Optus won the rights for the next English Premier League season over Foxtel in November last year. Now details are emerging about what it plans to do with them.
Today, the AFR claims Optus will offer a direct-to-consumer subscription services where users can pay for live and on-demand matches to be viewed on all your devices. The service will be available to everyone, but Optus customers would receive a discount.
But it looks like Optus has a fair bit of work to do before August, with the telco reportedly having trouble developing apps in-house for the service as well as working out how to effectively monetise the rights.
One of the biggest problems Optus is having with money is the lucrative pub and club market, where most establishments already subscribe to Foxtel and pay a hefty premium above regular customers to do so. For it to be successful there, Optus would need to work with Foxtel.
The other problem is just the sheer number of new customers Optus would need to sign up for the deal to break even. Analysts are predicting that Optus would need to add nearly 80,000 customers with each of those paying an average of $80 a month for Optus services to break even.
Telstra is not believed to come anywhere near 80,000 subscribers for its NRL and AFL mobile rights, however they’re competing with TV rights holders for viewership too, which Optus won’t be.
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