What you need to know:

• Kayo is set to launch a free, ad-supported version of its product this month, with codes such as the Supercars, A-League and W-League games available.
• CEO Julian Orgin dubs it a "Spotify approach" to sports streaming, pulling casual sports fans onto the platform with an ad-funded model, but keeping premium codes - NRL, AFL and cricket - for paying customers.
• Kayo has recorded 50% year-on-year growth to November 202-. Orgin hopes the 'Freebies' strategy will continue that curve. 

Scoring goals

Foxtel-owned Kayo is aiming to mirror Spotify's success in converting listeners to paying customers. As of this month the streaming platform opens up its paywall to anyone as part of its new Freebies strategy.

Non-paying customers won't be able to view the cricket, rugby or footy. But they can access Supercars, and some A-League and W-League matches.

The strategy gives advertisers new audiences and reach on top of solid subscriber growth.

"We've had a strong 12 months, despite the early impact of Covid, and that's been reflected in our 50% year-on-year growth, hitting 644,000 paid subscribers in November 2020," Ogrin tells Mi3.

"Kayo has its fanatics and more engaged sports fans already signed up, now we need those casual fans to see what they are missing. The added bonus here is we will make pre-roll and in-stream ad inventory available to clients, providing that extra dimension."

Foxtel Media is handling ad sales for Freebies strategy, as it does with the premium product.

Unable to disclose internal benchmarks for subscriber growth, Ogrin says continuing current curves for the next 12 months is not inconceivable. 

He says Freebies is also a data play.

"There will be no credit card required in the sign-up process but we are obviously collecting a name, email and phone number, which we will then use to promote the product through our owned channels, alongside reinforcing the value of the premium subscription in-app."

At this stage, Ogrin says that will most likely be in-stream ads already developed by its creative agency, The Hallway, with some bespoke campaigns likely to follow.

Keeping pole position

While Freebies' launch coincides of the NRL and AFL, Ogrin says there is no chance of giving them away for free.

"The idea of this is to capture people in the platform and show them exactly how it works and what's on offer, so you will be able to navigate the site as you would if you were a paid user, however, premium content will be locked," Ogrin says.

"It's not going to work if we allow access to our top tier sports, even in a limited capacity, because our marketing strategy since launch has been about creating a very clear message in market for consumers and advertisers. We are a premium buy."

Australia's streaming wars have primarily been fought on the entertainment side of the content battlefield. But sport has become an increasingly competitive play.

Optus Sport is the home of soccer/football, with access to the major competitions such as the English Premier League, UEFA and FIFA, while Stan threw its hat in the ring late last year, signing deals with Rugby Australia and Wimbledon.

Both are to remain ad-free and offer uninterrupted content for subscribers, however, Ogrin says Kayo isn't concerned.

"We've had Optus in the market for a while and were aware new entrants would eventually attempt to carve out a niche in the space. Great products but still niche," Ogrin suggests.

"Kayo has created unrivalled and clear position as the leading platform," he claims, "with a significantly wider range of sports on offer than any other streaming platform globally, let alone locally".

Ogrin says he remains confident in Kayo's position, adding that when it comes to sport, consumers are less "accepting of fragmentation" and expect smoother access to content.

Telstra takeover

Kayo is also set to become the primary streaming platform for Telstra customers using its Live Pass product to watch the NRL and AFL.

The move sees live streaming take in the respective apps for each code, with customers now required to pay $5 a month representing a significant discount.

Remaining Telstra customers who do not currently use the apps will be charged $15 a month, with each deal lasting 12 months. 

The move is two years ahead of the NRL's planned decision to end Telstra's streaming capabilities on smartphones by 2023, as part of its new deal with Foxtel.

"While Live Pass has provided a great experience for our customers over time, Kayo has quickly become the premium sports streaming service in Australia, and we’re excited to provide this exclusive offer to our customers, giving them the chance to watch a wider range of sports on their choice of screen," Telstra CEO Andrew Penn says.

Live Pass subscribers surpassed over three million in 2020. If Kayo can convert even 10% of them to its platform over the next 12 months, the growth target is in the bag.