SKT - Sky Network Television

[mistaTea]

WBD could look to buy Spark Sport. That would be a game changer.

HBO and Spark Sport combo from one provider would be nice. That same provider also has free to air channel as well. They could release their own set top box or app etc.

Forget about the M&A conspiracy theories for one day...

Just look at what is known right now...

Contrary to speculation, SS don't appear to be going anywhere just yet. They are already successfully streaming F1, domestic cricket etc plus are gearing up for the Women's RWC. This last bit in particular is going to get a lot of attention (which is fantastic marketing for their product - a timely reminder to the public that they are still here).

And their app/tech is superior to Sky Sport NOW. I do think most people would prefer to use their app than Sky's.

Anyway, the main point is - there are actually no good options for Sky from here.

• If Spark are able to bid for NZR...then if Sky win they must have paid way over the odds for it...so they actually still lose. Spark can afford to pay over the odds for content like NZR (with the long game in mind) whereas Sky can't.
• If Spark win the contract then Sky lose (obviously). It would be a massive blow to their sports calander and the 'home of sport' would shift to Spark Sport from 2026. Sky would have a sizeable drop in sport subs...and would almost certainly have to drop the Sky Sport package price from 2026 to try to hang on to the subs they can. Hard to quantify, but it would be a large reduction in revenue.

Because Sky have zero leverage now that internet technology is becoming superflous (fixed wireless, 5G, satellite...) I just can't see any 'good' scenarios for Sky from this point. And I really am trying to!

[Mysterion]

Forget about the M&A conspiracy theories for one day...

[mistaTea]

https://www.scoop.co.nz/stories/CU2209/S00240/spark-sport-signs-three-year-deal-with-manu-samoa.htm

I mean, they are still actively going for content.

Not what I would expect if they were focussed on finding an exit...

Jeff Latch must have talked Jolie into sticking it out. If they can still make something of Spark Sport it can become a point of difference between Spark and Voda/2D.

[Mysterion]

https://www.scoop.co.nz/stories/CU2209/S00240/spark-sport-signs-three-year-deal-with-manu-samoa.htm

I mean, they are still actively going for content.

Not what I would expect if they were focussed on finding an exit...

Jeff Latch must have talked Jolie into sticking it out. If they can still make something of Spark Sport it can become a point of difference between Spark and Voda/2D.

Bro, it's likely an asset held for sale. That's why they keep renewing the name on the companies website.

They need to keep buying content to hold the value of the platform.

They're just waiting for WBD or Amazon to make a play.

[Mysterion]

[Mysterion]

[mistaTea]

Man, this is worse for Sky Sport than I thought if they are now going to be bidding against Spark Sport and WBD Sport - and so soon!!!

https://www.sportico.com/business/media/2022/warner-bros-discovery-sports-1234673039/

With its merger complete, expect the newly formed Warner Brothers Discovery (NASDAQ: WBD) to become an even more aggressive bidder for top live-sports rights in the months ahead.

The company will also come to the negotiating table with the ability to deliver content across present and future distribution platforms, and the capital needed to compete for major rights packages. "WBD will have serious interest in every strategic property in some fashion going forward," Crakes predicted. "Even those that in the past didn't fit their smaller, but super high quality content portfolio." A source with knowledge of the combined entity's thinking confirmed WBD intends to be "very active" in its pursuit of premium sports rights moving forward

The company has already demonstrated its intent to be a major player in sports, but the merger is expected to "super charge" things. "When it comes to live sports distribution, they are now powerful in Europe [with Eurosport], in the United States [with Turner Sports] and in Britain and Ireland [with BT Sport]," Crakes said. That global footprint should open up new opportunities.

If WBD's trans-Atlantic sports strategy works, expanding into Asia seems like a logical next step for the company. "Some of the most valuable properties in Asia are European soccer and rugby leagues," Crakes said. Of course, if it is buying up premium rugby rights, Australia and New Zealand would be logical markets to expand into, too.

They don't need to pay hundreds of millions of dollars to buy Sky (and go through all the regulatory complication) because Sky don't own any assets they want. They already have better platforms than Sky, and can negotiate rights on a global scale. Linear, OTT, BVOD they got it all. With their ownership of TV3 they can already plug into the big advertising revenue.

All they need to do is wait patiently and then start bidding for the rights as they come up for negotiation. No need to pay a large sum for Sky who only rent the content anyway. WBD would just end up having to bid again for the rights Sky currently have when they come up for renewal anyway. Cheaper (and smarter) to just wait.

NZR and other codes would be insane to not go out to market if there is the potential for a Sky/Spark/WBD show down.

If it was just Sky/Spark I wouuld say Sky would probably keep the rights (but pay an eye watering sum to do so).

If WBD is in the mix...I think it's bye-bye 30 year relationship with NZR for Sky.

[Mysterion]

If WBD is in the mix...I think it's bye-bye 30 year relationship with NZR for Sky.

They don't need to pay hundreds of millions of dollars to buy Sky

It's only a problem if Comcast or Amazon buys Sky, then they have a huge leg up in terms of customer relationships.

Writing is on the wall for Sky, but it might turn out to be a positive depending on how the market reacts to it's demise.

[Mysterion]

This is what the whole "buying MediaWorks" thing was about.

They know HBO and Sports are going so their shifting to advertising.

Jones TV  / Cartoon network / New Channels / MTV all on reruns/non exclusive content. Then the government pays them to run anti drink driving ads etc.

[Shareguy]

The other side of the argument is that WBD has been set up ready for the takeover of SKT and renaming. A one stop shop for sport and everything else.

[Mysterion]

ready for the takeover of SKT

[mistaTea]

The other side of the argument is that WBD has been set up ready for the takeover of SKT and renaming. A one stop shop for sport and everything else.

Well, there is probably only one person I know of who would reliably take that 'other side of the argument'.

Why would WBD pay hundreds of millions of dollars to buy Sky so that they can pick up their existing commitments in sport and entertainment, and then have to bid for them again soon anyway?

Sky don't own anything of value. They own zero content.

As for their platforms - I doubt WBD want to buy legacy satellite hardware. They don't need any of Sky's streaming platforms because they have better ones.

Maybe they grab Sky to get the ~1M customer relationships? If you take the upper end of FY23 earnings guidance ($60M) then each of those customers only earn Sky $5/month on average. When you consider that around half of those customers pay a bogus $15/month MYSKY rental fee...that metric is even more shocking.

Then there is the potential regulatory risk of trying to merge TV3 with Sky TV. Would it get through in light of the TVNZ-RNZ merger? Perhaps it would, but it takes time and there is risk.

A much more logical approach is to just sit tight, form relationships with key people in NZR etc. Chat to Silver Lake. Plant the seed around how WBD can maximise the value of the All Blacks franchise in particular with their global reach... and then put in a strong bid when the time comes.

[Mysterion]

Well, there is probably only one person I know of who would reliably take that 'other side of the argument'.

Why would WBD pay hundreds of millions of dollars to buy Sky so that they can pick up their existing commitments in sport and entertainment, and then have to bid for them again soon anyway?

Sky don't own anything of value. They own zero content.

As for their platforms - I doubt WBD want to buy legacy satellite hardware. They don't need any of Sky's streaming platforms because they have better ones.

Maybe they grab Sky to get the ~1M customer relationships? If you take the upper end of FY23 earnings guidance ($60M) then each of those customers only earn Sky $5/month on average. When you consider that around half of those customers pay a bogus $15/month MYSKY rental fee...that metric is even more shocking.

Then there is the potential regulatory risk of trying to merge TV3 with Sky TV. Would it get through in light of the TVNZ-RNZ merger? Perhaps it would, but it takes time and there is risk.

A much more logical approach is to just sit tight, form relationships with key people in NZR etc. Chat to Silver Lake. Plant the seed around how WBD can maximise the value of the All Blacks franchise in particular with their global reach... and then put in a strong bid when the time comes.

Bro, this is exactly what Spark did. Thinking they could just setup another platform and buy rights and then everyone would sign up. Doesn't work that way. The average consumer is retarded. What you forget is that people are lazy slops as well. They like to over pay for sh*t too and then abuse customer reps on the telephone when things go bad. If it's only $10 per month it must be sh*t so why bother. If it's $100 per month it's good! That's how the average consumer thinks! The set top box also cages them like a bunch of rates! There's no easy one click cancel button. The thought of returning the box is a bridge too far for most people. Do you know how hard it is to return a set top box! It's mission impossible! Only a small percentage of people have succeed. Month after month Sky customers over pay but they don't care. They're all trapped! They all hate Sky but love to be dominated and get ripped off. They empty their pockets every month and scuttle off. If they don't pay the chord it's cut! That's why Sky is the perfect business.

[mistaTea]

Bro, this is exactly what Spark did. Thinking they could just setup another platform and buy rights and then everyone would sign up. Doesn't work that way. The average consumer is retarded. What you forget is that people are lazy slops as well. They like to over pay for sh*t too and then abuse customer reps on the telephone when things go bad. If it's only $10 per month it must be sh*t so why bother. If it's $100 per month it's good! That's how the average consumer thinks! The set top box also cages them like a bunch of rates! There's no easy one click cancel button. The thought of returning the box is a bridge too far for most people. Do you know how hard it is to return a set top box! It's mission impossible! Only a small percentage of people have succeed. Month after month Sky customers over pay but they don't care. They're all trapped! They all hate Sky but love to be dominated and get ripped off. They empty their pockets every month and scuttle off. If they don't pay the chord it's cut! That's why Sky is the perfect business.

Amd yet their satellite base continues to dwindle. 350K of them went through this so-called Mission Impossible To Cancel process in the space of a couple of years mate.

[Mysterion]

YouTube in secret talks to own TV home screens

https://www.afr.com/technology/youtube-in-secret-talks-to-own-tv-home-screens-20220930-p5bme4

"Who controls the TV, controls SVOD"

YouTube has been in closed-door talks with streaming broadcasters about a new product the video giant wants to launch in Australia, which industry insiders say is an ambitious play to own the home screen of televisions.

The company is seeking deals with Australian broadcasters to sell subscriptions to services such as Nine-owned Stan and Foxtel's Binge directly through YouTube, which would then showcase the streamers' TV and movie content to users.

Google-owned YouTube has begun talks with Australian broadcasters to sell subscriptions for streaming platforms.

Local executives for the Google-owned company have recently held meetings with media companies about possibly joining the new product, according to a source familiar with the talks. The source said the product was being marketed as "YouTube A La Carte".

YOUTUBE TAKEOVER???