RugbyPass deal a win for Sky TV

Sky Network TV shares rose 1.6 per cent yesterday as investors welcomed plans to extend its foray into online media and push for a bigger global rugby audience by buying online rugby platform RugbyPass for up to US$40 million ($62m).

The pay-TV operator will pay US$10m in cash up front, issue US$20m of stock and pay up to a further US$10m based on performance for the platform, which offers a live streaming rugby service across Asia, Australia and Europe.

Sky’s new chief executive, Martin Stewart, has doubled down on efforts to retain control of the local rugby audience, which has been whittled away by Spark NZ’s foray into premium sports by grabbing the 2019 World Cup rights.

Sky launched 12 new sports channels this month, a new sports news channel and a new sport streaming service.

Sky didn’t immediately comment on whether its purchase would add to earnings.

RugbyPass was launched in 2016 by Coliseum Sports Media. It was ultimately controlled by Cooper and Company, a 30-year-old private investment firm set up by former Lion Nathan executive Peter Cooper, and counts US media group Discovery Communications as a minority investor.

Sky shares rose 2c to $1.24, but are still down 35 per cent so far this year.

Grant Williamson, a director at Hamilton Hindin Greene, said the acquisition was a step in the right direction for Sky TV.

“They do need to diversify away from their standard package to subscribers and this is probably a good start for them,” he said.

RugbyPass will be operated as a wholly-owned subsidiary of Sky, adding an audience of 40 million, which is still growing, and SANZAAR broadcasting rights in 62 Asian and European countries. The platform charges subscribers 99USc a month.

Chief executive Tim Martin said rugby was growing on the global stage, and estimated there were 120 million fans worldwide.