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Foxtel Under Fire From Amazon Channels

Under pressure pay TV provider Foxtel could soon face a new challenge from US internet services giant Amazon as the company looks to bring its channel aggregating television streaming service down under.

Amazon Channels is an aggregation service that sits on top of Amazon Prime Video, giving US Prime subscribers access to content from individual subscription television channels over the internet.

Amazon is now planning to bring the Channels service to Australia, according to the AFR.

The service could launch next year, but Amazon is facing a number of content licensing issues as well as doubts about the potential market size in Australia.

In the US, Amazon Channels hosts more than 100 channels including Showtime, HBO, Starz and Comedy Central, as well as Major League Baseball and NBA League Pass.

Customers pay per channel on top of their existing Prime subscription.

Apple is also set to launch its own a la carte offering within its TV+ streaming service.

Amazon executives reportedly met with local media executives last month, with talks taking place with representatives from NBCUniversal, BBC and Discovery.

Foxtel is a key contributor to the revenue of these companies and it’s believed contracts between the content makers and the pay TV service include clauses that mean Foxtel would have the opportunity to take advantage of any favourable licensing agreement offered to a competitor.

Talks between Foxtel and its content providers have reportedly been ongoing for a number of months as the company seeks to reduce its programming costs.

Other content providers on Amazon Channels in the US also have streaming agreements with local providers in Australia.

Showtime and Starz content is available on Stan, while CBS content is available through channel Ten’s All Access streaming platform.

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