With BT set to launch BT Sport, Sky at last seems to have a serious rival. Sky has already seen off the challenge of Disney owned ESPN, as well as ITV Digital and Setanta Sports, so it will be interesting to see if this signals the start of the end of Sky’s sporting dominance or if there is more to this than meets the eye.
BT’s plan to dethrone Sky appears to be centred on the promise to offer its three Sports channels free of charge to its broadband customers. BT Sport has the rights to show 38 live Barclays Premier League games, live football from leagues in Germany, France, Italy and Brazil, 69 live Aviva Premiership rugby matches, as well as women’s tennis.
Sky are taking the threat seriously too as they are refusing to run any BT ads (which make up part of a £30m campaign) on its sport channels – something it didn’t feel necessary with ESPN.
Although at first glance it looks like BT want to go toe-to-toe with Sky for sporting rights and the battle will all be about who will offer the best value for money TV service, dig a little deeper and it actually becomes more a fight for broadband customers.
Since 2006 BT has haemorrhaged broadband customers, suffering most losses to BSkyB, so are determined to drive people back to their internet service. The offer of ‘free’ live football can only be accessed by streaming it online through their broadband service. This plan could have a flaw in it as although modern TV audiences are more than capable of shifting their viewing away from traditional TV to new devices, the preference for viewers to watch major sporting events on the main TV set remains.
If the actual dispute becomes solely about broadband customers it will be a great shame. BT could make a genuine move into the TV sector with the resources and technology at its disposal, but it would need more ambition, imagination and commitment than just another football and general sports proposition.
Either way this rivalry is sure to intensify in the coming weeks and months. Sky have already complained to the Advertising Standards Agency about BT’s adverts for its new sports service and BT have countered by complaining to Ofcom about Sky Sports TV supply to rival broadcasters.
Going forward BSkyB look as if they will still have the upper hand for the time being, but BT Sport’s emergence may at least make them reconsider their current business model. The plan to continue increasing prices appears to be no longer sustainable with such an affordable competitor. Sky’s reaction and what they decide to do next will certainly be intriguing.