Foxtel Triple-Play – Broadband and Fixed-Line Services Bundled
Foxtel starting next year will now bundle their TV channels with their broadband internet and fixed-line telephone services and they call this deal as Foxtel Triple-play. Pricing and other terms and conditions to be announced starting in late 2014. So if you aren’t sure if this will be good deal for you as a consumer, then you need to compare foxtel packages over its competition and decide for your own.
The deal called as Triple Play for sure will be marketed and will gain popularity for others and there is a chance of splitting the existing customers in competition with its 50% shareholder Telstra. For your information, Foxtel is required to obtain all of its internet services from Telstra. Also Telstra is currently an active marketer of Foxtel as well as being a retail competitor.
The deal brings Foxtel into line with Optus and the iiNet offering called Fetch which have been offering all of the elements of the triple play plus mobile telephony services. iiNet broadband/home phone package bundled with Fetch TV’s channels costs for $89.85 per month and Optus has a similar deal for $79.90. The Fetch TV offerings including movies to rent from all major studios, 30 free movies per month, PVR, ABC iview and SBS Catch Up. On the other hand, Foxtel’s average revenue per user (ARPU) is $103. Foxtel’s major challenge, say other executives, will be to come up with a pricing structure that is competitive with its ISP competitors.
In announcing the new service, Richard Freudenstein, Foxtel CEO noted that their goal was to get more new subscribers and reduce the currently high rate of those who cancel their subs each year. For years, Foxtel has been pushing to break through the barrier of 30 per cent penetration in Australian households. The churn rate in the year to June 30 was 14.2% and Foxtel had 2.5 million customers.
“This is a transformative event for the Foxtel business,” said CEO Richard Freudenstein. “It will enable us to greatly enhance the breadth, quality and value of the services we offer to customers while opening up significant opportunities for growth. “Broadband and telephony will be a tremendous complement to the traditional Foxtel service. These new services will join our continually expanding offering, which includes highly flexible IP products – Foxtel Play, Foxtel Go, and the brand new online and on-demand movie service Presto.
“These new products will draw on Foxtel’s investment in customer service and billing capability, its strong brand and rich content offerings. It is anticipated that they will enable us to acquire new subscribers and reduce churn by increasing choice and broadening the appeal of our offering.”
International experience demonstrates that triple play and broadband bundles have been hugely popular with consumers and have allowed operators to boost take up of subscription TV services. Merging broadband and fixed line services to the subscription is intended to lock customers in and reduce the growing number of Australians who are signing up with the US subscription video on demand service Netflix.