Spark Sport could create another million armchair sports fans, Simon Moutter believes

Wednesday, 20 February 2019

Spark boss Simon Moutter is keen to lead the race to 5G.

Spark Sport could allow another one million Kiwis to watch paid sports, managing director Simon Moutter says.

Spark on Wednesday revealed pricing for its online sports service, which will launch in March costing $19.99 a month.

At that price subscribers – who need not be Spark broadband customers – will get 'all you can eat' online access to Spark's sports programming which will include English Premier League football, Formula 1 races, NBA basketball and hockey.

Spark managing director Simon Moutter says the company has made big strides to cut costs.

The service will launch early in March with a one-month free trial and after that some content, such as sports highlights and some replays, would still be free.

* Spark ramps up competition with Sky, snagging rights to NBA basketball, WRC and Liverpool FC TV

* Spark 'very confident' of delivering glitch-free Rugby World Cup**

Head of sport Jeff Latch said Spark planned to announce deals for more sports rights soon and, when it did, that programming would be also included within the $19.99 monthly pricing.

But the $19.99 monthly pricing will not include the right to watch this year's Rugby World Cup in Tokyo in September, for which Spark has also bought the rights.

Latch said that would come at an extra cost, which would be announced in April.

The launch of Spark Sport would be a 'market changing event', Moutter said.

'There has been no second player in paid sports in New Zealand for 25 years.

'The main driver of accessibility in sport is price and we are bringing a new model to market that will allow potentially another million people to access sport at much lower price points and in a much more 'choiceful' manner,' he said.

Moutter said splitting the Rugby World Cup from other sports would be good for some sport fans as they would be able to pay to watch the RWC without paying to watch Spark's other sports, if that was what they wanted.

He did not rule out Spark offering discounts and promotions on Spark Sport – for example to its broadband customers – down the track.

Spark Sport will support 'popular web browsers', Apple's iPhone and iPad, Apple AirPlay, Android phones and tablets, Google Chromecast and Samsung TV and will support the '1080p' high-definition format.

During the six months after its launch, Spark also plans to make the service available as an app on Apple TV, Panasonic, LG, Samsung TV and Sony Smart televisions.

The company also reported a profit drop of 5.6 per cent to $153m for the six months to the end of December as its revenues edged down 0.4 per cent to $1.75b.

The result disappointed investors, with Spark shares falling 3.4 per cent to close at $3.895 in the wake of the result.

Spark attributed the profit drop to a $28m decline in dividends from its Southern Cross subsea cable joint venture and an increase in its effective income tax rate.

Moutter said Spark had made 'big calls' to reduce its costs. The company employed 5319 full time staff and contractors at the end of the year, down by 295 on the year.

Spark had an 'unending focus on costs' and Moutter said he did not see a future where more people were employed in the industry.

But he said there were no new 'large, episodic' job cuts in the pipeline.