Richard Freudenstein, CEO of Australian pay-TV provider Foxtel, has told one of the country’s major daily newspapers that he is confident the company can win a 50% share of the local pay-TV market.
Speaking to the Sydney Morning Herald, the Foxtel chief describes his strategy of creating a “virtuous circle” that will encourage more subscribers and less churn by offering different price points.
The company recently completed its merger with rival Austar, and has started to expand its reach beyond established cable and satellite platforms to IP-connected devices, delivering premium packages to Samsung’s smart TVs (details here), Telstra’s T-Box and the Xbox 360.
Mr. Freudenstein added that he expects the bulk of new customers to take its cable or satellite packages, as they offer the largest selection of content: more than 40% of Foxtel’s customers are currently on a AUD 106 (US$ 109) per month platinum package, according to the Foxtel boss.
Australia has 8.5mn TV households, with around 30% of them taking some form of pay-TV services, according to research by Informa Telecoms & Media (publisher of IP&TV News).
Foxtel is easily the largest pay-TV provider in Australia with more than twice the number of subscribers of its erstwhile rival Austar, reaching 1.66mn by the end of 2011.
The current analysis from Informa Telecoms & Media is that Foxtel will remain the dominant pay TV force in the short-to medium-term but will thereafter become somewhat vulnerable to low-cost alternatives.