NRL TV rights deal has dug itself a bigger hole

By Barien9 / Roar Rookie

“When you cannot place yourself in the consumer’s shoes, you may have lost complete perspective on your business goals.” – Matthew Johns on Fox, 22/8/12.

The first point that needs to be addressed is the pressure that had been placed on the commission. Many analysts and journalists placed so much emphasis on John Grant’s billion-dollar TV rights figure that just $1 less than this wonderful number would have been considered a failure.

Hypothetically, there are two ends of the measuring sticks: a high figure for TV rights and complete consumer satisfaction. Essentially, there is an inverse relationship between the two. The reason for this inverse conflict is because TV stations would ideally love to broadcast games in a compromised fashion.

They’d prefer to have all games delayed, to allow for ads. They want all games broadcast in prime time in order to attract a greater audience. They desire a maximum number of breaks in play (i.e. scrums, penalties, etc.) to allow for ads. They also want exclusive rights to the NRL.

NRL fans, however, would love to have games broadcast in a contrasting manner. Supporters obviously want to have all games broadcast live and free to air. Most people would prefer more afternoon games, allowing for them to work the next day, cater for family commitments, etc.

As you see, there is obviously a complete conflict between the two. It can be said neither of these situations can be implemented, but the commission where given the duty of finding a deal somewhere in between that achieves enough money for the game, while furthering the rugby league experience.

From above it can be understood, since Grant needed to achieve a billion dollar mark, the scale has been shifted heavily towards the TV stations’ ‘perfect world’.

There’s no doubt in terms of revenue streams for TV stations, AFL is better than NRL. This is mainly due to the length of the game and various natural breaks (I believe it’s one or two per goal), plus more ‘manufactured’ breaks of four quarters instead of two halves.

Ultimately the NRL achieved more or less the same figure as the AFL (the NRL still don’t have a mobile platform, for which AFL received about 160 million), but in doing this the AFL didn’t have to sacrifice as much to the consumer experience. In fact, they extended it.

Three initiatives were key to the AFL deal. Firstly, three live games, free to air, plus one delayed. Secondly, all live games for paid television subscribers and thirdly, live game for those teams in their home state.

It needs to be understood that in the short-term, while it may sound good to the administrators and players for their now secure jobs, NRL fans have been left with essentially the same package and the fan experience has been diluted. There are no more live games and no more games for free to air TV, which would have allowed the game to expand to the consumer who right now doesn’t follow NRL.

The Crowd Says:

2012-08-28T16:31:45+00:00

Queensland's Game Is Rugby League

Guest


You're always been a great supporter of the code. The game is indebted to people like you.

2012-08-28T16:28:36+00:00

Queensland's Game Is Rugby League

Guest


It will make it hard for the AFL to draw poor kids from single mother households to Auskick. They do it by giving free boots and free membership to the kids. Lower the prices and they'll be able to play the sport they really want to play. Rugby league!

2012-08-28T14:33:02+00:00

Von Neumann

Roar Guru


http://www.smh.com.au/rugby-league/league-news/addons-set-to-take-nrl-rights-price-up-to-125b-20120828-24yv7.html If you take a look at this link, it will tell people about a season pass arrangement, also about how the deal will take the rights value to 1.25 or thereabouts. fantastic result. May you all thank me for sticking up for this game. We all should. They did what was right, what would work, and what mattered. Thank you ARLC. It may just take some people time to see this, but you should be thanking the ARLC. Best interests at heart.

2012-08-28T13:56:23+00:00

Von Neumann

Roar Guru


well said. One of the best things is that the cost to play the game will hopefully be reduced. This is surely the kind of thing they will do.

2012-08-28T13:53:56+00:00

Von Neumann

Roar Guru


thats right, even people who call themselves Aussie Rules can be experts. They never have anything positive to say and they only come here to subvert and gibe people, however subtly. My comment was illustrating a point. Its made a further point: that you serve no purpose but to troll people.

2012-08-28T13:46:21+00:00

Queensland's Game Is Rugby League

Guest


Sydney fans are holding the game back. They whinge about the Broncos dominating the Friday night timeslot, but they never acknowledge that every game that their team plays in the greater Sydney area is within driving distance! They don't need the games on TV when they can attend the bulk of them. Imagine living in Brisbane. The only games that are within driving distance are the home games for the Broncos and Titans. No one can expect a Broncos fan to go watch the Titans play in a game that does not involve the Broncos.

2012-08-28T13:34:51+00:00

Queensland's Game Is Rugby League

Guest


John Grant should allow the ailing suburban NRL clubs of Sydney join the dodo and Agro. The money that will go towards propping them up should be spent on building up the grassroots competitions in metro and regional Australia. Imagine how strong the game would be if the ARLC tripled the size of the grassroots competitions? Upgrading local clubs, lowering fees and providing equipment to juniors would see the participation rate increase significantly. People who play the game are going to be more likely to become lifelong rugby league fans, attend NRL games and become members of their clubs. Clubs will thrive when they have lots of members and regularly draw high attendances.

2012-08-28T13:23:20+00:00

Queensland's Game Is Rugby League

Guest


Soccer fans wouldn't watch the A-League if it was FTA. They would whinge about it not being as good as the EPL. It's how they justify not turning up to the games. Soccer fans do nothing but whinge. Give them what they want and they still whinge. They wanted the A-League. They got it, but all the do is whinge about it not being snobby enough for them. They're a pack of whingers.

2012-08-27T07:24:29+00:00

Australian Rules

Guest


Everyone has a right to comment... ...but you do realise how loooong your comments are, don't you?

2012-08-27T03:19:09+00:00

planko

Guest


Your stats are currently correct however your growth projections are questionable.... Mainly cause Sydney runs into signicant settlements on all sides of it's "growth" so it going to questionable where Wollonngong starts and Newcastle finishes ! With Sydney filling up everything in between ? Is centra coast becoming part of Sydney ... Is Geelong Part of Greater Melbourne... I love the phrase greater melbourne ? Sounds like the little brother with a chip on its shoulder ! How about we say Greater Sydney it includes Wollongong , The Central Coast and Newcastle and while you are there the blue mountains townships.

2012-08-27T03:11:41+00:00

planko

Guest


Dont delude yourself the growth in melbourne has stopped.

2012-08-27T03:07:03+00:00

Brian Watson

Guest


Get your facts right! Sydney has about 4,6 Million to Melbournes 4.2 million and catching up fast so dont delude yourself who will get to 8 million first. BTW I would rather have the Double crowd average the the AFL has over RL any day and the 700,000 paid up Members.

2012-08-26T04:06:37+00:00

Queensland's Game Is Rugby League

Guest


GoGWS, Maybe Grant was sending a message to all of those fans who refuse to go to the games. He might be telling them that he won't agree to screen all games live until they start attaending the games!

2012-08-26T02:45:17+00:00

Hamish

Guest


Matt-S When in trouble go the lie and class warfare defence. Its people like you that give NRL a bad name in some circles

2012-08-25T22:03:40+00:00

GoGWS

Roar Guru


One comment on streaming ...I think you're getting a bit ahead of yourself... streaming to phones, tablets and computers will only ever be complimentary to watching games on TV via cable and FTA..the largest value will stay around games delivered to TV... With the aTelstra AFL app I find it's handy to be able to watch games wherever I am but if I have acces to TV I watch that...

2012-08-25T21:46:15+00:00

GoGWS

Roar Guru


Digital/mobile have been partially sold to Foxtel already as part of the 1.025bn...the NRL will get a bit more from Telstra for mobile/online but not enough to go from 82% to 100%.... AFL fans are constantly told that it's game is an inferior TV game compared to RL, and that RL's true value is higher (Gyngal even repeated this nonsensical sentiment at the press conference) ...people keep spouting this laughable nonsense and seem to think it'll distract people from the cold hard reality that the 'inferior TV product' actually is getting better broadcast deals both in value and the access to live games... Yes the NRL has lower costs, and a lower risk strategy with no expansion teams...it also has almost no assets as an operation in its own right...in contrast the AFL is well on the way to owning Etihad stadium, and it is establishing it's own media division to directly broadcast games ... I think over the next 5 years you'll see a adjustment and partail swing back to fan access ..

2012-08-25T14:30:42+00:00

Queensland's Game Is Rugby League

Guest


Fans need to put it in perspective. The only thing they're missing out on is seeing two matches live on television each round. At least they have 3 matches on FTA at a viewable hour. Fans of other sports aren't so lucky.

2012-08-25T12:25:49+00:00

Von Neumann

Roar Guru


for sure dude, for sure, ok, good luck with stuff . i'll let you believe what you like because our two conversations are not lining up. does this have a point

2012-08-25T08:22:20+00:00

Matt_S

Roar Pro


Especially when our digital/mobile rights aren't finalised yet. Vlad made sure that wasn't mentioned by AFL Tele lackey Neil Cordy. We still have half the running costs of AFL, 2 less teams, less advertising opportunities, and yet nearly the same amount of money!!

2012-08-25T08:19:16+00:00

Matt_S

Roar Pro


GoGWS, just because the AFL has 4 FTA live games on over a weekend doesn't mean it's all great. The quality of AFL is crap compared to NRL. The GWS lost by how many today? GWS attracted how many converts today? More people watching AFL live on FTA will mean more people turn off in the long run because the code cannot sustain 18 teams especially in areas not wanted. The ratings in Northern states already allude to this.

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