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For the past 40 years, Australians have switched on Nine's Wide World of Sports for all international cricket played in Australia. But, Nine dropped cricket in favour of tennis and Cricket Australia opted for a joint deal with Foxtel and Seven, taking a slice of its rights exclusively behind a paywall.

Joel Carrett Without a doubt, Australia's summer of sport will be unlike any before it. Behind the scenes Foxtel is preparing massive changes to how it has done business since it launched in It's Foxtel, but not as we know it. On the verge of launching its new direct to consumer sports streaming service , where consumers can for the first time buy sports content and nothing else, the Murdoch-controlled pay TV provider is at an inflection point.

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Related Quotes Advertisement While the new service was not ready for Australia's opening one-day international against South Africa in Perth, Foxtel hopes to launch in time for the Test match opener against India next month.

There are clear risks and rewards, as shown by existing Foxtel subscriber Patrick Conaghan and prospective new customer Christopher McClelland. McClelland has never had Foxtel.

He says the cost and make-up of the packages has always held him back. Despite the huge array of sports rights, Foxtel's traditional cable service has struggled to push through a penetration rate of 30 per cent of Australian households.

It was the first international match played on Australian soil behind a paywall. Richard Wainwright 'Netflix of sport' The cable TV provider hopes to launch the new service to coincide with Australia's opening cricket Test match against India in December.

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It had been targeting it's first executive match — last night's one-day international against South Africa — but is stress-testing the product to avoid any embarrassing incidents, such as Optus' FIFA World Cup fiasco.

Chief executive Patrick Delany has outlined his vision to be the "Netflix of sport" and that statement naturally comes with its own connotations; a lot of content, smooth technology and a low price point.

Advertisement "The other factor is understanding which sports are going to be covered; broadcasting rights move around over time. For me the cricket is going to be a big one. Knowing they're going to be doing all the cricket and high quality coverage is a pretty big attraction," McClelland says.

While McClelland is exactly the type of customer Foxtel is looking for with its new sports streaming product — a younger, more tech-savvy demographic which is used to watching what they want, when they want, at a low price — it carries its own risk.

McClelland has Netflix and Stan, which is 50 per cent owned by Fairfax Media, publisher of The Australian Financial Review, which he may switch off over summer because he'll only have a certain amount of time available to watch anything and he'll be focused on cricket. But, the young engineer will to ready to switch those two services back on over summer and cut his sports streaming service.

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Conaghan presents a different kind of risk for Foxtel. Foxtel is hoping to tap a new sports market. The new sports service will not have Foxtel branded — rumoured to be called Kayo Sports, reported by Fairfax Media last week.

It knows what it wants to be, but market forces make the road unclear of how to get there. Foxtel's splurge on cricket was crucial for its new OTT service.

AP Delany wants to turn the traditional Foxtel product into the premium brand with bells and whistles like 4K, a new cricket channel, Fix Flicks to justify a higher price, but at the same time push into a new market that has not had the appetite spend a lot on content.

Foxtel customer research, obtained by the Financial Review, shows it is testing what pricing will be acceptable to traditional Foxtel subscribers that won't churn onto the new sports streaming service.

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It's believed the Foxtel Now brand will be phased out over time. Advertisement "Fox Sports is a great product but the cost of rights keeps going up," one media executive says. But they have to calibrate it carefully to make sure it genuinely taps a new market. If it's too cheap and too rich, subscribers will substitute it for Foxtel but if it's to expensive or too thin, it won't sell.

So it's a tough balancing act.

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The execution is always more important than the plan," one media executive says. Sources said Foxtel has been intensely modelling the impact of the upcoming sports service — forecasting how many customers would churn out versus how many it can bring in.

Goldman Sachs believes will be the bottom for Foxtel's earnings before they stabilise and return to growth. The investment bank forecasts Foxtel's customer base to grow to 3.

This compares with the 2.

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Advertisement "One of the reasons they've not done it in the past, i. If it's going badly, they'll pull back. Australians have been served incredibly well by the free-to-air sector and it is one of the major reasons Foxtel has failed to push through the 30 per cent household penetration mark.

So the key question is, how many sports nuts Australians are there who don't already have Foxtel and feel the need for more games than they can watch on free-to-air?

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There's no doubt Foxtel executives would pay good money to know the answer to that question. They are about to find out.

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