News Corp to hike prices for Kayo Sports streaming service
Rupert Murdoch’s News Corp has told investors the company is planning to hike prices for Kayo Sports streaming service, as it seeks to capitalise on a strong start to the AFL and NRL seasons.
In a call with investors to discuss the company’s quarterly results on Friday morning (AEST), News Corp’s global chief executive Robert Thomson confirmed plans to raise prices for Kayo, but did not specify by how much or when the increase would take effect. “Kayo plans to implement a price increase as it benefits from its scale platform and high quality production, which is driving record ratings at the start of the season for both the AFL and the NRL,” he said.
News Corp reported slightly below expected growth in its latest reporting period.Credit:Bloomberg
A basic subscription to Kayo currently costs $25 a month, while a premium subscription costs $35.
A message on the Kayo website on Friday morning said: “Kayo Basic will increase to $27.50/mth on your first bill from 9th May 2022 (or after your offer ends).”
The price hike comes after News Corp’s subscription video segment, which houses pay TV platform Foxtel, Kayo and other streaming services including Binge, posted a 6 per cent fall in quarterly revenue to $US494 million ($694 million).
News Corp has been exploring plans to float its Foxtel business – which includes the Foxtel pay TV platform, Kayo and other streaming services, on the ASX. However those plans were recently shelved due to market volatility. Thomson said News Corp was still pleased with Foxtel’s performance.
“We remain pleased with Foxtel’s turnaround and harbour great optimism about its near and longterm future. We are continuing to explore all options for Foxtel to continue to maximise its value, while watching closely all developments in the financial markets.”
The global media conglomerate reported quarterly net income of $US104 million, compared to $US96 million a year earlier. Revenue was $US2.49 billion, up from $US2.33 billion in the same period last year.
It said it had 1.2 million subscribers to Kayo and Binge respectively, but residential Foxtel subscribers fell to 1.5 million, down from 1.7 million a year earlier.
“Given the impact of the pandemic and not so transitional inflation, both exogenous to the extreme, the sterling results are testament to the strength of the company culture created and curated by Rupert and Lachlan Murdoch,” Thomson said on the call.
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