Packer ‘ready to exit Foxtel if the price is right’
James Packer is ready to exit his investment in Foxtel if he can get a good price, The Australian reports.
According to the newspaper, Packer – who only recently bought a stake in Ten – “is uncertain about the medium-term outlook for the pay-TV industry”.
Packer owns just under half of Consolidated Media Holdings which in turn owns 25% of Foxtel and 50% of Fox Sports.
According to The Australian, Packer “has grown tired of the heavy-weight personality clashes that are a regular feature of the Australian media landscape.”
My gut feeling is that the young Mr Packer has reason to be worried.
Foxtel is about using a broadband connection for one purpose only: delivering streaming video, with viewers able to select from a limited menu of programs broadcast simultaneously to everyone. The pay TV industry is highly regulated.
The National Broadband Network is a broadband connection that any player, new or old, large or small, can use to deliver any video content they want at any time. The industry is much less regulated.
From a consumer’s point of view, why would I pay for a service that only lets me choose from the material that a middleman chooses to offer, when I could pay for a service that allows me to connect to access material directly from the producer? A prime example is being able to watch Al Jazeera.
Further to Stilgherrian’s post – the BBCs iPlayer service is set to be opened up to an international audience this year which will well and truly start the land-grab by content producers worldwide.
A $200 BluRay player currently brings ABC and SBS catchup, among others, direct to my loungeroom telly with more ‘channels’ being added on a regular basis. New TVs have this facility built in without the need of an external box.
Broadband technology is making Foxtel’s cable redundant. Time to bail James!