Streaming Dominates Australia's Sports Landscape: A Unique Perspective

Australia's broadcasting landscape has taken an unexpected turn, with streaming services emerging as the dominant players in the sports content arena. A recent report from Ampere Analysis delves into the factors that have contributed to this unique shift, shedding light on the country's evolving media landscape.

Unlocking the Potential of Sports Streaming in Australia

The Rise of Sports-Focused Streaming Services

Australia's streaming landscape is characterized by a significant investment in sports content, with local SVoD (Subscription Video on Demand) services dedicating a substantial portion of their overall expenditure to live sports. In 2023, these services allocated a remarkable 21% of their content budgets to sports, a stark contrast to the UK's 2.6% and Canada's 1.5%. Even in the US, the figure stood at a mere 4.3%. This trend reflects the unique dynamics at play in the Australian market, where streaming platforms have seized the opportunity to cater to the country's sports-loving population.

Acquiring International Sports Rights

Australian SVoD services have aggressively acquired the rights to a diverse range of foreign sports competitions, further solidifying their position in the market. Stan Sport, for instance, has secured the broadcasting rights for the UEFA Champions League, Europa League, and Conference League, as well as the prestigious Six Nations rugby tournament. Optus Sport, on the other hand, has secured the rights to the Premier League, J League, and Women's Super League, catering to the diverse interests of Australian sports enthusiasts.

Leveraging Time Zone Advantages

The time zone differences between Australia and other parts of the world have played a significant role in the success of sports streaming in the country. Out-of-market events, which may not be suitable for live or linear distribution in prime time, have found a natural home on streaming platforms. Australians can now conveniently access and consume these events through catch-up services, capitalizing on the flexibility and on-demand nature of streaming.

Appealing to a Diverse Audience

Australia's large migrant population has also contributed to the growing demand for international sports content. According to census data, 31% of the country's population was born overseas, with nearly one million people claiming to have been born in England, accounting for 3.6% of the population. Streaming services have recognized the opportunity to cater to this diverse audience, offering a wide range of international sports content to meet their preferences.

International Streamers Joining the Fray

The Australian sports streaming landscape is not limited to local services; international players have also joined the fray. Paramount+ has secured the rights to broadcast the A-League soccer until 2026, DAZN has acquired the rights to Matchroom Boxing events until 2026, and NFL Game Pass International has secured the rights until 2033. Additionally, Prime Video will stream the 2026 T20 World Cup and the 2027 ICC Cricket World Cup, further diversifying the sports content available to Australian viewers.

A Strong Streaming Market Fuels Sports Investments

The ability of streamers to invest heavily in sports rights can be attributed to the robust SVoD market in Australia. According to Ampere, Australia has the third-highest level of SVoD penetration globally, with an average of 3.2 OTT (Over-the-Top) subscriptions per OTT home, trailing only the US and Norway. This strong market demand has enabled streaming services to allocate significant resources to acquiring valuable sports rights.

Regulatory Landscape and the Rise of Streaming

The unique regulatory environment in Australia has also played a role in the rise of sports streaming. The country's pay-TV sector was prevented from operating until 1995 due to government regulation, which has led to a relatively weak pay-TV market. Additionally, strict anti-siphoning laws have guaranteed free-to-air (FTA) networks the first refusal for certain premium content, including various protected sporting events. This has strengthened the position of FTA broadcasters, creating an opportunity for streaming services to fill the void left by the pay-TV sector.

Adapting to the Changing Regulatory Framework

In 2024, the framework for the anti-siphoning regulations was adjusted to incorporate streaming services. While this change may have a limited impact on SVoD's short-term sports strategy, as these services are typically more heavily invested in out-of-market rights than protected events, it highlights the evolving regulatory landscape and the need for streaming platforms to adapt to the changing environment.As the Australian broadcasting landscape continues to evolve, the dominance of streaming services in the sports content arena is a testament to the unique dynamics at play in the country. The combination of a strong SVoD market, regulatory factors, and the ability to cater to diverse audience preferences has positioned Australia as a prime example of the transformative power of sports streaming.