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Foxtel subscribers are dumping the pay TV provider in droves with the Company now telling the financial media that they are set to cap subscription costs in an effort to retain customers.

As demand for high definition flat panel TV’s grow and free to air TV Companies roll out new HD Channels it appears that Foxtel has a problem with up to 14% of their installed base deciding to give Foxtel a miss after trialling the service. This is despite the fact that Foxtel has increased their subscription base during the past year.

Among owners of Foxtel IQ’s the churn rate is over 7% however overall the churn rate is close to 14% which is down from close to 20% for earlier this year. 

As a result the pay TV operator has said that up to 80% of their customers will “not” have their subscription fees increased.  

The pay TV operator who is set to roll out new channels in an effort to compete with Seven Media’s TiVo offering and upcoming iPTV services has also lowered the cost of movies but instead of communicating with the mass consumer technology media have chosen instead to only communicate with the Financial Review which is more about preserving their image with advertising agencies and marketers than the customers who buy and sell their services.

The cost of installing a Foxtel iQ HD recorder is around $200 and $10 monthly fee. However the HD channels delivered by Foxtel are extremely limited with five of their most popular HD channels available for free for consumers who have purchased a new HD flat panel TV or own a HD set top box which can purchased for as low as $59.00.

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