Broadcast options for Australian Rugby

[Strewthcobber]

Is it just the Nine execs trying to flop their balls on the table and twist the deal a bit? Or do we think it's simply a tactic to ensure Stan Sports subscriptions increase by 2% because it'll all be behind a paywall with no exceptions?

Subscribers are worth far more to Nine than someone watching a game on Gem. Like 10x or 20x more.

So a 2% increase in subscribers means 20% to 40% more revenue.

Nine/Stan want as many subscribers locked away, paying every month, as they can.

 

[Sir Arthur Higgins]

Surely we have reached a point where one game a week on FTA isn’t making a difference. Like how many is that really reaching.

the Stan offering is bloody good if you like rugby and if you are neutral they still have a ton

 

[Slim 293]

Subscribers are worth far more to Nine than someone watching a game on Gem. Like 10x or 20x more.

So a 2% increase in subscribers means 20% to 40% more revenue.

Nine/Stan want as many subscribers locked away, paying every month, as they can.

On top of this, if it’s not drawing significant advertising revenue then it’s probably more cost effective for Nine to pull out something from their movie library to show on Gem…

 

[Strewthcobber]

Surely we have reached a point where one game a week on FTA isn’t making a difference. Like how many is that really reaching.

the Stan offering is bloody good if you like rugby and if you are neutral they still have a ton

From the reports today, it sounds like they will probably still be showing some rugby in Gem, they probably just don't want to be contractually obligated to show rugby in Gem every week.

 

[LeCheese]

Yeah it seems pretty clear that 9 wanted the option to show the big drawcards (or even smaller ones, if they needed some content to fill out the Gem program), but not be obligated to do so.

I have no problem with that - the ball is in Super's court. Make a product that 9 want to distribute as much as they can.

 

[Sword of Justice]

No mention of a national third tier comp in the deal reporting that I have seen (correct me if I’m wrong) and this was a promise of Waugh’s last year.

The optimist in me hopes that this means it could be a livestream product on socials, especially tik tok and instagram but the realist in me suggests it’s just not going to happen.

 

[PhilClinton]

They are probably worried about viewer fatigue and putting out an inferior product which will just cost money for no return again.

This season has seen the strongest push in the media that SRP (Super Rugby Pacific) is actually good and making headway in terms of becoming a competition that fans want to watch. RA may not want to dilute that.

 

[Sword of Justice]

I think the no return piece is the most critical here. The return would be a better prepared and more competitive playing base from which to springboard semi-pro players into Super players and above.

Obviously there is no financial return, you’re right. It would be loss making. We are about to come into some money though.

 

[JRugby2]

No mention of a national third tier comp in the deal reporting that I have seen (correct me if I’m wrong) and this was a promise of Waugh’s last year.

The optimist in me hopes that this means it could be a livestream product on socials, especially tik tok and instagram but the realist in me suggests it’s just not going to happen.

I know grief is complex but 12:49am is a ridiculous time to be contemplating what next after the death of the NRC 5 years ago

 

[Sword of Justice]

I know grief is complex but 12:49am is a ridiculous time to be contemplating what next after the death of the NRC 5 years ago

Haha I’m actually on the road so only just got caught up.

 

[The Ghost of Raelene]

No mention of a national third tier comp in the deal reporting that I have seen (correct me if I’m wrong) and this was a promise of Waugh’s last year.

The optimist in me hopes that this means it could be a livestream product on socials, especially tik tok and instagram but the realist in me suggests it’s just not going to happen.

Good. It's a nice to have but we shouldn't divert any resources to just make it happen right now. I'm ok with leaders pivoting from comments and plans if it's for the best. Rugby has had enough stubborn egotistical BS for long enough.

 

[Adam84]

Subscribers are worth far more to Nine than someone watching a game on Gem. Like 10x or 20x more.

So a 2% increase in subscribers means 20% to 40% more revenue.

Nine/Stan want as many subscribers locked away, paying every month, as they can.

This is a false economy, it may create a slight bump(2% is debatable) when it goes behind a paywall, however, annual annual subscriber churn of SVOD services and Stan in particular is above 10%, this slight bump can be easily reversed within months.

You need a hook to generate a 2% increase in subscribers, that's where a bit of FTA exposure is good, the inverse argument to this Is giving up one game a week to FTA may generate more growth/interest in Stan Sport/Rugby then locking it behind a paywall.

 

[JRugby2]

This is a false economy, it may create a slight bump(2% is debatable) when it goes behind a paywall, however, annual annual subscriber churn of SVOD services and Stan in particular is above 10%, this slight bump can be easily reversed within months.

You need a hook to generate a 2% increase in subscribers, that's where a bit of FTA exposure is good, the inverse argument to this Is giving up one game a week to FTA may generate more growth/interest in Stan Sport/Rugby then locking it behind a paywall.

International Rugby would do a better job of doing this than SRP (Super Rugby Pacific) - and they get advertiser dollars for it too.

 

[Adam84]

International Rugby would do a better job of doing this than SRP (Super Rugby Pacific) (Super Rugby Pacific) - and they get advertiser dollars for it too.

too a degree, for those interested in watching the Wallabies; anti-siphoning laws and time zones negate the value of this somewhat though.

It's another reason why something like the Bledisloe - ANZAC Day fixture was a good option. It creates a surge/hook in interest during the Super Rugby season and not simply for 8 weeks of time zone friendly internationals in Jul or Sep where 75% the wallabies matches are FTA anyway.

 

[JRugby2]

too a degree, for those interested in watching the Wallabies; anti-siphoning laws and time zones negate the value of this somewhat though.

It's another reason why something like the Bledisloe - ANZAC Day fixture was a good option. It creates a surge/hook in interest during the Super Rugby season and not simply for 8 weeks of time zone friendly internationals in Jul or Sep where 75% the wallabies matches are FTA anyway.

Yeah sure but we still have 6-7 tests a year in our time zone, then also the free-air of November when all the other codes have finished, Test cricket hasn't started so (provided we do well) we get a lot of coverage that would engage the casual fan we're trying to convert, even if they aren't watching games at 2am

I definitely agree that more FTA games is beneficial for exposure. My guess is that they looked at the data and saw that having that in the contract last time didn't really move the dial as much as they hoped, and that they'd be better off having the cash to increase the games profile in other ways (most likely throwing cash at good players and hoping we win something).

 

[Adam84]

Yeah sure but we still have 6-7 tests a year in our time zone, then also the free-air of November when all the other codes have finished, Test cricket hasn't started so (provided we do well) we get a lot of coverage that would engage the casual fan we're trying to convert, even if they aren't watching games at 2am

I definitely agree that more FTA games is beneficial for exposure. My guess is that they looked at the data and saw that having that in the contract last time didn't really move the dial as much as they hoped, and that they'd be better off having the cash to increase the games profile in other ways (most likely throwing cash at good players and hoping we win something).

November/Autummn Series aren't on FTA

Second point to this is though, why would the casual fan sign up to Stan Sport during the July test window or TRC when the Wallabies matches in a friendly timezone are already broadcast FTA? SVOD churn rates mean people aren't signing up in July and sticking around until Feb for Super Rugby to start.

 

[JRugby2]

November/Autummn Series aren't on FTA

Second point to this is though, why would the casual fan sign up to Stan Sport during the July test window or TRC when the Wallabies matches in a friendly timezone are already broadcast FTA? SVOD churn rates mean people aren't signing up in July and sticking around until Feb for Super Rugby to start.

Mentioned this in the context of the free-air as in no other football happening, meaning we get more coverage and attention in this window which would contribute to engaging the casual fan.

 

[Adam84]

Yeah dunno, been on the other side of that world where Australian media engagements are rare and matches are locked behind a paywall at unfriendly times isn’t exactly the best hook for encouraging subscribers.. Id be surprised if Stan Sport were experiencing a surge in subscribers during this period

 

[JRugby2]

Yeah dunno, been on the other side of that world where Australian media engagements are rare and matches are locked behind a paywall at unfriendly times isn’t exactly the best hook for encouraging subscribers.. Id be surprised if Stan Sport were experiencing a surge in subscribers during this period

As a direct attribution, probably not. But rugby did see a lot of coverage last ANS with the success of the team + nothing else to fill backpages so it would have helped.

Also remember this is a part of the wider context of what's better: 1 FTA game a week that's not really advertised and subsequently not a lot of people tune in for VS cash in the bank. I just don't think the one game a week moved the dial enough, and we other ways to achieve what that game was supposed to.

 

[Braveheart81]

Second point to this is though, why would the casual fan sign up to Stan Sport during the July test window or TRC when the Wallabies matches in a friendly timezone are already broadcast FTA? SVOD churn rates mean people aren't signing up in July and sticking around until Feb for Super Rugby to start.

Surely we have to treat this as a Stan problem and not a Rugby Australia problem.

Rugby Australia shouldn't be sacrificing revenue because we view it as some sort of loss leader to attract more subscribers to Stan. If sacrificing revenue by having one Super Rugby game a week on FTA provided clear upside elsewhere for RA then it should be considered but it seems pretty clear that it doesn't.

Nine/Stan are paying for the broadcast deal. They are motivated to get the best value out of that they can.

There's nothing stopping Nine putting a game on FTA each week. If they consider that worthwhile to drive more subscribers to Stan then I'm sure they'll do it.