I think the boat has sailed on almost every competition with regards to free to air, both the NRL and AFL at most have one more big payday through them. The future is digital, how that is going to look, who knows????? No sports brand has really figured it out yet, so if Rugby could be that Sport then the sky is the limit.
I work in the Media and Advertising spectrum, viewership is down everywhere, kids just aren't watching cartoons like they used to on TV, they are more interested in YouTube, etc. The information we receive is telling us that they now spend more time on their phone than they do watching TV.
The problem with Free to Air TV in the short term is that the companies just aren't interested, the main facet to this is the lack of content on at profitable times. You don't pay big dollars for content on at 3am, it's why we don't get international cricket tours on free to air anymore, no EPL on free to air and tennis majors moving to Cable (where they at least can get a niche audience willing to pay a premium).
I personally believe if you had a 1-5yr plan, the best method would be to have dual showings (both Pay TV and FTA) on domestic games live on TV in their own region. What i mean by this is that every Reds game is broadcast live simulcast into QLD and QLD only, NSW to NSW and NSW only etc. etc. The AFL does this with great effect into NSW and QLD. The payoff for this with Pay TV is that it helps build familiarity with the competition when fans want to engage with the other matches and they therefore pay for a subscription because they want to watch the other matches, the clubs also help increase crowds as they are more accessible to fans. While also ramping up the digital spectrum and providing the slickest digital experience available for consumers, the AFL does this amazingly, perhaps providing a game a week via FB or Twitter
Advertising dollars, therefore TV contracts signed by the leagues is determined by 2 things, 1) reach and 2) frequency and then 3) the quality of the content is considered. What our TV companies would be prepared to invest in is something that provides more content (2), more rivalry (3) and more importantly at profitable times (1), we all know what that is, but unfortunately NZ just isn't interested atm.