…and what the deal means for BT TV subscribers
BT’s announcement to investors that it’s now in exclusive talks with Discovery over BT Sport’s future instantly solves a number of issues that would have affected BT Sport if it had gone with DAZN.
For BT, the deal provides to key to unlock Discovery+ for its TV subscribers. It also provides a key to Sky’s NOW streaming service, now that BT and Sky will still have something to trade for each other’s services.
Under the proposals, BT retains a 50% share in BT Sport, while Discovery gains the other half. BT Sport and Eurosport UK will come together under the planned business structure.
Discovery+ access on BT
As a result of the deal, Discovery will make Discovery Plus available on BT TV, while BT puts BT Sport into a joint venture with Discovery Sports.
The absence of Discovery Plus on BT TV has been quite notable, especially as BT has moved toward BT TV boxes becoming one stop shops for all streaming apps.
Long term availability of Eurosport on BT
BT had previously written to some BT TV customers advising them that Eurosport would cease on 17th January 2022. In January, BT told customers a deal had been reached, keeping Eurosport on BT TV until June 2022.
Today’s confirmation of a deal means BT TV users can rest assured they’ll continue to receive Eurosport on their service.
Long term availability of BT Sport on Sky and NOW (TV) on BT
In 2019, BT and Sky agreed a reciprocal deal. Sky would sell BT Sport subscriptions to its satellite customers on behalf of BT -ending the need for a separate subscription and bill. In return, BT would integrate NOW (TV) into its TV platform and sell subscriptions on behalf of Sky.
A deal to sell DAZN to Sky would have thrown the deal off-balance. After selling BT Sport, BT would have nothing to give to Sky in return for BT getting NOW.
And already, the first fruits of going with Discovery rather than DAZN can be seen. BT has signed a new deal with Sky ensuring access to each other’s channels to “beyond 2030”.
Rights holders pacified
A joint venture with Discovery means BT still retains control over BT Sport. This means concerns by rights holders over a full change in ownership are pacified.
Should BT sell off its remaining stake in BT Sport to Discovery in the future, Discovery’s stake in the business will already be factored in when new sports rights are awarded.