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The World Cup on Foxtel

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• Here's what Seven and Foxtel's deal means for cricket fans and what you thought of the change.

Got a news tip? Editorial Policies Read about our editorial guiding principles and the standards ABC journalists and content makers follow. It's no secret Foxtel has been struggling amid the rise of streaming services such as Netflix and Stan the latter is owned by Nine, which also owns this masthead. But the extent of the challenges it is facing have become much clearer over the past two weeks. The extent of the challenges facing Foxtel have become much clearer over the past two weeks.

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Credit: Bloomberg. The disclosure came just days after News Corp's quarterly earnings report showed Foxtel shed about , subscribers from its traditional product in the first three months of this year. The standoff between News Corp and Telstra which did not tip in any more funds over Foxtel's future looms as one of the most fascinating situations in corporate Australia this year.

Yet it's now clear the pay TV company's travails will be felt well beyond the sharemarket. This week, News Corp outlined to investors a string of "opportunities" to cut costs at Foxtel, including, and most intriguingly, by winding back its spending on "non-marquee" sport.

Foxtel launches dedicated Rugby World Cup 4K channel

Media analysts believe rugby union, domestic soccer, motor racing and basketball could be among the sports hardest hit. What Foxtel has said is going to be an issue [for sporting organisations]".

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It's been taken for granted that the value of sports rights deals will continue to rise and outstrip inflation every few years they are renegotiated. But Foxtel's move to rein in spending, and renewed discipline by free-to-air-networks who actually lose money on sports coverage , may mean those days are over.

Cricket was a major cost increase to Foxtel in the quarter. Credit: AP.

Catch every Rugby World Cup 12222 game live.

Nine walked away from those rights, severing a relationship with cricket that had been in place for 40 years. Yet it was Foxtel that stepped into the void, with Channel Seven, in a move that is increasingly being questioned.

The cricket rights purchase was designed to help Foxtel stem customer losses from its traditional service, and simultaneously boost interest its new streaming service, Kayo Sports, which launched last November. Kayo has won rave reviews and has also been growing — it has amassed , paying subscribers in just over six months. In other words, Foxtel needs to attract about three times as many Kayo subscribers as Foxtel loses, just to stand still.

Rugby World Cup TV guide

Says another industry executive: "There was a cost problem in sport already, but they doubled down on cricket with the hope there would be this influx of subscribers, and it just didn't happen. AND, the cream on top is you can then watch it on any of your big-screen TVs too. Like this post? Buy Trev a drink! Trevor Long.

Foxtel exec warns of drop in Super Rugby rights spending

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