Foxtel Jacks Up Prices, Netflix Tipped To Follow Soon

Written by David Richards     15/03/2016 | 09:03 | Category: IPTV

Days out from the start of the AFL season Foxtel has hit subscribers with a price rise.

Foxtel Jacks Up Prices, Netflix Tipped To Follow Soon
We are also tipping that Netflix will also raise their prices in coming months. 

The Foxtel price rise which will add an extra $30M to Foxtel profits has infuriated customers with hundreds taking to social media to express their opinions. 

The move comes after Foxtel was snubbed by Communications Minister Mitch Fifield from going after exclusive live sports deals in Australia at the expense of free to air TV stations. 

Foxtel has raised their basic service from $25 to $26 a month, the move comes almost 12 months after Foxtel slashed the price of its basic service from $49 to $25 in an effort to stave off Netflix who is believed to have signed up over 1.5 million subscribers in Australia. 

Fairfax Media said that while it is only a minor price rise, some industry observers were surprised by the move, given the increasing pressure on Foxtel from subscription video-on-demand (SVOD) services led by Netflix that are much cheaper than a Foxtel subscription but don't offer live content or sport.

A Foxtel spokesman said: "Foxtel has had no price rises for two years, and 18 months ago people either had a price reduction or were given significantly more content for the same price.

"So the fact that there has now been a small price rise is normal business practice."

He added: "There has been some reaction on social media definitely but we reckon a few hundred comments or mentions on a base off close to 3 million customers is what one would normally expect in these circumstances."

The company, which is owned by Telstra and News Corporation, reported a 5.5 per cent rise in first-half revenue to $1.7 billion.

Profits were $434 million, down 7.7%.

ChannelNews understands that profits have fallen further in the last quarter due to increased costs of operation.