Foxtel could raise its prices and cut spending on sport – Daily Mail

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Foxtel could raise its prices and cut spending on sport as it’s revealed pay TV service lost a staggering $417 million in 2018

  • Foxtel reported a loss of $417 million during the course of 2018
  • The majority owner News Corp reported the information to the ASX on Monday 
  • The paid television service said it will cut spending on ‘non-marquee sports’ 

Foxtel has confirmed that it will hike prices for customers and cut spending on ‘non-marquee sports’ after New Corp, the company’s majority owner, revealed it lost $417 million in 2018.  

News Corp reported the information to stock exchange ASX on Monday, according to the Sydney Morning Herald

It was not immediately clear what sports would be cut but industry insiders believe that Super Rugby and Wallabies tests could be affected as well as A-League soccer.

A Rugby Australia spokesperson said: ‘We are in the very early stages of constructive discussions with Foxtel.’ 

Foxtel will raise prices and cut spending on sport after TV service lost a staggering $417 million in 2018 (stock)

In 2018 Foxtel had an operation cost of $2.56 billion, with $800 million related to sports rights and production costs.  

Some doubts have also been cast on Football Federation Australia’s contract which expires in  2022/2023 season.

Ratings have dropped but FFA chief executive David Gallop said there is not concern over the security of the contract. 

Foxtel’s majority owner News Corp reported the information to the ASX on Monday, according to the Sydney Morning Herald

The document released to ASX suggested another way that they could help make money – by raising subscription costs.

It also highlighted the possiblity of reducing marketing spending and staff cuts as a way of clawing back revenue. 

The document also indicated that certain packages would come under review and would become more expensive.    

Eyebrows have been raised about the shortfall because Foxtell was handed a $30million grant by the Turnbull government to boost certain sports.

According to a report by the Sydney Morning Herald 12 sporting codes had received payments from that grant. 

Foxtel last raised prices back in September last year. 

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