SKY disclosure regarding status of Rugby World Cup 2019 bid

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#1984734 28-Mar-2018 09:44

JPNZ:

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

Well it depends on what the "net" cost to them is, they will be flogging "sponsorship", "presented by", "in association with" and a whole lots of other packages at advertisers, so they might even come out ahead , giving them even more money to spend on the SANZAR rights,

But it does certainly appear that the King of the Jungle has taken a hefty blow, which may be fatal

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JPNZ

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#1984737 28-Mar-2018 09:46

I'm genuinely more interested in the new SANZAR rights for All Blacks, Super Rugby and Mitre10 cup post 2020

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JPNZ

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#1984738 28-Mar-2018 09:48

wellygary:

Well it depends on what the "net" cost to them is, they will be flogging "sponsorship", "presented by", "in association with" and a whole lots of other packages at advertisers, so they might even come out ahead , giving them even more money to spend on the SANZAR rights,

But it does certainly appear that the King of the Jungle has taken a hefty blow, which may be fatal

I don't think that the RWC rights are the cash cow you think they are..

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tdgeek

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#1984740 28-Mar-2018 09:50

gbwelly:

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.

IMO, no. Sports people have Sky, so they have the RWC. Those that dont, get it for 6 months and cancel it. For any that need a dish, goodbye profit in the 6 months due to the cost (which is apparently not high) and the $99 contractor install. Ive read a few comments from Sky that the post RWC churn is normal. Why do they have it? Sky Sport is a premium product, so they need to have it. Its high cost becomes just part of the sports rights expense, a 4 year hit

tdgeek

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#1984743 28-Mar-2018 09:53

JPNZ:

wellygary:

Well it depends on what the "net" cost to them is, they will be flogging "sponsorship", "presented by", "in association with" and a whole lots of other packages at advertisers, so they might even come out ahead , giving them even more money to spend on the SANZAR rights,

But it does certainly appear that the King of the Jungle has taken a hefty blow, which may be fatal

I don't think that the RWC rights are the cash cow you think they are..

WRONG!!! :-) They are a cash cow, a big fat RED one.

cws82us

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#1984750 28-Mar-2018 09:58

Will this effect overseas broadcasting too?
Like Sky Uk

MikeB4

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#1984758 28-Mar-2018 10:09

for those wishing for a Sky demise think for a bit. They directly employ in excess of 1,200 people. The job losses would be greater than that as it would affect more than just sky. It would also leave 90%+ of our TV entertainment in off shore hands who don't really give a toss about a market that is a rounding error. Having said that SkyTV has assets in excess of $1 billion and credit lines probably close to that, they can ride this out if they innovate which I hope they do.

tdgeek

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#1984763 28-Mar-2018 10:12

MikeB4:

for those wishing for a Sky demise think for a bit. They directly employ in excess of 1,200 people. The job losses would be greater than that as it would affect more than just sky. It would also leave 90%+ of our TV entertainment in off shore hands who don't really give a toss about a market that is a rounding error. Having said that SkyTV has assets in excess of $1 billion and credit lines probably close to that, they can ride this out if they innovate which I hope they do.

The RWC costs them money, they get very short term extra subs that then cancel so they are largely a loss maker. Ads wont recover it all, not even close. Plys 1/4's onwards are FTA. It will help the financial accounts, and not cause rugby or sports subscribers to cancel, and it wont be a case of "we are deciding not to have RWC this time" Its a win win

tdgeek

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#1984766 28-Mar-2018 10:13

Chris Keall
(@ChrisKeall)

While rumoured lead bidders Spark and TVNZ won't comment, notable that Spark's MD said earlier that Lightbox's April move from Xtream to Brightcove will allow for live sports streaming plus pay-per-view events

JPNZ

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#1984768 28-Mar-2018 10:15

tdgeek:

The RWC costs them money, they get very short term extra subs that then cancel so they are largely a loss maker. Ads wont recover it all, not even close. Plys 1/4's onwards are FTA. It will help the financial accounts, and not cause rugby or sports subscribers to cancel, and it wont be a case of "we are deciding not to have RWC this time" Its a win win

Yea, I'm very much in thinking the same. If it helps them retain money for SANZAR rights its a seriously good business move, despite what most with no knowledge will think

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WyleECoyoteNZ

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#1984771 28-Mar-2018 10:20

First thing I thought of when I saw this, is where is the money coming from??

TVNZ as an SOE wouldn't have a lot of cash I would have thought, so maybe the bulk of the cash is coming from Spark?

I'd be guessing Live games through a Spark\Neon subscription, and delayed coverage on TVNZ, of selected matches.

The real loser here is Joe Public, with another cost to pay if you want to watch the RWC2019

tdgeek

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#1984781 28-Mar-2018 10:28

WyleECoyoteNZ:

First thing I thought of when I saw this, is where is the money coming from??

TVNZ as an SOE wouldn't have a lot of cash I would have thought, so maybe the bulk of the cash is coming from Spark?

I'd be guessing Live games through a Spark\Neon subscription, and delayed coverage on TVNZ, of selected matches.

The real loser here is Joe Public, with another cost to pay if you want to watch the RWC2019

That's why, despite the Sky hate, bundling works. All in one place works. Its more efficient cost wise and its easier user wise

vexxxboy

4085 posts

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#1984789 28-Mar-2018 10:40

also any night games will be on here at close to midnight, so another reason Sky is not that upset.

Common sense is not as common as you think.

WyleECoyoteNZ

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#1984794 28-Mar-2018 10:49

tdgeek:

WyleECoyoteNZ:

First thing I thought of when I saw this, is where is the money coming from??

TVNZ as an SOE wouldn't have a lot of cash I would have thought, so maybe the bulk of the cash is coming from Spark?

I'd be guessing Live games through a Spark\Neon subscription, and delayed coverage on TVNZ, of selected matches.

The real loser here is Joe Public, with another cost to pay if you want to watch the RWC2019

That's why, despite the Sky hate, bundling works. All in one place works. Its more efficient cost wise and its easier user wise

And it's only going to get worse. Sky may die, but as a consumer are you going to be any better off if you're paying a separate sub for Rugby, Cricket, League, Basketball, World Darts, F1, Supercars, MotoGP, WRC, Movies?

I'd wager no.

And as I've said before, if a single provider (e.g. Netflix\Amazon) is the rights holder to say 3 of the above scenario's, I as a consumer would only want 1 payment and 1 account to manage, but that's a whole separate topic.

stinger

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#1984795 28-Mar-2018 10:51

vexxxboy:

also any night games will be on here at close to midnight, so another reason Sky is not that upset.

Three of the four pool games are going to be in prime time https://www.ultimaterugby.com/news/all-blacks-2019-rwc-fixtures/600269 I think the kick off for the first game will be 9:45pm, given that there will only be three hours difference (NZ will still be on winter time, Japan doesn't have DST at all)

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