Foxtel Future Secured, As Secret New Drama Streaming Service Revealed
Korean Media has revealed that Foxtel has locked in their financial future with the refinancing of $1.6bn of debt, it’s also been revealed that a project code-named Ares will see a new drama streaming service launched in Australia by Foxtel next year.
$200M of that debt has come from South Korea’s Hana Financial the rest is believed to have come from local and international banks, Telstra a shareholder in Foxtel has failed to provide any refinancing support as they struggle to hold onto market share in the broadband and mobile markets.
The debt facility adds to a total of $US700m in loans provided to Foxtel by News Corp who own the majority share in Foxtel.
Under the management of CEO Patrick Delany, Foxtel has rebranded its business with an emphasis on streaming through its iQ4 and new remote that includes a Netflix button, they have also launched new streaming services such as Kayo, which is proving extremely popular, with 443,000 subscribers.
Analysts claim that the refinancing deal provides more scope for Foxtel to lock in content deals.
News Corp chief financial officer Susan Panuccio told the Australian that “As part of the refinancing, News Corp has contributed an additional $US200m loan and the new financing will extend maturities for at least three years and importantly, provide Foxtel with ample liquidity and flexibility to execute on its strategy,” Ms Panuccio said.
Kayo last week won the inaugural SportsPro OTT Awards for the best user experience, beating finalists Red Bull TV and German streaming service Magneta TV.
Kayo Sports chief executive Julian Ogrin said, “No one else in the world is delivering this quantity of live streams across so many different sports to their customers,” Mr Ogrin told The Australian.
“To do so while maintaining an exceptional user experience is a true testament to the Kayo team and best in class partners we work with. We are particularly proud to pick up this award as the user experience is at the heart of everything we do.”