The Australian media landscape is set to undergo a seismic shift with the announcement of Foxtel’s sale to UK-based sports streaming giant DAZN for $3.4 billion. This landmark deal not only brings an end to News Corp’s 30-year ownership of Foxtel but also paves the way for intensified competition in the global sports streaming arena.
With this acquisition, DAZN strengthens its position as a heavyweight in sports and entertainment, while Foxtel gains access to global resources to fuel its digital transformation. Here’s an insider look at what this strategic business decision means for stakeholders, subscribers, and the broader industry.
The End of an Era for Foxtel
Foxtel, a household name in Australian media since its launch in 1995, has for decades been synonymous with premium sports broadcast and entertainment. Transformed in recent years into a digital powerhouse through its streaming services Kayo and BINGE, Foxtel now boasts 4.7 million subscribers, including 1.6 million on Kayo and 1.55 million on BINGE.
However, as the streaming industry continues to evolve, the growing competition from global giants like Netflix, Disney+, and Amazon Prime has posed challenges for traditional broadcasters. The sale to DAZN offers a lifeline of innovation and investment to keep Foxtel competitive in this rapidly changing landscape.
Telstra, Foxtel’s junior ownership partner, is also parting with its 35% stake in the process. News Corp and Telstra will retain minority stakes in DAZN—6% and 3% respectively—demonstrating an ongoing interest in the new chapter for Foxtel under DAZN’s leadership.
Strategic Benefits of the Sale
The acquisition represents a win-win scenario for both parties. For DAZN, adding Foxtel to its portfolio extends the streamer’s reach into a lucrative market with a voracious appetite for sports content. DAZN’s extensive catalogue, which already includes rights to the NFL, UEFA Women’s Champions League, Serie A, Bundesliga, and La Liga, will now complement Foxtel’s strong focus on Australian sports, including the AFL, NRL, cricket, Supercars, and Formula 1.
From a financial perspective, Foxtel will use proceeds from the deal to repay a $578 million loan to News Corp and a smaller loan to Telstra. The repayment not only clears Foxtel’s financial slate but also gives the broadcaster a robust foundation for future growth under new ownership.
What This Means for Australian Sports
Foxtel has invested billions in securing broadcast rights for Australian sports over the years, including a $4.5 billion AFL broadcast deal that runs till the end of 2031 and the current NRL rights agreement through 2027. The synergy between DAZN’s global sporting expertise and Foxtel’s established local relationships promises an unprecedented fan experience.
DAZN’s Chief Executive Officer Shay Segev emphasised the strategic opportunity, stating, “Australians watch more sport than any other country in the world, which makes this deal an incredibly exciting opportunity for DAZN to enter a key market. We are committed to supporting and investing in Foxtel’s television and streaming services, delivering superior sports and entertainment content to customers.”
DAZN’s global reach may also open doors for Australian sports to gain a wider international audience, potentially increasing visibility and revenue opportunities for local leagues and teams.
Foxtel’s Continued Local Presence
Despite its acquisition, Foxtel remains committed to preserving its distinctive Australian identity. CEO Patrick Delany assured subscribers, “We will remain a proudly Australian-based business with local character, local management, and local sports and entertainment production.”
This assurance will likely calm concerns about significant changes to the Foxtel experience. Subscribers can expect business as usual in terms of their favourite programming, but with added potential for content enhancements through DAZN’s cutting-edge technology.
Additionally, Sky News Australia, which has been a staple of the Foxtel offering, will remain under the ownership of News Corp and will continue its operations as usual.
Foxtel and DAZN’s Growing Global Clout
From DAZN’s perspective, acquiring Foxtel significantly bolsters its competitive stance against global giants like Apple, Netflix, and ESPN. DAZN doesn’t just want to participate in the sports streaming battle—it aims to lead. The company recently demonstrated its ambition by paying a staggering $1 billion for exclusive global rights to FIFA’s revamped Club World Cup.
Similarly, Foxtel’s inclusion in DAZN creates added value for the latter’s shareholders. Foxtel’s subscription base offers DAZN an immediate entry point into the Australian market, while its local expertise provides a strategic edge.
The Future of Foxtel Under DAZN
The sale is expected to be completed in the second half of fiscal 2025. Between now and then, DAZN and Foxtel’s leadership teams will work closely to orchestrate a seamless transition. While changes to customer-facing operations are likely to be incremental at first, industry experts expect long-term agility and innovation to come into play—particularly in areas like immersive sports viewing and personalised content offerings.
Foxtel’s sale to DAZN marks a watershed moment for Australian and global sports broadcasting. By combining local expertise with international reach, this acquisition sets the stage for a new era in sports and entertainment streaming. It signals not just a shift in ownership but a broader transformation poised to redefine how Australians—and the world—consume media.
With DAZN’s deep pockets and global focus, and Foxtel’s loyal subscriber base and local relationships, the partnership looks set to deliver exciting opportunities for fans, broadcasters, and stakeholders alike. All eyes now turn to 2025 for the roll-out of this ambitious plan.
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