$10: The do-or-die number for Foxtel's 'Netflix of sport' play


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Morgan Stanley reckons that within three years,  a $10 a month streaming service featuring Foxtel’s best sport could be taken up by a (Netflix-equalling) 40 per cent of Australian households. Within six years, it could be in 50 per cent (or around 5 million) Aussie homes, and generating $1 billion in revenue through subscriptions and advertising.


The risk, of course, is that the new online sport service is such a hit that it cannibalises Foxtel’s existing (and more expensive) product, delivered largely over satellite and cable.


“Yes, it presents a risk,” Morgan Stanley said of cannibalisation. “But a greater risk is that if Foxtel doesn’t build a dominant [sports streaming] business in Australia, someone else will.”


Foxtel has already been moving to position its existing pay TV product as a premium offering by making its ultra high definition 4K broadcasts included in some packages at no extra cost.


There are other significant risks for Delany’s streaming product, including technology. Netflix’s rivals and peers have consistently underestimated the technical challenges of streaming content online at scale. Live sport adds another layer of complexity to that challenge.


Article source: http://feedproxy.google.com/~r/sbsnews-topstories/~3/RA7gkVZZqHo/at-least-11-killed-and-scores-missing-as-torrential-rain-hits-japan

Comments

  1. Phone Number Au20 October 2018 at 23:16

    I have to agree with your thoughts on this kind of issues. Maybe there are things that might be needed an improvement from their services. With this, we can just simply call the foxtel contact to addressed our issue and let them know what are the things they need to develop.

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