Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Online start-up seeks rapid uptake of English football

Online start-up seeks rapid uptake of English football in pay-per-view challenge to Sky TV

By Jonathan Underhill and Tina Morrison

June 19 (BusinessDesk) – Coliseum Sports Media is betting on rapid uptake for its pay-per-view English Premier League Football offering after outbidding Sky Network Television in a three-year contract that will be delivered via the PremierLeaguePass.com website starting on Aug. 1.

Coliseum is a 50-50 joint venture between four Auckland investors and Newport Beach, California-based Cooper Capital Partners, founded in 1989 by former Lion Nathan executive and NBR Rich Lister Peter Cooper.

No figures were disclosed for the rights to 380 live games and a package of previews, highlights and special features, and chief executive Tim Martin won’t disclose targets for subscribers.

PremierLeaguePass.com is initially offering a season premier pass with all the extras for $239.90, a regular pass with all the games plus on demand for $149.90 and a 24-hour Day Pass for $24.90.

“What we really need is all the people who love the Premier League – they really need to sign up,” Martin told BusinessDesk. The business “had a lot of costs upfront” including its investment in technology with New York-based NeuLion, which already delivers digital sports content.

Martin, a former ad-man, and his wife hold a controlling stake in MMCT Ltd, which owns the other half of Coliseum with two other investors, Simon Chesterman, and Coliseum director Kenneth Taylor

Assuming customers all took up the regular season pass, Coliseum needs about 6,670 subscriptions to generate each $1 million of revenue, which would be supplemented by limited advertising and a side-deal with Television New Zealand, which will get broadcast rights to a ‘match of the week’ and a highlights show.

“You do your research, make your assumptions and decide whether or not you’re going to do it,” Martin said. A marketing campaign between now and the August start date would include TVNZ, he said.
“We’ve signed a great deal with TVNZ.”

Sky TV shares dropped 4.6 percent to $5.41 as some investors said the emergence of an online challenger could signal a sea-change in the industry.

"The competitive environment is changing for them," said Mark Warminger, who holds Sky Network shares among the $450 million in New Zealand equities he helps manager for Milford Asset Management.

"For a long time they have held a monopoly in this country and they have been able to secure content across the board," Warminger said. "This is the start of the change. They may lose a number of other sports in the future."

The company's shares have been trading at a price to earnings multiple of 16.9, and are forecast to drop to 14.6 times earnings, according to Reuters.

"Sky TV is no longer a growth company, it is transitioning more to a dividend yield type stock," Warminger said. The longer term consequences of competition should de-rate the multiple of the stock, he said.

In March, Rupert Murdoch's News Corp sold its 44 percent stake in Sky Network for $815.3 million at $4.80 a share. Four months earlier, New Zealand's billionaire Todd family sold its 11 percent stake for $218 million at $5.05 a share.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Fruit & Veg Crackdown: Auckland Fruit Fly Find Under Investigation

The Ministry for Primary Industries (MPI) is investigating a find of a single male Queensland fruit fly in a surveillance trap in the Auckland suburb of Grey Lynn... MPI has placed legal controls on the movement of fruit and some vegetables outside of a defined circular area which extends 1.5km from where the fly was trapped in Grey Lynn. More>>

ALSO:

Scoop Business: Westpac NZ Reaches $2.97M Swaps Settlement

Westpac Banking Corp’s New Zealand unit has agreed to pay $2.97 million in a settlement with the Commerce Commission over the way the bank sold interest rate swaps to farmers between 2005 and 2012. More>>

ALSO:

Going Dutch: Fonterra Kicks Off $144M Partnership With Dutch Cheese Maker

Fonterra Co-operative Group, the world’s largest dairy exporter, has commissioned a new dairy ingredients plant in Heerenveen, in the north of the Netherlands, its first wholly-owned and operated ingredients plant in Europe. More>>

ALSO:

Scoop Business: NZ Retail Sales Beat Estimates

New Zealand retail sales rose more than expected in the fourth quarter, led by vehicle-related transactions, food and beverages, adding to evidence that cheap credit and a growing jobs market are encouraging consumers to spend. More>>

ALSO:

Delivery Cuts Go Ahead: 'Government Money Grab' From NZ Post

"It's a money grab by the Government as the shareholder of New Zealand Post" says Postal Workers Union advocate Graeme Clarke about the changes announced by NZ Post. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news