Maybe. I wonder how the figures would stake up if we kept the remaining five games, made them available exclusively online, and charged $20 per month like we already do for international viewers. Regardless, internet based distribution is going to become a significant factor over the coming years - increasingly marginalising all other television distribution platforms, both subscription and advertiser supported free to air.
Leigh.
Interesting idea, but we would have to solve the problem of people watching games on their computer or ipad, people WANT to watch the game in their living rooms on their TVs.
iinets Fetch TV would do the trick, or Telstras T-Box
Lets have a stab at the sums ourselves...
NRL games are the number 1 reason people get Foxtel in Australia...I wonder how many households that is? We could perhaps figure it out by looking at Foxtel uptake rates in the heartland as opposed to outside.
So the assumption is: The difference in the Foxtel subscription rate in the heartland to non-heartland areas is entirely due to NRL subscribers. Anyone disagree?
For example, if 40% of households in NSW and QLD have Foxtel, and 15% have it elsewhere, that means that 25% of households in NSW and QLD get Foxtel for the NRL
So, I dont suppose anyone has
A. NSW and QLD Foxtel subscription rates?
B. Everywhere else subscription rates?
C. The number of households in NSW and QLD?
(I have seen 1 and 2 quoted on LU before, 3 not sure)
The difference between A and B, multiplied by C equals X
X: the number of households that pony up at the current exorbitant Foxtel rate for NRL games.
Then you could add on a couple of % of all other households for those that get it outside the heartland. (This is conservative)
Now obviously Foxtel get people for an entire year by contract, effectively making people pay for foxtel out of season, whereas our model would work month to month, so we would have to adjust it for that.
Once we have the number of households X, multiplied by the number of months in the season (conservatively say 6, even though its longer) we divide it by what we currently get for the Pay component of our broadcast rights (is it 40m a year???) and we get an amount in dollars we would need to make off each Fetch TV subscriber per month of the season for NRL games.
(X * 6) / $40m = per month rate for NRL on Fetch
If this is much cheaper than a Foxtel subscription, then many more people will get it, and we would be making a bigger
(additionally iinet would need to take a margin, a couple of bucks probably)