SKY announce Rugby rights to 2025

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Networkn
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#2337226 15-Oct-2019 10:26

The amount of influence NZR would have over Sky would be minimal at 5%. Do they even get a member on the board? Presumably. I see it as having a few potential benefits.

NZR are well aware of consumers desire to have streaming options available in high quality, as are Sky, so I expect that to be coming very shortly. (I have no actual knowledge of when).

tdgeek

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#2337227 15-Oct-2019 10:29

nzkc:

tdgeek:

decibel:

Surely this 5% is going to cause major problems in the future - how is NZ Rugby going to sell the rights to Spark or anyone else in years to come without crashing the value of their investment?

Because they won't be, they have locked Sky in. They both want to be locked in by the other. Thats called security for the future.

I'm a bit uncomfortable with this arrangement. It does indeed look like it locks NZ Rugby to SkyTV. Though not 100% necessarily...certainly very likely. Ive no idea of the rules/laws around the tendering for rights. I would imagine that there must be some form of "Chinese Wall" to ensure that SkyTV do not receive favouritism and sensitive commercial favouritism. For example; could you imagine if in 5yrs time NZ Rugby hit up Sky with "Pssst.... hey... Spark just bid $XXXm for the rights" cause that wouldn't be on.

I get why both parties would enter into such an agreement - it certainly helps both at the moment. It just concerns me that this locks out future alternatives which is a shame because competition drives improvements.

I think Super Rugby started 1996? I imagine Sky has always had it? Unsure on that, but it seems to me that they are continuing what they have had in place for many many years. Its locked out till 2025, and like any deal, its over then, time to renegotiate

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#2337240 15-Oct-2019 10:47

tdgeek:

I think Super Rugby started 1996? I imagine Sky has always had it? Unsure on that, but it seems to me that they are continuing what they have had in place for many many years. Its locked out till 2025, and like any deal, its over then, time to renegotiate

I think you missed my point entirely. Thats not the arrangement I am a bit uncomfortable with. Sky has secured the rights till 2025 thats fine. Its the stake that NZ Rugby now has in them that is a concern as it could lead to favouritism which could end up being detrimental to us (the consumer). Happy to be wrong.

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#2337247 15-Oct-2019 10:54

nzkc:

tdgeek:

I think Super Rugby started 1996? I imagine Sky has always had it? Unsure on that, but it seems to me that they are continuing what they have had in place for many many years. Its locked out till 2025, and like any deal, its over then, time to renegotiate

I think you missed my point entirely. Thats not the arrangement I am a bit uncomfortable with. Sky has secured the rights till 2025 thats fine. Its the stake that NZ Rugby now has in them that is a concern as it could lead to favouritism which could end up being detrimental to us (the consumer). Happy to be wrong.

As I see it, this is money. Not a stake. Sky prints shares out hands them over, hello NZ$22 Million to Rugby. Its part of the deal. Its a stake, yes. If Sky does fail, it doesnt matter. If in 2025 someone wants to pay more, and Sky cannot or will not, Rugby can walk. The 5% isn't a ball and chain.

What I feel is that rugby was too scared to risk Spark. Sky will pay more great. In 2025, and if Spark is going great, I think you will find the Rugby will be happy to chat, if the stream delivery history was bang on.

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#2337255 15-Oct-2019 11:25

tdgeek:

What I feel is that rugby was too scared to risk Spark.

This.
NZ Rugby even said in the announcement press conference that they are about "heartland NZ", which I took as a direct reference to "places where broadband is non-existent or rubbish".

I expect that the new contract, like the one it replaces, has a right of first offer clause where Sky has a period of time to offer to renew / extend the contract without NZ Rugby opening it up to any competitive bidding. The 5% shareholding is likely immaterial in terms of the finances of that deal, though it does give NZ Rugby an incentive to stay with Sky.

By 2025 the relative market success - or failure - of Spark Sport and Sky Sport Now, and the continued relevance of satellite broadcasting, should be much clearer

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#2337260 15-Oct-2019 11:37

PolicyGuy:

tdgeek:

What I feel is that rugby was too scared to risk Spark.

This.
NZ Rugby even said in the announcement press conference that they are about "heartland NZ", which I took as a direct reference to "places where broadband is non-existent or rubbish".

I expect that the new contract, like the one it replaces, has a right of first offer clause where Sky has a period of time to offer to renew / extend the contract without NZ Rugby opening it up to any competitive bidding. The 5% shareholding is likely immaterial in terms of the finances of that deal, though it does give NZ Rugby an incentive to stay with Sky.

By 2025 the relative market success - or failure - of Spark Sport and Sky Sport Now, and the continued relevance of satellite broadcasting, should be much clearer

Yep, the ironic thing is Sky removes more eyes than 7mbit rural broadband does. 60% of NZ TV's don't have Sky

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#2337263 15-Oct-2019 11:49

So what are the odds on Spark buying Sky or part thereof, before 2025?

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#2337265 15-Oct-2019 11:55

djtOtago:

So what are the odds on Spark buying Sky or part thereof, before 2025?

Takeover?

networkn

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#2337270 15-Oct-2019 12:04

tdgeek:

PolicyGuy:

tdgeek:

What I feel is that rugby was too scared to risk Spark.

This.
NZ Rugby even said in the announcement press conference that they are about "heartland NZ", which I took as a direct reference to "places where broadband is non-existent or rubbish".

I expect that the new contract, like the one it replaces, has a right of first offer clause where Sky has a period of time to offer to renew / extend the contract without NZ Rugby opening it up to any competitive bidding. The 5% shareholding is likely immaterial in terms of the finances of that deal, though it does give NZ Rugby an incentive to stay with Sky.

By 2025 the relative market success - or failure - of Spark Sport and Sky Sport Now, and the continued relevance of satellite broadcasting, should be much clearer

Yep, the ironic thing is Sky removes more eyes than 7mbit rural broadband does. 60% of NZ TV's don't have Sky

That's not correct strictly speaking. Whilst 60% of TV's don't HAVE Sky, they could get it if they paid. For a lot of Rural customers, no matter what they pay, they can't get an internet connection that would allow streaming reliably, no matter what.

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#2337354 15-Oct-2019 12:19

djtOtago:

So what are the odds on Spark buying Sky or part thereof, before 2025?

Well the commerce commission didn't like a Vodafone / Sky merger.

I don't think they would like a Spark / Sky one either.

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#2337381 15-Oct-2019 12:46

Business and political environments change. Never say never.

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networkn

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#2337382 15-Oct-2019 12:49

It makes more sense for Sky to have this than Spark, unless Spark was going to set up it's own local production company, trucks, techs etc to cover the games, which Sky already has. Had Sky of lost the Super Rugby, Mitre 10 and even the NZ Schools Rugby rights, then Sky may have sold that unit to Spark Sport, but this isn't the type of company Spark Sport is presently. They are taking a product recorded by someone else, making some changes and redistributing it. Basically punching the ticket on the way through.

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#2337386 15-Oct-2019 12:57

I agree

Spark don't have the production capability for this. Realistically they would need to sub contract this out to someone.

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#2337388 15-Oct-2019 13:00

networkn:

That's not correct strictly speaking. Whilst 60% of TV's don't HAVE Sky, they could get it if they paid. For a lot of Rural customers, no matter what they pay, they can't get an internet connection that would allow streaming reliably, no matter what.

That's technically 100% correct. But the fact is in Sky's heyday only 50% had it, now its less. For whatever reason that they dont subscibe, they dont subscribe. They can afford it but its too expensive or they cannot afford it. Either way, its less eyes. More so when its $100 a month but you have to sign up for at least 6 to watch RWC. Its always been less eyes.

I can see a day when more backhaul is added to rural towers, as the problem isn't going away.

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#2337393 15-Oct-2019 13:07

djtOtago:

I agree

Spark don't have the production capability for this. Realistically they would need to sub contract this out to someone.

But they do. RWC is a Spark/TVNZ venture. Spark does the broadcast, TVNZ does the production addon. Sky does both. If they got the rugby, then you'd imagine that relationship continues. Sparks other sports are merely just feeds, but also is most of Skys as production feeds are in the overall feed. Unsurprisingly rugby is a bit special. Im keen to see if Spark adds a production capability to local cricket. Bound to

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