Telstra allows rivals to access digital NRL content
PUBLISHED: 1 HOUR 52 MINUTES AGO | UPDATE: 1 HOUR 49 MINUTES AGO
JOHN MCDULING
Telstra has agreed to let Optus and Vodafone subscribers watch rugby league matches on smartphones and tablets for a fee as it doubled its investment in NRL digital rights to more than $100 million.
The dominant telco will also establish a new media joint venture with the code to manage the production of additional content for NRL smartphone and tablet apps and websites.
The move to broadcast NRL matches “over the top” represents a significant shift from Telstra’s existing content policy and indirectly neutralises fears the telco giant’s stranglehold over exclusive sporting content could stifle competition in mobile and fixed-line telecommunications markets.
As foreshadowed by The Australian Financial Review this week, the Australian Rugby League Commission on Wednesday awarded Telstra exclusive rights to broadcast all NRL matches over smartphones and tablets for the next five seasons.
Telstra also renewed naming rights for the NRL premiership.
The financial size of the deal was not disclosed, but it was confirmed as double the previous arrangement, believed to be worth $15 million a season, implying a total value of as much as $150 million.
ARLC chairman John Grant confirmed that it was the rugby league governing body, and not Telstra, that pushed for customers of rival carriers to have access to matches on smartphones and tablets.
“Our fans are all sorts of people across Australia, we need to make sure we’ve got opportunities to get to all of our fans,” he told the AFR.
“What Telstra will do, and we will work with them, is deliver a rich experience to our fan base that runs across Telstra, understandably, that’s exactly what they should do. But we’ve got a broad base, which we need to get to.”
Optus and Vodafone subscribers will be able to download the NRL app and access matches for a fee, the proceeds of which will be split between Telstra and the NRL.
Foxtel subscribers can also get access to matches on tablets through the Foxtel Go app.
The arrangement is in contrast to last year’s $150 million deal for AFL digital rights, which limits access to Telstra subscribers.
“That is a big strategic decision, to make content available to any mobile user,” Telstra CEO David Thodey said.
“But we will continue to differentiate it on the Telstra network, obviously, and make it a richer experience, we hope. But people can still get access to that content, so the potential customer base is a lot higher.”
Rival telcos have warned that Telstra’s rights to exclusive sporting content could take over from its monopoly copper network as the new competition bottleneck, particularly in an environment where mobile access is bundled with fixed-line internet and pay TV.
Telstra has rigorously defended the value of its sporting rights, resorting to legal action to prevent customers of rival carriers from accessing its exclusive content.
In September, the NRL and AFL successfully forced Optus to shut down its controversial recording service, TV Now, which enabled users to record matches broadcast on free-to-air and play them back on mobile devices.
Mr Thodey said the Optus court case had “nothing to do with” the decision to open up NRL content to rival carriers.
He defended the increased spending on NRL rights. “We wouldn’t have signed the contract unless we were getting the value,” he said.
