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Thread: BT take Sky to the cleaners

  1. #1
    Guest R3K1355's Avatar
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    BT take Sky to the cleaners

    Well technically the Premier League did, but obviously BT ran the bill up for them.

    They knew Sky were desperate to hold onto as much of the football as possible, and they made them pay heavily for it

    http://www.bbc.co.uk/news/business-31410300

    Sky's shares are trading more than 3% down after it agreed to pay 4.1bn to show live Premier League football between 2016 and 2019.

    Sky won five of the seven TV packages on offer, but paid 83% more than it did in the last auction three years ago.

    However, shares in BT rose more than 2.5% after it paid 960m for two of the TV packages, 30% more than last time.

    Analysts at Jeffries said the outcome had been "sobering" for Sky, but "reassuring" for BT.

    Sky and BT paid a combined 5.136bn for the live TV rights deal - far in excess of what had been expected.

    Jefferies said the deal would be "challenging to explain" to Sky shareholders.

    "For Sky, a sobering result," Jefferies said. "Even with some claw back on costs/pricing, we expect [analyst] forecasts to move lower," it said.

    The price Sky paid per year was about 330m more than City analysts had predicted.

    Jeffries estimated that Sky would try to claw back about 200m a year through cost-cutting and 100m through incremental price rises.
    Sky will have to be pretty careful now, Sky Sports is already ridiculously expensive and if you increase the prices of other packages too much to compensate you'll just drive customers away.

    I wonder if Sky will be back for another round next time, or ceed some of the rights to prevent another pasting??


  2. #2
    Oor Willy sideways14a's Avatar
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    I was going to mention this, i find the figures being banded about both hilarious and disgusting at the same time.

    Its clearly greed on the part of the premiership, over 5 big whoppers for rights to some guys booting a ball around is mental.
    The increase really is taking the piss, who will foot the bill for this?? Well have a guess.

    Football teams, players and leagues are a disgrace. The money is stupid, the debt lots of them are in is worse and all for what. how much of that money gets pushed to lower league and non league outfits.

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    Guest R3K1355's Avatar
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    Quote Originally Posted by sideways14a View Post
    Its clearly greed on the part of the premiership, over 5 big whoppers for rights to some guys booting a ball around is mental.
    How does it work tho, is it more like an auction where they put in bids, then keep increasing till someone backs down.
    Thats how I thought it worked.

    Quote Originally Posted by sideways14a View Post
    Football teams, players and leagues are a disgrace. The money is stupid, the debt lots of them are in is worse and all for what. how much of that money gets pushed to lower league and non league outfits.
    ****-all apparently.

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    Guest R3K1355's Avatar
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    but we have the best league in the world................................right?????

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    Why would sky not bid again in 3yrs?

    They will have broadcast rights to the biggest sport in the world in terms of viewing figures and income potential. They will just increase the cost of the sports package because muppets like me only have sports for the football. Other broadcast services like virgin still pay sky for their rights so why not keep bidding on guaranteed income? )

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    Guest Zeldoz's Avatar
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    Sky will always rule the sports rights world. Why? See figure below.

    "Analysts estimate that Sky Sports has about five million subscribers, out of a total TV subscriber base of between 10.5 and 11 million people."

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    Guest R3K1355's Avatar
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    Quote Originally Posted by MEL View Post
    Why would sky not bid again in 3yrs?

    They will have broadcast rights to the biggest sport in the world in terms of viewing figures and income potential. They will just increase the cost of the sports package because muppets like me only have sports for the football. Other broadcast services like virgin still pay sky for their rights so why not keep bidding on guaranteed income? )
    but will they bid so hard??

    There's only so far they can push it before the cost of the Sky Sports package becomes stupid.
    It's cost them an extra 300million quid a year, thats a fair old chunk of change.

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    People will only stop paying when the cost exceeds a match ticket cost.

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    Guest Clouder_sx's Avatar
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    Insane. But so is paying 100 quid a month for some sport with adverts plastered all over it. My hate for sky is almost as deep as it is for Apple!

  10. #10
    I Love mike Brewer )o( Monkey's Avatar
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    an interesting fact about the deal, at the 5bn for the rights, it works out that the cost per minute of footbsll aired is 112,000

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    Guest R3K1355's Avatar
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    Wow shit a brick thats expensive.
    I know they re-sell it across the world and all that, but damn thats alot of money.

    Would be interesting to know the profit margin Sky manage to operate the Premier League games at.

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    Guest sparkyhx's Avatar
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    Quote Originally Posted by R3K1355 View Post
    but we have the best league in the world................................right?????
    for the breadth and competitiveness of quality, quite possibly. Other countries may achieve more (spain Italy Germany) but the top teams in these leagues don't have the same week in week out competition.

    I hate Murdock for what he has done to football. I watch MOTD and that's it. Don't watch any other games, cup finals, world cup etc.

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    Guest sparkyhx's Avatar
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    Quote Originally Posted by Clouder_sx View Post
    Insane. But so is paying 100 quid a month for some sport with adverts plastered all over it. My hate for sky is almost as deep as it is for Apple!
    ooo you too, and I don't buy any of their services or newspapers, and none of the apple stuff, point of principle

  14. #14
    Member arry's Avatar
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    I've never bought a sports package on TV - my paid for TV channels are the bare basics of a package just to lump in bb, home phone etc.

    Cannot for the life of me understand how the working classes justify to themselves laying out a grand a year or more to watch ****ing television of any description

    Only footie I watch is in pub - much cheaper that way
    Porsche 911 C2 & FN2 Civic Type R
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    committed. Jezz_S13's Avatar
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    Plenty of working class are happy enough to spunk 5-10 a day on fags, and 80 on beer at the weekend.
    For those that don't do that, 80 a month for some top notch TV is a mere piss in the ocean.

    Everyone has their own priorities.

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