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Premier League rights value falls

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We should try and sell our SL rights in "packages" with,ideally,no company allowed to hold all of them..

Package 1 - Thursday's (Inc Easter Monday)

Package 2 - Friday's

Package 3 - Saturday's

Package 4 - a Sunday game & SL highlights show..

If sky wanted all the packages then we should stipulate that package 4, game & highlights, must be on Pick TV,the sky owned freeview channel..

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4 hours ago, SL17 said:

Yes,they get to show more for less. With our sport they get to show less, paying less.

How do you mean? Eaxh time ao far they have paid more and shown more.

The Premier League rights are interesting as it shows that for UK rights they have peaked and they will potentially make more by offering more packages.

They also reckon they will see growth in overseas markets.

Maybe the two things RL should be focusing on?

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1 hour ago, roughyedspud said:

They choose to show less you mean. 

Sky own every single second of SL games and choose not to broadcast it all..

Do they?. I thought they could only show a set number of games. Granted it’s up to the which games and under the current deal nobody else can show them. 

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7 hours ago, roughyedspud said:

We should try and sell our SL rights in "packages" with,ideally,no company allowed to hold all of them..

Package 1 - Thursday's (Inc Easter Monday)

Package 2 - Friday's

Package 3 - Saturday's

Package 4 - a Sunday game & SL highlights show..

If sky wanted all the packages then we should stipulate that package 4, game & highlights, must be on Pick TV,the sky owned freeview channel..

If the RFL think they could make more doing to that way, they'd have done it that way. Sky pay for exclusivity. We shall see if they don't mind paying less but getting the same amount of games whilst we sell another package to BT/Amazon...

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7 hours ago, roughyedspud said:

We should try and sell our SL rights in "packages" with,ideally,no company allowed to hold all of them..

Package 1 - Thursday's (Inc Easter Monday)

Package 2 - Friday's

Package 3 - Saturday's

Package 4 - a Sunday game & SL highlights show..

If sky wanted all the packages then we should stipulate that package 4, game & highlights, must be on Pick TV,the sky owned freeview channel..

Problem is that for a large part of the season you are selling slots which are filled with football. A Sunday package has little value going up against super Sunday. It's why we moved from Saturday's. 

That's not to say there isn't value to selling packages or different slots but we have to be much more flexible and innovative in what we sell and how we sell it and really I don't think we are prepared to do that.

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Sky currently pay for the rights to 71 Super League, 17 Championship, 11 Challenge Cup and 1 League One game a year as part of their current deal until 2021.

For Super League and Championship they have also paid for exclusivity for all matches involving two UK based clubs, arguably creating a scenario where the RFL can't really sell off the remaining inventory in the UK (except for when Toronto, Toulouse or Catalans are in the mix), but Sky technically can't show any additional games, however if past seasons are anything to go by, what was sold and what is shown don't line up (ie. I don't recall any L1 games being shown and additional SL games have been broadcasted).

Now I'm sure these limits are just to protect the per game valuation. If the RFL gave away all 169 SL matches + 29 Play Off matches, the per game value  would more than half, assuming Sky wasn't prepared to pay for anymore games (or take on more broadcast costs) which wouldn't be a good look.

Now in terms of trying to change the way we sell our packages, there is arguably plenty of scope to mix it up, however our code has often been reluctant to take on the associated risk (ie. I'm sure we could sell to Sky without exclusivity, but it would possibly cut 20% off the value of their offer, could we make that back through another broadcaster? Through streaming, etc?)

There is also scope for the sport to partner Sky in getting more games on TV in a rev share arrangement (ie. Broadcast costs are shared, and revenue is shared), but not since we tried to get the Championship on Eurosport have we shown such initiative, although potentially we may not have the budget to consider such risks.

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Unfortunately, what this might mean is that the amount TV companies are prepared to pay has now peaked and we'll have to accept a lower price next time round. Let's be brutal - Sky are the ONLY players  for in season live SL matches, the only terrestrial broadcaster that has any interest in covering RL is the BBC and they only want live Cup games (in any sport, not just us). Talk of other online providers is all very well, but who's going to watch them? This would just marginalise RL even more.

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29 minutes ago, Chronicler of Chiswick said:

Unfortunately, what this might mean is that the amount TV companies are prepared to pay has now peaked and we'll have to accept a lower price next time round. Let's be brutal - Sky are the ONLY players  for in season live SL matches, the only terrestrial broadcaster that has any interest in covering RL is the BBC and they only want live Cup games (in any sport, not just us). Talk of other online providers is all very well, but who's going to watch them? This would just marginalise RL even more.

Thing is Super League is good value for SKY and if they bid lower then it just means the product would worsen which wouldn't benefit SKY at all.

Premier League is different as the price has been bloated so much it is no longer good value.

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4 minutes ago, Mattrhino said:

Thing is Super League is good value for SKY and if they bid lower then it just means the product would worsen which wouldn't benefit SKY at all.

Premier League is different as the price has been bloated so much it is no longer good value.

Even more so that Sky is no longer burdened by the Premier League rights that they were, it's given them a bit more breathing space to improve and bid for other content. They have lost quite a lot to BT and won't particularly want to lose more. Competition or the threat of competition will drive our value of rights next time around. That may not come from online bidders, but who knows, the landscape could look very different in a couple of years

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1 hour ago, Yakstorm said:

Sky currently pay for the rights to 71 Super League, 17 Championship, 11 Challenge Cup and 1 League One game a year as part of their current deal until 2021.

For Super League and Championship they have also paid for exclusivity for all matches involving two UK based clubs, arguably creating a scenario where the RFL can't really sell off the remaining inventory in the UK (except for when Toronto, Toulouse or Catalans are in the mix), but Sky technically can't show any additional games, however if past seasons are anything to go by, what was sold and what is shown don't line up (ie. I don't recall any L1 games being shown and additional SL games have been broadcasted).

Now I'm sure these limits are just to protect the per game valuation. If the RFL gave away all 169 SL matches + 29 Play Off matches, the per game value  would more than half, assuming Sky wasn't prepared to pay for anymore games (or take on more broadcast costs) which wouldn't be a good look.

Now in terms of trying to change the way we sell our packages, there is arguably plenty of scope to mix it up, however our code has often been reluctant to take on the associated risk (ie. I'm sure we could sell to Sky without exclusivity, but it would possibly cut 20% off the value of their offer, could we make that back through another broadcaster? Through streaming, etc?)

There is also scope for the sport to partner Sky in getting more games on TV in a rev share arrangement (ie. Broadcast costs are shared, and revenue is shared), but not since we tried to get the Championship on Eurosport have we shown such initiative, although potentially we may not have the budget to consider such risks.

The problem with packages is making sure it is still attractive to the bidders, and doesn't dilute the offering. For example, the Challenge Cup, SL and international rights are natural packages to split. Splitting SL in my opinion would not be worthwhile - you saw Sky did not want to know about only having part of a World Cup offering. The only thing I can see worthwhile splitting is Championship/League 1 rights.

Another interesting development from these rights, is that the online tech companies such as Facebook, Amazon have not come to the fore. The PL didn't even meet it's reserve for the remaining 2 packages they were trying to sell. The landscape may change further in a couple of years but it seems sport viewing on mainstream TV is still most prominent

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There's an interesting article in the FT, which breaks down the new PL deal. Link is below.

https://www.ft.com/content/30b67970-10e9-11e8-940e-08320fc2a277

If you can't access it through the link because of subscription, copy and paste the following in google and then click on the link and it should let you in:

Premier League takes a hit as football TV rights price falls

 

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I liked this quote from Sky on their website:

This great sport sits alongside the best drama, comedy and entertainment, which will include over 50 Sky Original productions over the course of 2018. These content investments across the whole portfolio reflect Sky's continuing journey towards a more broadly-based business which seeks to provide something for every household and everyone in the household

I think RL can be a nice part of a strategy that delivers something for every household and everyone in the household.

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4 hours ago, roughyedspud said:

They choose to show less you mean. 

Sky own every single second of SL games and choose not to broadcast it all..

That isn't true.

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51 minutes ago, Mattrhino said:

Thing is Super League is good value for SKY and if they bid lower then it just means the product would worsen which wouldn't benefit SKY at all.

Premier League is different as the price has been bloated so much it is no longer good value.

Know what you mean. There's a limit to how little sky can pay as they need a decent product for TV. At 2m a year TV money a club, teams can fill up rosters with decent NRL fringe talent and have thrilling matches to watch.

If TV money was halved, how will they have a product for prime time?  SL is a sky staple and is for a good few northern football fans their second choice Sport. For a small minority of sky sports subscribers it's the main reason they have sky... I'm one of em...

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Lets not get too far ahead of ourselves here, the PL have kept 2 packages which will either be floated to FTA broadcasters or more likely to the Netflix/Amazons of the world. This is also still more than double what they got pre 2013 for more games. There's also the argument that 2015s £5.1 billion deal was inflated by the new competition of BT ironically at a time the PL was falling behind the top end of other European leagues. Market forces plain and simple.

Will this affect RL? Probably not. Its peanuts by comparison.

What i can say though is that I don't think this diversification of channels into individual sports has worked in the way Sky hoped it would. More and more people I speak to are getting deals like I've done where Sky give you all the sports channels regardless. Sky Sports PL is essentially pointless as all the games are on main event and the rest is reruns and features (again with stuff like "The Debate" often finding itself onto Main event anyway).

As an aside, with the NRL, SL, Championship, Super Rugby, Pro14, Top14, European RU, 7s and internationals, Sky must be considering a dedicated Rugby channel. The only hiccup I could see is clashes in which case the current two channels arena and action work better. 

 

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4 hours ago, Yakstorm said:

Sky currently pay for the rights to 71 Super League, 17 Championship, 11 Challenge Cup and 1 League One game a year as part of their current deal until 2021.

No...sky have exclusive rights for all of SL but choose to broadcast only 71 games

Sky can pick up any fixture they choose!

Edited by roughyedspud

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33 minutes ago, roughyedspud said:

No...sky have exclusive rights for all of SL but choose to broadcast only 71 games

Sky can pick up any fixture they choose!

Any evidence of that, as that isnt how this tends to work.

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2 hours ago, Tommygilf said:

Lets not get too far ahead of ourselves here, the PL have kept 2 packages which will either be floated to FTA broadcasters or more likely to the Netflix/Amazons of the world. This is also still more than double what they got pre 2013 for more games. There's also the argument that 2015s £5.1 billion deal was inflated by the new competition of BT ironically at a time the PL was falling behind the top end of other European leagues. Market forces plain and simple.

Will this affect RL? Probably not. Its peanuts by comparison.

What i can say though is that I don't think this diversification of channels into individual sports has worked in the way Sky hoped it would. More and more people I speak to are getting deals like I've done where Sky give you all the sports channels regardless. Sky Sports PL is essentially pointless as all the games are on main event and the rest is reruns and features (again with stuff like "The Debate" often finding itself onto Main event anyway).

As an aside, with the NRL, SL, Championship, Super Rugby, Pro14, Top14, European RU, 7s and internationals, Sky must be considering a dedicated Rugby channel. The only hiccup I could see is clashes in which case the current two channels arena and action work better. 

 

The remaining two packages seem pretty rubbish, giving only four weeks coverage a year, hence them apparently struggling to sell them.

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If market competitors come to an arrangement about what a third company can earn from it's product is that entirely legal or are we in the realm of Tory politics "We've done nothing illegal!" once again?

Irrespective there are enough differences between Football and the real thing to work in our favour.

 

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