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Foxtel shares first subscriber numbers since dropping prices last year

foxtellogo-234x108Foxtel’s subscriber base grew 4.7 per cent in the first half of the financial year with 118,000 more people joining the service, driven largely by the reduction in price and a focus on bundled services from 50 per cent owner Telstra.

However, Foxtel’s revenues were up just 1.2 per cent for the July to December half to $1.5bn, as declining ad revenues hit the broadcaster, with subscriptions revenue increasing by 2.9 per cent.

The telco’s half-yearly figures released today show the pay-TV giant has had some success in encouraging new members onto the platform after slashing prices in November as it faces challenges from a range of new streaming services.  

Telstra’s revenues from premium pay-TV services from Foxtel grew 8.4 per cent on the first half of last year, to $322m, however it’s revenues from its own T-box services were down by 17.6 per cent to $42m, with the company attributing the shift to more focus and subscriber growth in its premium bundle offering which includes more Foxtel channels than previously, which has hit the paylite model.

It also pointed to last week’s launch of its new ‘Triple Play’, bundling phone, TV and broadband services, as a means to drive more growth in the second half of the financial year, as well as the coming launch of the IQ3 box.

the telco also saw strong performances from its other media assets, posting a 4.4 per cent revenue increase on the same time last year to $405m. Whilst this was mostly driven by the Foxtel take up the company saw digital content revenue increase by 2.5 per cent to $41m, although admitted there had been a decline in mobile content.

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