Until recently, Australian media company Foxtel was the only paid subscription TV company in the Australian market. But recent years saw an explosion of new providers, changing the competitive landscape. Telecommunications companies began to offer entertainment services; two streaming video providers, Netflix and Stan, announced they would launch in Australia at lower price points; and illegal downloading became more common as consumers sought faster, cheaper ways to access their favorite shows.
Foxtel needed to adapt to meet consumers’ changing expectations and continue to grow. It needed to reignite customer growth, reduce cancelled customer subscriptions and increase customer advocacy.
To achieve this, the company embarked on five major programs in 2014, all to be delivered in a 12-month period:
- New pricing and packaging: Halving the entry price for new customers, and adding value for existing customers by providing extra channels and movies at no cost.
- Foxtel broadband: Launching a home phone/broadband service and becoming a telecommunications provider.
- iQ3: Launching our new “set top box” (the technology that customers use in their homes to receive Foxtel’s cable or satellite signals and record TV programs).
- Presto: Launching a combined online video streaming service for TV and movies (direct competitor to Netflix and Stan).
- Incredible content: Substantially increasing investment in the best international and local television entertainment.
Any one of these programs would have been a major change for the business, but with all five programs being delivered over the same 12-month period, the volume and complexity of change would be enormous. We knew we would only be successful if all of our 5,500 people (both direct and indirect employees) understood what was changing,...
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