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· Posted on
February 21, 2024

Tabcorp goes "double or nothing" on the Melbourne Cup by aiming to conquer wagering and broadcasting

Tabcorp wants to strike a deal for all four race days for five years from 2024.

What's the key learning?

  • Broadcast rights are increasingly lucrative assets in the era of streaming and on-demand content.
  • If Tabcorp sublicenses the rights, they would require that the TAB brand is 50 per cent of all the betting advertising.
  • Owning the TV rights gives Tabcorp the upper hand in negotiating and also creates a strategic advantage.

👉 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.

What's the key learning?

💡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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