Could big movement in streaming in the US be a portent to a shake-up of streaming services here in Australia?
The question is being asked following news that Disney owned sports channel ESPN and the American NFL are in advanced talks over a possible equity deal. It’s among a series of deals being discussed in the US with some services finding the going tough.
The New York post reports that the ESPN-NFL talks could lead to the league taking an equity stake in ESPN.
“For the long-term viability of ESPN, aligning with the most powerful sports league would enhance its position as the network plans to move to direct to consumer by 2025,” the post says.
“While the idea of an ESPN-NFL alliance has been mentioned before, discussions between Disney-owned ESPN and the NFL are far enough along that sources said that owners and the Players Association are being informed about the talks.”
The report says the NFL has been trying to unload its network for years.
In Australia the situation is different with major sporting bodies such as the NRL and AFL not operating their own TV networks. But there is concern big US firms could set their sights on the Australian sports streaming market.
One concerning scenario is that tech giants such as Apple and Amazon could pitch for premium Australian sport streaming rights, causing bidding to go through the stratosphere.
Last year, The Australian Financial Review reported that Australia’s major broadcasters were paying more than $1 billion a year for the rights to air the AFL, NRL, cricket and tennis. The overall price of broadcasting rights had nearly tripling over the past decade despite a slide in earnings, it reported. It said current AFL, cricket, tennis and NRL deals are in place until 2031, 2031, 2029 and 2027 respectively.
Streaming networks are finding the going tough. Reuters reported last week that Amazon was about to lay off “several hundred” employees of Prime Video and Amazon MGM Studios in its streaming and studio operations. This is on top of a cut of 27,000 jobs last year as a reset after heavy hiring during the pandemic.
ChannelNews Australia last week reported that National Amusements, which controls Paramount+ and the Ten network in Australia, was looking for a buyer. That could see a takeover of the Ten network. It said Warner and Disney have expressed interest in Paramount’s business, and National Amusements itself could be up for grabs with Hollywood studio Skydance in talks for a cash bid.
The report said Skydance CEO David Ellison was getting backing from his tech tycoon father, Oracle founder Larry Ellison for a possible deal.
