SKY disclosure regarding status of Rugby World Cup 2019 bid

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gbwelly

1206 posts

Uber Geek

#232077 28-Mar-2018 08:58

https://www.nzx.com/announcements/316106

SKY Television advises that we were informed overnight that we are not the preferred bidder for the New Zealand broadcast rights for Rugby World Cup 2019.

We have been informed that negotiations are underway with the preferred party, and our bid remains in play should those negotiations fail.

We are not at liberty to provide further detail of the bid process at this stage, but make three observations:

• Sport broadcasting is a competitive business, and while we are disappointed not to be the preferred bidder, it’s an economic reality that we can’t have every match of every sport that New Zealanders like to watch.

• While the Rugby World Cup is great content and we put forward a strong bid for it, it is an incredibly expensive event that plays once every four years for six weeks. SKY Sport’s business is built on offering sports fans their favourite matches on a week in, week out basis, over multiple years. Our customers will continue to enjoy the Super Rugby, Mitre 10 Cup, and All Blacks tests (including the lead-up to the Rugby World Cup). For 52 weeks of the year they will also watch the Warriors and the NRL, the Cricket, Netball, Supercars, Golf, Cycling, Football, Basketball, Moto GP and Boxing, to name a few.

• Rugby World Cup rights are sold by IMG Media on behalf of Rugby World Cup Ltd, and are unrelated to the SANZAAR rights. SKY has the SANZAAR rights through to 2020, including All Blacks tests, Super Rugby and the Mitre 10 Cup.

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667 posts

Ultimate Geek

Lifetime subscriber

#1984692 28-Mar-2018 09:02

Wow, that could be a game changer.

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JPNZ

1199 posts

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#1984695 28-Mar-2018 09:04

I wonder if TVNZ finally got this over the line along with another party? If it is FTA and I think it will be then it doesnt really hurt sky that much. If its lightbox or amazon or any other pay provider then that will

Regardless, while its a blow its hardly a death knell as they still have the all blacks till 2020 and it is only a 6 week tournament.

Panasonic 65GZ1000, Onkyo RZ730, Atmos 5.1.2, AppleTV 4K, Nest Mini's, PS5, PS3, MacbookPro, iPad Pro, Apple watch SE2, iPhone 15+

surfisup1000

5288 posts

Uber Geek

#1984697 28-Mar-2018 09:05

Fellet retires, next day sky loses the RWC?

Coincidence? I think not.

This could be the end of sky.

I wonder if freeview could mop up skys assets if they go bust?

vexxxboy

4087 posts

Uber Geek

#1984698 28-Mar-2018 09:07

there are going to be some seriously pissed of Rugby fans when they work out what they have to pay and what they have to do to get to watch the games unless it's TVNZ or mediaworks and then it's all good.

Common sense is not as common as you think.

Benjip

902 posts

Ultimate Geek

ID Verified

#1984699 28-Mar-2018 09:08

Please be Amazon, please be Amazon. And let this be the beginning of them outbidding Sky for all rugby events after 2020 (I don't want Sky, but I do enjoy watching the All Blacks, and especially the RWC).

surfisup1000

5288 posts

Uber Geek

#1984700 28-Mar-2018 09:08

JPNZ:

I wonder if TVNZ finally got this over the line along with another party? If it is FTA and I think it will be then it doesnt really hurt sky that much. If its lightbox or amazon or any other pay provider then that will

Regardless, while its a blow its hardly a death knell as they still have the all blacks till 2020 and it is only a 6 week tournament.

'Only a 6 week tournament'.

I think it is more than this. It signals that sky could lose more sports in future.

Lets see what happens to the share price as investors take a long term view of the future of sky.

JPNZ

1199 posts

Uber Geek

#1984717 28-Mar-2018 09:24

surfisup1000:

Fellet retires, next day sky loses the RWC?

Coincidence? I think not.

This could be the end of sky.

I wonder if freeview could mop up skys assets if they go bust?

LOL, you do realise they made $66 million dollars profit in the last 6 months right? They are at least 5 years away from dying especially as they have rugby rights till 2020 and are about to bid on rights to 2025. If they win the new rights they will be around for a lot longer.

TVNZ/Spark are lead bidders which means it will be free to air, does that hurt Sky? Not really but it could have been much worse if a pay provider had picked them up.

The real question for me now is, has TVNZ/Spark blown its budget on securing the World Cup and will they let SKY have the Sanzar rights to 2025? Thats the real question here

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tdgeek

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#1984718 28-Mar-2018 09:26

JPNZ:

I wonder if TVNZ finally got this over the line along with another party? If it is FTA and I think it will be then it doesnt really hurt sky that much. If its lightbox or amazon or any other pay provider then that will

Regardless, while its a blow its hardly a death knell as they still have the all blacks till 2020 and it is only a 6 week tournament.

Why would being FTA or non FTA matter about hurting Sky? Makes no difference. It will help Sky as the costs are very high for an event that lasts weeks, so when they have hosted it, its been a big loss making venture

As to who, no idea. TVNZ makes sense, Govt subsidy makes sense. or its PPV.

tdgeek

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#1984720 28-Mar-2018 09:28

surfisup1000:

JPNZ:

I wonder if TVNZ finally got this over the line along with another party? If it is FTA and I think it will be then it doesnt really hurt sky that much. If its lightbox or amazon or any other pay provider then that will

Regardless, while its a blow its hardly a death knell as they still have the all blacks till 2020 and it is only a 6 week tournament.

'Only a 6 week tournament'.

I think it is more than this. It signals that sky could lose more sports in future.

Lets see what happens to the share price as investors take a long term view of the future of sky.

That is a possibility too. Sports would cost a lot more, bundling is far more efficient and desirable than one sub per one sport would ever be.

surfisup1000

5288 posts

Uber Geek

#1984723 28-Mar-2018 09:31

JPNZ:

"They are at least 5 years away from dying"

So you agree with me then.

As a shareholder, I'd expect sky to be increasing their profits year on year.

When do you see that sky profits will start increasing again?

Skys long term viability is not assured at all.

I think they will survive the next 5-10 years. After that, hard to tell.

vexxxboy

4087 posts

Uber Geek

#1984724 28-Mar-2018 09:32

I Can see why Sky wouldnt go overboard, the games most people want to see are FTA anyway so they dont getmuch of a return on investment if it's say Tonga V Georgia.

Common sense is not as common as you think.

JPNZ

1199 posts

Uber Geek

#1984725 28-Mar-2018 09:32

Wow wish I had read a little more into Mr Fellets comments earlier in the week..

"Fellet said the Rugby World Cup was not such a good proposition for Sky because the closing stages of the competition, when interest was highest, had to be shown free-to-air.

"By the time you put the quarter final, semi-final and the final all live on free-to-air, there really isn't much of a Sky advantage."

So Sky would have had to have shown the quarters, semis and final Free to Air anyway...? Was this that stupid NZ sports should be free to air for all New Zealanders law that winston peters was banging on about last election? If so then its no wonder Sky doesnt really care.. Its only the pools they would have had exclusively

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tripp

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#1984729 28-Mar-2018 09:37

JPNZ:

Wow wish I had read a little more into Mr Fellets comments earlier in the week..

"Fellet said the Rugby World Cup was not such a good proposition for Sky because the closing stages of the competition, when interest was highest, had to be shown free-to-air.

"By the time you put the quarter final, semi-final and the final all live on free-to-air, there really isn't much of a Sky advantage."

So Sky would have had to have shown the quarters, semis and final Free to Air anyway...? Was this that stupid NZ sports should be free to air for all New Zealanders law that winston peters was banging on about last election? If so then its no wonder Sky doesnt really care.. Its only the pools they would have had exclusively

And as it's on free to air then sky will still show it to anyone with a decoder when it plays on TVNZ. It will be "interesting" to see how lightbox holds up with everyone trying to stream it live (if it goes on lightbox). Movies and tv shows streaming is easy, live streaming is the fun part.

tdgeek

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#1984731 28-Mar-2018 09:39

JPNZ:

Wow wish I had read a little more into Mr Fellets comments earlier in the week..

"Fellet said the Rugby World Cup was not such a good proposition for Sky because the closing stages of the competition, when interest was highest, had to be shown free-to-air.

"By the time you put the quarter final, semi-final and the final all live on free-to-air, there really isn't much of a Sky advantage."

So Sky would have had to have shown the quarters, semis and final Free to Air anyway...? Was this that stupid NZ sports should be free to air for all New Zealanders law that winston peters was banging on about last election? If so then its no wonder Sky doesnt really care.. Its only the pools they would have had exclusively

Agree, and even if it was everything its a huge cost, all they get a expensive ad revenue and a handful of 6 month subscribers that actually cost them money for a short term contract. Its a huge one off cost, but its built in as its a premium sport. They must lose a great deal, so its a pity, but a money maker if they dont have it

gbwelly

1206 posts

Uber Geek

#1984732 28-Mar-2018 09:40

tdgeek:

when they have hosted it, its been a big loss making venture

I'd say it's more of a loss leader for new subscriptions, otherwise they wouldn't bother, would they?

Edit: I see the conversation has already discussed this while I was replying.

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