Telcos to make joint bid?
THE battle for the lucrative broadcast rights of the English
Premier League (EPL) is about to begin anew, but a new report
claims that two of the warring sides may form an unlikely
alliance.
According to a research paper from Deutsche Bank, telco giants
SingTel and StarHub are 'increasingly likely' to launch a joint bid
to secure the rights to screen EPL matches here for the next three
seasons. Such a move could stem escalating pay-TV subscription
fees, which have drawn widespread complaints from sports fans
here.
'We believe both StarHub and SingTel are planning on submitting
a joint bid for the Premier League in order to prevent a bidding
war and excessive content costs,' said the report, which was
released last week for the bank's clients.
'We view a joint bid followed by equal sharing as the best
possible outcome for StarHub, while allowing SingTel to continue
developing its pay-TV platform.'
There is just one catch. The Premier League, the content
provider, does not allow combined offers under its current rules,
preferring to pit one competitor against another in a bidding
exercise.
'The broadcast rights we presently own for the Barclays Premier
League are offered on an exclusive basis with strict terms that do
not allow for collaboration between pay-TV operators,' StarHub's
head of content Kathleen Syron told The Straits Times on Thursday.
'We will be submitting a bid for the 2010-2013 seasons to the FA
Premier League and are unable to share our bidding strategy.'
SingTel also kept its cards close to its chest. When asked about
the possibility of a team-up, a spokesman said: 'Good football
content is a very important aspect of the mio TV business, and we
will act accordingly when we receive the EPL bid documents.'
However, the report also predicted that the telcos may yet hold
the trump card, if they insist on collaborating.
Said Deutsche Bank: 'If the Premier League refuses to take a
joint bid, then they could well be ruling out the two largest and
most credible Singapore bidders - which may result in relatively
low subsequent proceeds.'
A new auction for the 2010-2013 EPL rights is set to kick off
next month, with the winner announced by the end of the year. If a
combined SingTel-StarHub bid does not materialise, observers say a
three-cornered fight is the next likely scenario, with former
rights holders ESPN StarSports also keen to join the fray.
source: straitstimes.com