Foxtel Boss Tales A Pot Shot At Netflix Revenues
Last week Foxtel counted Presto and T Box subscribers in a bid to deliver a 9% increase in subscribers, what they didn’t release was how many premium customers who were paying over $100 a month for a Foxtel subscription had deserted the network following the release of Netflix.
Speaking at the Australia-Israel Chamber of Commerce earlier Mr Freudenstein said that the projected 1.5 Million consumers who have switched to Netflix “was correct”.
“Think about it. Even if the speculation is correct about SVOD numbers in Australia and even if all those customers were paying, the total revenue for all SVOD services would be only around $150 million per year,” Mr Freudenstein said.
“That doesn’t provide much for programming investment compared to Foxtel’s or free-to-air programming budgets.”
By bundling channels across different genres such as sport, news, drama, entertainment, movies and movies, cable and satellite broadcasters can defray the cost of acquiring expensive programming, aggregating content in affordable subscription packages – a model many unprofitable streaming services, including Netflix, have struggled to replicate.
“One way to challenge disrupters is to take them on at exactly their own game,” Mr Freudenstein said.
“We will continue to invest in Presto and are very confident that it will be a success story of the new world of media. For people who love sport, who love quality drama, who love Australian programs or who want a width and depth of content across all genres, Foxtel is the answer.”
“But as recent Roy Morgan research points out, and as a report just published by Citi argues, that’s simply not the case. There will be significant growth for both Foxtel and SVOD services in the coming years,” Mr Freudenstein says.
“I believe that in the future a vast majority of Australian homes will have either Foxtel or an SVOD service and many homes will have both.