Stan eyes original programs and films to fight global streaming giants

Streaming video service Stan will embark on a major local content push in a bid to reduce its dependence on Hollywood studios and fight back against global streaming services that have entered Australia.

Stan on Monday will unveil plans to commission up to 30 new 'Stan Originals' annually within five years. Stan's parent company is Nine Entertainment Co, which also owns The Sydney Morning Herald and The Age.

Popular US shows like Billions that were secured in large output deals brought subscribers to Stan. Now Stan will become more reliant on its own content.Credit: Jeff Neumann/SHOWTIME

Stan chief executive Mike Sneesby told The Herald and Age that the company's cash-flow position had helped it expand its investments in original programming. But Mr Sneesby declined to comment on how much the investment would cost the company. Stan currently has about 2 million subscribers.

"The strategy has been enabled by the success of our existing original productions, combined with having developed a commercial model with our international partners that makes sense," he said.

"This strategy sits alongside our plans to further increase our existing partnerships with our international and Hollywood studio partners."

Stan recently failed to renew a longstanding deal with entertainment giant ViacomCBS, owner of Network Ten, for popular Showtime content when the US company announced it would launch its own streaming product in Australia.

It was also hopeful of landing a multi-million dollar deal with WarnerMedia,the owner of premium studio HBO, in May but lost out to News Corp's Foxtel. Both Stan and Foxtel lost Disney content when the US behemoth launched its direct-to-consumer streaming service, Disney+ last year.

The Nine-owned streaming service does have long-term output deals in place with ViacomCBS' Paramount studio, which makes popular shows such as YellowStone and The Great, and deals with other studios including Starz and Sony.

In the coming months Nine's television division, led by Michael Healy, will work closely with Mr Sneesby and his team to commission new programs and films. Nine will use its production capabilities to accelerate Stan Originals​ production. All content commissioned will run through Stan's financial accounts.

Analysts view Stan as a strategically important asset for Nine, which reports results this week. The business turned cashflow positive in the second half of the 2019 financial year. It reported revenue of $116.6 million, up 79 per cent, and earnings before interest, tax, depreciation and amortisation of $14 million in the first half.

Goldman Sachs analysts "modestly" increased their content costs assumptions for Stan in July.

Stan's new program slate includes a new drama called Eden, which has been made by the creators of Miss Fisher's Murder Mysteries and Skins. It will also feature investments and co-productions with a number of local international partners. The new films and dramas are expected to make up between 25-30 per cent of Stan's first run exclusive content slate.

Other original shows to appear will include Bump, a 10-part drama series about an ambitious teenage girl who had a baby unexpectedly and Dom and Adrian: 2020, a mockumentary about two men living in 2020.

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