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Author Topic: Sky the End is Nigh?  (Read 449 times)

Chrysalis

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Sky the End is Nigh?
« on: February 12, 2020, 01:54:49 PM »

It seems finally the EPL are looking at moving to streaming their games directly.

Sky has been very heavily reliant on EPL football for its business model, and has struggled to branch out from this.

I think when sold to comcast, the timing was not a coincidence, writing was possibly seen on the wall, now of course sky could end up been the provider of this streaming service, but I Would expect the EPL to move in a different direction as sky are hugely inflating the price consumers pay which is ultimately costing them money.

This affects BT also, but for BT, sport is just a small part of them, and they would just move on.

Thoughts?
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chenks

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Re: Sky the End is Nigh?
« Reply #1 on: February 12, 2020, 07:18:50 PM »

think you need to re-read the article.
this is NOT about UK rights, but about overseas rights where there is already on real relationship with a partner company.
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Chrysalis

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Re: Sky the End is Nigh?
« Reply #2 on: February 13, 2020, 01:10:50 AM »

initially yes, UK rights will go this way, its inevitable.
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Alex Atkin UK

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Re: Sky the End is Nigh?
« Reply #3 on: February 13, 2020, 02:55:08 AM »

I thought Amazon had already sniped some of this from Sky?
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Chrysalis

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Re: Sky the End is Nigh?
« Reply #4 on: February 13, 2020, 03:47:02 AM »

yeah they already have some games. :)
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chenks

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Re: Sky the End is Nigh?
« Reply #5 on: February 13, 2020, 12:06:18 PM »

initially yes, UK rights will go this way, its inevitable.

i disagree.
why would the EPL want to take ont he cost of running customer service, subscription payment services, and everything else involved in the provision of the service when they already have 2 partner broadcasters that are paying them billions for the rights to do it themselves?
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chenks

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Re: Sky the End is Nigh?
« Reply #6 on: February 13, 2020, 12:07:07 PM »

I thought Amazon had already sniped some of this from Sky?

just one days worth of games (and half another day) on a package that neither sky or BT could have bid on anyway - due to competition rules.
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j0hn

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Re: Sky the End is Nigh?
« Reply #7 on: February 13, 2020, 03:22:34 PM »

think you need to re-read the article.
this is NOT about UK rights, but about overseas rights where there is already on real relationship with a partner company.

This. Not gonna happen in the UK.

The EFL already do this, allowing clubs to sell their games worldwide direct to fans where the league hasn't already sold the rights in that country.

The EPL would struggle to raise the same revenues they get from Sky by making every game PPV.

The EPL will continue to sell the rights to a broadcaster, like Sky, who will sell it to the fans.
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chenks

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Re: Sky the End is Nigh?
« Reply #8 on: February 13, 2020, 03:48:25 PM »

"Premier League executive director Bill Bush has said English soccer’s top-flight will continue to favour broadcast rights deals for the foreseeable future, despite developing plans to launch its own over-the-top (OTT) streaming service.......................

“We’ve done a fair bit of direct-to-consumer testing and obviously we’d move in a flash if that’s where we thought the consumer was… but at the moment the balance is still very much with a territorial broadcaster,” said Bush.""

https://www.sportspromedia.com/news/premier-league-tv-rights-territorial-broadcaster-ott-streaming-bill-bush
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Chrysalis

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Re: Sky the End is Nigh?
« Reply #9 on: February 14, 2020, 02:28:29 AM »

i disagree.
why would the EPL want to take ont he cost of running customer service, subscription payment services, and everything else involved in the provision of the service when they already have 2 partner broadcasters that are paying them billions for the rights to do it themselves?

You remove the middleman, the Americans are doing this and its far more profitable.

Or they could choose employ Amazon or Netflix to do it so there is still a middleman, but the service would still be much superior to sky at likely lower cost, so much more consumers.

The feedback from the Amazon games is overwhelmingly positive, been able to watch VOD's of finished games and every single game over that period. 

Its not going to be tomorrow, but it will happen in my opinion within 10 years for the UK.

My guess is the next bidding will keep SKY/BT, the EPL do have legal hurdles as well.  But the bidding after that is where we may start to see larger scale changes happening.
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j0hn

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Re: Sky the End is Nigh?
« Reply #10 on: February 14, 2020, 08:12:28 AM »

I disagree entirely.

If you remove the middleman and the EPL sell direct then they would make consistantly less money.

Sky make so much because they bundle so much p00 together in their sport packages.

I would have zero option but to pay a fortune for Sky Sports including the Premier League if I want to watch Scottish football. A tiny percentage of that goes to Scottish football.
They don't get a penny from me, but neither would the EPL.

People who currently pay for Sky Sports pay £30 a month if they are a Sky customer, more through some other providers.
If you want BT Sport on top that's another £10-15 a month, again depending who you buy it from.
For the (very) limited number of games available on Amazon that's more money.

PPV per game from your club of choice might be cheaper for a single game.
What about the other games in the league.
What about the Golf, cricket, F1, etc.

A broadcaster will continue to bid Billions for EPL and the EPL will continue to lap it up.
It makes zero sense to sell direct to consumers in this country.
The broadcasters do a much better job bundling multiple sports and multiple games and getting value from that.

The EPL can't sell direct to fans in this country or any country where a broadcaster has bought the rights.
That's leaves a whole chunk of the world to offer PPV.
« Last Edit: February 14, 2020, 08:14:50 AM by j0hn »
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Chrysalis

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Re: Sky the End is Nigh?
« Reply #11 on: February 18, 2020, 06:23:12 AM »

The only advantage of the current deal is that basically there is still a bunch of people who havent got to grips with IPTV so those would be difficult to sell to, and it offers a fixed income to the EPL for the 3 year period so you could say peace of mind,

But the growth potential is extremely limited at this point and even what we have now is not sustainable, the current momentum is pushing sky more and more as a service only for the affluent with the price increases.  Subscriptions decrease, and to compensate the prices go up even further.  If you are someone who only cares about watching the big 4 clubs, who most of their games get aired and you rich enough that paying £100 a month for TV doesnt dent your wallet, then maybe you have your point of view.  If you a fan of Brighton, Leicester city, Southampton who only have perhaps 20-30% of their games on tv at the absolute most, why pay £100 a month to maybe get one game shown on average per month.

Some people just dont like change and progression.

So lets say if EPL IPTV was sold for £20 a month which is about 1/4 of what sky and BT charge.   On top of that every EPL game is shown and every game has a VOD, they would need to only sell around 2 million subscriptions to reach 4.8 billion in revenue (per year), that is very easily achievable.  As a reminder the current BT/sky deals are barely that for 3 years combined.

We at a point where illegal streams are a better service than the official option, people can literally have an illegal service straight to their set top box, switch channels like normal, and they can watch every single EPL game.  A lot of these streams are sold for not much less £20 a month, so that is a price that could be charged en masse.  Do not under estimate those cost of a middle man, middle men are a prime factor as to why inflation is so high now days, everyone wants their own piece of the pie.

Its got to a point where illegal streams are competition to the official service, the only way I can see sky and BT holding on is the combination of 2 factors (1) they drop prices significantly, which they wont and (2) they start showing every game which isn't in their interests due to the fact they are scheduled tv platforms.  I could see BT may possibly adapt, but not sky.

In 20-30 years we probably wont have scheduled tv at all anymore, it will nearly all be IPTV on demand.

Also I didnt want to say it, but if you want some kind of substance to it, there is already 9 clubs in favour of changing strategy.  So it wont need much more of a shift for it to happen.  The EPL has also shown in the past they are prepared to take risks, when they took on BT as well as when they broke away from the football league if it means growth in the long term.
« Last Edit: February 18, 2020, 06:37:27 AM by Chrysalis »
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chenks

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Re: Sky the End is Nigh?
« Reply #12 on: February 18, 2020, 08:53:06 AM »

so the EPL charge £20pm.
they will be covering the cost to produce live coverage for every game, the cost to provide the actual service, the cost of customer service and all that for £20pm?

if you think that service would cost just £20pm then i think you need to go lie down for a while.
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Chrysalis

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Re: Sky the End is Nigh?
« Reply #13 on: February 20, 2020, 08:04:54 PM »

The majority of the costs of EPL football is the rights.

The production costs are a fraction of that.

Are you suggesting 4.8 billion annual revenue isn't enough to cover these costs?

Even if the figures were say 1/3 of what I suggested so maybe 600k or so subscribers, it would still be revenue in the billions.

Also I agree they probably would charge more, as capitalism been what it is entities tend to charge the maximum they can get away with in the UK, but if common sense was applied the charge would be kept low to kill of the illegal services and maximise customer count.  With that said though I think it would be cheaper then buying a sky satellite tv package.  So somewhere in between.
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chenks

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Re: Sky the End is Nigh?
« Reply #14 on: February 21, 2020, 08:39:03 AM »

you appear to be forgetting that if the EPL took everything in house and provided their own service they would need to provide their own customer services, their own billing systems, their own platform costs as well as taking on the production costs.

why is that "better" than simply selling the rights to a company and letting them deal with all those overheads? the EPL get the money and leave everything else to the rights holders.

the clubs, which are the EPL, are never going to vote for something that is going to cost them money and essentially mean they end up getting less income personally.
broadcast methods may change in the future, but the preference is always going to selling the rights and counting the money.
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