- ARPU rises due to Kayo Sports price hike
- Foxtel now has 4.41 million paying subscribers, up 13% year-over-year
- Streaming accounts for 62% of Foxtel’s total subscribers
Australian pay-TV company Foxtel closed the fourth quarter of its fiscal year 2022 with 4.41 million paying subscribers. This is a 13% increase over the previous year.
A major media outlet owned by News Corporation had 30 total subscribers over a three-month period.th June saw a record 4.53 million visitors, also up 13% year-on-year (YoY).
Foxtel posted gains, citing subscriber growth on Kayo Sports and Binge, but this was partially offset by a decline in home broadcast subscribers.
Broadcast subscriber churn improved to 13.8% in the quarter from 17.1% a year earlier. Broadcast Average Revenue Per User (ARPU) increased 2% year-on-year to AU$82 (US$56) during the period.
Kayo closed the quarter with 1.29 million paying subscribers (1.31 million total), up from 1.05 paying subscribers last year.
Foxtel’s streaming services, including Foxtel Now and Flash, have a total of 2.6 million paying subscribers. That number was slightly above 2 million in the comparable quarter last year. Total streaming subscribers exceeded 2.8 million at the end of the year, a 31% year-over-year increase.
Streaming subscribers now make up 62% of all Foxtel subscribers.
In May, Foxtel confirmed that it would increase the price of Kayo since its launch in November 2018. According to Kayo’s website, the price increase “reflects Kayo’s continued investment in technology and content costs to deliver his two simultaneous streams of the best of the sport.” . content’.
The service “includes access to over 12,000 live sporting events made available on the platform in the last six months, a 25% increase over the previous year.”
News Corporation CEO Robert Thomson said at the company’s investor briefing this week:
“Our sports streaming service, Kayo, has been particularly successful with rising ARPU, partly due to recent price increases and the quality of team production and quantity of quality sports.”
Sports pro says…
Kayo Sports has been selected for special acclaim in Foxtel’s latest series of financial reports, bucking recent negative trends in the streaming market. Due to the rising cost of living, blockbusters such as Netflix and Disney+ have lost subscribers.
Sports aren’t necessarily the antidote, but they do provide an opportunity for platforms, especially regional ones competing against global players, to stand out.
Last month, Viaplay CEO Anders Jensen explained to the Financial Times the importance of focusing on local sports rights alongside other select programming.
“We couldn’t compete with Netflix on half the pitch,” he said. “Sport is a bridge, something that sets us apart in a unique way.
“For us it’s a mix [between drama and sport]This is the only way regional players can compete globally. We are not there to replace them. ”