Foxtel Case Study

"No fanfare as Foxtel hits the airwaves" (Ben Potter). Foxtel can take advantage of competing with competitors because it provides more level of subscriptions to customers. Foxtel offers pay-television to all major cities where led them to acquire 1.6million subscribers. Each customer can choose suitable packages with affordable prices. They are allowed to record, pause, rewind live television and watch Foxtel on computers and will allow a degree of interactivity. (Elliott)

Australia's population increases each year (see Appendix 2). This indicates that the television industry is going to supply more products to more people. Customer satisfaction is high for pay-television because many people treat it as necessity. Foxtel decided to urge Australian to 'stay home and save with Foxtel' since they began to felt global economic crisis.

Foxtel is missing opportunity of expanding the company because they have not entered the rural and regional areas. Foxtel has not pursued movement to target schooling program unlike competitor, Austar, thus resulting Foxtel losing customers. Although Foxtel has done many advertising in the internet, Foxtel miss to advertise the product in certain areas. The advertisement style is focused on young adult and young families, which excludes the elderly.

Foxtel is facing with grim challenges to increase subscribers. First, Australians might choose to build their own movie collections instead of subscribing to pay-television. Second, Freeview was designed to compete with pay-television. It is a mutual cooperation of the free-to-air providers. Third, the government maintained 'anti-siphoning' rules to ensure all Australians be able to watch major sports. (Elliott)

In order to ameliorate the shortcoming, Foxtel should use Telstra to enter into rural and regional areas. Besides, Foxtel should maintain control over the major cities. By taking action to target schooling programs, Foxtel can receive more customers. To fulfill this expansion, recruiting more staff is needed. Foxtel can increase door to door sales agents to connect more customers. Foxtel should advertise more using billboards, flyers and promotional agents from a wider age range and larger area.