News Corp’s subscription video services, largely Foxtel, grew 77% in the second financial quarter, boosted by the company’s streaming platform.
The company reported revenue for subscription services at US$511 million for the three months to December, up 2% from the same time last year.
Residential and commercial subscribers were down, with broadcast subscriber churn in the quarter up to 17.5% from 16% the year prior. News Corp is attributing this to fewer promotions and the rollout of lower value subscribers which helped offset the decrease.
“The second quarter of fiscal 2021 was the most profitable quarter since the new News Corp was launched more than seven years ago, reflecting the ongoing digital transformation of the business,” says chief executive Robert Thomson.
“There was a 77% rise in Segment EBITDA at the Subscription Video Services segment, where the exponential evolution at Foxtel continued apace, with streaming customers increasing over 90%, rights costs reset and audiences for summer sports at unprecedented levels.”
As of December 31, 2020, Foxtel’s total closing paid subscribers were 3.31 million, up 12% from the prior year, with 2 million of total closing subscribers residential and commercial broadcast subscribers.
The remaining 1.31 million were Kayo, Binge and Foxtel Now subscribers.
As of December 31, there were 648,000 Kayo subscribers, 624,000 paying, compared to 372,000 subscribers, 350,000 paying, in the prior year.
Binge, which launched in May 2020, had 468,000 subscribers, 431,000 paying, as of December 31, 2020.
As of December, 2020, there were 265,000 Foxtel Now subscribers, 258,000 paying, compared to 343,000 subscribers, 334,000 paying, in the prior year.
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