Amazon muddies the waters for crucial new Six Nations TV deal
It is no exaggeration to say that the next broadcasting deal for the Six Nations will be the most significant in its history. In these strange times, the decision facing the board over the next 12 months – the deal with the BBC and ITV finishes after next year’s championship – will be unparalleled in complexity and consequence.
The quandary over audience reach versus revenue, particularly given the financial crisis precipitated by Covid-19, has never been so acute.
The world has changed so utterly that the long-standing certainty of the Six Nations being one of the great showpieces of the sporting calendar is on the line. The championship is no longer an official “crown jewel” in terms of broadcasting, and as a “B-list” event the commitment to keep it on terrestrial television in the UK has come from within, founded on the fantastic viewing figures that the Six Nations in February and March attracts.
It was as recently as January 2019 that Ben Morel, the Six Nations chief executive, said: “It makes it extremely valuable for the Six Nations to have partners like BBC and ITV. It makes it quite unique that we have scarcity, appointment to watch and free-to-air coverage. I am pretty satisfied with where we are.”
Yet several key factors mean it is now increasingly likely the championship could, at least in part, move to pay television.
The decision by the unions to pool their broadcasting rights to include both the Six Nations and autumn internationals was the first step, and the position has been complicated by the ongoing talks about creating a new tournament as part of the globalcalendar discussions.
England’s autumn internationals have been shown on Sky Sports for almost 25 years, and pooling the rights was always likely to bring the terrestrial commitment of the Six Nations into focus.
Then there is the interest of private equity firm CVC in securing a stake in the Six Nations and the impact that could have on the need to maximise revenues. The Six Nations, however, has always insisted the two are not linked and in any case, the CVC deal is not yet done.
But the main game-changer came last week, with confirmation that Amazon Prime had secured the main broadcasting rights for the Autumn Nations Cup, involving the Six Nations, Fiji and Georgia.
As well as bringing a new competitor into the marketplace, the Amazon deal adds to the reachversus-revenue debate. The company does not correspond to any previous model. Is it pay TV? Consumers might already subscribe to the service for its delivery of goods and see the rugby content as free. The numbers of subscribers are also much higher than may be generally perceived, and competitive with, if not exceeding, pay TV.
Then there is price. A supporter could subscribe to Amazon for one month and pay around £8 for the tournament – much cheaper than subscription television. But not everyone owns a smart TV, or knows how to watch Amazon on it if they do. Viewing matches on laptops or tablets is simply not the same experience. There is also the sense of a narrative, including preview shows and bulletins that terrestrial or pay TV can offer.
The quandary over audience reach versus revenue has never been so acute
Yet another complicating factor is that it is no longer possible to assume that terrestrial television will have the financial resources to keep bidding in the same way.
It would be wrong to make the bidding a one-horse race when unions are facing financial uncertainty and given the implications this will have on grass-roots funding.
The process that began in February with reports of a £300 million-plus auction is not likely to resume until the new year. No one is doubting the challenge that confronts the decision-makers, but the hope must be they will not just accept the highest bid.
The Six Nations remains the most successful and lucrative tournament outside the World Cup, it is critical that the new deal ensures it remains front and centre of the national sporting narrative with the biggest viable reach.
While it would be understandable for unions to take a short-term view and cash in, they should hold their nerve. It is more important than ever that the decision is founded on a long-term strategy to grow the game.