Foxtel Responds To TiVo In Australia

Posted on Monday, November 17, 2008 by MegaZone

Well, it seems that Foxtel just may be worried about competition from TiVo in Australia. First their chief exec tried flinging FUD, and now they’re offering discounts. While TiVo is sold for a flat AUD$699 with no subscription fees, Foxtel is a pay TV service. So while the upfront costs are lower, there are ongoing fees. As I wrote in July:

Seven’s major competitor is the pay-TV service Foxtel, which offers their Foxtel iQ2 DVR. While the iQ2 is only AUD$200, AUD$500 less than TiVo, there is a monthly fee. The iQ2 costs AUD$10-15 on top of the standard Foxtel subscription (Foxtel is a Pay TV service), which runs AUD$37.95 up to AUD$105.95 a month, depending on the level of service. Since the TiVo records free-to-air broadcasts and has no monthly fee, it rapidly becomes the less expensive option.

Well, with TiVo selling well in Australia, it seems that Foxtel is making moves to remain competitive. Rapid TV News reports that Foxtel is offering discounts and better contract terms on their DVRs. The Foxtel iQ SD DVR is being offered without an install fee and free of the AUD$10 monthly DVR fee for one year. The iQ2 HD DVR is still AUD$200 upfront, but Foxtel is waiving the DVR fee for seven months. They’re also offering the service with a 12-month commitment, instead of their usual 24-month plan.

In the end competition is good for consumers.

About MegaZone

MegaZone is the Editor of Gizmo Lovers and the chief contributor. He's been online since 1989 and active in several generations of 'social media' - mailing lists, USENet groups, web forums, and since 2003, blogging.    MegaZone has a presence on several social platforms: Google+ / Facebook / Twitter / LinkedIn / LiveJournal / Web.    You can also follow Gizmo Lovers on other sites: Blog / Google+ / Facebook / Twitter.
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  • Shetland

    i think it’s more about foxtel trying to crush tivo. read last week that tivi announced they’ve sold only 12000 tivos, so they are struggling as well.

  • http://www.eyrie-productions.com/ Gryphon

    Well, there are what, eight million or so households in Australia, of which maybe a quarter have access to cable, and not all those that have access actually partake. They’ve been selling TiVos there since July – the back half of the year, not including the Christmas holiday run-up (which I’m assuming is a similar sort of retail frenzy down there). Doesn’t seen like such a bad start to me.

  • http://www.gizmolovers.com/ MegaZone

    Yeah, and Seven themselves says sales are on target. They still say they can sell 25,000 by the end of the year, what with holiday sales. And, as I posted in July, their goal is 50,000 sold in the first year, and their break even is lower than that. Seven is just starting to roll out the value-add broadband services for TiVo, which should also help sales.