Exclusive Interview: Foxtel’s Richard Freudenstein

PREMIUM: Richard Freudenstein, the CEO of Foxtel, talks to World Screen about the leading Australian pay-TV service's first 20 years, upcoming products and the company’s ongoing commitment to investing in programming.

WS: In its 20 years, how has Foxtel improved and contributed to the Australian television market?
FREUDENSTEIN: Foxtel has made a huge contribution to Australian society, culture and the media sector. Foxtel has been a driver of choice, quality programming and innovation.

Before Foxtel there were five TV networks showing a limited and predictable range of shows according to a fixed schedule. Foxtel launched an explosion of content and, with its technical innovations, radically changed the way people consume content, putting the power into the hands of the viewer.

Foxtel has completely reimagined the way Australians can view and enjoy television across a range of genres. Sport is a great example—not only have we created the most comprehensive offering in the market, but we’ve innovated with exciting on-ground and in-studio technology that takes the viewer closer to the action than ever before. We broadcast all sport in HD and allow the play to proceed uninterrupted by advertising. Foxtel’s 2012 Olympics coverage, with its amazing companion app, was judged to be world leading by the IOC [International Olympic Committee].

In genres such as drama and lifestyle we have offered both breadth and depth that has grown passionate and highly engaged audiences.

The iQ set-top box has lead the way in time-shifting and catch-up viewing. Other networks and media organizations have followed in our wake.

WS: What benefits did Foxtel derive from the merger with Austar in 2012?
FREUDENSTEIN: There have been many benefits, mainly due to the fact that for the first time we had a national service with consistent branding, pricing and packaging and technology platforms. We managed to achieve savings through synergies, which we have been able to reinvest in the business.

WS: Foxtel has always been committed to innovation. What products have you provided subscribers to allow them to watch programming whenever they want and on whatever screen they want?
FREUDENSTEIN: There has been an extraordinary array of technological innovations over the last 20 years. From simple things like the Foxtel Guide app that lets you record shows from your mobile phone through to Foxtel Go, which means customers can watch Foxtel wherever they are on their mobile devices.

The technological backbone of Foxtel has been our digital iQ set-top boxes with functionality such as series link [a function that enables subscribers to schedule and record every episode of a particular series], the ability to record and watch at the same time, red button interactivity, and access to content on demand stored on the box or from a huge library via an IP connection. The iQHD also delivers amazing high-definition signals.

WS: What new products is Foxtel planning on rolling out?
FREUDENSTEIN: The next big thing is the iQ3, which will have greatly increased the storage capacity plus the ability to record three programs while you watch a fourth. It will have a more sophisticated EPG [Electronic Programming Guide] with cover flow presentation enabling us to feature key content. It will include sophisticated search and recommendation functionality and innovations such as the ability to “start over” a show if you come in part way through and want to jump back to the beginning. iQ3 will provide a platform for further technological innovation in the future.

At the same time we have launched the Foxtel broadband service, which enables us to bundle broadband and telephony with our television service. Foxtel broadband is optimized for delivery of video content and will work seamlessly with the iQ3 using a WiFi connection.

WS: What original programming, sports rights or channel partnerships has Foxtel invested in over the last year or so?
FREUDENSTEIN: Foxtel has been very active in developing its content offering both through its owned channels and through channel partnerships and also through both commissioned and acquired programming.

We have deepened our relationships with international powerhouses such as HBO, the BBC and Disney, resulting in new and strengthened channels for our platform.

We have invested heavily in original content for the channels that Foxtel owns and operates itself. These have included highly successful lifestyle and reality programs, documentaries and marquee drama productions.

Recent successful productions have included dramas Wentworth and Devil’s Playground, documentaries such as Coast Australia and The Memorial, lifestyle programs such as Selling Houses Australia and From Paddock to Plate and the great fun of Australia’s Next Top Model and The Real Housewives of Melbourne.

A very strong slate of programming completed, in production or in development will roll out over the coming months and years.

Foxtel, with our partners Fox Sports, have invested heavily in both sports rights and the broadcasting of sporting events. Foxtel has the most comprehensive range of sports across major football codes, cricket, motorsports and much more.

WS: Tell us about Foxtel Presto, the joint venture with Seven West Media. Why is this an important initiative? What will it offer subscribers?
FREUDENSTEIN: Presto is a key complementary offering to Foxtel’s main service. Experience in other markets suggests that many consumers want an SVOD library-style service like Presto in addition to their main subscription [packages].

In addition, there will always be a segment of the community who do not wish to take the full Foxtel offering but who wish to augment their entertainment options with a SVOD service.

[The online streaming market] will be very competitive and it is important that Foxtel is an active participant.

WS: In what areas do you see future growth for Foxtel?
FREUDENSTEIN: We see potential for growth across all of our products and services. Our recent changes to our pricing structure, which significantly reduced our entry-level price, has already delivered strong sales growth. We also see opportunities for our IP-delivered products Foxtel Play and Presto.

We know that we will be able to continue to grow the business if we stay focused on delivering the best possible content and customer experience.