1 00:00:00,040 --> 00:00:02,440 Speaker 1: The news for New Zealand Media. Sky TV is buying 2 00:00:02,520 --> 00:00:05,520 Speaker 1: three for a buck from Warner Brothers Discovery and it 3 00:00:05,519 --> 00:00:08,200 Speaker 1: will take on none of its debt. Investors were loving 4 00:00:08,240 --> 00:00:11,719 Speaker 1: it yesterday's shares and Sky ended up up five percent 5 00:00:11,880 --> 00:00:14,240 Speaker 1: more than three bucks. Dunk and Greeves spinoff founder and 6 00:00:14,360 --> 00:00:15,880 Speaker 1: media commentator with me this morning. 7 00:00:15,880 --> 00:00:18,279 Speaker 2: Hey Duncan, Good morning, Ryan. 8 00:00:18,480 --> 00:00:21,200 Speaker 1: Good to have you on the show. So what is 9 00:00:21,239 --> 00:00:23,919 Speaker 1: this a good smart business decision from Sky? 10 00:00:25,440 --> 00:00:28,400 Speaker 2: I think anytime you can buy a business that's got 11 00:00:28,400 --> 00:00:32,080 Speaker 2: one hundred million dollars in revenue for a dollar, if 12 00:00:32,120 --> 00:00:34,720 Speaker 2: you want to take a hard look at it, it 13 00:00:34,760 --> 00:00:37,360 Speaker 2: obviously says something about the nature of the sector that 14 00:00:37,680 --> 00:00:40,440 Speaker 2: it goes for that price. But you know that there's 15 00:00:40,479 --> 00:00:43,839 Speaker 2: a reason why analysts were very hot on this. It 16 00:00:43,920 --> 00:00:46,800 Speaker 2: uster have been quite cool on the Media Works acquisition 17 00:00:46,840 --> 00:00:49,040 Speaker 2: a few years ago for Sky. So yeah, great deal 18 00:00:49,080 --> 00:00:49,400 Speaker 2: for Sky. 19 00:00:49,440 --> 00:00:51,519 Speaker 1: I think it leads them with and you point this 20 00:00:51,600 --> 00:00:53,519 Speaker 1: out in your column. With a lot of things, a 21 00:00:53,560 --> 00:00:55,120 Speaker 1: lot of fingers and a lot of pies, a lot 22 00:00:55,160 --> 00:00:57,640 Speaker 1: of apps to run, you know, a lot of linear 23 00:00:57,680 --> 00:01:00,360 Speaker 1: TV channels to run. Do they need them or will 24 00:01:00,400 --> 00:01:03,000 Speaker 1: they need them all? Or will they rationalize. 25 00:01:03,640 --> 00:01:06,080 Speaker 2: Yeah. I think that's been a persistent issue for skuy 26 00:01:06,319 --> 00:01:11,039 Speaker 2: dating back to probably the John Phillett era CEO when 27 00:01:11,040 --> 00:01:15,039 Speaker 2: they tried to merge. If you remember with Vodaphone, that 28 00:01:15,200 --> 00:01:18,480 Speaker 2: they've got a lot of different pieces of technology, and 29 00:01:18,560 --> 00:01:23,160 Speaker 2: if you look at the pre eminent modern sort of 30 00:01:23,280 --> 00:01:26,000 Speaker 2: TV media company at Netflix, which is just a single 31 00:01:26,080 --> 00:01:30,560 Speaker 2: property so that you can get on any device anywhere 32 00:01:30,560 --> 00:01:35,880 Speaker 2: in the world, Sky much smaller company, a much moreer 33 00:01:35,920 --> 00:01:38,320 Speaker 2: market and has a lot of different things going on. 34 00:01:38,440 --> 00:01:41,240 Speaker 2: So I think they're at a great scale now that 35 00:01:41,360 --> 00:01:44,720 Speaker 2: certainly they can rationalize that. Not necessarily the brands, I 36 00:01:44,720 --> 00:01:46,640 Speaker 2: think that you can live with that, but certainly a 37 00:01:46,720 --> 00:01:49,840 Speaker 2: number of different technology platforms and how they talk to 38 00:01:49,880 --> 00:01:52,160 Speaker 2: each other that will be a sorder of business to me. 39 00:01:52,400 --> 00:01:56,280 Speaker 1: At the back end. What about their projections, their growth projections. 40 00:01:56,520 --> 00:01:58,560 Speaker 1: I mean, given what you know about the state of 41 00:01:58,680 --> 00:02:02,280 Speaker 1: running media companies in New Zealand right now, especially ones 42 00:02:02,320 --> 00:02:06,080 Speaker 1: that are relying on advertising, that projection of earnings growth 43 00:02:06,120 --> 00:02:09,280 Speaker 1: of at least ten million a year by twenty eight 44 00:02:09,400 --> 00:02:12,880 Speaker 1: I think it was you know, these things realistic. 45 00:02:13,639 --> 00:02:17,880 Speaker 2: I think so, I mean, Sky ultimately buys a lot 46 00:02:17,919 --> 00:02:22,160 Speaker 2: of content on one side, from sports to entertainment to some 47 00:02:22,280 --> 00:02:26,040 Speaker 2: international news and then try to sell it a bunch 48 00:02:26,120 --> 00:02:29,000 Speaker 2: of different ways. Some of it they had supported. Some 49 00:02:29,160 --> 00:02:32,160 Speaker 2: of it, you know, a lot of it are subscription revenue. 50 00:02:32,840 --> 00:02:35,079 Speaker 2: But what they've done now is really build that that 51 00:02:35,240 --> 00:02:37,600 Speaker 2: had supported side of the business, but a stake and 52 00:02:37,840 --> 00:02:42,600 Speaker 2: over time just you know, take the content that they 53 00:02:42,639 --> 00:02:45,760 Speaker 2: already have and put it in a bunch of different places. 54 00:02:45,840 --> 00:02:49,280 Speaker 2: And that's what three and three now offer them far 55 00:02:49,400 --> 00:02:53,520 Speaker 2: bigger scale of free to health, really accessible content they've 56 00:02:53,520 --> 00:02:56,679 Speaker 2: had for They've actually done well in advertising Sky in 57 00:02:57,320 --> 00:02:59,920 Speaker 2: a market that's been pretty terrible for a lot of 58 00:03:00,120 --> 00:03:03,640 Speaker 2: local media. So you know, it really does look like 59 00:03:03,919 --> 00:03:07,560 Speaker 2: a very there's a basket and here which which a 60 00:03:07,600 --> 00:03:09,760 Speaker 2: great discus and also great for three, which has had, 61 00:03:10,120 --> 00:03:13,760 Speaker 2: as you will know, reluctant owners for a long period 62 00:03:13,800 --> 00:03:14,120 Speaker 2: of time. 63 00:03:14,200 --> 00:03:18,840 Speaker 1: Now, Yeah, reluctance the nice word. I think duncan thank you, 64 00:03:19,160 --> 00:03:21,920 Speaker 1: Dank and Grieve spin off founder and media commentator on 65 00:03:22,040 --> 00:03:25,200 Speaker 1: the Sky three deal. For more from Early edition with 66 00:03:25,320 --> 00:03:28,320 Speaker 1: Ryan Bridge, Listen live to news talks it'd be from 67 00:03:28,400 --> 00:03:31,919 Speaker 1: five am weekdays, or follow the podcast on iHeartRadio.