Kayo subscription price to increase: News Corp
Rupert Murdoch’s News Corp has told investors the company plans to raise prices for the Kayo Sports streaming service as it seeks to capitalize 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 specified 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 drives record early season ratings for the AFL and NRL,” said he declared.
A basic subscription to Kayo currently costs $25 per month, while a premium subscription costs $35.
A message on Kayo’s website Friday morning read, “Kayo Basic will increase to $27.50/month on your first bill starting May 9, 2022 (or after your offer ends).”
The price hike comes after News Corp’s subscription video segment, which hosts pay-TV platform Foxtel, Kayo and other streaming services including Binge, saw a 6% drop in quarterly revenue. at $494 million ($694 million).
News Corp has explored plans to launch its Foxtel business – which includes pay-TV platform Foxtel, Kayo and other streaming services, on the ASX. However, these plans were recently scrapped due to market volatility. Thomson said News Corp was still pleased with Foxtel’s performance.
“We remain pleased with Foxtel’s turnaround and are very optimistic about its short and long term future. We continue to explore all options for Foxtel to continue to maximize its value, while closely monitoring all developments in the financial markets.
The global media conglomerate reported quarterly net profit of $104 million, up from $96 million a year earlier. Revenue was $2.49 billion, compared to $2.33 billion in the same period last year.