Telstra to quit NRL, AFL streaming apps in sports strategy shift

Telstra will discontinue its AFL and NRL streaming apps and offer its customers access to Foxtel’s Kayo Sports at a discounted price in major pivot of its media strategy.

The telco giant and Foxtel announced on Tuesday that they had entered a new agreement which will see Kayo replace Telstra’s AFL and NRL apps, which means the telco is withdrawing from bidding for sports content rights. The announcement was flagged in The Sydney Morning Herald last week.

Andy Penn said Kayo Sports would effectively replace Telstra Live Pass.
Andy Penn said Kayo Sports would effectively replace Telstra Live Pass.Credit: Supplied

Telstra owns 35 per cent of Foxtel. Rupert Murdoch’s News Corp owns a controlling 65 per cent stake.

Telstra chief executive Andy Penn said the deal would allow customers to choose from more sports.

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“What we’re going to be able to bring to the telstra customers is not only live streaming of AFL and NRL but more than 50 sports. Importantly, they will be able to watch it not only on their mobile device, but across all platforms,” Mr Penn said.

Telstra’s applications for netball and A-League will continue to operate but are expected to be removed in favour of Kayo should Foxtel win the broadcast rights.

Foxtel Group boss Patrick Delany said the discounted prices for Telstra customers would not affect revenue targets for Kayo Sports. Telstra customers already using Live Pass will receive a basic subscription to Kayo for $5 in the first 12 months while other Telstra customers can access the Kayo app for $15 a month for the next year. Kayo’s basic package is valued at $25 a per month.

“We have a great long-term relationship with Telstra and as our companies’ strategies evolve, we are finding new ways to work together,” Mr Delany said.

The announcement by Foxtel and Telstra comes ahead of the official launch of rival sports streaming service, Stan Sport. Stan is owned by Nine Entertainment Co, which is the publisher of this masthead.

Foxtel announced the launch of a “freemium” model for Kayo last week .

More to come

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Source: Thanks smh.com