Foxtel struggling to survive?

[Vee]

Foxtel was struggling to survive before COVID-19 but the lack of sport is speeding up its demise
By Andrew Robertson

Thanks to the pandemic, Foxtel's biggest drawcard, sport, is gone.

With the AFL, NRL and other leading sports all shuttered, there's nothing to show.

"They always had a problem in the summer, because they didn't have good sports coverage in the summer," Mr Cox saidLong-time media and telco analyst Paul Budde believes it's a potentially terminal issue for Foxtel.

He says within three years, Foxtel will have to completely change its business model.

The biggest immediate threat comes from Foxtel's majority shareholder, News Corporation, which owns 65 per cent. Telstra owns the other 35 per cent.

The two owners recently kicked in nearly $900 million to keep Foxtel afloat, with $700 million coming from News Corp.

So, what may decide Foxtel's ultimate fate is how long Rupert Murdoch is willing to keep bailing it out.

A decision Mr Cox says will come in the next two years.

"They have to make the decision," he said.

"Do they cut and run and lose the billion dollars plus they've got invested in the business, or do they stay in there and keep on putting hundreds of millions in there, if not another billion dollars for its survival?"

In the meantime, Foxtel is sweating on the NRL leading the sporting world back onto the field, and viewers back to their screens.

https://www.abc.net.au/news/2020-05...ore-covid-19-lack-of-sport-more-pain/12217094

Probably more for the Media Watch forum, if so, mods...

 

[taipan]

That being the case ,Foxtel needs the NRL, like a drunk needs a good p*ss, they should pay what Rambo Vlad asks.

 

[T-Boon]

Fox are paying the AFL too much. They should either drop AFL or at least pay them a lot less.
Pick a side, become more supportive of the NRL pay the NRL more and try to build something great. In return the NRL could support Fox in its case to get rid of anti siphoning laws and agree to ttry to grow the sport with great rule changes and expansion into Queensland and NZ. NZ should be seen as more valuable than Victoria.

 

[Perth Red]

Fox are paying the AFL too much. They should either drop AFL or at least pay them a lot less.
Pick a side, become more supportive of the NRL pay the NRL more and try to build something great. In return the NRL could support Fox in its case to get rid of anti siphoning laws and agree to ttry to grow the sport with great rule changes and expansion into Queensland and NZ. NZ should be seen as more valuable than Victoria.

Murdoch did pick a side, dont you remember the press conference?

"We've always believed this (AFL) is the premium code in Australia - it's the national game," Murdoch told reporters on Tuesday.

"We believe in the strength of the game and we will do everything we can to make it stronger."

He also said Foxtel, part owned by News Corp, was putting its money where it believed the station would prosper.

Reality is Fox needs both sports. This isnt UK where 90% of sports fans are soccer supporters. It needs subscribes from both codes to survive, AFL has hardly taken off in the Eastern States and NRL has ensured it is pretty much non existent outside the eastern states. Australia doesnt have the population or a singular national football code for Fox to be able to survive without both.

 

[gUt]

Fox without sports content is like 4 Stan or Netflix subs. Ridiculous they didn't move faster to shore up their existing base when the purely digital platforms came online. For too long they shat on people who only wanted some of their content by forcing them to subscribe to a whole lot of shit they didn't want as well.
Then in desperation Rupert tried (and largely succeeded) to scupper the NBN too but even that piece of greedy bastardry hasn't saved his Foxtel money pit. f**k Fox and f**k Rupert Murdoch, the evil old bastard.

 

[10$ Ferret]

When foxtel started, its was cheaper and one of the big selling points was "no ads" now because they paid far too much for the TV rights for AFL and NRL we pay more for the product, we have ads and apparently fox is struggling

The rights are no worth close to $1b and by creating this false market with inflated costs and player salaries the game is being destroyed.

the right are worth not only what the market will pay but what the market will support, and while the market may pay $1b it has shown it can't support it

 

[Perth Red]

When foxtel started, its was cheaper and one of the big selling points was "no ads" now because they paid far too much for the TV rights for AFL and NRL we pay more for the product, we have ads and apparently fox is struggling

The rights are no worth close to $1b and by creating this false market with inflated costs and player salaries the game is being destroyed.

the right are worth not only what the market will pay but what the market will support, and while the market may pay $1b it has shown it can't support it

it always surprised me how a country with just 25million people could generate enough revenue for tv for them to pay what they have over last 8 years for the two main sports. It’s like they are paying because they can’t afford to lose them rather than paying an amount that returns a margin.

 

[Hello, I'm The Doctor]

I can guarantee that Foxtel is gonna come out with a sob story about how they are struggling and the NRL needs to accept a paycut to keep them afloat.

Foxtel - “we have been great partners to NRL simce 1997 and it is time they repaid our generosity”........

 

[T-Boon]

When foxtel started, its was cheaper and one of the big selling points was "no ads" now because they paid far too much for the TV rights for AFL and NRL we pay more for the product, we have ads and apparently fox is struggling

The rights are no worth close to $1b and by creating this false market with inflated costs and player salaries the game is being destroyed.

the right are worth not only what the market will pay but what the market will support, and while the market may pay $1b it has shown it can't support it

I wonder how much it would cost to buy Kayo of them. The NRL should bid.

 

[Foreign Legion]

Create a French Super League for our summer and I'll get Foxtel back again...

 

[Foreign Legion]

May you live in interesting times,” is the English translation of a traditional Chinese curse and events in this COVID-19 troubled year have matched its ironic intent.

There have certainly been some unusual scenarios presented in the future televising of Australian sport, including a reported possible bid by Channel Nine for AFL which would presumably entice Channel Seven to bid for NRL.



told a meeting of analysts and investors on Tuesday afternoon that “it is not a given that NRL has to be part of our future”.

It was a statement which fits into the Chinese curse category. A peaceful three decades of Nine owning four of the top five programs nationally - rugby league’s three State of Origin matches, together with the NRL grand final - threatens to be upset by troubled times ahead.

Sure, streaming has killed off the so-called halo effect in free-to-air TV. The idea of paying overs for sport because viewers will stay with the network after the football, rather than switch to a rival channel, has been undermined by streaming services, such as Netflix and even Nine’s own product Stan.

The rights for State of Origin could be on the move for the first time in three decades as the NRL's TV imbroglio continues.CREDIT:AAP

The news Nine may walk away from NRL caused what one might call cautious joy over at Foxtel. Executives at the Rupert Murdoch-owned network concede that the traditional FTA model is under siege. However, they also see Nine’s threat, including the bid for AFL, as a negotiating ploy to lower the payment it will make to Peter V’landys’ ARLC for the remainder of this disrupted season.
Somewhat contradictorily, considering Marks’ threat, Nine would like to add another three years to the existing TV contract which concludes in 2022.

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Still, Foxtel would be delighted to own all of the broadcasting of rugby league, rebranding the pay TV network NRL TV, making it a one-stop shop for the code.

Yes, but what about anti-siphoning laws? Doesn’t the federal government insist nationally interesting sports be available free to viewers?

Rugby league would once again be effectively owned by Rupert but would NRL clubs care if they were paid a motza?

Channel Ten would be interested in the two games a week the NRL is committed to show on FTA TV, the finals and Origin.

But Global Sport and Media’s Colin Smith has come up with a scenario far more lucrative for Foxtel and one Murdoch would blow his already overburdened budget to make happen.

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“Foxtel could offer matches currently on the anti-siphoning list to Kayo,” said Smith of Foxtel’s streaming service, which has leaked thousands of subscribers since March when NRL and AFL competitions stopped.

“Subscribers wouldn’t pay anything. They would simply select the matches that are free and opt out of the other Foxtel matches and sports programs.

“Sure, they would have to have the Foxtel streaming service installed but it would be zero cost to them.

“It becomes an excellent marketing tool for Foxtel, with the aim viewers will eventually pay for the matches not on the anti-siphoning list, just as subscribers tailor their Foxtel packages to meet their budgets.”

Rugby league would once again be effectively owned by Rupert but would NRL clubs care if they were paid a motza?

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NRL 2020
Fox Sports eyes Origin, grand final as Nine threatens to walk away from NRL[/paste:font]
V’landys has been historically close to News Corporation via his role as chief executive of Racing NSW, buying space for race fields in newspapers. A similar, smaller deal exists with The Sydney Morning Herald.

He has achieved deals with NRL clubs, players and state and federal governments to restart the season on May 28 but is yet to finalise agreements with Nine and Foxtel over how much they will pay for a shortened and crowdless year.

In these “interesting times” maybe V’landys will evoke another Chinese proverb, reminding Nine of the valuable vision about to sate the sports-deprived appetites of the viewing public from May 28: “One (TV) picture is worth ten thousand words (dollars).”
https://www.smh.com.au/sport/nrl/fo...ure-in-tv-merry-go-round-20200506-p54qal.html

 

[10$ Ferret]

I can guarantee that Foxtel is gonna come out with a sob story about how they are struggling and the NRL needs to accept a paycut to keep them afloat.

Foxtel - “we have been great partners to NRL simce 1997 and it is time they repaid our generosity”........

But they would probably be right, Have you noticed their people are not bagging the crap out of the NRL like Ch9's are.

 

[10$ Ferret]

it always surprised me how a country with just 25million people could generate enough revenue for tv for them to pay what they have over last 8 years for the two main sports. It’s like they are paying because they can’t afford to lose them rather than paying an amount that returns a margin.

thats the crux of the whole story. I once read a comparison between the NRL and the NFL, based on market sizes. It was about 3 years ago but the average NRL salary when compared to the NFL and others should have been about $60K.

That shows how far off from "reality" it all is

 

[T-Boon]

The important thing is not what the NRL players are paid but what they are paid compared to AFL, A league and Rugby players.

 

[10$ Ferret]

The important thing is not what the NRL players are paid but what they are paid compared to AFL, A league and Rugby players.

Compared to AFL yes, but RU no. Two reasons RU is fuct and its actually an international sport with a much larger market (albeit a sad and probably disappointed one )

 

[nrlnrl]

I'd say the ABC just like putting the boot into Foxtel & casting doubt. This announcement today is massive for them.



https://www.afr.com/companies/media...bo-deal-ahead-of-binge-launch-20200506-p54q9o

Max MasonMedia & Marketing editor
May 6, 2020 – 11.20am

Foxtel has secured the hotly contested WarnerMedia contract, including HBO, beating out Nine's Stan for rights to the US media giant's drama and entertainment programming.
WarnerMedia had called for bids by the end of April with incumbent Foxtel and Stan both vying for the new deal, which begins in roughly two years - Foxtel still has around that time running on its existing deal. Stan and The Australian Financial Review are both owned by Nine.

Content produced by WarnerMedia, which is owned by US telecommunications giant AT&T, includes Game of Thrones, Succession, Big Little Lies, The Big Bang Theory and Batwoman.

Foxtel, which is 65 per cent owned by News Corp, did not comment on the price of the new deal – although the competitive nature of the tender suggests it would be more than the current agreement – nor on how long the deal would run.

Sources said WarnerMedia was looking to sign a three-year deal on top of its existing local agreement, so that its contract in Australia would run out at the same time as in Europe, where it recently signed a five-year deal with Sky. It is understood the deal will allow WarnerMedia to pull back all its content after the new agreement finishes if it wants to launch HBO Max in Australia.

Foxtel's new agreement means it will remain the exclusive home of HBO in Australia. It will be a new exclusive licensee for Warner Bros productions and distributed Originals from HBO Max, a streaming service launching in the US later in May, extended Warner Bros TV and movie rights as well as continuing agreements from Cartoon Network and Boomerang.

Binge draws closer
The deal is crucial for Foxtel's plans to launch its own drama and entertainment streaming service, Binge, as revealed by the Financial Review in April. Last year, it renegotiated agreements with BBC, NBCU and Discovery, and earlier this year Viacom, for expanded streaming rights and fixed cost contracts.

Foxtel has been waiting for the outcome of the WarnerMedia deal before officially announcing the launch of Binge.

"This is an important deal. The important thing to remember is we've had a relationship with Warners for 25 years. This is taking the power and depth of the combined WarnerMedia Group," Foxtel chief executive Patrick Delany told the Financial Review.

"Like all the other deals we've done, we've markedly stepped up the ability to use the content for multiple distribution platforms. The reason that drove all of this is our subscribers love the content."

Mr Delany said three of the top five shows on Foxtel last year were from WarnerMedia; Game of Thrones, Big Little Lies and Chernobyl.

On Tuesday, Nine chief executive Hugh Marks told investors his company will continue to be very aggressive in looking to secure global content deals.

 

[Timmah]

In what way is the announcement massive for them?

Is it actually going to engender an uptake of subscriptions? Their model is falling apart.

 

[Cactus]

In what way is the announcement massive for them?

Is it actually going to engender an uptake of subscriptions? Their model is falling apart.

I suspect what was really meant was it would have been a massive blow if they failed to secure that deal (presumably due to revamped business plan/model)

 

[typicalfan]

But they would probably be right, Have you noticed their people are not bagging the crap out of the NRL like Ch9's are.

My thoughts for a while are that they are trying to drive a wedge between NRL and Nine so the relationship falls apart and Fox can come it and take the lot.

 

[Bring back John Fifita]

Some very valid points by many raised here. I agree that Australia is a small sports market saturated by competing broadcasters and sports for a population of what we have.

But I find it absurd that criticism is coming from 9 and Fox at the NRL of its financial management yet both signed / agreed to the rights deals and can’t make a profit from them (9 in particular). They should be doing whatever they can to promote the game and increase their viewership/income. But they are all too lazy and basic (ch9) or critical (Fox). Of both, Fox is by far the better coverage of the two broadcasters, as it should be given you pay to watch. But by no means are they great at it.

I froze my Foxtel account at the end of last season and I’d moved interstate. I haven’t turned my account back on. Of course Covid was a big influence but I doubt I would have anyway.

If Fox’s content in NRL was more broad, included great docos etc I’d def sign back up. But there would be an extra cost which would need ROI.

I was reconsidering taking it on again purely for the NRL, but in weighing up the costs, while I’d get all the games (as opposed to some on Gem9 - Adelaide), I could also get them via NRL streaming which is a Fox call..

So what other value would there be to get Fox?

It would be the additional RL shows and content potentially. But most are loaded up with News Ltd Journos which, while maybe saves cost, the constant turns me off personally. They are journos not presenters. As for the other shows? The Fan and the Matt Johns shows are ones I like. They focus on the fun/nostalgic/positive side of League - which I enjoy rather than journos having yet another axe to grind. But that’s just my opinion.

If Fox had less squeaky-wheel journos on the screen, and more insightful content, I’d sign back up.

It’s exhausting enough yelling at the TV when the dragons are playing, i don’t need to be yelling even further at the TV when Paul Kent, Phil Rothfield and Co are on the screen also. Both me and my TV are better off without them.