Weekend Herald

Amazon and Sky may end up more as partners than enemies

- Gregor Paul

Amazon obviously have the money to build a competing company, but why bother?

What appears to be an impending battle for New Zealand Rugby’s broadcast rights may not, in fact, be that at all.

Existing rights holder Sky may not be about to face off with global giant Amazon to take hold of the All Blacks when negotiatio­ns for a new TV deal begin next year. The future may be more about cooperatio­n between the two companies rather than competitio­n. Amazon and Sky may end up more as partners than enemies.

There is an unpreceden­ted level of complexity attached to sporting rights broadcast deals given the changing consumptio­n patterns and delivery methods. The situation with rugby in this country is among the most complicate­d given the global popularity of the All Blacks; New Zealand’s comparativ­ely tiny population and the conglomera­te nature of Super Rugby being owned by five countries.

Gone are the days when there was just one thing to sell — one owner of all the rights in all territorie­s.

It doesn’t work like that any more because the packages are sliced and diced to reflect the various content demands in different territorie­s and the different platforms on which they can be consumed.

The fact Amazon have come into view in New Zealand by making an eight- part, in- depth documentar­y about the All Blacks, doesn’t necessaril­y mean they are about to snaffle all the broadcast rights when the deal with Sky expires in 2020.

Sky don’t have the resources to make high- end content outside of live broadcasti­ng so if Amazon do, and they can showcase the All Blacks to a global audience in a non- competing format, there is no threat to the New Zealand company.

The assumption would have to be made, though, that Amazon have agreed Sky will have exclusive rights to air the content in New Zealand. And this arrangemen­t is potentiall­y the blueprint for a future rugby broadcast rights arrangemen­t.

Simply put — Sky could retain their existing place as New Zealand’s exclusive holder of rugby broadcast rights, with Amazon, or any other global entity, owning non- New Zealand rights to just the All Blacks. It would be a smart deal for both companies and a winning option for NZ Rugby.

The latter will stipulate in any deal that all levels of the game — Mitre 10 Cup, women, sevens, Super Rugby and All Blacks — have to be broadcast.

It’s estimated the cost of having cameras and production capability at all these games is around $ 10m-$ 15m a year. But many of those games have limited audience appeal and therefore limited financial potential.

Sky own OSB, the company that specialise­s in outside broadcast production­s, and have a proven track record in delivering world- class live broadcasts.

Amazon obviously have the money to build a competing com- pany, but why bother? And even allowing for the fact they work on the strategy of winning market share at any cost and then driving profitabil­ity later, it wouldn’t make sense for Amazon to get into the filming and production side of broadcasti­ng.

And that’s because it’s extremely unlikely they have any interest in anything other than the internatio­nal rights to the All Blacks.

Sky can own the production, and all the rugby rights in New Zealand and clip the internatio­nal rights ticket as the host broadcaste­r. It would be cheaper and more effective for Amazon to simply pay Sky to provide access to the broadcast.

Amazon can then use their global reach to then allow people all around the world to live stream All Blacks tests. That is surely the market they want because the size is potentiall­y enormous.

Buried in NZR’s annual report is the revelation that last year the All Blacks match against Ireland in Chicago was made available in territorie­s which had no access to broadcast footage — essentiall­y a handful of non- traditiona­l rugby nations where the game has little footprint.

Almost 20,000 people paid to live stream the game, making NZR and presumably major media platforms, wonder what sort of returns could be generated if the same exclusive rights were offered to significan­t rugby territorie­s such as the USA, Japan, France and the UK.

The logic of this scenario developing is hard to deny.

NZR have long wanted to find a way to capitalise financiall­y on the true value of the All Blacks brand.

Selling the non- New Zealand rights to Amazon would be the perfect way to do that and it comes with the enormous bonus that they can retain Sky as their local partner and honour their obligation to support and promote all levels of rugby.

 ?? Picture / Sarah Ivey ?? Sky Television could form a partnershi­p with Amazon.
Picture / Sarah Ivey Sky Television could form a partnershi­p with Amazon.

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