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This is interesting.

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mst

Peter Johnson (47)
^^I think you are closer to the mark with having to have a good look at our market and the opportunities.

The MLB who are at the forefront of anything digital have spent a few years dabbling in the Australian sporting landscape and have just walked away without any souvenirs, buying anything or taking anyone's business cards which is really interesting. Its also good to understand that the whole subscription and taking control of your on TV rights and broadcasts is not for all sports. The MLB, NFL, NHL WWE etc examples are of success stories but that seems to be a direct correlation to their size and established market position.

Other sports who are fairly heavy hitters who have gone down the same track are now suffering significantly. The NHRA is a perfect case example. They split from ESPN as to not only take over their oven production, but also to exploit digital and subscription opportunities. For the first time decades they are running short fields - not enough entrants. Sponsorship has dropped, audience has dropped and now owners / teams cant afford to race and the sports is suffering all in public view.

The streaming subscription take up has been low ($100 US per year minimum), the international rights haven't sold they way they envisaged (Foxtel in the past aired 3-6+hrs of content per event, its now 1hr per event that started part way through the season), the production is poor and their saviour ironically atm is the limited air time they have with a cable network. The cable network is laughing all the way to the bank having added approximately 300,000 additional viewers and love it as they don't wear production costs so its super cheap content to buy that the sport desperately need to get airtime with to survive.
 
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TOCC

Guest
Tomorrow night Twitter will stream their first NFL match live, Twitter has also secured streaming rights to the MLB, NHL and NBA for 2016 and beyond.
 
T

TOCC

Guest
So let get back to the rights for a moment. Let say hypothetically Optus bought the rights to Super Rugby like the EPL. Remember, it’s not just the digital rights they buy, it the full rights. How its delivered is a business decision.

Streaming Rugby could potentially be very detrimental. We might want to be careful what we wish for.

Optus purchasing the complete broadcast rights to the EPL is unique, the digital rights of the AFL and NRL have been sold to Telstra seperately. SANZAAR sold the digital rights of Super Rugby and the Rugby Championship to Foxtel. Foxtel bought the Super Rugby digital rights to protect the exclusivity the of the content.

For rugby, best case scenario would be the digital rights for handheld devices are sold to another online provider other then Foxtel, this would obviously have an adverse impact on the value on offer from Foxtel, but the trade off is that it could present a financially cheaper option for rugby union fans to watch Super Rugby and open up to the wider market. Foxtel still retains the cable broadcast and is able to offer a superior product through HD, reliability and exclusivity of broadcasting on your tv.
 

mst

Peter Johnson (47)
i think the trade off would be significant TBH.

Telstra has access to to rights now (being a part owner of Foxtel) so it could have them on handheld devices now which begs the question why not. Its not an Optus marketing strategy thing as Telstra have the NRL / AFL for that.

So its most likely about ROI, which after factoring in that Foxtel can absorb some cost having a large amount of content, you would figure to trim down the rights value by 2-5mil as a starter. So lets start with a figure of $38mil.

To enable handheld access and split them up between a terrestrial broadcaster and digital broadcaster you would easily right down the value of each again as there as separate operating costs, so another few million off. Then, what would it be worth to Foxtel knowing the customer base will be reduced, the FoxtelGo Digital packages impacted, their sports web site with video content diminished etc? I am figuring you will find the rights on the Foxtel side will be lass then 50% of what the ARU get now, and thats of the trimmed value.

Then for a digital broadcaster, competing for small numbers with minimal content (unsure if they could have access to O/S Super Rugby digital content) and the ARU wont want to change the Wallablies rights from FTA you are looking at maybe 2-8mil at best in the value of the rights.

So best scenario I envisage would be about 30mil and thats being generous; and without the NRC funding.

For the consumer? Well I would assume along the lines of Telstra and the AFL where coverage is delayed and finals live are not allowed. O/S games maybe an issue. As for Foxtel. they will reduce content or repackage and up the price - on the assumption they would keep it at all.

The digital subscription will most likely be around 20-40per mth, i would guess near to Optus EPL equivalent price (so $30 minimum mobile cost and then EPL on top).

So what can the ARU deliver Super Rugby wise on 25-30mil knowing we are on the edge with 40 and also coming up with the money for the NRC/ or should the ARU again cut the price of the rights to accommodate the NRC? Another 1 or 2 mil cut?

The other factor will be the advertising revenue impact which I would guess would decrease as you have split markets and a smaller customer base and demographic, especially with limited digital content.

Yeah, by the time we get cheap rugby via a digital subscription i don't think it will be worth watching, and it wont be cheap.
 
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