@Yossarian said:
I wonder if the NRL doesn't miss a trick by not having their own smart tv capable app and taking less from Foxtel. Personally I'd pay $20 for a specialised NRL channel and ditch Foxtel.
NRL are currently holding off doing this because NRL is so key to Foxtel subscriptions and Foxtel pay a lot of money for it. A significant mass of people still subscribe to the traditional FTA and pay-TV models. I don't think NRL can currently generate enough subscriptions via online services to risk cutting into Foxtel's pie.
But they did signal their intent by inviting Google (and I think Netflix) to the last round of TV rights discussions. I think as more and more people move towards on-demand online services like Netflix and Spotify, and as internet streaming becomes faster and with larger download allowances, we will see a critical mass of people moving away from traditional pay-TV.
I predict the continuing decline and perhaps even death of FTA and traditional pay TV, much like video/DVD rentals. Everything is moving online and people are starting to expect a broad array of on-demand content, particularly the more savvy and younger tech users.
To me, it's kind of like entertainment on a plane over the last 30 years. It used to be just one movie on the screen at the front, then they introduced overhead screens on the side rows, then individual TVs on every headrest. Single movies became looping movie channels, then on-demand films. Films broadened to TV shows, documentaries, sport, news etc. Try going on a plane now that just has 6 movies playing on loop, you can't even pause them to sleep or go to the toilet - worst travel ever!
So when the NRL thinks we have this critical mass of online viewers, I expect it will move away from a relationship with Foxtel towards developing it's own direct-to-TV and -device content. Initially it will need to partner with online providers (like it does now with Telstra), and perhaps the infrastructure will remain so complicated that the NRL can never truly manage all it's own content and distribution. But ultimately you'd think they'd want to cut out the middle-man licences and obtain profits directly from viewers and advertisers.