Foxtel's CEO Kim Williams said the pay TV company's new subscriber sales had been "dreary" over the past 18 months.
Williams also said free-to-air TV rivals had “seriously challenged” the company’s ability to sign up new customers.
Speaking at the annual ASTRA conference in Sydney today, Williams said pay TV viewing levels were holding up in existing subscriber homes against more channel choice from free-to-air networks but new subscribers were a problem.
“It’s a good news story from the perspective of existing customers,” he said. “But the paradox is that, while our existing customers enjoy and consume that which we provide more than they ever have, it has been challenging over the last eighteen months to convince new customers to take the service.
"The FTAs have used their ACMA gifted free advertising minutes to promote Freeview very heavily on prime time television. Not at all surprisingly it has had a real impact. And so it should have, given that it is the largest and most lavishly supported promotion campaign in the history of public consumer marketing in Australia.
"This free advertising has created a lot of noise and confusion in the market place and given people a reason to be even more cautious about making a positive decision on acquiring our product. This will pass as comparisons are made – ones which will work to our benefit.
“However, importantly Freeview has temporarily taken our “choice” proposition with a fresh multi-channelling proposition at a great price. At the same time new “over-the-top” entrants have challenged our “depth of choice and control” message."
Williams closing remarks, however, pointed to some improvement for new Foxtel subscribers.“There is some tentative good news on that front also – over the last two months or so our sales have come back progressively,” he said.
“In fact, we have seen seven weeks of slow improvement with consistent growth. Now I don’t want to get over the top about it – but there are encouraging signs that give me cause for optimism.”
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