AFL TV: Fox coverage could be far Fetched

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By Redb, 19 Mar 2010 Redb is a Roar Guru

Tagged:: AFL, fetch, pay tv, tv revenues

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A Malaysian billionaire is apparently in the mix to bid as a partner for the next round of the AFL TV rights for 2012-2016.

As reported in this article in The Age:

“T. Ananda Krishnan, who has extensive satellite television interests in Asia through his Astro network Fetch, has put the idea of a joint bid for sporting rights to the commercial networks, sources have confirmed.”

Foxtel is deemed as the likely loser given that currently the free to air commercial TV networks on sell the rights with AFL endorsement to Foxtel and Austar for a figure of $315.5M over five years.

The article suggests channel 10 is already interested in Fetch’s offer which would see a breakup of the current agreement with channel 7 should channel 10 go it alone.

Fetch would deliver any AFL content through a broadband service which would include other programming.

Importantly they are looming as a challenger to Foxtel/Telstra on many fronts if this quote from the article is accurate:

“Fetch will provide pay TV to internet service providers, such as iiNet, Internode and TPG, so they can offer a bundled deal of unmetered pay TV, fixed-line telephone and broadband internet for a monthly fee, allowing them to compete more effectively compete against Telstra, a 50 per cent shareholder in Foxtel and current holder of the online rights.”

This type of content delivery has its dangers for Fetch given that Australians have been slow to take up digital TV, but there is no doubt the convergence of the internet and TV is getting closer every day.

Delivery of ‘content’ via mobile phone on the other hand is booming with the iPhone almost a part of the daily vernacular with the explosion of apps. [Download The Roar's iPhone app here, if you're interested. Ed.]

What is unequivocal though is the level of competition this brings to the TV rights table for the AFL.

Coupled with the proposed changes to the anti siphoning legislation and the boom in technology, sport is seen as a prime vehicle to bring about mass change in how we fans / consumers watch our sport.

Fetch apparently has deep pockets and, if willing to put in the hard yards, it will need every penny. Australians on mass need ‘plug and play’ technology and time to adjust.

For Foxtel though, this is a massive wake up call. Telstra as part owner certainly won’t stand idly by and allow another player to ride the ‘techno’ wave of internet and mobile phone delivery for sport in Australia.

For the AFL, the timing is ideal given Foxtel were difficult to bring to the table last time without offering more live content and four games a week.

Who knows what Foxtel might have expected from the AFL this time around as far as more games, Monday Night Football, etc. Now potentially they will be scrambling just to hang onto their AFL content.

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The Crowd Says (49) | Page 1 of Comments

Dogz R Barkn said | March 19th 2010 @ 1:01pm | Report comment

I’ve only just read about this Fetch mob in the business pages today, but I have to be honest, I’m quite confused as to who the hell they are and what their main vehicle is for showing games.

Would it basically be taking games away from Fox and plonking those on some sort of online/broadband format?

Any tech heads out there who can shed any light?

This is the most fascinating point about all this – many non-AFL people have argued that the AFL won’t see the billion dollar deal because other cheaper platforms will chew into the TV eyeballs market, but the arrival of this player, from Malaysia no less, makes it sound as if the reverse might be true – that it will actually usher in big dollars rather than eat into them.

The business pages I was reading was silent as to whether Fetch was chassing the rights to any other Australian comp.

All of a sudden, it’s not hard to imagine that News Ltd will want to maintain a bit of a hold on League so as not to get stuck in expensive bidding wars.

If some other format was able to wrest both League and AFL from Fox, it sports channels would virtually collapse over night.

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- Redb said | March 19th 2010 @ 1:27pm | Report comment
  
  DogZ,
  
  I don’t pretend to be a tech- head either, but Fetch offer some sort of set top box so its similiar to Foxtel but is Broadband driven not via satellite.
  
  The interest from Fetch via Ch 10 adds another player to the bidding rights for the AFL. A very good outcome.
  
  It’s possible that Foxtel/Telstra miss out on AFL games, which will still have a bigger free to air component like now, but a different mix of options.
  
  Reply
  - AndyRoo said | March 19th 2010 @ 2:21pm | Report comment
    
    I am not a tech head either but I use the internet for streaming quite a bit. I’m guessing that’s what this is and the box part is are pre programed streams so you get a better interface and don’t have to muck around, just click a button and watch. Probably some memory in their too to give better buffering so that even if your on ADSL their is never any slow down of the images.
    
    It’s very reliant on peoples internet connection. Those on wireless or small plans needn’t apply but by the time the broadcast rights for AFL come arround it’s quite doable I guess.
    
    Reply
    - Redb said | March 19th 2010 @ 2:27pm | Report comment
      
      AndyRoo,
      
      It’s Broadband only no streaming.
      
      “Fetch provides subscription TV delivered via a broadcast signal over broadband — but not via a satellite or streamed from the internet”
      
      It’s limitation will be to Broadband compatible areas. One concern would be the slow speeds we experience in OZ compared to overseas and universal availability via a second tier carrier like iinet, etc.
      
      Unless of course Rudd’s National Broadband thingy will solve those issues.
      
      Reply
      - Dogz R Barkn said | March 19th 2010 @ 2:35pm | Report comment
        
        I pity the poor old Victorians who had to go from C7 to Fox then maybe to Fetch!!
        
        It must get tiresome all this hopping around!
        
        I can hear their cries of despair: Please, gawd, I just wanna sit and watch the footy!!
        
        Reply
        
        Redb said | March 19th 2010 @ 2:43pm | Report comment
        
        Considering the relatively low penetration of foxtel to FTA in Vic, it wont too bad particularly if they make it easy and relatively cheap in comparison.
        
        For Foxtel you need a set top box, a phone line (for IQ) and a satelitte dish installed. This would be set top box and phone line (with splitter).
      - AndyRoo said | March 19th 2010 @ 2:42pm | Report comment
        
        Streaming is just the how the signal will get to that box, but “unmettered” removes the problem for people on small plans.
        
        “fixed-line telephone” I assume this means ADSL …it wouldn’t be dial up
        
        I live inside the Brisbane metropolitan area in suburbia and can’t get broadband, only ADSL. It works pretty well though on some days though it’s worse than others but by and large you can watch a live game with no troubles. You do get the odd bit where it sort of hangs for a few seconds. but with just a little bit of buffering that would be no problem. I am guessing they will probably want some storage in the box anyway so they can offer products like “the ability to pause and rewind live TV” and such.
        
        Quite often I thought about setting something like this up because I always wished fox would offer a live streaming service and to do it they should produce a box like this. Would cut out the mucking around and the need to have the lap top connected to the TV and would make it accesible for grand parents.
        
        I don’t have Telstra but I think they offered unmettered downloads of the NRL games (24 hrs after they are played) to their customers in HD. Dogs of War has mentioned it previously.
        
        So I think the national broadband would be a huge plus but it’s possible right now.
        
        Reply
        
        Redb said | March 19th 2010 @ 2:45pm | Report comment
        
        The service provider definitely has to make it ‘plug and play’ for it to work with the masses (incl me) .
MattS said | March 19th 2010 @ 1:21pm | Report comment

Funny, AFL has been very slow in giving foxtel the ratings it wanted. What would be different for fetch?

The only reason I can see AFL mentioned without the NRL is they are the first cab off the rank in terms of TV negotiations. Otherwise, fetch should be clamouring for the NRL as QLD/NSW markets have proven they are more likely to take up the pay tv banner than their southern cousins especially if league is on the table.

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- Redb said | March 19th 2010 @ 1:30pm | Report comment
  
  The big difference is that AFL has long been more accessible on free to air TV.
  
  Do not turn this into code war BS!
  
  Reply
- DB said | March 22nd 2010 @ 1:21pm | Report comment
  
  the AFL give foxtel very good ratings despite the lower take up of subscriptions for Melbourne Perth and Adelaide compared to Sydney and Brisbane, the AFL has more viewers than the NRL per a game in these 5 cities combined
  
  Reply
Michael C said | March 19th 2010 @ 1:44pm | Report comment

Confused me too – - – reading through it and I’m trying to work out if it’s good news, good news for the AFL, good news for everyone, bad news for Telstra Shareholders, or….

…..the end of the world as we know it.

I’m leaning towards the latter at present!!!! (It’s easier to {ir}rationalise in my Friday arvo brain).

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- Redb said | March 19th 2010 @ 2:04pm | Report comment
  
  MC,
  
  The potential but not necessarily the probability is that Foxtel who currently buy the rights to AFL matches from Ch 7 & Ch 10 will totally lose their AFL coverage.
  
  It is good news for the AFL to have another bidder.
  
  It was always likey that new technological ways to receive AFL games such as mobile phone and braodband internet were going to introduce new players beyond the usual types.
  
  Telstra itself has long been rumoured in wanting AFL rights in some form. If has a 50% interest in Foxtel and no doubt was looking at expanding the delivery of ‘content’ through new means next time around anyway. Now they have a competitor who wants to do likewise.
  
  Free to air TV networks still have primary rights it wont be the end of the world as we know it.
  
  Foxtel has become over priced with too many junk channels this will shake them to the core.
  
  Reply
JamesP said | March 19th 2010 @ 2:01pm | Report comment

MattS you are starting to sound like Roy Masters.

There are far more foxtel boxes in NSW than Victoria.

However…from Fox Sports themselves: ”Our news and analysis program On The Couch is the highest-rating program outside of live sport on the entire pay TV platform,” Law says. It draws, he claims, ”about 120,000 people on average per week”. The variety show Before The Bounce recorded, he says, ”a 40 per cent increase” last year, and has ”great scope to get bigger”.

Source: http://www.smh.com.au/afl/afl-news/tvs-footy-flood-20100312-q49j.html

The fact that AFL rights are up before NRL i think is in the AFL’s favour. The AFL will get a billion plus TV deal leaving not much for the other broadcasters to spend…

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- Redb said | March 19th 2010 @ 2:06pm | Report comment
  
  JamesP,
  
  This is not a relevant debate or an AFL versus anybody else article. It’s about new technology and how it will change the sports viewership landscape for future years.
  
  Its a plus for the AFL in its future TV rights deal that’s for sure.
  
  p.s. Just on Before the Bounce – one of my favourite shows, but it could move to Fetch.
  
  Reply
  - Dogz R Barkn said | March 19th 2010 @ 2:31pm | Report comment
    
    I like both Before the Bounce and On the Couch – in fact – Iike all the panel type shows on Fox – both the serious ones and the funny ones – I watch every one of them if I get the chance.
    
    Reply
    - Redb said | March 19th 2010 @ 2:47pm | Report comment
      
      It’s certainly an under valued part of the AFL package for Foxtel, all the AFL talk shows rate very well.
      
      Reply
    - John Ryan said | March 19th 2010 @ 5:20pm | Report comment
      
      I,m curious why you have my old club badge as your avatar and for all intents and purposes you are an AFL fan,another false flag.
      
      Reply
- Dogz R Barkn said | March 19th 2010 @ 2:57pm | Report comment
  
  Just read that article – one thing jumped out at me – that there are 17 AFL related shows on FTA TV – that’s an unbelievable statistic.
  
  Reply
  - AndyRoo said | March 19th 2010 @ 3:05pm | Report comment
    
    Does that include “Packed to the Rafters”…. joking
    
    Reply
- Michael C said | March 19th 2010 @ 3:09pm | Report comment
  
  on the little side topic – the fact is that the AFL signal is split rather drastically across WA, SA, Vic, NSW, QLD etc – - which is why the top 2 NRL matches each week on Fox will outrate the top 2 AFL matches in most instances……however, the overall AFL Foxtel ratings vs overall NRL foxtel ratings would give a very different picture……..that said of course NSW and QLD have the highest proportion of set top box penetration – - but, a number of those must be owned by AFL fans north of the murray anyway.
  
  Reply
JamesP said | March 19th 2010 @ 2:35pm | Report comment

Yes but we are discussing this in the contex that a new provider could push up the value of the rights.

With that in mind, I couldn’t let a comment such as “AFL has been very slow in giving foxtel the ratings it wanted” go to pass, when it is clear that having the AFL on Fox has given many from the southern states incentive to buy a subscription. Foxtel CEO Kim Williams has said the same.

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- Redb said | March 19th 2010 @ 2:40pm | Report comment
  
  Do you think Broadband could replace cable TV for ‘secondary’ AFL coverage.
  
  I think mobile phones like iphone are ripe for this content and the AFL should get a bounty for it.
  
  Reply
  - AndyRoo said | March 19th 2010 @ 2:54pm | Report comment
    
    I think rights wise it will be Fetch vs Fox.
    
    Fetch are likely to be the first player but unless the government sets us some BS restrictions then we could easily see heaps of providers propping up with all manner of content. Just buy their box and your away…. they would probably have to come up with a method to consolidate them (no one wants multiple boxes) so Fetch may carry other providers channels.
    
    Their are a lot of niche interests where this would be a great way to service a market without spending big. For example you could buy a box that gave you Chinese TV 24/7.
    
    Reply
    - AndyRoo said | March 19th 2010 @ 3:11pm | Report comment
      
      Now having fully read the age article
      
      “TV executives question whether Fetch can succeed in getting enough ISPs on board — number three player iiNet is going public in the next week — to ensure the audience is large enough to satisfy the government’s anti-siphoning rules and the AFL.”
      
      This is an example of the BS restrictions I was talking about.
      
      The system they have sounds fine (it will be about as complicated as installing your VCR) and you won’t need to pay an installation guy.
      
      If they get the AFL they would definitely grab a huge audience but it seems they have to have an audience before they can get it which makes it tough.
      
      Reply
Damo said | March 19th 2010 @ 3:50pm | Report comment

Would ESPN Australia be interested in expanding their presence in the market and bid for the pay-TV AFL rights?

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Midfielder said | March 19th 2010 @ 4:32pm | Report comment

Redb

Thanks for putting this up … the new age has finally arrived … will effect all sports in time ..

Just some simple cal’s … In Australia there are over 20 million phones… but say a phone company … lets call it Midfielder… for the sake of a name..

So midfielder phone company wants an 1 million phone users, buys a sport … let’s use the AFL as they are first cab off the rank …

1 million folk and I will charge you $ 15.00 per month .. revenue 15 million per month + 180 million per year per million or 200 million if $ 20.00 … with 10 to 15 million phones out their the mind can only assume ..

The other thing online TV providers do is provide banks of shows … meaning like now you can go back and watch stuff whereas on pay TV you need to watch what they show…

Ch 10 are sitting in a great position…

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Cpaaa 2018 said | March 19th 2010 @ 8:44pm | Report comment

Good article RedB. Thanks Mid for crunching the numbers.

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Moonface said | March 19th 2010 @ 9:03pm | Report comment

The “Malaysion billionaire” is ficticious and another attempt by the AFL to bid up their media rights like they used Channel 9 last time.

There is no possibility of the Australian government allowing another pay TV operator to get a TV license in Australia.

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Redb said | March 19th 2010 @ 9:04pm | Report comment

Tks mid & cpaaa. Heady days indeed.

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