Spark and Sky's fight for rights could mean bigger bill for sports fans

Tuesday, 15 October 2019

Satellite delivery may still be a must-have for many of Sky's rugby fans, who Sky TV CEO Martin Stewart kept on board when he and NZ Rugby chairman Brent Impey announced a new deal in October.

Kiwis complained about Sky Television's 'monopoly' pricing, but may end up reminiscing about the 'good old days' of just having one bill to watch sports, analyst Morningstar has forecast.

The Australian analyst said the move towards streaming sports over the internet meant fans having to pay to access different platforms which could lead to higher bills.

The point is unlikely to have been lost on about 400,000 Sky Sport satellite subscribers, with rival Spark Sport's catches now including domestic cricket, the English Premier League and Formula One.

However, Spark has said its move into sports streaming is making viewing more affordable, with former chief executive Simon Moutter previously suggesting lower and more flexible pricing could create an extra million armchair sports fans.

All Blacks' end-of-season tours are not covered by Sky's agreement with Sanzaar because they are owned by host nations.

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Spark Sport's catches include domestic cricket as well as the English Premier League and Formula One.

Spark did not get a chance to compete against Sky TV for most domestic and international rugby competitions before rights holder Sanzaar announced on Monday that it had renewed its broadcasting deal with Sky until 2025 for undisclosed price that is known to exceed $235 million.

But it may not be long before Sky and Spark's next clash.

Sky chief executive Martin Stewart said on Monday that the nature of the business meant there were always rights to re-sign.

All Blacks' end-of-season tours are not covered by Sky's agreement with Sanzaar because they are owned by host nations.

That means the All Blacks tour of Europe and the UK in November next year could potentially be up for grabs if there are no separate deals in place, as will be the next RWC in France in 2023.

Sky has netball until the end of the 2021 season and the National Rugby League rugby until the end of the 2022 season, but rights to such codes can be tendered well in advance of expiry.

Spark could still get a sniff at intercepting the All Blacks end-of-year tours from Sky TV.

Based on the timing of past announcements, it is possible both those deals could next be done within about 18 months.

Sky has already bagged the rights to the 2020 Olympics in Tokyo and the 2024 Olympics, so Spark can't be on that podium for a while.

Rights to the Hyundai A-League are currently held by Sky. Football Federation Australia has been contacted for comment on when they expire.

Morningstar cut its valuation of Sky shares, which had been out of step with the market, by 30 per cent to $1.30, saying Spark's 'aggression' in wrestling away domestic cricket rights had been a surprise.

Spark appeared 'hell-bent on dismantling Sky's position as the 'House of Sport'', it said.