Question 1

Is Foxtel still growing despite the decline of traditional cable TV?

Accepted Answer

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.

Question 2

How are the streaming services Binge and Kayo performing as the market matures?

Accepted Answer

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.

Question 3

What is the strategy to offset the loss of traditional broadcast subscribers?

Accepted Answer

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.

Question 4

How quickly is the traditional pay TV business shrinking?

Accepted Answer

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

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