One of the pioneers of Australian sports streaming, Optus Sport, is poised to exit the local market imminently, marking a significant shift in the nation’s over-the-top sports broadcasting landscape. This departure comes nearly nine years after Optus Sport launched in Australia, during a decade characterized by an intense scramble for sports rights that often left fans juggling multiple pay-TV subscriptions.
Optus Sport’s anticipated sale of its rights portfolio, including its prized Premier League rights, is expected to fetch around $300 million. This move will leave Stan, owned by Nine Entertainment, as the sole home-grown sports streaming service in Australia. Stan’s acquisition of these rights positions it as a formidable contender to Foxtel/Kayo Sports, which currently holds the rights to major Australian sports leagues like the AFL and NRL.
Shifts in the Streaming Market
The announcement of Stan’s deal is expected soon, but Optus Sport continues to operate as usual, promoting events like the UEFA Women’s Euro 2025 tournament. An Optus spokesperson commented, “All companies regularly review their businesses to ensure they are maximizing value and realizing their full potential – Optus is no different. We don’t comment on speculation.”
Launched in 2016, Optus Sport was an early adopter of the over-the-top (OTT) streaming model, bypassing traditional cable and satellite providers to deliver content via the internet. However, according to sports rights consultant Jon Marquard, who worked with Optus Sport until about 18 months ago, the company’s focus has shifted in recent years.
“That period of 2019 to 2023, culminating in the Women’s World Cup, added around $1 billion to the brand value of Optus when it had faced other challenges including the major outage and cyber incident,” Marquard noted. “It was undeniably a good thing for the first six years, but the writing has been on the wall for a while relative to other streamers.”
Competitive Pressures and Market Dynamics
The exit of Optus Sport highlights the growing competition in the Australian streaming market. Global players like Amazon, with its ICC cricket rights, and Disney, through ESPN on Disney+, have become prominent. Meanwhile, local services like Paramount+ and Stan Sport have secured significant rights, including the European Champions League and domestic football.
Marquard praised Nine Entertainment’s strategy, saying, “It’s a credit to Nine to keep going and look to increase scale. To go out and reinvest in rugby domestically and the World Cups, and now increasing their football portfolio, they need that.”
Stan Sport’s growing portfolio includes Wimbledon, the British & Irish Lions tour, and high-profile boxing matches, underscoring its expanding presence across various sports. The service offers a basic package for $12 per month, with an additional $15 for Stan Sport, but only a fraction of its 2.3 million subscribers currently opt for the sports package.
“As a result of this acquisition, I would expect them to look at their product offering again to see how they can get their sport package to a larger proportion of their customer base,” Marquard suggested.
Future Implications and Market Outlook
Optus Sport’s departure simplifies the subscription landscape for football fans, potentially saving them $10 to $25 per month. However, the market remains dynamic, with Kayo’s recent price increase and Dazn’s strategic moves, including a $1 billion deal with FIFA, reshaping the competitive environment.
The NRL rights from 2028 are currently under negotiation. Stan’s commitment to expanding its portfolio, combined with its relationship with Nine, suggests a partnership with another pay-TV provider is unlikely. However, Dazn, backed by Saudi Arabia’s Public Investment Fund, has the financial muscle to influence future market developments.
As more Australians transition to internet-served smart TVs and mobile devices, the traditional dominance of free-to-air television is being challenged. Recent investments by networks like Seven and Nine in online platforms indicate an awareness of this shift. For now, Optus Sport’s exit leaves the sports streaming race in Australia finely poised, with new opportunities and challenges on the horizon.
