Putting MVNO own goals behind to capture old audiences in a new way

In 1986, Sir Alex Ferguson took charge of Manchester United, a club stuck in the shadows of its former greatness. His early years were a struggle, near sackings, frustrated fans and no trophies in sight.

Timing wasn’t on his side; the team wasn’t ready and English football was a tough arena.

By 1993, however, Ferguson’s vision, a stronger squad, and a changing era delivered the Premier League title sparking a legendary dynasty.

Timing, despite even the best of intentions can make or break success.

This is true for almost every commercial endeavour particularly when it comes to MVNO’s looking to leverage the passion of sports fans.

For publishers – sport remains one of the few shining lights in an industry fighting diminishing revenue streams, with the paywall model faltering they pay big licence fees to control the point of consumption with a decreasing ROI.

It’s at this intersection – where sports rights holders and publishers need to adopt a new subscription play. With timing and importantly technology now on their side the telco conversation deserves to be back on the agenda.

Sporting franchises themselves have long been held up as the perfect MVNO opportunity but overlooked for the past two decades has been the rightsholders who now have an open goal and a desperate need to start winning again.

The paywall play: Who’s buying it?

Down under the media landscape is bleak, with the subscription paywall model once seen as the future of digital publishing failing as a business model.

A 2023 University of Canberra study found that just 17% of Australians pay for online news, with younger readers turning to free platforms.

Paywalls are pushing away casual readers, shrinking audiences, and forcing publishers into a cycle of cost-cutting that hurts quality.

The game is slipping away and a new telco strategy is needed to stay in contention to dramatically increase ARPU and relevance.

First step, ditch the paywall language and deliver mobile data and your customers sporting fix as a subscription bundle.

The time is now.

The branded MVNO model gives publishers a chance to change the game.

In Australia, MVNOs hold 11% of the mobile market, attracting budget-conscious consumers with plans half the cost of major telcos but with the increase in eSim adoption making switching networks even easier.

A race to the bottom on price isn’t going to be enough to anchor customers to your network.

Those publishers and broadcast rights holders with strong brands can extend their influence into telco offering mobile plans that connect with their audience’s passions and convincing them by stealth to pay for their content.

Bundling services with exclusive content builds lasting fan relationships, reducing turnover and boosting loyalty.

MVNOs also provide valuable customer data, allowing publishers to tailor content and offers for better engagement. By focusing on niche markets, publishers can create targeted services that resonate deeply with specific communities, setting the stage for a winning revenue stream.

Lessons from the Locker Room

Past attempts at publisher-led MVNOs offer hard-earned lessons. ESPN Mobile’s 2006-2007 effort in the U.S. aimed at sports fans with premium plans but failed due to high costs and pricing that didn’t compete, shutting down after 18 months.

These setbacks show that timing and execution are everything. Today’s telco landscape is a shiny new playing field, giving publishers a fresh chance to succeed if they learn from history and play to their strengths.

To win, sports publishers must not only emulate Ferguson’s determination but perhaps take some inspiration from Tottenham Hotspurs Manager and Aussie hero Ange Postecoglou who declared to a rapturous crowd after this month’s Europa League win that “ ..I’ll tell you something, I’ll leave you with this…All the best tv series.. Season three is better than season two!”

Game on for an exciting new season

For sports publishers, this is their 1993 moment, a chance to escape paywall struggles and build a telco vertical. Past failure, high costs, weak partnerships and pricing mistakes are no match for today’s tech, zero cost, 0 risk branded mobile pathways and the enduring power of sports fanbases. The journey to success is faster than ever.

So will Australia’s sports publishers have their Ferguson moment after years of disruption and hard yards or even better still launch into telco with a Postecoglou like belief that the best is yet to come.