Foxtel’s ‘big five’ a winning position, says CEO Patrick Delany

Foxtel is in a ‘competitive position’ and is being ‘smarter’ about what sports rights deals it chooses to pursue.

Foxtel chief executive Patrick Delany at the company’s offices in Artarmon, Sydney. Picture: Ryan Osland

Foxtel is in a competitive position after locking in long-term partnerships with the big five sports codes – the AFL, NRL, cricket and the motor sports – and is being “smarter” about which rights deals it chooses to pursue, the company’s boss, Patrick Delany, says.

At the same time, streaming services Kayo Sports, Binge and soon-to-launch Flash will help drive the broadcaster to five million subscribers within three years.

Speaking at Foxtel’s strategy day on Thursday, chief executive Mr Delany said the media company’s ability to offer premium sport was the direct result of signing good deals with top codes and having detailed knowledge of what consumers wanted to watch.

“The data we have allows us to see what people are using and not using,” he said. “Prior to having that data, we would have layer upon layer of sports though we didn’t quite know what worked. But (that) has led us to where we should invest more.

“That’s why the strategy moved to the big five – the AFL, NRL, cricket and the motor sports.”

Mr Delany said it was also important to significantly invest in popular local sporting codes while also having plenty of international offerings available.

“We’ve invested in local growth sports, including netball and local basketball,” he said.

“And we have the best of international sports like F1 and The Masters, US sports through ESPN and European sports through beIN.”

Foxtel’s sports streaming service Kayo was launched in Nov­ember 2018 and had 1.1 million subscribers at the end of June this year.

Mr Delany said the company, jointly owned by News Corp and Telstra, was on track to reach more than five million subscribers and $3bn in annual revenue within the next three years, with the cornerstone of the business being “growth through streaming, and to win with world-class content and technology”.

Foxtel will launch Flash, a first of its kind, dedicated live news streaming service featuring 20 local and global live news sources in September. It will be the third streaming service it has launched in as many years.

In 2016, just 8 per cent of the company’s subscribers came from streaming. That figure now sits at 53 per cent, and rising.

Kayo, Binge and Flash chief executive Julian Ogrin said “the secret sauce is our product offering” and there was plenty more room for growth of offerings to subscribers.

“The depth of our year-round calendar allows casual fans … and fanatics to be deeply engaged with the product,” he said.

“It reduces seasonal churn, and we’ve created opportunities for unique sports partnerships by bringing select games in front of the paywall.”

He said while Kayo was available on a phone, tablet or computer, a majority of viewers (68 per cent) accessed streaming content on TV screens.