As tens of thousands reject Foxtel’s new subscription offering, Telstra who has been propping up Foxtel subscription numbers by bundling a Foxtel subscription with their T Box offering is now moving to offer a triple play bundle in a desperate effort to stave off a low cost Netflix who is set to launch in Australia next year.
The Telco used the Australian newspaper which is owned by News Corporation a 50% shareholder in Foxtel to announce that it is launching a new Foxtel offering wrapped around an Entertainment Supreme Bundle which include Foxtel’s iQHD set-top box, a free modem and free installation, and start at $100 a month on a two-year contract.
This is the same Company that is hitting their Foxtel customers who are already paying $134 a month for the Foxtel Premium package $14 a month for the privilege of getting a HD movie or TV show despite the fact that nearly all content is Full HD along with the TV sets that the content is played on.
Telstra’s entry into the triple-play market will see consumers get a bundle that includes 40 Foxtel pay-tv channels as standard with broadband and landline telephony services – up from 13 channels previously.
Telstra director, fixed broadband and bundles Stuart Bird who was out bragging about the new service has not explained why the carrier is refusing to give discounts to existing Foxtel customers when new subscribers are being offered 50% discounts.
Bird said the company would continue to market its T-Box set-top box but expected the number of households to sign up for the new packages would surpass the 200,000 homes that have so far taken up its Entertainer triple-play T-Box packages, launched in May.
Telstra who are refusing to pass on cost saving to existing Foxtel customers who are paying $134 a month for their premium package are so desperate to build Foxtel numbers ahead of the launch of US subscription TV company Netflix that they are also offering a free Foxtel connection fee and a fast home Wi-Fi modem, and access to Foxtel Go for mobile streaming of Foxtel channels.
Bird who said earlier this week “Customers feel like they’re paying too much for pay-tv and they’re right,” has not explained why existing customers of Foxtel who are paying over $130 a month for content and are also being hit $14 a month for a so called HD TV service despite most content and every TV being HD capable.
In September, the 50 per cent Telstra-owned Foxtel broadened its triple-play distribution beyond Telstra for the first time, selling TPG a white-label pay-tv service for the company to bundle in its own triple-play packages.
In a direct slap in the face customers who six months ago were being asked to sign up to 12 and 24 month Foxtel contracts at $50 a month the company recently halved to $25 the cost of its basic pay-tv service.
Mr Bird said Telstra would launch a mass-market marketing push that includes television, press inserts, radio and digital to promote the new triple-play bundles from November 9.