2023-2028 next tv deal discussion

Discussion in 'NRL Media Watch' started by Perth Red, Nov 27, 2019.

  1. Get Rid of The Donkeys

    Get Rid of The Donkeys Juniors

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    Would that prevent Foxtel from broadcasting the Sunday games on Kayo?

    Both Stan and Kayo are steaming services that use the internet, so it would be interesting to see how that played out. I remember Optus getting sued by the NRL for using a cloud service so people could pause and rewind FTA. The courts ruled it infringed on the copyrights of the licenced broadcasters.
     
  2. colly

    colly Juniors

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    Foxtel bought the rights to show all games on Foxtel pay Tv and internet, Like, ie Foxtel Go and the latest internet product Kayo, which I use. So we sold to foxtel however it was not exclusive in regards to internet /streaming. Since we own it (NRL) we have the right to sell it!.
     
  3. Get Rid of The Donkeys

    Get Rid of The Donkeys Juniors

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    So the mobile rights would probably be encoded with a filter that prevents them from being displayed on a large screen. When cast to a TV it would probably crop the video in a mobile phone sized area.
     
  4. The_Wookie

    The_Wookie Juniors

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    Ok going back to 2017 to include the Fox Ratings for that year (the only year we got any Fox breakdowns).

    2019 Brisbane FTA Ratings
    Broncos Ave - 175,000
    Other QLD team Ave - 121,000
    Non QLD team - 106,000

    2018 Brisbane FTA Ratings
    Broncos Ave - 177,000
    Other QLD team Ave - 149,000
    Non QLD team Ave - 112,000

    2017 Brisbane FTA Ratings
    Broncos Ave - 227,000
    Other QLD team ave - 152,000
    Non QLD team ave - 129,000

    2017 Brisbane FOX ratings
    Broncos Ave - 61,000
    Other QLD team Ave - 47,000
    Non QLD team Ave - 40,000
     
  5. colly

    colly Juniors

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    The NRL control the media (DRM) Digital Rights management
    https://searchcio.techtarget.com/definition/digital-rights-management
    So why should the NRL make a sub-set product which they control- to make a weak TV (cast) product. They wont.
     
  6. Perth Red

    Perth Red Immortal

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    you keep making that assumption, I’ll be staggered if that is the case given80% of foxes customers during the life of this extension will be on kayo. Why would they agree to another streaming service having equal rights in direct competition to them?
     
  7. Perth Red

    Perth Red Immortal

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    thanks Wookie, be interesting to compare numbers in same time slots for a more accurate comparison.
     
  8. Cactus

    Cactus Juniors

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    Could the real question you are posing there maybe phrased this way :

    what is the actual real world value of "exclusivity" within the pay tv/streaming broadcast contract ?
     
  9. Johnny88

    Johnny88 Juniors

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    V'landys dismisses reports AFL got a better deal out of TV partners

    When NRL-loving New Yorkers woke in the early hours of yesterday to watch the Sea Eagles versus Broncos clash on Fox Sports 1, they found an AFL match screening instead on the Murdoch-owned US network.

    Matt Astill, a former lower-grade Manly player and past owner of a popular Manhattan bar, said, “I got up this morning to watch my 'tails and it was bloody Collingwood v Richmond! I turned it back to the Korean baseball on ESPN!”
    It was not the only victory the AFL appears to have won overnight.

    Moments before the kick-off of the resumed AFL season at the MCG Thursday night, chief executive Gill McLachlan announced a revised TV deal which Melbourne media has declared superior to the arrangement ARLC chairman Peter V’landys negotiated with the NRL’s broadcast partners.

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    V’landys dismisses the reports, saying, “Nobody is correctly reporting what our deal is and I’m pleased they’re getting it wrong because it shows both us and our broadcasters have maintained commercial confidence.”

    For two weeks now, the AFL has been briefing contacts that the NRL was short-changed in its revised deal with Nine Entertainment Co. (the owner of this masthead) and Foxtel.

    Such boasts could not realistically be made unless the AFL was confident of achieving a better outcome at a time broadcasting rights worldwide are coming down and sport has been impacted by COVID-19.

    The AFL conceded a discount roughly half that agreed to by the NRL after negotiations with its broadcasters, according to reports.

    The reduction the AFL granted their long-term FTA rights holder, Seven West Media, on its $150m annual payment was reported as 19 per cent, or a $87m benefit to Seven for the period 2020-22.


    Nine reported to the Stock Exchange it had saved $27.5m in each of 2021 and 2022, the final two years of its five-year contract with the NRL.

    This represents a 23 per cent reduction on Nine’s $120m average annual payment, although the discount for the shortened 2020 season is reported to be greater. However, while Seven has also won a two-year extension, now owning AFL FTA rights until the end of the 2024 season, Nine declined to renew their NRL rights past 2022.

    Seven’s extended deal is reported as averaging a cost of $147m a year, only a fraction less than what the 2017-22 contract specified.

    However, V’landys insists, “We’re very confident what we’ve done, more so now after seeing what Seven reported to ASX.”


    Insofar as Seven’s net debt sits at $541m, while Nine has a superior balance sheet, it would appear the AFL’s long-term broadcaster has been more desperate to retain their rights than Nine, despite the NRL grand final and State of Origin matches filling four of the top five TV programs nationwide, annually.

    The AFL was not able to secure an extended deal with Foxtel, presumably because it would not agree to the discount its pay TV partner sought.

    Foxtel is reportedly paying $30m a year less for 2020-22, the remaining years of its $1.3 billion, six-year contract.

    However, V’landys awarded Foxtel a five-year extension for an undisclosed fee, handing the Murdoch-owned network NRL pay TV rights until 2027.

    V’landys refuses to reveal the amount Foxtel paid, or the discount it received for 2020-22, but industry sources say the extended deal is consistent with the $1.1b over five years Foxtel paid the NRL before COVID-19 hit.


    Analysts say that unless the Foxtel annual payments have CPI adjustments, the real value of the 2027 fee will be significantly less than the payment made in 2018.

    The AFL also announced a continuation with mobile rights holder, Telstra, paying $50m a year. Telstra, who pay the NRL $20m a year under the existing deal, recently announced they had not been party to the revised deal with Nine and Foxtel.

    Past broadcasting rights deals have been trumpeted in the media down to the last decimal point of the billion-dollar figure but, with the NRL yet to secure an extended FTA deal and the AFL yet to join with Foxtel in a long-term pay TV deal, comparisons are guesstimates.

    Nevertheless, V’landys insists his TV dealings have secured the long-term future of the code.


    “The proof is in the pudding,” he says. “We’re giving NRL clubs more money, the players have only taken a 20 per cent cut and we’ve got no borrowings. We’re very comfortable where we are at.”

    https://www.smh.com.au/sport/nrl/v-...-deal-out-of-tv-partners-20200612-p5521d.html
     
  10. Perth Red

    Perth Red Immortal

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    V’landys dismisses the reports, saying, “Nobody is correctly reporting what our deal is and I’m pleased they’re getting it wrong because it shows both us and our broadcasters have maintained commercial confidence.”

    afl ceo has no problems telling the world they have agreed to a $70mill cut from seven for the three years, so why the coyness Vlandys?

    nine have stated the savings expected are $120million, why the shyness about how much of that is direct revenue reduction to the nrl?

    However, V’landys insists, “We’re very confident what we’ve done, more so now after seeing what Seven reported to ASX.”

    ie oh sht, I hope I’m gone before people find out what we agreed to, lol
     
    Last edited: Jun 14, 2020
  11. Perth Red

    Perth Red Immortal

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    well it would be like selling three fta games to nine, then selling the same games to ten. Knowing that foxes future lies in kayo do you honestly think they’d have signed another 5 Year extension ok with the prospect of nrl selling all the games to a competitor as well? I’d be surprised if the pulling of streaming rights from Telstra wasn’t at foxes insistence, taking the main streaming competitor out of the equation.
     
  12. taipan

    taipan Referee

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    The Herald Sun's Michael Warne, and it's a pay wall job ,maintains V'Landys could teach the AFL a lesson on negotiating.
    Lisping Wilson on the fluffsiders stated she heard both deals for AFL and the NRL were good deals ,and both should be extremely happy.
    Stensholt in the Australian felt the AFL deal was better, then stated but the NRL has digital to play with and FTA after 2022, so they are in a position to get one back on the AFL.
    The SMH one is an each way bet.
    In fact Abdo was also involved in the negotiations, so you are making it up not knowing, what went on.Just your usual negative sh*t which anyone can do for effect.The fact 3 media organisations have differing views is an indication ,they are guessing.The annual reports will spell it out in a few months and again in 21/22,so I doubt V'Landys is shivering at your suggestion.he would have also consulted with teh Board.

    If there's a confidentiality clause so your competitor is deliberately left in the dark and breaking it involves a penalty, then good luck blabbing.Under Greenberg too much in the way of leaks was the norm.That's why the journos flocked to him for scoops.

    We don't know whether V'Landys & Abdo put the screws on Nine, for 2023 onwards,for a better deal and they froze.The comparisons on the extensions are chalk and cheese ,what you could lose now, you make up for it later.
     
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  13. magpie_man

    magpie_man Juniors

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    What's the story there???
     
  14. mongoose

    mongoose First Grade

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    I was at the Eatons Hill Hotel in Brisbane on Thursday night and there were more TVs playing the Collingwood vs Richmond game than the Broncos game, let that sink in. Was there a crowd of people watching the AFL? NO!

    Its not the first time ive seen this happen either, the NRL needs to get on top of it.
     
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  15. Cactus

    Cactus Juniors

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    I wasn't attempting to debate the merits of that subject with you. I was rather suggesting an alternative question to your original point. But never mind.
     
  16. taipan

    taipan Referee

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    I'm going to add further to my earlier rant.Today's Herald Media & Marketing (pay wall unfortunately))under heading Cracks widen in Telstra's 'bits and pieces' media strategy after NRL.

    https://smh.com.au/business/compani...-strategy-after-nrl-snub-20200614-p522dy.html
    The reference is correct ,but when you click on it it comes out discussing modified crops WTF.

    Some extracts out of a mountain of fluff.
    " It was a move by the ARLC chairman Peter V'Landys that Telstra did not see coming.Buried in the fine print of the nRL's extended rights deal with pay TV operator Foxtel was a decision that almost slipped by unnoticed :Telstra customers would no longer be able to stream NRL games on their phones for free from 2023 onwards.
    Mr V''Landy's. manoeuvre to cut Telstra out was designed to put the NRL in a stronger position in upcoming negotiations with its FTA broadcaster Nine Entertainment Co(owner of this masthead) which are certain to be hard fought and involve much more money.
    Nine had already loudly signalled that it was not prepared to blindly pay top dollar for sports rights anymore ,especially ones that are not exclusive and when that exclusivity does not extend to the digital realm.By cutting out Telstra, V'Landys was betting that he could make more from his FTA deal."

    Maybe V'Landys is not the dill that some make out.
     
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  17. Perth Red

    Perth Red Immortal

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    or maybe he could have got Telstra to pay $50mill a year if he was as good as everyone thinks?
     
  18. magpie_man

    magpie_man Juniors

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    Wow, that's absurd.
    PVL needs to get on top of this.
     
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  19. colly

    colly Juniors

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    Looking at the story below it looks like th NRL did good compared to AFL. Or as some Suun Heald repoter said, "We got schooled by the NRL in negotiations, Michael warne.

    So irt looks like the AFL paid discounts of around 170 million over the 3 remaing contract years AND including 90m from Foxtel over the 3 years.

    Grand Total AFL 170 m



    https://www.theaustralian.com.au/sp...s/news-story/efb0f79d9c3a9e8d312b7a91c7e79596
    Broadcasters switch their focus to a cutting cricket’s fees
    [​IMG]
    Cricket Australia will be the next target for broadcasters seeking a review of their rights fees following the COVID–19 pandemic. Picture: Michael Klein
    Broadcasters will now turn their attention to cricket and seek a reduction in rights fees for the summer sport, after achieving about $300m in savings from what they pay to the AFL and NRL.

    Cricket Australia will this year enter into the third season of a record six-year $1.18bn domestic broadcast deal with Seven West Media and Foxtel but broadcasters have already indicated they want to renegotiate the deal in light of the media landscape.

    Relive the ICC Cricket World Cup 2019 on KAYO. Watch complete and condensed replays of the biggest matches. New to Kayo? Get your free trial now & start streaming instantly >

    But if the broadcasters achieve similar savings to that for the football codes, cricket may receive $25-35m less per season from the upcoming summer onwards.

    Seven late last week managed to re-cut its AFL rights deal until 2022 as well as extending the contract to the end of 2024. It told the ASX it expects to save $87m until 2022, though that figure could be more than $120m through to 2024 including production and other associated costs based on the previous value of its contract.

    It is paying $730m cash and contra for the AFL over the next five seasons, with the contra component believed to be up to $50m.


    The free-to-air network is understood to have negotiated a cut in its AFL fees of up to 17 per cent and will almost certainly seek some savings on the rights fees it is paying for cricket and the Tokyo Olympics, which have been delayed until 2021.

    Similarly, Foxtel struck a deal to pay about $90m less for AFL rights for the next three years through to the end of 2022. It also negotiated substantial savings on its NRL deal and extended that contract until 2027.

    When asked if cricket was next on the broadcaster’s hit list, one network executive told The Australian: “Yes, 100 per cent.”

    Seven is paying about $75m cash for the cricket rights and $7m contra every year, for a contract that lasts until the end of the 2023-24 summer season. The amounts are paid in three instalments between September and March each season. Foxtel pays almost exactly $100m in cash in the same period and about another $10m in contra arrangements.

    After lower-than-expected ratings, Seven reportedly attempted to sell its share of the cricket rights to rival Ten Network earlier this year, only to be rebuffed.

    But in a clear sign the network believed the rights to be more expensive than their value, Seven took a $52m provision on onerous contacts, including its cricket deal, when it announced its half-year financial results in February.

    In an email from Cricket Australia management to The Australian Cricketers Association in early June, the governing body indicated that broadcasters may ask for a discount on their contracts.

    It said “Australian Cricket Revenue” could fall by $240m over the next two summers from previous forecasts due to crowd restrictions, lack of stadium income and “reductions in the value of commercial and broadcast assets”.
     
    Last edited: Jun 15, 2020
  20. taipan

    taipan Referee

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    Why? Unless one knows how the Telstra deals with AFL and NRL were formulated.If the AFL has near 1m members that could have helped. Again we are p*ssing in the wind.

    You have shown often ,to be pretending to know what has occurred in the latest Tv deals.The fact there has been at least 3 different interpretations of the outcome ,from people within the industry, shows making comments we got shortchanged is pure dumb guesswork.

    He got Foxtel to extend to 2027, yet AFL still has no extended deal.The AFL only had their extended their deal by 2 years.
    Does that mean AFL are sh*t negotiators?
    Or I repeat ,close to home, maybe V'Landys is not the dill you make him out to be.
     
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