Kayo, Stan, Paramount & Optus Sport Subscription Numbers

[Kwality]

Commentary on News Corp results by the CEO:

News Corp reports record revenue spike, up 11% to $14.9bn

News Corporation has today reported its financial results for the three months and fiscal year which showed an 11% increase in 2022 full-year revenue to $US10.39 billion (A$14.85 billion).Net income for the year to June was $US760 million (A$1.08 billion), a 95% lift from the $US389 million...

mumbrella.com.au

 

[The_Wookie]

 

[Kwality]

'The total number of paid cable and streaming subscribers was up 16 per cent to a record 4.5 million.

The number of residential Foxtel cable subscribers was down 10 per cent to 1.44 million, compared to the end of the first quarter of last year, while the number of commercial cable subscribers was up 35 per cent to 219,000.

The number of pay subscribers to the Kayo Sports streaming service was up 19 per cent to 1.3 million compared with 1 million at the end of the first quarter of last year.'

News Corp shares tank 11pc as net income dives

News Corp shares have fallen more than 11 per cent despite chief executive Robert Thomson labelling issues buffeting its business as “ephemeral, not eternal”.

www.afr.com

 

[Kwality]

STAN: not sure this belongs here ?

Nine flags significant growth in 9Now and extends Stan's investment in live streaming

Nine will focus on “digital growth” being key to the media giant’s longer-term strategy to use content to deliver revenue streams from both consumer subscriptions and advertising, across all platforms, after digital earnings “grew strongly” up by 43% and now accounting for more than half of...

mumbrella.com.au

'Speaking at the company’s AGM on Thursday, Nine chairman Peter Costello said:” Across the year, Nine remained focused on its long-term objectives of growing the Nine business, and reweighting it towards its digital future.'

“The growth in 9Now, and the initiation of significant revenue from the digital platforms, are testament to the success of this focus. In addition, we have extended Stan’s investment in live streaming, successfully differentiating our Subscription-Video-On-Demand platform from the plethora of other international services.'


As for sports rights, Sneesby said: “We’re looking at each sport that we acquire the cost of those sports rights, against the revenue that it generates from the subscribers that are attributed. So, that comment says to the fact that some of the sports that we’ve acquired are already delivering a positive contribution where the subscription revenue is greater than the cost of the licensing and production of those sports.

He added: “It takes time and investment to make your money back. We’ve already had very positive outcomes in terms of the sports being better than the expectation when we acquired those sports and we put our business plans together.”

As for replying to a comment in relation to live streaming predominantly being sport, Sneesby explained: “Your other comment in relation to live streaming being primarily sport and the comments about other live streaming do point to the fact that we will look for other opportunities for live streaming outside of the sports space, potentially in entertainment or other genres that make sense in a live environment.”

 

[The_Wookie]

 

[Kwality]

News Corp has reported steady third-quarter revenue in the face of headwinds from rising interest rates, persistent inflation and ongoing supply chain disruption, while progressing its digital transformation.

Accounting for foreign exchangevolatility, News Corp’s total third-quarter revenue edged down 2 per cent to $US2.45bn, compared to $US2.49bn in the prior year.

Total circulation and subscription revenue reached $US3.32bn, up from $US3.25bn.

Foxtel Group recorded 4.6 million subscribers – up 3 per cent on the prior corresponding period and streaming subscribers at Kayo Sports, BINGE and Foxtel Now exceeded 3 million. Mr Thomson said broadcast churn was at a record-low level in March of under 10 per cent.

https://www.theaustralian.com.au/business/media/news-corp-thirdquarter-revenue-resilient-in-face-of-economic-pressures/news-story/228f732ded9a13c105d91acc5502579a

 

[The_Wookie]

Subscription Video Services Revenues of $477 million in the quarter decreased $17 million, or 3%, compared with the prior year, due to a $28 million, or 5%, negative impact from foreign currency fluctuations. Adjusted Revenues of $505 million increased 2% compared to the prior year. Higher revenues from Kayo and BINGE, driven by increases in both volume and pricing, were partially offset by the impact from fewer residential broadcast subscribers. Foxtel Group streaming subscription revenues represented approximately 26% of total circulation and subscription revenues in the quarter, as compared to 20% in the prior year.

As of March 31, 2023, Foxtel’s total closing paid subscribers were over 4.5 million, a 6% increase compared to the prior year, primarily due to the growth in streaming subscribers driven by BINGE and Kayo, partially offset by lower residential broadcast and commercial subscribers. Broadcast subscriber churn in the quarter improved to 12.3%, the lowest level since Fiscal 2016, from 14.3% in the prior year. Broadcast ARPU for the quarter increased 2% year-over-year to A$84 (US$57).

Segment EBITDA in the quarter decreased $11 million, or 14%, compared with the prior year, reflecting a $4 million, or 5%, negative impact from foreign currency fluctuations. The decline was primarily due to higher sports programming rights costs, driven mainly by contractual increases across AFL, NRL and Cricket Australia, partially offset by lower marketing spend for Kayo and BINGE and lower transmission costs. Adjusted Segment EBITDA decreased 9%.

https://investors.newscorp.com/static-files/62a93cdb-6905-4d2a-b8f5-43e3c7fb9a43

 

[Gigantor]

The decline in the sale of their premium subs is almost starting to plateau.
It's really quite extraordinary that so many premium subs remain.

 

[Kwality]

what are premium subs ?

 

[Kwality]

Kayo, Binge and Foxtel Now paid subscribers cross three million mark

Paid subscribers of Foxtel Group’s streaming services (Kayo Sports, Binge and Foxtel Now) have crossed the three million mark, according to its full-year financial results.Released as a part of News Corp’s results this morning, Foxtel Group said there are now 4.723 million (4.650 million paid)...

mumbrella.com.au

Kayo, Binge and Foxtel Now paid subscribers cross three million mark​

Released as a part of News Corp’s results this morning, Foxtel Group said there are now 4.723 million (4.650 million paid) total group subscribers, up 4% on the prior corresponding period.

Key figures breakdown​

• Kayo Sports reached 1.411 million subscribers (1.401 million paid), up 8%
• BINGE reached 1.541 million subscribers (1.487 million paid), up 22%
• Foxtel Now reached 177,000 subscribers (170,000 paid), down 12%
• Foxtel Residential subscribers declined 9% to 1.341 million
• Broadcast ARPU rose 2% to A$84 (for the fiscal year ended 30 June 2023, year-on-year), through a continued focus on Foxtel’s premium brand positioning

 

[The_Wookie]

 

[The_Wookie]

Revenues of $470 million in the quarter increased $8 million, or 2%, compared with the prior year, driven by higher revenues from Kayo and BINGE from increases in both volume and pricing, despite a more difficult Summer sports season and inflationary pressures, partially offset by the impact from fewer residential broadcast subscribers and a $6 million, or 1%, negative impact from foreign currency fluctuations. Adjusted Revenues of $476 million increased 3% compared to the prior year. Foxtel Group streaming subscription revenues represented approximately 29% of total circulation and subscription revenues in the quarter, as compared to 26% in the prior year.


As of December 31, 2023, Foxtel’s total closing paid subscribers were over 4.3 million, flat compared to the prior year, as growth in streaming subscribers driven by Kayo and BINGE was offset by fewer residential broadcast subscribers. Broadcast subscriber churn in the quarter was flat compared to the prior year at 12.9%, despite the completion of Foxtel’s migration project of subscribers off cable. Broadcast ARPU for the quarter increased 3% year-over-year to A$86 (US$56)

Segment EBITDA of $77 million in the quarter decreased $13 million, or 14%, compared with the prior year, which includes a $1 million, or 1%, negative impact from foreign currency fluctuations. Adjusted Segment EBITDA of $78 million decreased 13% compared to the prior year, primarily due to higher sports programming rights costs driven mainly by contractual increases across AFL and NRL and $10 million of costs related to the upcoming launch of Hubbl partially offset by higher revenues and lower technology and marketing costs

 

[peetoo]

Streamotion login now Hubble. Who knew

 

[Bjo187]

I found this article interesting. Sounds like foxtel are going to struggle to pay for the afl tv rights next year. FTA tv advertising has gone to s**t too, it seems like the afl got lucky when they locked in their deal for 2025 onwards.

Foxtel faces its streaming apocalypse

Once the country’s most profitable media group, Foxtel is losing subscribers and is facing a mega-sports rights bill. Will it make it through?

www.afr.com

 

[Billy ray]

I found this article interesting. Sounds like foxtel are going to struggle to pay for the afl tv rights next year. FTA tv advertising has gone to s**t too, it seems like the afl got lucky when they locked in their deal for 2025 onwards.

Foxtel faces its streaming apocalypse

Once the country’s most profitable media group, Foxtel is losing subscribers and is facing a mega-sports rights bill. Will it make it through?

www.afr.com

Could Broadcom and ABC save the day!

 

[weewilly]

I found this article interesting. Sounds like foxtel are going to struggle to pay for the afl tv rights next year. FTA tv advertising has gone to s**t too, it seems like the afl got lucky when they locked in their deal for 2025 onwards.

Foxtel faces its streaming apocalypse

Once the country’s most profitable media group, Foxtel is losing subscribers and is facing a mega-sports rights bill. Will it make it through?

www.afr.com

Very lucky and lets hope the AFL spend the windfall wisely!

It will be interesting to see what RL gets in 2028 you would think that with both FTA and Foxtel struggling it won't match the AFL bonanza.

 

[The Educator]

I found this article interesting. Sounds like foxtel are going to struggle to pay for the afl tv rights next year. FTA tv advertising has gone to s**t too, it seems like the afl got lucky when they locked in their deal for 2025 onwards.

Foxtel faces its streaming apocalypse

Once the country’s most profitable media group, Foxtel is losing subscribers and is facing a mega-sports rights bill. Will it make it through?

www.afr.com

Just to further dispel any delusions about the NRL's TV deal.....


"From 2025, Foxtel will pay, on average, an extra $111 million a year more for the AFL rights than it has paid for the past five years – from an average of $307 million to $418 million. This is not money that is lying around."



"Over the next year or so, the NRL will tap broadcasters to begin to renegotiate its own deal, extended during the pandemic and worth about $220 million a year to Foxtel. In other words, for three years, the NRL – which some argue is more valuable to a broadcaster – will be paid hundreds of millions less than the AFL. It will expect a similar sized deal to its rival football code."

 

[weewilly]

Just to further dispel any delusions about the NRL's TV deal.....


"From 2025, Foxtel will pay, on average, an extra $111 million a year more for the AFL rights than it has paid for the past five years – from an average of $307 million to $418 million. This is not money that is lying around."



"Over the next year or so, the NRL will tap broadcasters to begin to renegotiate its own deal, extended during the pandemic and worth about $220 million a year to Foxtel. In other words, for three years, the NRL – which some argue is more valuable to a broadcaster – will be paid hundreds of millions less than the AFL. It will expect a similar sized deal to its rival football code."

"which some argue is more valuable to a broadcaster – will be paid hundreds of millions less than the AFL. It will expect a similar sized deal to its rival football code." Only deluded NRL fans believe the BS!

On those figures that seems about right for the RL/NRL in 2028 but if things keep going bad for Foxtel in particular due the public cost cutting due to harder economic times that causes a drop in subs it might be much less!

 

[Bjo187]

"Over the next year or so, the NRL will tap broadcasters to begin to renegotiate its own deal, extended during the pandemic and worth about $220 million a year to Foxtel. In other words, for three years, the NRL – which some argue is more valuable to a broadcaster – will be paid hundreds of millions less than the AFL. It will expect a similar sized deal to its rival football code."

I did laugh at this line myself, on what planet is that possibly the case, other than in the Sydney media's mind?

 

[The_Wookie]

 

[The Educator]

I did laugh at this line myself, on what planet is that possibly the case, other than in the Sydney media's mind?

It is rooted in the comically amateurish misreading of ratings figures.

It is certainly hard though to make the case that the AFL is worth double to news limited what the NRL is......which is kinda hilarious that these unhinged league nutters are essentially cross subsidising the AFL through their fox/ kayo subscriptions!

 

[Bjo187]

It is certainly hard though to make the case that the AFL is worth double to news limited what the NRL is......which is kinda hilarious that these unhinged league nutters are essentially cross subsidising the AFL through their fox/ kayo subscriptions!

Lol classic. I've always put it in realistic terms that the AFL should be about 1/4 bigger in the tv rights space. Which I think traditionally is about the case dollars wise. V'landy's did a number on them and got that down to nearly half the value for the next 3 year's though .

 

[RUNVS]

Whoever buys Paramount better renew Star Trek Lower Decks or I am going to go on a one man riot.

 

[threenewpadlocks]

It is rooted in the comically amateurish misreading of ratings figures.

It is certainly hard though to make the case that the AFL is worth double to news limited what the NRL is......which is kinda hilarious that these unhinged league nutters are essentially cross subsidising the AFL through their fox/ kayo subscriptions!

To be fair, I'm sure Fox have their own internal statistics that show that a roughly equivalent number of people would subscribe to Kayo for the purposes of the NRL as they do the AFL. I don't think that's untrue.

Whether that inherently means that NRL is just as important as AFL to Fox doesn't necessarily follow, because there's a million other things at play to the value of the supporter, but at least through that one obvious raw metric, it's not necessarily untrue.