WHILE ACQUIRING SPORTS rights is getting increasingly expensive for broadcasters, the fact is it’s still a profitable business – and in Canada, Rogers is in the best position to profit from sports programming, according to a new report from BMO Capital Markets.
Sports programming, reads the research report by analyst Tim Casey, is a critical category for all BDUs. “Sports are live. They are PVR-proof. They are relatively piracy proof. As media distribution platforms proliferate, sports programming has emerged as the most resilient, and therefore most important, category for video suppliers and packagers.”
National sports broadcasting in Canada is effectively a duopoly between Rogers and Bell, says the report's author. Both companies have benefited as most sports programming has moved from off-air channels to subscription services, which supports and drives video bundle penetration and ARPUs. While Bell owns the most popular network, TSN, Rogers’ overall combination of assets gives it a competitive edge when it comes to sports programming.
Rogers is Canada’s largest wireless operator and cable company, as well as owner the Toronto Blue Jays and the Grand Slam of Curling. It’s also part owner, along with Bell, of Maple Leafs Sports and Entertainment, the company behind the Toronto Maple Leafs, Toronto Raptors and Toronto FC. Those teams’ games can be viewed on Rogers’ Sportsnet One or Sportsnet World channels, and soon (pending CRTC approval) also on The Score, which Rogers has acquired and will rebrand to become part of the Sportsnet portfolio.
It’s Rogers’ “vertical asset ownership” of sports teams, channel and video distribution that BMO analysts say provides the company with a hedge against escalating values in the sports market. “Rogers – given its media portfolio, team assets and wireline incumbency – is well positioned to exploit any turn in team fortunes,” reads the report.
