Sky TV unlikely to be Rugby World Cup broadcaster

New Zealand's pay-TV operator Sky Network Television is 'not the preferred' bidder to broadcast the 2019 Rugby World Cup. The company was informed overnight negotiations had proceeded with the preferred bidder.

Sky has been the exclusive rights holder of All Blacks test matches in New Zealand for over 20 years, however, Rugby World Cup rights are sold by IMG media on behalf of World Rugby separate to the SAANZAR rights which Sky holds.

According to the Herald, the leading bidder is a joint venture between Spark and TVNZ which could see the games streamed over the internet with TVNZ providing free-to-air coverage.

"We have been informed that negotiations are underway with the preferred party, and our bid remains in play should those negotiations fail," Sky said.

"We are not at liberty to provide further detail of the bid process at this stage."

Sky explained that while the Rugby World Cup is "great content" it is an "incredibly expensive event that plays every four years for six weeks".

If Sky TV were to lose the Rugby World Cup rights, it would be a historic moment for the company which has had a stranglehold over rugby in New Zealand for over twenty years. With increased speculation that tech giants such as Amazon are looking to make a play in the rugby rights business, investment advisor Jeremy Sullivan of Hamilton Hindin Greene advised;

"If Sky did lose the rugby rights though... watch out," he said.

The news of Sky's unpreferred bid was not well received by the market, with shares down seven percent in early trading.