Abstract

Foxtel dominates the Australian pay TV industry, but that market has been declining for several years. SVOD services have drawn away customers, offering services considerably cheaper than Foxtel’s current pay TV ARPU of around A$94 (includes both commercial and household subscriptions). Total pay TV subscriptions fell again in FY24, although price increases in the last year helped maintain revenue. But so far, growth in Foxtel SVOD (Binge and Kayo) has offset this decline.

The threat to Foxtel is that slower SVOD growth is not enough to offset ongoing pay TV decline. However, we expect Foxtel advertising revenue to rise as it leverages its new SVOD audiences. This promises revenue stability for several more years, but heightened competition in the digital video market that will impact rivals like FTA TV.