Foxtel’s price drop is not a defensive move, it’s an attack
In this guest post ZenithOptimedia boss Ian Perrin argues Foxtel’s recent move to halve its basic package prices is not just to defend it from the threat of new streaming services.
There has been much made of the substantial reductions in Foxtel pricing announced recently. It appears that most of the sentiment suggests that this is a defensive move, designed to take on the multiple streaming services ready to hit our shores. This may well be the case, but my belief is that it’s the opposite.
It’s actually a bold, offensive play designed to actively target the free-to-air networks.
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Nup. Foxtels pricing change is a too-little too late cowardly defensive move…..
As chicken little said: the sky is falling the sky is fallen the sky is falling.
Or if speaking Foxtel – Netflix is coming Netfix is coming Netflix is coming.
After a decade of burning and churning it’s long suffering subscribers, Foxtels database is not worth squat .
Foxtel does not own nor have a loyal fan base. Foxtel is expensive and the only reason it is dropping in price is to try and deter Netflix coming to Australia ! Well that has not worked and interestingly customers will get used to lower fees for the same stuff ensuring that the average return will become the norm not the exception – that’s it lower ARPU and lower revenues.
Welcome Netflix – you have my attention !
Foxtel still has to protect its legacy business. While streaming is one of the fastest growing sectors in media and entertainment industry it poses a major threat to free to air.
I agree that customer data is vital and subscription TV definitely has the advantage here. As broadcasters face the prospect of declining advertising revenues with consumers switching their viewing to streaming, companies like Netflix and Quickflix will be the ultimate winners
“I’m not paying any money to watch all those funeral insurance ads, ” former hard-core Foxtel user (and grandmother).
That was a slice of half? How astronomical were the prices before that?
I got the new prices in my junkmail this weekend. Just the basic movie package would cost me more than if I actually go to the cinema once per week (admittedly that’s only because of ambassador card) – but still…..freaking expensive for a price “slash”
Thanks Ian, can you please log into My Account https://www.foxtel.com.au/got/login.html?realm=External
We’ll cookie you and with our data management platform, not only will we not serve you acquisition ads, we’ll promote features and content relevant to your interests which we’ll assertion from your browsing history 🙂
Ed