AFL announces 4.5billion, 7 year media deal (2025-2031 inclusive)

[RussellEbertHandball]

That’s amazing I was reading that as 11million people who watch Netflix not that actually subscribe

If you look at my post #315, under the graph I copied the milestone numbers and wasn't sure if they were straight subscriptions or people who watched the service so that's why I looked at their annual report after you asked your question and did a quick search by country.

Yes it still is hard to believe 1 in 2 Australians over 14 have have subscription unless people have multiple subscriptions for multiple devices maybe in multiple locations. I did a quick calculation of my 50 closest relatives and friends, aged between 20 and 60, and my calculation is 1 in 5 or 6.

 

[Kwality]

Wow, I had assumed your was a reflection of how astonished you were at the quality of my response. Turns out you were just being rude

...and here was I, the only person who went to the time and effort to respond to your questions!

Rhetorical question .... I did acknowledge a recent contribution, dont get ahead of yourself ....

 

[HavUEvaSeenTheRain]

If you look at my post #315, under the graph I copied the milestone numbers and wasn't sure if they were straight subscriptions or people who watched the service so that's why I looked at their annual report after you asked your question and did a quick search by country.

Yes it still is hard to believe 1 in 2 Australians over 14 have have subscription unless people have multiple subscriptions for multiple devices mabe in multiple locations. I did a quick calculation of my 50 closest relatives and friends, aged between 20 and 60, and my calculation is 1 in 5 or 6.

Yeh it’s crazy. I know i am one of 8 who watch off the same subscription.

 

[Kwality]

Yeh it’s crazy. I know i am one of 8 who watch off the same subscription.

Got a bit of the AFL club membership numbers about it - show me the money !!

 

[RussellEbertHandball]

Got a bit of the AFL club membership numbers about it - show me the money !!

The money is there, just read netflix annual report and the link I put up in post 323.

 

[Our Game]

More food for thought.

Sports need 2020s vision as stream becomes a torrent

By Neil Breen
December 21, 2019 — 1.00pm

• 
  
• Strap in sports fans, because the decade to come will bring about the biggest changes to the way we consume sport since the introduction of television itself.

If you cast your mind back to the start of this decade, you most likely had a big-screen TV and, as a sports lover, a Foxtel box underneath it. The television would have been analogue and the figures on the screen slightly grainy.
During the decade, many traded these TVs for a digital version and the difference in clarity was remarkable. With digital came the streaming services.

Changing viewing habits will have major ramifications for all sports.CREDIT:GETTY
The pivotal year was 2015: Netflix launched in Australia, Nine Entertainment introduced Stan and by the end of the decade, there was Apple TV, Amazon Prime, Optus (with the Premier League) ...
Advertisement

 

[Freomaniac]

Rugby Australia needs a good friend in senior management/board at CBS in New York so that CBS backs a serious bid by Channel 10 - even if its $30m-$40m a year x 5 years - $20m-$30m/year less than Foxtel is paying and prepared to accept the first 5 years might be a loss leader for 10.

RA have plenty of content they can sell to 10 to turn them into the Rugby network. They have the Wallabies, Super Rugby, Club rugby, Sevens - men's and women's tournaments from around the world, the build up to the Olympics, the next World Cup, women's rugby, wheelchair rugby, other international rugby tests and provincial level games etc etc. There is no shortage of content for 10 to use on its main channel and other channels.

They then can take control of and get value for streaming rights and other stuff available via their official app, just like the AFL and NRL do with Telstra.

They would be complete idiots to have all their content on Optus via an app and bugger all presence on free TV.

But you need some adventurous management and board members at Rugby Australia to be smart enough to package it all up. They need a Larry Kestelman. Twiggy Forest might be that person.

Because, the next step once they have stitched up their financial stability for the next 5 years, is to work on their massive issue of junior development outside private schools. They need to look at the NZ model, that develops the game across all demographics, not just look to NZ for coaches.

seems like the FFA ,A-league and Socceroos deal might have a similar fate

 

[RussellEbertHandball]

Max Mason AFR's Media and Marketing Editor, wrote today that AFL is looking to extend the current broadcasting deal with current broadcasters. Nothing really new but more confirmation the AFL is getting serious about the extension.

Get the deal done to end of 2024 season, means Gil will leave without overseeing maybe a big decrease. Got the job mid 2014, so 7 years in the job gets him to mid 2021, maybe early 2022 before he leaves, gets the 2 year extension later this year, so someone else can negotiate the post 2024 deal, in 2023 or early 2024.


AFL works on extension with Seven, Foxtel, Telstra

The AFL is believed to be working on an extension to its broadcast rights deal with Seven West Media, Foxtel and Telstra. Sources told The Australian Financial Review the parties were looking at a two-year extension. Some said a new deal was close, while others tempered expectations of an imminent deal but acknowledged "there's smoke".

While there is desire to get a deal done, sources said there is still some jockeying over what increase in price would come from an extension and who would be paying the inflation increase, given the rising value and importance of digital rights.

An extension on the current rights deal would make sense for all three of the AFL's broadcast partners, who to varying degrees are dealing with their own challenges and transformations, and would lock in one of Australia's most popular sporting codes for a longer period in a time of audience fragmentation. For the AFL it would create a level of certainty for income through until 2024, when the media landscape could look far different than it does today.
.........
In 2015 it signed a six-year, $2.508 billion deal with News Corp, Seven and Telstra which began in 2017, taking advantage of a situation in which the NRL and Nine, owner of The Australian Financial Review, had blindsided Foxtel with a new rugby league deal.
............

Under the current deal, News Corp, which owns 65 per cent of Foxtel, is paying $1.3 billion over the life of the agreement, Seven is paying $840 million and Telstra is paying $600 million. [Note Telstra is only paying $300m and 7 is paying $840 cash and $60m contra advertising ie its 1,308m+900m+300m= 2,508m News Corp is paying $1,168m cash + $140m contra advertising]

Foxtel has all nine AFL matches per round live, Seven shows, on average, 3½ games per round, while Telstra owns the digital rights. An extension would likely roll a similar split of matches over.

Work on the extension comes as Rugby Australia prepares to send out tender documents for its own rights deal from 2021 through to 2025. Rugby Australia is in the final throes of working out a deal to bring club rugby into its broadcast arrangement and will test the open market for the first time, having declined a reported $20 million a year offer from incumbent rights holder Foxtel.

AFL works on extension with Seven, Foxtel, Telstra

While some sources said a new deal was close, others tempered expectations of an imminent deal but acknowledged "there's smoke".

www.afr.com

 

[Demonoid]

Max Mason AFR's Media and Marketing Editor, wrote today that AFL is looking to extend the current broadcasting deal with current broadcasters in the next media rights thread. Nothing really new but more confirmation the AFL is getting serious about the extension.

Get the deal done to end of 2024 season, means Gil will leave without overseeing maybe a big decrease. Got the job mid 2014, so 7 years in the job gets him to mid 2021, maybe early 2022 before he leaves, gets the 2 year extension later this year, so someone else can negotiate the post 2024 deal, in 2023 or early 2024.


AFL works on extension with Seven, Foxtel, Telstra

The AFL is believed to be working on an extension to its broadcast rights deal with Seven West Media, Foxtel and Telstra. Sources told The Australian Financial Review the parties were looking at a two-year extension. Some said a new deal was close, while others tempered expectations of an imminent deal but acknowledged "there's smoke".

While there is desire to get a deal done, sources said there is still some jockeying over what increase in price would come from an extension and who would be paying the inflation increase, given the rising value and importance of digital rights.

An extension on the current rights deal would make sense for all three of the AFL's broadcast partners, who to varying degrees are dealing with their own challenges and transformations, and would lock in one of Australia's most popular sporting codes for a longer period in a time of audience fragmentation. For the AFL it would create a level of certainty for income through until 2024, when the media landscape could look far different than it does today.
.........
In 2015 it signed a six-year, $2.508 billion deal with News Corp, Seven and Telstra which began in 2017, taking advantage of a situation in which the NRL and Nine, owner of The Australian Financial Review, had blindsided Foxtel with a new rugby league deal.
............

Under the current deal, News Corp, which owns 65 per cent of Foxtel, is paying $1.3 billion over the life of the agreement, Seven is paying $840 million and Telstra is paying $600 million. [Note Telstra is only paying $300m and 7 is paying $840 cash and $60m contra advertising ie its 1,308m+900m+300m= 2,508m News Corp is paying $1,168m cash + $140m contra advertising]

Foxtel has all nine AFL matches per round live, Seven shows, on average, 3½ games per round, while Telstra owns the digital rights. An extension would likely roll a similar split of matches over.

Work on the extension comes as Rugby Australia prepares to send out tender documents for its own rights deal from 2021 through to 2025. Rugby Australia is in the final throes of working out a deal to bring club rugby into its broadcast arrangement and will test the open market for the first time, having declined a reported $20 million a year offer from incumbent rights holder Foxtel.

AFL works on extension with Seven, Foxtel, Telstra

While some sources said a new deal was close, others tempered expectations of an imminent deal but acknowledged "there's smoke".

www.afr.com

A deal to end of 2024 (a 2 year extension) also means a brand new deal can incorporate any extra games that a potential Tasmanian side would add given the recent news of this report urging a Tassie side to enter 2025.


On iPhone using BigFooty.com mobile app

 

[The_Wookie]

A deal to end of 2024 (a 2 year extension) also means a brand new deal can incorporate any extra games that a potential Tasmanian side would add given the recent news of this report urging a Tassie side to enter 2025.


On iPhone using BigFooty.com mobile app

it also means they arent going up for rights at the same time as anyone else.

 

[Freomaniac]

it also means they arent going up for rights at the same time as anyone else.

timing is everything isnt it?

At least the AFL has got a good 6 year deal

 

[Gigantor]

Whether you think this is a good idea or not depends on your view of how broadcast rights are tracking generally.
But.... we'd look silly if we accepted a two year extension for the same value, on the assumption that broadcast rights are trending downwards, and then watched the NRL get a 50% increase in their rights for the next 5 years.
That's the only danger I see.

 

[The_Wookie]

 

[RussellEbertHandball]

The_Wookie I know you have this info but do you have a chart like this one I saw on ABC website on the weekend? Probably should be in the non AFL sports thread, especially given the Rugby media rights negotiation discussions at the moment, but its a good reminder of where all the sports sit.

This article was when 7 and Foxtel got the cricket rights in April 2018.

Cricket broadcast deal faces regulatory hurdles as ODIs head behind paywall

Cricket Australia has signed a massive new $1.2 billion TV rights deal but faces a significant regulatory hurdle over plans to put 50-over ODIs and T20 Internationals behind a Foxtel pay wall.

www.abc.net.au

 

[Demonoid]

Whether you think this is a good idea or not depends on your view of how broadcast rights are tracking generally.
But.... we'd look silly if we accepted a two year extension for the same value, on the assumption that broadcast rights are trending downwards, and then watched the NRL get a 50% increase in their rights for the next 5 years.
That's the only danger I see.

Wonder if they will test the waters with a night/twilight grand final. That is one area where there may be an increase in the value and therefore price.

 

[RussellEbertHandball]

Wonder if they will test the waters with a night/twilight grand final. That is one area where there may be an increase in the value and therefore price.

How much would a night grand final add to a TV deal? $5m a year?

Given the current 198 games + 9 finals = 207 games a year deliver $418m per year with advertising contras and $385m without advertising contras, that's less than $2m cash per game on average. Also the broadcasters are paying for preseason games, Brownlow, All Oz, Rising Star, AFLPA awards etc so the $$$ per game average is even less.

But lets say 7 values the GF at $10m. Can't see a night GF generating more than an extra $5m.

 

[Redline]

The_Wookie I know you have this info but do you have a chart like this one I saw on ABC website on the weekend? Probably should be in the non AFL sports thread, especially given the Rugby media rights negotiation discussions at the moment, but its a good reminder of where all the sports sit.

This article was when 7 and Foxtel got the cricket rights in April 2018.

Cricket broadcast deal faces regulatory hurdles as ODIs head behind paywall

Cricket Australia has signed a massive new $1.2 billion TV rights deal but faces a significant regulatory hurdle over plans to put 50-over ODIs and T20 Internationals behind a Foxtel pay wall.

www.abc.net.au

View attachment 820352

That can confirms what media experts say. Seven overpaid for the Cricket and Nine underpaid for the Tennis. The timing of the Tennis gives Nine ability to advertise their shows to a broad audience. It has been a huge win for them.

 

[NoobPie]

That can confirms what media experts say. Seven overpaid for the Cricket and Nine underpaid for the Tennis. The timing of the Tennis gives Nine ability to advertise their shows to a broad audience. It has been a huge win for them.

I suspect that foxtel paid overs more so than 7 did for the cricket.

7 only paid $75 million which will look a better investment in ashes and india tour years

Foxtel apparently paid $100M for simulcast, mainly Saturday BBL games as well as ODIs and IT20s. The drop off in Kayo subscriptions points to an overconfidence that there are a significant number of cricket fans that will pay for that content.

 

[Gigantor]

Foxtel apparently paid $100M for simulcast, mainly Saturday BBL games as well as ODIs and IT20s. The drop off in Kayo subscriptions points to an overconfidence that there are a significant number of cricket fans that will pay for that content.

Good point re paying for STV.
Watching cricket over the Summer is an Australian tradition, something to do on a hot, lazy day.
It's probably not something you go out of your way to do, like pay for STV, given it has always been available for free.
Also, the deep club allegiances that exist with footy don't really exist with cricket.

 

[HavUEvaSeenTheRain]

With the Kayo data we actually know it’s bloody hard to determine what is worth what. For all we know 250k people have only held onto their subscriptions because they might want to tune into a game of cricket here and there.

 

[Scotland]

They would be complete idiots

That does sound like Rugby Australia.

 

[Scotland]

Will there be AFL and AFLW CBAs coinciding with the new TV rights agreement?

 

[NoobPie]

With the Kayo data we actually know it’s bloody hard to determine what is worth what. For all we know 250k people have only held onto their subscriptions because they might want to tune into a game of cricket here and there.

Certainly the only thing that can be said with sufficient confidence is the winter sport has a greater pulling affect than that on offer through Kayo in the Australian summer (which is pretty much all the significant pro sports except for the EPL and champions league)

Kayo loses subscribers, pressure increases on Foxtel

News Corp's chief executive has blamed cricket for the shock slump in subscribers for Foxtel's sports streaming service, Kayo, a little over a year after its launch.

www.afr.com

In terms of retention of subscriptions of AFL and NRL fans, there is also NBA/NBL, NFL, motor sports, european soccer and A league....there would also be a stack of people too lazy to hold their accounts until footy season starts again. So I would say the drop off hints at the cricket under performing

I would suspect that by the middle of this year the subscription numbers will be higher than last years peak.

 

[HavUEvaSeenTheRain]

Certainly the only thing that can be said with sufficient confidence is the winter sport has a greater pulling affect than that on offer through Kayo in the Australian summer (which is pretty much all the significant pro sports except for the EPL and champions league)

Kayo loses subscribers, pressure increases on Foxtel

News Corp's chief executive has blamed cricket for the shock slump in subscribers for Foxtel's sports streaming service, Kayo, a little over a year after its launch.

www.afr.com

In terms of retention of subscriptions of AFL and NRL fans, there is also NBA/NBL, NFL, motor sports, european soccer and A league....there would also be a stack of people too lazy to hold their accounts until footy season starts again. So I would say the drop off hints at the cricket under performing

I would suspect that by the middle of this year the subscription numbers will be higher than last years peak.

Agree but 85% of people are staying for something and cricket is easily the most popular summer sport on Fox.
edit all those sports you mentioned overlap into the winter seasons too

 

[Pykie]

Will there be AFL and AFLW CBAs coinciding with the new TV rights agreement?

Yes, the new AFL CBA is directly proportional to the games revenue for the first time.

Bad timing for them.