After years of being offered sub-standard content at inflated prices, Foxtel has announced that it will halve the cost of its basic package, and expand content to its existing customer base, in a bid to head-off emerging competition from online streaming services, like NetFlix. From Sky News:
The pay-TV operator will cut the price of its entry-level cable and satellite offering from $49.50 to $25-per-month in a bid to draw new customers.
It will also hand existing customers a range of extra channels and content for free, Foxtel chief Richard Freudenstein announced on Tuesday.Speaking at the pay-TV industry’s annual convention in Sydney, Mr Freudenstein acknowledged that many Australians feel Foxtel is too expensive.
‘We are confident that these strategies will initiate a new era of growth,’ he said.
‘We want Foxtel to be part of the daily lives of millions more Australian households.’Foxtel is facing unprecedented pressure to cut prices and boost content because of the growing availability of cheaper alternatives delivered over the internet…
The shake-up follows Foxtel’s decision in August to halve the monthly price of its Presto movie-streaming service from $20 to $10.
Still nowhere near cheap enough in my view, particularly given Australian consumers can easily access the far superior Netflix from the US for around $15 per month, comprising both the subscription and virtual private network membership.
Nevertheless, it’s good to see Foxtel competing harder for customers and offering a better deal. Foxtel’s market penetration has been weak by international cable standards, with its 2.3 million subscription base flatlining over the past number of years (despite the growing population). This can mean only one thing: that Foxtel is considered to be too expensive and does not offer value for money.
Long live competition!
