Most would agree – Foxtel knows how to put on a show. Last night they didn’t disappoint as they brought the industry to Cockatoo Island for a night of entertainment and revelation.
You can find out about the big reveals HERE, but far more important than what was said, is what the industry thinks about what was said, so here are some industry reviews of the upfronts:
Nik Doble, Mindshare National Head of Investment – “Disruption To The Status Quo Was Top Of The Agenda”
Foxtel’s transformation journey has been bold – and it’s progress impressive. Foxtel certainly weren’t shy in coming forward, seizing the Upfront stage to express frustration at the resistance to change amongst their free-to-air counterparts and emphasizing their commitment to blazing a new trail via a raft of new partnerships and practices.
Disruption to the status quo was top of the agenda. It was best exemplified by the announcement of their partnerships with Kantar, and VideoAmp, a US-based media measurement and optimization software company, to develop a new measurement framework to rival OzTam.
Nearing 5m subscribers, two-thirds of which are streamers, Foxtel’s view is the traditional ratings methodologies have struggled to keep pace with its accelerated shift to digital. This is a huge statement and one that will be keenly followed through the proof-of-concept phase in 2024. They aren’t going it alone, announcing the formation of a new alliance with SBS and Samsung Ads to form an independent Premium Streaming Video Market that will encompass their collective video formats, including traditional TV and emerging streaming platforms.
Any new measurement system will also leverage Foxtel’s extensive viewership data and support brands by utilizing premium and scaled data sets for better business outcomes. For instance, Foxtel’s Addressable Ad Solution, Characters, will expand from its Kayo home to incorporate BINGE and Foxtel IQ. It’s underpinned by Experian’s extensive segment database and Foxtel’s deep understanding of content consumption via the robust 1st party data of more than 3m paying users, which is robust and compelling. The security of which will be enhanced via their partnership with Infosum, a global leader in data clean rooms, who’s proprietary tech expedites collaboration while significantly reducing resource requirements, ultimately advancing efforts to leverage the substantial advertising potential offered by addressability.
And then finally, the crowing jewel, Hubbl, Foxtel’s bold foray into aggregation creating a one-stop-shop for all your streaming needs set to be launched in Australia in the coming months. A welcome salve to a fragmented viewer experience for audiences managing multiple subscriptions.
It goes without saying that Foxtel’s content line up across Foxtel, Binge and Kayo, remains stellar and secure, providing audiences and advertisers plenty of opportunities, and the pivotal AFL & Cricket sporting rights secured up until 2031. In combination with all technological advancements, Foxtel is well placed to achieve their ambition to be Australia’s Most Watchable TV now, and emerge across the next decade as Australia’s leading Video provider.
Tess Linkins, Strategy Director at Half Dome – “The pre-launch of Hubbl left us hanging for more”
The Foxtel team said it well, “change is hard” but with an expected $3.6 billion going into digital inventory in 2024 we need to jump onboard.
Premium and quality were at the forefront of the night, honing in on data and measurement providing new ways for media and marketing teams to add extra support behind their campaigns.
With the AFL and cricket rights until 2031, along with the average Kayo user watching nine sports for nine hours per week, Foxtel needs to be in high consideration for sport. Also driving +50 per cent active attention alone, with lower ad loads will require brands to compete harder for SOV.
The pre-launch of Hubbl left us hanging for more. Though it was a brief news drop, the key take outs indicated that it aims to be the “heart of the home”, a single interface that removes the need (and frustration) of jumping in and out of apps. It is where consumers can manage all their subscriptions in one place, have access to everything through simplified search, and delivered in both free and paid options.
It can’t go without noting, the actions being taken by Foxtel on an environmental standpoint is a great one for many brands who value driving ethical practices throughout their business. We are now able to track the carbon impact of Foxtel campaigns, and they’re seeing -63 per cent display inventory carbon emissions throughout this process. In a world moving to sustainability, I can see this being a keen interest for many working towards a greener media trade.
Marco Norder, Group Investment Director, OMD Melbourne -“From a content perspective, Foxtel’s offering and variety stands out”
From a content perspective, Foxtel’s offering and variety stands out amongst its competitors, and they’ve again reminded the market of this with their 2024 upfront. From world class coverage of all major sports, to home grown Australian drama and the premium offering of Binge, the Foxtel proposition is one that appeals to a broad audience which will likely drive long term and sustainable growth.
Foxtel’s ambitious plans to redefine the way video inventory is measured and consequently valued, bought and sold with the promise of scaled data sets, backed by a growing subscriber base across its various platforms, at face value makes sense and future proofs their business. However, it does have the potential to drive further debates in the industry on what is, and should be, the gold standard of measurement which can derail further industry growth and collaboration in this space.
Critically, it feels like Foxtel’s ability to differentiate themselves from their key competitors as a leader in the streaming space is gaining more momentum. With valuable data sets, largely driven by paying customers who are more likely to actively engage with that content on a more regular basis, which should lead to a richer data set, cementing their place as one of Australia’s most premium digital partners. Particularly with the use of the increased set top box data, which should provide brands with richer and greater planning and consumption data vs. tools which rely on claimed behavioural data.
Anna Magliano, Head of Client Services, Kaimera – “The real star of the show, however, was the content lineup”
Despite the gloomy weather, Foxtel managed to deliver a confident and impressive presentation that was truly ‘watchable’. They spared no expense in showcasing their latest offerings and completely redefined their approach, coming across as big and bold. Their presentation included clients, media buyers, and the entire Foxtel team.
One of the standout moments was their partnership with VideoAmp, a game-changer in the world of broadcasting. With the decline in broadcast audiences and the ever-increasing fragmentation of viewership, this collaboration promises a new measurement system that accurately captures viewing data across Foxtel Group services.
Another exciting development was Foxtel’s partnership with Scope 3, enabling advertisers to measure the carbon emissions generated by their digital campaigns – a positive step in the right direction. It demonstrates Foxtel’s commitment to sustainability and corporate responsibility.
The real star of the show, however, was the content lineup. Foxtel unveiled an impressive array of premium entertainment and sports content, featuring both new and returning Australian Originals like “How to Make Gravy” and a slew of local and international sporting events, including AFL, Cricket, and UFC. This promises a year filled with exciting and engaging content for Foxtel subscribers.
What truly stood out during this presentation was Foxtel’s strategic focus on the consumer and advertiser experience. They seem to have their priorities in the right place, ensuring that their viewers and advertising partners are at the heart of their strategy. Foxtel is poised for a very successful year.
