Sky platform losing English Premiere League to Spark

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tdgeek

29749 posts

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#2060746 23-Jul-2018 07:01

Finknz:

I just got Fan Pass through Spark for a year. Does the offer of $16 a month for beIN extend to Fan Pass subbers or just Sky. Wondering how much EPL Fan Pass is likely to screen. Highlights would be enough for me. Cheers.

Just Sky, as per website

SKY customers with at least the SKY Starter package can upgrade now for only $16.10 per month.

SKY Starter customers subscribed to beIN SPORTS can also log-in to beIN SPORTS CONNECT using their SKY credentials at no additional cost! Stream beIN SPORTS 1 and 2 plus extra live games and catch up content. beIN SPORTS CONNECT is available wherever you have internet access on your laptop, desktop or mobile device.

elpenguino

3424 posts

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#2064401 28-Jul-2018 22:30

invisibleman18: Same. I watch every one of my team's games, but just haven't got the spare time to watch other games.

Is it 38 games a week? Thats 57 hours.

I would be surprised if anybody watches very many of those.

Most of the posters in this thread are just like chimpanzees on MDMA, full of feelings of bonhomie, joy, and optimism. Fred99 8/4/21

hattrick123

71 posts

Master Geek

#2073711 15-Aug-2018 09:42

ockel:

Wow. Apparently just 0.4% of Sky's audience watches the EPL. If thats 800,000 households with 2.7 people per household thats less than 10,000 people that watch.

Even more marginal than I realised.....

Source ? on that 0.4% ? Also is that live as I am sure alot would like to watch the recorded version(as someone mentioned) at a more suitable time?

elpenguino:

invisibleman18: Same. I watch every one of my team's games, but just haven't got the spare time to watch other games.

Is it 38 games a week? Thats 57 hours.

I would be surprised if anybody watches very many of those.

You also have to factor in halftime and all the ads and punditry. maybe 38* 2 hours(minimum0 = 76. Not sure if they can get much ad revenue from that

But based on the above numbers

~10 million to buy the rights for 3 seasons. heard that number mentioned on here before so take it for what it is. Not sure what it is in uk e.g. Bt paid 600mill???

so lets say 4 mill per season for rights in NZ

Plus 2 mill operating costs

10,000 subscriptions @ 200$ per season = 2Million$ Plus adds

Either the rights are a lot cheaper or the subscriptions are alot higher. Or Other non-subscription revenue is high.

Be interested to see if they offer it free(or include in there broandband package price (e.g. spotify)) or charge extra for it.

There is also "acquisition or retention tool for our broadband or mobile base. " revenue side of things but spark say they want it to stand on its own 2 feet.

Would be interesting to knowthe real numbers.

ockel

2031 posts

Uber Geek

#2073823 15-Aug-2018 11:15

hattrick123:

Source ? on that 0.4% ? Also is that live as I am sure alot would like to watch the recorded version(as someone mentioned) at a more suitable time?

From the company - see the Spinoff article. The sport remains a contentious one for Sky: after news broke recently that Spark had outbid Sky for the EPL rights, Fellet emailed me to clarify the precise figure. “In case it comes up, the EPL represents 0.3% of the viewing on the Sky platform,” he wrote in an email. “This is even after taking all the free-to-air channels out.” By comparison he told me that the NBA – on the face of it a less culturally significant sport – is over 2%.

So 0.4% audience is actually overstating the number by the sounds of it

hattrick123:

You also have to factor in halftime and all the ads and punditry. maybe 38* 2 hours(minimum0 = 76. Not sure if they can get much ad revenue from that

But based on the above numbers

~10 million to buy the rights for 3 seasons. heard that number mentioned on here before so take it for what it is. Not sure what it is in uk e.g. Bt paid 600mill???

so lets say 4 mill per season for rights in NZ

Plus 2 mill operating costs

10,000 subscriptions @ 200$ per season = 2Million$ Plus adds

Either the rights are a lot cheaper or the subscriptions are alot higher. Or Other non-subscription revenue is high.

Be interested to see if they offer it free(or include in there broandband package price (e.g. spotify)) or charge extra for it.

There is also "acquisition or retention tool for our broadband or mobile base. " revenue side of things but spark say they want it to stand on its own 2 feet.

Would be interesting to knowthe real numbers.

NBR have quoted the BeIN contract was USD12m (or USD4m/yr). Tha'd be more like NZ$5.5m per season (more given the forward points on the curve til 2019-22 but lets ignore that). https://www.nbr.co.nz/spark-sports

That was apparently significantly higher than Coliesum paid for the rights - and it couldnt make the economic proposition stack up. You're likely understating the operating costs - check the global rule of thumb for content/total costs (and note that general entertainment costs as a proportion of total costs are lower than sports costs to total costs). Anyhow you're up to $7.5m pa costs to amortise over your audience. Gotta hit 37k paying subs at $200/yr to breakeven. To return WACC? How many more customers to get that - using the company WACC rather than a project IRR hurdle.

Ad revenue? How many pre-roll and halftime ads are in the BeIN coverage? Spark will be heavily promoting Lightbox through its coverage (nil revenue there unless you're counting the internal transfer costs).

And regarding making Lightbox Sports stand on its own two feet? We know how well that turned out for the Lightbox proposition dont we? Priced, then free for 12 months and then free forever (on the basis its a churn management tool - doesnt look like it grabbed any market share - even half of Sparks broadband customers dont watch it despite being free!)

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