Reply With QuoteUnlikely to lose customers? Hahahaha...it lost me once I got ADSL2+ and Netflix....I now pay yearly what I used to pay monthly and I can watch what I want, when I want and have no ads
l faces broadband competition, but unlikely to lose consumers
Foxtel could face increased competition for subscribers under the national broadband network, as greater access to high-speed internet spurs more competition globally.
But the operator’s hold over exclusive content, seen as crucial to a successful pay TV business, is likely to mean it will maintain a strong hold on consumers.
Foxtel and News Corp executives, including executive chairman Rupert Murdoch, denied accusations this week of a conspiracy to destroy Labor’s $37.4 billion NBN, based on notions the project poses a threat to the pay TV incumbent’s business model.
“There is obviously going to be more competition, but as long as it’s a level playing field we are very happy to compete . . . in any event there will be an NBN and we will be using it,” Foxtel chief executive Richard Freudenstein told AFR Weekend on Friday.
Though refusing to be drawn into the political argument, Telstra chief executive David Thodey said “the more places we can get Foxtel, the better”.
They said both Labor and the Coalition’s broadband policies would allow Foxtel to expand beyond its cable and satellite networks, which restrict it to 30 per cent of the population.
But analysts said there was a potential for competitors to gain an increasing share of the consumer market as all players start operating in the same medium. Australian Bureau of Statistics figures show 58 per cent of homes are capable of streaming high-definition video via their broadband connections.
It is expected either party’s NBN rollout would prompt foreign streaming services, such as the US-based Netflix and Hulu, to enter the local market.
Netflix offers users access to television shows and movies for $US7.99 per month, compared with the $25 base cost for Foxtel’s internet streaming service.
“Netflix would do very well in Australia but their margins are very small, which in the US is fine when you get 29 or 30 million subscribers . . . Australia might not work as well,” said Tony Brown, an analyst at Informa.
Mr Brown said the NBN could spur interest from consumers wanting to access Netflix and other global content by bypassing online geographic restrictions. A government inquiry into the price of technology hardware and software urged the government to educate consumers on how to do this.
Foreign start-ups that make it easier to bypass online restrictions have considered setting up in Australia.
Foxtel has spent recent months shoring up content agreements with the likes of HBO in the United States and BBC in the UK, in order to deprive niche competitors like Quickflix and Fetch TV of the content required to grow their customer bases.
“It basically comes down to getting people to pay for content,” Mr Brown said. “It’s hard to see anyone with the resources to take on Foxtel in the Australian market, definitely.”
The Australian Financial Review
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Unlikely to lose customers? Hahahaha...it lost me once I got ADSL2+ and Netflix....I now pay yearly what I used to pay monthly and I can watch what I want, when I want and have no ads
Huh?? How is satellite restricted to 30% of the population?Originally Posted by Chieflets
I dont know how they will supposedly lose customers, they will gain customers as TV switches to internet powered rather than sat and cable.
The majority of people will have no idea of how to get Netflix or any other geo blocked services.
If Netflix and hulu setup in Australia and make it legal why would you need geo block services if there not blocking the service out of the country they broadcast?
Also I'm sure they would advertise it how hard would it be to enter username and password once :-)
Chieflets
What's the asset write down like on the cable and satellite network they've built?
Neither Netflix nor Hulu would provide a comparable service in Australia to what they offer in the USA due to copyright reasons. Why do we watch Netflix USA and not Netflix Ireland, UK or Europe or Latin America ? ? Because only the US has major agreements to show all content legally.
All movie studios would tear up all their content agreements and they would be left with no content and bankrupt.Also I'm sure they would advertise it how hard would it be to enter username and password once :-)
The NBN gives Foxtel a unique opportunity to ditch cable and satellite and transmit via a much cheaper medium (the internet). Labor are just jumping up and down spinning their usual bullshit to those that dont know any better to try and win an election they dont deserve to win.
Here we go again labor this and that.
I presume the libs don't jump and down with their own b shit?
M8 if you haven't woken up yet both parties are as good as each other.
Politician's as is big corporation's are all b shit artists.
Try work-cover for example. Please no more political stuff.
If you want to tell people " no more political stuff" (someone must have put you in charge did they ?) , why dont you tell it to the original poster who posted about 1000% more "political stuff" than my whopping 2 lines on it ?
If the truth distresses you, dont fkin read it.
Its certainly moron week in more ways than one thats for sure.
Admin, i think you could have phrased it a bit differently. Don.t forget Poxtel already has the cheaper medium here in the real Burbs "cable" which i use for my internet.
There is a fine line between "Hobby" and "Madness"
Sorry i might be a Moron but It is you i feel that makes you stressed.
And no I'm not in charge of anything and thought forums were for people to put their point of views across which in your case isn't acceptable.(notice any of my moron posts don't state which political party i go for. Reason- like i said one is as good at the other and yes i'm a Moron cause i have to go vote)
Now i'm off to read some b/shit pamphlets to see which b/shit artists are better to vote for.
Foxtel hated the ONE channel because it bid against them for broadcast rights to sporting events that they pretty much had had a monopoly on. Friendly people bought ten and shut down the 24 hour sporting channel. It's an expensive business to run and you don't need competitors pushing up your costs. They hate that the ABC runs a 24 hour news channel (it will be interesting to see how long that lasts through a coalition government).
With a critical mass of broadband users, entering the subscription television market becomes very easy, if you can get the rights to programming. Amazon and Google aren't going to start installing satellite dishes and renting out set top boxes to people but they'd be more than happy to expand their existing operations. When it comes time to sign a broadcast rights deal, Foxtel are negotiating against some very heavy hitters to get streaming rights rather than the failing business model of broadcast television that they're up against at the moment. They're certainly not going to get exclusive deals against the big international networks.
And you don't need to own an entire network of channels. The AFL have made no secret of their desire to have their own channel. If Foxtel lose access to entire sporting codes, if someone like HBO decides to go it alone, then they lose a huge number of subscribers who would prefer to pay only for what they want, rather than the package deal con that they're able to get away with at the moment.
It becomes a complete mess for Foxtel if everyone has high speed, reliable broadband. They might compete and do well but they'd prefer not to have to.
Be thankful that 3 measly last years of Labor brought you an NBN and now because of Turnbulls common sense the coalition have adopted it you may hate Labor but you can't deny because of them you'll have better internet although Labor lose on Saturday.
Have a read of Whirlpool Industrial news and you may not end up that confident it is common sense!
There is a fine line between "Hobby" and "Madness"
pheggie (05-09-13)
Its amazing how many people are self obsessed with the internet and seem to think the world is going to change with the NBN. I would struggle to think of something its going to do for me that I cant do now. Unless I want to stream TV on 5 TV's at once instead of 2 or even 3.
BTW Levend, you have previous moronic posts in the past therefore I treat the idiotic comment you made with the degree it deserves.
Here
Rubbish here
More Garbage here
I stand by my original comment, your an idiot. I call a spade a spade, your previous comments say it all. You dont look, you dont listen, you dont take smart advice and in general, you have no idea what you are talking about. What else can I say ?
Good to see at least one person is still on the actual topic
What can I say ? Absolutely correct. The world is currently changing satellite pay tv to internet.
Lol you are a said case mr sanity take your forums and shove them up your ass.Its amazing how many people are self obsessed with the internet and seem to think the world is going to change with the NBN. I would struggle to think of something its going to do for me that I cant do now. Unless I want to stream TV on 5 TV's at once instead of 2 or even 3.
BTW Levend, you have previous moronic posts in the past therefore I treat the idiotic comment you made with the degree it deserves.
Here
Rubbish here
More Garbage here
I stand by my original comment, your an idiot. I call a spade a spade, your previous comments say it all. You dont look, you dont listen, you dont take smart advice and in general, you have no idea what you are talking about. What else can I say ?
Good to see at least one person is still on the actual topic
What can I say ? Absolutely correct. The world is currently changing satellite pay tv to internet.
I doubt someone could play Xbox while another is watching Netflix at the same time on ADSL without issues.
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