Stan boss Mike Sneesby on winning at sports, playing in cinemas, and tapping 6 million credit cards
Stan boss Mike Sneesby is about to learn whether Nine's $100m bet on the rugby will pay off. He's hoping to convert 6 million registered people and their credit cards in order to out-jump the competition, but insists Stan won't break the bank to secure exclusivity in future. Meanwhile, he confirms talks with Hoyts over streaming in cinemas - but says the focus for now is decidedly small screen.
What you need to know:
- Stan Sport is set to launch on February 19, led by the refreshed Super Rugby competition.
- CEO Mike Sneesby told Mi3 the streaming platform would tap its database of 6m users for growth.
- Stan will also use its live Saturday night simulcast of games on Nine's multichannel 9Gem as its top of funnel tool.
- Sneesby declined to comment on whether the platform had expectations of beating former rugby rights holder Foxtel's viewing numbers.
- The streaming boss confirmed conversations with Hoyts CEO Damian Keogh about possible content tie-ups, adding "streaming and cinema aren't competitors".
First try
Stan boss Mike Sneesby says the streamer will tap its 6 million-strong database to seed its big sports play.
Stan's backing the rugby, snatched from Foxtel and ending its 30-year partnership in November, to out-muscle the competition. It's a £100m bet, but Sneesby seems confident that leveraging direct channels and 9Gem will deliver the goods when games kick off on 19 February.
He would not be drawn on when or whether Stan might overpower its arch rival, bit thinks Stan has plenty in the tank when it comes to rugby audiences.
"We've got 2.2m active subscribers across the platform and 6m who have registered a credit card with an account, so we are very confident that we are reaching the vast majority of that code's audience, if anything it probably over indexes," suggests Sneesby.
"It's never going to be about a comparison to competitors either," he insists. "We've always been focused on having exclusivity in every deal we do and that's where we differ from TV players – because we don't have to worry about going up against similar content in opposing time slots."
Nine's broadcast of Saturday night games will also provide top of funnel marketing for Stan Sport (i.e reach), alongside above the line campaigns, including digital and outdoor.
Meanwhile, Sneesby says Stan has been evaluating consumer price tolerance over the summer using A-B testing, with the bracket unofficially understood to be between $8-15 a month.
"We've run various tests, offering what we thought was the lowest up to highest reasonable price point, then gathered that data and worked out the optimal fee they were willing to pay," Sneesby says.
"So ultimately, the price that consumers are paying is the price they've asked for."
Stan cinema?
Earlier this week, Hoyts Group CEO Damian Keogh told Mi3 the cinema business has held discussions with Stan about using its content across the cinema network.
Sneesby confirmed ongoing talks between the two but says there is nothing yet contracted, though there is always an opportunity for the two businesses to work together.
"I've always taken the view that streaming is not a competitor to theatre. Of course, there's a certain amount of hours in a day, so in that respect, you are competing for consumer time. But the propositions are very different," he says.
"I do think there are some great opportunities to partner and bring new and innovative products to consumers that benefit both businesses."
Future deals
Stan will not become "aggregator" for sports, says Sneesby. As with entertainment studios, sports rights must hold a level of exclusivity.
Where rights are available, Stan will be at the negotiation table, though he insists, not at inflated prices.
"We do things differently from others; there's not going to be an aggressive grab for any sporting deal at any cost. We're confident in our partnerships and intend to grow incrementally with them."