Foxtel is pinning its hopes on the upcoming NRL and AFL seasons to revive growth after its new streaming platform, Kayo Sports, suffered an unexpected slump in subscribers following an underwhelming summer of cricket.
The pay TV giant’s Murdoch-controlled parent company, News Corp, revealed in an update to investors on Friday that Kayo’s paying subscriber base had declined by 35,000 since November to stand at 370,000.
Kayo was launched by Foxtel in November 2018 as a cheaper offering targeting customers unwilling to pay higher prices for Foxtel. Internally it was viewed as a key growth driver for News Corp in Australia. The service costs $25 a month compared to upwards of $50 a month for Foxtel.
“With the conclusion of Australia’s popular winter sports and the Rugby World Cup, the number of paid subscribers in Kayo fell from the prior quarter,” chief executive Robert Thomspon told investors.