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Speaker 1: Good old Sky Sport come to the inflationary party with

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Speaker 1: a good old price rise almost twelve percent more as

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Speaker 1: of May now. Octagon Asset Management Equities analyst Page Hennessy

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Speaker 1: is with us on this page. Morning to you, morning

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Speaker 1: make I'm very well indeed, so as a punter, of course,

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Speaker 1: we all hate wage rises or cost rises, but I

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Speaker 1: suppose that's an investor, it's the bottom line. You're bringing

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Speaker 1: in more revenue and if you can make it stick,

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Speaker 1: that's no bad things.

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Speaker 2: Yeah, I mean that's exactly right. Like, no one likes

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Speaker 2: the price increase, but for us as an investor, we

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Speaker 2: see it's a reflection of reality for Sky Sports and

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Speaker 2: streaming sports and new zones that the prices continue to

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Speaker 2: go up, and for Sky to produce an actual profit,

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Speaker 2: they must reflect that within their prices, especially if Injre

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Speaker 2: is not willing to see right cufflation comes through in

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Speaker 2: their space.

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Speaker 1: The old m z are debate do you do Analysts

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Speaker 1: like you follow that with a great deal of interest.

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Speaker 1: Does this make or break ish for Sky depending on

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Speaker 1: which way it falls.

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Speaker 2: I mean, that is the huge debate for us really

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Speaker 2: right Like last every five of the years, we have

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Speaker 2: this debate which is whether or not Sky actually needs

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Speaker 2: those New Zealand rugby rights to be a profitable business.

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Speaker 2: And last time everyone said it would have been fatal,

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Speaker 2: and Sky clearly agreed. They paid up one hundred million

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Speaker 2: year and gave a stake into Rugby to make sure

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Speaker 2: they've secured those rights over Spark. The problem is we

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Speaker 2: just don't know right as an investor, we don't know

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Speaker 2: what the cost face looks like for Sky and ultimately

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Speaker 2: don't know how many consumers would churn on the back

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Speaker 2: of losing rugby, and so for us it can be

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Speaker 2: quite makeel break because we don't know whether or not

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Speaker 2: the share price will have from here.

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Speaker 1: From here, from an analyst point of view, is sport

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Speaker 1: their stickiest thing. In other words, they can come out

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Speaker 1: and yes I hate it, but I'll pay it because

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Speaker 1: it's sport and I love sport. In New Zealand love sport.

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Speaker 1: Therefore the wold.

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Speaker 2: Cough, I think that's really hard to tell. I think

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Speaker 2: New Zealanders absolutely love sport. I think what New Zealander's

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Speaker 2: absolutely though, is the breadth of the sports offering. And

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Speaker 2: that's what's probably the most important to Sky these days

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Speaker 2: is that it's not just New Zealand rugby, where you

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Speaker 2: want to watch you want to watch af the NFL,

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Speaker 2: the NBA, And it's the fact that I can go

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Speaker 2: to one place and pay for it all. I think

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Speaker 2: that that is their key consumer offering.

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Speaker 1: They couldn't agree with you more because I'm not interested.

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Speaker 1: Although I have the money to buy a whole bunch

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Speaker 1: of different stuff, I can't be bothered. And if I

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Speaker 1: can get it in one place, that's value, isn't it.

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Speaker 2: I totally agree. I think one it's convenience, and two

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Speaker 2: I think you actually end up paying less overall. Like

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Speaker 2: if you think about the streaming on an entertainment basis,

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Speaker 2: if you're paying with Disney class Through pays with Netflix

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Speaker 2: there on Amazon, eventually you end up paying more than

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Speaker 2: if you just paid for a single aggregator who was

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Speaker 2: bundling or your entertainment into one. It's the same with sport,

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Speaker 2: and we've seen it on the parts. When spark Sport

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Speaker 2: left the market, most people actually benefit because we saw

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Speaker 2: more sport roll back into Sky and suddenly we weren't

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Speaker 2: paying an extra twenty five dollars a month on top

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Speaker 2: for Sparksport that we were also already paying for Scarsport

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Speaker 2: because most of them reality had both packages exactly.

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Speaker 1: I don't really have time for this, but I'm too

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Speaker 1: fascinated if the zone come in and could they take

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Speaker 1: Sky completely.

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Speaker 2: Look, they've done it, They've done it in Australia just recently.

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Speaker 2: They're a quiet Fox Shower, which you would consider it

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Speaker 2: to be Sky's counterpart. I think that's a smart pay,

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Speaker 2: Like do you come into a market you don't know

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Speaker 2: with a singular sport and a subscriber base you don't have.

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Speaker 2: That seems like a hard way to monetize assets to me,

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Speaker 2: whereas you could pick up Sky Sky trades that are

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Speaker 2: two times even a monkible. I just paid seven times

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Speaker 2: for Foxtown Australia, Like it is a bargain and you

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Speaker 2: get your huge subscriber base around six and fifty thousand

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Speaker 2: subscribers on top of a bundle of sports rights and

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Speaker 2: entertainment rights. It just seems to me the mostological answer

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Speaker 2: if designer is going to come into the market.

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Speaker 1: Road stuff page. I'm enjoy talking to you, appreciate it.

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Speaker 1: We'll get your back page. Hennessy, Who's where the Octagon

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Speaker 1: Asset management Equities? Watch the space for more from the

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Speaker 1: Mic Asking Breakfast. Listen live to news talks there'd be

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