Money Is this $1 billion cricket deal all it’s cracked up to be?

09:36  13 april  2018
09:36  13 april  2018 Source:   crikey.com.au

Seven and Foxtel nab cricket broadcasting rights in $1 billion deal

  Seven and Foxtel nab cricket broadcasting rights in $1 billion deal Seven will be the next free-to-air broadcaster for cricket, taking it from Nine after four decades, but many matches could be held back for pay-TV.Rupert Murdoch’s News Corp-controlled Foxtel will pay for the majority of the rights in a deal that will reshape the broadcast landscape for Australia’s most popular summer sport.

After four decades, Nine has lost the broadcast rights to the cricket . But the deal might not be total cause for celebration for new rights holders Foxtel and Seven.

No. Major subject. Cricket Broadcasting rights Foxtel Seven West Media. MP.

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The two weakest members of Australian broadcast media — Kerry Stokes’ Seven West Media and the Murdoch family’s newly merged Foxtel/Fox Sports — will add more than $200 million a year to their already high-cost bases in winning the new cricket broadcast deal with Cricket Australia.

The much talked about deal will see Nine end its 40-year association with the game. Nine was reportedly losing more than $20-30 million a year on the cricket and only making a profit when the Ashes series rolls around (they’ll still be broadcasting the upcoming 2019 series). The network has recently taken up partnership with Tennis Australia, snatching the rights from Seven for $60 million a year (against the $40 million Seven was paying). More importantly, the $60 million will be less than the $80 million that Nine was paying Cricket Australia.

Cricket coverage faces major shake-up with Seven and Foxtel winning TV rights battle

  Cricket coverage faces major shake-up with Seven and Foxtel winning TV rights battle <p>Cricket Australia has put a tough couple of weeks behind it with a massive new $1.2 billion TV rights deal, double the value of the previous rights package with the Nine Network.</p>Cricket Australia has put a tough couple of weeks behind it with a massive new $1.2 billion TV rights deal, double the value of the previous rights package with the Nine Network.

Seven are essentially doing a swap from tennis to cricket , while Fox Sports are the big winners, adding a stack of sport to their summer line- up . Given the tennis is generally shown on 7 and 7TWO, it ’ll be interesting to see exactly how the network juggle the various sports. Is this $ 1 billion cricket deal all

The fastest way to share someone else’ s Tweet with your followers is with a Retweet. Tap the icon to send it instantly. Join the conversation. I suspect Australian tennis coverage is about to become dumber and less comprehensive, and cricket will be less watchable with more cross-promotion and

The new package with Seven and Foxtel is said to be worth $1 billion, but like the AFL contracts both Seven and Foxtel have, there will be tens of millions of dollars of contra or free advertising for games, clubs and AFL-related services. That’s a benefit that passes to Cricket Australia, but it is a cost for Seven and Foxtel because the contra ads reduce the inventory the two networks can sell to advertisers. Nine has a similar arrangement in its current contract with the NRL.

It is the big sports rights deal that Patrick Delaney has wanted to start his reign as CEO of the newly merged Foxtel/Fox Sports that will be 65% owned by News Corp and 35% owned by Telstra. Foxtel needs a deal like this to try and arrest then build its subscriber base, which has fallen sharply. Foxtel’s costs have been rising, its churn (replacing exiting subscribers) has been costly and the continuing rise of streaming video rivals such as Netflix and Stan (owned by Nine and Fairfax respectively) has drained customers and millions of dollars of subscription revenues away from Foxtel.

End of an era confirmed: Foxtel and Seven snatch cricket rights from Nine

  End of an era confirmed: Foxtel and Seven snatch cricket rights from Nine After 40 years of coverage, Channel Nine has lost the broadcast rights to Australia’s iconic summer of cricket, with Foxtel and Channel Seven swooping in with a billion-dollar deal for both international matches and the Big Bash League. The deal is worth almost $1.2 billion over a six-year period, which is more than most predictions stated before the announcement. It will be the first time Seven have been involved in cricket coverage.

Is this $ 1 billion cricket deal all it ’ s cracked up to be ? Leave a comment Cancel reply. You must be logged in to post a comment. Not already subscribed? Get your free trial, access everything immediately.

Is this $ 1 billion cricket deal all it ’ s cracked up to be ? No balls: how Cricket Australia lost the media game. Australia faces chin music from the watching world.

News Corp revealed earlier this year that it plans to write-down its investment in Foxtel and Fox Sports by upwards of $1 billion because of the weak outlook for TV in Australia. Perhaps this deal will see it drop that plan or reduce the size of the write-down.

The news of Seven West Media’s involvement will see its shares come under pressure on the ASX too. Because the costs of the cricket deal (or Seven’s share of the rights costs and the production costs) will be much higher than the tennis rights, Seven’s already tough cost-cutting program ($125 million by the end of June 2019) is likely to be intensified. Seven is already facing $25 million more in payments to the AFL this year which previous cost-cutting was supposed to accommodate, but because of its huge debt bill (a net debt figure of $711 million at the end of December 2017), Seven has added to its cost targets and promised investors that it would cut that debt to around $650 million by June this year.

Cricket's new landscape leaves former greats in commentary limbo

  Cricket's new landscape leaves former greats in commentary limbo Channel Nine's commentators face uncertain futures under cricket's new TV deal.Seven West Media is set to become the new free-to-air broadcast partner for Cricket Australia in a $1 billion deal to be announced on Friday.

Is this $ 1 billion cricket deal all it ’ s cracked up to be ? After four decades, Nine has lost the broadcast rights to the cricket . But the deal might not be total cause for celebration for new rights holders Foxtel and Seven.

Seven will be the next free-to-air broadcaster for cricket , taking it from Nine after four decades, but it ' s Foxtel who have grabbed the biggest win. Seven and Foxtel nab cricket broadcasting rights in $ 1 billion deal . By signing up you accept our privacy policy and conditions of use.

The cricket rights deal, even with Seven paying less than Foxtel, will add millions to the network’s already high costs and could mean staff at the network face even greater pressures on their jobs, wages and conditions. Seven West shares closed at 51.5 cents on Thursday ahead of the announcement expected around 2pm Sydney time on Friday. The shares are down more than 16% this year and more than 27% in the past 12 months because of concerns about the weak outlook, the high debt, the need for cost cuts, and the company’s investment in fading print titles.

Cricket fans will still see the tests and most games on free-to-air TV and the matches that Foxtel will get will be low-rating (probably not involving Australia). Foxtel/Fox Sports already broadcast most of Australia’s offshore tours to places like New Zealand and India; audiences are low compared to those for NRL and AFL games which dominate the most-watched lists every year for the pay TV operator.

With a solid base of cricket fans already there and no sign of any subscription boost when Australian cricket teams tour offshore, its hard to see how this deal will be the big subscription driver Foxtel needs it to be.

Comment: Ten's new owner flunks first big test, but how much will it hurt? .
CBS flunked its first big test in Australia, but it could be a blessing in disguise.It was the first big test for Network Ten's new owners, CBS.  And they flunked it.

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