Prime's in the picture for 2006 rugby

Prime Australia chief executive Warwick Syphers said yesterday the addition of rugby to the channel's sport programming, which included rugby league and cricket, would create a "compelling viewing option".

TV3 and Prime were bidding for the rights after a three-year contract between TV3 and Sky expired.

On November 18, Sky Network Television entered into a conditional agreement to buy Prime Television's New Zealand business for $30.36 million. The deal is subject to clearance from the Commerce Commission.

"The negotiations with Sky took several months as it was important to Prime that this deal would work for us whether or not Sky purchased the business," Syphers said. "Our bid was an aggressive one. However, if we can just lift viewership by 1 per cent it will be worth the investment."

Syphers defended Prime's coverage. "In fact in April 2005, as part of its application for New Zealand on Air funding, Broadcast Communications estimated Prime's coverage at more than 91 per cent," he said.

Prime confirmed it was reviewing a proposal by BCL, the Government-owned wireless network provider, to extend its existing coverage areas.

Sky chief executive John Fellet said the only other bid received was "almost half the value received by Sky in the 2005 season". He said with the new-look Super 14, the NPC and the expanded Tri-Nations series, he believed rugby was "more valuable than ever".

- NZPA