Can BT Sport Dethrone Sky Sports?

TL;DR

BT Sport is unlikely to dethrone Sky Sports because analyst Mark Rogers does not consider its package a must-have for the average football fan. Although BT introduced a referee in the commentary box and a life-size studio pitch, its viewing figures were about the same as Setanta’s and ESPN’s, despite spending over £1 billion. Read on to see why Sky’s content, commentators, match coverage, and integrated services give it the advantage.

Transcript

hi fools nate weissar here i'm an analyst with motley fool's share advisor service sitting with fellow analyst mark rogers and we're going to discuss bt's inaugural premier league weekend as the american and someone who can barely sit through a match of any sport um i'm gonna have to defer to you mark so how how did they do yeah i actually quite li... Read More

Key Insights

• 🫵 BT's Premier League coverage includes unique elements like a referee in the commentary box and a life-size pitch in the studio, adding novelty to the viewing experience.
• 🤨 However, there are similarities between BT's coverage and ESPN's coverage from years ago, raising concerns about originality.
• 🫵 Viewing figures for BT's Premier League coverage are comparable to what Setanta and ESPN achieved, indicating potential difficulties in attracting a large audience.
• 🖤 Analyst Mark Rogers believes that BT's offering lacks the compelling features and content that Sky possesses, making it difficult for BT to dethrone Sky as the dominant player in the market.
• 📦 The shift towards integrated home services, where consumers prefer all-in-one packages, poses a challenge for BT, as their offering may not be compelling enough compared to Sky's superior sports package.
• 🐕‍🦺 BT's share prices may be impacted by the lack of compelling offerings and the shift towards integrated home services, as consumers prioritize superior content and value in their bundled services.
• 👋 Sky's strong brand image, best commentators, and extensive coverage of Premier League matches give them the advantage in retaining customer loyalty.

Questions & Answers

Q: Can BT Sport dethrone Sky Sports?

Analyst Mark Rogers does not believe BT Sport’s offering is compelling enough to dethrone Sky Sports. He says Sky has the best content, commentators, team, and the most Premier League matches, while BT is not a must-have product for the average football fan.

Q: What stood out about BT Sport’s first Premier League broadcast?

BT Sport placed a referee in the commentary box, which Rogers considered novel and interesting. It also used a life-size pitch in the studio.

Q: How did BT Sport’s viewing figures compare with Setanta and ESPN?

The viewing figures were about the same as those previously achieved by Setanta and ESPN. Rogers viewed that similarity as a negative rather than evidence of blockbuster performance.

Q: How much did BT spend on its sports push?

BT spent over £1 billion trying to make its offering competitive. Rogers said making that large investment work economically would be very difficult.

Q: Why does Sky Sports have an advantage over BT Sport?

Rogers says Sky has strong share of mind, the best content, the best commentators, the best team, and the most Premier League matches. Those advantages make Sky’s sports package more compelling to the average football fan.

Q: Why did BT Sport’s coverage remind the analyst of ESPN and Setanta?

Rogers noticed several similarities with ESPN’s and Setanta’s earlier coverage, including familiar faces. He specifically named Steve McManaman as someone still appearing on the pundit team.

Q: Why are integrated home-service packages important to the competition?

Consumers increasingly buy broadband and television together rather than choosing only a phone line or standalone TV package. Rogers argues that broadband has become a commodity-like product, so Sky’s stronger sports offering can make its combined package more attractive.

Q: Why should BT shareholders be concerned?

Rogers believes BT’s offering may not be compelling enough for either the average sports fan or the average broadband user. Because consumers can obtain broadband from Sky alongside what he considers the better sports package, he sees the shift toward integrated services as an underlying risk for BT shareholders.

Summary & Key Takeaways

• BT's coverage of the Premier League's inaugural weekend included unique elements such as a referee in the commentary box and a life-size pitch in the studio.

• However, there are similarities to ESPN's coverage from years ago, and viewing figures are comparable to what Setanta and ESPN achieved.

• Analyst Mark Rogers believes that BT's offering is not compelling enough to dethrone Sky, which has the best content, commentators, and a majority of Premier League matches.