Optus Sport May Be Sold to Nine Entertainment as Stan Eyes Premier League Rights
The future of Optus Sport is taking an unexpected turn as the broadcaster considers selling its streaming platform to Nine Entertainment. This potential sale could place the highly coveted English Premier League (EPL) rights into the hands of Stan, a streaming service owned by Nine. This move comes at a time when the competition in the sports streaming landscape is intensifying, particularly with the arrival of the UK-based sports streaming giant DAZN.
Optus made waves in 2016 when it secured the rights to broadcast the Premier League, a move that disrupted the market by taking the exclusive deal away from Foxtel. Despite the platform’s initial success, the financials for Optus Sport have been struggling in recent years. The streaming service, which also holds the rights to the Women's Super League and has a deal in place until 2028, is reportedly facing heavy losses due to the high cost of acquiring and maintaining these premium sports rights. The annual cost of Optus' Premier League rights is estimated to be $100 million, a significant burden, particularly as the number of subscribers appears to be falling.
Also Read:- Rodrygo Shines as Real Madrid Triumphs Over Salzburg in the Champions League
- Celtic vs. Young Boys: Champions League Thriller in Glasgow
Sources close to the matter have indicated that Nine Entertainment, which owns Stan, is eyeing Optus Sport as a strategic acquisition. This would allow Stan to enhance its sports offering, particularly as DAZN prepares to enter the Australian market. DAZN recently secured a $3.4 billion deal to acquire Foxtel, signaling its intent to become a dominant player in the sports streaming space. With this in mind, the acquisition of Optus Sport would give Nine and Stan an advantage by securing the highly coveted EPL rights before DAZN could potentially snatch them away.
However, the decision to buy Optus Sport is not without challenges. Optus Sport has seen its growth stunted by increasing competition from other streaming platforms, including Foxtel’s own Kayo Sports and the recent rise of Paramount+ in the soccer broadcasting scene. Despite Optus once boasting over a million active subscribers, the platform is now facing financial difficulties, with rising costs, a lack of growth in new subscriptions, and the high cost of acquiring sports content.
One of the primary reasons behind the potential sale of Optus Sport is Singapore Telecommunications' (Optus' parent company) decision to cut costs in Australia. The company recognizes the growing competition in the sports streaming market and the rising costs of acquiring premium sports rights. As such, Optus Sport is now seen as a non-essential asset that could be sold to a company better positioned to shoulder these financial challenges.
Stan, on the other hand, has been increasing its sports content, securing rights to the UEFA Champions League, Super Rugby, and popular tennis tournaments like Wimbledon and Roland Garros. However, in the face of competition from DAZN and other platforms, Stan is looking to expand further and gain access to the EPL rights. This move would give Stan a significant boost, making it a more competitive option for Australian sports fans.
In the end, the fate of Optus Sport and its Premier League rights remains uncertain. The sale to Nine Entertainment could give Stan a strong foothold in the sports streaming market, but it will also face tough competition from global players like DAZN, who are set to shake up the Australian sports broadcasting landscape in the coming years.
Read More:
0 Comments