How Foxtel plans to fight Netflix

IT’S one of the most highly anticipated products to launch in Australia in recent memory, and is set to shake up the entire TV industry.

AMERICAN streaming service Netflix launches in Australia tomorrow.

It’s one of the most highly anticipated products to launch in Australia in recent memory, and is set to shake up the entire TV industry.

From just AU$8.99 a month, Australians will be able to stream a variety of exciting and diverse titles from the Netflix catalogue.

Local players aren’t taking it lying down. Channel 9 and Fairfax have loaded big bucks into promoting their new service Stan, and signed up a few key titles exclusively to the service like Better Call Saul and the new season of Community.

The company with the most to lose, however, is Foxtel.

Foxtel has traditionally had the monopoly when it comes to the pay-TV market, with essentially no competition. Until Netflix.

Foxtel has a three-pronged attack to combat the American service from stealing its territory.

The first of these was originally launched last year, Foxtel Presto. It essentially featured the movies that were available to watch on its cable movie channels for people to stream over the internet for $20 a month. It faced lots of criticism for its $20 price tag, which Foxtel eventually dropped to $10.

In January, Foxtel revamped Presto in partnership with Seven West Media, now offering TV shows from both Foxtel and Channel 7’s catalogue for $10 a month with just movies or just TV shows, or $15 for both.

The service is headlined by shows like Modern Family, Boardwalk Empire, True Blood and Australian content like Packed to the Rafters. However, it has received some criticism for not including other key Foxtel exclusive shows like Game of Thrones and its lack of HD streaming.

Today, Foxtel and Telstra have announced that Presto will be free for both new and existing T-Box customers. It will also be unmetered for both Telstra and Foxtel broadband customers.

This means hundreds of thousands of people will have access to Foxtel’s streaming service for free before Netflix launches. It’s a bold, but potentially very successful move.

Foxtel and Telstra have announced that Presto will be free for both new and existing T-Box customers.

Also launching today is the company’s hugely anticipated IQ3 box, priced at $125 plus installation costs. The box incorporates free-to-air TV, Foxtel channels and its video-on-demand content to stream. Including Game of Thrones, available to both watch the same time as it airs in the USA or stream every episode using the Box Set service.

Headlining the new features is Start Over, which allows you to go back to the beginning of a show that has already started in case you tuned in late.

The user interface is also heavily improved, with much more fluid movement, faster loading times and is easier to use. Little things like finding channels have been improved, with IQ3 now predicting what channel you might be looking for as you starting typing the number.

With much more storage, you’re now able to record up to 172 hours of HD or 345 hours of SD shows.

But having a fancy new box is just one thing, content still needs to be there to entice people to sign up.

Foxtel is banking big time on its sport to draw customers in to all its content, dropping the minimum price for its sports channels to $50 a month. It has also significantly upped its sport content, signing up both the V8 Supercars and Formula 1 to complement its NRL, AFL, A-League and American sport offerings. If you’re a sports fan, you don’t really have any other options if you want to guarantee the ability to watch any game you want. Foxtel then hopes since you’re subscribed to that, you will then add the movies or drama pack instead of signing up to Netflix or Stan.

The pay-TV market will get more intense than ever, with the exclusivity of content deciding the winner.

News Corporation, publisher of news.com.au is a part-owner of Foxtel.