Zero is the new black OR Time for NRL to look at streaming.

[Slackboy72]

From the Australian Financial Review

http://www.afr.com/business/media-a...wth-to-stay-at-zero-says-citi-20150422-1mqcki

Free-to-air television networks have failed to deliver meaningful advertising growth for the last two years and will fail to deliver growth over the medium term.
That's the view of Citi, which has issued a bearish note on the sector called "Zero is the New Black", quantifying the impact of subscription video-on-demand services such as Netflix on the financials of the networks.
...
Citi's lead media analyst, Justin Diddams concludes: "It's getting tougher to deliver earnings growth with limited revenue growth and ... competition remains fierce among existing networks and new entrants."
He has lowered his revenue growth and earnings forecasts for both Nine Entertainment Co and Seven West Media, which he rates as a "neutral"....
...
He concluded that advertising growth could prove challenging to deliver as audiences fragment further.
He has lowered his free-to-air TV advertising growth expectations to 0 per cent growth (from 2 per cent) across the medium term, saying: "TV is still not dying but it's getting tougher to deliver growth."
...
Citi forecasts free-to-air TV audiences declining (in real terms) by 2 per cent year-on-year for the next three years.
Meanwhile it forecasts the total "video" advertising segment to increase 3 per cent or more year-on-year in coming years "reflecting the increase to inventory across online and payTV platforms".
...

Edited for brevity.
The key takeaway is that NRL is mostly funded by the sale of FTA and pay TV rights.
The ability of those who pay for that is being impinged by falling viewing numbers (not necessarily for NRL) and stalled advertising revenue.
If the NRL is to grow, and more importantly if more than 2 out of 16 clubs are to remain profitable, then revenue from TV rights needs to increase or they have to get it from elsewhere.
Streaming their own content (sort of like how the NBA, MLB, NHL and NFL do) instead of relying on the Pay TV rights owners to handle it (for a pittance) seems like the obvious choice.
How long before the penny drops for rugby league administrators?

 

[aqua_duck]

The NRL does have its own streaming service, it cost about $100 a year for NRL digital pass. In saying that as someone who pays $200+ a year for NFL game pass, I reckon I get more value out of the NFL service

 

[Slackboy72]

The NRL does have its own streaming service, it cost about $100 a year for NRL digital pass. In saying that as someone who pays $200+ a year for NFL game pass, I reckon I get more value out of the NFL service

The thing is the NRL pass is run by Telstra.
Telstra get feeds from Fox Sports and Nine (delayed).
You pay money to Telstra for a less than standard definition feed.

Other sports own and create their own content.
The NRL does not. they sell the right to internet streaming for a pitiful amount.

 

[nrlnrl]

The thing is the NRL pass is run by Telstra.
Telstra get feeds from Fox Sports and Nine (delayed).
You pay money to Telstra for a less than standard definition feed.

Other sports own and create their own content.
The NRL does not. they sell the right to internet streaming for a pitiful amount.

The way the NRL handle a lot of things, am I right in thinking the games are shown in black & white ?