Foxtel has announced that it will be introducing live sports and Sky News Australia to its streaming service Binge for the first time.
👉 Background: Foxtel is the Australian pay-TV company that started in 1995, originally as a joint venture between News Corp and Telstra. When the world was transitioning towards streaming services, Foxtel joined in and launched Binge, Kayo, and Flash - all offering different content.
👉 What happened: Foxtel has announced that it will be introducing live sports and Sky News Australia to its streaming service Binge for the first time. We’re talking Big Bash, regular season AFL and NRL matches as well as some talk shows.
👉 What else: Foxtel is looking to boost subscriber numbers as it will be losing all HBO shows like House of the Dragon from its platform with HBO Max coming to Australia next year. But, bringing live sport to Binge could be a risky move for Foxtel, as it could end up cannibalising its other offerings.
💡Product cannibalisation is when a new product eats into the sales or market share of an existing product - rather than bringing in new revenue. It tends to happen when a new product directly competes with an existing one.
💡Foxtel cannibalised its OG, pay-TV offering by introducing streaming services:
According to all reports this seemed to be an effective move - the streaming services have more than 3 million subscribers combined.
💡Until now, these streaming services all catered to different audiences. But with Binge stepping into Kayo’s sports territory, Foxtel’s got some content overlap happening on its platforms and it runs the risk of cannibalisation.
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