The new Premier League season is well under way, and it’s at this time of year that the big sports TV players tend to gather up their marketing spends and splash the cash around, trying to persuade those of us who don’t subscribe that we really should be.
BT Sport has an entertaining video of a small girl taking on heroes, promoting BT Sport’s coverage of the Premier League, Champions’ League, Europa, Moto GP and Rugby Union amongst others. Everyone wants to see Gareth Bale “act” after all.
Meanwhile Sky’s ad features an army of literal “armchair fans” as they settle down for the new season of football. It includes their presenting talent in the ad, including Jeff Stelling who was seemingly contractually obliged to appear in every advert on television during the World Cup.
But there’s a new player on the block. No, I’m not talking about Premier Sports who scooped up the rights to the pre-season ‘tournament’ that literally nobody cares about, the International Champions Cup (Seriously, do you even know who won?).
No, I’m talking about Eleven Sports which has just launched in the UK.
Incidentally, I did look to see if they’d made a TV ad. But if they have, I couldn’t find it, and their YouTube page has a grand total of 13 videos, the newest of which is over a month old, and all of which seem to be about the World Cup.
Eleven Sports is a London based company that was started by the Italian businessman Andrea Radrizzani. Hitherto they’ve mostly been active in other territories like Belgium and Poland. But under the management of former BT exec Marc Watson, they’ve been running around snapping up sports rights from under the noses of Sky and BT.
Sky has lost La Liga rights after many years, while BT has lost Serie A games which it has had pretty much since it launched its sports channel. They also grabbed the rights, at least this year, to the PGA Championship which had been floating around for the last year or so after Sky lost them.
These losses come at a time when Sky is about to lose its ATP tennis to Amazon, who have just begun showing this year’s US Open. And the FT reports that BT is going to be losing its NBA and UFC contracts shortly.
The only really good news for the incumbents, BT and Sky, is that as they enter the final year of their current Premier League agreement, their next three year contract starting with the 2019/20 season will be flat in terms of costs.
But consumers probably need to ask whether they’re getting good value. BT has just put up its fees for BT Sport, while Sky’s went up in April.
Over at Eleven Sports, they’ve done a deal with Facebook to stream some of their output there (Incidentally, when I searched on Facebook for ‘Eleven Sports’ it was the second link I had to click. The first was a Burmese newspaper).
Eleven Sports’ pricing model is either £5.99 a month or £49.99 for the year, and you can get a 7-day trial. But it does all feel a bit rushed. While there is an app, the Android one doesn’t yet have Chromecast (although it’s said to be coming). That’s led to some scathing early reviews. So good luck watching golf balls on a 5″ screen. Watching on mobile is an essential bonus, but that 46″ block of glass in the corner of the living room is much better in overall terms for watching sport on.
In other territories, Eleven Sports has sub-licenced games to other sports providers. Maybe that will happen here, but I can’t see that it’s in either Sky or BT’s interests to give a leg up to a new competitor. So we’ll have to wait and see. Another FT piece says that neither has bitten yet.
I confess that I’m slightly dubious about how many people will subscribe for La Liga or Serie A. Yes, those leagues have Messi and, now, Ronaldo, but for me they were a nice-to-have bonus. Ex-pat Spaniards and Italians will perhaps seek them out (or use vicarious VPN systems to log into local language feeds). And of course both leagues do have their hardcore fanbases. But is it all sustainable in the longer term?
There must be questions about whether they have overpaid for rights. They claim not to have, and it’s true that Premier League rights increases have left both Sky and BT with less money for other sports. BT is said to be likely to lose both NBA and UFC coverage fairly soon.
On Radio 4’s Media Show last week, Marc Watson talked about how much football Eleven Sports had put out – more than any of the other sports channels. But what is the quality like, and is there an audience for all of it?
More worryingly a streaming-only option can be a challenging option is significant parts of the UK. I might be able to happily stream 4K* but I know I’m in the relative minority. Streaming is much easier to do when it’s not live. Netflix and the iPlayer team are able to encode very carefully to ensure that the right amount of bandwidth is used on an almost scene-by-scene basis. Fast action requires more data; a slow conversation requires much less. When you move to a live environment, particularly when there is lots of action (so sport by definition), you have the twin problems of needing high bandwidth to capture the action, and the need to encode on the fly in a sub-optimal manner because you’re broadcasting live. Netflix has a whole programme to work with local ISPs around the globe to minimise network traffic, and ensure the best experience for the end user with as little lag as possible. The BBC Research and Development also published a really detailed summary of their 4K trials with Wimbledon and the World Cup over the summer that gets into some of the challenges with live versus pre-recorded. While HD might be easier to do live, the same issues exist.
From an overall consumer’s perspective then, to watch the same sport this season as last season, both BT and Sky have increased their prices well ahead of inflation. Meanwhile they have less sport each, and to get back to the status quo of last season, the consumer needs to spend another £5.99 a month on top of those increases for some sport that they can no longer [easily] watch on their television.
In any event, I’m surprised by how little I’ve heard from Eleven Sports on a consumer basis. While soft-launches are sensible when you’re launching a new streaming platform, the football season is underway now, and they’ve not really started a major consumer marketing proposition that I’ve noticed. Compare and contrast with Amazon’s current marketing blitz for their US Open coverage.
Time will tell.
* I don’t actually, for the good reason that I don’t have a 4K TV.