Warning on coverage as Rugby Australia toys with Optus deal

As Rugby Australia prepares to auction broadcast rights, advertisers warn a tie-up with Optus would hurt the code.

A broadcast deal probably means distribution across newspapers, online and radio, which amplifies coverage. Picture: Getty Images.

As Rugby Australia prepares to kick off the auction for its broadcast rights next month, advertisers warn a tie-up with telecoms group Optus would hurt the embattled football code.

With the code still reeling from the Israel Folau legal drama, as well as a lacklustre on-field performance, advertising veteran John Steedman said an Optus tie-up would be “disastrous for the sport” as its audience reach would be smaller.

The comments come as Rugby Australia last month was revealed to have rejected a “rollover” broadcast deal from Foxtel and instead opened talks with Optus.

The Rugby Australia board is in talks with Optus to show the Rugby Championship, Super Rugby and Wallabies tours even though the telco lacks a free-to-air TV broadcasting partner. Optus declined to comment.

“I think advertisers would prefer it to be on a free-to-air or pay-TV,” said Mr Steedman, who has worked in advertising for more than 40 years. He is a board director of Australia’s biggest advertising company, WPP AUNZ, and oversees its media investment management business.

It comes as major media companies are sweating their sports rights harder to attract more fans across multiple platforms.

For sports like cricket, tennis and a handful of football codes, a broadcast deal probably means distribution across newspapers, online and radio, which amplifies coverage in a hyper-competitive market.

For TV networks, sports serve as a way to promote their programming. Sporting codes use the high profile on screen to keep fans happy and attract new ones.

Barry O’Brien, chair of media agency Atomic 212, questioned whether a telco was the right answer for Rugby Australia, regardless of the price tag.

“If you are not a higher rating sport but you still need coverage because you have sponsors and you have a telco offering ... at least you have some way of getting your sport out there.

“There’s probably an element where (rugby union) is not where it used to be, which is a great shame. It should be on free-to-air or it should be on Foxtel.

“You’ve got a very big viewer base of fans who love the Wallabies, love the Super Rugby.”

In a surprise move four years ago, Optus forked out $189m for the Australian broadcast and digital English Premier League rights for three seasons, as part of its corporate strategy to differentiate itself from rivals Telstra and Vodafone. Australian news coverage of the world’s most popular football league has dropped since Optus, the nation’s second-­biggest telco, kicked off its EPL coverage in August 2016, according to data from Google Trends.

Peter Campbell, head of Fox Sports, said engaging with fans was an year-round commitment.

“We’ve built foxsports.com.au to be the No 2 sports website behind news.com.au and we have ­really strong social assets to amplify sports and engage fans,” he said. Foxtel and Fox Sports share common ownership with The Australian’s publisher, News Corp Australia.

Australian news coverage of the English Premier League

When Nine’s former Wide World of Sports boss Tom Malone announced the network’s plans for the tennis, including the inaugural ATP Cup, he spoke about the opportunity to amplify the sport across the business.

That takes in its newspapers, including The Sydney Morning Herald and The Age, plus its newly acquired radio business Macquarie Media and youth website Pedestrian TV.

More recently, telco operators have made a play for sports in an effort to win over mobile subscribers. “They get subscribers, they get the opportunity to stream, to pay for view. It’s a revenue stream for (telcos),” Mr O’Brien said.

But what a sport gains from a deal with telecoms carriers, beyond more revenue in the short-term, is less clear.

“(Television’s) key is larger audience, larger live audience in particular, which is the key to code popularity, publicity, attendance, sponsorship and audience,” media analyst Steve Allen said.

“Arguably (telcos get) a younger audience and profile, have a direct link to consumers, greater flexibility of delivery, and there is possibly more money, as it is a retention and business revenue building model for telcos.”

Mr O’Brien said it non-tangible extras came with a sports broadcast deal.

Seven West Media plans to exploit its broadcast of the Olympic Games in Tokyo next year by integrating the event with other programs like its breakfast TV show Sunrise and building out its coverage on its streaming service 7Plus.

News Corp Australia also plans to leverage its newspaper assets for the Olympics, sending photographers and reporters from both Fox Sports and its mastheads.

Additional reporting: Zoe Samios