Foxtel to Announce Pricing Undercutting Optus Vision and Programming Deal with Artist Services
Ben Potter reports that Foxtel, the pay TV venture of Telstra and News Corp, is expected to announce pricing that undercuts its rival Optus Vision and a programming deal with Artist Services. The announcements could be made by News Corp's chairman, Rupert Murdoch, at the company's annual meeting in Adelaide. Discussions between Foxtel and Artist Services, which is half-owned by the John Fairfax newspaper group, center on first-run drama and reruns of popular shows.
Key Takeaways:
- Foxtel is expected to announce pricing that undercuts its rival Optus Vision, with estimates suggesting a connection fee of $250 to $300 compared to Optus Vision's $30 for a connection.
- Foxtel is also expected to announce a programming deal with Artist Services, which includes first-run drama and reruns of popular shows such as Fast Forward.
- Pay TV licensees must devote 10 per cent of their budgets to first-run Australian drama, but the rules for this are not set.
- Foxtel launches its 20-channel service in two weeks.
- Industry sources suggest that Foxtel will not price higher than Optus Vision, with one insider stating: "Murdoch doesn't do that. He's into price wars."
- Artist Services general manager, Nick Murray, declined to comment on the potential deal with Foxtel.
- Ben Potter's sources suggest that Rupert Murdoch and BSkyB chief Sam Chisholm may be involved in negotiations with Foxtel.
Statistics:
- Estimated connection fee for Foxtel: $250 to $300
- Connection fee for Optus Vision: $30
- Monthly cost for a basic channel package on Optus Vision: $25
- Monthly cost for a basic plus sport or movies package on Optus Vision: $35
- Monthly cost for the entire package on Optus Vision: $40
Sources:
- "Foxtel to announce pricing undercutting Optus Vision and programming deal with Artist Services" by Ben Potter