Nearly one in three Foxtel subscribers are considering quitting the service for subscription video on demand services like Netflix, according to new research by insights specialists Pureprofile.
Pureprofile’s study showed six per cent of existing Foxtel subscribers planned to ditch the service in favour of a streaming service like Netflix while another 25.2 per cent were considering the move.
But the report also revealed a high level of satisfaction with Foxtel from customers.
Pureprofile’s research revealed 68.7 per cent wouldn’t turn their back on Foxtel in favour of a subscription video on demand services like Netflix, Presto or Stan.
The data reveals that popular TV shows and exclusive sports coverage were the strongest features that were keeping customers with Foxtel.
Of the respondents, 9.6 per cent already subscribe to Netflix with the figure set to rise to 21.4 per cent with many planning to sign up within 12 months.
“With more choice than ever before, and customers able to vote with their loyalty about which services they subscribe to and pay for, the result should be a greater diversity in the services available, the packages they offer, and the methods available to pay for them,” said Pureprofile CEO Paul Chan.
“Foxtel has already met market demand with its streaming service, Presto. Now Netflix is in the picture this will only make the kind of premium content many have traditionally seen as too expensive to pay for become much more accessible.”
Netflix has become a quickly recognized brand in Australia. Since its launch in March, 73.7 per cent have heard about it as compared with other similar services like Stan (48.1 per cent) and Presto (39.6 per cent).
Foxtel is even more popular though – 83.7 per cent of Australians are familiar with the brand.
Pureprofile’s survey of 1317 Australians also found:
- Younger age brackets are happier about paying for content: – 26.5% of 18-24 year olds think all content should be free - 52.9 per cent of 65+ bracket think the same way.
- Younger generations are twice as likely to pay for the latest TV shows than older counterparts
42.4% of 18-24-year-olds are willing to pay for the latest movies, and 40.9% for the latest TV shows
21.2% of those in 65+ bracket are willing to pay for the latest movies and 19.2% for the latest TV shows.
- 62.7% of Australians want an affordable subscription fee, with pricing the top consideration when it comes to signing up for an entertainment service.
- 49.5 % want to watch or listen to content without ads
- 26.1% of Australians aren’t willing to pay for an ad-free TV and movies streaming experience, while more than half of Australians (54.7%) aren’t willing to pay for an ad-free music streaming experience
- 17.4% of people who do not subscribe to paid entertainment streaming or subscription services say they believe the content is too expensive.
- More than one in four respondents (26.1%) are still unwilling to pay anything at all to get ad-free access to their favourite video content, including sport, TV shows and movies.
- Despite Australians leading the world in illegal downloads, just 7% of respondents say they watch illegally downloaded content on a weekly basis, with 6% admitting to doing so fortnightly, 6.3% doing so once a month or less, and 18.3% saying they rarely watch illegally downloaded content but they have done in the past.