Sports SVOD – Can Foxtel deliver a KO?

Of all the video content genres, sport has the best reputation for delivering audience reach and a large number of viewers for traditional TV operators.

But the rise of Sports SVOD and OTT platforms is threatening to undermine the established order.

Foxtel has launched its standalone sports streaming service – Kayo Sports and signed up 100,000 subscribers within the first 3 months of launch.

Sports package pricing

Of all the video content genres, sports has the best reputation for delivering audience reach and large number of viewers for both broadcasters and Pay TV operators. But as sport’s appeal has increased over time, so has the value of and the competition for sports rights. Traditionally, sports has been bundled with other content and marked up as part of a larger Pay TV subscription making it in some cases prohibitively expensive for a many viewers who have no choice but to accept these high prices due to the inflexibility of choosing the content and paying for what they want.

In the last few years, new platforms and technological opportunities are emerging that threaten to undermine the established order—though it won’t come easy. In response, Foxtel the largest Pay-TV operator in Australia has launched its standalone sports streaming service – Kayo Sports. In this report, we look at evolving market of live sports, rising costs of sports rights, changing customer preferences, and whether Foxtel has made the right move with the launch of Kayo Sports.

“This article is an extract of a report published by our sister company Venture Insights. To enquire about becoming a subscriber, please contact Nigel Pugh.”