Will News Corp (NASDAQ:NWSA)’ Foxtel Make Waves In Australia?
News Corp (NASDAQ:NWSA)’s Foxtel and Telstra have plans to launch a triple-play in Australia. But those talks seemed to have come to a standstill. Telstra is the country’s dominant media company and it covers almost 35% of Australians with its service. The triple-play that has been planned will include Pay-TV, broadband and telephony in a bundle offer. This is one sure-shot way of improving the company’s market share in the highly competitive broadband market in Australia.
As per the 2-owners shareholder-agreement, News Corp (NASDAQ:NWSA)’s Foxtel is not permitted to launch its broadband service without Telstra’s permission. The latter has a tight rein on almost 47% of the broadband market in the country. The one condition under which the dominant player would approve this offering is if it is able to be Foxtel’s wholesale provider for the services that the latter wants to bring in. When the NBN is actually rolled out, this condition might undermine Foxtel’s position, is what analysts feel.
The one reason that Foxtel has considered this particular offering is due to the rising competition from Quickflix and iiNET as well as NetFlix and Hulu. Foxtel is fighting tooth and nail and has launched an aggressive by launching Presto, a new service. But the move might not prove to as effective as the company wants it to be, if customers do not opt for the unique offering that it wants to roll-out into the market.
In Wednesday’s trading, News Corp (NASDAQ:NWSA) rose by 1.45%. The shares opened at a price of $15.85, climbed to an intraday high of $16.27 and dipped to a close of $16.14. Approximately 17.76 million shares were traded on Wednesday while an average volume of 5.18 million shares were traded over a 30 day period. The 52-week low of the company’s shares is $14.39 and its 52-week high is $17.26. The company has a market capitalization of $9.34 billion.