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NRL to ditch digital arm

NRL scales back digital arm following broadcaster pressure​

By Zoe Samios

October 6, 2021 — 3.53pm

The National Rugby League has bowed to pressure from its media partners and decided to scale down its digital content arm in a move that is expected to result in several redundancies at the organisation.

The shift, led by the NRL’s recently appointed chief customer and digital officer Alexi Baker, is part of an ongoing effort to streamline operations at the NRL to save costs and better serve fans. But it will also be considered a win for the company’s two media partners - Nine Entertainment Co and News Corp Foxtel - which have long expressed frustration about the division and argue the NRL’s own website competes with their digital properties.

Staff at the NRL were informed about the change on Wednesday afternoon and about 10 redundancies are expected to take place over the next few weeks. Staff who appeared at the meeting, who spoke on the condition of anonymity, said they were not given the opportunity to ask questions.

Under the plans the NRL will move away from creating news-focused content and work more closely with Nine (which is the owner of this masthead) and News Corp-controlled Foxtel on joint projects. The NRL website will mainly feature highlights and short-form videos that entertain fans instead of breaking news. The NRL was approached for comment but did not respond by deadline.

The NRL Digital Network officially launched in 2018 after the organisation took control of its digital assets from Telstra, an arrangement formed under the terms of its $1 billion broadcasting rights deal with Nine and Foxtel. The deal was a significant change in strategy for the NRL and involved the clubs investing money in digital rather than outsourcing it to media partners.

The network is currently made up of five parts including NRL.com, and sites and apps for the competition’s 16 teams. As of last year, the digital unit employed about 80 staff, including a product and technology arm with designers, developers and engineers who ensure the digital products work for fans. It has a media services division which handles game archives and images taken at matches, digital marketing and social media, a data and insights team, and employs about eight journalists who cover matches and interview players and coaches.

This is the first major change for NRL digital division since the arrival of Ms Baker (who previously led negotiations at Nine), who has undertaken a review of the organisation’s media arm. In late August, the NRL notified high-profile ex players and coaches such as Jamie Soward, Brett Kimmorley, Anthony Seibold and Robbie Farah that the website would no longer feature panel shows.

The restructure comes as the NRL prepares to propose the Redcliffe Dolphins as the expansion team for 2023 after agreeing to a deal with News Corp to inject at least $75 million into the sport over five years. Sources with knowledge of discussions told the Herald earlier this week that the NRL is providing the News Corp-owned Brisbane Broncos will an increase in exclusive matches, which will ultimately reduce the number of free-to-air games.

The NRL is presenting to the 16 clubs on Thursday and will provide them with details on how they plan to finance a 17th team. Any savings generated by the NRL could help with the justification of a new team.

NRL scales back digital arm following broadcaster pressure (smh.com.au)
 

Perth Red

Post Whore
Messages
69,606
No one watches these shows, Yet it is some tragedy that they aren't going to be online next year.

The fact no one watches is likely the real reason they are being dropped
lol, its not about the shows, in fact they will probably stay! its about advertising reach, and what drives that is constant news stories being pumped out on social media platforms. That's whaty gets the clicks and redirections to the website, and what advertisers pay for. And that is the bit Vlandys is handing over.
 

Johnny88

Juniors
Messages
1,326
I watched inside the nrl but on youtube not nrl.com and breezed thru nrl teams on nrl.com. Liked the shows disapointing they are gone for 2022 but what can you do.
 

Iamback

Referee
Messages
20,332
lol, its not about the shows, in fact they will probably stay! its about advertising reach, and what drives that is constant news stories being pumped out on social media platforms. That's whaty gets the clicks and redirections to the website, and what advertisers pay for. And that is the bit Vlandys is handing over.
lol, its not about the shows, in fact they will probably stay! its about advertising reach, and what drives that is constant news stories being pumped out on social media platforms. That's whaty gets the clicks and redirections to the website, and what advertisers pay for. And that is the bit Vlandys is handing over.

If no watches the shows then what reach is there? There is a reason Sports broadcasting loses money
 

Perth Red

Post Whore
Messages
69,606
If no watches the shows then what reach is there? There is a reason Sports broadcasting loses money
Did you even read my post? Advertiser is are not paying for show audiences on nrl.com. The traffic comes from the media stories pumped out on social media. That drives traffic to the website where the advertisors are sitting.
No media stories, no traffic, no advertisers, no revenue.
 

colly

Juniors
Messages
1,067
When are they pulling the plug and going dark..........????
Headline: SMH
...NRL Scaling Back..... I will miss snotgrass and Family Man reporting. Oh well, if only Ten or (unlikely) Seven would bid we wouldn't be in this insidious position of quality reporters left to twiddle their thumbs. Their reporting efforts uniquely match their playing and coaching record.
 

LeagueXIII

First Grade
Messages
5,969
If no watches the shows then what reach is there? There is a reason Sports broadcasting loses money
The database is What is of value with News Corp going into sports betting big time this is what they value it drives it.

The NFL did similar deals earlier this year. To get an idea of where it is headed read this article. We are obviously smaller then the NFL but we generaly copy what they do

 

Iamback

Referee
Messages
20,332
lol, its not about the shows, in fact they will probably stay! its about advertising reach, and what drives that is constant news stories being pumped out on social media platforms. That's whaty gets the clicks and redirections to the website, and what advertisers pay for. And that is the bit Vlandys is handing over.

From the article the shows are being dumped but the rest of the site will be fine. So it is about the shows
 

LeagueXIII

First Grade
Messages
5,969
RL gives them market reac we are a very valuable game. When they launched Pay TV what sport did they seek?
They are building their streaming sevices and going into sports betting with Fox Bet what is a great tol to drive these?
Who says News wants it
 
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Perth Red

Post Whore
Messages
69,606
From the article the shows are being dumped but the rest of the site will be fine. So it is about the shows
Err no it clearly says it’s the breaking news section that’s going.

“The NRL website will mainly feature highlights and short-form videos that entertain fans instead of breaking news.”
 

The_Frog

First Grade
Messages
6,390
There is zero justification for this. They've killed a profitable and fastly growing asset that is the future of game delivery. Admin deserve all the 'news stooge' and worse heckles that they will get for this.


Worked for Nein for near a decade until May this year. What a gee up.

People won't pay a separate fee for every sport they want to watch. So you need providers. If they are paying extra for exclusive rights to archived games, then the NRL wins anyway. If they weren't paying extra, the NRL wouldn't do it.
 

Iamback

Referee
Messages
20,332
Err no it clearly says it’s the breaking news section that’s going.

“The NRL website will mainly feature highlights and short-form videos that entertain fans instead of breaking news.”

There will still be a website. It will link to one of other 10 sites that break the news
 

Perth Red

Post Whore
Messages
69,606
There will still be a website. It will link to one of other 10 sites that break the news
You dont get how this works do you? The nrl.com breaking news stories gets posted on social media and email to the 2 milllion subscribers which drives hundreds of thousands to the video clip or story on nrl.com, which is hosting the advertising and reaping the advertising dollars. Those stories will now drive people to ch9 or news ltd sites. Why do you think the nrl digital arm revenue has QUADRUPLED in just 4 years??
 

Chief_Chujo

First Grade
Messages
8,131
People won't pay a separate fee for every sport they want to watch. So you need providers. If they are paying extra for exclusive rights to archived games, then the NRL wins anyway. If they weren't paying extra, the NRL wouldn't do it.
It's not about going it alone, but being in a position to sell content in the future. It's very obvious why Nein/Fox have been pushing so hard for this. FTA/STV were control points for them due to limited licenses or the expense of setting up a network. But its old hat, streaming is already making huge inroads and will dominate within the decade. So they've had to take steps to protect their golden goose.

Amazon, Google, Disney are here, and they aren't interested in production. They just want content to feed their subs. Grant saw this years ago and its exactly why he set up the digital arm. So we could be in a position to sell to these big corps when the time came. But now we're killing(or curbing, its not clear to what extent yet) it and tying it into Nein and Fox. It's going to destroy our ability to go to market in five years time.
 

Perth Red

Post Whore
Messages
69,606
It's not about going it alone, but being in a position to sell content in the future. It's very obvious why Nein/Fox have been pushing so hard for this. FTA/STV were control points for them due to limited licenses or the expense of setting up a network. But its old hat, streaming is already making huge inroads and will dominate within the decade. So they've had to take steps to protect their golden goose.

Amazon, Google, Disney are here, and they aren't interested in production. They just want content to feed their subs. Grant saw this years ago and its exactly why he set up the digital arm. So we could be in a position to sell to these big corps when the time came. But now we're killing(or curbing, its not clear to what extent yet) it and tying it into Nein and Fox. It's going to destroy our ability to go to market in five years time.
You only have to look at the massive revenue nfl game pass now generates to see where the future is. Soon they will stop selling to most overseas networks and just sell content on game pass as it’s more lucrative.

1 million subscribers is what’s needed to f**k news ltd off forever!
 

T-Boon

Coach
Messages
15,855
My advice to people is to stop caring about this type of stuff. It only matters if you are holding out hope that the NRL might compete with and outdo the AFL. That is never going to happen.
 

Cactus

Juniors
Messages
731
My advice to people is to stop caring about this type of stuff. It only matters if you are holding out hope that the NRL might compete with and outdo the AFL. That is never going to happen.
People in this sport don't just stop caring or give up.
 
Messages
530
Is the digital arm merely NRL.com

If so, some questions to those with more knowledge (and to play devils advocate):

1. What cost has been spent and what revenue has been generated? Keen to understand the $1bn valuation

2. Does the AFL have a digital arm?

3. What realistic probability was it to have NRL produce and broadcast content in house? That would seem more expensive than nine / fox produce it on the basis that it's not a core competency of NRL.

As someone pointed out, if the upside of the digital arm was to sell content directly to the fans e.g. a season pass, I wonder what uptake that would be without any other sporting content. Personally, I love the NRL, but I also love my cricket, NFL, rugby, football and NBA. So kayo makes sense to me (just have to give up rugby). I wouldn't pay for a standalone NRL product unless it was cheap as chips (which may not be the case give the prima facie higher cost of production).
 

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