Tabcorp wants to strike a deal for all four race days for five years from 2024.
👉 Background: Tabcorp is one of Australia's leading gambling and entertainment companies. They've been around since 1994 and have a significant presence in the betting, media, and Keno markets.
👉 What happened: Currently, Network Ten broadcasts the Melbourne Cup, but it's five-year contact ends in 2023. And now, Tabcorp wants to strike a deal for all four race days for five years from 2024.
👉 What else: Tabcorp will try to broker a deal with a TV network (like Channel Ten) under a sub-licensing agreement. And, it's believed Tabcorp could pay $100 million-plus over the five-year deal.
💡In the era of streaming and on-demand content, broadcast rights are increasingly lucrative assets... And having control of this asset allows Tabcorp ultimately flexibility.
💡If Tabcorp sublicenses the rights, it's believed they would require that the TAB brand is 50 per cent of all the betting advertising. And, its betting odds would be integrated into the coverage.
💡So owning the TV rights not only gives Tabcorp the upper hand in negotiating, but also creates a strategic advantage.
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