Yahoo Finance It’s official: Netflix and Foxtel are partnering up, here’s what it means
Netflix and Foxtel have today confirmed a deal that will allow Foxtel subscribers to access Netflix as an app from their set-top box.
SBS On Demand will also be available through Foxtel, Foxtel CEO Patrick Delaney said on Wednesday.
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But for Foxtel subscribers, the best news could be that they will get Netflix for free for six months with the sport, entertainment and drama $58 a month bundle.
Customers on standard plans of $49 or more with 12 month contracts will also receive the complementary Netflix.
Outside of this, however, users are required to have a Netflix subscription in addition to the Foxtel subscription.
Additionally, only Foxtel broadcast customers will get the new service, with Netflix not yet available for Foxtel Now streaming set-top boxes.
“The new customer interface puts two entertainment powerhouses together providing Foxtel customers with access to Netflix service alongside our Foxtel Originals and programs from HBO, FX, the BBC and more,” Delaney said.
“More than 1.1 million iQ3 and iQ4 set top boxes are already installed in our customers’ homes. Starting today, The New Foxtel Experience simplifies the way iQ4 users can enjoy Foxtel’s incredible range of drama, sport and movies as well as the best of video on demand, with the experience coming to iQ3 users coming shortly after.”
The updates will be rolled-out automatically, with subscribers also set to receive a new Foxtel remote featuring a Netflix button.
‘Solid defensive measure’ for Foxtel
According to Roy Morgan research, around 2 million Australians will receive instant access to Netflix, based on Foxtel subscriptions.
And, Roy Morgan CEO Michele Levine added, the move holds “significant opportunities for both services”.
She added that the move is a “solid defensive measure to help prevent existing Foxtel subscribers ditching the service to move to cheaper alternatives” and also gives extra incentive for new users to sign up.
Cheap streaming video services, led by Netflix in recent years, has been the biggest challenge to Foxtel, and there are more competitors on the way - Australian-owned Stan, Amazon Prime Video and YouTube Premium are growing quickly, Levine explained.
Disney’s much-anticipated streaming platform, Disney+ is also in the works.
As Levine said, if Foxtel can position itself as the “gateway” to content, the more it can tap into user data to tailor services and advertising.
“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.”
“Netflix’s June quarter 2019 results showed a net loss of subscribers in its home market of the United States for the first time in eight years."
Rumours of the partnership abounded earlier this week after an image of the new Foxtel remote surfaced on the internet.
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