If the NBA and NFL move to Disney+, where does it leave Foxtel?

ESPN chairman Jimmy Pitaro has outlined a “parallel paths” strategy publicly, balancing introducing disruptive direct-to-consumer products, while also maintaining relations with legacy pay TV avenues, such as Foxtel locally.

“We see declines month after month, year after year, and you get to some point where you have to disrupt yourself, and that’s where we are right now,” Pitaro said last month of broadcast audiences.

While ESPN launches its own direct-to-consumer strategy, Foxtel’s new owner DAZN is building a direct competitor as it attempts to become the global home of sports streaming.

The finer details of HBO Max’s launch, tipped to happen on April 11, has not yet been set out by the company; however, it forms part of a global roll-out for its owners Warner Bros. Discovery (WBD), one of the world’s largest media companies.

WBD owns US studio HBO. Shows like The White Lotus, Succession and House of the Dragon have proved pivotal in building Foxtel’s Binge streaming service.

Foxtel signalled its own shift in strategy for Binge in October, introducing some live sport onto the platform.

And for Foxtel’s Kayo, the top US sporting codes have been pivotal in building a subscriber base alongside the local winter codes as well as cricket and motorsports.

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They remain particularly important over the summer months during the AFL and NRL off season. The December quarter has typically been the toughest for Kayo since its 2019 launch. Kayo lost 16 per cent of its subscribers following the end of the NRL and AFL seasons in 2023, and for the first time this summer, all five cricket Test matches were available to stream for free on Seven’s digital platform 7Plus. News Corp will deliver its next earnings in early February.

Major streaming firms like Disney, Amazon and Netflix are currently pushing to broadcast more live sport. This week, Disney purchased a 70 per cent stake in Fubo, a US sports streaming platform whose legal challenge has blocked a sports streaming co-venture Venu between Disney, Fox and WBD.

ESPN’s multi-billion dollar contract with the UFC is also up for renewal this year. There is talk of a 10-year deal in the works. Foxtel is also the current pay-per-view rights holder for UFC on top of its ESPN content.

Both the NBA and NFL offer their own subscription services where users can view every game. While the NBA is its own distributor, NFL Game Pass is available outside of America via DAZN, Foxtel’s soon to be owners.

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