We don’t really know - it’s quite possible that it will be.
Fox has said they have a “multi-year multi-faceted” agreement with little detail as to what that actually means - it sounds like they’re expecting WBD to launch some kind of streaming service in Australia soon though.
The whole story arc this week has been a tad odd and seems more about one paper wanting to lay the boot into another - while Fox’s position is a little unclear (from the outside), they did indicate when the deal was announced in March that their new deal was built on the ability for WBD to change their delivery model.
Not only that but both sides also indicated that the new deal provides scope for them to work together when it comes to any future WBD streaming service.
If only Disney and Nine-Stan could’ve made that happen back at the end of 2019, the former yanked everything at the snap of a finger and furthermore Foxtel and we’re waiting to see what’s happening with Seven. So rather sceptical… It’s become clear the Hollywood power players want virtually total exclusivity.
I doubt that it was ever going to be possible - Disney’s strategy has been to favour their own platform (and others have followed to some extent).
Whether it actually works or not will be interesting to watch play out - they’ll be hoping that their offerings are more resilient to people service-hopping or people cutting back services as they tighten their belts.
Not sure if discussed but I have the Entertainment Plus package, which only previously gave me access to particular entertainment channels and not all of the drama / documentary channels (e.g. things like BBC earth, ID, HBO etc weren’t included). A few months ago (maybe around Dec/Jan) I noticed that I suddenly had access to all of the entertainment and documentary channels. Previously they have opened them up for a limited time so I thought this would just be the case… but they have remained now for 3-4 months. Has Foxtel upgraded what’s offered in those packages? I’m thinking maybe with the removal of some channels (like E!, Nat Geo etc) they’ve just opened Entertainment Plus up to all Entertainment and Documentaries. They do have some new channels though (like Real Life!)
Real Life was a new channel for the basic package, so everyone got it regardless.
And I am pretty sure Foxtel said they would be migrating everyone over to the updated packages from like Feb or March this year.
So everyones basic package is now called “Foxtel Plus” and also get BBC Earth, BBC FIRST Showcase, Sky 2, Animal Planet & TLC.
The Basic package (Foxtel Plus) is also $49 now, which is pretty much the price of what basic use to cost going back a number of years ago, before they halved it to $25 for the first time.
“The issue at the moment is the market, with Seven West chief executive James Warburton claiming the downturn in the television advertising market is basically a temporary issue and that the market will bounce back.”
Genuine q - can someone explain how it is “a temporary issue”
Australian pay television and streaming company Foxtel, owned 65 per cent by News Corp, publisher of The Australian, and Telstra, has previously shown interest in launching an initial public offering for the entertainment company.
However, one option being discussed is a move where Foxtel is reversed into the Kerry Stokes-backed Seven West Media.
The so-called back door listing could be one way that News Corp could see Foxtel make its way to the public market.
The suggestion appears to be that Fox would buy SWM
I would imagine that as belts tighten that advertising is one of the things that is let go of - the expectation would be that once conditions improve, the market will follow.
Lets take a look at what the article from The Australian says.
Foxtel has previously looked in launching a public offering for the company
An option being discussed is where Foxtel is reversed into Seven West Media
It could be one way that Foxtel makes its way into the public market
A merger seems logical for many, but the question is if the conditions are right for a transaction and whether Kerry and Ryan Stokes are prepared to deal
Some believe that Seven West Media has always been up for sale, but price aspirations have been high by the Stokes family
Market experts think consolidation in the streaming industry is logical because of the amount of players
Talks of Nine buying Foxtel were held in the past 6 months, but nothing came out of it
Seven West’s lagging price has held back its acquisition aspirations in the past
My opinion on what could happen if it does happen
If the Foxtel and Seven merger does happen, I could see the AFL deal changed so that Foxtel get the Grand Final live as well as the Brownlow Medal. Seven would most likely get NRL after the current deal with Nine expires due to the deal with Foxtel (unless Nine/Stan get rights)
With content deals, it would be most likely that Seven and Foxtel get it due to them being one company by then. Possible ones could be the company extending NBCUniversal, Sony and Warner Bros Discovery rights. Disney and Paramount would be unlikely for obvious reasons.
Overall if it does happen it could put the new company in a very powerful position with content and sport rights. Seven could get all the major sports (AFL, NRL, Cricket) and the major content deals with Nine and Ten getting Seven/Fox’s scraps.
