Media
Enders Analysis has warned that Setanta may not survive after losing a package of live Premier League coverage rights to Sky last week.
On Monday, it emerged that Setanta was seeking to secure £159m in new funding to attempt to buy the package, or the rights to some of the matches in it, back from Sky. Further press reports today suggest that the broadcaster plans to meet with the Premier League in a bid to secure a deal to restore effectively half its Premier League output.
Enders said that Setanta currently reaches 1.5m subscribers, "slightly short of its required break-even total" of between 1.7-1.8m, assuming £10m in annual revenues per 100,000 subscribers.
"We... envisage mass subscriber defections," Enders warned. "With live Premier League football such a jewel in its crown, the fear is that Setanta could easily lose upwards of a third of its current subscriber base. At the very least it has to review its entire business plan and survival cannot be taken for granted."
However, it added that "many diehard sports fans will still want Setanta even with a reduced Premier League offering", and suggested that the combination of reduced rights payments and a fan base who may be willing to continue to pay for the service "may actually prove positive".
A spokesperson for Setanta said that the broadcaster "retains the rights to show 46 Premier League games per season until the end of 2009-10 along with a host of other top-class sport".
On Monday, it emerged that Setanta was seeking to secure £159m in new funding to attempt to buy the package, or the rights to some of the matches in it, back from Sky. Further press reports today suggest that the broadcaster plans to meet with the Premier League in a bid to secure a deal to restore effectively half its Premier League output.
Enders said that Setanta currently reaches 1.5m subscribers, "slightly short of its required break-even total" of between 1.7-1.8m, assuming £10m in annual revenues per 100,000 subscribers.
"We... envisage mass subscriber defections," Enders warned. "With live Premier League football such a jewel in its crown, the fear is that Setanta could easily lose upwards of a third of its current subscriber base. At the very least it has to review its entire business plan and survival cannot be taken for granted."
However, it added that "many diehard sports fans will still want Setanta even with a reduced Premier League offering", and suggested that the combination of reduced rights payments and a fan base who may be willing to continue to pay for the service "may actually prove positive".
A spokesperson for Setanta said that the broadcaster "retains the rights to show 46 Premier League games per season until the end of 2009-10 along with a host of other top-class sport".
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