Nine targets NRL's digital arm as part of revised broadcast deal

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Nine targets NRL's digital arm as part of revised broadcast deal

Post by Beaussie »

Does Nine have a valid point about the direct competition the NRL’s digital arm is to its broadcast partners?

Will the NRL have to accept this takeover of its digital rights to keep Nine happy? A cost saving measure for the NRL?


Nine targets NRL's digital arm as part of revised broadcast deal
By Michael Chammas
May 2, 2020

Nine Entertainment Co has expressed interest in taking over the NRL’s digital arm as part of cost-cutting measures in a revised broadcast deal.

Sources close to the negotiations say Nine’s proposal for an extended deal until the end of 2025 includes the code’s digital arm, led by NRL.com, which the free-to-air network believes currently runs in direct competition with its two broadcast partners.

Nine, which is the publisher of this masthead, has proposed it takes over the NRL’s profitable digital network, which was recently valued at $50m and costs about $15m a year to run, including $10m to provide clubs with digital services.

Nine and Foxtel have been at loggerheads with the NRL for three years, arguing that their rights investments have been used to prop up a digital division that would in the future be pitted against them in a battle over broadcast deals.

The proposal nullifies the potential competition, but also gives Nine access to the NRL’s 1.6 million account holders and the largest social media footprint (5 million people) of any sport in the country.

The proposal also fits in with Nine chief executive Hugh Marks’s aim of redirecting funds away from head office back to the clubs.

Image
Nine chief executive Hugh Marks and ARLC chairman Peter V'landys.CREDIT:AAP, LOUISE KENNERLEY

In a statement earlier this month, Nine criticised the NRL for its "bloated head office" and "years of mismanagement" and now the company has asked ARLC chairman Peter V’landys to provide a breakdown of how he intends to significantly reduce costs at Rugby League Central. That breakdown has not yet been outlined.

The NRL’s 70-person strong digital department is one area Nine has targeted. It believes it can operate the websites and apps of the 16 clubs, the two states and the governing body under a more cost-efficient model, while also providing content through its Wide World of Sports production empire.

Nine, through rights and production costs, invests about $140m a year in rugby league, which is the equivalent of what it spends on all its news, current affair and breakfast shows across five major cities. It is now wondering if that money could be better spent elsewhere to ensure its own long-term viability.

Marks has put the argument to V’landys that if the broadcast deal is not significantly reduced, the network will not be in a position to bid for future rugby league rights.

As it stands, the NRL is facing losing at least $80m of the $330m in anticipated broadcast revenue from Foxtel and Nine in 2020.

Both broadcasters, using the current state of affairs around the coronavirus pandemic as leverage, want to renegotiate the deal.

Nine, which had pledged $575m to the NRL for a five-year broadcast deal that expires in 2022, will also spend about $125m in production costs over the same period. It says that model is no longer sustainable and is seeking a significant reduction in the deal.

Foxtel had been pleading with the NRL for weeks to ensure it gets as many of the 24 rounds to provide its dwindling pay television subscribers, but on Thursday the pay TV network had a change of heart in regards to how much it was willing to pay.

Foxtel now agrees with Nine that the product is severely diminished without a crowd and is of lesser value in a weak advertising market.

https://www.smh.com.au/sport/nrl/nine-t ... l#comments


"One in every 24 Australians is now a member of an AFL club, a sign that the national reach of Australian football has never been greater," League CEO Gillon McLachlan said.

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Re: Nine targets NRL's digital arm as part of revised broadcast deal

Post by leeroy*NRL* »

It is direct competition.
CH9 and FOX


But PVL must stand strong
This must not be sold
It is to valuable and will only build
As an asset into the future.



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Re: Nine targets NRL's digital arm as part of revised broadcast deal

Post by Terry »

leeroy*NRL* wrote:
Sat May 02, 2020 10:42 am
It is direct competition.
CH9 and FOX


But PVL must stand strong
This must not be sold
It is to valuable and will only build
As an asset into the future.
Interesting development!! Phil Gould seems to think its worthless anyway. But he does work for 9 who would benefit if it was disbanded or sold off. I'd have to see the P&L of it before commenting on its value or worth.



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Re: Nine targets NRL's digital arm as part of revised broadcast deal

Post by leeroy*NRL* »

Terry wrote:
Sat May 02, 2020 5:51 pm
leeroy*NRL* wrote:
Sat May 02, 2020 10:42 am
It is direct competition.
CH9 and FOX


But PVL must stand strong
This must not be sold
It is to valuable and will only build
As an asset into the future.
Interesting development!! Phil Gould seems to think its worthless anyway. But he does work for 9 who would benefit if it was disbanded or sold off. I'd have to see the P&L of it before commenting on its value or worth.
On Twitter Phil Gould has been a puppet for channel 9

Quote from Twitter regards NRL DIGITAL

PhilGould15

@PhilGould15
2h

Neither Nine, News Ltd, Fox, nor the NRL Clubs wanted the NRL digital platform to be built. It’s cost the NRL a fortune to build and doesn’t bring a return. It’s not good business for the NRL or anyone. It interferes with ALL the media companies and ALL the clubs.



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Re: Nine targets NRL's digital arm as part of revised broadcast deal

Post by Beaussie »

Terry wrote:
Sat May 02, 2020 5:51 pm
leeroy*NRL* wrote:
Sat May 02, 2020 10:42 am
It is direct competition.
CH9 and FOX


But PVL must stand strong
This must not be sold
It is to valuable and will only build
As an asset into the future.
Interesting development!! Phil Gould seems to think its worthless anyway. But he does work for 9 who would benefit if it was disbanded or sold off. I'd have to see the P&L of it before commenting on its value or worth.
Perhaps the NRL will not have a choice if it wants to keep its broadcast partners on board and not feeling like they’re in competition.

Gees what a mess the NRL finds itself in. House of cards comes to mind.


"One in every 24 Australians is now a member of an AFL club, a sign that the national reach of Australian football has never been greater," League CEO Gillon McLachlan said.

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Re: Nine targets NRL's digital arm as part of revised broadcast deal

Post by Terry »

Beaussie wrote:
Sat May 02, 2020 8:28 pm
Terry wrote:
Sat May 02, 2020 5:51 pm
leeroy*NRL* wrote:
Sat May 02, 2020 10:42 am
It is direct competition.
CH9 and FOX


But PVL must stand strong
This must not be sold
It is to valuable and will only build
As an asset into the future.
Interesting development!! Phil Gould seems to think its worthless anyway. But he does work for 9 who would benefit if it was disbanded or sold off. I'd have to see the P&L of it before commenting on its value or worth.
Perhaps the NRL will not have a choice if it wants to keep its broadcast partners on board and not feeling like they’re in competition.

Gees what a mess the NRL finds itself in. House of cards comes to mind.
Hahahahahahah!!!!! Gee........what a surprise beatup bagging RL lolololol!!!!!!! I'll let you know how that house of cards is going when this is all over pal!!!!



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Re: Nine targets NRL's digital arm as part of revised broadcast deal

Post by AFLcrap1 »

Lol the jealousy is hilarious .


LIC self ownage
Lol $10 NRL tickets.$10 NRL tickets .How pathetic is that ?
Crickets chirping after I post $5 AFlol tickets .
Self ownage ..no one does it better .

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Re: Nine targets NRL's digital arm as part of revised broadcast deal

Post by leeroy*NRL* »

So much support for NRL DIGITAL from NRL fans

Yet CH9 say NRL cannot run properly
But would love this asset at there disposal



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Re: Nine targets NRL's digital arm as part of revised broadcast deal

Post by leeroy*NRL* »

Grant calculates that if the NRL converted half its existing 1.6 million digital customers into $25-per-month subscribers, and had a free-to-air broadcaster pay a fair but lesser price than Nine pays now - plus monetises other available revenue streams - it could produce annual revenue of over $360m with advertising offsetting production costs.



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