SKT Sky Network Television Limited.

[mistaTea]

Actually just found this in a NBR report - sounds very much like Sky is not paying upfront anything for this:

Sky’s take
A Sky spokesperson said the company was not releasing commercial terms of the arrangement, but did say it differed to a standard rights deal – RugbyPass is the “service provider” for NZR (eg, it hasn’t bought the rights in a traditional way but will operate as NZR’s delivery platform to reach global fans).
“It’s a partnership with NZR to deliver Sky Super Rugby Aotearoa to global rugby fans in this unique season (where Sanzaar partners are running their own local tournaments due to Covid border restrictions),” she said, adding that it was not related to All Blacks rugby or any other negotiations, subjects on which the broadcaster was still saying little.

The news just keeps getting better!

Low downside but a chance at a reasonable upside.

A true ‘Dhando’ investment!

[daveypnz]

Fascinating. If they haven't had to pay anything then there is significant upside with basically no downside and it's amazing that the market hasn't recognised this...

[LaserEyeKiwi]

Fascinating. If they haven't had to pay anything then there is significant upside with basically no downside and it's amazing that the market hasn't recognised this...

Well we aren't sure how its structured - whether Sky is getting a cut of revenue, or if NZR is paying a fixed "service fee" regardless of amount of subscribers. regardless, it should improve Skys finances one way or another (hopefully bringing Rugbypass up to breakeven at least)

[daveypnz]

Well we aren't sure how its structured - whether Sky is getting a cut of revenue, or if NZR is paying a fixed "service fee" regardless of amount of subscribers. regardless, it should improve Skys finances one way or another (hopefully bringing Rugbypass up to breakeven at least)

I hope it's a revenue share. From research I've done there are 20m Rugby fans in France, 8m are "avid" fans. There are 12m fans in The UK, couldn't find a figure for "avid" fans but lets say 5m. That gives you 13m avid fans, capture 1% of them you've got 130k subs at ~$65 NZD a pop.

I've seen a lot of French Rugby fans inquiring about signing up on Twitter. It sounds like Canal+ used to have the rights but apparently they hardly ever televised the games live.

[Ogg]

Interesting arrangement. This could play out in a number of different ways long term.

The best outcome is for Sky to sell off or give NZRU/Silverlake rugby pass in exchange for the exclusive TV rights post 2025.

Rugby on Sky would become a "pay per view" event.

Customers could then choose their preferred platform, ie streaming or terrestrial TV, either both priced similar or offered as a combo. A revenue sharing agreement could be arranged.

In other words, Sky's costs and capital investment would be reduced but it also retains rights to TV content allowing it to extend it's life beyond 2025.

Over time NZRU/Silverlake would likely end up with the lions share of the revenue but Sky at least would get some of the "pie".

[mistaTea]

The best outcome is for Sky to sell off or give NZRU/Silverlake rugby pass in exchange for the exclusive TV rights post 2025.

LOL, your strategy seems to be "sell all streaming assets and just keep MySky". Previously you have said they should get rid of NEON! Their most popular streaming platform by far!

Their streaming platforms are going to become increasingly valuable over the next few years.

I suspect NEON subs will be increased in FY22. We only charge $13.95/month ($9.99 if you are with Spark). We could increase this by another couple of bucks and still be competitive relative to NETFLIX. Maybe charge $16.95 per month cancel any time or $180 Yearly Sub (equivalent of $15/month). Get the cash rolling in up front by encouraging Yearly Passes like they do for Sky Sport NOW.

They might need to charge an extra $1 for Sky Sport too for Sky Box customers. Need to be more careful here though. Will be easier to push this through as part of a competitive broadband bundle I think.

[Ogg]

LOL, your strategy seems to be "sell all streaming assets and just keep MySky". Previously you have said they should get rid of NEON! Their most popular streaming platform by far!

Their streaming platforms are going to become increasingly valuable over the next few years.

I suspect NEON subs will be increased in FY22. We only charge $13.95/month ($9.99 if you are with Spark). We could increase this by another couple of bucks and still be competitive relative to NETFLIX. Maybe charge $16.95 per month cancel any time or $180 Yearly Sub (equivalent of $15/month). Get the cash rolling in up front by encouraging Yearly Passes like they do for Sky Sport NOW.

They might need to charge an extra $1 for Sky Sport too for Sky Box customers. Need to be more careful here though. Will be easier to push this through as part of a competitive broadband bundle I think.

you said SKY would be @ 1.2m subs because of streaming...



Just face it, Neon and RugbyPass are dead. Infact, they were never alive to begin with. It was Martin's big dream that never materialized. Streaming was the reason for the 'under the bus' placement last year. Total disaster for the company, and the longer it holds onto streaming, the greater the risk going forward. Sky is just a media aggregator with no outside broadcasting facilities. It can't compete in the streaming world and never will. It doesn't have to though, it just need to focus on what it does best.

The streaming platforms are attractive from a takeover point of view. The box customers are good as they are potential streaming customers in the future, or at the very least when the new Skybox comes out it can be used as an intermediate to streaming.

You need to let go of the fact that Sky will never be a stand alone high dividend paying business. Nor will it ever be a telecommunications company. Sky broadband will likely be a flop.

Like what Sophie said, the value is in THE CUSTOMERS. Just need to sell them all off to Discovery for $500m. Then we can close this thread and never talk of Sky again!

[LaserEyeKiwi]

The broadcaster believes there is a “substantial addressable market” of 338 million rugby fans worldwide, with the site receiving three million views a month. But that hasn’t stopped it accumulating $14.5m in losses and writing down its carrying value from $38.4m to $10.9m.
On Tuesday, CEO Sophie Moloney said Sky had “crushed down all of the streaming-related costs [on RugbyPass] ... so that whilst it’s still not break-even, it’s a lower-cost operating model that we’re moving forward with”.

[steveb]

wonder who will be fronting up with the production costs?What will happen to the sky sport commentators who I think from a kiwi point of view are the best in the world.And of course will NZ rugby do a deal with prime or perhaps TVNZ?

Interesting times indeed

[daveypnz]

wonder who will be fronting up with the production costs?What will happen to the sky sport commentators who I think from a kiwi point of view are the best in the world.And of course will NZ rugby do a deal with prime or perhaps TVNZ?

Interesting times indeed

There shouldn't be any production costs other than whatever it costs for RugbyPass to stream the broadcast, nothing will happen to the sky sport commentators.

This has nothing to do with Sky's rugby deal in New Zealand, there won't be any deal with prime or TVNZ. Sky have the sole rights to Super Rugby in New Zealand.