Get Started, currently $45 per month is renamed as Essentials at $47 per month (includes IQ).
Add-on packs Kids & Music, Drama & Lifestyle and Knowledge & Adventure (renamed Documentary & Adventure), currently $16 per month, drop to $15 per month for one, $20 for two and $25 per month for three.
Movies which were $32 per month drop to $25 per month.
But Sport increases from $16 per month to $25 per month.
Foxtel attributes the changes to part of its merger with Austar, bringing different technology platforms and pricing and packaging in both metropolitan and regional areas, into one single product. It claims the revenue it will receive each month will not change as a result of the new prices.
The last price increase was November 2011.
The new prices take effect from March 1st.
Foxtel has already improved the line up for regional customers by adding new channels (MTV Live and MTV Hits) and increasing the number of channels available in HD (MTV Live HD, Nat Geo HD, Discovery HD, Nat Geo Wild HD).
We are currently investing millions of dollars to upgrade MyStar (regional) personal video recorders (PVRs) so that they have the similar functionality to iQ PVRs. This includes the ability to be connected to the internet and get access to Foxtel’s extensive library of catch up on demand content. The upgrade will be complete later in the year.
In the interim we have launched a limited video on demand movie service which means that every movie package subscriber who has an iQ or MyStar PVR will be able to get up to three recent release movies each week at no additional cost. These can be found in the “On Demand – Featured” section of the Planner for iQ and in the “Featured” section of the Planner for MyStar.
We are currently working on the first truly national PVR, the iQ3, which will combine the best of the iQ and MyStar functionality and add many new features that draw on the best set top box technology from around the world.
In March we will introduce a standardised price and package structure (see attachment) which will create a simple and unified national system. Naturally, as we are aligning different and quite complex pricing structures, there will be some customers who will pay a little more and some who will pay the same or less than they currently do. This will be true for both regional and metropolitan customers.
Approximately twenty five per cent of subscribers will save money, around 25% will experience no change in their price and fewer than 1% will receive an increase of more than $3.05.
The total monthly recurring revenue Foxtel receives from subscribers will not increase as a result of these changes.
A key element of the change is that, in future, iQ and MyStar will become standard equipment for all new packages.
The new packaging is simpler with three, equally priced premium options: Sports, Movies & Premium Drama and General Entertainment (which has a further three themed sub-options). Subscribers can choose to change their package month to month to suit their viewing preferences by calling us on 131 999 or visiting My Account at www.foxtel.com.au.
At the same time we are continually seeking to add value to the product that we offer. Recent improvements have included better content (showcase: the “Home of HBO”, the revamp of SoHo for all subscribers, Express content and London 2012), and better technology and access (Foxtel Go for iPad, soon to be extended to PCs, Mac, iPhone and Android devices). These new channels and services have been added at no additional cost to subscribers.
There is plenty more planned for 2013.
The end game is to have a national company with a single technology platform, and consistent pricing and product offerings. This will take a little more time to achieve, but we are making significant progress towards it.