SKT Sky Network Television Limited.

[Baa_Baa]

Sky has to be a punt on the turn around of the century it’s just about whether they can halt the decline in subs and remain profitable with a pristine balance sheet. With nearly a million subs this looks doable.

[DarkHorse]

How are things likely to pan out in future years, assuming borders open and super-rugby becomes transnational again? Will similar RP opportunities exist?

[Baa_Baa]

This might be a distressed share price (opportunity) but it is definitely not a distressed company, the financials are sound. The market will realise this and rerate

[DarkHorse]

Sorry accidental repetition...

[daveypnz]

How are things likely to pan out in future years, assuming borders open and super-rugby becomes transnational again? Will similar RP opportunities exist?

Unlikely, not without paying a large price tag anyway. Normally a broadcaster in the UK would pay big money for the rights but due to uncertainty with Covid over there nobody came to the party this time round. Previously SKY UK were paying 20m pounds per year for the rights but that was when SR was global and would've included test rugby as well.

If this does end up being a roaring success there's no reason they can't bid for the rights next time round, they'd have NZR in their corner at the negotiation table as well. However I'm not overly optimistic, I expect this to be a nice one time profit due to the fact that they've paid nothing for the rights which are normally very expensive.

[mistaTea]

Unlikely, not without paying a large price tag anyway. Normally a broadcaster in the UK would pay big money for the rights but due to uncertainty with Covid over there nobody came to the party this time round. Previously SKY UK were paying 20m pounds per year for the rights but that was when SR was global and would've included test rugby as well.

If this does end up being a roaring success there's no reason they can't bid for the rights next time round, they'd have NZR in their corner at the negotiation table as well. However I'm not overly optimistic, I expect this to be a nice one time profit due to the fact that they've paid nothing for the rights which are normally very expensive.

Only time will tell.

But if RP proves to be a success - this could be just the beginning.

Let’s say it is a 50/50 split. And let’s say they do well and get 3M subs across the 100 countries they have rights to (a solid result, but not ridiculous numbers given the UK and all of Europe (except Spain) are included).

Well that would generate ~NZ$100M for NZR. Even if they only get half those subs it is still an extra $50M to NZR - and that is for just one 11 week domestic tournament!

Perhaps SANZAAR would be keen to do a similar revenue sharing deal with RP if the commercials are there? They would have one provider to deal with for streaming rights outside the SANZAAR countries and could generate more revenue by sharing with RP as opposed to getting cheques from a range of suppliers (which fixes the earning potential).

[mistaTea]

Only time will tell.

But if RP proves to be a success - this could be just the beginning.

Let’s say it is a 50/50 split. And let’s say they do well and get 3M subs across the 100 countries they have rights to (a solid result, but not ridiculous numbers given the UK and all of Europe (except Spain) are included).

Well that would generate ~NZ$100M for NZR. Even if they only get half those subs it is still an extra $50M to NZR - and that is for just one 11 week domestic tournament!

Perhaps SANZAAR would be keen to do a similar revenue sharing deal with RP if the commercials are there? They would have one provider to deal with for streaming rights outside the SANZAAR countries and could generate more revenue by sharing with RP as opposed to getting cheques from a range of suppliers (which fixes the earning potential).

Of course, if they exceeded all expectations and got 5M subs (an everage of 50K per country) that would be a whopping $162.5M revenue to NZR.

I am not saying that they will get those kinds of numbers, but the upside is enormous if this thing does succeed.

Every 100K subs they attract is an extra ~NZ$3M to NZR under a 50/50 deal (an extra ~NZ$3M for Sky too...).

I hope they sort out the Chromecast issue. Sky Aotearoa is being broadcast on an upgraded RP platform...so customers have to use a browser (the app does not work for SR Aotearoa). Mainstream won't want to have to piss around with HDMI cables to get the game on the big screen... RP need to make viewing as easy and seamless as possible.

Then again, a season pass is so damn cheap...they should still attract plenty of attention.

[mistaTea]

Duplicate message for some reason.

[Ogg]

let’s say they do well and get 3M subs

3m subs?



They're probably get 100k subs, maybe 200k tops. This is provincial rugby. Most people will cancel after the short season.

The fact that they didn't announcement this agreement makes me think that it's not material. So in other words, little to no revenue for Sky.

The silver lining here is that it sets up RugbyPass as a global "platform", which is where the value is long term.

Discovery have the world wide rights to stream Golf (discoverygolf.com), which is why they would be interested in buying Rugbypass and adding it to their portfolio. The CEO of Discovery has said repeatedly that they are not going after scripted movies or TV shows but are looking for Sports / Documentary content and platforms.

This is why Rugbypass needs to be sold off or used as a bargaining chip for a takeover.

[mistaTea]

3m subs?


They're probably get 100k subs, maybe 200k tops. This is provincial rugby. Most people will cancel after the short season.

The fact that they didn't announcement this agreement makes me think that it's not material. So in other words, little to no revenue for Sky.

The silver lining here is that it sets up RugbyPass as a global "platform", which is where the value is long term.

Discovery have the world wide rights to stream Golf (discoverygolf.com), which is why they would be interested in buying Rugbypass and adding it to their portfolio. The CEO of Discovery has said repeatedly that they are not going after scripted movies or TV shows but are looking for Sports / Documentary content and platforms.

This is why Rugbypass needs to be sold off or used as a bargaining chip for a takeover.

Yeah, but I think we have established that you have no idea what you are talking about