Sky TV wins Rugby World Cup rights in pay-TV first

By Paul McBeth

Thursday 9th April 2009

Sky Network Television, the country's largest pay-TV provider, won the rights to host the 2011 Rugby World Cup, the first time free-to-air networks have missed out on live coverage of the entire event.

Sky beat out free-to-air rivals Television New Zealand and TV3 to host all matches, offering each game in high definition on its broadcasting platform. Rugby World Cup, the company set up to organise the world's third-largest sporting event behind the Olympics and FIFA's football world cup, is still negotiating the simultaneous free-to-air licensing for 16 matches, including the opener and finals.

"I am confident that we will deliver excellent coverage of all the games, which will be seen by an estimated four billion television viewers worldwide," said John Fellet, chief executive of Sky TV. "Sky is excited to be involved in what promises to be the biggest sporting event ever to be staged in New Zealand and will deliver live coverage of all 48 Rugby World Cup games to its subscribers."

Shares of Sky Shares rose 1.3% to $3.90 today and have gained almost 4% this year. Sky was always the front-runner for full hosting rights, but the International Rugby Board, the governing body for the game, accused it, TVNZ and TV3 of anti-competitive behavior when they tried to put forward a joint bid for the free-to-air rights.

Sky currently reaches around 45% of households, and will likely boost this number having secured rights to host the upcoming Winter and Summer Olympics. It has also benefited from the approach by the new Broadcasting Minister Jonathan Coleman, who decided to abolish a review into the way sporting events of national significance were tendered.

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