Sports streaming wars erupt as Disney+ gets serious

Bringing live sports together with Disney+’s existing library of movie franchises such as Star Wars and the Marvel Cinematic Universe, alongside new award-winning programs Shogun, The Bear and others is an “innovative game changer”, the company’s local boss, Kylie Watson-Wheeler, said.

Last week, the NFL announced a regular season game will be hosted at the MCG in Melbourne in 2026, while an NBA exhibition match will also be held later this year, highlighting the growing popularity of these sports in the Australian market.

Disney+ has an estimated 3.1 million paying subscribers in Australia, per research firm Telsyte, around double that of Kayo. Amazon Prime Video, which is so far the biggest entrant into live sports, has around 4.8 million, while Netflix, which has begun moving into event-based live sports broadcasting has approximately 6.2 million subscribers in Australia.

Unlike other streamers moving into the sports game, Disney, through ESPN, has sports coverage all year round, 24 hours a day, the company’s chief executive Bob Iger told investors last week.

News Corp agreed to a sale of Foxtel to sports streamer DAZN in December. The sale is expected to be completed before the end of the financial year, taking the pay TV business, alongside streaming services Kayo and Binge, out of the hands of the Murdoch family.

DAZN has flagged its intention to leave the Foxtel business untouched for now. The UK-based streamer wants to turn its own direct-to-consumer app into the Netflix or Spotify of sports, but will need to spend a significant outlay to get there.

While the AFL and NRL remain the main game for Foxtel, the US codes, particularly the NBA and NFL, have proven particularly important during the off season for the winter leagues.

Foxtel shares the rights to broadcast the NRL with Nine, the owner of this masthead, which holds the free-to-air component. The league is preparing to begin negotiations for its next contract, beginning in 2027. Both will face a fight to renew their current deals, with the league’s commissioner expected to create a bidding war, with the inclusion of global streamers.

While News Corp did not report Foxtel subscriber figures in the final quarter of 2024 due to the sale process currently under way, it lost 16 per cent of its subscribers in the final quarter of 2023, after the AFL and NRL seasons came to an end.

Foxtel was approached for comment.

The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.