BAD news, football fans: Expect to pay more to catch live Premier League matches in 2010.
Industry analysts expect a bruising bidding war when the rights to England's top division, the crown jewel of pay-TV content, come up for auction next year. And the fallout from the battle is likely to hit both consumers and telcos, they say.
According to a report by investment research house CIMB, the local rights to the 2010-2012 season could cost up to $400million.
This is a 60 per cent jump from the $250 million StarHub reportedly paid for the current three seasons ending next year, and a whopping six times what ESPN STAR Sports paid for the 2004-2006 seasons.
The rights are typically sold via an auction in three-year blocks, with the winner getting exclusive rights for its market. Globally, pay-TV rights for sports programming has been on the increase.
When costs go up, consumers can usually expect to foot some of the bill, even if the operator subsidises some of the costs to keep them from defecting, said Foong King Yew, research director at technology analyst firm Gartner.
StarHub, the current Premier League rights holder, has 511,000 pay-TV customers. An estimated two-thirds, or 340,000 households, are subscribers of its Premier League channel at $26.75 a month during the season, which runs from August to May.
If the tab for the Premier League rights hits $400 million, StarHub subscribers may have to fork out up to $44 a month, based on a back-of-envelop calculation, though the telco may subsidise this.
It is expected to face a challenge from SingTel, which is looking to use the games - the report calls them a 'must have' for any serious pay-TV player - to lure visitors into its new mio TV service, which has about 45,000 subscribers.
Pay-TV is one of StarHub's lowest-margin business segments. A StarHub spokesman said it is losing money from its Premier League programming while SingTel's mio TV, launched last July, continues to bleed.
But pay-TV is a huge draw for customers, and once they are signed up for pay-TV, the telco can hawk them more profitable mobile and broadband services, said CIMB analyst Kelvin Goh.
Failure to secure the Premier League will affect the attractiveness of their respective products, but getting it will exact such a 'hefty price' that the winner's bottom line will be affected, he said.
He added that it was almost inevitable that the price of securing Premier League rights would make them unprofitable.
In anticipation of the impending 'lose-lose' face-off, Goh has downgraded both SingTel and StarHub shares to 'underperform'.
He also warned of a few-fold rise in the cost of World Cup 2010 rights, which are also up for bidding next year.
Some football fans are already bristling at the prospect of paying more to see their favourite English teams in action.
Liverpool fan Daniel Lim, for instance, said he will 'cancel immediately if the price goes up anymore'.
SingTel and StarHub confirmed that they are interested in the Premier League rights, although both declined to say how much they are willing to pay.
StarHub cable TV services head Patrick Lim hoped the rights will not cost much more since 'it is not clear why anyone would bid substantially higher than what is being paid today'.
'Our competitor has probably learnt by now that the pay-TV business in Singapore will never be a highly profitable business,' he said, adding that it took StarHub's pay-TV arm a decade to show profits.
Estimated increase
What Starhub reportedly paid for current EPL rights: $250 million
What current subscribers pay monthly: $26.75
If Starhub has to pay $400 million for the new contract, subscribers may have to pay up to $44 monthly
Source: straitstimes.com
wtf.. see 22 people chasing after a ball also need pay so much
somemore from next season onwards no more UCL on starhub right?
Originally posted by omgukilledkenny:somemore from next season onwards no more UCL on starhub right?
i think got.. but must pay more
PAP Effect
watch online better right? need to watch in HD meh? just need to see if the ball go into the goal.. dun need to see if there's dirt on the ball or not right?
Originally posted by I-like-flings(m):watch online better right? need to watch in HD meh? just need to see if the ball go into the goal.. dun need to see if there's dirt on the ball or not right?
22"-pc 108"-tv
and some more internet normally got like 1 min delay
Originally posted by youyayu:22"-pc 108"-tv
and some more internet normally got like 1 min delay
big big ball also 1 - 0 .. small small ball also 1-0... u only need 108" when u watching porno lah..
they should come up separate packages for bpl and liga.
Originally posted by I-like-flings(m):
big big ball also 1 - 0 .. small small ball also 1-0... u only need 108" when u watching porno lah..
=.= no lor.. can invites friend over to watch.. nice and big ma.. then can enjoy beer and snacks
Originally posted by alwaysdisturbed:they should come up separate packages for bpl and liga.
then u will see no one signing for liga.. unless they die hard fans
Wow football really is popular
Originally posted by Beautiful951:Wow football really is popular
of cos
Originally posted by youyayu:then u will see no one signing for liga.. unless they die hard fans
not happy leh.
i only watch liga.
Originally posted by alwaysdisturbed:not happy leh.
i only watch liga.
0.o why watch liga.. dead boring
Originally posted by youyayu:0.o why watch liga.. dead boring
i sarrrrport barcelona mah.
Hope e increase is not as much as projected
we are indirectly paying the players' high salaries.
Originally posted by dragg:we are indirectly paying the players' high salaries.
Than ask those players dun get so high salaries.
=_=
Now is the time to watch S league, free or cheap. I think it not fair the company bid to get the exclusive rights to show the Premier League but the subscribers may have to pay for what the company bid. U bid So much to get the right u pay arrrrr Why must we Pay?
The gov should stop play acting and let any or every company to have the rights to the EPL in 2010. Leave the providers to fight it out themselves for the most value for money package for the consumers...
Stop all this exclusive rights thing and the fans would not have to suffer.
Originally posted by zocoss:The gov should stop play acting and let any or every company to have the rights to the EPL in 2010. Leave the providers to fight it out themselves for the most value for money package for the consumers...
Stop all this exclusive rights thing and the fans would not have to suffer.
wait long long.
who will set rules and regulations to jeopardise own coy's profits.
Originally posted by alwaysdisturbed:wait long long.
who will set rules and regulations to jeopardise own coy's profits.
Well, after years... They finally did with the handphone and pager industry so eventually they will have to do so too with the cable tv industry. Its just a matter of when they will have do so.
Originally posted by zocoss:
Well, after years... They finally did with the handphone and pager industry so eventually they will have to do so too with the cable tv industry. Its just a matter of when they will have do so.
i think that was for the benefit of the economy?
for cable tv, doubt so.
wtf la