Netflix is good for us, says Foxtel CMO
Foxtel CMO Andy Lark doesn’t see Netflix as a competitor as the subscription TV provider looks to retain customers with its 4k television offerings and attract new customers with its own streaming services, the veteran marketer told a conference in Sydney.
“Netflix sells in a different market to what Foxtel sells to,” said Lark. “We sell to premium home-based subscribers who typically want a lean back experience and a shared family experience. Netflix doesn’t.”
Despite the differences, Lark – who joined the company in January – said Netflix was good for Foxtel.
“Netflix stacks onto us, Netflix is actually is good for us as it encourages more people to video consumption,” he told a panel at the ADMA Global Forum in Sydney.
“Who here can truly say they can get everything they want from Netflix?,” Lark asked. Approximately six people put up their hands.
“See, there’s around 3% of the room,” said Lark. “That’s great for that 3% but that’s not our target audience. It’s so important as a marketer to know who our market is.
“The hardest thing to do as a marketer is understand the customer you do not serve.”
Lark’s comments come at a time when Foxtel is losing ground to streaming services including Netflix.
When asked by Mumbrella who he saw as being Foxtel’s new customers, Lark said: “There’s a part of the market that wants a pure, lean mobile experience sub $15 that wants to hop in and out of the market.
“So they only want to pay when there is something to watch so they’ll go ‘Okay, I’ll subscribe to Stan because I want to watch Billions, but there’s nothing else I want to see.” he said.
“That’s an interesting part of the market which we’ve addressed with [Foxtel] Now which is growing very quickly for us. We have some more really exciting products coming in the OTT streaming space.
“We launched Foxflicks yesterday, which at first is available as part of the Foxtel subscriptions. If you’re large like us, you can start applying yourself in those other things really effectively and efficiently, but you have to stay true to your customer.”
Lark was enthusiastic about what 4K television will deliver for Foxtel, having announced a dedicated 4K channel featuring cricket slated for an October launch: “When you see 4K content you’ll never go back.
Foxtel announced earlier this year it would be moving from cable delivery to satellite, with a spokesperson telling Mumbrella it was the best option for high quality video images watched on the large screens in homes and other venues.
“The only way you can reliably get 4K is through satellite,” Lark said.
Earlier, Lark spoke about how he sees disruptive forces effecting incumbent businesses and how he thinks the challenges are usually overstated.
“I think disruption’s a funny word,” he said. “I’ve been on both sides of this, building startups, funding startups, building highly disruptive businesses and working at traditional businesses and really the effects of disruption are vastly overstated relative to time and effect.
“It takes 10 to 15 years for technology to make its way into the mainstream, it takes another 10 or 15 years for business models to evolve.
“When you look at the entertainment business today it’s fascinating. We’re in the golden age of video and video is the dominant consumption model. Today more people will watch television than anything else.
“More people will enjoy correctly measured long-term television experiences than they will watch any other medium. What it really comes down to is that it’s not a battle between streamers versus TV, it’s a battle of stackers versus TV.
“More people started watching television in America than streamed. More people are connecting paid TV services than streamed. The reason is the stackers are basically aggregating all of the streaming services which doesn’t make much money at all,” he said.
“Meanwhile the large players are aggregating content at scale,” Lark continued.
“There’s a long history of company like this – Target saying we don’t fear Amazon, Toys ‘R’ Us saying that and two years later being in bankruptcy. Blockbuster saying Neflix is not a threat.
“The hardest thing for marketers is zooming out and saying ‘The people I work for really get it.’ Because if they don’t, it’s best to go somewhere else.
“If the guy or the girl driving the bus is driving it over a cliff, then get off the bus before it goes over the cliff.”
And this passes for marketing intelligence…
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The only app that doesn’t work on my Android phone since it updated to 9.0 Pie is Foxtel. No help from their support team even though there are 100’s of comments by users.
It’s the most hopeless streaming service.
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Foxtel execs have been repeating this same stupid line for years while their sales tank through the floor. You’re not just competing with Netflix, there’s a whole market of players with a better product.
But Foxtel will just keep spending millions on door drops and press inserts instead of investing in their technology. If they realised a decade ago that they were now a really bad software company and had to become a good one they might have survived. They can’t bail water quickly enough to save this rotten ship.
Revenue is an addiction that can kill.
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This is a moronic comment of the highest order. Mr Lark would be wise to actually sit with customers one evening and hear the frustration around the content and the means to discover it that is the Foxtel experience.
Netflix refreshes content regularly based on viewer behaviour. Many of Foxtel’s channels can go months without new content or play the same thing 4+ times a week. Just last night, Lifestyle was playing an 9 year old episode of Selling Houses Australia?!
Foxtel are masters of giving you a myriad of choice, but not much you’d actually choose to watch. Occasionally you’ll stumble across something decent, but channel surfing = frustration as a means of discovery in 2018.
Personally, Netflix is a no brainer at $12 a month. Foxtel at $49 a month is definitely not and I only keep it because it gives me reception for channels I can’t otherwise get in my apartment block.
As for 4K – Foxtel is years late on this. And if history is any indication it’ll probably be compressed at a low bitrate anyway.
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we cancelled our subscription this year. We had been with foxtel since it first was released. We can get Netflix, Stan NHL TV and a few others and still have change for a slab of beer for what foxtel were stinging us a month. Offering all these incentives to join up but bugger all to customers that have been with them forever. Its called complacency and it will kill your business.
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People love to complain about Foxtel, but while Fox Sports is as strong as it is, people will still subscribe. Whether you like it or not.
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Spin all you want Mr Lark, your product is out dated and way too expensive considering what other options are there.
You’re quite right that Netflix doesn’t usually satisfy all entertainment needs, that’s why consumers choose from several other cheap options (Stan, Amazon, iTunes) to add on…which at the end is still way cheaper (and way more enjoyable to deal with) than the Titanic you’re currently sunbathing on.
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Hhmmm,
“It takes 10 to 15 years for technology to make its way into the mainstream”…..do I need to say more? This was then followed up by Andy’s own example of Blockbuster not reacting to the threat of Netflix, 2 years after Netflix was introduced? Sorry….I can’t do that math, isn’t 2 years less that 10 to 15 years? – I can’t count that high!
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Tell him he’s dreaming
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Completely delusional – iTunes and Netflx provide all the entertainment my family of 3 kids requires. The ONLY thing I miss is Fox Sports but since they lost the EPL there is little point and I’d rather go to the pub or the live game for Rugby and AFL…Thanks but no thanks Foxtel you can keep your 1980s roof top satellite dish
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Incredible and reverse of what foxtel really thinks – they are totally freigtened to their core that netflix has a much higher customer NPS (it’s a better product, easier to find content) and the defensive position of Foxsports and this nonsense of 4K being a wow factor 3 years late to the market is just more spin. The 4K box already existed and was shipping in February 2018 to satellite customers but only a marketing gimmick to link to the disasterous cricket decision. the good news is there’s only another 15 months until the next CEO is implanted based on the last 5 years trend which also means a new CMO, new CCO, new COO yet again in the revolving Holt Street leadership door.
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Making a (delusional) statement publicly does not make it true.
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Is this like Kodak welcomed digital cameras?
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Anything that competes for a viewers attention is a competitor to Foxtel and assuming otherwise is a mistake. I find it hilarious that Foxtel obsessively focuses on everything but the content i.e. the main reason people will watch.
Invest in amazing storytelling and then market it.
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Mum said it was funny how one day you’re not famous, and the next day you are. Famous. And then you’re not again.
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Love how Lark ignores the 10 tonne elephant that is advertising. Not only do you pay a fat subscription fee, you suffer through a relentless amount advertising on Foxtel.
He either hasn’t read the customer research or believes it’s not a problem.
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Got 12 months worth of Foxtel free with my mobile plan.
Spent 30 mins trying to make it work, gave up. Never used it since.
They’re having a right laugh.
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“Netflix sells in a different market to what Foxtel sells to,” said Lark. “We sell to premium home-based subscribers who typically want a lean back experience and a shared family experience. Netflix doesn’t.”
what utter nonsense
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Sure your not worried Andy, sure your not………
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I’ve had foxtel for years, Netflix has replaced it in our household in all categories apart from sport.
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What a Lark’ing idiot!
Why is it everyone can see what Andy can’t and yet he’s in charge of growing Foxtel’s subscriber base.
Mad…. !
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Actually, he’s probably not worried at all…on a personal level that is. He’s had CMO jobs for a fair while now, sure he’ll get another when/if this one passes… the Super will be stacked, tidy investment portfolio… No drama’s (and that doesn’t relate to the lack of serious programs on foxtel either)..
As for Foxtel… lots of drivel on there… if it wasn’t for sports I’d be out of there.
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He’s Lark’ing mad
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This is why people hate Foxtel. Arrogant, delusional, out of touch, and ultimately full of shit.
CMO must stand for couldn’t market out of a paper bag.
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This chap must be skyLarking!
BOOM
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Yeah foxtel to expensive for so little in return AFL crowds don’t turn up at the grounds and not interested in watching on TV as well . So foxtel stop being delusional there is lots of entertainment choices out there now…
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“NeTfLix iS goOd FOr uS…”
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Competing in a different market? You’re competing for the finite $$ for entertainment of the average Australian family with cheaper, better quality options out there.
I look forward to these comments being dredged up in 2, 10 or 15 years.
Knows how to write a headline this bloke!
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The only reason Foxtel still exists in my household is that my wife wants something that just works when you turn it on IQ3 wrecked that model it’s been a disaster since it was implemented. I pay over $160 a month for 3 boxes and tbh I’m going to give the IQ4 a try but if the experience is anything like the IQ3 goodbye from a 20 year customer.
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“Netflix not a “lean back” experience”. Oh, okay then (stops reading….)
And who doesn’t want a Satellite dish instead of that annoyingly invisible cable? #dreamin
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Rubbish. EPL rights meant that despite their failings, Optus Sports caused tens of thousands of Foxtel cancellations.
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You’re straight up incorrect mate.
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If they are so customer focused, why no native Apple TV app (when all of their competitors have one)?
A bit delusional to be releasing their own hardware when people have clearly spoken and are cutting cords for OTT experience where & when they want it
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‘Revenue is an addiction that can kill.’ – perfectly summed up. Pure greed, which has blinkered the arrogant suits at the helm.
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Foxtel business model:
$’s first, customer second.
Netflix, Apple, Google, Facebook’s, Amazon’s….. business models:
Customer first = $’s
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