Desperate to attract new customers Foxtel has moved to slash prices up to 50% but not for the millions of loyal customers who already have a Foxtel package, those customers are set to pay double what a newbie pays.
Loyal customers who are already paying up to and over $125 a month are set to be offered additional channels as opposed to discounts a move that could see hundreds of thousands of customers dump their existing service and sign for a new low cost subscription package.
New comers to the Foxtel service only have to pay $25 to get the basic service and an additional $25 to get sport and some additional programs.
The move will leave millions of existing customers supporting new customers.
A new Foxtel new entertainment pack now costs $25 per month on a 12 month plan – it previously cost $50.The Pack includes 40 channels including OX8, Lifestyle, TVH!TS, ARENA, MTV, National.
The radical changes unveiled yesterday at the 2014 ASTRA conference, are being initiated in a bid to lure new customers prior to the arrival of US pay TV giant Netflix.
As reported earlier by SmartHouse Foxtel has also announced a new iQ3 set top box and Boxset a video on-demand service, ‘Treble Play’ – television, broadband and home phone packages and new HD channels.
CEO Richard Freudenstein said he is “absolutely confident” the price cut will attract more customers.
“A $25 entry point that gives access to over 40 popular channels in our Entertainment Pack will cause millions of people to have another look at Foxtel.”
What is not known is whether Foxtel will actually allow customers to dump their existing plan and sign up for the new plan.
One observer said “If they don’t the move could be seen as price fixing as Foxtel are a monopoly and both they have control over the connection of a set top box to a home”.
The new package will be launched on November 3 along with the new Foxtel iQ3 set top box.
The Pay TV giant which is 50% owned by News Corp. and 50% by Telstra has slashed its specialist packages including Movies pack to $20; Sports Pack to $25 and Drama Pack. General Entertainment Packs will also be available including Entertainment Plus, Docos and Kids, for $10.
In addition, it added nine new HD channels including sports, movies and drama bringing the total HD channel count to 36.
According to Melbourne based legal sources acting for Netflix the US subscription TV Company is looking at a monthly subscription fee in Australia of $19 a month.
Overnight Netflix swooped on the new drama series Gotham made by Warner. They secured both the US and International rights to the series which chronicles the early days of Commissioner Gordon, Batman, and the crime-riddled city that the Caped Crusader calls home.
The series that is tipped to be as popular as Game of Thrones is one of the most anticipated shows this year.
Netflix is paying a reported $1.75 million per episode to license a show that the public hasn’t seen yet — and that it can’t stream until each season has ended on television.
The landmark deal between Netflix and the show’s producer, Warner Bros, also provides the licensing rights on a “multiple-territory basis,” meaning Netflix will be able to stream “Gotham” in all the parts of the world where it operates.
CNN Money said that Warner Bros. is owned by Time Warner, which also owns CNN and HBO. Relations between Time Warner and Netflix have been chilly in the past — but have clearly warmed up with the signing up of the new series.
.Citi analyst Justin Diddams said of the Foxtel move “We view the strategy as a proactive move to deliver more value to customers and engage the 72 per cent of households not taking Foxtel. The new price point will get the phones to ring and then people will buy additional packages like sport, drama or movies. It makes people realise Foxtel is affordable.”
