The TV rights thread

[Tigger Madness]

It would be catastrophic for Fox if it lost NRL. You can talk about potential new subscriptions all you like but if 70% of your existing client base suddenly drops you, it spells death for any organisation.

 

[beave]

If fox lose the rights to the NRL, I cancel my subscription and at a guess, I'd say 90% of people in QLD and NSW would do the same.

The thing is, if there is an alternate to pay TV (shared games between 2 of the FTA networks) and they pay similar, Foxsports will have to start showing us the money because what advantage does the NRL in letting fox have the rights without the compensation of $$$$ in return??

over half of the countrys population live in QLD and NSW, does anyone really think that they can afford to run the gauntlet and lose their rights to the NRL??? The thing is, we will need an alternate to them, hopefully ONE HD come on board.

 

[cleary89]

It may be cutting off your nose in spite of your face or what ever it is, but if one HD offered a decent deal for fox's games, give it to them.

One HD will get massive numbers, bigger than what fox gets now. Fox will lose a sh*t load of customers. Come the next deal, will be huge.

 

[In-goal]

If they don't pay good amount, give it to free too air instead. Everyone will get rid of fox. At least 2/3 of the people I know would.

So what your saying is, if FOX only offer the same amount of money (Which they wont, their will be a %increase based on inflation), give the rights to FTA for less?

FOXSPORTS will continue to offer the same great coverage they have done over the past 10 or so years, whether or not they should pay more is totaly upto the other networks plain and simple.

 

[cleary89]

Yeh, I'd rather free to air get rights for a bit less.

More people watching, more money from sponsors. Will show that the other games will go well on free to air, and will increase the worth of the tv rights in the long run.

 

[Billythekid]

Some of you have no understanding of Foxtel and it's need/desire to spread itself through as many Australian households as possible.

I understand it completely.

The Nothern States of Australia already have a good subscription %. Fox want more people to sign up, it's the old spend money to make money policy.

Yes but the question is how long can they continue to pay overs with little result?

The AFL is the goose that can lay the golden egg for fox, they know that if they can secure a larger % of matches and overall coverage, more southern and western Australians will buy in.

Yes we have been hearing this for how many years now? How many millions have they poured into their AFL rights waiting for this golden egg to be layed?

How much extra are they getting from the AFL to make this worth it? Are they getting extra games or something that will lead to further growth?

Clearly they see some value in the AFL and i can see that but that shouldn't suddenly make the NRL less valuable.

Also as far as i can tell the NRL are helping to lead the growth in Victoria. Fox is pretty much the only place to watch the storm and they get very impressive ratings. Fox is aware of this hence why they are willing to put in so much money to prop up the club.

I find it laughable that some of you can honestly think that the ratings fox recieve for the NRL is a justifiable means for them to spend more! Why would they need to spend more? The market is already buying in, hence they don't see more subscribers looking to buy into pay tv for Rugby League.

Here is my position and the one that the NRL should take when they go into negotiations. The NRL has already laid its golden egg. Fox is completely dependant on its high subscription rate in the northern markets. If they were to lose the rights to the NRL they would be f*cked, their subscription base would tumble overnight.

I find it laughable that you think that the ratings a program gets is completely irrelevant to what its worth on fox.

I understand that growth in new markets is important but that doesn't just make the current ratings irrelevant.

The only method by which the NRL will greatly raise it's TV deal is through competition with the FTA networks, fox won't want to lose games and they will want to protect their asset.

Exactly and this is the reason we should be getting as much as the AFL. Without the NRL fox is stuffed.

The only reason the NRL has been getting less is because of who is doing the negotiating for us. Maybe once we have an unbiased party leading our negotiations we can get what we deserve.

If this dosen't make economic sense to you, perhaps you need to read less Roy Masters and look to the finacial review.

I don't read Roy Masters as i can form my own opinions thankyou.

 

[Billythekid]

So what your saying is, if FOX only offer the same amount of money (Which they wont, their will be a %increase based on inflation), give the rights to FTA for less?

FOXSPORTS will continue to offer the same great coverage they have done over the past 10 or so years, whether or not they should pay more is totaly upto the other networks plain and simple.

If they won't give us a lot more money we should give the rights to someone else even if its for less. When fox sees the amount of people who cancel their subcriptions they will realise how important the NRL rights are.

Maybe then they will pay us what we are worth. If not then they can enjoy trying to crack the NSW and QLD markets (i.e. more than 50% of the country) without the NRL.

 

[cleary89]

I reckon they should pay massive for that show on the editors of dolly and cleo. Didn't they get 700 people watching in Sydney and 0 in Melbourne?

Clearly that will get more people to sign up, because the people that want to watch it obviously haven't yet.

 

[In-goal]

Billy I understand your reasoning, however, if you owned FOX and you already knew that the rights were almost set in concrete would you pay more?

The old population % is not as relevant at economic viability, for instance their is more wealth in W.A. than their is in Western Sydney. Some times the lines are best read between.

 

[beave]

They don't have to pay anymore $$$ because there is no competition, if ONEHD does have a crack at showing the NRL then fox will have to start showing the money because everyone knows that if they lose the NRL, they lose a hell of a lot of subscriptions in QLD and NSW. Lose those customers, not only do they lose the $$$$ from these people, but why the hell would anyone want to advertise on Pay Tv anymore when there are no people watching it?????? There can be all the wealth in the world over in WA but you have to have eyes on TV sets in this instance and there are a hell of a lot of people in Western Sydney.

 

[Cumberland Throw]

Imagine if there was a second channel package like optus vision that could set up their own competition and televise it

Oh wait

 

[Tigger Madness]

Just because there might not be any competition doesn't mean they can't demand more money. If you take your house to auction and there is only 1 bid of $100 you dont have to sell it. Particularly if you happen to know that the buyers life is over should he not buy your house.

 

[Quidgybo]

Just because there might not be any competition doesn't mean they can't demand more money. If you take your house to auction and there is only 1 bid of $100 you dont have to sell it. Particularly if you happen to know that the buyers life is over should he not buy your house.

But equally our life is over if we don't sell it. It's all well and good to say we can hold out demanding more but if we ultimately don't sell the rights to half our games then we're left with a hole in our budget upwards of $40m per year (ie. more than half the salary cap). We have to sell and Fox know it as much as we know they have to buy.

Leigh

 

[docbrown]

Really? Have you heard something?

Yes. I'm waiting to hear back from someone to get some solid details.

Story goes that Gallop & Murdoch met up the other day and one of the items discussed was how FTA could simulcast live coverage along with Fox sports.

The Nothern States of Australia already have a good subscription %. Fox want more people to sign up, it's the old spend money to make money policy.

You'd be amazed how many of those Northern subscriptions would vanish if they lost the NRL coverage. Not to mention that Foxtel is in the process of purchasing Austar whose penetration is primarily in the NSW & QLD. Almost half those NRL foxtel ratings are from those areas.

But it all seems moot at the moment. I'm waiting to hear more about this 10/Fox simulcast talk. Seems like it will benefit both sides, just not sure where the coin is coming from.

 

[Desert Qlder]

Ten/Fox simulcast sounds perfect to me.

I'd just like to see Nine with the AFL rights, those two organisations deserve one another.

 

[taipan]

Billy I understand your reasoning, however, if you owned FOX and you already knew that the rights were almost set in concrete would you pay more?

The old population % is not as relevant at economic viability, for instance their is more wealth in W.A. than their is in Western Sydney. Some times the lines are best read between.

The simple point is the subscriptions for the nthn NRL states are subsidising the AFL ones,via the contracts.The message is don't burn the bridge that is rpoviding you with the crossing.The ratings and subs are spelt out.The AFL received more last time,yet they have 1 less match.
Fox should get the hint,don't take the NRL/I.C. for mugs in future nor the NRL public.They would look extremely silly if a commercial station paid big bikkies for the whole NRL.Ch 7 could really stuff Fox,if they opened the purse strings..

 

[docbrown]

Ch 7 could really stuff Fox,if they opened the purse strings..

They have the cash to at least make an impact.

Even if they were going head to head with 9 (to avoid the whole package rights issue), they could throw some dosh at MNF and a Saturday game and force Fox's hand.

 

[BuffaloRules]

But equally our life is over if we don't sell it. It's all well and good to say we can hold out demanding more but if we ultimately don't sell the rights to half our games then we're left with a hole in our budget upwards of $40m per year (ie. more than half the salary cap). We have to sell and Fox know it as much as we know they have to buy.

Leigh

If Fox dont offer enough money ( ie less than what they pay for the AFL), then the IC has to really play some hard ball with them...

I would suggest that they say that they are giving the games away to the ABC in the short term, and start up a campaign in the Northern States encouraging people to cancel their Foxtel subscriptions...

If this starting happening in large numbers, then I've got a feeling that Foxtel would come around quickly enough...

 

[BuffaloRules]

The simple point is the subscriptions for the nthn NRL states are subsidising the AFL ones,via the contracts.The message is don't burn the bridge that is rpoviding you with the crossing.The ratings and subs are spelt out.The AFL received more last time,yet they have 1 less match.
Fox should get the hint,don't take the NRL/I.C. for mugs in future nor the NRL public.They would look extremely silly if a commercial station paid big bikkies for the whole NRL.Ch 7 could really stuff Fox,if they opened the purse strings..

The AFL received more last time in the hope that this would drive subscriptions in the AFL states...

Well, it never happened, whether for socio economic reasons that people cant afford it, or the fact that the local teams are shown on FTA anyway, or some other reason...

What would be different this time around?

 

[taipan]

The AFL received more last time in the hope that this would drive subscriptions in the AFL states...

Well, it never happened, whether for socio economic reasons that people cant afford it, or the fact that the local teams are shown on FTA anyway, or some other reason...

What would be different this time around?

I guess the difference is the NRL Tv ratings have held up and grown substantially and dominated for that media outlet.The AFL ones have grown but nowhere near expectations.
That is the reality check Fox has to deal with.
1) acknowledge the fact that NRL will not be duckshoved this time in teh bigger Nrthn markets.
2) there may be an extra NRL timelsot available with expansion.
3) This time all FTA Tv stations will wanta shot at rugb league,and there is no Kerry packer lurking with his fat wallet in the wings.