‘They are coming’: Foxtel boss predicts HBO will launch Australian service

Foxtel boss Patrick Delany has said he expects HBO, the premium US network behind hit shows such as Succession and Euphoria, to launch a direct-to-consumer service in Australia in a move that could reshape the fiercely competitive streaming market.

Delany told attendees at a conference in Singapore last month that Foxtel believes HBO, which is owned by US studio giant Warner Bros Discovery, is exploring the launch of a streaming service in Australia.

“In the case of HBO/Discovery and NBC Universal, it’s been interesting to see whether as stand alone, they’re strong enough to survive,” he said at the Media Partners Asia event, according to a video obtained by this masthead. “HBO/Warner Bros certainly are indicating they are coming to the market”.

Foxtel, which is controlled by Rupert Murdoch’s News Corp, outbid Nine Entertainment Co and its streaming service Stan in 2020 for the rights to a range of HBO programs and Warner Bros shows. That contract, believed to be worth up to $200 million a year at its peak, expires in late 2023. Nine is the owner of this masthead.

Delany’s remarks are the first he has made publicly about HBO’s ambitions to launch its own service locally. Such a move, if it occurs, would likely result in the removal of a range of popular shows currently on Foxtel’s entertainment streaming service Binge, including White Lotus and the Game of Thrones prequel House of Dragon, which is averaging one million viewers per episode.

Warners Bros Discovery boss David Zaslav said last month the company, which operates US streaming services HBO Max and Discovery + would launch a single paid service in the country next summer with hopes to have 130 million subscribers by the end of 2025. It plans to roll out the new service in the Asia Pacific by mid-2024. Warner Bros Discovery was contacted for comment.

Some Foxtel insiders believe Warner Bros may continue to sell its content to an external provider through an output deal. Foxtel recently outbid Stan for an output deal with US studio NBCUniversal, which some insiders believe is an insurance policy for Foxtel in case it loses its existing slate.

In the same interview, Delany said he expected the company’s two streaming services Kayo Sports and Binge will eventually be bundled into a single offering. This aggregation is likely to occur through a smart TV product that Foxtel plans to launch this year and won’t affect plans for Binge to launch an advertising tier.