Foxtel’s sports streaming service Kayo will release some games and events from behind the paywall in a major strategic pivot that could change the way it negotiates broadcast deals.
Kayo launched in late 2018 and has used a hard paywall in its two-year history. But on Thursday, Foxtel’s chief executive Patrick Delany confirmed Kayo would now pursue a “freemium” strategy so non-subscribers can gain access to some sports, such as the Supercars. The move will also allow advertisers to reach more viewers.
“That will give rise to much more reach,” Mr Delany said. “It means that if you are pausing your subscription… you’ll now continue to have action and access to some live sports but also an array of our repeats, scores and stats.”
Foxtel’s move is a pivot from the original strategy for Kayo, which involved a hard paywall. The decision to change the model could be perceived in two ways – either it is struggling to attract the subscriber numbers it needs with its current model, or it has recognised the desire for mass audiences by some sports codes. Foxtel claims it’s the latter. Kayo currently has more than 600,000 paid subscribers.