Foxtel, the TV and streaming company owned by Rupert Murdoch, is being accused of exaggerating its audience numbers for key sports and entertainment content, including NRL and AFL broadcasts.
OzTAM, the television ratings provider in Australia, has contacted Foxtel following the release of ratings data for the NRL’s first round of the season.
Foxtel claimed an average audience of 523,000 per game, up 17% YoY, without explaining the data’s source. OzTAM is working with Foxtel to understand the data.
Foxtel has denied any wrongdoing and said it takes the accuracy and transparency of audience data seriously.
However, multiple anonymous sources have claimed that Foxtel is combining data from OzTAM with internal data and failing to remove duplicate audiences across its services such as Foxtel IQ, Foxtel Go, Binge, and Kayo Sports.
Advertisers use OzTAM data to decide how to allocate advertising budgets, and higher ratings lead to more spending.
Sources close to OzTAM claim that Foxtel’s actions may inflate audiences and sell advertising packages based on the figures, particularly during live sports matches such as the AFL or NRL.
The sources also claim that OzTAM is investigating the matter and have warned Foxtel. This concern comes at a critical time for Foxtel as it negotiates its debt with banking lenders and considers the possibility of a public float.
Foxtel had $1.93bn in drawn and outstanding debt as of June 30, 2022, according to its most recent annual financial report. The majority of the debt will mature in 2024.
Foxtel’s shareholders, Telstra and News Corp, are reportedly keen to list the business once market conditions improve.
»Foxtel is fighting claims it is overstating its audience on key entertainment and sports content«
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