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johnjet

Foxtel Ceo On Media Week Talking About Foxtel Prices

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The new CEO of Foxtel Richard Freudenstein was on Media Week today and was ask a series of questions by the host Bridie. This is what he had to say in regards to the issue of pricing something that is usually a big issue on these forums.

BRIDIE -

Foxtel seems to have tried everything except significant price reductions to increase penetration. Could you go there?

RICHARD -

I don't think we should do that. We produce a very good quality product. We're very conscience of our pricing and packaging.

We do a lot of research to make sure our customers broadly understand that pricing and packaging.

We think we just need to keep adding value to that packaging and to continue to keep pricing.

You won't see radical price increases, but I don't think radical decreases are going to happen either.

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I would say that 'research' involves gathering information, not disseminating it. :)

But as a business model I think Foxtel aren't gouging customers. To the contrary I think they're taking a fairly big 'hit' these days to put the IQ HD in houses realising that churn is greatly reduced once people are invested in the equipment.

But I also don't think they've tried 'everything'. The single biggest thing they could do is allow consumers to choose what channels they want to pay for. For some reason that's unsustainable.

Regards

Peter Gillespie

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For me personally I am at that stage where I've reached the upper limit of what I am willing to spend on Foxtel.

If another price rise was to happen I would either drop the HD service or Multi-room. Foxtel has to realise that there is only so much they can get out of a subscriber before they either start looking elsewhere or drop the service all together.

I just think they need to look at a variety of models that don't "punish" already existing subscribers.

Edited by johnjet

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For me personally I am at that stage where I've reached the upper limit of what I am willing to spend on Foxtel.

If another price rise was to happen I would either drop the HD service or Multi-room. Foxtel has to realise that there is only so much they can get out of a subscriber before they either start looking elsewhere or drop the service all together.

I just think they need to look at a variety of models that don't "punish" already existing subscribers.

I think your last line is very true. Obviously they always want to try and get new subscribers, but how about offering existing subs some of the discounts and freebies that they offer to new subs.

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Obviously they always want to try and get new subscribers, but how about offering existing subs some of the discounts and freebies that they offer to new subs.
But that's a common trait of just about any business these days. Getting a new customer is always much harder than keeping an existing one. So (unsustainable) discounts are provided to entice potential customers.

Offering a discount to an existing customer is only of any use if the money you lose by doing so is compensated by the extra people that don't stop subscribing as a result. Obviously Foxtel have a very good understanding of how that equation balances in their industry.

Regards

Peter Gillespie

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Saw the interview and it makes perfect sense for his business.

Foxtel have a monopoly on reliable subscription tv in the areas they service. They don't have a monopoly on home entertainment as fta, dvd's, blu ray, bit torrent, legal iptv, illegal iptv etc etc are all competitors.

Foxtel are charging the highest price they can to make the most money in the long run that they can. This is what properly run businesses do.

There is no point having a truck load of customers if you don't make money - just ask OneTel.

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13% of customers walked last year
Yep, but 15% or so new customers took their place and lifted overall revenue for the year by 5% or so.

Looking at 2011 it appears Foxtel's 1.6 million customers created a profit (before tax) of about 200 million. That means each subscriber contributed about $120 of profit to Foxtel for tthe year (before tax). So if Foxtel decided to halve its annual profit they could reduce monthly subscription fees by about $5. NO wondeer they're looking at other strategies.

Regards

Peter Gillespie

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I don't miss my foxtel dick and his grubby mates that troll these forums looking for anything they can use against people!

Let me get this, you don't have Foxtel, you don't want Foxtel. Yet you post outlandish crap here. I believe the technical term for someone like you is a Troll.

Why is it the trolls always complain about other trolls.

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How brown is your tongue?

BSA, Downer, Foxtel...which one do you work for Hosko!

Ahhh and personal attacks a true troll. I don't work in television my brother does and he doesn't work for any of the companies you mention

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