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Nine Hikes Stan Prices Ahead of Half-Year Results

Nine is expecting a boost to Stan’s subscriber base ahead of its half-year results report this week thanks to the Disney deal it inked in December and has hiked subscriber prices to cover its bases.

The half-year results report will be Nine’s first since its merger with Fairfax Media which gave Nine 100% ownership of the streaming video-on-demand platform.

Streaming platforms usually increase their revenue by investing more in content to increase subscriber numbers or by increasing the cost of subscriptions.

According to the AFR, Nine-owned Stan’s active subscribers were 1.1 million in August 2018, which is expected to increase due to the peak summer period and the Disney deal, and homegrown original titles like Bloom.

It is unsure whether the launch of Disney’s upcoming streaming platform Disney+ will affect the company’s relationship with Stan.

Although Nine CEO Hugh Marks hopes that Stan could be “the home of Disney in Australia”, it might be a short-term let.

In addition to the new content, Stan’s subscription plans have also increased.

Its basic plan remains $10, but its standard plan has increased from $12 to $14 a month and its premium plans from $15 to $17, similar to Netflix’s basic for $9.99, standard for $13.99, and premium for $17.99.

Nine’s share price has fallen since the Nine-Fairfax deal was finalised in December, but Stan increased its revenue by nearly 72% to $97 million during the 2017-18 financial year.

Many analysts will be scrutinising Thursday’s results to see if Stan reports a boost, or breaks even.


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