Nine Entertainment is reportedly in discussions to acquire Optus’ sports streaming service, Optus Sport, as part of plans to strengthen its own Stan Sports platform.
This would include handing over the rights to the Premier League, which has been the main selling sport in Optus’ sports streaming subsidiary.
According to the Australian Financial Review (AFR), Nine initiated talks in December, while Optus has been seeking buyers for the service since late 2023.
Optus Shifts Focus Back to Core Business
Optus initially launched its sports streaming service to diversify revenue streams and complement its telecommunications offerings. However, the company has decided to refocus on its core operations and move away from content-based ventures.
In recent years, Optus Sport has opted not to renew broadcast rights for major competitions such as La Liga and the UEFA Champions League, reflecting a strategic shift towards cost-cutting and prioritising its core telecommunications business.
Additionally, the service has seen its subscription price increase from $14.99 to $24.99 over the past two years. Optus also introduced charges for its customers, who previously enjoyed complimentary access to the platform, further signalling its move away from subsidised content offerings.
Nine’s Strategy to Stay Competitive
Acquiring Optus Sport would enable Nine to secure key sports rights, including the English Premier League and FA Cup, while expanding its subscriber base.
This move comes as the Australian streaming landscape becomes increasingly competitive, with international player DAZN poised to enter the market.
DAZN, which recently acquired Foxtel in a AU$3.5 billion deal, is expected to make a significant impact when it launches locally later this year.
Stan Sports: Building a Robust Portfolio
Stan Sports currently holds the rights to premium events such as the Olympic Games, UEFA Champions League, and several rugby union and tennis properties.
Adding Optus Sport’s rights would bolster its offerings and help Nine contend with rivals like Paramount+, BeIN Sports, Amazon Prime, and free-to-air broadcasters.
Consolidation on the Horizon
Australia’s crowded sports media market is ripe for consolidation, with multiple players vying for lucrative rights deals.
Free-to-air broadcasters have maintained a strong foothold, supported by Australia’s anti-siphoning laws, which ensure key events remain available outside paywalls.
Conclusion
While Nine has declined to comment on the AFR report, Optus noted it routinely reviews its businesses to ensure they deliver value.
As the market evolves, this potential acquisition could be pivotal in shaping the future of Australian football broadcasting.
As it stands, the average Australian consumer requires at least four subscriptions to watch every European competition and each of the Top 5 leagues which remains a frustrating solution to legal broadcasts in the country.
