Optus Supports Premier League Deal Despite Withdrawing from Sports

Stan plans to begin streaming the Premier League in August following a new multimillion-dollar agreement with Optus. The deal transfers broadcasting rights to Stan but leaves Optus covering a significant part of the cost. This strategy is intended to strengthen Stan's sports content and grow its subscriber base, although Optus may face financial pressure as it continues to pay $40 million each year without holding the licence.

The change comes as Optus moves away from live sports broadcasting to refocus on its core telecommunications services. Optus Sport launched in 2016 after acquiring Premier League rights and quickly became a key player in Australian sports streaming. However, rising costs and growing competition have forced a shift in priorities.

Under the new arrangement, Stan, which is owned by Nine Entertainment, will contribute about $60 million annually for the next three years. At the same time, Optus will still pay $40 million each year despite no longer having exclusive rights. In effect, Optus is subsidising Nine's entry into elite football streaming. This allows Nine to expand Stan’s sports lineup to include the Premier League, FA Cup, J League and K League.

The deal marks the end of Optus Sport, which was once a major driver of subscriptions. It also raises the stakes for Nine, which must sign up around 185,000 additional Stan Sport subscribers just to cover its Premier League costs. This effort comes as the company cuts $100 million from other areas due to rising expenses and a decline in the advertising market.

This agreement also highlights the increasing challenge that Australian streaming platforms face as they try to compete with global companies aggressively bidding for sports content. Optus’s decision to offload its rights follows reported losses of tens of millions under its current six-year Premier League deal, signed in 2021 and valued at around $100 million per year.

Subscriber numbers for Optus Sport have also dropped, falling from over one million at their peak to 700,000 last year. This decline led to price increases and a new strategic focus. With Stan now adding football to its existing tennis and rugby content, competition for sports subscribers is expected to grow, although it remains unclear how the audience will respond.

Source: Australian Financial Review, The Australian, Capital Brief