Foxtel is taking radical steps to compete with the meteoric rise of online streaming content options in an effort to remain relevant in the average Australian household.
The pay television company announced Thursday it is slashing prices up to 50 per cent and adding more premium content to basic packages, according to chief executive Richard Freudenstein.
Speaking at pay TV conference ASTRA, Freudenstein said Foxtel now acknowledges its price point didn’t match its service in the eyes of the Australian consumer.
“We recognise that many Australians feel that Foxtel is too expensive to fit comfortably into their budget,” he said.
“They know that we offer fantastic content but they just don’t feel they can stretch their finances to afford it.”
Foxtel’s standard Entertainment Pack will be available on a $25 a month subscription, down from $50, while sport remains at $25 in an attempt to offer customers double the content for the same price they were previously paying.
A movie and drama pack- featuring showcase, BBC First, FX, 13th Street, a boxset and on demand service- will also be available at $20 each a month.
“We will significantly reduce the price of our entry package so all the people who have long wanted Foxtel, but didn’t think it fitted their budget, will look at us again,” Freudenstein added.
Foxtel is also following in the footsteps of UK satellite broadcaster BSkyB by combining triple play packages- television, broadband and home phone- in one service. Triple play prices won’t be revealed until closer to its launch date in early 2015, but could lead to huge growth for the company if it is able to penetrate anywhere near the 50 per cent of Aussie households that BSkyB has successful covered in the UK.
Foxtel currently occupies 34 per cent of Australian homes, but has failed to increase on this figure for a number of years due to price issues and the availability of legal and illegal online streaming options.
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