Spark v Sky heats up: Inside the battle for the 2023 Rugby World Cup rights

Spark Sport and Sky Sport are set to battle it out for the broadcast rights for next year's Rugby World Cup in France. Photo / Photosport

Spark Sport and TV3 are believed to be working on a joint plan to win broadcast hosting rights to the 2023 Rugby World Cup in a move that could lead to Sky Sports partnering with TVNZ to mount a rival bid.

World Rugby is understood to be sending officials to New Zealand next month to begin preliminary discussions with interested broadcast parties, before finalising a World Cup broadcast partner later this year.

Some investment analysts have questioned Spark's commitment to its sports streaming platform after it lost the English Premier League rights and failed to secure a contract to any of the major Australasian winter codes, but head of Spark Sport Jeff Latch says the platform remains committed to building a content portfolio that can drive it to profitability.

Latch says: "We are interested in and will look to acquire all sports properties that are able to deliver a commercial return."

The Herald understands that having successfully put together a bid to jointly broadcast this year's Rugby World Cup in New Zealand, Spark Sport and Warner Bros. Discovery New Zealand, who owns Three, are working on a proposal to also snare the hosting rights to next year's tournament in France.

Rugby World Cup rights come with a non-negotiable requirement for a specific number of games to be shown live on a free-to-air platform, hence the alliance between the paywalled streaming operator and the US media and entertainment giant.

The more live or delayed live content that a bid can promise to a free-to-air channel, the more attractive it is to World Rugby who wants eyeballs as much as it wants money for its jewel in the crown event.

Spark Sport worked with TVNZ to deliver the 2019 Rugby World Cup rights, but the Herald understands the state broadcaster has not been sounded out about continuing the partnership for next year's tournament.

Two things may have pushed Spark Sport towards Warner Bros. as their Rugby World Cup partner: the first is that TVNZ is heading towards a merger with Radio New Zealand next year and uncertain of its future remit.

And the second is that in Spark's investor presentation of its 2022 half year results, it noted that future revenue growth for sport is expected to be slower than originally forecast and that it was focused now on: "Accelerating strategic partnering options to drive improved returns."

Spark Sport boss Jeff Latch. Photo / Brett Phibbs

When Spark Sport won the rights to the 2019 World Cup, it is believed they paid $12m to stream all 48 games live, with TVNZ reportedly chipping in somewhere between $1m and $1.5m to secure the rights to 12 matches – seven live and five delayed.

Warner Bros. has considerably deeper pockets than TVNZ and is likely to be able to make a greater financial contribution to the joint bid than TVNZ managed four years ago and secure more content for itself.

A joint Spark Sport/Warner Bros. bid will face stiff competition from Sky, however.

The pay TV broadcaster has secured the long-term rights to Super Rugby and All Blacks tests and has seen its share price rally strongly in the last 12 months as it transitions from satellite technology and into streaming.

There was considerable internal angst at Sky Sports when it lost the 2019 Rugby World Cup rights to Spark and while a relatively short tournament won't necessarily deliver strong commercial returns, not having the rights would damage the company's self-styled promotion of itself as the 'home of sport'.

Sky has only once been the sole New Zealand rights holder of the World Cup rights, when it won the package to broadcast the 2015 event, using its own Prime station as the free-to-air channel.

And while it could again use Prime as its free to air partner, a joint bid with TVNZ – which has greater audience appeal and brand recognition - would be more compelling and the two channels have previously collaborated at major events before, such as the Olympics last year.

A joint bid with TVNZ would be more compelling and the two channels have previously collaborated at major events before, such as the Olympics last year.

The other strong card in Sky's hand is its established relationships with pubs and clubs around the country.

In 2019, it struck a deal with Spark Sport to access its satellite link to ensure major venues could show All Blacks games live.

But it would be a surprise if it was willing to do that again this time round.