The market interprets the agreement between BC Partners and Deutsche Telekom to broadcast each other’s sports programs as a prelude to developments in the business and sports fields – The reasons that led the two competitors to form an alliance and the significant benefits for viewers. Unauthorized use or appropriation of this content in any way is prohibited by Intellectual Property Law, with severe civil and criminal penalties for the violator.

Television Revolution

The market sees the agreement between Deutsche Telekom, which controls OTE, and BC Partners, the owner of United Group and parent company of Nova, for the mutual sharing of sports content broadcasted on their subscription platforms, COSMOTE TV and EON TV respectively, as a prelude to developments and upheavals in the television, business, and sports landscape.

Starting August 23rd, subscribers of COSMOTE TV’s Full Pack and Sport Pack will have access to NOVASPORTS channels for an additional cost (ranging from 1 to 4 euros, depending on the package and provider), and EON TV subscribers will be able to watch all sports events broadcasted on COSMOTE SPORT channels.

According to reliable sources, the agreement had been in the works for several months before the departure of Tsamaz from OTE and the appointment of Kostas Nebis as president and CEO. It reflects the new doctrine of infrastructure and content co-management. The mutual exchange of sports channels, for which both providers spend millions annually on broadcasting rights, is not only a commercial move but also a statement of a significant shift in business strategy for OTE and United Group.

To limit financial losses in a saturated market, BC Partners/United Group and Deutsche Telekom are burying the hatchet in the subscription TV war, transforming from fierce competitors to collaborators through the mutual exchange of sports content initially. This development creates the conditions for a shift in the business model of the television market over the next two years, even for free-to-air channels.

Message and Recipients

The message from the Deutsche Telekom and BC Partners/United Group agreement is aimed at multiple recipients: the holders of TV rights (UEFA, football clubs, etc.) to understand that the era of open wallets due to intense competition among TV providers in Greece is over. Additionally, the two poles of sports content become one (at least commercially and administratively at first). For example, in the case of Super League rights, teams will face a new reality and reassess their bargaining power ahead of the new discussions in 2025 for broadcasting rights.

Moreover, this development creates the conditions for a transformation in the business model of the TV market within the next two years, even for free-to-air channels.

Piracy Issues

In this initial phase, the agreement is win-win for Cosmote and Nova, the dominant groups in Greece’s subscription TV market with a focus on sports content. Despite a tendency to avoid extreme competition and financial bleeding for acquiring TV trophies, intense conflicts did occur. As of the latest available data (March 2024), COSMOTE TV has 688,000 subscribers, while Nova has over 450,000 (with Vodafone nearing 200,000).

The main obstacle, however, has been the widespread piracy in the Greek market. Domestic and foreign networks operate with independent teams, resembling a Hydra, distorting the market and threatening the financial survival of subscription TV providers. Not coincidentally, Greece ranks second in Europe for viewing illegal sports content, according to the EU Intellectual Property Office (EUIPO).

Currently, it is estimated that pirate platforms in Greece (illegal channels, streaming services through illegal devices or the Internet) have 600,000 to 800,000 subscribers, who pay 15-20 euros for all content from COSMOTE TV and EON TV, foreign matches, dubbed movies, and more. Piracy results in annual revenue losses of at least 125 million euros for legal subscription TV providers, while the Greek state loses about 75 million euros annually.

The goal of the collaboration between the two companies is to make illegal subscriptions less attractive by highlighting the legal risks. With a legal subscription at the announced prices, the economic incentive for illegal connections will be eliminated. Even if a portion of those with illegal connections switches to legal subscriptions, it will be a gain for the market stakeholders.

Subscriber Benefits

Starting next month, COSMOTE and Nova subscribers can access all sports channels from both platforms for an additional cost. For instance, COSMOTE TV subscribers can access Nova’s sports content for an additional 3 euros per month on top of the current price of their Full and Sports packages, through both satellite and streaming services.

Similarly, EON TV subscribers can watch COSMOTE TV sports content for an additional fee starting at 1 euro, depending on their chosen package. Nova offers new combined Fiber EON+ packages with Internet speeds from 50 Mbps to 1 Gbps starting at 47 euros per month and new EON+ TV packages at 28 euros per month.

The agreement allows the two companies to offer improved subscription TV packages, including more sports content at attractive prices. The exact cost will depend on the chosen package, Internet connection type, telephony, etc.

Overall, those currently subscribing to both platforms are likely to save costs by choosing a single subscription. It remains to be seen if and when other providers like VODAFONE TV will join this scheme. The commercial agreement primarily targets residential customers and not corporate ones, who have different pricing.

In the coming period, technical issues will also be clarified. For instance, COSMOTE streaming service subscribers will be able to watch up to three simultaneous programs (two of which can be sports) from late August. Satellite service subscribers can continue watching one sports channel via the satellite decoder and one via the streaming service if the streaming add-on is activated.