Kayo subscriptions down 1% year on year to 1.442m

As of March 31, 2024, Foxtel’s total closing paid subscribers were over 4.5 million, a 1% decrease compared to the prior year, driven by fewer residential broadcast subscribers and lower BINGE subscribers partly offset by strong growth in Kayo subscribers. Broadcast subscriber churn in the quarter was 13.3% compared to 12.3% in the prior year partly driven by the recent Broadcast price increase. Broadcast ARPU for the quarter increased 2% year-over-year to A$85 (US$56).

More information in the Earnings Release here.

Other Reporting:

This has come shortly after a report in the Australian Financial Review warned of a “streaming apocalypse” as content providers such as Warner Bros and the WWE move shows to their own platforms.

The article notes that streaming customers each add very little revenue to Foxtel. They make up 66 per cent of Foxtel’s “customer base”, but just 23 per cent of its revenue. Foxtel’s 1.5 million set-top box customers contribute 63 per cent of its revenue.

The AFR says that Kayo appears to have hit a ceiling with a subscriber base of 1.2 million to 1.4 million people, which is visible from the earnings release data.

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