Australian rugby league games could be heading online following reports the National Rugby League (NRL) has been in discussions with Google as part of the sporting organisation’s latest media rights. The discussions are said to be associated with having NRL games broadcast via Google’s YouTube video website.
These are not the first discussions rumoured to have taken place between YouTube and an Australian sporting organisation. Last year it was said that the Australian Football League (AFL) was in discussions with YouTube, as part of its new media rights deal to start in 2017.
It should also be noted that YouTube has made a shift toward professional sports media over the past few years. In 2010 it secured the live-streaming rights of the Indian Premier League (IPL) cricket. Three years later, YouTube began to experiment with major American sports, including Major League Baseball (MLB) and the National Basketball Association (NBA).
How would a deal between an Australian sports organisations and YouTube impact Australian sport media rights?
International sport media rights
Sports media rights are much sort after. The investment banking group Jefferies Group LLC sees sports as vital for TV channels because 97% of all sports programming is watched live.
This is evident by the high stakes of the sports media rights globally. In the UK recently Sky and BT paid a record £5.136 billion (A$10.48 billion) for live Premier League soccer television rights, almost doubling the previous £3 billion (A$6.12 billion) deal.
The annual amounts paid for sports media rights in the US range from US$1.5 billion (A$1.93 billion) annually for Major League Baseball to US$3 billion (A$3.85 billion) per year for the National Football League (NFL). The NBA’s recent media rights deal of US$2.66 billion (A$3.42 billion) annually more than doubled its previous deal.
How does this compare to Australian sport media rights?
The AFL’s current media rights, which includes Seven West Media, Foxtel, Fox Sports and Telstra, are valued at A$1.25 billion. The new media rights are expected to reach more than A$2 billion for a five year deal. The current NRL media rights deal with Nine and Fox Sports are valued at A$1.025 billion over five years, just under the AFL.
There is a clear gap between the value of Australian sporting media rights and those in the UK and US, which is arguably one factor in YouTube’s interest in the Australian sports market.
Could YouTube become a sport broadcaster?
Today the online video market is estimated to be worth US$200 billion to US$400 billion (A$275 billion to A$514 billion), with YouTube having the largest share. YouTube currently has more than 1 billion users, has more than 300 hours of video uploaded to its site every minute, is localised in 75 countries and available in 61 languages.
It was recently reported that in the US YouTube reached more Americans between the ages of 18 and 34 than any cable channel, including ESPN. There has also been a 50% growth in the amount of time users spend watching videos on YouTube year over year, of which 50% of viewing is via a mobile.
The live streams on YouTube have the potential to far outweigh the highest audience ratings of Australian television broadcasters. Felix Baumgartner’s world record free fall skydive, for example, had 8 million simultaneous viewers.
Who will pay? Advertisers or the users
If YouTube was to commence broadcasts of Australian sports, the question is, who will pay?
YouTube has a subscription based services already available that would allow Australian sports to charge per game, per month or per year. But how would this impact the current alternative platforms that both the AFL and NRL have?
Both have services for mobile and online viewing, part of digital rights deals with Telstra. The AFL’s deal worth A$153 million and the NRL deal worth A$100 million. Any digital rights deal with YouTube would have an impact upon the current approach toward digital rights.
A similar deal could be struck as with the IPL, where YouTube “involves every country outside the US”. YouTube could become a digital partner to broadcast AFL and NRL for countries other than Australia, assisting in the internationalisation of the codes.
YouTube and new ways to watch sport
In addition to the shear reach of YouTube globally, the other area to consider is broadcast technologies and the way in which YouTube has begun to experiment in this area.
In recent months Virtual Reality (VR) and 360 degree video, has been a big talking point. Particularly with the release Microsoft’s Hololens and more recently the new Oculus Rift VR headset, now owned by Facebook.
Google has also released Google Cardboard which gives anyone with a smartphone a cheap entry to the VR headset. Google also recently announced its Jump camera rig for 360 degree videos, which holds 16 GoPro cameras, costing well over US$8,000 (A$10,280) with cameras.
But there are cheaper alternatives to Jump coming into the market. The Giroptic camera is under US$500 (A$643) and the Bubl camera is US$799 (A$1,027), both are smaller than Jump and extremely affordable in comparison.
Sporting organisations are willing to experiment with new technologies. This is evident by the recent virtual reality content filmed for Samsung’s Gear VR at the NBA’s all-star weekend. The National Hockey League (NHL) also experimented with using GoPro cameras for its all-star weekend to give viewers a point-of-view perspective.
These new ways of viewing video content could have a major impact on the future of sports broadcasts and what the viewer sees on a screen, but does not need to entirely replace the current methods.
Future of sports broadcasting
In the current media environment it seems that YouTube will not replace the current broadcast of sport.
For Australia, the anti-siphoning laws prevent subscription or pay-for view only broadcasting many Australian major sporting events. This would prevent YouTube from having a major impact in the near future of sports broadcasts, but it could shake up the digital rights component.
The other factor is Australian viewing habits of television. The current reports still show a strong difference between television viewing and online video viewing habits.
What YouTube could do for Australian sports is allow for both the AFL and NRL to be internationalised by making it available to people outside Australia, something that the AFL in particular has been strongly working on.
In addition to providing a liner stream, YouTube could be a potential platform for sporting organisation to experiment further with new broadcast and viewing technologies, such as the 360 degree video.
Imagine being able to experience being in the crowd at the Melbourne Cricket Ground. A 360 degree video could allow the viewer – both in Australia and overseas – access onto the ground, a fly on the wall perspective, via cameras installed on goal posts or positioned above the ground.
YouTube thus does have the potential to lead the way in new forms of sports broadcasting.