Streaming service Stan who failed to get access to the AFL rights in a recent bidding dual with Seven and Foxtel, is apparently looking for a business investor in an effort to relieve some of ther pain of funding the business according to sources.
According to analysts the Nine Entertainment owned entity has peaked and the prospect of a new look Foxtel next year, which could involve the ditching of the Foxtel name has prompted Nine Entertainment to move to minimise the risk.
ChannelNews understands that Nine whose management are currently in the USA trying to secure content have spoken to potential investors in the USA.
Nine chief executive Mike Sneesby has been in Los Angeles meeting with production companies in the hope that they can get the rights to new content for next year that will shore up viewers to Nine and subscribers for Stan.
The move comes as Netflix moves to a cheap service that will include advertising.
Earlier today we revealed that Binge an archrival to Stan is set to include advertising on their platform.
Binge will introduce tier advertising onto its entertainment platform and allow companies to promote their brands from 2023.
The announcement was made during Foxtel’s Upfronts on Thursday, where a range of new programs were revealed to deliver fresh content to subscribers.
In a blow for Stan, it was recently revealed that US film studio giant NBCUniversal is set to grant Foxtel the majority of its programs and films for the Australian market a move that has prompted Nine management to go looking for new content.
Foxtel is believed to have secured a long-term deal for the majority of NBCU’s programs, including content from Sky Studios, online streaming service Peacock and a back catalogue of programs such as Parks & Recreation and Brooklyn 99
During his latest content discussions in the USA, Sneesby is believed to have floated the idea of selling shares in Stan a move that has been muted in the past.
During COVID lockdowns Nine looked at selling the entire business but failed to attract any interested parties due in part to overseas entities such as Disney, Amazon Prime Paramount who also bid for the AFL rights and Netflix growing their subscriber base in Australia.
ChannelNews understands that the plan was for Nine to further build out their other entity Nine Now with new content, sport and news a move that would see them go head-to-head with Seven + who are also building out new content streams including more drama and movies.
The Australian claims that Stan is making about $28.5m annually but was previously predicted by former boss Hugh Marks to make about $100m in earnings before interest, tax, depreciation, and amortisation.
Previously Stan was seen as the growth engine for Nine who are now struggling to identify where their future lies with moves to change streaming and content laws around sport and content now being discussed by the new Federal Labor Government.
If the changes, go ahead more sports could end up on free-to-air television in Australia and streaming services such as Stan could face increased regulation when bidding for broadcast deals.
“Every Australian deserves the chance to enjoy live and free coverage of events of national significance, regardless of where they live or what they earn,” the communications minister, Michelle Rowland, said.
“Subscription-based services make a valuable contribution to Australia’s media market and consumer choice, but not everyone can afford to pay for sport.”
The official line out of Nine Entertainment is that there are no immediate plans for a change to its ownership.
Two years ago, analysts from Morgan Stanley said the streaming market in Australia is worth $1.7bn, involving 12 million subscribers paying about $12 per month on average.
Of that, Stan, which generates $381.2m in revenue, had a market share of about 18 per cent.
They predicted the number of subscribers would grow to about 3.1m by the 2023 financial year.