As several overseas streaming groups including Paramount and Disney report poor results local streaming operation Foxtel has reported a jump in streaming revenue with consumers taking to Kayo and Binge.

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.”

Total Foxtel Group subscribers of 4.662 million (4.585 million paid), was up 3% on the prior corresponding period.

Total streaming subscribers, including Kayo Sports, BINGE and Foxtel Now are now 3.039 million (2.963 million paid), up 11% year-on-year.

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

“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.

“BINGE paid subscribers grew 22% year-over-year, or 109,000 net adds from the last quarter, to nearly 1.5 million subscribers, benefiting from the successful release of The Last of Us “she said.

Ms Panuccio said: “As for Subscription Video Services, we continue to expect the Foxtel Group’s profitability in local currency for the full year to be relatively stable over the prior year despite a step up in sports rights costs in the second half related to annual contractual escalators.”

Foxtel Residential subscribers declined to 1.369 million.

Broadcast ARPU rose 2% to A$84 (for the three months ended 31 March 2023, year-on-year).

Residential churn improved sequentially and year-on-year to 12.3%

Thomson said: “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 “he said.