Sports TV rights review to put streaming services under microscope

The future of sports broadcasting in Australia is under review, with laws that keep major events on free to air TV likely to be expanded to capture streaming giants such as Kayo, Stan and Amazon Prime.

Communications Minister Michelle Rowland promised before the election to review the anti-siphoning laws, which give free to air TV stations such Seven, Ten and Nine (the owner of this masthead) first option to buy the broadcast rights for major sporting events including the AFL and NRL, the summer and winter Olympics, Ashes cricket and World Cup football.

Communications Minister Michelle Rowland has begun consultations on Australia’s anti-siphoning laws, which keep culturally significant sports on free to air TV.Credit:Getty Images

The current anti-siphoning list is due to expire in April 2023. The sports industry, clubs and Australians have until December 6 to make submissions to the inquiry into the future of sport on TV.

The review could lead to the list of sports offered to free to air stations before some paid services being tweaked or expanded, and is likely to put streaming services into the same category as pay TV network Foxtel.

Unlike Foxtel, streaming services such as Paramount Plus and Stan (owned by Nine) are not covered by the anti-siphoning legislation, which came into force in 1994 before they existed. Seven West Media boss James Warburton recently called for legal changes to make the laws fit for purpose.

Rowland said every Australian “deserved the chance to enjoy live and free coverage of events of national significance, regardless of where they live or what they earn”.

“The televising of key sports competitions helps to create shared experiences, foster a collective Australian identity, and contributes to grassroots community-based sports participation,” she said.

“Subscription-based services make a valuable contribution to Australia’s media market and consumer choice, but not everyone can afford to pay for sport.”

Sports law expert Simon Merritt, a senior associate at law firm Lander & Rogers, said he did not expect huge changes to the list of events covered on the anti-siphoning list.

“Really it’s how they deal with streaming services, whether they are lumped in with Foxtel where they get second bite at the cherry [for sports broadcast rights],” he said.

Merritt said because streaming services were not subject to the current laws, it was possible for them to purchase the rights to sporting competitions without free to air networks having had a chance to bid first.

“If the law changed, the competition would need to offer those rights to free to air first. Only then could the subscription service make a bid,” he said.

Rowland made an unusual intervention during the final stages of the AFL’s recently negotiated TV rights deal, warning that more AFL games should not be put behind a paywall on a subscription service.

The AFL TV rights are currently shared by Seven, Foxtel and its streaming platform, Kayo, but both Paramount and Amazon had expressed interest in being part of the AFL rights deal post-2024.

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