FOXTEL CEO Patrick Delaney will tomorrow announce changes to the “Foxtel Experience” which EFTM understands to be the addition of Netflix as an app on IQ 4 boxes.

That will also come with an updated Foxtel remote control which includes a Netflix button – a big step for a company once very protective of their subscription TV market.

New research tonight from Roy Morgan sheds a bit of light on why this might just be a very smart move for Foxtel – and perhaps also for Netflix.

According to Roy Morgan, 13,355 million Aussies have either Netflix or Foxtel.

What matters though is the cross over, and the gaps.

For Foxtel, they have 5 million Aussie users according to this research – of them, 3 million also have a Netflix subscription.

Maintaining those three million subscribers by giving them easier access to their Netflix account with a single remote control is critical to reducing churn (customers who cancel their service).

For Netflix, the 2 million Foxtel users who do not currently have a Netflix subscription are an opportunity. It is for that reason there is some chance that Netflix will include a free trial period for Foxtel users.

It is a fascinating business decision, and given how easy it is to watch Netflix on so many devices – it is one that will be very interesting to follow.

We will bring you the official announcement from Foxtel tomorrow here at EFTM.