Media buyers welcome $2.5bn AFL deal but warn of pressure price puts on media owners

August 19, 2015 12:21

Australia’s media buyers have warned the winners of the AFL’s $2.5bn sports rights deal that they will struggle to get advertisers and sponsors to spend more than they already do.

The six-year deal, announced last night, sees the sporting rights shared between News Corp, Network Seven and Telstra.

View image | gettyimages.com

“The AFL deal is a massive amount of money and the code would be incredibly pleased,” said Ian Perrin, ZenithOptimedia CEO, whose clients include Reckitt Benckiser, Honda and Parmalat.

“The question will be how will the relative media companies amortise that and be sure they at least break even on what is a very large commitment.”

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Nic Christensen

Nic Christensen worked for Mumbrella from 2013 to 2016, in roles including deputy editor and media & technology editor. He is former media writer for The Australian and has also worked as a reporter for The Daily Telegraph and senior producer for Radio 2GB.

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2 COMMENTS

Ryan 19 Aug 15

Seems like Nine and now Seven rushed into securing their respective codes (at a substantial premium) for fear a resurgent Ten would soon be able to co-fund a bid. If I were Ten, I’d adopt a Netflix-ish style model – put the funds they’ve saved into actual content creation. Quality drama and testing new reality formats.

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Pepsi Monster 20 Aug 15

This is a massive fail. If the last two weeks have taught us anything, it’s that the best content on TV is from YouTube in the form of cat and dog videos.

If I were head of programming, I’d start my own league for LOLiest Cats & Dogs who go head to head over a winter season of 200 matches to see who can LOL the most LOL come grand final day.

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