There was a time when the blue and yellow Blockbuster Video logo was a common sight in neighbourhoods all over, but the company’s refusal and inability to innovate saw them fall from market leader to a business school case study on how to screw it up.
As a new season of Super Rugby kicks off there has been lots to cheer about, but one aspect that has been frustrating for many has been the latest evidence of how SANZAAR’s Blockbuster-esque ineptitude leading this competition.
Stan Sport have received plenty of positive feedback from their first weekend of Super Rugby AU coverage, and you might think that all is well in the broadcast world of the competition. Sadly that’s not the case.
Beyond some domestic teething issues with pubs for example, overseas there are fans in Asia, Europe and the USA who are currently unable to watch Super Rugby – fans who not only want to see this great advert for Australian rugby but who are also ready, willing and able to pay for the opportunity.
Kyle Godwin. (Photo by Chris Hyde/Getty Images)
There has been plenty of discussion from SANZAAR about how the COVID pandemic has slowed down negotiations with broadcasters around the world. That might well be true, but that’s not the point. The bigger question is why SANZAAR is relying upon this style of media distribution anyway.
Over the past few years the growth of online entertainment streaming platforms has been evident for all to see, especially in the sporting sector.
Unsurprisingly, the American major sports all have their own streaming platforms fans can subscribe to from almost anywhere in the world to access live games, replays and complementary shows. These have existed for years – I subscribed to the MLB TV platform 15 years ago.
Don’t think that it’s only the big players of the USA market that are doing this though. Leagues and clubs all over the world are taking advantage of providing fans near and far with access to live matches and content via dedicated online streaming services known as over-the-top (OTT) media services.
La Liga – Spain’s top-flight soccer competition – has its own OTT offering that is becoming an ever more prominent part of their revenue stream. In 2020 this service generated over eight per cent of La Liga’s revenue, and the competition forecasts that will become over 20 per cent by next year.
Closer to home, both the AFL and NRL have partnered up with Fox Sports to provide overseas fans with a subscription platform to watch games and content without needing to rely upon a local broadcaster.
Yet in the past few days, as frustrations grew from many at the lack of ability to watch the opening round of Super Rugby AU, a member of SANZAAR told The Rugby Paper that, “At present … we have no OTT (over the top) platform in place as these costs are very expensive”.
SANZAAR has been around for over 25 years. Getting these OTT offerings right takes time, but you can’t help but feel that they’ve had plenty of that.
This is the latest example of how inept SANZAAR is at growing and promoting the game. For years the digital presence and marketing from the organisation has been average at best. Very average. From its website to its native app (or lack of one), from content to media innovation, SANZAAR have lagged behind competitions from all over the world.
Recent arguments that an OTT offering is very expensive should not be ignored – it could take a fair investment to create SANZAAR’s own streaming platform with all the security, stability and scalability it would need. But there are plenty of partners out there who would be open to a discussion about using their white-labelled platform. Perhaps they should use that sort of partnership to establish the level of demand overseas and what revenue would be reliably on offer from offering it and then decide whether it’s something that should be taken in house.
There are so many examples of how technology and sport are finding ways to collaborate to create new offerings and successful financial models. Whether it be dynamic data visualisation, bespoke viewing options or immersive experiences, there are sports that are using the richness of their underlying games and players to create ever-improving viewing for fans on a global basis.
It feels from the outside as though the SANZAAR leadership are about as comfortable with technology and innovation as the US Senate were with asking questions of Mark Zuckerberg about how Facebook works.
“So you’re saying someone in the UK can go on the line and watch the Tahs? But how can they do that if my computer is here in Sydney?”
Stan Sport had a good first weekend and it’s great to see a step forward in the domestic market in terms of audience experience and accessibility. Rugby Australia should feel good about the deal. But if SANZAAR are unable to find innovative ways of engaging with an important overseas market and exploring new revenue generation channels, then what exactly is the point of them?
Oliver Matthews
Expert
There was something like this back during the World Cup I think - there was a law firm or media firm who were responsible for copyright for the RWC content and they went on some blitz targeting anyone who tried to reuse content but World Rugby didn't know much/anything about it. I think Squidge actually got an official job as a reporter with RWC and was allowed to do his stuff on content once it was 24 hours old after some negotiation
fiwiboy7042
Roar Rookie
welcome to the world of professional sport.
The Ferret
Roar Rookie
They say ESPN has the rights but they don’t list any of the games on their site. I just want to watch my Footy and since
The Neutral View From Sweden
Roar Guru
They see in terms of dollars. If they really do, they would realize what poor business model they have.
fiwiboy7042
Roar Rookie
Copyright infringements is enough to get the lawyers involved. This is about potential loss of revenue. They see in terms of dollars.
The Neutral View From Sweden
Roar Guru
I am sure it is. But how can SANZAAR put themselves in that situation so they have to give Squidge and Two Cent tough love? Free bl''dy quality promotion with fan engagement. What's not to like about that?
The Neutral View From Sweden
Roar Guru
Again, I am in total agreement with you. It's insane that SANZAAR (and it's members unions who controls it) can't see the potential in this.
fiwiboy7042
Roar Rookie
A copyright issue, I'd suggest.
fiwiboy7042
Roar Rookie
Stan already have. They have the SRNZ rights and secured the NZ feed of the Japanese league.
Oliver Matthews
Expert
Yeah it's telling isn't it that the vast majority of case studies on topics like fan engagement, fan experience, content creation, user generated content, omni channel growth etc etc come from sports/clubs/leagues in the US and sadly very few come from rugby or Australia/New Zealand/South Africa. You can argue about restricted budgets etc but part of the genius of a user generated content plan is that it's the users who are generating the content, like you say, for free. Find the best ones, the ones who are doing stuff you can't do and partner with them. It's not as if SANZAAR have the secret recipe and they want to keep it secret. They should be looking at ways of growing their community in every way possible!!
The Neutral View From Sweden
Roar Guru
I am nodding my head in agreement with every word you write, Oliver. And guys like Squidge and Two Cent don't even want to get paid (well, I am sure they would like it but their core "business plans" have nothing to do with it). Just stop chasing them and lets them use some match pictures et al. It really irks me that the NFL, NHL, NBA encourages their fans to use their content and create quality content on YouTube, Twitter, Instagram, etc.
Oliver Matthews
Expert
Yeah this just comes back to the lack of innovative and collaborative thinking within SANZAAR it seems. They could look at the quality of those two YouTubers work and the audiences they are growing and think - hmmm, right now all we're doing when it comes to video content is a short, basic highlights package on our site after the game. Why don't we pay these guys a little bit and support them and hire them to create analysis content for us and stick it on our site? They would immediately gain more traffic to their site and stand a better chance of engaging with audiences around the world. Then if they backed that up with a streaming platform that they own and promote that, then maybe fans of Squidge's work would sign up to see a couple of Super Rugby games and then who knows?? So frustrating and short sighted!
Oliver Matthews
Expert
Absolutely - I think Channel 9 will sit tight for a bit and see how if they can grow the audiences and advertising revenue etc. Given that they've already invested in the whole set up I wonder if they could go to SANZAAR and do a deal over the overseas stuff too? Or SANZAAR should right now be speaking with other platform providers to see if they can leverage their kit to get a subscription service out there for overseas fans. I think that the excuses of "COVID" and it takes time and money are just so weak from SANZAAR. This stuff should have been in place for years already.
Oliver Matthews
Expert
Yeah from my digging the NRL and AFL ones are both actually delivered by FoxSports. If you look at them they are exactly the same structure - just different colours and pics. Like you say, the platforms already exist and have done for a while. So why not do a trial run for a season or two a few years ago and see what the uptake is. See if the financials make sense. Figure out whether it would be best to invest in their own platform or keep using a pre existing one. Instead SANZAAR are now missing out on revenue and do not control the distribution of their own product!! Crazy!!
Oliver Matthews
Expert
I think that's a big part of my frustration - it's not even as though they would need to build cutting edge new tech or come up with an entirely new product. These platforms already exist so why not partner with one a few years ago and test out the market to see if they uptake makes it financially worthwhile.
TC
Roar Rookie
The Ferret..I had similar issues, had Rugbypass last few years to watch it here in Thailand. A VPN also allowed me to watch a mates Fox feed, but now are going thirds with a couple of mates back in Aus for Stan. Only costing $10 Aus a month each..NordVPN does the Job..Was checking the Reds merchandise page to see the New Stuff..All 2020 stuff still, think they are a bit Behind
TC
Roar Rookie
Used to have Rugbypass here in Thailand, but went thirds with mates back in Aus to get Stan, Watched both games with a VPN with no real issues. Was told by a good mate who runs a Leagues Club that Fox increased their Prices to Clubs and Pubs, while reducing their Content..Pubs and Clubs are not Happy
the big marn
Guest
You haven't a clue how contracts work. That's not stans fault you can't watch rugby overseas. That is SANZAAR's fault for not negotiating an effective contract with Stan that would allow it.
Big Dog
Guest
Good article, Oliver. Seems to be yet another missed opportunity by the suits of Southern Hemisphere rugby. My thoughts: Channel 9 (Stan) have only purchased broadcast rights for Aussie rugby for three years. I’d be surprised if they’re keen to spend one cent more than is absolutely necessary on their new acquisition unless, of course, it’s a raging success in Year One, which would prompt further expenditure. As Mick Hucknall sang a couple of decades ago, “Money’s too tight to mention ...”.
Paul
Roar Guru
If an OTT offering is not in place because it's supposedly very expensive, why do both the NRL & AFL have one? The argument about cost to me is a furphy. I'm no expert, but SANZAAR should be able to find a market ready product that can be adapted for purpose, just as I assume both the Australian sports codes did. And there's no way they'd have spent massive amounts on this because the NRL at least doesn't have huge money reserves and the AFL doesn't have a massive international market.