Source : THE AGE NEWS
Disney+ is likely to introduce live sports content in Australia in a move that could have major implications for the long-running relationship between Foxtel and sports broadcasting giant ESPN.
Currently, Foxtel and its streaming service Kayo is the home to the US’s top sports leagues in Australia. This is because of a deal between Foxtel and Disney-owned ESPN, which allows Foxtel to broadcast games of the National Basketball Association (NBA), the National Football League (NFL), the National Hockey League (NHL), Major League Baseball (MLB) as well as college sports and UFC.
Foxtel and its streaming service Kayo is currently the home to the United States’ top sports leagues in Australia.Credit: AP
ESPN’s current two-year deal with Foxtel runs until July. It is unclear what Disney’s plan to put major US sports on Disney+ would mean for this deal, which could still be renewed. Even so, the change raises risks for Foxtel, which was recently sold by News Corp to British sports streaming giant DAZN, taking on the company’s debt load while repaying loans to its current owners.
While it is not clear whether Foxtel will lose its access to ESPN content, its availability on Disney+ could have a significant effect on Foxtel’s streaming business, on top of the imminent entry of HBO’s streaming service Max to the Australian market.
ESPN is in the midst of a strategy overhaul, having introduced an ESPN ‘tile’ to Disney+ for US audiences in December, with plans to launch its own standalone streaming service later this year, though it will not be available to Australian audiences. It also introduced ESPN to Disney+ in Latin American markets last year.
Now, Disney is planning a similar move in Australia, introducing live content for the first time in markets with strong interest in sport to grow subscribers and get better value from its own assets, sources with knowledge of the plans who were not authorised to speak publicly said.
DAZN is backed by British-Ukrainian billionaire Len Blavatnik.Credit: Getty
The final details are not confirmed, however, and a Disney and ESPN spokesman declined to comment. A Foxtel spokesman said the company continued to enjoy its longstanding relationship with ESPN.
ESPN chairman Jimmy Pitaro has outlined a “parallel paths” strategy publicly, balancing introducing disruptive direct-to-consumer products, while also maintaining relations with legacy pay TV avenues, such as Foxtel locally.
“We see declines month after month, year after year, and you get to some point where you have to disrupt yourself, and that’s where we are right now,” Pitaro said last month of broadcast audiences.
While ESPN launches its own direct-to-consumer strategy, Foxtel’s new owner DAZN is building a direct competitor as it attempts to become the global home of sports streaming.
Foxtel chief executive Patrick Delany (centre) and Foxtel streaming and advertising chief Julian Ogrin (left) leave Lachlan Murdoch’s Christmas party in December.Credit: James Brickwood
The finer details of HBO Max’s launch, tipped to happen on April 11, has not yet been set out by the company; however, it forms part of a global roll-out for its owners Warner Bros. Discovery (WBD), one of the world’s largest media companies.
WBD owns US studio HBO. Shows like The White Lotus, Succession and House of the Dragon have proved pivotal in building Foxtel’s Binge streaming service.
Foxtel signalled its own shift in strategy for Binge in October, introducing some live sport onto the platform.
And for Foxtel’s Kayo, the top US sporting codes have been pivotal in building a subscriber base alongside the local winter codes as well as cricket and motorsports.
They remain particularly important over the summer months during the AFL and NRL off season. The December quarter has typically been the toughest for Kayo since its 2019 launch. Kayo lost 16 per cent of its subscribers following the end of the NRL and AFL seasons in 2023, and for the first time this summer, all five cricket Test matches were available to stream for free on Seven’s digital platform 7Plus. News Corp will deliver its next earnings in early February.
Major streaming firms like Disney, Amazon and Netflix are currently pushing to broadcast more live sport. This week, Disney purchased a 70 per cent stake in Fubo, a US sports streaming platform whose legal challenge has blocked a sports streaming co-venture Venu between Disney, Fox and WBD.
ESPN’s multi-billion dollar contract with the UFC is also up for renewal this year. There is talk of a 10-year deal in the works. Foxtel is also the current pay-per-view rights holder for UFC on top of its ESPN content.
Both the NBA and NFL offer their own subscription services where users can view every game. While the NBA is its own distributor, NFL Game Pass is available outside of America via DAZN, Foxtel’s soon to be owners.
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