Drowning under $2.5 billion of debt and losing thousands of subscribers amid the cancellation of sporting events across the world (including the 2020 NRL and AFL seasons), Foxtel was last month forced to slash costs by laying-off 200 staff and placing another 140 on furlough.
Now the situation has gone from bad to critical, with Foxtel yesterday announcing another 70 job cuts from its marketing and creative divisions:
“We have made more tough decisions this week which will see around 70 people from our marketing and creative team leave Foxtel,” said a Foxtel spokesperson.
“These are changes we had to make to face up to the impacts of COVID-19 on our business and a very different future for everyone involved in the media, entertainment and sporting industries”.
Sadly, the 270 job cuts are unlikely to be the last.
Foxtel is facing increasing competition from cheaper online streaming services, including Netflix, Stan, Amazon and Disney.
These online competitors are unburdened by Foxtel’s high cost base, including its legacy cable infrastructure and broadcast business. This high cost base has left Foxtel struggling to compete on price.
The upshot is that unless Foxtel can transform itself into a ‘lean and mean’ streaming service, it will continue to lose market share.
Outside of live sports and Foxtel’s exclusive HBO content, which it holds for the next two years, there is little reason for Foxtel to exist. The other service providers do subscription television better and cheaper.
