Pay TV Sports rights strategies in

Europe

22nd November 2018

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Case studies

Inflation of sport broadcasting rights

Agenda

Analysis of sport TV content distribution

Analysis of sport rights distribution

Concluding remarks

0,00

1,00

2,00

3,00

4,00

5,00

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Sky Germany(2018/2021)

Sky Italy and Dazn(2018/2021)

Mediapro andTelefonica

(2019/2022)

Mediapro (2020/2024) BT and Sky UK(2019/2022)

Rig

hts

sp

en

din

gs in

bill

ion

eu

ros

Pay TV broadcasters

INFLATION OF FOOTBALL BROADCASTING RIGHTS

+40%

+3%+30%

+40%

-13%

Domestic TV rights spent for top European football leagues for the three next seasons

Strongest growth for the Bundesliga, LaLiga and the Ligue 1

11 countries in Western Europe

Mature Pay TV markets

Pay TV subscriber base CAGR at 3,2% in 2018/2023

Arpu range from 17€ to 32€

SCOPE OF THE RESEARCH: Western Europe

0 €

5 €

10 €

15 €

20 €

25 €

30 €

35 €

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Pay TV penetration Blended TV ARPU

Higher ARPUs are found in countries with large FTA markets, where Pay TV subscribers are

those who are willing to pay high prices for premium content on TV.

€ 6.1 bn

Value of the west European Pay TV market for Q2 2018

€ 2.1 bn

Subscription revenue generated by sport TV packages

€ 1.9 bn

Subscription revenue generated by premium sport TV packages

SPORT CONTENT MARKET VALUE

Sport content contribution to Pay-TV market revenues

Premium sport TV packages: Sky, Dazn, Teleclub, MySports, BT, RMC Sport, BeIN, Canal+, Proximus 11, Voo Sport, Play Sport, Ziggo Sport, Fox Sports, SportTV, BTV, Movistar,

Mediaset, Serie A Pass, Eleven Networks

Basic paid sport TV packages: Eurosport, Telekom Sport, Premier Sport, Eir, Gaago TV, Opensport.

CONTRIBUTION OF SPORT CONTENT TO PAY TV REVENUES

Highest share of Pay TV revenues in:

Spain - 41%

Main actors: Movistar (Telefonica), BeIn

UK – 40%

Main actors: BT, Sky

Telcos creating inflation on sport markets to drive subscribers to their fixed broadband network

Lowest share of Pay TV revenues in:

Belgium, Netherlands

Only 10%-15% of Pay TV subscribers are willing to payfor premium TV content

MOST POPULAR PREMIUM SPORT PACKAGES

0% 5% 10% 15% 20%

Sky Sports Austria

Sky Sports Germany

Play Sport

Sky Calcio Italy

Teleclub Sport

Sport TV

Canal+ Sport

Movistar Fútbol

Sky Sports Ireland

Fox Sports Eredivisie

BT Sport

Penetration on domestic TV householdsTop players by country

Growth drivers

Detention of key sports rights

European football competitions

and/or

Top national football leagues

and/or

Top competitions from other sports

Redistribution strategies

Direct redistribution partnership

Indirect redistribution

Even between premium broadcasters themselves: cf

broadcasting deals between Sky and BT in the UK,

Canal+ and SFR in France, etc.

Major OTT players

Bein Connect, Now TV/Sky Supersport, Dazn

League OTTs

Gaago TV, Serie A Pass , NBA League Pass

Pay TV broadcaster challengers

OpenSport, Premier Sport, Eurosport Player

Potential new entrants

Amazon, Facebook

Operators’ Pay TV Everywhere apps going D2C

BT, Play Sports Go

SPORT OTTS STILL IN THEIR INFANCY

7%

93%

France

4%

96%

Spain

OTT is still playing a minor role in the distribution of sport content

5%

95%

OTT market share oftotal Sport packagesubscribers

TV market share oftotal Sport packagesubscribers

REDISTRIBUTION OF MAJOR FOOTBALL LEAGUES

0% 5% 10% 15% 20% 25%

Eredivisie

Nations League

Jupiler Pro League

FA Cup

English Football League

Europa League

EFL Cup

DFB Pokal

Champions League

Serie A

Ligue 1

LaLiga

Bundesliga

English Premier League

Major football leagues penetration of the regional Pay TV market(11 countries)

REDISTRIBUTION OF FOOTBALL VS OTHER SPORTS

Major sport competitions penetration of the regional Pay TV market(11 countries)

0% 5% 10% 15% 20% 25%

National Hockey League

Ultimate Fighting Championships (UFC)

World Rugby Seven Series

The Rugby Championship

Rydercup 2018

Formula 1

PGA Tour

National Basketball Association

LaLiga

Bundesliga

English Premier League

• June 2018: Telefonica buys back Mediapro’s rights for the UEFA Champions League and Europa League (2018/2021) for 1.1 billion euros

• July 2018: Telefonica launches a channel dedicated to its UEFA rights

• July 2018: Vodafone will stop distributing Telefonica’s football channels

• September 2018: Vodafone loses 70K TV subscribers in Q3

CASE STUDY: VODAFONE SPAIN

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Opensport

Movistar Deportes Package

Movistar Motor Package

BeIN Sports Spain

Movistar Fútbol

Sport TV packages penetration of the Spanish market

Penetration over Pay TV market Penetration over TV Households

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

Q22017 Q32017 Q42017 Q12018 Q22018 Q32018

Subscriber base QoQ growth

Telefonica Espana Vodafone Spain Orange Spain

• Mai 2017: Altice acquires UEFA Champions League and Europa League exclusive broadcasting rights for

• August 2018: Altice launches RMC Sport

• Redistribution via Canal+ and on OTT

• November 2018: Altice claims « more than 1 million customers won back in France » in Q3. 200K new subscribers would be attributed to the sport offer.

CASE STUDY: RMC SPORT FRANCE

+2.0%

-0.2%

+0.6%

+0.9%

3

4

5

6

7

8

9

10

11

12

Q22018 Q32018

Mill

ion

su

bscrib

ers

Fixed broadband subscribers and QoQ growth

Free Bouygues Orange SFR

Fixed B2C additions: +166K subscribers

70% of which coming from the sport OTT.

Only 50K new fixed broadbandsubscribers

A BROADER LOOK AT SPORT ON TV IN EUROPE

<5€

<10€

<25€

>25€Diversity of Pay TV ARPUs in Europe

From less than 5€ to more than 25€

Nordic countries

Situation similar to Western Europe

High ARPUs, premium sport TV packages

Central and Eastern Europe

Average ARPU below 10€

No market for premium sport TV packages

Lower cost of broadcasting rights for top

european and national leagues

Q&A

For more information on this webinar and the Dataxis’ new sport module:

juliette.boulay@dataxis.com

For more information on the NexTVSeries COO & DACH conference in Berlin, Nov 29th 30th:

priscilla.tirvengadum@dataxis.com

Thank you!

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