The TV rights thread

[hrundi99]

Because its cheap. A company with small costs and medium returns is making a profit, as opposed to what they are now, a company with high costs and medium returns thats making a loss.

A lot of emphasis on here is placed on ratings, but its only half the story, the business of broadcasting doesn't begin and end with ratings, they have to make a profit out of those people watching by selling advertising.

Channel 10 was built on inexpensive American shows (like the Simpsons) reliably capturing the valuable youth demographic. Im not surprised that Murdoch is taking it back to its small, profitable roots.

Maybe I'm missing something but don't higher ratings allow the network to increase advertising pricing?

 

[applesauce]

Maybe I'm missing something but don't higher ratings allow the network to increase advertising pricing?

Exactly if 10 have a small market share their advertising income plummets.

10 are also looking to get rid of the Simpsons because it costs $70k+ to show 1 ep (it is too exy for the rating returns in a 30min show).

10 need a sport, Packer and Murdoch know this. IMO they will be trying to make 10 closer to 9 & 7 through the NRL, while also having a strong FS network that will focus more on AFL from now on.

In a perfect world if 10 were to pay for all NRL they would overtake 9 as the no.2 network, Stokes revenge could then come in the form of holding onto all AFL leaving 9 to slowly bleed. Whether or not 10 will be agressive or pretty passive in their negotiation for the NRL is yet to be seen.

Interesting times.

 

[Jimmy Smooth]

Dont care where the rights go, just want them to be free-to-air. Wouldnt mind it seeing it go to ONE and also 9, but if One can nab it, big big profits await i reckon.

 

[gutterfax]

Maybe I'm missing something but don't higher ratings allow the network to increase advertising pricing?

Yes and No.
Higher ratings shows like B'stard Chef are generally "block" sold......programme sponsors get slots and those slots that aren't pre/block sold do attract more revenue.
But!!!!
Let's say, I own a FORD dealership. I am essetnially a "franchise" and part of the cash that I part(ed) with to be such includes "national" advertising and promotion. If my franchise is situated in Adelaide, then I am not really going to see much benefit from a half time advert in MNF for the NRL.
The reason(s) that the fumbleballers get more cash for their rights is purely about coverage.
Franchise owners (and there are a lot of them about) expect their "national advertising" and the HQ's see the benefit of paying more for an advert that will get National viwers....not mainly stacked in NSW and Brisbane.
NRL gets more viewers without a doubt....but it's where they all are that influences the price paid for the TV rights.

 

[Ray Mosters]

Maybe I'm missing something but don't higher ratings allow the network to increase advertising pricing?

Of course, but that just increases your revenue, not your profit.

If it costs 5 times as much to increase your ratings twofold then you are making a big loss with higher ratings, and you are better off showing the low rating, cheap show, and making a bigger profit.

Sport is expensive to put on, more expensive than the advertising returns, and i wouldnt be at all surprised if 10 is not at all interested in loss leading sport like the AFL and soon-to-be the NRL

 

[applesauce]

Yes and No.
Higher ratings shows like B'stard Chef are generally "block" sold......programme sponsors get slots and those slots that aren't pre/block sold do attract more revenue.
But!!!!
Let's say, I own a FORD dealership. I am essetnially a "franchise" and part of the cash that I part(ed) with to be such includes "national" advertising and promotion. If my franchise is situated in Adelaide, then I am not really going to see much benefit from a half time advert in MNF for the NRL.
The reason(s) that the fumbleballers get more cash for their rights is purely about coverage.
Franchise owners (and there are a lot of them about) expect their "national advertising" and the HQ's see the benefit of paying more for an advert that will get National viwers....not mainly stacked in NSW and Brisbane.
NRL gets more viewers without a doubt....but it's where they all are that influences the price paid for the TV rights.

This deal "should" have a WA team and national (bar SA) coverage.

The thing we have the AFL doesn't is international advertising.

Our alcohol, insurance, cars etc. tends to be available in NZ.

With these new additions there is no reason the NRL is not worth the same if not more. Especially when you look at the spread of TV advertising in Australia on the ThinkTV website.

 

[age.s]

Yes and No.
Let's say, I own a FORD dealership. I am essetnially a "franchise" and part of the cash that I part(ed) with to be such includes "national" advertising and promotion. If my franchise is situated in Adelaide, then I am not really going to see much benefit from a half time advert in MNF for the NRL.
The reason(s) that the fumbleballers get more cash for their rights is purely about coverage.
Franchise owners (and there are a lot of them about) expect their "national advertising" and the HQ's see the benefit of paying more for an advert that will get National viwers....not mainly stacked in NSW and Brisbane.
NRL gets more viewers without a doubt....but it's where they all are that influences the price paid for the TV rights.

How does the same not apply to a Ford dealer in NSW and AFL coverage?

 

[NRLMad]

Looks like the AFL will be getting their own dedicated channel on Foxtel as part of their new TV rights. Would something like this work for the NRL?

I don't like the idea. The principle would be that they make foxtel subscribers pay more than they are already paying for watching League - i.e. they'd charge us $10/month extra.

 

[Phil McGrawhan]

Of course, but that just increases your revenue, not your profit.

If it costs 5 times as much to increase your ratings twofold then you are making a big loss with higher ratings, and you are better off showing the low rating, cheap show, and making a bigger profit.

Sport is expensive to put on, more expensive than the advertising returns, and i wouldnt be at all surprised if 10 is not at all interested in loss leading sport like the AFL and soon-to-be the NRL

AFL is .it returns a loss every yr.
NRL is MAKING money for CH 9.

 

[gutterfax]

How does the same not apply to a Ford dealer in NSW and AFL coverage?

If I am FORD......and I want to place a national TV campaign that will get viewers across the country, then I will chose the AFL coverage at present.
The reasoning is that although more viewers watch NRL, the "spread of viewers across the country is better with AFL.

I don't work in TV, but I reckon that the AFL will have figures that show a better "coverage"....and for the Ford dealers in Hobart, Darwin, Perth and Adelaide an AFL advert is better than an NRL (in the opinion of the TV companies, advertisers and agencies) it would seem.

It's based around perception.......and let's face it....these guys spend million if not billion on advertising...they know what they are doing (as do the TV co's)

 

[ParraEelsNRL]

Yes and No.
Higher ratings shows like B'stard Chef are generally "block" sold......programme sponsors get slots and those slots that aren't pre/block sold do attract more revenue.
But!!!!
Let's say, I own a FORD dealership. I am essetnially a "franchise" and part of the cash that I part(ed) with to be such includes "national" advertising and promotion. If my franchise is situated in Adelaide, then I am not really going to see much benefit from a half time advert in MNF for the NRL.
The reason(s) that the fumbleballers get more cash for their rights is purely about coverage.
Franchise owners (and there are a lot of them about) expect their "national advertising" and the HQ's see the benefit of paying more for an advert that will get National viwers....not mainly stacked in NSW and Brisbane.
NRL gets more viewers without a doubt....but it's where they all are that influences the price paid for the TV rights.

well well well, look who turned up here.

This should be fun, there's a proper trolling forum here called TFC, I'm sure a few of us remember you from RLfans.

 

[Paullyboy]

You're right, the AFL head honcho's are just smarter. They have an inferior product, with minimal interest outside of the southern states and yet they manage to convince people otherwise. They've been doing it since day one.

If the same people who run the AFL had the positive that the NRL has at its disposal, the rights we'd get would be astronomical.

 

[ParraEelsNRL]

Ten will either get a game or two of AFL a week from 7 or they will go for some of the NRL.

They would be mad not to try and get any of the two biggest sports out here, absolutely nuts and I don't think any TV station out here is that stupid.

 

[hrundi99]

Don't advertisers want their ads to be seen by the most pairs of eyes in their given markets?

They wouldn't advertise in markets they're not targetting, so I don't think your argument holds water.

If I'm Ford (generally speaking, a national advertiser) I'd prefer 500,000 people seeing my ad to 450,000 people if I'm being charged the same rate, or if I'm paying the same amount per person and I can afford it I'd still rather have more people see it.

 

[Phil McGrawhan]

Yep .The NNSW regional market is BIGGER than Perth,or Adelaide $$$$ wise,& i think TV execs know this.Three of the four biggest are in RL heartland.
Yet the AFL cheersquad will try to convince you ,advertising in his regional market is not worth anything.

 

[juro]

Of course, but that just increases your revenue, not your profit.

If it costs 5 times as much to increase your ratings twofold then you are making a big loss with higher ratings, and you are better off showing the low rating, cheap show, and making a bigger profit.

Sport is expensive to put on, more expensive than the advertising returns, and i wouldnt be at all surprised if 10 is not at all interested in loss leading sport like the AFL and soon-to-be the NRL

Another aspect of getting a show that rates well is that the network can then advertise its other shows, increasing their ratings. I have ver little knowledge of what shows are on 7 because I don't watch that network. If they had the rugby league, I would watch and would likely end up watching other shows too.

 

[Clobba]

Yep .The NNSW regional market is BIGGER than Perth,or Adelaide $$$$ wise,& i think TV execs know this.Three of the four biggest are in RL heartland.
Yet the AFL cheersquad will try to convince you ,advertising in his regional market is not worth anything.

You should get an absolute bundle then since AFL is apparently getting around 1.1bn, if its not close to it someones delusional...either NRL fans or the TV execs :lol:

 

[Clobba]

Another aspect of getting a show that rates well is that the network can then advertise its other shows, increasing their ratings. I have ver little knowledge of what shows are on 7 because I don't watch that network. If they had the rugby league, I would watch and would likely end up watching other shows too.

Nah I watch AFL on it and its still the only thing I watch on 7...just because they buy rights to the game you love doesnt mean you automatically lose all taste and start watching crap

 

[Raiderdave]

Yep .The NNSW regional market is BIGGER than Perth,or Adelaide $$$$ wise,& i think TV execs know this.Three of the four biggest are in RL heartland.
Yet the AFL cheersquad will try to convince you ,advertising in his regional market is not worth anything.

correct
63% of advertising is written in NSW & QLD

Ford want to show their product where it is going to get most bang for its buck ...
this is highlighted even more in an article I saw recently .. that had the value of a sponsor ( like Ford ) .. getting 3.1 Million dollars a year of return putting their brand on an AFL jumper

& despite being watched in only 2 of the 5 capitals on TV ... & by less then half the number of people live at grounds
the NRL jumper was worth 3 million dollars a year to a sponsor .....

the AFL may have the most capitals in their stable
we have the fans that matter most in ours

 

[Phil McGrawhan]

Nah I watch AFL on it and its still the only thing I watch on 7...just because they buy rights to the game you love doesnt mean you automatically lose all taste and start watching crap

Too late..you admitted to watching Boggerball.