The Foxtel/Nine NRL rights expose the big problem with Australia's sports broadcast laws
Thank the Telstra outage this morning for today’s lunchtime send.
The big media story down under is the NRL signing a $5.3 billion broadcasting deal with broadcast network Nine and pay TV company Foxtel sharing the rights. It is the largest deal ever struck for an Australian sporting code.
This deal extends the current broadcast arrangement, kicking off in 2028 and taking things through to 2034. Foxtel is certainly picking up the heftiest part of the cost of this, paying around $520 million a year for the deal. Meanwhile broadcaster Nine will pay $145 million cash annually, with some contra advertising also provided as part of the deal.
As per SMH:
Nine will get free-to-air rights to three games a week, as well as exclusive rights to State of Origin and the NRL Grand Final. The agreement ensures that State of Origin will remain on Wednesday night, and returns the draw – which had previously been done in conjunction with the broadcasters – to the NRL.
Now, getting past the value of the deal, which I suspect was grossly expensive as it really seemed like the only two companies willing to bid serious money on the rights were the two shared winners Foxtel and Nine, when I look at the deal all I can see is a huge missed opportunity for these rights to help transition viewers smoothly over to a streaming environment.
Unlike the UK, Australia doesn’t have a timeline which will see the broadcast signals shut off. The BBC has announced it plans to shut off the over the air broadcasting of its TV services by 2035, shifting exclusively to online delivery. Based on current audience habits, I would expect to see Australia operate on a similar timeframe with commercial broadcasters switching to online delivery by then and government broadcasters ABC and SBS holding out just that little bit longer.
But we’re really reaching a time period where we will see viewers shift online en masse for their free, ad-supported TV needs.
Australia has what it calls the anti-siphoning list. This is basically a list of sporting events that are deemed to be culturally of importance, keeping the events on free-to-air TV. I’m not a big sports guy, but I love that the government keeps these events available to the public free of charge (albeit, ad-supported).
But, as viewers move online, it creates an inflection point for the media. Once a commercial operator stops broadcasting over government-owned airwaves/spectrum, it really makes their position of privilege void. A Channel Nine streaming its services exclusively online is actually no different to any other commercial operator.
Should Nine have a protection to keep first-right access to sports on the anti-siphoning list? There’s no clear justification for that.
Under the current framework, an operator like Foxtel which delivers its services over cable, satellite, and online for a subscription fee, is only able to purchase rights if:
the event is automatically removed from the anti-siphoning list
the Minister removes the event from the list
a national broadcaster (ABC or SBS) or commercial television broadcasters with a combined audience of more than half of the Australian population have purchased the right to televise the event
7 days have passed since the end of the event.
But why are we still so wedded to the idea that a free-to-air broadcaster needs to be involved in the rights deal? A deal like this, which extends through to 2034, needs to be more considerate of the operating environment that 2034 will deliver.
Why doesn’t the anti-siphoning legislation have a clause in it which allows a commercial operator like Foxtel to buy the rights exclusively, but is mandated to provide a certain percentage of it available for those outside a paywall?
It would have provided an incentive to reluctant, analogue viewers to access their services online, helping make the transition to 100% streaming easier. Now, the closer we get to the end of this broadcast deal, the clunkier this is going to feel.
The AFL rights expire in 2031. I’d expect that before then we will see more forward thinking anti-siphoning regulations in place. The mass adoption switchover will happen sooner than many realise.
Netflix’s second season woes
The Bloomberg article about Netflix losing audiences in its second season has been prominent on my social channels. It’s not a new conversation and we have seen discussion about this problem a number of times over the past year or two.
But a couple of quick thoughts on this:
No, this specific issue isn’t a consequence of the long gaps between seasons. It is impacting shows that have returned the same year.
No, the solution to this isn’t having shows with longer episode counts per season.
No, the problem isn’t the binge model or that Netflix should adopt weekly release patterns.
The problem is that viewers are willing to take a gamble on a show or movie they haven’t seen before, but when it comes to a second season, many are confronted with a pretty simple equation: Yes, I could watch this thing that I remember liking last time… but maybe there’s something better to watch.
What Netflix need to be doing is reminding viewers why they liked a show previously and giving them a taster. I have banged on about this in the past, but Netflix would be very well served by putting in place house ads for programs. There’s a reason HBO can grow audiences between seasons for shows, but Netflix can’t. Load up HBO Max and you will see multiple house ads for new and returning shows.
Viewers don’t make great, informed choices off tile images. But a short, sharp house ad? That does the trick.
And let that Netflix algorithm get to work – get the algo suggesting which ads should be served.
News Desk
The Sopranos creator David Chase is working on an HBO limited series about the CIA’s MKUltra program. But he’s also just announced an untitled movie he’s working on which is also connected to MKUltra. Read: THR
MrBeast will be a guest shark alongside names like Mindy Kaling in the new season of the US Shark Tank. Read: THR
The debate over whether the US ABC’s The View is a news program or not continues (it relates to the Trump weaponised FCC forcing the Disney-owned Disney to justify its broadcast licence). ABC says the FCC had ruled it is a news program back in 2002. Read: NYT
Inspired by Paris Hilton’s real-life pets, animated show Paris & Pups has just been picked up by Sky Kids in the UK. This feels even more offensive than the Property Brothers kids cartoon. But also in line with so many dopey celebrity-driven cartoons I watched as a kid, like the show with Mr T and his gymnist teen pals. Read: Deadline
Ricky Gervais will launch a clip show special on YouTube on Wednesday to mark the 25th anniversary of The Office. Read: C21
Mariska Hargitay will host the Emmy Awards this year, the first female host in 15 years. Read: The Guardian
Netflix are bringing cheap video content to its service from online publishers like BuzzFeed Studios, Condé Nast, Hearst Magazines, Penske Media's PMX brands, People Inc., and Tastemade with additional publisher partnerships to be announced. If I wanted this sort of cheap content, I’d just go to a FAST platform… Read: thefutoncritic
RIP Mary Hartman Mary Hartman star Louise Lasser. She has passed at the age of 87. Read: Variety
Trailer Park
Hot Ones: Extra Heat debuts on Netflix July 13.
Avatar Aang: The Last Airbender is skipping cinemas and will debut on Paramount+ July 25.
Umthetho debuts on Netflix August 14.
To keep their youngest brother alive, an idealistic state prosecutor is forced to become a double agent in her imprisoned older brother's gang.
Love In Slow Motion debuts on Netflix July 23.
When Haya's best friend Jawad gets engaged, her chronically-single world unravels - because who knew true love could be hiding in the friend zone?
Fightland debuts on Starz July 31.
Set against the high-stakes world of British boxing, "Fightland" is a gripping story of redemption, betrayal and brutal ambition - in and out of the ring.
That’s the newsletter for the today.
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