The 2017 Rights Deal Discussion thread

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Ch 10 have just announced a $260 million loss so they may not be able to bid.
$250m of which was related to impairment of tv license, they only lost about $13m, which was better than forecast. They no doubt will need a cash injection in order to bid.
 
To the contrary, the fact they're making losses means they may well have to bid.

You think it's a co-incidence that 10 have been on a downhill slide ever since they lost the AFL rights?

yes and no, without footy the only thing keeping the station afloat is english TV networks buying episodes of neighbours.
but thats because channel 10 haven't had anything worth watching for years.

they over invested in reality shows like big brother and masterchef when those shows lost the glossy the station was ****ed.
 

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yes and no, without footy the only thing keeping the station afloat is english TV networks buying episodes of neighbours.
but thats because channel 10 haven't had anything worth watching for years.

they over invested in reality shows like big brother and masterchef when those shows lost the glossy the station was stuffed.
Thats the attraction of Footy to them. Its a known product, they can predict within 5% or so what the ratings will be. Despite the large outlay, they can run the slide rule over the returns they will get beforehand. They can invest a smaller amount in more reality TV shows, but if they tank badly, they have blown their money. Footy is expensive but safe, dramas and reality shows are cheaper, but they have to make a guess at the return they get for their money.
 
Thats the attraction of Footy to them. Its a known product, they can predict within 5% or so what the ratings will be. Despite the large outlay, they can run the slide rule over the returns they will get beforehand. They can invest a smaller amount in more reality TV shows, but if they tank badly, they have blown their money. Footy is expensive but safe, dramas and reality shows are cheaper, but they have to make a guess at the return they get for their money.

the issue is still whether they can generate enough $$$ to make money off the rights, I've seen claims the rights for the AFL are so expensive channel 7 actually loses money from some matches.
 
the issue is still whether they can generate enough $$$ to make money off the rights, I've seen claims the rights for the AFL are so expensive channel 7 actually loses money from some matches.
Thats the question. And the reason for the need for a slide rule beforehand. Networks pay an amount that is close to the revenue they can generate because of the relative certainty of that income. I would guess they would go in to a season knowing that if they averaged the costs of the rights over each weekends fixtures, the costs would be greater than the income sometimes, but the deal is done based on the value over the life of the deal. It also includes benefits such as flow on to follow on shows, cross promotion etc. Hard for people outside the industry to value.

End result is, channel 10 will bid or not based on their expectation of a return, not so much on how much cash they have.
 
yes and no, without footy the only thing keeping the station afloat is english TV networks buying episodes of neighbours.
but thats because channel 10 haven't had anything worth watching for years.

they over invested in reality shows like big brother and masterchef when those shows lost the glossy the station was stuffed.

Dont Fremantle Media own the rights to Neighbours, not 10 ?
 
An article on TV rights of both AFL & NRL:
The Courier Mail studied television ratings for all sports in the past three “long weekends’’ of sport, from April 10-26 on free-to-air networks and Foxtel sports channels.
The top 36 sports television audiences of those past three weeks were all broadcasts of NRL (20) or AFL (16) games.

Nine of the 10 biggest audiences for sports in the three-week period were AFL games on the basis of live match audiences for five-city metro ratings and Fox Footy, which Seven agreed could telecast all games live in the 2012 negotiations with the AFL.

The NRL generally draws bigger audiences for its main Friday night free-to-air telecasts in capital cities than the AFL does on Seven.

Seven’s 759,000 audience for the Collingwood-Essendon game on Anzac Day was the biggest five-capital result during the three-week period.
Once Fox Footy live telecast audiences are added, the five biggest audiences in the fortnights are found to be for AFL games, topped by the April 10 Eagles-Blues encounter which attracted 637,000 on Seven’s two channels nationally, plus 237,000 on Fox Footy.

http://www.news.com.au/sport/nrl/br...-new-rights-deal/story-fndv2w3r-1227332898850
 
An article on TV rights of both AFL & NRL:
The Courier Mail studied television ratings for all sports in the past three “long weekends’’ of sport, from April 10-26 on free-to-air networks and Foxtel sports channels.
The top 36 sports television audiences of those past three weeks were all broadcasts of NRL (20) or AFL (16) games.

Nine of the 10 biggest audiences for sports in the three-week period were AFL games on the basis of live match audiences for five-city metro ratings and Fox Footy, which Seven agreed could telecast all games live in the 2012 negotiations with the AFL.

The NRL generally draws bigger audiences for its main Friday night free-to-air telecasts in capital cities than the AFL does on Seven.

Seven’s 759,000 audience for the Collingwood-Essendon game on Anzac Day was the biggest five-capital result during the three-week period.
Once Fox Footy live telecast audiences are added, the five biggest audiences in the fortnights are found to be for AFL games, topped by the April 10 Eagles-Blues encounter which attracted 637,000 on Seven’s two channels nationally, plus 237,000 on Fox Footy.

http://www.news.com.au/sport/nrl/br...-new-rights-deal/story-fndv2w3r-1227332898850

Courier mail not counting regionals apparently. AFL accounts for 6 of the top ten ratings when all included - known at this time in any case, but the NRL accounts for three of the top 4. We know nothing of Victorian regionals, but last year these averaged 101k per game.

2015aprilratings.png


Purely on metro figures, all 12 broadcast NRL games made the top 20, against 8 AFL games.

aprilmetroratings.png
 
strength of the test ratings yesterday after being shifted from primetime friday to sunday arvo shows it's another string to their bow, could see more regular international's in next deal.
 
Seven to try for knockout bid for NRL and AFL rights

Speculation is mounting that Seven West Media will attempt a knockout bid to land AFL and NRL broadcast rights, using its strengthened balance sheet from its large capital raising to target the country's two biggest winter sports.

Seven West, which owns the Seven free-to-air TV network, is in the midst of a $612 million capital raising that sports sources expect frees up Seven to lodge huge bids for AFL and rugby league rights.

It comes as expectations are growing that the NRL will attempt to beat the AFL to the punch and sign a rights deal it hopes will be worth up to $2 billion over five years before the AFL finalises its negotiations for a new contract, which it has told TV networks should be worth about $1.75 billion over five years.

The NRL told TV executives at the end of the week before last that it was in the market for a new deal to begin after its current contract with Nine Entertainment Co, Fox Sports Australia and Telstra, worth about $1.2 billion over five years, expires at the end of 2017.


The move came as a surprise, given the AFL has started negotiations for rights that would start after its five-year, $1.25 billion contract with Seven, Foxtel and Telstra ends after the 2016 grand final.

It is understood the NRL will fast-track negotiations and attempt to seal a deal before the AFL, in the belief that whichever sport signs a contract first will garner more money from a combination of free-to-air and pay-television networks.

Nine executives are adamant the network will not lose its rugby league rights and is in a strong fiscal position after adding $640 million to its balance sheet after the recent sale of its Nine Live business.

GO HARD


But it is expected Seven will go hard after the rights to the State of Origin series, usually among the highest-rating shows across television each year and which NRL chief executive Dave Smith is exploring the possibility of selling separately to NRL and Test matches.

"We would expect to see strong bidding tension for the State of Origin series, with both Seven and [Network] Ten potentially interested," Commonwealth Bank analyst Alice Bennett said in a note to clients last week.

Seven is favourite to retain AFL rights, and is paying about $425 million in cash and $50 million in contra over five years of the deal. Telstra is paying $100 million in cash over the five years for the mobile-phone and internet TV rights, while Foxtel is paying an estimated $593 million in cash and $85 million in contra. Seven also owns rights to the Olympic Games, beginning with the Rio de Janeiro Games next year.

Rival Ten is hoping to gain a foothold in either of the new NRL and AFL rights deals. Its position would be strengthened considerably should a mooted deal for Foxtel – which has rights to both sports – to become a 14.9 per cent shareholder in the struggling free-to-air network eventuate.


Sports sources have said they would expect Foxtel to push hard for Ten to be involved in rights for one or both of the two sports, which could result in Ten winning the rights to one or two matches a week and Seven or Nine broadcasting others in conjunction with Foxtel.
http://www.afr.com/business/sport/s...or-nrl-and-afl-rights-20150503-1mx2dt?stb=twt
 
From above article

Seven is favourite to retain AFL rights, and is paying about $425 million in cash and $50 million in contra over five years of the deal. Telstra is paying $100 million in cash over the five years for the mobile-phone and internet TV rights, while Foxtel is paying an estimated $593 million in cash and $85 million in contra.

I went back and looked at the news paper clippings/articles I kept from the last TV deal announcement on 28th April 2011 so 29th and 30-31st weekend papers and The Fin Review reported those figures above but The Oz had it at $425mil cash + $50 contra for 7, $540m cash + $85mil cotra for Foxtel, and $153mil cash from Telstra. I have no idea why their is a $53mil difference between Foxtel and Telstra cash between the 2 papers but I know Telstra paid more than $100mil for the rights. I put up a spread sheet in page 2 of this thread using the figures from the Oz, as in the Weekend Oz they printed a table reconciling the 3 deals ie 2002-06, 2007-11 and 2012-16 and free TV, pay TV and Telstra contributions.
 
From above article

Seven is favourite to retain AFL rights, and is paying about $425 million in cash and $50 million in contra over five years of the deal. Telstra is paying $100 million in cash over the five years for the mobile-phone and internet TV rights, while Foxtel is paying an estimated $593 million in cash and $85 million in contra.

I went back and looked at the news paper clippings/articles I kept from the last TV deal announcement on 28th April 2011 so 29th and 30-31st weekend papers and The Fin Review reported those figures above but The Oz had it at $425mil cash + $50 contra for 7, $540m cash + $85mil cotra for Foxtel, and $153mil cash from Telstra. I have no idea why their is a $53mil difference between Foxtel and Telstra cash between the 2 papers but I know Telstra paid more than $100mil for the rights. I put up a spread sheet in page 2 of this thread using the figures from the Oz, as in the Weekend Oz they printed a table reconciling the 3 deals ie 2002-06, 2007-11 and 2012-16 and free TV, pay TV and Telstra contributions.

Adds up to $1.253B (cash and contra) - that's the number I recall.
 

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Adds up to $1.253B (cash and contra) - that's the number I recall.
Yeah the total is right but the two newspapers have reported the break up differently for 4 years now. As I said I put my spread sheet up in page 2 of this thread.
 
Courier mail not counting regionals apparently.

Strictly speaking, the Courier Mail not adding in regionals appears to be correct, at least according to Doug Peiffer in 2013 (Oztam CEO). I think you and others have discussed this before.

Lastly, Peiffer was asked why OzTAM does not include Regional audiences with 5 City Metro numbers.

Regional viewers are measured separately by RegionalTAM (owned by Regional broadcasters) and there is some cross-over in some geographic areas.

“Technically there are some math reasons why you can’t do it. But I think we’re heading towards a national panel eventually when the Reach Rules change and consolidation happens in the marketplace.”

 
Courier mail not counting regionals apparently. AFL accounts for 6 of the top ten ratings when all included - known at this time in any case, but the NRL accounts for three of the top 4. We know nothing of Victorian regionals, but last year these averaged 101k per game.

2015aprilratings.png


Purely on metro figures, all 12 broadcast NRL games made the top 20, against 8 AFL games.

aprilmetroratings.png
Only problem with these figures is that both Ch7 & Ch9 look at the country ratings as well. Remember that the NSW regional market is bigger than Adelaide, add these in and you'll find that the NRL would easily take the top 2 spots.

Regional Vic & Tas & WA would offset against regional Qld & ACT, so no real net impact on the placings.
 
somehow i don't think traditional Sports advertisers like Carlton draught or sportsbet will look to invest in some british tv drama over footy.

The networks will pay what they have to get the rights Have a look at CH10 since they dumped AFL football

These guys are just speaking through their pockets trying to keep the price down.I still expect the AFL to get an increase esp if CH 10 gets back in the game but not a lot.
 
Saw this on twitter, also goes to your point about number of different properties they have to offer networks;

CFB4fZVUUAAS2Rr.jpg

yep. I firmly believe that the AFL misses out by having no rep games. And dont try and tell me that international rules qulaifies. Its a pale imitation.
 
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