OZTAM concerned as FOXTEL shakes up TV ratings system

In a significant challenge for Australia’s TV ratings landscape, Foxtel Media is launching its own audience measurement system, leveraging data from its set-top boxes and streaming products.

Partnering with global data insights giant, Kantar Media, Foxtel aims to offer a granular insight into Pay TV consumption and subscriber patterns.

At Foxtel’s recent Upfront presentation, it was revealed that Kantar Media would gather data from around one million Foxtel set-top boxes using return path data. This move has sent shockwaves through an industry that has traditionally depended on data from OzTAM — a service co-owned by broadcasters Nine, Seven, and 10.

“The Foxtel Group has access to data from over one million set-top boxes and more than 3.1 million streaming customers, and we’d be negligent if we leave this data idling for another minute,”

remarked Mark Frain, Chief Executive of Foxtel Media. He believes the collaboration with Kantar Media will provide true-to-scale viewing insights that can significantly aid media planning.

However, the response from OzTAM has been less than enthusiastic. With Karen Halligan set to take on the role of CEO later in November, the organisation stated:

“Broadcasters in Australia and internationally are using their first-party data to inform content and advertising strategy and distinguish their respective offers in the marketplace – as highlighted this year in the various broadcaster Upfront presentations.

“However, we acknowledge that the introduction of a Foxtel-only audience measurement system poses the risk of confusion in the market.

Introducing a new measurement service is expected to raise questions regarding reliability, comparability and integration into agencies’ buying systems. The industry has clearly stated that it wants one service to measure Total TV and that is what OzTAM provides.

“OzTAM is Australia’s only independently audited and world-class service, measuring and reporting all free-to-air and subscription television viewing, in all homes, and measuring all screens and TVs in the home, whether or not they are internet-connected (approximately one third of TV sets in households are not internet enabled).

“For example, VOZ aggregates BVOD viewership across more than 16 million connected devices. As such, OzTAM’s single source-of-truth measurement service underwrites the trust brands and media buyers continue to place in broadcasters’ audience delivery.

“OzTAM values our decades-long relationship with Foxtel as a participating broadcaster and OzTAM data subscriber, and we look forward to that continuing, as evidenced by its recent contract extension.”

They further emphasised their position as Australia’s only independently audited service, providing all-encompassing metrics for both free-to-air and subscription TV.

For context, while OzTAM presently tracks 1,444 homes for subscription TV, releasing results daily, Foxtel Media‘s new system is set to roll out by year’s end. The anticipated service will not only provide current data but also allow access to retrospective data from the past two years, all while ensuring user anonymity.

The new system’s announcement comes in the wake of earlier claims suggesting inaccuracies in some TV viewing data. Foxtel Media is also looking towards 2024, where they expect to include streaming data from set-top boxes, including platforms like Kayo and Binge.

Keld Neilsen, Senior Director of Kantar Media, expressed his enthusiasm:

“We are delighted to be partnering with Foxtel Media, leveraging our deep experience in processing operator data to unlock the value of their subscriber data.”

The new service will utilise AdvantEdge software from Kantar Media’s TechEdge software unit.

Despite this, Foxtel confirmed it will remain with the OzTAM panel. As OzTAM‘s subscription TV data persists, the media industry keenly awaits the launch of this alternative measurement service.

Foxtel is predominantly owned (65%) by News Corp. It’s also notable that earlier this year, Foxtel exited its alliance with the Premium Content Alliance and ThinkTV — an advertising body. Major commercial networks, including Seven, Nine, and Ten, are still stakeholders in ThinkTV, currently led by CEO Kim Portrate.