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NRL Digital Arm

Discussion in 'NRL Media Watch' started by Captain Apollo, Mar 2, 2020.

  1. Captain Apollo

    Captain Apollo First Grade

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    Not sure if this is the right section, so to Mods/Admin, feel free to move it if need be.

    The following was published today by the Sydney Morning Herald (of all places it was in the business section of the printed paper)-

    Hope that Mr V'landys holds firm against Nine and Fox on this one
     
    taipan likes this.
  2. Diesel

    Diesel Coach

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    Sounds positive as long as Nine/Fox/Telstra don’t try to take it off their hands
     
  3. Danish

    Danish Referee

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    Does NRL digital cover watchnrl.com, the offical overseas streaming site/app? I’d be f**king devastated if that got removed or taken over by Nine
     
  4. Fangs

    Fangs Bench

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    Smart, looking forward to seeing some actual results.
     
  5. Mr Angry

    Mr Angry Not a Referee

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    lol

    One the worst sites. nrl.com.

    How do they get paid?

    Really, the most over paid, wannabes ever.

    Shyte service.
     
  6. Last Week

    Last Week Bench

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    This was John Grants baby. But, I thought he was all that was wrong with the game? Him and Dave Smith.
     
  7. wazdog

    wazdog Juniors

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    Pretty certain it does. Watch NRL is a partnership between the NRL, Fox Sports and Fox Sports StreamCo.
     
  8. Perth Red

    Perth Red Immortal

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    Be interesting to see if they eventually go to their own live streaming service for games. I suspect with fox users switching increasingly to Kayo that news ltd won’t want it to happen.
     
  9. Mr Angry

    Mr Angry Not a Referee

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    I watched some nrl.com stream during the trials.

    A survey kept popping up on the right side of my screen, asked a few questions, but there was no way for me to say ok or submit, my only choice was to close it.

    They are probably wondering we they got f**k all feedback.

    It is a sad website, always has been.
     
  10. Hello, I'm The Doctor

    Hello, I'm The Doctor First Grade

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    The articles are basically the same, but the video department is DEFINITELY improving
     
  11. Hello, I'm The Doctor

    Hello, I'm The Doctor First Grade

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    I have always been suspicious about articles claiming Vlad wants to get rid of the Digital department....

    For one thing, there are 7 other Commissioners who were there for the creation. Vlad isnt a dictator, he would need all of them to agree to tear the f*cker apart which I just dont see happening.

    It seems more like the media groups who were against this wanted to put the idea out there hoping that Vlad might take it up and do what they want. He would be paid with massive amounts of good press from them, so i would understand the strategy and the appeal on his part
     
  12. Perth Red

    Perth Red Immortal

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    Last year digital revenue was $24mill. Costs to run unknown. I suppose if someone offered significantly more than this you’d be silly not to consider it.
     
  13. tri_colours

    tri_colours Juniors

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  14. Perth Red

    Perth Red Immortal

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    Whose going to spend a $billion on a $24mill annual revenue with significantly less profit margin? Let’s be generous and say it makes $10mill profit a year, that’s a lot of years to get a return lol.
     
  15. tri_colours

    tri_colours Juniors

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    We all know why your so bitterly against it PR, Understandable, the article must be very embarrassing. LoL
     
    Last edited: Mar 6, 2020
    taipan likes this.
  16. Perth Red

    Perth Red Immortal

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    nice avoidance of the topic, can you explain how something of that level of revenue/profit can have a value of $1billion?
     
  17. tri_colours

    tri_colours Juniors

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    I wasn't avoiding anything. I would assume this auditor has better credentials and could give a better evaluation than some one sitting in front of a computer.
     
  18. Perth Red

    Perth Red Immortal

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    take a punt, how would you see a service bringing in the amount digital does being worth $1billion? Short of dropping fox and putting games on digital it can’t possibly. If you can think of anyway it can be I’m all ears.
    The actual article in the smh says it “could” be worth $1billion “eventually” lol
     
  19. tri_colours

    tri_colours Juniors

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    It has uses in a number of areas and there is little doubt it could be adapted for more. the time frame mentioned was 2 years, not some time in the future or eventually. And if yearly revenue contiunues to double the way it has who knows.

    You've basically answered your own question . At the next right negotiation a fox competitor, like this could force it into paying extra .

    Something like this could also be relevant -

    https://www.cmo.com.au/article/671541/digital-story-behind-hisense-nrl-sponsorship-agreement/

    Who knows,
     
    taipan likes this.
  20. Hello, I'm The Doctor

    Hello, I'm The Doctor First Grade

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    Ok, ill have a crack...

    Valuing a company is pretty tough. A good place to start is a regular dividend-paying company. Their value is about 20x their annual profit. So that rule would put NRL Digital at about $200mil. Except that is for an established company that isnt expecting above-trend growth.

    NRL Digital has only been around for what, 5 years? And they are already profitable which is incredible for a tech company. They have massive growth potential (i am pretty sure i remember DSmith a few years ago putting the number of people with at least a passing interest in NRL at 7 million).

    Then we consider that digital providers have a massive marginal profit for additional users. Since the content is already made, 100% of the money for one additional coster goes to profits. So as NRL Digital becomes more popular, costs wont go up.

    Finally, NRL Digital will have a much easier time monetizing their content than, for example, an online newspaper. Beyond the advertising revenue, they can also advertise their own products for free (with individual costumer info, this will be huge for ticketing and merch sales). And this isnt even mentioning that NRL could take their game broadcasting inhouse and go for total vertical integration (thanks to fox customers are already used to paying to watch football, so they wont be shocked when the NRL is charging for the streaming service)

    So yeh, based on current trends, recent performance and all of the potential infront of them, i think $1bil would be a fair calculation....
     
    axl rose and tri_colours like this.

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