The TV Broadcasting of Australian Rugby

[Braveheart81]

So, what happens to their league deal when Nine goes down the gurgler?

Channel 9 will continue to exist. The worst case scenario for the network is the creditors will appoint receivers, sell off some other assets the raise some cash and if forced to they will force the sale of Channel 9 to someone else.

CVC Partners will lose their money and the debtholders will secure enough funds to make them happy.

Maybe Jamie Packer will buy it back? CVC Partners could be his Alan Bond.

 

[Karl]

Bond bought it off Kerry for 2 billion, with 1.8 in cash and .2 in some sort of redeemable share. He defaulted on his obligations and Kerry basically got it back for the .2, showing a 1.8B profit. Then Jamie sold it for about 1.4B so it's made them 3.2B on a couple sales.

If he's smart he'll leave it at that. Even if he gets it cheap, it won't look cheap in 5 years.

The landscape for Broadcast Media has utterly changed, the web will be streaming to the majority of TV's in the very near future. Networks will continue to struggle and it won't get any better.

 

[Braveheart81]

That is exaclty what I was referring to Karl.

If the creditors force CVC Partners to sell, the price might be right for Packer to come back.

His previous sale to them was for 1.4B in cash and them taking on $3.6B of his debt. That was in 2007 and the advertising landscape has changed dramatically for the worse.

I can definitely envision the opportunity to come back into Channel 9 at a much more attractive offer.

 

[Inside Shoulder]

I previously posted that the impending collapse of channel 9 was partly the reason for the very front loaded NRL deal - apparently $80m is due in December. My source thought that there were no immediate issues - that was only 6 weeks ago.
If the $80m doesn't get paid then the NRL is going to be in some trouble with the recent sale of its TV rights, as I understand the deal, because I gather the $80m is a condition precedent to the rest of the rights. If it isn't paid then the negotiations would re-open but with arguably a lot less competition for the rights: 10's broke and 7 seem to be in cost cutting mode.
So Packer's move would be to buy the license but not the company and then go back to the table to negotiate a far less attractive deal for the mungo ball.
Makes the AFL look like geniuses - which Demetriou may very well be.
And, relevantly to this site may reduce some ability to tempt our players away to the NRL......

 

[Karl]

They'll have to protect the NRL rights come hell or high water. They default and lose those and it's all over red rover.

And if it was a close run thing, I reckon the NRL would provide some indulgence on timing for payments, stretching it out a bit etc. What's their alternative? They need to protect the deal and the revenue as well.

As I said over at the other place, wanting to pay a Billion dollars, saying you will and being able to sustain that are different things.

 

[Hugh Jarse]

Quite apt in an arse about way that the internationally bankrupt games of mungoball and Cross Country Volley Ball are funded by a TV network that is almost bankrupt.

That will teach them for their cynical treatment of Heavens Game test matches on FTA.

 

[Pedrolicus]

This is why you don't go around pissing people off. They've alienated rugby lovers as well as league, no one will shed a tear if they fold faster than superman on laundry day.

 

[Karl]

That is exaclty what I was referring to Karl.

If the creditors force CVC Partners to sell, the price might be right for Packer to come back.

His previous sale to them was for 1.4B in cash and them taking on $3.6B of his debt. That was in 2007 and the advertising landscape has changed dramatically for the worse.

I can definitely envision the opportunity to come back into Channel 9 at a much more attractive offer.

It would have to be at a deep, deep discount and you'd want to leave behind commitments like the NRL contract and go in fresh to renegotiate. Network broadcasters are at the start of a difficult period where new technology is totally disrupting their business model. I don't think any of the CEO's have a plan for the uncertainty and the transition/restructure of how they do business.

You could cut a deal that makes you look like a genius negotiator now and like a chump in 3 to 5 years.

 

[Badger]

Ah a Tom Waterhouse ad where he admits he doesn't know anything but betting - again Ch 9 what the hell is he doing as part of the coverage team?

From the Hamster Wheel (the guys from The Chaser):

 

[kronic]

Game is LIVE this Sunday morning. Check your guides as daylight savings comes into affect this Sunday 2am.

 

[p.Tah]

During the extended sports bulletin by our 'illustrious' free to air rugby broadcaster were any highlights of the Gold Coast 7s shown? Nein

Did they show the rugby league test, understandably yes. Cricket? Yes, three games of A-League soccer? Yes. Even surfing highlights from France. But nothing, not even a mention of the 7s.

 

[redstragic]

Storm of change: coming soon to TV

http://www.smh.com.au/business/storm-of-change-coming-soon-to-tv-20121019-27wrn.html

This is interesting stuff, Sanzar is in the box seat in being a content creator, hopefully they'll wield this power better in future to allow us more flexible access to it rather than being beholden to 9 and Foxtel. 9 has treated Rugby followers with disdain and Fox only allows one way to access when it also owns the Internet streaming rights.

 

[wamberal]

Storm of change: coming soon to TV

http://www.smh.com.au/business/storm-of-change-coming-soon-to-tv-20121019-27wrn.html

This is interesting stuff, Sanzar is in the box seat in being a content creator, hopefully they'll wield this power better in future to allow us more flexible access to it rather than being beholden to 9 and Foxtel. 9 has treated Rugby followers with disdain and Fox only allows one way to access when it also owns the Internet streaming rights.

If South Africa and New Zealand were not part of the equation, you might have a point. However, they are, and the ARU's freedom to negotiate is severely limited. That is a simple fact.

 

[Roundawhile]

Actually Wamberal, SANZAR has already started doing this with their live feeds to just about every country other than SA, NZ and Aus.

When the next Foxsports contract is up for renewal, it could be as this article suggests, that SANZAR will provide the product rather than Nein/Fox.

 

[p.Tah]

Interested see what the ratings for Bledisloe III are seeing that the game wasn't up against NRL or AFL. We rightly give Nine grief for warehousing the games late at night but perhaps if SANZAR didn't schedule games during the RL finals Nine may give rugby a better viewing slot. Let's see what the ratings are.

 

[TOCC]

Given the downward trend displayed this Rugby Championsip, it been a dead rubber and the apathetic attitude displayed by most news agencies in the lead up, I wouldn't expect a great figure..

 

[p.Tah]

I didn't expect Suncorp to be sold out for the same reason, but Queenslanders surprised me once again.

I've had a few non-rugby mates comment that they watched the game. I think it may be a reasonable figure.

 

[redstragic]

Interested see what the ratings for Bledisloe III are seeing that the game wasn't up against NRL or AFL. We rightly give Nine grief for warehousing the games late at night but perhaps if SANZAR didn't schedule games during the RL finals Nine may give rugby a better viewing slot. Let's see what the ratings are.

This is the point of he article. In the future terrestrial tv ratings won't mean a thing. We'll be able to access what we want from a myriad of sources. The torrent bleed is taking its toll on viewership now, surely the dodgy live feeds are doing similar to sport, people just want choice rather than be programmed for. iView is awesome and shows the way, for $5 a month you can get the fox sports news channel on iPad, I think if you are a full subscriber you can get a couple of other channels as well. They are responding but will need to do a lot more to survive.

 

[qwerty51]

I didn't expect Suncorp to be sold out for the same reason, but Queenslanders surprised me once again.

I've had a few non-rugby mates comment that they watched the game. I think it may be a reasonable figure.

They surprised you by selling out a 52k stadium for a Bledisloe?

 

[p.Tah]

They surprised you by selling out a 52k stadium for a Bledisloe?

Guess the pessimistic Sydney outlook on rugby temporarily rubbed off on me.