Miscellaneous

22

Foxtel plunges into subscription death spiral

Foxtel is desperately pushing back against a tidal wave of customers seeking to cancel their subscriptions. Last week the company opened up its content library to Foxtel Now subscribers until 31 May. It also launched 15,000 hours of on-demand sporting content on Kayo Sports, including replays of live games, documentaries and sports entertainment. Over the

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Sunday Supplement: 29 March, 2020

Tom Roberts, Shearing the Rams, 1890, National Gallery of Victoria   Macro & Markets Petrostates Hammered by Oil Price Plunge and Pandemic’s Spread – Bloomberg Coronavirus and the economy: World ‘clearly’ in recession, IMF says – DW The world’s on the brink of running out of places to put oil – Financial Post Global oil

17

Foxtel dies of the virus

As we know, the widespread cancellation of sporting events across the globe has dealt a serious blow to Foxtel’s viability, whose only competitive advantage rests with televising live sporting events. In particular, the cancellation/postponement of the 2020 AFL and NRL seasons has been particularly devastating for Foxtel, given these are the jewels of the company’s

6

While Netflix booms Foxtel busts

As we know, Foxtel is heavily reliant on sports programming for subscription revenue. Thus, the cancellation of most live sporting events across the globe will have a major impact on its bottom line. Foxtel’s dedicated Kayo sports streaming service will be hardest hit, as advertising revenue is expected to fall sharply as more companies pull

16

The death knell tolls for Foxtel

With Foxtel already reeling from the AFL postponing its season until at least 31 May, the NRL yesterday also postponed its 2020 season indefinitely. AFL and NRL are undoubtedly Foxtel’s jewels when it comes to live sports broadcasting. Therefore, the closure of both codes presents a death blow to its Kayo Sports streaming service, whose

34

Consumer confidence dies

ANZ-Roy Morgan Australian Consumer Confidence: plunges. All sub-components are well below average and well below the levels of the GFC. Only the 1990-91 recession is comparable. #ausecon #ausretail @roymorganonline @DavidPlank12 pic.twitter.com/2urGojYuae — ANZ_Research (@ANZ_Research) March 23, 2020

11

The hits keep coming for Foxtel

Last month it was revealed that subscription numbers to Foxtel’s Kayo Sports had dived from 402,000 in November to just 370,000, a decline of 8%. However, the result was dismissed by News Corp chief executive, Robert Thomson, who claimed that Kayo Sports would experience a sharp pick-up in subscriber numbers once the AFL and NRL

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Sunday Supplement: 22 March, 2020

A surplus of optics, Bridgid McLean, 1976, Art Gallery of NSW    Macro & Markets Fed Going All In to Save Economy. Here’s What Could Come Next – Bloomberg The Most Realistic Economic Forecast Is Awful – Bloomberg, Kocherlakota When the Ice Melts, the Bears Have to Move – Bloomberg Authers Universal Basic Income is

6

Foxtel dealt another death blow

Foxtel’s great hope – its Kayo Sports streaming service – has begun 2020 in a terrible state. Kayo’s subscriber base dived to only 370,000 as at February, down from just over 400,000 in November 2019. This month it also lost its Rugby rights to Optus Sports, which has more than double Kayo’s subscribers, and follows

86

How quickly will COVID-19 spread throughout Australia?

The Grattan Institute has provided growth projections for the spread of coronavirus throughout Australia, based on the experiences of other infected nations: …as the Figure below shows, the coronavirus continues to grow rapidly in Australia. We are still on the ‘scary’ part of the curve. As of yesterday, we had 449 confirmed COVID-19 cases. Italy

15

NSW hospitals stretched even before virus outbreak

Over recent days I have argued that Australia’s hospital system is poorly placed to deal with the coronavirus outbreak given it has only 3.8 hospital beds per 1,000 people –  only slightly better than Italy and less than one-third Korea and Japan: This morning it was revealed that NSW’s hospital system was already under acute

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Sunday Supplement: 15 March 2020

Isolation, Tim Storrier, 1978, Art Gallery of NSW   Markets & Macro The Federal Reserve Needs to Cut Rates to Zero Now – Bloomberg, Duy Bond Market Mayhem Lives On in These 10 Charts – Bloomberg The cost of coronavirus in terms of interrupted global value chains – Bruegel Three macroeconomic issues and Covid-19 –

8

Video streaming giants decimate Foxtel

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

632

Sunday Supplement: 8 March 2020

Through the gum trees, Toongabbie, Hilda Rix Nicholas, 1920, Art Gallery of NSW   Markets & Macro Will the new coronavirus spell the end of globalization? – DW, Bohme Vital Signs: Australian and US rate cuts underline seriousness of the coronavirus crisis – The Conversation Spiraling Virus Fears Are Causing Financial Carnage – NY Times Oil

20

Optus pounds Foxtel into submission

A few years ago, Foxtel lost the broadcasting rights for the English Premier League to Optus Sports. And now Optus Sports looks set to steal the rights to televise rugby from Foxtel: Optus is favoured to become the new home of rugby… Current broadcast partners Fox Sports have not signed RA’s nondisclosure agreements and will

197

Macro Afternoon

Much more optimism in Asia today as risk followed Wall Street’s big lift overnight with strong bids across all the major bourses. Gold remains stuck at last night’s high while the USD is still weak against most of the majors, although it seems the panic buying of Aussie isn’t being sustained as much as the

18

Foxtel is slowly dying

Foxtel CEO, Patrick Delany, has attempted to put a positive spin on the loss of subscribers from its basic packages, telling a Future of TV Advertising conference in Sydney that these are “low-value” customers the company didn’t want anyway: Foxtel’s churn is coming from low-value customers the company “shouldn’t have chased” because they were paying

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Sunday Links: 1 March 2020

A Woolshed, Victoria, 1889, John Mather, Art Gallery of NSW   Macro & Markets Coronavirus contagion spawns climate of panic on share markets – ABC, Verrender Central banks may mount a coronavirus rescue. It may not be enough – Reuters From the Fed to Bank of England, central banks must up their game – Guardian

21

Foxtel fights losing battle with Kayo sports

Foxtel CEO Patrick Delany has defended the pay-TV group’s Kayo Sports streaming service, after its subscriber base declined in the December quarter. Delaney argues that four of the five major sports in Australia end their seasons in September, thus Kayo can expect to have fewer subscribers in a period when cricket is the only major

6

Macro Morning

By Chris Becker  Fear is gripping stock markets with another major rout overnight in Europe especially, but then followed through on Wall Street. Across the board, stocks lost between 3-5% with a repeat likely here in Asia on the open today. The USD continued to fall against the majors, Euro in particular as the Aussie

17

Foxtel’s outlook is terminal

The future of Foxtel’s pay-TV is terminal according to telecommunications expert, Paul Budde: For a range of reasons, Foxtel never took off in Australia. It predicted a 75% penetration by 2000, however, at its peak, it has never exceeded the 30-35% mark. Best indications are it currently stands just below 25%. The company has basically

37

Israelis don’t trust Australia’s Coronavirus quarantine

With the coronavirus pandemic spreading, Israel has added Australia to the list of countries from which returning travelers will be required to enter quarantine: “We are prepared to prevent the spread of the coronavirus in Israel,” Prime Minister Benjamin Netanyahu reiterated during an emergency meeting at the Health Ministry in Tel Aviv Sunday in an

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Sunday Supplement: February 23 2020

Toy boys, 1990, Geoffrey Ricardo, Art Gallery of NSW   Macro & Markets In next downturn, Fed may opt for quick, strong action – Reuters The World’s Biggest Economies Get a Jolt of Government Spending – Bloomberg If slowing growth, unsound financial systems and the coronavirus don’t trigger a market meltdown, central banks will –

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Sunday Supplementary Links – 16 February 2020

Australian Head, to do with the blue, Michael Ramsden, 1974-79, Art Gallery of NSW   Macro & Markets Funds Face Trillion-Dollar Hit on Negative-Yielding Debt Pile – Bloomberg The World Is Conspiring to Make Gas Cheaper – Bloomberg…except in Australia… Coronavirus likely to infect the global economy – Harvard Gazette ‘Black swan’ coronavirus casts its

20

NOAA: Hottest global January EVER!

Via NOAA: In the span of 141 years of climate records, there has never been a warmer January than last month, according to scientists at NOAA’s National Centers for Environmental Information. What’s more, the temperature departure from average was the highest monthly departure ever recorded without an El Niño present in the tropical Pacific Ocean. January

13

Foxtel shuffles deckchairs on streaming Titanic

Foxtel has reshuffled its senior executive team in a bid to reset its operating model: Foxtel has reshuffled its senior executive team, promoting Les Wigan and Lesley Portwain to newly created roles across its broadcast and streaming operations, reporting to chief executive Patrick Delany… Mr Delany said the departure of Mr Smith gives Foxtel the