New data from AMPD Research suggests that the Disney+ streaming service has gained about 1.2 million Australian subscribers since its local launch in mid-November, easily surpassing Foxtel’s 700,000 total streaming subscribers. Netflix (5.6 million), Stan (1.6 million) and Optus Sports (800,000) are also in front of Foxtel, wheres Amazon Prime (700,000) has drawn level:
The force appears strong with Disney as new analysis shows the US media giant has accrued 1.2 million subscribers in Australia for its streaming service, less than five months after it launched…
Mr Couto said Disney+ had a strong debut, but other streaming services, including Netflix, Stan and Kayo continue to add subscribers, noting Stan had added 100,000 subscribers in the half despite losing Disney content in November and is now adding to Nine’s profits…
At the end of February, AMPD estimated Netflix had 5.6 million paying subscribers, Stan had 1.6 million, Disney+ 1.2 million, Optus Sport had 800,000, Amazon Prime Video had 700,000, Kayo had 400,000 and Foxtel Now had 300,000.
Adding to Foxtel’s woes is that subscribers numbers across its entire portfolio of subscription offerings are declining.
Foxtel’s traditional high-margin Pay-TV subscriber base was 2.268 million as of December 31, down from 2.326 million in the September quarter.
Foxtel Now – a streaming version of Foxtel’s traditional broadcast business – had 334,000 paying subscribers as of December 31, down from 375,000 in the previous quarter.
Whereas Foxtel’s Kayo Sports had just 370,000 paying subscribers last month, down from 402,000 as at November 2019.
Thus, while all other video-on-demand services are experiencing growth, Foxtel’s business is in decline.
To add insult to injury, Foxtel’s average revenue per user is falling as consumers ‘cut the cord’ and move away from its traditional Pay-TV business to cheaper, lower margin video-on-demand services like Foxtel Now and Kayo.
Thus, the financial future facing Foxtel is looking grim as consumers’ viewing preferences change and competition from video-on-demand streaming services intensifies.
Slowly but surely, Foxtel is losing the subscription war to the internet.
