Foxtel streaming service four to six weeks away: Patrick Delany

Foxtel chief Patrick Delany says the company will launch its new entertainment streaming service within four to six weeks.

Foxtel CEO Patrick Delaney. Picture: Britta Campion / The Australian

Foxtel chief executive Patrick Delany has confirmed the company will launch its new entertainment streaming service within the next four to six weeks as the subscription television operator prepares to finalise a bid for a content deal with HBO.

The decision to launch Binge — which it is understood the new service will be called — during the COVID-19 pandemic comes at a critical time for Foxtel as it will do battle with an array of streaming services at the same time its sports streamer Kayo faces lost subscribers in a sports-free world.

It also comes as Foxtel is in the middle of tough negotiations with the NRL and Nine Entertainment about the length of the 2020 season and how much will be paid for this year’s broadcast rights.

Speaking to The Australian, Mr Delany said the market was ready for a new streaming service, with the platform designed and operated by the same team that brought Foxtel into sports streaming with Kayo.

“Our new service is going to deliver something quite unique to Australians who want outstanding entertainment with a fresh new user experience,” he said.

Binge will focus on box sets and complete seasons of content, rather than week-to-week episodes, with full seasons of hits such as Game of Thrones, The Sopranos, West World and Succession.

The price point of Binge will compete with the likes Stan, whose introductory offers start at between $10 and $14 a month. However, it is likely the service will initially be discounted with free trials — especially for those already subscribing to Kayo.

In the platform in development for about a year as Project Ares within News Corp, Mr Delany did not deny its name would be Binge, with Foxtel previously having a channel of the same name.

Mr Delany confirmed the new service would start as early as next month, but not before News Corp’s results on May 7 in New York, where an official announcement is expected. “I’d prefer not to comment on speculation about a name but we are going hard to get our new entertainment streaming service up in four to six weeks’ time,” Mr Delany said.

Binge will enter a hugely competitive market, with more than 10 streaming services, including Nine Entertainment’s Stan, Amazon Prime and Disney+, all competing for viewers during the COVID-19 pandemic.

Foxtel and other subscription services have received a huge ratings boost during the pandemic and Mr Delany believes the time will be beneficial for the new service which, like Kayo, will focus on subscribers who don’t already have Foxtel. “Viewership on Foxtel is up 25 per cent on this time last year so we know that a product carefully targeted at the 70 per cent of Australians who don’t have Foxtel is going have extra relevance as ­people settle in at home supporting social isolation measures,” Mr Delany said.

As well as a 25 per cent increase in total viewing, as of April 11 movies viewing is up 108 per cent while Sky News is up almost 100 per cent. Foxtel networks were up 36 per cent, with the Comedy Channel and BoxSets the most popular.

Foxtel has also made its full drama and comedy packages available to all subscribers.

The launch makes the finalisation of a new Foxtel deal with HBO owner AT&T more important, with the deal expected to be completed in the next few weeks. It would result in Foxtel holding onto HBO content beyond the next two years.

While HBO will launch its own streaming service in the US, HBO MAX, it is likely to continue to share with local providers like Foxtel and Stan in exchange for tens of millions of dollars in guaranteed content deals.

Fox Sports viewership is down 61 per cent on the previous year. Key to reversing that trend will be the resumption of winter sports, with talks between Foxtel, Nine and the NRL to restart this week.