Stan will begin streaming the English Premier League from August following a complex rights arrangement with Optus that will see the telecommunications provider continue to subsidise a significant portion of the league’s broadcast cost, despite no longer holding the rights.
As the Australian Financial Review reports, Nine Entertainment, which owns Stan, is expected to pay around $60 million annually for the rights over the next three years.
At the same time, Optus will reportedly contribute $40 million per year under the terms of the transition, according to two sources familiar with the matter.
This marks a major change in Australia’s sports streaming market and signals the wind-down of Optus Sport, which entered the space in 2016 and quickly became a key player after securing the Premier League away from Foxtel.
Optus exits, Stan expands
Optus began looking for buyers for its sports rights portfolio in 2023, as part of a broader strategy to refocus on its core telecommunications business.
Stan, which already holds rights to Roland Garros, Wimbledon, the UEFA Champions League and Super Rugby, is now expanding its football catalogue.
The new deal will see Stan Sport stream not only the Premier League but also the FA Cup, South Korea’s K League, and Japan’s J League.
However, the future of the Women’s Super League (WSL), previously broadcast by Optus, remains unclear.
That contract expired at the end of this season, and industry executives are currently seeking a new broadcaster.
It is also yet to be confirmed whether Stan will pursue rights for the upcoming UEFA European Women’s Championship, which begins in early July.
Commercial outlook and operational shift
No staff are expected to move from Optus to Nine as part of the handover. According to individuals briefed on the arrangement.
Nine is considered well-positioned to absorb the rights due to its existing infrastructure and production capabilities.
Nine has made significant investments in live sport as part of its strategy to retain audiences across its free-to-air and subscription platforms.
However, its ability to continue spending on premium rights may be tested by broader financial pressures.
The company recently announced $100 million in cost reductions amid a soft advertising market. While revenue for the six months to December rose 2 percent to $1.4 billion, expenses increased 3 percent over the same period.
These cost pressures come as competition from digital platforms such as YouTube, Netflix, and Amazon continues to erode free-to-air TV advertising.
Stan Sport boss, Ben Kimber
Key strategic moves
In an interview with Mediaweek back in February, Stan Sport boss, Ben Kimber, said that a key part of the streaming company’s evolving strategy is its strategic partnership with Nine Entertainment.
“It’s an absolute partnership with nine. We’re a part of the same business. It’s actually an absolute strength,” he said.
According to Kimber, this partnership not only expands Stan Sport’s reach but also reinforces a unified approach to content distribution and ad sales, providing a robust framework for both current and future advertising opportunities.
Subscriber targets and future considerations
Stan Sport currently requires a $27 minimum monthly subscription. Based on that figure, it would need approximately 185,000 new subscribers to break even on the Premier League component of the deal alone, excluding production and operational costs.
Details regarding Stan’s future local programming, and whether it plans to match Optus Sport’s investment in match data and advanced analytics, remain unclear. A formal announcement is expected within days.
