Foxtel slams TV rip-off claim

[dallymessenger]

one of those articles from masters mentions the following :

the NRL TV rights are bought by a company called PMG Media, which is jointly owned by Packer and murdoch. they onsell the nrl rights to Foxsports for around $50 million more than they pay for it.

when looking at the expensive AFL contract PMG refused to pay it, preferring Foxsports buying it directly.

Foxtel commented that they are using the profits they make on RL to cover the losses made on AFL so they can expand into southern states.

 

[dallymessenger]

RL games get from 250,000 - 300,000 viewers.

assuming 200,000 viewers are for RL and would cancel, then they are worth :

200,000 x $30/month x 12 month / year = 72 million pa.

this excludes also advertising which foxtel charges during games.

id say the NRL rights are worth $100 million cash a year less production costs.

 

[East Coast Tiger]

And why the f**k is AFL seen as having more potential for growth than RL anyway? They've already got a team in every major market and they still can't get decent numbers. RL is absent in two of the five big capital cities and is still realtively new to Melbourne so surely that's where the big room for potential growth is.

 

[yappy]

"Wrong. The value of the rights is based on how many new subscribers will be attracted by the coverage.

And here is the crux of why Super League occurred and why C7 was run out of business. If there was competition in Pay TV he wouldn't dare make such a comment - in a competitive environment it's always easier to retain your existing customers and they'd be paying top coin to make sure their competitors didn't get the league and have all those subscribers send back their boxes.

Unfortunately competition in the PayTV market ain't going to happen until TV over internet comes along, and even then we'll probably still have the News Ltd cancer half owning the game and gouging the eyes out of it.

 

[flamin]

to put it in another posters words on another forum, for those that don't understand bussiness.

Yet if you don't have Sport A you stand to loose 1.8 million viewers, 800000 viewers more than if you don't have Sport B.

Yappy is right. The NRL is almost run for television companies especially PayTV, yet the lack of competition in PayTV is hurting.

 

[VictoryFC]

I think you should lay the blame off the Foxtel head or anyone involved with Foxtel. This was, by and large, our fault in negotiation.The broadcasters will offer as little as possible, they have no agendas in giving one code more money over another, Leagues chiefs need to take a 101 in bargaining and negotiatiating.

 

[Canard]

Thanks Digga arse hole that means a lot coming from a STAUNCH League supporter like you.

It really makes me think!!

 

[Ryan]

So, if EVERY Rugby League fan canceled their Foxtel, and re subscribed ONLY because Rugby League is on Fox, we'd get extra money? Does this mean the power is in the consumers hand?

 

[Digga Hole]

Thanks Digga arse hole that means a lot coming from a STAUNCH League supporter like you.

It really makes me think!!

Touche

 

[eastsrule]

Canard has to be dallymessenger...

 

[Munky]

On a kind of related note, does anyone know if Channel 9 ever plans to screen NRL games in HD?

I bought a fandangled super size TV this week and the games last night looked liked oversized Youtube videos.

 

[yappy]

So, if EVERY Rugby League fan canceled their Foxtel, and re subscribed ONLY because Rugby League is on Fox, we'd get extra money? Does this mean the power is in the consumers hand?

Of course. Just as if every League fan stopped buying the Tele or Courier Mail and let them know it was because of what News was doing to the game they'd soon stop doing it. Murdoch however knows that the vast majority simply couldn't be arsed and will be happy to cop whatever crumbs he throws their way.

 

[j0nesy]

I think you should lay the blame off the Foxtel head or anyone involved with Foxtel. This was, by and large, our fault in negotiation.The broadcasters will offer as little as possible, they have no agendas in giving one code more money over another, Leagues chiefs need to take a 101 in bargaining and negotiatiating.

You've hit the nail on the head. The NRL, despite being in a fantasic bargaining position, have negotiated a relatively weak deal for the game.

 

[El Diablo]

all the NRL has to tell this merkin is that unless they pay good coin they won't get it and there goes half their subscribers

can't believe how a CEO would take things for granted. f**k Williams. low life merkin

 

[bulldog]

I'm hoping Searle or Crowe might come out and say just that, the potential for lost subscribers is MASSIVE if they lose the rights to the NRL. They know it, we know it, someone with balls who can be heard needs to say it.

 

[Hanscholo]

What williams says is true. The NRL sold Pay TV on the east coast. And when they are done selling pay tv they'll pay what they want for the right. We have been saying this all along, thankyou for admiting that Fox wouldnt exist on the east coast without RL.

Do what i did..I pissed the merkins off. I watch my teams games at the pub and free to air. I wouldnt give them the time of day.

 

[yappy]

all the NRL has to tell this merkin is that unless they pay good coin they won't get it and there goes half their subscribers

can't believe how a CEO would take things for granted. f**k Williams. low life merkin

That's the problem though isn't it. There is no alternative Pay TV operator to go to. It would take an NRL CEO with balls the size of the Olgas to tell Foxtel to go jump. The league would probably go bankrupt without the money and News Ltd would obviously not let it happen anyway.

But geez that would be an interesting Mexican stand off to watch wouldn't it. Who's gonna blink first - the footy comp bleeding without the Pay TV dough, or the Pay TV operator losing it's subscriber base at the speed of light.

 

[yappy]

thankyou for admiting that Fox wouldnt exist on the east coast without RL.

Fox wouldn't exist full stop. Super League happened because Optus Vision had the league. Without league Foxtel was a worthless joke and Optus was growing and set to become the dominant player if not the only player in the end.

 

[Edwahu]

Does anyone have the ratings growth for AFL v NRL pay audiences since the deals were done?

I had a quick look at the Pay ratings from 06 v 08 for Rugby League on the SMH tribal mind / who we are blog. It suggests Leagues audience for the top rating game each week from approximately 200,000 to 290,000.

I would be interested to see the increase in aggregate and average growth in viewers for the two codes since the deals were signed. That wold establish how credible the Foxsports argument is.

 

[Man_of_Steel_1982]

The NRL should split the NRL coverage into two groups of 4 games per round, allow anyone to bid but cap fox to one group of 4 games...

8 games split between...
- Nine & Fox
- Seven & Fox
- Seven & Nine

Or all games on FTA...
- Nine & Seven
- All on Nine
- All on Seven

Adding Seven to the mix would drive the deal through the roof.