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OLD BOY · 04-04-2014, 11:08

Interesting article here from the Telegraph. Looks like the Sky Sports/BT battle is going to get interesting.

http://www.telegraph.co.uk/finance/m...spotlight.html

Both the biggest riser and the heaviest faller in London’s benchmark index were driven by analysts, who spurred notable moves by advising that investors steer clear of British Sky Broadcasting, and snap up shares in Tullow Oil.

On BSkyB, the message from the experts at HSBC was decidedly negative: There is pain in store for shareholders when the company goes head to head with rival BT Group, 1.7 cheaper at 381.6p, in the next auction for Premier League football rights.

Bidding for the three seasons, beginning with the 2016-17 campaign, is expected to start within the next 12 months and the rivalry between the two companies is likely to be ferocious.

But despite the threat, BSkyB shares have risen briskly since the start of the year, suggesting “that the company’s efforts to move investor’s focus on from concerns surrounding the competition for Premier League football rights has been successful,” the HSBC analysts said.

Nevertheless, that is likely to change as attention will soon “return to the risks of a further step-up in competitive intensity”.

The analysts expect one of two damaging outcomes from the forthcoming bidding. The first is that, while the status quo is unchanged and the “split of games is broadly similar”, there is “significant cost inflation” of about 35pc.

“This would become problematic for BSkyB if the inflation in the rights cost is high such that it is difficult to pass on to its sports subscribers.”

The second possibility is that BT succeeds in securing more rights, which would hit BSkyB’s football coverage and in turn the size of its subscriber base.

Worries about both possible outcomes are likely to return and weigh on BSkyB’s shares, the analysts warned clients, sending the broadcaster down 26½ to 892½p, a 2.9pc fall.

A similarly downbeat note from Oriel Securities didn’t help the broadcaster either, with analyst John Karidis arguing that, despite recent speculation, Vodafone is unlikely to buy BSkyB.

04-04-2014, 11:08	#4415
OLD BOY Rise above the players Join Date: Mar 2008 Location: Wokingham Services: 2 V6 with 360 software, ITVX, 4+, Prime, Netflix, Apple+, Disney+, Paramount+, Discovery+ Posts: 15,081	Re: ESPN, BT, Euro, Premier and Sky Sports news Interesting article here from the Telegraph. Looks like the Sky Sports/BT battle is going to get interesting. http://www.telegraph.co.uk/finance/m...spotlight.html Both the biggest riser and the heaviest faller in London’s benchmark index were driven by analysts, who spurred notable moves by advising that investors steer clear of British Sky Broadcasting, and snap up shares in Tullow Oil. On BSkyB, the message from the experts at HSBC was decidedly negative: There is pain in store for shareholders when the company goes head to head with rival BT Group, 1.7 cheaper at 381.6p, in the next auction for Premier League football rights. Bidding for the three seasons, beginning with the 2016-17 campaign, is expected to start within the next 12 months and the rivalry between the two companies is likely to be ferocious. But despite the threat, BSkyB shares have risen briskly since the start of the year, suggesting “that the company’s efforts to move investor’s focus on from concerns surrounding the competition for Premier League football rights has been successful,” the HSBC analysts said. Nevertheless, that is likely to change as attention will soon “return to the risks of a further step-up in competitive intensity”. The analysts expect one of two damaging outcomes from the forthcoming bidding. The first is that, while the status quo is unchanged and the “split of games is broadly similar”, there is “significant cost inflation” of about 35pc. “This would become problematic for BSkyB if the inflation in the rights cost is high such that it is difficult to pass on to its sports subscribers.” The second possibility is that BT succeeds in securing more rights, which would hit BSkyB’s football coverage and in turn the size of its subscriber base. Worries about both possible outcomes are likely to return and weigh on BSkyB’s shares, the analysts warned clients, sending the broadcaster down 26½ to 892½p, a 2.9pc fall. A similarly downbeat note from Oriel Securities didn’t help the broadcaster either, with analyst John Karidis arguing that, despite recent speculation, Vodafone is unlikely to buy BSkyB.