Foxtel CEO Patrick Delany says the company's announcement that it will partner with streaming giant Netflix won't impact plans to further its own independent streaming platforms.
Speaking to AdNews, Delany emphasised that while the recent deal to integrate Netflix into Foxtel's new On-Demand interface would improve its position as Australia's "best content aggregator" it would not lose sight of its own streaming intentions.
He says the business will continue to look for other means of providing Foxtel's sport, entertainment and film content through new and existing platforms.
"We are going to continue to spend money on both Foxtel Now and Go," Delany says.
"The interesting thing is, Now and Go were built on platforms that are pretty outdated and we've just built Kayo, so part of the strategy is to use the infrastructure of the whole group to improve our other offerings."
Delany didn't rule out increasing investment in the popular Kayo platform, which in May revealed it had hit the 200,000 paid customer mark, doubling its subscriber base from February.
"Plans going forward could include shifting our efforts to further enhancing the Kayo platform and ensuring it becomes a product that is smart and intelligent, which will influence how we look at our other platforms," Delany says.
Questioned on whether Foxtel also needed up its marketing for these platforms, Delany says it's not necessary, as each has its place in the company's ecosystem, with those unable to afford Foxtel's set-top box packages.
"Our customer behaviour naturally falls that way. If you didn't like some elements or could afford Foxtel, then clearly we have shown the market that there are alternatives, like Kayo," Delany says.
"We can also find alternative ways to expand on our offering and while not definitely on the horizon we are certainly looking into creating further streaming platforms for our entertainment and movie packages."
Roy Morgan also weighed in on Foxtel's new plans for streaming, with research indicating that through the Netflix deal, 13.355 million Australians could now have access to either service via a household subscription.
This will eventually service the equivalent to nearly two-thirds (64.4%) of all Australians aged 14 and older.
Analysing the two services separately shows 11.5 million Australians now have a household subscription to Netflix whereas around 5 million have a household subscription to Foxtel and 3 million have access to both Netflix and Foxtel.
Roy Morgan CEO Michele Levine says the tie-up between the subscription TV giants holds significant opportunities for both.
She says the move will strengthen Foxtel's overall offering and act as a "defensive measure" to help prevent existing Foxtel subscribers "ditching the service" to move to cheaper alternatives.
“The more Foxtel can be regarded as the ‘gateway’ to video content from the likes of Netflix, and perhaps other rival services in future, the more access Foxtel will gain to detailed user data metrics that will help them tailor their services, and advertising, to individual viewing preferences and the more valuable their service, will, in turn, be to advertisers looking for an audience," Levine says.
“For Netflix, the ability to link up with Foxtel’s News and Sport services and be a frictionless option for the 2 million Foxtel viewers who don’t currently access Netflix is an opportunity for growth in a market which may be reaching maturity."
Of the 13.355 million subscribers to either service, a majority of over two-fifths (62.6%) only have access to Netflix equalling a market of 8.4 million Australians. A further 23%, or 3 million, have access to both Netflix and Foxtel and the remaining 14.4%, or nearly 2 million, only have access to Foxtel.
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.