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Optus & Telstra Sports Apps Put Pressure On Foxtel

Latest research from Deloitte claims pay TV providers (such as Foxtel) will face mounting pressure from telco streaming apps – e.g. Optus Sports and Telstra’s AFL Live.

Research claims one in five pay TV subscribers [who are considering cancelling their contract] are switching to sports subscription apps.

Deloitte’s Media Consumer Survey 2018 claims young men are most at risk of switching, with mobile streaming soaring.

The news comes as both Telstra and Optus pursue content delivery as a strategic differentiator, reflected in pricey broadcast/streaming rights.

According to Deloitte, 70% of Aussies admit content is a “major factor” when picking a telco.

Nearly 80% of respondents agree a telco’s content package is a major reason for staying with them.

Of 2000 individuals surveyed by Deloitte, 10% of men had a Telstra AFL Live subscription, with 11% retaining an Optus Sports’  service.

Paid streaming apps can be purchased separately, however, telcos typically bundle offering withs mobile/internet deals.

Whilst the news may be cautionary for Foxtel, its association with Telstra could provide relief. The telco retains a 35% stake in the recently merged Foxtel-Fox Sports entity.

Recent Roy Morgan numbers reveal Foxtel is the only major content provider to notch user declines, whilst Netflix and Stan have continued to accelerate.

The news follows Foxtel’s recent Channel 444 launch, which claims to be Australia’s first guaranteed 4K satellite TV channel.

Broadcast is expected to commence October, with a specific focus on sports, music and documentaries.

As previously reported, Foxtel is set to offer year-round cricket coverage, after securing rights from Cricket Australia.

Despite its recent revenue and subscription slump, News Corp has confirmed a Foxtel IPO is still on the cards, with “new momentum” instilled under CEO Patrick Delaney.

The “new Foxtel” is tipped to work closely with News Corp mastheads, providing increased cross-promotion opportunities.

CEO, Patrick Delaney, claims the new channel and set top box is the “first step” in Foxtel’s 4K future, with the service tipped to capitalise on the growth of 4K TVs.