3 million, increasing 16% versus the prior year and accounted for approximately 65% of Foxtel’s total paid subscriber base.

“Paid subscribers for Kayo Sports reached a record of over 1.3 million, up 14% year-over-year. Net adds from the prior quarter improved to 183,000, the largest sequential increase in seven quarters, with the start of the popular Winter sports codes in March. Revenues also benefited from a price rise implemented in February.”

16 Responses

  1. Millions of subscribers yet Kayo is a terrible app. Beyond frustrating when watching a game and it randomly decides to play from the start again.
    I wish I didn’t have to support this company, but I don’t have a choice to watch AFL :/

  2. I have Flash and the arrival of MSNBC has been very disappointing. It’s the same 3 ads over and over again occasionally interrupted by a show.

      1. MSNBC is particularly bad though – it’s the same half dozen promos in big blocks every 15 mins or so. Actual commercials would be far more interesting.

  4. I’m a long term satellite subscriber. I almost cancelled but was offered $19 for a year . Now it’s $49 but I have everything except sport . that includes all the things they used to charge extra for line HD and movies . The IQ box is finally stable.

  5. Technology tends to lead the way when determining how consumers source their entertainment, this happened with the gradual transition from analogue TV broadcasting to SD resolution cable TV. Later, new TV processors and larger screens made high definition broadcasting essential, and now with some premium shows and events we are starting to see more 4K. With the increased popularity of on line social media, made possible by faster broadband, paid subscriber streaming channels now have the extra attraction of providing UHD resolution and Dolby sound for big TV’s and sound systems. In my opinion Foxtel must have broken their crystal ball and misread the developing pay TV market by investing in satellite and set top boxes, but then so did numerous other pay TV companies, including Sky in the UK, but now keeping the premium content coming is essential for all Pay TV companies or subscribers will cancel.

      1. I wouldn’t call them strong. 24 months ago the future looked very bleak. It’s true that within 2 years after many false starts they have improved, but it could all come crashing down at any moment.

        In 12-24 months if/when WBD(HBO) decides to enter the market; Foxtel could be reduced to a News/Sports only business. With that risk constantly hanging over their head I think “strong” is a stretch. Their CRO wouldn’t be getting any sleep.

        1. Perhaps strong is a bit of a stretch. As of right now, they are in a good place. But when HBO eventually brings its streaming service down under, that could change. A news and sport only business could do well, but losing popular entertainment programming would be a big loss to be sure.

      2. Leading the way? You obviously work for them.
        They trail behind every other streaming service in terms of picture and sound quality, navigation, and reliability.
        Unfortunately I keep paying them money because of the content from HBO like Succession which is brilliant.

        1. I don’t work for Foxtel or Nine. My comment about them leading the way has less to do with their techincal capabilties, which, as you rightly point out, are lacking, and more to do with their strong level of commitment to original programming and popular overseas programming, such as Succession.

      3. Except they won’t all stay alive, at least as independent entities. Ten is already part of a major US studio. Foxtel has an uphill battle ahead as every major studio (except Sony) launches their own platforms in Australia. Nine is in an even worse position.

Leave a Reply