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Foxtel who is already the most expensive subscription TV network in the world is set to launch their new iQ3 set top box in the last quarter of 2014 in an effort to attract new subscribers. The launch will take place in an effort to attract Xmas take-up.
The box which is 12 months late, is manufactured by Pace a UK Company, it has six tuners, Wi Fi and Bluetooth capability is still big a bulky because of the inclusion of a new 1 Terabyte drive and additional processors on the motherboard.
Foxtel which is 50% owned by Telstra and 50% by News Limited has dropped their current supplier for middleware software instead the Company is moving to middleware software supplied by Pace.
The Pace Tungsten software allows Foxtel to extend the functionality of their hardware with additional revenue generating services such as PVR, whole home networking, remote management, media player and media servers, claim Pace.
The new Pace software will allow Foxtel to introduce several new features including the ability for viewers to instantly rewind any program back to the start if they turn on halfway through.
At the Cannes Lions advertising festival in June, Foxtel’s 50 per cent shareholder of News Corp Australia revealed the iQ3 was designed to “drive advocacy” among existing subscribers”, “improve net promoter score”, “reduce churn” and “increase demand new subscribers”.
It would target “young family households who love their TV” but have different interests and want to watch and record different shows at the same time.
Some analysts have privately questioned the relevance of the new set-top box.
Foxtel who are facing a head on battle with US content giant Netflix is also hoping that Nine Entertainment “will think twice” about launching their new Stream Co service in Australia up against Foxtel and in 2015 Netflix according to Foxtel sources.
ChannelNews has been told that Foxtel’s new Presto IPTV service is struggling with less than 5,000 subscribers. Currently priced at $19.99 a month Foxtel is believed to be considering cutting the price to $14.95 a month as new services enter the market.
Fairfax Media claim that Foxtel is also planning a major refresh of its main channels to coincide with the multimillion dollar upgrade, which it hopes will stop current customers dumping their expensive service for cheaper options fr4om the likes of Netflix.
The new look Foxtel channels such as Fox Sports, premium drama channel Showcase and general entertainment channel Fox8 is being managed by Foxtel’s in-house creative team led by marketing director, Ed Smith.
A Deloitte Media consumer survey last week showed that about one-quarter of Australians plan to subscribe to an online television service in the next 12 months.
