News Corp’s Foxtel holds the line, but danger looms

Foxtel maintains revenue through price hikes, but saturating SVOD markets and falling pay TV subs create long-term risk.

David Kennedy · Venture Insights9 February 2024Period: H1 FY244 min read

$476 million↑

Foxtel half-year revenue (December 2023)

7.7%↓

Decline in total pay TV subscriptions (Calendar 2023)

Locked

+1more stats

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Abstract

This report analyses News Corp’s December 2023 half-year results for Foxtel, which recorded a 3% revenue increase to $476 million in local currency. While price increases for pay TV and SVOD services have successfully bolstered the top line, the report highlights a significant slowdown in subscription growth for Binge and Kayo. With pay TV subscriptions falling 7.7% over calendar 2023, Foxtel is pivotally shifting its focus toward advertising and programmatic platforms to offset the maturing streaming market.

Key Takeaways

Foxtel reported half-year revenues of $476 million for December 2023, a 3% increase in local currency driven by price hikes.
Traditional pay TV subscriptions fell by 7.7% over calendar 2023, continuing a steady decline in the household segment.
SVOD growth is slowing significantly, with Binge growth dropping to 7.0% and Kayo to 4.2% as the Australian market reaches saturation.

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Frequently Asked Questions

Yes, Foxtel recorded a 3% revenue increase to $476 million in local currency for the half-year ending December 2023. This growth was primarily achieved through price hikes across pay TV and streaming services rather than subscriber volume.

Subscriber growth is slowing significantly as the Australian market reaches saturation. Binge grew by only 7.0% and Kayo by 4.2% over calendar 2023, representing a sharp deceleration from previous periods.

Foxtel is pivoting toward digital advertising, which generated an estimated $341 million in revenue during FY23. The company is launching a programmatic platform with Magnite in 2024 to lower entry barriers for smaller advertisers and diversify its income streams.

The decline in the household segment is accelerating, with total pay TV subscriptions falling 7.7% over calendar 2023. This structural shift forces the company to rely on higher margins from its remaining premium base and its expanding digital ad inventory.

News Corp’s Foxtel holds the line, but danger looms

Abstract

Key Takeaways

Frequently Asked Questions

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