Gizmo Lovers Blog » Foxtel

Foxtel Responds To TiVo In Australia

MegaZone — Mon, 17 Nov 2008 08:23:51 +0000

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.

Foxtel Chief Exec Takes A Swipe At TiVo

MegaZone — Sat, 15 Nov 2008 02:21:15 +0000

Foxtel is TiVo’s primary competitor in Australia. While TiVo is sold by Seven Network and is a ‘free to air’ DVR used with broadcast TV, with no subscription fees, Foxtel’s iQ/iQ2 DVRs are used with Foxtel’s pay TV service. It is akin to DirecTV or Dish Network in the US, and beyond the initial acquisition fees there are ongoing monthly fees, which can be quite steep if you want the full range of channels. According to the Herald Sun, Foxtel chief executive Kim Williams took an opportunity to throw some FUD (Fear, Uncertainty, and Doubt) in TiVo’s direction:

[F]or Seven Network, “the horse has bolted”.
“The iQ is the industry standard,” Mr Williams said.
“I see TiVo as a latecomer with little to recommend it.”

Sounds to me like someone is worried, you don’t need to take swipes like this at a competitor if they’re really no threat to your business.

Freeview No Threat To TiVo Australia According To CNET

MegaZone — Mon, 07 Apr 2008 18:55:39 +0000

CNET Australia, responding to an article in MISAustralia / Financial Review, breaks down why they feel that the talk of Freeview in Australia is just a smoke-screen and not a real threat to Seven Network’s deployment of TiVo. The MIS/FI article certainly is full of weasel words like “understood to have said” and “is believed to have”, without citing any hard facts or sources to back up the speculative statements. It really comes across as written by someone with a bias towards Freeview, looking for an angle to pile some FUD on Seven’s TiVo plans.

CNET certainly seems to feel that way as well, breaking down the Australian DVR market and why they feel TiVo will still be a strong brand.

We’re not apologists for TiVo, but we don’t think it’s an amazing idea, given that the marketplace is going to be crowded with plenty of different options come the middle of the year — Foxtel iQ2, TiVo, IceTV, etc. We don’t think “branding” the already available EPG will make much of a difference to whether TiVo launches or not.

The Freeview board is only meeting for the first time this Friday, so their plans are still hazy. It sounds like they’re starting off with nothing more than a branding exercise. They’ll be putting the Freeview brand and logo on their existing EPG and digital channels, and only later will they be offering actual Freeview DVR hardware. It sounds like an effort to forestall adoption of TiVo, which Seven is planning to bring to market in June, as well as slow adoption of the Foxtel iQ2 DVR. Since the Freeview camp won’t have hardware to compete, they’re going to rely on pushing the brand without hardware to back it up and FUD about the competition.