Friday, March 25, 2016

Ailing in sport, Canal + will come out the checkbook – The Point

Competed by beIN Sports on the Champions League, Premier League by private Altice, Canal + will perhaps manage to bounce back. But at the cost of a major investment. BFM Business announced that the two former enemies have advanced on their historic reconciliation. Canal + and beIN Sports are agreed on the amount paid by the Qatari subsidiary of Vivendi Group: € 300 million per year over five years. Exclusive Canal + would cost 1.5 billion euros. This is not the first time that the pay channel buys exclusivity of one of its competitors since February 2015, Eurosport is distributed on CanalSat against 50 million euros per year, six times less than beIN. These would be 300 million, according to BFM Business, a guaranteed minimum. If the subscriber targets are exceeded, additional revenues will be shared between the two entities

A real effect

With this agreement -.? Which must still be approved by the Authority competition – Canal + hopes to retain subscribers. But will she win? Nothing is certain, because it is expected that we can always subscribe without subscribing to CanalSat subscription. However, if the fan takes a subscription to beIN Sports and Canal, it will then benefit from repayment of half a dozen euros on the total bill. “This should encourage them to subscribe to Canal +”, announces a negotiator quoted by BFM Business. Especially that Vivendi plans to launch a bouquet only sports (beIN, Eurosport …). Canal + will collect revenue from subscriptions to the Qatari, less a commission paid to service providers

Other ground where Vincent Bolloré chain could have a role to play. The English league. Purchased by Altice (Ma Chaîne Sport) for 120 million euros per year, the Premier League rights could be shared with other broadcasters. “The premium rights are not intended to be held or maintained exclusively for our own clients, announces the Voices Michel Combes, Director of Operations Altice and CEO of its subsidiary SFR. Prohibit customers to have access to football because they are not with us, that would be a bold step which could turn against us. I do not believe in the exclusivity that locks the customer. It’s hard to keep it under duress, customers want choice. “According to the daily, SFR had begun discussions with Canal +, which is currently broadcasting the matches. But the agreement still seems far away to intervene. The asking price is a drag, but the pay channel, although difficult, could be tempted, at least to fill the grids Canal + Sport next year.

The War of TV rights may -it result in a media Yalta?

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