Foxtel's Patrick Delany: Kayo Sports is our Jetstar

Josh McDonnell
By Josh McDonnell | 11 September 2019

Foxtel CEO Patrick Delany has labelled sports streaming service Kayo as "the Jetstar" of the business.

Speaking at a Foxtel event overnight, the pay-TV boss compared the platform to the budget airline, describing the success it has had with tapping into new audiences.

He says the business, which over the past five years has struggled with changing viewer habits, has "embraced the 21st century" and is now "running hard" with its streaming capabilities.

"Kayo is a unique product in the world, this thing rocks. It’s technology stack, interface and use of data. It is our Jetstar and it is doing very well for us in a different audience," Delany says.

"We’ve also got 500,000 customers that have Foxtel without even having a set-top box, accessing our content through Foxtel now."

The business is also seeing strong interest from a sales perspective following Foxtel's recent partnership with Netflix, which saw the streaming giant integrated into the pay-TV provider's new interface.

"Who would have thought we would ever do that but sales are great and customer churn is down," Delany says.

"We are more than just a set-top box. We have embraced the 21st century and we are running hard with streaming, we live IP and all things digital."

The event was also used to re-launch Foxtel media sales arm MCN, which this week was rebranded as Foxtel Media.

CEO Mark Frain echoed Delany's thoughts, saying that the MCN business had undergone massive changes over the past 12 months and that it was important for the business to take a moment to reset.

"We need to ensure that we have consistency in our ad models, recognising that replicating our linear advertising model into a mobile and IP world just won’t cut it," Frain says.

"We are going to ensure that we play unification on every screen, whether that be mobile, digital or the live linear broadcast."

He says viewers increasing dislike the level of disruption that traditional ad models provide and that it is made worse when consuming content on smaller screens.

To ensure that Foxtel and Foxtel Media continues to provide the best offering for clients, Frain called on the industry to help in adjusting the company's ad models and formats.

"For the past 30 years, publishers, agencies and brands have been playing catch-up, adjusting ad models and formats to reflect how people now consume media," Frain says.

"Recently the pace of changes has accelerated once again, from new technologies to evolving viewer habits, if you want to build a future for the industry, we need to work together to radically evolve our advertising model and bridge the gap on the experience."

Last night the two company's also announced a raft of new developments, including an overhaul of Foxtel's entertainment and lifestyle programming, as well as a suite of new products from Foxtel Media.

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