Broadcast options for Australian Rugby

[LeCheese]

I dare say whoever buys it will sunset the old school Foxtel boxes.

Go gently into the dark night, sweet prince...

View attachment 20209

From April:

Foxtel has 3.1 million streaming subscribers across Kayo, Binge and Foxtel Now. But those streaming customers each add very little revenue. They make up 66 per cent of Foxtel’s “customer base”, but just 23 per cent of its revenue. Foxtel’s 1.5 million set-top box customers contribute 63 per cent of its revenue.

 

[Wilson]

anyone post the main body of the article? my paywall removers aren't working.

It's covered throughout the nine/fairfax papers if that helps:

News Corp looks to sell Foxtel as streaming competition heats up

Australia’s storied pay TV operator and owner of Kayo and Binge is up for sale, News Corp’s global chief executive has revealed, following third-party interest and a strategic review.

www.brisbanetimes.com.au

 

[JRugby2]

From April:

 

[Rob42]

I wonder if the AFL and NRL have any clause allowing them to re-negotiate if Foxtel's ownership changes?

 

[Braveheart81]

Might be ignorant of me but hasn't it already been proven that breaking it up is probably the way forward? Kayo is successful, Binge isn't a bad platform with decent content and I know there are other ones as well such as lifestyle packages.

Someone may buy all of them to try an up-sell customers.

They would have to ditch Foxtel if they did that wouldn't they?

Binge and Kayo can exist separately under different owners because they don't have a crossover in content but Foxtel having both sport and other wouldn't work in terms of content rights if it wasn't under the same umbrella as Kayo and Binge.

 

[Braveheart81]

I dare say whoever buys it will sunset the old school Foxtel boxes.

Go gently into the dark night, sweet prince...

View attachment 20209

Is that side of it pretty profitable though? You provide someone with what is essentially now a hard drive with an Smart TV app now that it is all just broadband internet based and charge them a significant premium over what you charge for Kayo etc.

There's a solid lazy tax there I think. You may as well milk it until it runs out.

 

[The Ghost of Raelene]

Is that side of it pretty profitable though? You provide someone with what is essentially now a hard drive with an Smart TV app now that it is all just broadband internet based and charge them a significant premium over what you charge for Kayo etc.

There's a solid lazy tax there I think. You may as well milk it until it runs out.

Was preying on the set and forget model a lot of people fall into with services, insurance, gym memberships and alike.

Even the most tech challenged or stubborn are adapting to smart phones and figuring it all out with the ease of the UX.

Foxtel don't even want the boxes back now when someone cancels. Felt like they tried to re box it as this Hubble TV thing but besides giving that to your grandparents so they don't have to fuss over anything I don't really see the point of it.

 

[JRugby2]

Was preying on the set and forget model a lot of people fall into with services, insurance, gym memberships and alike.

Even the most tech challenged or stubborn are adapting to smart phones and figuring it all out with the ease of the UX.

Foxtel don't even want the boxes back now when someone cancels. Felt like they tried to re box it as this Hubble TV thing but besides giving that to your grandparents so they don't have to fuss over anything I don't really see the point of it.

Lots of people getting about with an Apple TV (guilty) or google/ amazon equivalent. This was just Foxtels way of getting in the game.

 

[SouthernX]

I dare say whoever buys it will sunset the old school Foxtel boxes.

Go gently into the dark night, sweet prince...

View attachment 20209

Buckley chance IMO. (Maybe that remote but not the new IQ boxes)

the cable tv set box is making a comeback in someways due to the pricing/content issue surrounding multiple streaming services

Cable tv will die one day as millennials replace boomers but that day is not here yet

 

[Strewthcobber]

I wonder if the AFL and NRL have any clause allowing them to re-negotiate if Foxtel's ownership changes?

That's pretty much what the new owner would be buying

 

[Jets]

They also have the strategy of making you wait on the phone for over two hours to cancel Foxtel. All the other services let you log in and click a button.

 

[LeCheese]

the cable tv set box is making a comeback in someways due to the pricing/content issue surrounding multiple streaming services

In theory yes, but the numbers suggest otherwise with steady year on year declines. It does seem to be plateauing a bit, but I suspect this is related to existing customers as opposed to returning.

 

[The Ghost of Raelene]

Adoption of new methods has probably exhausted as well. You'll just see it very slowly creep down (set top box) over the next couple of decades.

Happens with all new tech. An initial rush then a progressive death of the traditional method.

 

[liquor box]

That is indeed massive. The Fox Sports - News Corp axis has been so successful for NRL and AFL, with each feeding content into the other.

Could they afford to break up the various parts of Foxtel to sell off? Would anyone be interested in buying the whole thing, a relic of pre-Netflix cable TV times?

I would imagine CH9 would be interested in purchasing the sports channels from Foxtel to merge with Stan.

 

[KOB1987]

I would imagine CH9 would be interested in purchasing the sports channels from Foxtel to merge with Stan.

I think they would be interested in in the binge catalogue as well, then they could split Stan into 2 separate platforms. If I could get rugby, cricket, NFL, horse racing, and the occasional game of jail rugby all on one service I would be the happiest bloke in Central NSW

 

[Slim 293]

I think they would be interested in in the binge catalogue as well, then they could split Stan into 2 separate platforms.

Nah, HBO Max will be launched in Australia eventually which will kill Binge.

And the rest of Fox’s content is already under the umbrella of Disney+.

 

[PhilClinton]

I keep hearing murmurs that ESPN+ will be operating here soon under the Disney app as well. That will potentially pull most of Fox’s international sports content away.

 

[Strewthcobber]

Probably to be expected for an afternoon game, on a secondary channel while the Olympics is on, but the Aus v SA game at Suncorp didn't make the top 30 programs on FTA TV last night.

Average rating was 204k

They also had the lowest rating game of AFL for the year on Sat night

 

[Rob42]

I keep hearing murmurs that ESPN+ will be operating here soon under the Disney app as well. That will potentially pull most of Fox’s international sports content away.

That has been rumoured for a long while, I wonder what the delay is?

 

[Rob42]

Why this could be Murdoch’s last chance to sell Foxtel

Foxtel’s cable business has been ‘Netflixed’ by the tsunami of streamers, and having demurred from a deal in 2020, News Corporation can’t afford to knock back suitors this time around.

www.smh.com.au

Per SMH, the average set-top box subscriber is paying Foxtel $90/month. I assume any Netflix subscription, etc, would be on top of that.

They figure the amount paid will be nominal because of the debt that Foxtel holds, paying interest back to News Corp and Telstra.

And the likely buyer is a US-based PE firm, who have history in rummaging the bargain bin for unloved assets - they previously bought Sensis from Telstra (remember that name?).