BT confirms talks over the future of its sports business

[davieG]

https://www.bbc.co.uk/news/business-56901387

 

BT has confirmed it is in talks with several companies about the future of its sports broadcasting arm.

The group said it is exploring "ways to generate investment, strengthen our sports business" to "help take it to the next stage in its growth".

It said early talks are being held 'with a number of select strategic partners'.

It is not clear if this means selling a stake in BT Sport or a full sale of the division which was launched in 2013.

BT added that the discussion are confidential and "may or may not lead to an outcome".

The Daily Telegraph reported on Wednesday that Amazon, Disney and Dazn are in talks with BT but that an unnamed British broadcaster might also be in the running to buy the sports business.

The telecoms giant did not confirm which firms are involved.

 

Talks have emerged as Premier League has held discussions with broadcasters, including BT, Sky and Amazon, about scrapping its next domestic media rights auction.

The government is now considering whether to approve a rollover of the current £4.7bn deal, which was secured in 2018.

That sale represented a 10% drop in value and some clubs are concerned there could be another fall if the usual open-market auction begins as planned next month for the three-year cycle between 2022 and 2025.

 

 

Broadband push
Reports suggest BT is considering the future of its sports business as the company focuses on replacing copper telephone wires with fibre-optic broadband lines across Britain.

BT's Openreach lays down and maintains the cables for "full-fibre" internet connections, as well as as operating the associated telephone exchanges. It then sells use of these services to individual internet service providers, who sell access to the public.

The business recently confirmed plans to build fibre-to-the-premises connections to 20 million homes and offices by the mid-to late-2020s.

It currently reaches 4.1 million homes.

BT said it would "build like fury" after the UK's telecoms regulator Ofcom decided not to impose price caps on full-fibre connections provided by the firm's Openreach subsidiary.

Last May, BT announced it would scrap its dividend payment to shareholders until 2022, when it will be reduced by 50% as part of its broadband and 5G push.

[Kilworthfox]

I don't understand why the Premier League clubs just don't create a "Netflix" style streaming service, rather than selling the games to the likes of Sky, Supersport & Fox.

 

They would generate far more revenue for the clubs if they sold each game for a fixed price. Can you imagine the potentially Multi millions of subscribers  they would have, it would be worth more than Netflix.

 

 

Edited 29 April 2021 by Kilworthfox

[Dahnsouff]

3 minutes ago, Kilworthfox said:

I don't understand why the Premier League clubs just don't create a "Netflix" style streaming service, rather than selling the games to the likes of Sky, Supersport & Fox.

 

They would generate far more revenue for the clubs if they sold each game for a fixed price. Can you imagine the potentially Multi millions of subscribers  they would have, it would be worth more than Netflix.

Indeed, a thought lots have had

 

 

 

[Out Foxed]

3 minutes ago, Kilworthfox said:

I don't understand why the Premier League clubs just don't create a "Netflix" style streaming service, rather than selling the games to the likes of Sky, Supersport & Fox.

 

They would generate far more revenue for the clubs if they sold each game for a fixed price. Can you imagine the potentially Multi millions of subscribers  they would have, it would be worth more than Netflix.

 

 

u should go work for one of the big 6 with shitty ideas like that

[Kilworthfox]

Just now, Out Foxed said:

u should go work for one of the big 6 with shitty ideas like that

Thank you for the suggestion. rather than a the suggestion... explain why its an idea you appear not to agree with?

[Dahnsouff]

1 minute ago, Kilworthfox said:

Thank you for the suggestion. rather than a the suggestion... explain why its an idea you appear not to agree with?

Must assume it was because one of the drivers behind both Project Big Picture and the Super League was the right of the clubs involved  to establish their ability to manage their own broadcasting arrangements.

[Kilworthfox]

Just now, Dahnsouff said:

Must assume it was because one of the drivers behind both Project Big Picture and the Super League was the right of the clubs involved  to establish their ability to manage their own broadcasting arrangements.

Assumption noted... however that's not what I said! I said the League not individual clubs. The League should be brought back into the F.A and the financial windfall should apply fairly down the pyramid, all the way to grassroots and kids football.

[brucey]

3 minutes ago, Kilworthfox said:

Thank you for the suggestion. rather than a the suggestion... explain why its an idea you appear not to agree with?

Presumably each club would get revenue in proportional to the number it sells. So the disparity between the Big 6 and the Small 14 income would be much bigger than it is now. 

[ARM1968]

4 minutes ago, Kilworthfox said:

Thank you for the suggestion. rather than a the suggestion... explain why its an idea you appear not to agree with?

Because what would happen then is that the big 6 will draw the most subscriptions in and want the lions share. In effect you would just be handing them more power and more wedge. 

[Kilworthfox]

Just now, brucey said:

Presumably each club would get revenue in proportional to the number it sells. So the disparity between the Big 6 and the Small 14 income would be much bigger than it is now. 

That's a different branch of this topic, which I didn't suggest! I do not agree with clubs going it alone. The benefits should go to football, not Owners or players.

[Kilworthfox]

1 minute ago, ARM1968 said:

Because what would happen then is that the big 6 will draw the most subscriptions in and want the lions share. In effect you would just be handing them more power and more wedge. 

See the other replies 

[LCFCCHRIS]

17 minutes ago, Kilworthfox said:

I don't understand why the Premier League clubs just don't create a "Netflix" style streaming service, rather than selling the games to the likes of Sky, Supersport & Fox.

 

They would generate far more revenue for the clubs if they sold each game for a fixed price. Can you imagine the potentially Multi millions of subscribers  they would have, it would be worth more than Netflix.

 

 

I think it's a good idea, it could be truly great with access to stats at the click of a button, Amazon style features like muting commentators, live score updates on other games you've selected. 

[yorkie1999]

14 minutes ago, Kilworthfox said:

Thank you for the suggestion. rather than a the suggestion... explain why its an idea you appear not to agree with?

Because poor old Burnley would end up with 30 quid a season.

[Kilworthfox]

Just now, yorkie1999 said:

Because poor old Burnley would end up with 30 quid a season.

The only way that would happen under my suggestion would be if every Premier League club also got £30, so that's fair right?

 

I'd suggest they'd sell far more subscriptions than that, and therefore collectively earn far more revenue than they do now.

 

I believe the few negative posts have not been against the idea, but unfair distribution of the total revenues. I'd be as against that as you guys n gals are.

[ARM1968]

15 minutes ago, Kilworthfox said:

See the other replies 

That would require reading them and I haven’t got the time or inclination - plus I’m an ejit Billy Bob. 

[yorkie1999]

1 minute ago, Kilworthfox said:

The only way that would happen under my suggestion would be if every Premier League club also got £30, so that's fair right?

 

I'd suggest they'd sell far more subscriptions than that, and therefore collectively earn far more revenue than they do now.

 

I believe the few negative posts have not been against the idea, but unfair distribution of the total revenues. I'd be as against that as you guys n gals are.

I think it would all depend on what the actual market value of the premier league is. For all we know, the bulk of the money that it currently earns could be through advertising and not necessarily through subscriptions.

[nwl fox]

People seem to be confusing subscribing to a channel with paying for ppv. You pay the subscription to get access to all the leagues matches not just an individual club so why would it lead to disparity in income between the "big" clubs and the rest of the league? 

[Finnegan]

56 minutes ago, Out Foxed said:

u should go work for one of the big 6 with shitty ideas like that

 

Yeah because a low cost, zero contract streaming platform accessible worldwide would be so disastrous. 

[ARM1968]

23 minutes ago, nwl fox said:

People seem to be confusing subscribing to a channel with paying for ppv. You pay the subscription to get access to all the leagues matches not just an individual club so why would it lead to disparity in income between the "big" clubs and the rest of the league? 

I would imagine because the Big 6 would negotiate a bigger slice claiming that the whole project and the vast numbers of subscribers is down to them - and they would be justified to an extent. 

[ARM1968]

3 minutes ago, Finnegan said:

 

Yeah because a low cost, zero contract streaming platform accessible worldwide would be so disastrous. 

Right. Get on to Netflix. Pitch the idea. Be reasonable on your demands. I’ll go for 50% for suggesting it to you. Win win. 
 

Suggest Netflix Sport

Edited 29 April 2021 by ARM1968

[Kilworthfox]

2 minutes ago, yorkie1999 said:

I think it would all depend on what the actual market value of the premier league is. For all we know, the bulk of the money that it currently earns could be through advertising and not necessarily through subscriptions.

 

OK I will knock up a quick financial framework...

 

I will keep it U.K based, as to do worldwide would become astronomical revenues (200 million viewers in current model) You could x that number if you made the match easier to view for example without getting a subscription with different providers... anyway....

 

Under the current framework the UK Market is worth £1.7Bn, according to the above information in the vid, I'll take it as correct as I can't be arse to spend that much time on research... 

 

However consider how much you pay to watch any or all of Sky, B.T, Amazon & BBC (License fee). I pay For all of these and its got to be close to £80 a month. I realise I am mental, but we have been in lockdown!

 

There are apparently 6 million Sky Football subscribers (£45) BT have 2 million (£25) and Amazon 5 million football watchers (lets assume 1 in 3 prime members watch football?) £8.  So that's £78 And a total of 13 million Subscribers over 3 platforms.

13 million x £78 = £1,014,000,000 Monthly and £12.168,000,000 Annually.

 

Or we could watch lets say all English football for a Monthly subscription for £30, which I'd obviously buy as I currently pay 2.5 times more for. I'd suggest that more people would pay £30 than £78. 

 

You could still sell rights to commercial companies, to make programs such as MOTD, Soccer AM, or whatever...these would be less, but its still revenue!

 

The revenue would be split by a % basis for each premier league club, and would be based on final league position rather than viewers! Also not split disproportionately, so a rule could be something like the club who finish bottom can not receive less than 80% of the revenue that the Champions receive. 

 

However, the Premier League can only take something like a 30% share of total revenues, the Championship can have 20%, League 1 15% League 2 10%... the the rest of the 25% can be distributed down the pyramid. (these % figures I have just pulled outta my arse )

 

I am aware that this is a cheaper deal for U.K Subscribers if numbers remained the same at 13 million, I am sure they would go up, but not double, or treble...

 

The shortfall, would be made up with the worldwide subscriptions, which would also explode in demand in my humble opinion 

 

 

 

[UniFox21]

A streaming service could be a brilliant way to incorporate the entire football league. A service enabling the purchasing of access to watch games in the Prem, Champ, Lg 1 and Lg 2 respectively. 

[MPH]

BT have a track record for this don’t they?

 

 

They develop a strong sector and sell it off.  I’m sure they’ve done this to the mobile phone market a couple of times

 

 

fair play to them.

[Kilworthfox]

2 minutes ago, ARM1968 said:

I would imagine because the Big 6 would negotiate a bigger slice claiming that the whole project and the vast numbers of subscribers is down to them - and they would be justified to an extent. 

The fact is the greedy 6, need to be put in their respective boxes, and be made to realise that they are valued and respected parts of the machine, not the machine. The whole machine fails without Bury as much as it would with any richer club.

 

Financial distribution should be based of final season positions, not historic success, that's scandalous.

[filbertway]

Quote

BT added that the discussion are confidential and "may or may not lead to an outcome".

 

This is one of my favourite lines I've ever read