Disney is entering the Australian sports streaming market by adding ESPN to its Disney+ platform at no extra cost. This move aims to capitalize on the popularity of major US sports leagues and compete with Foxtel's Kayo service. Disney+ plans to introduce ESPN in the coming months, offering live coverage of American leagues like NBA, NFL, NHL, MLB, college sports, and UFC.
Media giant Disney is entering the sports streaming market in Australia, moving its existing coverage of the top American sports leagues, including the NBA and NFL, to its streaming service Disney+. In a bid to capitalise on the growing popularity of the world’s most popular sports leagues, Disney will add ESPN to Disney+ at no extra cost, dealing a blow to Foxtel ’s one-stop sports shop, Kayo .
ESPN is one of the biggest sports broadcasters globally, and the move to take the platform in-house signals an intent to expand its live sports offering in Australia in the future. Disney+ is currently the third-largest streaming platform in Australia, and streaming live sports is becoming the next major battleground for it and the likes of Netflix and Amazon Prime Video, threatening the once-dominant position Foxtel and free-to-air networks had in Australia. By adding the infrastructure and capability to stream sporting events live on its app, ESPN is positioned to actively take part in future sports rights negotiations, a source familiar with the plans but not authorised to speak publicly told this masthead.While there is no set date for the introduction of ESPN to Disney+, a spokesperson said it will be in the “coming months”. While the major American leagues such as the NBA, NFL, NHL and MLB, alongside college sports and the popular UFC, which hosted an event in Sydney this weekend, will be available at no extra cost, Disney has left the door open for Foxtel to renew its current long-standing ESPN licence deal. Yet with Foxtel raising the cost of a Premium Kayo subscription to $40 per month in January, a Disney+ subscription comes at a significantly lower price point of $13.99 or $17.99. However, a price hike at Disney+ is likely at some point this year, this masthead was told.Bringing live sports together with Disney+’s existing library of movie franchises such asand others is an “innovative game changer”, the company’s local boss, Kylie Watson-Wheeler, said.Last week, the NFL announced a regular season game will be hosted at the MCG in Melbourne in 2026, while an NBA exhibition match will also be held later this year, highlighting the growing popularity of these sports in the Australian market. Disney+ has an estimated 3.1 million paying subscribers in Australia, per research firm Telsyte, around double that of. Amazon Prime Video, which is so far the biggest entrant into live sports, has around 4.8 million, while Netflix, which has begun moving into event-based live sports broadcasting has approximately 6.2 million subscribers in Australia. Unlike other streamers moving into the sports game, Disney, through ESPN, has sports coverage all year round, 24 hours a day, the company’s chief executive Bob Iger told investors last week. News Corp agreed to a sale of Foxtel to sports streamer DAZN in December. The sale is expected to be completed before the end of the financial year, taking the pay TV business, alongside streaming services Kayo and Binge, out of the hands of the Murdoch family.DAZN has flagged its intention to leave the Foxtel business untouched for now. The UK-based streamer wants to turn its own direct-to-consumer app into the Netflix or Spotify of sports, but will need to spend a significant outlay to get there. While the AFL and NRL remain the main game for Foxtel, the US codes, particularly the NBA and NFL, have proven particularly important during the off season for the winter leagues. Foxtel shares the rights to broadcast the NRL with Nine, the owner of this masthead, which holds the free-to-air component. The league is preparing to begin negotiations for its next contract, beginning in 2027. Both will face a fight to renew their current deals, with the league’s commissioner expected to create a bidding war, with the inclusion of global streamers. While News Corp did not report Foxtel subscriber figures in the final quarter of 2024 due to the sale process currently under way, it lost 16 per cent of its subscribers in the final quarter of 2023, after the AFL and NRL seasons came to an end.The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion.
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