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Home / Business

Sky seizes back Formula 1, cutting it out of Spark-TVNZ deal

Chris Keall
By Chris Keall
Technology Editor/Senior Business Writer·NZ Herald·
16 Dec, 2022 04:25 AM3 mins to read

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Photo / Getty Images

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Sky TV says it has won back rights to Formula 1 from Spark Sport - cutting the motorsport out of a Spark-TVNZ deal, revealed this morning, that will see most Spark Sport content shift to the state-owned broadcaster from July.

The new deal does have free-to-air elements, however.

The agreement will see all Formula 1 races shown on Sky’s platforms from January 2023, along with support content and analysis from Sky UK’s world-class team.

The Melbourne Grand Prix will be free-to-air, along with highlights of each F1 race free-to-air. Sky won’t confirm at this point if the free broadcasts would involve its own Prime channel or Discovery or another vehicle.

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This morning, Spark said its Formula 1 rights would expire on December 31, and that F1 would not be included in the content that will shift to TVNZ.

Sky will have F1 content on its channels, plus its Sky Sport Now app, from January. The first race of the new F1 season is the Bahrain Grand Prix in March 18 - 20.

The streaming content will be non-exclusive. Kiwis will also have the option to pay US$99 ($153) per year to watch races live through F1′s official app, which is global.

The pay-TV provider did not put a price on the deal, which it describes as “multi-year”.

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Although most races are in the small hours NZ time, in August 2014, Coliseum Sports Media boss Tim Martin told this reporter his company had made a $6 million bid for four years’ F1 rights for New Zealand. The price will only have headed north since, particularly given the success of Netflix’s behind-the-scenes docu-series Drive to Survive in turbocharging ratings for live races.

Sky Chief Executive Sophie Moloney said: “Formula 1 is spectacular to watch, and we know from our research that many of our customers are very keen for us to get this exciting content back on Sky. We also expect it to attract new customers, particularly to our streaming service Sky Sport Now.”

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“Our commitment to attracting new and diverse sports fans, and to delivering to all New Zealanders, is also clear in the free-to-air aspects of this deal.”

Today’s developments good or bad for Sky investors?

Meanwhile, Jarden head of research Arie Dekker said it was too soon to say if the Spark-TVNZ deal was a threat to Sky, with it representing the start of a broader TVNZ push into sport that could ultimately include rugby rights, or a positive in that Spark’s retreat could signal the market had passed peak sports rights costs after years of escalation.

Spark shares were up 0.86 per cent to $5.29 in late trading. The stock is up 15.6 per cent for the year.

Sky shares were flat at $2.24. The stock is down 17.1 per cent for the year.

The NZX50 was down 0.49 per cent.


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