Rupert Murdoch’s new media strategy – ‘‘get big, or get out’’ – has dire consequences for Foxtel and is therefore bad news for the future of Australian professional sport. Murdoch’s News Corp owns 65 per cent of the TV subscription service which funds 80 per cent of the broadcasting fees paid to Australian sport.
This places a recently signed $1.2 billion deal between Cricket Australia and Foxtel at odds with what Murdoch is doing in the rest of the world. Apart from newspapers, Foxtel is News Corp’s only media asset.The six-year cricket deal with Seven West Media was expected to drive Foxtel subscriptions and grow Kayo Sports, its wholly owned streaming service. But Kayo has only 290,000 subscribers and it needs five of them to compensate for the loss of one Foxtel subscriber.
That’s bad news for Rugby Australia which, unlike NRL’s partnership with Nine, and AFL and cricket with Seven, does not have a free-to-air broadcaster. Rugby’s Foxtel deal is ending and ratings are poor, with some games shown at times only insomniacs love. Football’s contract is at the halfway point but one recent A-League round had a total audience of 100,000. A single NRL match can rate three times one A-League round.
Ten is now 100 per cent owned by CBS, one of America’s most successful broadcasters, screening NFL, college football and basketball. In order to derive a return on its investment, it will need to take a proactive position with sport in Australia. A Labor government has indicated it will strengthen Australia’s anti-siphoning laws, forcing more coverage away from subscription services towards free-to-air TV.
Industry experts suggest the long-term survival of Foxtel will be challenging. Colin Smith of Global Sport and Media believes that sport viewing on TV is facing the most profound period of change since the introduction of pay TV more than 30 years ago.
Source: News Formal (newsformal.com)
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