Nine’s NRL Rights Deal Is “Very, Very Good Indeed”

Nine’s NRL Rights Deal Is “Very, Very Good Indeed”
SHARE
THIS



Nine’s new NRL deal – announced yesterday – that sees the Network snare the bulk of rights to the game until 2022 has been labeled a smart move by the Network.

Nine surprised everyone – no more so than rivals Foxtel and Channel Ten – when it sprang $925 million for the rights for four years in a deal starting in 2018.

The preemptive strike and offer was said to be so good the NRL simply had no choice but to sign on the dotted line there and then.

Media analyst, Steven Allen from Fusion Strategy, stopped short of calling it a triumph for Nine boss David Gyngell but told B&T  “it’s a very, very good deal indeed. We’re in very low growth or no growth advertising for free-to-air television. Nine now has the rights and the audience can’t get this content anywhere else. I think the important thing here is that Nine has the digital rights too.”

Allen added that in 2012 Nine narrowly avoided going into receivership following a last gasp deal with creditors, so the fact it’s been able to stump-up close to a $1 billion is, in many ways, testament to Gyngell’s stewardship in recent times.

The NRL reportedly want $1.7 billion over the four years and it is now up to Foxtel to put in a bid for the pay TV rights. However, what it’s prepared to pay is anyone’s guess considering Nine now has four live games a week, while the pay TV provider is also set to lose its signature Monday night match.

Allen agreed that there had been a lot of talk about Nine spending $925 million – double its current rights agreement – but he believed the criticisms were misguided.

“Everyone is looking at the headline number and you can’t do that,” he said. “Nine’s doubled the number of live games they can show and live audiences are much larger than delayed audiences and the second thing here is they have the digital rights. That’s another form of consumption that’s clearly on the rise and by the time this deal clicks in 2018 it will be much larger again than it is today. What Nine will charge for that is anyone’s guess. Will you get advertising accompanying it? Who knows”

Allen didn’t believe advertisers would be slugged more for air-time or brands forced to pay more for jersey logos or on-ground sponsorships due to the increase in (live) TV time. Nor did he believe Nine would meddle in scheduling to suit its audiences or want more ad time during matches.

“But for sure, for Nine this is all about its Sydney, Brisbane and Melbourne audiences,” Allen said before agreeing teams that rated well would probably get the prime spots on Thursday and Friday nights. The poorer rating teams would be relegated to Sunday afternoon if they got air-time at all

However, there are commentators who believe Nine have paid way overs to outflank its rivals. Nine also have a deal – estimated at close to $90 million a year – to broadcast the cricket rights. Between the cricket and the NRL Nine’s springing close to $300 million a year; a tough ask in a slow ad market.

Speaking to The Australian this morning, Nine’s CFO, Simon Kelly, said he believed the NRL deal would increase audience share and enable the network to charge more for ad space. “I’m confident that with the doubling of the number of live hours and the prime-time slots that we’re going to be able to grow CPMs for advertising rates,” he said. “We are banking on the sustainability of the code and we think this configuration really excites viewers.”

When it came to the next piece in the NRL rights puzzle – Foxtel’s move – boss of the NRL, Dave Smith, said the deal was a work in progress.

“There’s a long way to go on the other bits and pieces,” Smith told The Australian. “We have started — we’re talking to all the technology and streaming companies. Of course, we would be talking to Patrick (Delany — Fox Sports CEO) and Fox so those conversations continue.”

There has also been speculation that if Foxtel signs on to show every game live then Nine may request its asking price to be reduced. Likewise, Foxtel may be relunctant to stump up the big dollars being asked knowing Nine now has half of all game’s live on free-to-air.

Arguably, the biggest loser in all this in Ten who had hoped that its pending alliance with Foxtel would see some NRL games thrown its way. However, Gyngell’s “very, very good deal” yesterday has all but put the kybosh on that. And with the ACCC looking very closely at Ten’s Foxtel deal and without any top flight sports rights, yesterday’s news of Nine’s mega deal would not have been warmly received over at Ten HQ.

 

Latest News

Women In Media Profile: Elaine Herlihy
  • Advertising
  • Marketing

Women In Media Profile: Elaine Herlihy

If you've come here looking for Elaine Herlihy's famed scone recipe then it'll be the only disappointment you'll endure.

by B&T Magazine

B&T Magazine
The Works Launches Podcast With RXP Services & Global Law Firm Norton Rose Fulbright
  • Advertising
  • Technology

The Works Launches Podcast With RXP Services & Global Law Firm Norton Rose Fulbright

Expert insights on what’s trending in the world of technology, data and innovation will be discussed in a new podcast powered by The Works, digital services consultancy RXP Services, and global law firm Norton Rose Fulbright. The Smart Dust podcast – named after micro-electromechanical computers that that can be breathed in to monitor the human […]

The Delightful Ita Buttrose Quits Studio 10 After Five Years
  • Media

The Delightful Ita Buttrose Quits Studio 10 After Five Years

Network Ten has announced that after almost five years as co-host of the morning show Studio 10, former Australian Of The Year, Ita Buttrose, has quit the show. Buttrose’s final appearance will be tomorrow’s ANZAC Day program. A legendary media editor, business person, television personality, best-selling author and dedicated community and welfare contributor, Buttrose has been one of the […]

by B&T Magazine

B&T Magazine
Why We Need To Make Consequences Cool
  • Opinion

Why We Need To Make Consequences Cool

Georgia Murch (pictured below) is an expert in creating feedback cultures and author of Fixing Feedback and her new book, Feedback Flow; The Ultimate Illustrated Guide to Embed Change in 90 Days. In this guest post, Murch says it’s time to extract the best out of your underperforming staff… When I first started managing a team it was hard. Yes, it was […]

Opinion

by B&T Magazine

B&T Magazine
Lovatts Media Acquires Nourish Magazine From Blitz Publications
  • Media

Lovatts Media Acquires Nourish Magazine From Blitz Publications

Lovatts Media has purchased Nourish magazine from Blitz Publications in a last-minute deal that has ensured the title continues to be published in Australia. Rachael Northey, CEO of Lovatts Media, believes the demand for high-quality niche magazines is growing rather than declining. Building on the successful 2017 launches of their popular mindfulness titles Breathe, Teen […]

Thrive PR + Communications Opens Fifth Office & Appoints New Staff
  • Marketing

Thrive PR + Communications Opens Fifth Office & Appoints New Staff

Independent PR agency Thrive PR + Communications has announced the launch of its fifth office, opening its doors permanently on the Gold Coast and making multiple team appointments. In response to client demand, and embracing the growth of Australia’s emerging innovation hotspot, the Gold Coast will be Thrive’s second Queensland location following the opening of […]

China Social Solutions Reveal The Massive Market Brands Are Missing
  • Partner Content

China Social Solutions Reveal The Massive Market Brands Are Missing

Advertising, in its essence, is about reaching the largest number of people, in the most seamless, creative way. However, reaching a large audience can often be the biggest hurdle, so how does a crowd of a few hundred million users sound? Weibo, China’s answer to Facebook, WhatsApp, Instagram and every other app combined, has hit […]

Partner Content

by China Social Solutions

How To Thrive In An Age Of Disruption
  • Opinion

How To Thrive In An Age Of Disruption

Has the age of disruption left you fearful? Well, you'll be singing Helen Reddy's 'I Am Woman, Hear Me Roar' after this.

by B&T Magazine

B&T Magazine
Monash University And Y&R Melbourne Launch Wristbands To Deter Drink-Spikers
  • Campaigns
  • Technology

Monash University And Y&R Melbourne Launch Wristbands To Deter Drink-Spikers

Y&R Melbourne has an innovative wristband on campus at Monash University that detect drugs by simply placing a drop of your drink onto the band itself. Designed for widespread use across festivals, events, bars, nightclubs and other venues where patrons are already accustomed to using wristbands, the ‘Sip Safe’ wristband is equal parts a utility, […]

Global Brand Events Agency INVNT Opens Sydney Office
  • Marketing

Global Brand Events Agency INVNT Opens Sydney Office

Brand events agency INVNT has announced it has expanded its operations to the Asia-Pacific region with a new office in Sydney. Originally founded in New York in 2008 by Scott Cullather and Kristina McCoobery, INVNT creates and produces brand engagements for every audience segment, including employees, customers, partners, investors, the media, and consumers. Cullather said […]

The Copyright Agency Invites Visual Artists To Claim Image Royalties
  • Media

The Copyright Agency Invites Visual Artists To Claim Image Royalties

The Copyright Agency is inviting Australian artists and their heirs to nominate about where their works have been published or used on TV to receive payment for their copyright-protected work as part of a month-long campaign. The Copyright Agency, which recently merged with Viscopy, is Australia’s national copyright licensing organisation for the publishing, media, surveying […]

Pac Mags’ Emily Sak Joins Shopper Media Group As Its First Data & Insights Chief
  • Marketing
  • Media

Pac Mags’ Emily Sak Joins Shopper Media Group As Its First Data & Insights Chief

Digital retail out-of-home media business Shopper Media Group has announced the appointment of Emily Sak to the newly created position of head of data and insights. The new role forms part of Shopper Media Group’s expansion plan to keep up with the accelerated growth that has seen its portfolio surpass more than 220 shopping centres […]

CX Lavender Appoints Business Development Director For Melbourne
  • Marketing

CX Lavender Appoints Business Development Director For Melbourne

Customer experience agency CX Lavender has announced the appointment of Michael Rummery to the role of business development director for Melbourne. Rummery (pictured above) was previously account director of client services at global marketing and digital recruitment firm Aquent, and has held roles at a number of talent agents and recruitment firms with a focus […]

The New York Times Appoints WeThinkMedia As Its Aussie Advertising Rep
  • Advertising
  • Media

The New York Times Appoints WeThinkMedia As Its Aussie Advertising Rep

The New York Times Company has announced the appointment of media representation agency WeThinkMedia to represent its advertising business in Australia. WeThinkMedia will be responsible for all advertising in the region, including print, digital, branded content, programmatic, and events. The partnership will be overseen by Tom Armstrong, vice president of advertising for The New York […]

The Future Of Influencer Marketing: More Than Just A One-Night Stand
  • Marketing
  • Opinion

The Future Of Influencer Marketing: More Than Just A One-Night Stand

Influencers are the new powerhouses in driving stock off shelves, but brands are yet to find the right recipe for successful collaboration, according to Guillaume Deront of Gleam Futures @ The Story Lab (pictured below). Here, he argues that marketers need to look beyond purely targeting an audience and channel their energy towards building long-term […]

Opinion

by B&T Magazine

B&T Magazine
Designing Cultural And Organisational Change
  • Opinion

Designing Cultural And Organisational Change

In this guest post, Bronwyn Van Der Merwe (pictured below), managing director of Fjord Australia and New Zealand (part of Accenture Interactive), details the four traits of a ‘living business’ – something she believes organisations have to become in order to transform successfully. The digital age has created a plethora of challenges for modern organisations, […]

Opinion

by B&T Magazine

B&T Magazine
Facebook founder and CEO Mark Zuckerberg arrives to testify during a Senate Commerce, Science and Transportation Committee and Senate Judiciary Committee joint hearing about Facebook on Capitol Hill in Washington, DC, April 10, 2018. / AFP PHOTO / SAUL LOEB        (Photo credit should read SAUL LOEB/AFP/Getty Images)
  • Media

Free TV Calls For ACCC Oversight Of Facebook & Google

In a submission lodged with the ACCC inquiry into digital platforms, industry body Free TV today called for greater regulatory oversight of Facebook and Google. The FreeTV submission identifies a number of key areas of concern: Heavy regulation on traditional media providers and almost none on Facebook and Google Questionable claims about the reach, viewability, […]

APN Outdoor Confirms Retention Of Three Key Contracts
  • Media

APN Outdoor Confirms Retention Of Three Key Contracts

APN Outdoor has used its annual general meeting to announce three key contract renewals: Transport for Brisbane, Transdev Melbourne and Adelaide & Parafield Airports, for multiple years. Company CEO and managing director, James Warburton, said: “These contracts represent an important part of our advertising offering. The far-reaching impact they provide delivers a compelling proposition and cements our commitment […]

Women In Media Profile: Olivia Warren
  • Media

Women In Media Profile: Olivia Warren

It's the latest in our Women In Media profiles, and this one is so good you'll possibly get a nervous twitch somewhere.

by B&T Magazine

B&T Magazine
LIDA Delivers Series Of Animated Info Bites For Busy Marketers
  • Marketing
  • Media

LIDA Delivers Series Of Animated Info Bites For Busy Marketers

M&C Saatchi Group’s customer engagement specialist agency, LIDA, has crafted an initial eight-episode series of bite-sized animated videos designed to help busy marketers stay ahead of the game. ‘60 Second Gets’ draws on LIDA’s wealth of experience to unpack the latest industry tools, tech and thinking. Launching today, the first video, ‘Success in 6 Seconds’, […]

Naked And Gidget Foundation Want Australians To Start Talking
  • Campaigns

Naked And Gidget Foundation Want Australians To Start Talking

Today Naked launches its ‘Start Talking’ campaign for Gidget Foundation Australia; a not-for-profit that provides support for families who are affected by perinatal depression and anxiety (PNDA). The centrepiece of the campaign is a powerful TVC that brings to life this common, but often hidden illness, and shows how Gidget Foundation’s ‘Start Talking’ telehealth program […]

MKTG Integrates Telstra Tracker Data With LED Signage At AFL Stadiums
  • Marketing
  • Technology

MKTG Integrates Telstra Tracker Data With LED Signage At AFL Stadiums

For the first time ever, AFL spectators will be able to view real-time Telstra Tracker player data via in-stadium LED signage, thanks to the combined efforts of Telstra, Champion Data and MKTG. By integrating the Telstra Tracker data into the LED signage at the MCG and Etihad Stadium, fans will receive contextually relevant information from […]

Westfield Shows Off New Visual Identity In Line With Fresh Digital Offering
  • Marketing

Westfield Shows Off New Visual Identity In Line With Fresh Digital Offering

Scentre Group has unveiled a new brand look and feel coinciding with the re-launch of the Westfield.com.au and Westfield.co.nz sites. This digital-first visual identity sees a shift towards creating a more contemporary, invigorated and colourful brand, reflective of Westfield’s in-centre experience. The iconic Westfield logo will continue to lead brand communications, supported with a new […]

The Age Of The Ephemeral: Why Experiential Marketing Is Compulsory This Year
  • Marketing
  • Opinion

The Age Of The Ephemeral: Why Experiential Marketing Is Compulsory This Year

In this guest post, Keep Left’s head of consumer engagement, Johanna Murray (pictured below), explains the merits of experiential marketing, as well as sharing some tips on how to do it – and do it well. Humans love to label things – especially intangible things, like time. We like eras and ages and eons because they […]

Opinion

by B&T Magazine

B&T Magazine
The Top Social Media Marketing Trends For 2018
  • Advertising
  • Marketing
  • Technology

The Top Social Media Marketing Trends For 2018

This trends report is a must-read for all marketers, although it contains no news on the return of the bubble perm.

by B&T Magazine

B&T Magazine
How To Give And Take Feedback At Work
  • Opinion

How To Give And Take Feedback At Work

Georgia Murch (pictured below) is an expert in creating feedback cultures and author of Feedback Flow; The Ultimate Illustrated Guide to Embed Change in 90 Days. In this guest post, Murch offers her tips on giving (and receiving) feedback from colleagues without botching it up… We all know that feedback matters.  Most of us want the good, the bad and the […]

Opinion

by B&T Magazine

B&T Magazine
Dentsu X Expands Operations To Sydney
  • Advertising
  • Media

Dentsu X Expands Operations To Sydney

Have you completely forgotten what Sydney looks like? Well, thankfully this story comes with a handy pictorial reminder.

SBS Radio Introduces Three 24-Hour Digital Radio Stations On Digital TV
  • Media

SBS Radio Introduces Three 24-Hour Digital Radio Stations On Digital TV

SBS Radio has announced two new digital radio stations – SBS PopAsia, SBS PopDesi and a refresh of SBS Radio 3 – is now available on digital TV. SBS Radio 3 will broadcast world news and current affairs from the BBC World Service (previously airing on SBS Radio 4 on digital radio) and special events […]

Aussies Invited To ‘Money With Sunny’ In New Suncorp Campaign
  • Advertising
  • Campaigns

Aussies Invited To ‘Money With Sunny’ In New Suncorp Campaign

At a time when more than two thirds of Australians are feeling confused and concerned about their finances, Suncorp has unveiled a new creative platform focused on making the complex simple. In a move that expands the brand beyond the sunshine state, Suncorp’s strategic approach is all about helping Australians focus on what they do […]