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Network Ten is planning to ramp up its investment in sporting rights as it prepares to launch its new subscription streaming service, despite posting a $3 million loss last year and broader concerns about a weak advertising market.
ViacomCBS and Ten sales boss Rod Prosser said he is confident that a multimillion-dollar investment in football broadcast rights will deliver returns for the network and its streaming service, Paramount+, despite unpredictable market conditions caused by COVID-19 last year, and the ongoing lockdown in NSW.
His comments were made as Ten revealed a loss for the 2020 calendar year, after accounting for $17 million in restructuring costs, and a write-down on the value of certain programs.
ViacomCBS is the new home for Sam Kerr and the Matildas for three years after a new $100 million deal was signed.Credit:Getty
ViacomCBS and Ten announced a five-year, $200 million deal for all A-League and W-League matches in May this year, before securing a deal to broadcast the Matildas and Socceroos matches in June. The acquisitions were made ahead of the launch of ViacomCBS’ new streaming service, Paramount+ on August 11.
Mr Prosser said ViacomCBS, the owner of Network Ten, intends to reinvest in buying sports rights, and that the launch of Paramount+ has allowed for a different conversation with sporting codes and clients.
“One hundred per cent [we intend to invest]. We’ve never shied away from the fact that we would always look at all rights, but having a [subscription] service as well as a linear and on-demand service, has allowed us to have a different conversation with sporting bodies,” he said. “Our desire now is to certainly grow in sport but it has to make sense from a ratings and audience point of view.”
Network Ten previously broadcast The Big Bash League and V8 Supercars and over the past few years it lost these commercial deals to other television networks. Until the more recent agreements, the only sport that was set to air on Ten this year was the Victorian Racing Club’s Melbourne Cup carnival. ViacomCBS is an emerging player in US sports broadcasting.
Overseas, its streaming service Paramount+ shows the UEFA Champions League and Italy’s Serie A in the US.
Mr Prosser denied Ten paid too much for the local rights: “I can’t comment on the price. Is it going to perform for us? Yes.“