Yahoo Finance Foxtel to CUT SPORTS after losing $417 million
Foxtel will cut some sports and potentially raise package prices after losing $417 million last year.
In a statement to the ASX on Monday, parent company News Corp revealed the Foxtel's financial numbers and its plans to turn its fortunes around.
The pay television provider, which is 65 per cent owned by News and 35 per cent owned by Telstra, lost $417 million before income tax expenses for the 2018 calendar year.
The traditional cable TV business is losing subscribers as Australians take up less expensive streaming services like Stan and Netflix. Foxtel's own internet offerings like Foxtel Now and Kayo are growing their customer bases.
But with the company bleeding cash, certain "non-marquee" sports will be removed, staff numbers will be reduced, and some packages may suffer price hikes.
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"Foxtel management is reviewing the pricing for its various programming packages, including the potential price increases for certain tiers," the company stated.
The reduction in Foxtel's sports spend will ring alarm bells for Rugby Australia and the A-League, as they are yet to sign their next television rights contracts.
And soccer and rugby union are not as valuable to Foxtel as rival football codes the AFL and NRL, which are both crucial to subscription numbers in Australia.
Last year Foxtel, along with free-to-air network Seven, signed a $1.2 billion contract with Cricket Australia. But that deal, according to Fairfax Media, has not brought the subscriber boost during the summer months that the pay TV company was hoping for.
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