Report: Australian SVoDs spend big on sport

Australia’s SVoD spending on sports is unusually high, with several local streaming services holding exclusive sports rights and many international broadcasters investing in the genre.

A report from Ampere Analysis explores why the country’s publishing landscape is unique.

Key facts from the report:

• Australia-based SVoDs allocated 21 percent of their overall content spend to live sports in 2023. It was 2.6 percent in the United Kingdom and 1.5 percent in Canada
• In the US, 4.3 percent of US-based SVoD spending in 2023 is allocated to this genre
• Local Australian SVoDs have acquired the rights to various foreign competitions. Stan Sport broadcasts the Six Nations as well as the UEFA Champions League, Europa League and Conference League. Optus Sport has the rights to the Premier League, J League and Women’s Super League.
• Due to time zone differences, non-market events are not broadcast in prime time. They are therefore less amenable to live or linear distribution and are consumed by capture.
• International events may appeal to Australia’s large expat population. According to census data, 31 per cent of Australia’s population was born overseas, with almost a million people claiming to have been born in the UK (3.6 per cent).
• It’s not just local Australian services investing in sports content. Paramount+ will show A-League football until 2026, DAZN will have access to Matchroom Boxing events until 2026 and NFL Game Pass International until 2033. Prime Video to stream 2026 T20 World Cup and 2027 ICC Cricket World Cup
• Broadcasters’ ability to invest in expensive sports rights also reflects the existence of a strong SVoD market. According to Ampere, Australia has the third highest level of SVoD penetration globally, with an average of 3.2 OTT subscriptions per OTT home. Only the USA and Norway have a higher average
• Added to this is the relatively weak pay TV industry, which was prevented from operating in Australia until 1995 by government regulations.
• Strict anti-hoaxing laws, which ensured that FTA networks were the first to reject certain premium content, including several protected sporting events, strengthened the position of FTA broadcasters at the expense of pay TV
• Traditionally, the purpose of these laws was to prevent pay TV operators such as Foxtel from securing exclusive broadcast rights to major events. However, in 2024, the framework of this regulation was adjusted to include streaming services.
• Despite the changes, it will be possible for broadcasters to obtain exclusive digital rights to a protected event as long as the event is available for free in a linear broadcast
• Adjustments to the framework may have a limited impact on SVoD’s short-term sports strategy, as these services generally invest more in non-market rights rather than protected events.

Ed Ludlow, Senior Analyst at Ampere Analysis, commented: “In the past, issues such as latency and long-established relationships between pay TV services and sports leagues have limited online gamers’ adoption of live sport. However, in Australia, sports broadcasters are taking advantage of the relatively weak pay TV sector and It has often sought capital by purchasing popular out-of-market events that are more easily consumed online than through traditional linear broadcasting.”