Spark Sport: Rugby World Cup 2019

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#2235776 13-May-2019 09:43

I would imagine the number of people doing this is unlikely to have any material impact on their revenue. It still isn't that straightforward.

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#2254120 7-Jun-2019 21:28

Can anyone advise which sports bar(s) they know in Akland or Hamilton are going to have the RWC streaming on their big screen..!!?

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#2254148 8-Jun-2019 08:33

doobre: Can anyone advise which sports bar(s) they know in Akland or Hamilton are going to have the RWC streaming on their big screen..!!?

If they are semi smart , all of them I would imagine.

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#2259452 17-Jun-2019 13:15

Spark to give free Rugby World Cup pass when a new user joins or re-contract. Details/discussion of the deal on its own thread here.

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#2261694 20-Jun-2019 21:38

Received a press release today about Spark Sports in general and the RWC 2019 in particular, so will quote just the part relevant to this thread:

With three months to go until the Rugby World Cup 2019 kicks off in Japan, Spark Sport is well on track to deliver all 48 matches live and on demand.

Jeff Latch, Head of Spark Sport, says, “Spark Sport is performing well. Customers are streaming successfully, and more and more people are joining Spark Sport every day, either by purchasing a Rugby World Cup Tournament Pass, or by signing up to the monthly Spark Sport subscription.

“We’ve achieved a huge amount since we launched back in March. Since then, the team has rapidly improved Spark Sport’s functionality through a period of intense development and system improvement. Customers can see this in the improved user experience, and the ‘bugs’ that are a normal part of deploying a new piece of software are rapidly disappearing.”

Spark Sport has prepared for Rugby World Cup 2019 in three phases.

The objective of the first phase, which ran up until March 2019, was to get Spark Sport to market with a solid product that we were happy to put in front of customers. During this phase, the team were focused on delivering core platform capability, creating the core aspects of the user experience, launching the initial range of apps and standing up our initial operational model.

Once Spark Sport went live, the team entered the post-launch phase, which is running from April to mid-July. The focus for this period has been on the delivery of critical post-go live bug fixes, adding additional functionality, launching the app on a wider range of devices and putting the RWC Tournament Pass on sale. This phase finishes when the platform exits ‘beta’, which indicates that the platform is functionally ready to deliver Rugby World Cup 2019.

Spark Sport will then enter the final phase, RWC Preparation. This phase is all about stabilising and strengthening the platform for Rugby World Cup 2019. The focus will be on process automation, operational readiness – including capacity and performance testing, and finally, change lock down to avoid any unnecessary changes to the platform. Apps for final devices will also be made available.

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#2261707 20-Jun-2019 22:39

Anyone know of a bar with the spark streaming, out east auckland way..?

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#2265110 26-Jun-2019 15:55

2Degrees came out with information about watching the games - just to make sure people don't think they HAVE to switch to Spark to watch the tournament...

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#2265112 26-Jun-2019 15:58

In my view, there should be a health check button on that page to allow people to click the link to get a speedtest. Lots of people can find their way to a speedtest site, but it's one less step for the technically challenged.

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#2265115 26-Jun-2019 16:08

freitasm:
2Degrees came out with information about watching the games - just to make sure people don't think they HAVE to switch to Spark to watch the tournament...

Weirdly specific post from a company that doesn’t actually have anything to do with hosting the streaming platform.

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#2265118 26-Jun-2019 16:11

davidcole:
freitasm:

2Degrees came out with information about watching the games - just to make sure people don't think they HAVE to switch to Spark to watch the tournament...

Weirdly specific post from a company that doesn’t actually have anything to do with hosting the streaming platform.

Possibly because they are worried with Spark's move to make Spark Sport Rugby Cup pass free to new users/resigning users... I imagine a lot people think you can only watch on Spark Sports if you are with Spark - quite like when Tivo launched and people thought they could only use Tivo with Spark broadband.

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#2265120 26-Jun-2019 16:13

I wonder if Sparks move will attract attention from the Com Com, feels exceptionally slimy to me.

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#2272211 9-Jul-2019 09:23

Some more information released

https://www.newsroom.co.nz/@pro/2019/07/09/673662/sparks-sports-strategy-becomes-clearer

"The live pictures and commentary will come down from Japan by fibre and satellite to TVNZ in Auckland (TVNZ is handling all the production for Spark), then up to the West Coast of the USA to be turned into a 'stream' before being sent back to New Zealand."

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#2272340 9-Jul-2019 12:57

skewt:

Some more information released

https://www.newsroom.co.nz/@pro/2019/07/09/673662/sparks-sports-strategy-becomes-clearer

"The live pictures and commentary will come down from Japan by fibre and satellite to TVNZ in Auckland (TVNZ is handling all the production for Spark), then up to the West Coast of the USA to be turned into a 'stream' before being sent back to New Zealand."

Its an interesting revelation in adding the round-trip costs to the US before delivery. I wonder if it also added to the financial revelations:

"Previously, Spark said its aim was to make a profit out covering the Cup. Latch all but conceded this won’t be the case and the payoff for Spark will be determined by how many subscribers it can hold on to after the RWC is finished.

“It will depend on the tail at the other end because the reason we are doing this is to bring a whole lot of people into Spark Sport so they can use the platform and see it in all its glory and then we clearly expect and hope that a whole lot of those people stay with us,” said Latch."

Recall the previous CEO's comments:

"The challenge here is that these rights cost a lot of money, so you have to have a model that gets a little bit of funding from advertising with a free-to-air component. But the vast majority of revenue has to be earned from pay subscriptions."

The Spark boss says market research will be used to set the final charges for games.

He added, “So if we have too much free-to-air, then the chances of earning back our investment reduces.

Its poses sooooo many questions. Just to start:

- Even if Spark has a flawless execution of delivering its already admitting that its going to post a loss? Thats a negative IRR on the project which has got to be contrary to the planned hurdle rate determined pre-bid.

- Did Spark woefully underestimate the cost of acquiring and delivering RWC19? So much so that even before the tournament starts the company is banking on holding onto subscribers (to a distinct product - not a subscription service) to make money off the Spark Sport platform.

- Did the apparent cost blowout see the CEO "retire" gracefully such that the new CEO can blame the old guard for any financial disaster rather then have the CEO fall on his sword post-tournament?

- Did the cost structure result in Spark deciding that given any financial disaster that it might as well give away RWC tournament passes with re-signing subscribers for broadband and mobile? [In for a penny...]

- Had Spark overestimated demand for the tournament given the closer time proximity for replays on TVNZ? Initially the pricing was "less than $100" and the earlybird pricing has been sharp but clearly Spark didnt anticipate the effect of the delayed coverage or woefully underestimated how "spend thrift" NZ consumers are when it comes to paying for sport.

- Is the strategy of "payoff for Spark will be determined by how many subscribers it can hold on to after the RWC is finished" smack of the Lightbox strategy "free for 12 months" and then charge for it? Which ended up with the financial disaster that Lightbox is today.

- How many rugby subscribers are really interested in paying $20/mth for the paucity of sports available on Spark Sport? After the RWC tournament is finished there will be EPL, the final throes of the F1 season, the final throes of the WRC season, NBA and some athletics. Really? Is that the sort of sport that a rugby supporter is likely to watch (if they are a fan of any of those sports then they'd already be on board, right?)? And would a casual viewer see value at $20/mth?

- Should Spark shareholders be scared given the litany of trainwrecks that Spark (nee Telecom) has continued to deliver in the media space - and the statements that Spark wants to build a portfolio of A-list sports? At what financial cost to the shareholder? Give the money to the shareholder rather than continue to destroy value!

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#2272347 9-Jul-2019 13:11

Well, you gotta start somewhere. How did Sky start off? I saw that somewhere, it wasnt much. A few key sports roll up soon, cricket and rugger. Thsts probably key

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#2272371 9-Jul-2019 13:22

tdgeek:

Well, you gotta start somewhere. How did Sky start off? I saw that somewhere, it wasnt much. A few key sports roll up soon, cricket and rugger. Thsts probably key

Agreed. But this is a complete turnaround in strategy. Going from standing on its own two feet to hoping that RWC subscribers stick around for Spark Sport. If that was the strategy then it would we would gave seen the Early Bird packages at $90 (same as last minute buyers) but giving 3 or 4 months of Spark Sport for free (Jun to Sept) etc.

Spark was all about monetising the RWC tournament. Now its a "suck it and see". Except its not management sucking the lemon but shareholders.

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