Foxtel forced to compete with online rivals

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By Leith van Onselen

After years of offering Australians sub-standard content at inflated prices, Foxtel was finally forced to compete with the entry of on-demand streaming services like Netflix and Stan.

Prior to these players entering the market early last year, Foxtel halved the cost of its basic package, and expanded content to its existing customer base, in a bid to hold onto market share.

Today, it has been revealed that Foxtel will offer no contracts and equipment-free packages from December in a bid to attract price-sensitive customers. From The Canberra Times:

Foxtel will start offering monthly passes priced around $15. It may also offer day-passes and game passes in coming months…

Mr Tonagh also announced a new content deal with HBO that will give subscribers access to the back catalogue. He said this gave Foxtel more HBO content than Netflix…

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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 around 3 million subscribers only.

Long live competition!

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.