CEO says Netflix isn't only option - 28th July 2015
Media chief executive Greg Hywood says there is room
in the Australia for multiple streaming TV services
and the market won't be dominated by just one, such
as overseas giant Netflix.
Fairfax enters the seventh month of its Stan streaming
joint venture with Nine Entertainment, Mr Hywood said
streaming services were 'incredibly powerful' and
filled a price gap below pay TV rivals such as Foxtel.
gives you a depth of entertainment when you want to
watch it across multiple devices in your home for
ten bucks a month,' he said at an American Chamber
of Commerce lunch in Sydney on Tuesday.
look at the price and you look at what you get - there
is a very broad field to play on here. People can't
be assuming that there's only room for one.'
is up against Netflix, Foxtel's Presto, Quickflix
and Fetch TV in the streaming market.
led the market in May with one million subscribers,
well ahead of local competitors, according to a Roy
Morgan Research survey published in June.
Hywood said with a restructure over the past two years
Fairfax now had money to invest in new ventures, and
had established new revenue sources beyond traditional
advertising and subscriptions in its newspapers and
said Fairfax had leveraged its audience to put Stan
in a strong position at start-up.
have the ability to grow not just in the media where
we see the opportunities but also organically out
of (the company's Events business) and with our Domain
business,' he said.
are getting ourselves into a position where our growth
in digital revenue is offsetting any sort of structural
decline in print.'
Fairfax boss also repeated criticism of Foxtel's move
to take a 15 per cent stake in Network Ten.
half-owned by the Rupert Murdoch-controlled News Corp
Australia, announced its intention in June and Australian
Competition and Consumer Commission head Rod Sims
has signalled he will take a 'holistic' view to assessing
Hywood has said the Murdoch family's media interests
across different markets have 'gamed' legislation
that limits media owners to just two of the markets
of print, radio and television.
you put News's interests and the family's interests
together you've got, in an environment where you're
supposed to have two out of three - either print,
radio, TV - what you have in that mix is print, radio,
TV, cable,' he said.
said it was 'completely appropriate' for Mr Sims to
take a holistic view.
Hywood criticised the cross-media legislation restricting
ownership, saying it discouraged investment in the
get something off the table: this is not about Fairfax
wanting to buy a free-to-air TV station,' he said.
is just about Fairfax saying that there should be
a level playing field.'