A top executive at Optus has said that the company is considering bundling mobile phone plans with sports streaming subscriptions.
“We have a content business in Optus Sport and I can see the benefits of bundling that in for a subsection of the community,” Optus Chief Executive Stephen Rue told the Australian Financial Review. “Sports content is important.”
It comes at a time when other media reports indicated that Optus Sport has been up for sale for some time, and was a potential acquisition target for the Nine Entertainment-owned Stan.
Optus’ sports streaming operation was created in 2016 after acquiring the broadcast rights to English Premier League matches.
Optus currently does not combine sports streaming with its phone and internet packages. However, broadband and some mobile customers can add Optus Sport at a cheaper rate compared to standalone subscribers.
Rue reportedly said that bundling services can help Optus target specific groups of customers.
Optus Chief Executive Stephen Rue
While Rue has hinted at the possibility of bundling its sports streaming with its mobile plans, he hasn’t ruled out the possibility of an outright sale of the sports business too.
“All businesses look at the best way to provide maximum value to shareholders,” he said. “I also would say that bundling content is a good thing to do. We have access to the Premier League and access to FA Cup and that provides better service for our customers.”
Optus will be looking to firm up its sports streaming strategy as DAZN recently agreed to buy Foxtel Group whose brands include Kayo, Foxtel, Binge and Hubbl, in a deal that valued the company at A$3.4 billion, representing more than 7x fiscal 2024 Foxtel EBITDA.
Rue has previously spent over a year on the board of Foxtel during his time at News Corp.
Under DAZN’s acquisition strategy, Foxtel’s shareholders, News Corp and Telstra, will remain involved with the entity. The Foxtel Group is owned 65% by News Corp and 35% by Telstra.
Telstra used to sell bundled packages combining Foxtel content with its phone and broadband services.
News Corp will now hold a minority equity interest in DAZN of approximately 6% as well as one seat on the DAZN Board. Telstra will take a minority stake in DAZN of approximately 3%.
“Kayo and Foxtel provide Australian sports fans with access to the best Australian and international sport and shows, including AFL, NRL and Cricket with 4.7 million subscribers,” said Foxtel Group CEO Patrick Delany.
