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 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. 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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Speaking For The Bees: Greens Call For Neonicotinoid Pesticide Ban

The National Government should ban the use of controversial pesticides called neonicotinoids after evidence has revealed that even at low doses they cause harm to bee populations, the Green Party said today. More>>


Science Awards: NZAS Celebrate NZ Scientific Achievements

The Marsden Medal is awarded for a lifetime of outstanding service to the cause or profession of science, in recognition of service rendered to the cause or profession of science in the widest connotation of the phrase. This year’s medal is awarded to Dr Mike Andrews. More>>


Court Rules: Affco 'Unlawfully' Locked Out Meat Workers

The note says the full court found for the plaintiffs, "that is that the defendant locked out the second plaintiffs unlawfully and that it breached s 32 of the Act by acting otherwise than in good faith towards the plaintiffs while collective bargaining was still going on." More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news