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Streaming no saviour for crippled sports

3 minute read

Predictions that online streaming services can be a big money spinner for Australian sports after the coronavirus are off the mark, according to experts.

Sports media experts have warned broadcast streaming services won't be the white knight Australia's struggling codes once hoped for.

The coronavirus pandemic has wreaked financial havoc and the NRL, AFL, Football Federation Australia, Cricket Australia and Rugby Australia have all taken a hit.

Australia's professional sport marketplace is already one of the most competitive and congested in the world with more top-tier teams per capita than anywhere else.

The virus could not have hit at a worse time for some.

Rugby's television deal with pay-television operator Foxtel was set to expire at the end of this year and negotiations with Optus as a possible replacement were interrupted at a crucial stage, while there are also question marks around the A-League's future with Foxtel.

Both the NRL and AFL are already in talks with their free-to-air and pay-tv broadcasters, with the possibility of extending their deals at slightly less than the current rate.

Earlier this year there was much interest when new rugby league chairman Peter V'landys and Andrew Abdo visited the US and spoke to several streaming companies about the NRL's next TV rights deal in 2022.

There had been suggestions that codes could stream some matches exclusively on online networks by linking with global giants like Amazon, Google, Twitter, Apple and Facebook.

But sports marketing expert Con Stavros said while many expected those brands could bring big bucks into sports, the reality is that's not the case.

"The problem with those platforms is they're perceived to be super rich and wealthy, but they run a tight ship," Stavros, an associate professor at RMIT University, told AAP.

"In many ways they tend to go to the sports and say we will give you the viewers, millions of peoples around the world.

"But we're not going to give you a lot of dollars."

Free-to-air advertising revenue and Pay TV subscriptions are in decline during the coronavirus crisis due to the closure of live sports and retail stores.

Streaming services meanwhile are expected to emerge among the few winners of the global shutdown with more people at home binge watching shows.

Amazon Prime previously paid $US65 million a season to stream the NFL's Thursday night football, but that deal expired in January.

Thursday night NFL games were previously streamed live on Twitter, however streaming fees for the sport have never been worth more than 15 per cent of TV rights for the same games.

"It's almost a case of them going to the sport and saying you need us more than we need you," Stavros said.

"We can get you those young kids you want that don't get off their devices.

"Amazon will say if you want an international audience, we will give you a global audience.

"(Twitter may say) if you want people talking about your game, we will get you engagement on our platform particularly through Facebook and Twitter.

"You not only get people watching it, but you get people talking about it."

Instead, experts believe Australia's sporting bodies can use streaming services as the way to take their games to the world rather than being an instant money spinner.

The A-League's overseas streaming service is currently split between a number of providers, including YouTube outside of a number of major European and Asian nations.

Fox Sports has the rights for overseas streaming of the AFL and NRL, via a subscription-based model that also includes a number of their magazine shows.

But Global Media and Sports boss Colin Smith, who has previously advised both the NRL and AFL, said a shake up was likely come the next TV rights deal.

Smith predicted free-to-air broadcasters could push for exclusive domestic streaming rights to their televised games on 9Now and 7Plus, particularly if matches are not simulcast on free-to-air.

And with that, he believed streaming services could partner with TV networks to grow the leagues abroad.

"I see the likes of Amazon and potentially Apple could end up being frenemies to the existing FTA, providing a complementary service and a global service," Smith said.

"You could get 9Now, both direct from 9Now or you could get it on your Amazon Prime package.

"And Amazon Prime could distribute that as a global product."

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