Cutting the cord: Sky are fostering their own downfall

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Last week we discussed a Bloomberg article on the increasing availability of premium quality, pirated, broadcast content, made possible by set-top boxes.  In short, products are available to make any amount of premium sports or movie content available to users without subscription, with little the law can do about it.

Quite apart from pirate viewing, subscription broadcast numbers are under pressure from legal streaming services, such as Amazon Instant Video and Netflix, a drift known as Cutting the Cord.  A survey published this week reports that 8.2% of US broadcast subscribers ditched their service in 2014 in favour of streaming.  More significantly, 45.2% of US subscribers report they cut back on content they paid their broadcast supplier for.

UK satellite and cable TV subscribers pay some of the top prices in the world for sports and other premium content.  A dysfunctional market has emerged due to the controlling position of two players:

BSkyB, who dominate subscription TV supply in the UK
The FA Premier League, who own the key content for the UK market

Within this market there are winners and losers.  The winners are English and Welsh football clubs who earn enormous revenues from the FA Premier League TV deal, and subsequent trickle-down monies.  The losers are UK subscribers, who paid a fortune to keep the BskyB-FA Premier League contract in funds, and, of course, Scottish football clubs, who are excluded from the England and Wales league system.

Scotland is 8% of BskyB’s business, significant enough to make a dent in its revenues, but more importantly, if a US-style drift from expensive subscriptions is fostered in Scotland, it will move south soon enough.

I’ve been looking into this since we discussed it last week and will report back.

Shocked and stunned to read in the Daily Mail that Dave King met Sports Direct on the morning of his club’s EGM, as reported by Phil MacGiollaBhain a week ago.  That will explain the lack of denial, I suppose.  The interesting question is: Who gave the Daily Mail the story?  Dave King, or through his PR company?

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583 Comments

  1. BOBBY MURDOCH’S CURLED-UP WINKLEPICKERS

     

     

    05:25 on 25 June, 2015

     

     

    PETEC

     

     

    Have a great time wi The Emerald Prince,mate. And give him my warmest and bestest.

     

    ~~~~~~~~~~~~~~~~~~~~~~~~~~~~

     

     

    I’m sure olde Jamesie will be against Plurality Marriages.

     

     

    A jAR

  2. What is WRONG with having more than one Wife anyway?

     

     

    Seriously, what is really wrong with that?

     

     

    I’ve never been an Animal Lover but, if a person got very attached to a Pet.

  3. Good morning friends from a nominally damp and almost bright looking East Kilbride.

  4. Jungle Jim Hot Smoked on

    “However, the great champions are never the ones who dominate and win all the time with an air of invincibility.”

     

     

    Rod Laver? Ali? Eddy Merckx? Pele?Usain Bolt? Don Bradman? Steve Davis/Hendry? and many others.

     

    Cheerio for now. Off to do ” the easiest Munro in the world`, according to my brother.

     

    JJ

  5. South Of Tunis on

    A sunny 28 at 9 15 – way down south.

     

     

    Watched Italy Under 21 thrashing England Under 21 — 3 -1.

     

     

    Don’t often see English football – on last night’ s viewing it is still the same old thing – players that struggle to control the ball, players that can’t pass the ball to a team mate. Lots of sweat , lots of grunt and grind headless chicken guff. Lost track of the number of times they passed the ball back to the keeper for a random hoof up the park..

     

     

    Italy out the competition.The 60 minute collapse v Sweden rightly being the reason.

  6. See the orcs are having a ‘old top day’ 1st game of the season, reason for it – to show Ashley and sports direct what there missing out on.

     

    For the last time stupid zombies

     

    Ashley and SD don’t care if you buy the new top because they get their money no matter what, you buy they get money you don’t sevco buy them they get their money. Ashley/SD can’t lose :-) HH

  7. My friends in Celtic,

     

     

    I am really expecting great things this coming season from James Forrest. It should be remembered that he is only 23 and has struggled with injury and subsequent fitness. I really think that RD & JC will get the best from him.

     

     

    Regarding various streaming applications; I understand why it’s done especially for our overseas fans, however I would like more of our energy and focus in “persuading ” our fellow fans to actually attend Paradise as often as is practicable.

     

     

    It should be remembered that all the legal or debatable outlets can never replace the atmosphere that a full Parkhead can bring. Players thrive on a full ground, so ultimately we can all do our part.

     

    As always our mostly magnificent away support will take care of themselves.

     

     

    HH.

  8. £650k zero % interest loan from a Government agency with no agreed pay back period.

     

     

    Surely not State Aid?

  9. South Of Tunis on

    Today’ s task is to plant a lot of Lemon balm.This year’ s cuttings . An anti mosquito thing .

     

     

    Mrs S of T in a sombre , pensive mood .I paraphrase –

     

     

    When I was a teenager I used to rant at my parents re the shambles that was Italy.- the corruption , the Mafia , the tax avoidance , the self serving politicians,the nepotism , the bureacracy etc etc .They would then enrage me more with a patronising – Yes dear – you are right – but what can we do?.My father often finished with a – it could be worse dear – you could be Greek

  10. Gerryfaethebrig on

    emeraldbee\o/ still proud to be an internet bampot

     

     

    By all accounts 14th July with 18.45pm kick off

  11. “The only property Rangers would continue to own is its Ibrox Stadium, which was excluded from the securities awarded and is not covered by a floating charge Ashley has over the club’s assets.”

     

     

    PROVE IT :oD

  12. vclxi,

     

    Interest free loan, wonder how many we got to develop Celtic park for the commonwealth games ?

  13. F.A.B. Virgil (WATRC) on

    Vclxi

     

     

    It will be a grant not a loan. Terms will still require 1st ranking security in the event of disposal. At disposal repayment of grant will be required. If I remember correctly the justification for grant was about public access and use of the facility.

     

     

    Still public subsidy though not State Aid. No effect on inter country trading or markets.

     

     

    Common mistake. Public funds do not equate to State Aid unless they interfere with cross country markets unfairly.

  14. weet weet weet(GBWO) on

    From the comments page in the Herald

     

     

    Is this true,anyone?

     

     

     

    I for one want Celtic to live within our means.

     

     

    However UEFA also hold back clubs like Celtic, Ajax, Porto etc from spending big by paying out prize money based on your countries population. Porto won the champions league in 2004 but got less money than Manchester United who were knocked out in the first group stages. Regardless of a country population or how small are team are those who go furthest should get the most money.

     

     

    HH

  15. Phyllis Dietrichson on

    How come SportScotland are not a creditor of Oldco? Surely their money was lost when Rangers were liquidated?

  16. weet weet weet(GBWO)

     

    08:55 on

     

    25 June, 2015

     

     

    Not strictly no. The prize money is the same whoever wins. It’s the tv pool money that is based on population and makes eg Man Utd get more than Porto in the scenario mentioned.

  17. weeminger,

     

    Fair point but how does that equate to the final when it’s mostly neutrals who are watching ?

     

    Should the smaller countries team be credited with the neutral viewer

  18. mullet and co 2 on

    Vclxi,

     

    Unlikely that Murray park is w state aid issue. Intriguing though… Why would they look for cash now and not in 2012 when Charles Green took ownership via Sevco and then Newco Rangers?

     

    It could only point to Murray Park being used for something other than it was intended for or that Sports Direct at most intend that there will be no community aspect when and if they have full ownership.

     

    Interesting that STV mention that Sports Scotland would need to discuss money owed from Rangers out with the £650k. Appears there is some clawback as part of the deal to build Murray park if Rangers had intended to use for another purpose than was agreed when Murray Park was built.

     

    Again sports Scotland may have been on the list of creditors and I may have missed it back in 2012. There may have been an agreement at that time between sport scotland, green and his cohorts ( rumoured to have included Ashley at the time) that murray park would continue to be used for its intended purpose.

     

    The second interesting factor here is that similar to murray park, I think the club deck has an element of joint ownership in the form of bonded seat holders. If sports direct own the Edmonton house they own access to the club deck. Believe this means the club deck long term seat holders no longer get a seat. Ashley also has the right to charge someone a hefty fee for access.

     

    I’m sure all of this is already resolved.

     

    More intriguing…

     

    As yet no one has explained why two direct debits over 6 figures each leave the newco accounts each month.

     

    I’m sure Dave King knows that these kind of things need to be cleared up before they assault Europe again.

  19. Joboesque..

     

     

    Good morning from a warming Costa del Sol where my head is still numb due to overhanging on beer and in particular wine.

     

     

    Off to find a cool bag/box as walking back to apartment for a refill is like exercising.

     

     

    Young daughter is 17. I bought her a beer for the first time last night. I felt old.

     

     

    P

  20. Phyllis/cowiebhoy,

     

    Most likely but the new club continued to use it for football, if MA continues to use it for football then he will owe them nothing, if he sells it to Celtic who continues to use it for football he will owe them nothing.

     

    The fact that he agreed to allow them to be signatories to the contract would indicate they are still players in the ownership game.

  21. mighty tim supporting wee Oscar on

    Cowiebhoy the sportscotland money will have been a grant. They finance all sports and are under the umbrella of uksport. In a former life I dealt with them on a weekly basis.

     

     

    HH

     

     

    KTF

     

     

    Utlr

  22. Canamalar

     

    09:01 on

     

    25 June, 2015

     

     

    I don’t know the precise model but actually I think the whole notion is fundamentally unfair anyway.

     

     

    For example if all the English teams are out after the group stage do they still get a payment based around English viewers from that point to the final? I’d hope not.

  23. The Green Man on

    Morning Bhoys

     

     

    Have we signed a striker yet?

     

    You see, the thing is, that we have a few games in a wee tourney to deal with.

     

    And id imagine, that it would be wise to be able to score goals.

     

    Maybe im wrong.

     

    Still, im sure big Peter knows what he is doing:)

     

     

     

    HH