Demetriou hints at AFL TVJesse Hogan
August 16, 2011ANDREW Demetriou has floated the possibility the AFL's latest television rights deal, which will provide $1.12 billion over the next five years, could be its last.
The league's chief executive has provocatively suggested that instead of allowing television networks to broadcast matches, and then keep the resulting advertising and subscription proceeds, the AFL could stream matches directly to customers of the national broadband network.
The plan would be in keeping with an AFL strategy to increase its profit margins, which has included creating an in-house media division to offset the profit-diminishing influence of middlemen.
''We are trying to control as much as we can control and not deal with as many third parties. That is where we see upside in the revenue,'' Demetriou said on TheConversation.edu.au.
''We are already planning for our next broadcast rights in five years … that is how sophisticated it has become. Where are the next revenue streams coming from and what is the next big ticket item?''
In the latest broadcast deal Telstra bought the right to stream one live match per round using internet protocol TV and every match live to its compatible mobile phone customers.
With many clubs competing for supporters and commercial opportunities, Demetriou said it was necessary for the AFL to assume more responsibility for generating more profits and then distributing those profits to the clubs. He said that would be more palatable than clubs instead seeking more gambling investments as a means for consistent growth.
http://www.theage.com.au/afl/afl-news/demetriou-hints-at-afl-tv-20110815-1ius3.html#ixzz1V7YSBOv9
