Foxtel rises from the dead

As the global coronavirus pandemic rolled into town, Foxtel was facing a precarious future.

With sporting events across the globe put into hiatus, Foxtel – which has traditionally been heavily reliant on live sports to drive subscription growth – suffered a surge in cancellation requests.

The pain was hardest felt by Foxtel’s Kayo Sports streaming service, whose subscriber base plummeted from 402,000 in November 2019 to only 331,000 in May.

270 permanent jobs were also cut by management as Foxtel sought to dramatically lower its cost base amid falling subscription revenue.

However, the reboot of sporting events across the globe, alongside Australian households spending more time at home amid lockdowns, has driven a remarkable turnaround in Foxtel’s fortunes.

According to newly released data from Roy Morgan Research, Foxtel registered a strong 43.9% lift in viewer numbers (+2,363,000 viewers) in the year to September 2020:

In fact, all subscription television providers experienced strong viewer growth in the year to September 2020, with the overall market lifting by 16.2%.

With a reduced cost base amid the wave of redundancies, alongside strong viewer growth, Foxtel’s future is suddenly looking a lot brighter.

Unconventional Economist
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Comments

  1. Would like to see any change in Average Revenue Per User to complete the picture.

    Amazon Prime Video such crazy value if you’ll make use of any of their other services.. but then begs to suck in a great deal of spending from other retail platforms as users give way to the convenience of using Amazon for deliveries.
    An approaching iceberg for other retailers currently enjoying covid sales highs.

  2. Foxtel …. why would you? The model is still to pay a hefty amount for rubbish as a minimum – they offer the base line garbage including 50+ channels of Entertainment, Drama, Lifestyle, Docos, Reality & more (ie pure dross) for $39.20/month.

    Gated behind that you can add Movies for another $16/month or Sports for another $20/month or for $40/month more you can add sports/movies/kids.So $79/month. That’s crazy.

    Is the American sport the main attraction?

    • run to the hillsMEMBER

      I ended my Foxtel subscription a few months ago after being a subscriber for twenty odd years. I lasted one month and then signed up again, more out of laziness than anything else, I’m a technological Luddite and with a brand new TV I was struggling to navigate around the channels, the Foxtel menu is so much better, and yeah the US sports and AFL are the main reason I’m a subscriber along with UFC. I got a much cheaper subscription too.