LATEST INDUSTRY NEWS - GENERAL NEWS

Soccer: Sky pays more for less as Setanta scores

With Irish pay-TV firm Setanta winning the rights to show 46 live Premier League matches per season from 2007, the rights auction has generated £1.7bn (E2.4bn) for the League, 65 per cent up on last time.

Ultimately, BSkyB took packages A, B, E and F adding up to 92 live matches including the ‘elite’ games on Sunday afternoons, but down from 138 in the current deal. Setanta took the C and D packages paying £392m. Breaking it down Sky has paid £4.8m a match and Setanta £2.8m.

"For the first time these are platform-neutral rights available for exploitatio n on wider technology," said League chief executive Peter Scudamore. "The increase is because these rights are available to be simulcast on broadband or other platforms. They are no longer just television rights."

In terms of presentation, it seems Sky is abandoning Prem Plus (50 have been on pay per view Prem Plus under the current deal) to maintain value for money for Sky Sports. Analysts have already downgraded Sky profit forecasts. Meanwhile Setanta, which runs channels in Ireland, UK, USA and Australia, has a major marketing challenge to make good on its investment.
There is speculation it will license Sky some, or all, games for showing
in pubs and clubs. Its other options are a channel on DTT pay TV operator Top UP and a deal with failed bidder NTL.

BSkyB had held exclusive live rights to Premiership football ever since
1992 but the European Commission ruled rival broadcasters must get a slice of the action this time.

Other Premiership rights, including mobile rights, television highlights
packages and overseas rights, will be determined separately.

9 May 2006