It is Venture Insights’ view that traditional Australian broadcasters will be unable to fund further increases to the cost of tier one sports as they continue to suffer from declining revenues in hyper-competitive markets. As such, premium Australian sports are likely to further split their rights, selling portions to non-traditional telco or tech players. In the long-run, Australian sports may even look at selling their content direct to consumer through ‘over the top’ distribution models.
The recent round of sports rights deals has left us with three Australian sports generating over A$1bn in medium-term deals. This figure is high considering the declining revenues of broadcasters and the stagnating viewership numbers of some tier one sports. In this report we discuss the current state of the Australian sports rights market, delve into the current struggle of traditional broadcasters, particularly Foxtel, and contemplate what’s next for the delivery of sports content.
Australian sports rights are rising fast
Australian broadcasters are struggling
Other dynamics are at play
Tech and telco giants are circling
Something will happen…soon
List of charts/tables
Figure 1. Australian big 4 sports rights cost over time
Figure 2. Cost per viewer for AFL and NRL
Figure 3. Australian major broadcasters’ revenues (2013A-2019A)
Figure 4. Change in Foxtel subscribers Q2, Q3 and Q4 Calendar 2019
Figure 5. Changes in the number of sporting events protected under Anti-siphoning by sporting code
Figure 6. Timetable of upcoming available sports rights in Australia