The recent announcement of DAZN’s acquisition of Foxtel marks a pivotal moment in Australia’s media and sports landscape.
Often referred to as the “Netflix of sports” DAZN is a global over-the-top (OTT) streaming service that has redefined how audiences consume live and on-demand sports content. This deal signals a profound shift in the dynamics of Australian broadcasting and brings to light the ups and downs of Foxtel’s storied history, which I have been reporting over the last 30 years.
The rise of DAZNFounded in 2015 and headquartered in London, DAZN’s mission has been to democratise access to sports through a subscription-based, digital-first model.
Backed by Sir Len Blavatnik, one of the world’s richest individuals and the founder of Access Industries, DAZN has become a force to be reckoned with in global sports broadcasting. Its reach extends to over 200 countries, including key markets like Japan, Germany, Italy, Spain and Canada, and it boasts significant broadcasting rights for major sports like football, boxing, and motor racing. DAZN has leveraged cutting-edge technology to offer seamless streaming experiences, positioning itself as a disruptor to traditional pay-TV models.
Blavatnik’s influence cannot be overstated. As the driving force behind Access Industries, he has provided DAZN with the financial resources and strategic vision needed to secure high-value sports rights and expand globally. The acquisition of Foxtel aligns perfectly with his ambition to make DAZN the dominant player in the global sports streaming market.
Globally, DAZN operates under its own brand name and offers tailored services in different regions. For example, DAZN 1 and DAZN LaLiga cater to audiences in Germany and Spain, respectively, while dedicated channels like DAZN F1 and DAZN Women’s Football address niche markets. These efforts underscore DAZN’s commitment to localising its offerings to meet diverse consumer needs.
DAZN’s pricing strategy is a key differentiator. Unlike many traditional broadcasters, DAZN positions itself as a competitively priced brand, aiming to make premium sports content accessible to a broader audience.
Subscription rates vary by region, reflecting factors such as competition, content offerings, and local economic conditions. In some markets, DAZN’s pricing significantly undercuts rivals, while in others, it aligns with higher-value offerings where exclusive rights are involved.
This competitive pricing model raises intriguing possibilities for Australia, especially when compared to Foxtel’s current charges. Foxtel’s traditional premium pricing model has long been a point of contention, particularly in an era dominated by more affordable streaming alternatives.
DAZN’s entry into the Australian market, potentially offering competitive or lower rates, could dramatically shift consumer expectations and reshape the pricing landscape. If DAZN incorporates Foxtel’s sports and entertainment assets under its overall pricing strategy, it may appeal to a broader audience while challenging long-standing perceptions of pay TV as a high-cost option.
Having analysed Foxtel over the years, I’ve seen its journey as a microcosm of the broader media transformation in Australia. Launched as a pay-TV service in the 1990s, it initially thrived as the go-to platform for premium entertainment and live sports. Foxtel became synonymous with exclusivity and quality, especially in its sports offerings, which were unrivalled for much of its early life.
However, the rise of streaming giants like Netflix and Stan, combined with the advent of digital disruption, posed significant challenges for Foxtel. Its premium pricing model, once a strength, became a liability in an era of affordable, on-demand content. Subscriber numbers faltered and critics questioned its ability to adapt.
In response, Foxtel embarked on a digital transformation, launching streaming services such as Kayo Sports for live sports and Binge for entertainment. These initiatives helped Foxtel retain a strong foothold in the market, particularly among sports enthusiasts. Yet, its legacy as a traditional broadcaster often hindered its ability to compete nimbly with agile streaming-first competitors.
Unlike Foxtel, DAZN focuses almost exclusively on sports content under its global brand. While Foxtel’s offerings include a wide array of entertainment options such as movies and television series, DAZN has not traditionally ventured into non-sports entertainment. This distinction reflects a strategic decision by DAZN to specialise in what it does best — though its integration of Foxtel’s assets could lead to some diversification.
DAZN’s acquisition of Foxtel represents a marriage of Foxtel’s established presence and DAZN’s global expertise in sports streaming. This deal – valued at an enterprise worth of $3.4 billion – brings Foxtel’s 4.7 million subscribers into DAZN’s ecosystem, significantly boosting the latter’s reach and revenues.
From my perspective, this is a game-changer for Australian media. DAZN’s technology and innovation promise to enhance the viewing experience, while its global network could provide new opportunities to showcase Australian sports on the world stage. Shay Segev, DAZN’s CEO, has emphasised a commitment to promoting under-represented sports and exporting Australian sports content to international markets—a vision that aligns with the broader trend of globalising local talent.
Foxtel’s legacy and the road aheadFoxtel’s journey from a pay-TV giant to a digital-first operation reflects the broader evolution of media consumption. While it has faced its share of struggles, I believe Foxtel’s transformation efforts have laid a strong foundation for its integration into DAZN’s global framework.
Under DAZN’s ownership, Foxtel’s offerings are likely to diversify further, blending sports and entertainment content to cater to a wider audience. Moreover, the continued involvement of its local management team, led by Patrick Delany, ensures that the brand’s deep understanding of the Australian market will remain a guiding force.
It will be interesting to see whether DAZN’s focus on sports might incorporate some of Foxtel’s entertainment offerings, particularly in streaming formats.
A broader perspectiveThis acquisition also serves as a reminder of the broader shifts in media. The convergence of global and local players highlights the increasing importance of scale and technological innovation in remaining competitive. For Telstra, News Corp and DAZN, this deal represents a calculated bet on the future of streaming, with Australia emerging as a critical market in DAZN’s global ambitions.
More than a corporate dealThe DAZN-Foxtel deal is more than a corporate transaction; it is a defining moment for Australian media and sports. For fans, it promises better access, improved services and a renewed focus on diverse sports content. For DAZN, it cements its position as a leader in sports streaming. And for Foxtel, it represents the next chapter in a journey marked by resilience and reinvention.
Having followed Foxtel’s ups and downs over the years, I see this as an opportunity for it to finally leverage the strengths of a global player like DAZN. As this integration unfolds, it will be fascinating to see how DAZN incorporates Foxtel’s legacy to chart a new course in the ever-evolving world of sports entertainment.
Paul Budde is an Independent Australia columnist and managing director of Paul Budde Consulting, an independent telecommunications research and consultancy organisation. You can follow Paul on Twitter @PaulBudde.
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