Stan builds local roster while loyal to Disney

Stan boss Mike Sneesby wants to continue its content partnership with Disney as the streaming platform ramps up local production.

Stan chief executive Mike Sneesby at the Morgan Stanley Australian Summit 2019 in Sydney yesterday.

Stan boss Mike Sneesby wants to continue its content partnership with Disney as the streaming platform ramps up local production before an expected drop in international content.

Stan’s one-year deal with Disney expires in December, and ­investors are keen to hear if it will be extended as the US giant prepares to launch the keenly anticipated streaming service, Disney+.

Disney will unveil its streaming service in the US in November after wrapping up its $US71.3 billion ($102bn) acquisition of the bulk of 21st Century Fox’s entertainment assets earlier this year and ending its streaming deal with Netflix. But the group has been tight-lipped on its international plans.

Stan, which is owned by Nine Entertainment, has now “more than 1.6 million active subscribers”, thanks to its string of US shows and movies, and has been “EBITDA positive from March”, Mr Sneesby told the Morgan Stanley Australia summit in Sydney yesterday.

He also said the group’s marketing spending this month would be the highest on record, with the launch of Showtime’s new drama miniseries, The Loudest Voice with actor Russell Crowe, and other shows.

“It is a show that every Australian will be able to tune in and ­relate to. It's a big premium ­scripted drama that will appeal to a broad adult audience,” he said.

Speaking on the sidelines of the summit, Mr Sneesby told The Australian that Disney had been “a great partner”, adding that it had a “really positive relationship with their local and international teams”.

“We’ve said to them quite openly that we’re open to continuing partnership in one form or another beyond some of this core period that people are referring to, and what that means I think is kind of up in the air.

“There’s nothing we can say about it. I think there’s a lot of focus on Disney because they are such a phenomenal brand, and they are the one major producer of content worldwide who has drawn that line in the sand around their intention to be a direct-to-consumer business.”

Mr Sneesby said Stan customers would see a “bigger slate of original productions”, but was mum on their premier dates.

Stan plans to show four new locally produced drama shows over the next 12 months. These have been produced in partnership with production companies with a budget of $55m to $60m. It would look to recoup its ­investment by selling the international rights, Mr Sneesby said.

“I think that’s something that is very exciting, and those productions in the scripted-drama space are the biggest budget productions that we’ve ever invested in. About $55m-$60m is roughly the budget of investment with our partners that is going into local original production, so I think that’s significant and it will come across (on) the screen.”

Mr Sneesby was bullish about the outlook of the local streaming market, forecasting “penetration will lift to 70 per cent-plus over the time”. Households are likely to have “an average up around two” subscriptions if not more if the US market is any indication.