Two years is a long time in the world of video-on-demand (VOD) streaming.
At the beginning of the pandemic, Foxtel’s future was under threat after shutdowns around the globe cancelled sporting events. In turn, a massive number of subscribers cancelled their Foxtel subscriptions, culminating in hundreds of Foxtel staff being cut in a bid to lower costs and remain solvent.
Since those dark days, Foxtel has clawed its way back into profitability.
It began when Foxtel outbid local streaming rival Stan for exclusive rights to Warner Bros, WarnerMedia and HBO content. This bolstered Foxtel’s exclusive line up, whereas Stan lost various WarnerMedia programs from its platform.
Stan’s troubles were then compounded in June 2020 when it also lost an exclusive deal with ViacomCBS to stream Showtime content, thus stripping it of even more content.
Then Foxtel launched its Binge streaming service, which has proven to be popular.
The proof is in the pudding with the latest user numbers from Roy Morgan Research showing Foxtel’s viewership surging 23.9% in the year to October 2021, versus a decline of 4.0% for Stan:
My family has basic subscriptions to:
- Netflix;
- Foxtel Now (primarily for news);
- Amazon Prime;
- Stan; and
- Apple TV.
Out of the above, Stan’s and Apple’s offerings are the weakest for their cost with Netflix and Amazon providing the best value for money.
Stan desperately needs more exclusive content to bolster its line-up and incentivise people to subscribe. Otherwise, Stan faces a precarious future in Australia’s increasingly congested VOD streaming market.
