Subscribers to BINGE’s advertising supported model, introduced at the end of March, now account for 30% of the total 1.5 million.
Binge paid subscribers grew 22%, or 109,000, in the March quarter, helped by the release of dystopian series The Last of Us, compared to the same three months last year.
“The product accounts for approximately 30% of all BINGE subscribers,” News Corp CFO Susan Panuccio told market analysts in a briefing.
“We expect a modest revenue contribution from advertising beginning in the fourth (June) quarter.”
Foxtel Media had 21 brands signed as launch partners to BINGE advertising.
Advertising-supported BINGE subscription is $10 a month compared to the basic package of $16.
New Corp CEO Robert Thomson told analysts the entertainment streaming product adds a new “lucrative” revenue stream.
“Interest from advertisers has been ardent as the initial phase of packages were sold out,” he says.
“We have demand and seemingly some flexibility on pricing in the months and years ahead.”
Foxtel’s total closing paid subscribers grew 6% to more than 4.5 million in the March quarter, according to numbers released by News Corp.
In the March quarter, Foxtel reported revenue of $US477 million, down $17 million or 3%, due to a $28 million, or 5%, negative impact from foreign currency fluctuations. Adjusted revenue of $505 million increased 2%.
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