With StarHub having secured the Euro 2012 broadcast rights well in advance, analysts say this gives the telco ample time to secure on-air sponsors - which in turn will bring down the cost to subscribers.
The last-minute rights deal for the 2010 FIFA World Cup, which SingTel and StarHub shared and broadcast simultaneously, left little time for either operator to secure advertising, meaning customers paid at least $70 to watch the tournament, seven times more they had paid to watch for the 2006 World Cup.
StarHub's acquisition of the UEFA European Football Championship 2012, will be subject to new cross-carriage measures that came into effect last August. SingTel mioTV's exclusive rights to the English Premier League remained unaffected until that three-year deal comes up for renegotiation at the end of the 2012-3 football season.
Introduced by the Media Development Authority, the cross-carriage measures were introduced to end pay-TV content exclusivity and make content accessible and cheaper for subscribers. Pay-TV operators have to allow their exclusive programmes to be broadcast by a rival, within five working days of the request being made at the same price, if the latter makes a request.
Ivan Wong, business director at UM Singapore, noted that advertisers now have more options with different broadcasters owning two flagship football programmes, adding that this would in turn lead to campaigns that would better help brands forge a deeper, more meaningful and engaging connection with their consumers.
“Brands and advertisers will have to make their decisions quicker to gain competitive advantage because category exclusivity through bundled deals by one broadcaster will not likely be possible in a situation where content/opportunities are brokered by two different entities,” said Wong.
Chloe Neo, business director at OMD Singapore, expects there will be a minimal impact on the pay-TV market, and she does not foresee any significant impact on subscriber base for SingTel or StarHub.
“Soccer fanatics would have their avenues to access to both UEFA and EPL. What would be exciting and valuable for advertisers lie in the seamless integration of SingTel/StarHub platforms that goes beyond the TV viewing experience,” she told Campaign.
Besides pay-TV, both SingTel and StarHub also offer mobile and internet platforms, which they may use for content streaming to monetise the sports rights they have. The broadcast rights would also give the telco an opportunity to cross-sell other channels and upsell bundled channel packages.
The Euro 2012 championship, which is jointly hosted by Poland and Ukraine, will kick off with an opening ceremony at National Stadium, Warsaw, Poland on 8 June, while the final showdown will be played in the Olympic Stadium, Kyiv, Ukraine on 2 July.