The news that the A-League’s TV ratings are way down should come as no surprise to anyone with a passing interest in football and a mobile phone.
Let’s start this discussion with some stone-cold reality.
Television is no longer king, and companies that continue to base revenue projections on outdated business models are heading towards a future of increasingly diminishing returns.
It’s all well and good for networks to want to charge top dollar for advertising, but the reality is that substantially fewer viewers are watching linear TV in 2018 than when the A-League first kicked off in 2005.
So for A-League boss Greg O’Rourke to claim he’s “surprised” by a 30 per cent drop in the number of viewers watching the A-League on Fox Sports this season, and that his organisation was “going to dig a little bit deeper” to find out why, smacks of basing the metrics on old-world realities.
Head of the A-League Greg O’Rourke (Photo by Michael Dodge/Getty Images)
There’s no mystery here.
When presented with the opportunity to stream the A-League through Telstra’s new My Football Live app, many fans took the opportunity to cut the cord and cancel their Foxtel subscription.
That’s if they hadn’t already. One of the effects of streaming platforms like Netflix and Stan entering the Australian marketplace has been for consumers to take stock of how their disposable income is being spent.
Stacked up against a cost of around $18 per month for a high definition Netflix subscription and just $10 per month for a streaming subscription with Stan, suddenly the high cost of a Foxtel cable package doesn’t look so appealing.
Which is undoubtedly why Foxtel chief executive Patrick Delany has recently promised to launch a new “Netflix of sport”.
The Foxtel chief executive knows the sporting landscape well – he was formerly in charge of Fox Sports – and he’s under pressure to increase Foxtel’s penetration in the Australian marketplace beyond the 30 per cent mark of households it’s long hovered around.
It won’t happen via their long-standing subscription model though – hence Foxtel’s desire to break into the streaming market – and it will be interesting to see what the media landscape looks like in another 12 months’ time.
However, A-League administrators shouldn’t be blamed for allowing Telstra to sub-licence the digital rights from Fox Sports, given that the move has the potential to open the competition up to an entirely new market.
It’s how to monetise that market going forward that will be the problem – particularly when many young fans are so disinclined to pay for content.
That’s partly because many simply can’t afford it, and partly because many have grown up in the internet era and feel entitled to get their entertainment fix for free.
And there’s a growing divide between older fans happy to shell out for a Fox Sports subscription to watch on their big-screen TV, and digital-savvy youngsters who watch everything on their mobile phones and laptop computers.
People are still watching the A-League, but through different modes. (AAP Image/Brendan Esposito)
The A-League’s current broadcast deal still has five years left to run, and while some club officials think the rights were actually worth more than the approximately $45 million per season Fox Sports is currently paying, it remains to be seen whether those sorts of figures are achievable on the back of streaming revenues.
Many fans point to the $15 per month Optus Sport currently charge to access the English Premier League as the right amount to pay for streaming content.
But what they fail to acknowledge is that Optus simply re-broadcasts content produced by the Premier League themselves. They also tend to forget that Optus was originally happy to lock out non-customers from accessing the EPL at all.
It all adds up to a rapidly changing landscape.
And while the streaming revolution might be good for consumers looking to cut down on discretionary spending, an important question still remains.
Will streaming be enough to keep the lights on of an A-League currently reliant on a cable TV network to effectively bankroll the competition?
John
Guest
Fox sports and free to air televison will always be in total control of optus and telstra steaming of Australian sport . There content will always come from Foxtel and free to air television which the only certainty is streaming will cost more and more and more as the providers of the content charge more and more to access there product.. Its the same old story.. get millions hooked and then charge them like wounded bulls to maintain the the service
pauly
Guest
I'm one of those reluctant Foxtel subscribers but after my experience last weekend, I too can see the future. It was Saturday night and my beloved Victory were in Newcastle trying to get their season on track in a GF re-match. Unbeknownst to me, my wife invited some friends over and they brought some meat for the BBQ. With our dining table covered in crap, we decided to sit outside, well away from our TV. I just brought my iPad outside and set it up via the Foxtel app and didn't miss any action. It dawned on me that tablet devices and smartphones, while not providing the wide and clear picture of a big TV, do have the convenience of mobility. Over dinner, we all concurred that by the time our infants became adults, television sets may well have become obsolete and that our children would likely watch programming on their devices wherever and whenever they wish. The days of fighting over what to put on TV and rushing home in time for a game or a show may well be over.
Nemesis
Guest
As some of us have been suggesting for a while, Foxtel has finally revealed the plan for its new Sports Streaming Product. Pricing is about where I suggested. 2 prices: $25 per month & $35 per month - basically, it works out to $12 per user per month for all FoxSports content. 14 Day Free Trial now being offered. Can watch on any device, & Chromecast to the TV. https://kayosports.com.au/
Expat
Guest
Most people in Australia don't comprehend the mind of the average Football fan. I'm European and I explain: In Europe the average Football fan only cares about his own club and does not watch much other Football on TV. He goes to the home stadium every second week to cheer for his club and "let the dogs out" with his mates. He's not an observer of the whole league and has not much interest nor knowledge about other clubs. That is the big error of thinking among Australian administrators! He's NOT like the average Rugby League fan who watches the WHOLE league on TV and he NEVER WILL BE. He wants a LONG season because he works 48 weeks a year and he expects his club to be "there for him" for most of the time, NOT ONLY 6 months of the year! That's WHY YOU absolutely NEED to have a long season. How can a Football fan possibly respect Football players who only deliver 6 months a year when society EXPECTS from him to produce full-time all year round?! Think about that! It's all psychology! Forget about trying to change the fan. The fan DOES NOT want your A-League on TV. He wants MANY matches in his home stadium. Do they ever get it in this country?!...
Mister Football
Roar Guru
After each broadcast deal, there are always theories about how so and so offered a huge fortune for the rights, but the FFA foolishly knocked it back! The FFA just keeps knocking back all this money when they can ill afford to do so! Did Frank Lowy not understand basic business principles?
Baz
Guest
My only issue with a pay-per-view model is that, it doesn't increase exposure of the league. Yes people who are already invested in a team or the league as a whole will subscribe to a model such as this, but the biggest issue FFA/A league have is that we need to be exposing the product to non traditional viewers. This is why marketing and free to air viewing was so important and to a degree fox sports. Those people who would't even know a game was on but while flicking through the channels on a weekend accidentally come across a Victory game and and stop for 15 mins. Those 15mins could be critical in attracting somebody who would otherwise keep scrolling through the channels. Similar to an AFL fan, scrolling through foxtel during the off season accidentally landing on a derby. A pay per view option doesn't necessarily provide these opportunities. Mind you, i don't think we're doing enough at the moment to utilise this anyway. I thought channel 10 would be great for the A -league because i've always noticed that they do cross promotion better than any other. I remember 'the project' actively promoting the big bash during summer almost each night. Bringing in people like Adam Gilchrist to preview the upcoming match, or doing a live cross. I was hopeful they would do the same for the A league, but i've only come to realise they just don't care enough.
Josh
Guest
And if Foxtel didn’t pay for their services? I’m guessing they likely wouldn’t be employed (definitely not all of them, anyway). Stop being cute, please.
Nemesis
Guest
Foxsports doesn't own the cameras, cables, trucks & equipment for ALeague broadcasts. They outsource that equipment for each match from companies like Gearhouse.
Eamon Stocker
Roar Rookie
On another note, has anyone noticed that Fox Sports don't broadcast Asian Champions League despite having the rights for it? I've tried to watch some Hiroshima games earlier in the season - I can understand why they wouldn't broadcast that - but today I discovered that they don't show the ACL Final. Surely the ACL final would secure better ratings than replays of V8 supercars and the Prime Ministers' XI playing SA?
Redondo
Roar Rookie
That would explain why Bosnich is so on edge this season. Who else would offer him a job?
Nemesis
Guest
Simply not true. There was another bidder. Not a broadcaster. The bidder was an international marketing agency, who buys broadcast rights & on sells them. The clubs wanted this deal. It's pretty common knowledge and quite obvious that FFA Board & FFA CEO are very close to News Corp & FoxSports and they refused to allow this. There will be massive shake up of ALeague broadcasting rights when the New League is operational next season. FoxSports is pretty much aware they're going to lose exclusive rights & they're providing the bare minimum promotions for the football content nowadays.
Mister Football
Roar Guru
Dag Jordan. Welke voetbal club hou je ervan?
Jordan Van De Vorst
Guest
https://www.afr.com/business/media-and-marketing/tv/foxtel-readies-sport-and-entertainment-streaming-services-to-fight-netflix-stan-20180805-h13kg9 Sport-only fox streaming is coming in the next few months, I'd say before the start of the winter footy codes. The way they have rebranded their channels into league, footy and cricket suggests that they may be offered as individual products. Also, I got an email yesterday about Foxtel Go no longer being supported and instead users just stream from a browser now. I think this is to simplify their whole suite of products. Having Go and Now is needlessly complex. Having both products offered from the one platform, with one login (the difference being that you already have access to it if you have a foxtel box without handing over your credit card) looks to be what they are working towards.
Mister Football
Roar Guru
All well and good, but at the time of the last broadcast deal, there were no other bidders for the product, even though Optus and others were already around. On top of that, the FFA was keen for what looked like a big headline number, so Foxtel got a six year deal with a heap of provisos that allowed the FFA to achieve their headline number, but in reality, currently the cash component is only slightly higher than the last deal, and we have another 5 seasons of it.
Lionheart
Roar Rookie
An early step for an independent A League will surely be to gain ownership of the product so that they can sell it to multiple broadcasters in varying packages. So maybe FTA in Perth or Brisbane would want their local club games live, but have no interest in other games. Others like Fox or a Telco may want all games. Presently I'm in the UK and I notice that BT Sports shows the Friday night W League match, but not the others. The main thing for the A League in my view anyway, is to break the control Foxtel have over the game and on-sales because they have the cameras and callers and producers. I guess I'm saying what Nemesis has already said.
Lionheart
Roar Rookie
Great work here Nemesis. Thanks.
Lionheart
Roar Rookie
same for me, thanks guys.
AGO74
Guest
Re your closing comment on what would people buy - the answer is obvious (and I realise it was a rhetorical question!). given the way Optus has morphed its availability and streaming options in a bit over 12 months I think we are not far away from seeing similar in other sports.
Bilbo
Guest
If there was a profit in picking up AFL/NRL/cricket and other sports and only charging $15 a month they I’m sure others would be alll over it, but they aren’t Name who other than foxtel and 7/9 actually broadcasts, you know, as in employes camera men to cover the sports, I bet you can’t. Why? Because it takes a large investment to do so.
Bilbo
Guest
Look at the other streaming providers? Things to remember are foxtel doesn’t just rebroadcast the EPL or the UCL. It covers a large number of sports and drops enormous sums on the AFL and the NRL and the cricket. If foxtel simply rebroadcast a couple of European soccer leagues that aren’t watched by the mass market and rights locally don’t cost $1 billion dollars then their charges might be different