Racecourse Media Group pays out £80 million in 2015 broadcast fees

Racecourse Media Group (RMG) has detailed that it has paid its 34 syndicated UK racetracks £80 million in media rights for 2015.

The figure represents an 8% increase on 2014 media pay-outs generated from licence fees of racing broadcast owners;

• Turf TV – betting shop service provider to Licensed Betting Offices (LBOs)
• Racing UK (multi-platform subscription channel)
• Digital (Bet2View streams)
• GBI Racing (international TV betting and pictures service)
• International (non-betting TV sales overseas)
• Terrestrial TV (Channel 4 Racing)
• Racecourse Data Company (licensing of Pre-Race Data)

Presenting its figures, RMG governance detailed the following 2015 highlights

• Racecourse Media Group (£29.2m) + Turf TV (£51m) paid licence fees totalling £80.2m to 34 racecourses
• 66.3 million race video-streams generated via bet to view (from 51.8m in 2014)
• GBI Racing’s licence fee payments to RMG courses totalled £7.8m (from £7.6m). Israel was a notable success story given there was previously no racing history
• International TV non-betting revenues increased to £6.3m (from £3.6m)
• RMG licensed its courses’ LBO rights to SIS from 2018 – to reduce leakage (inefficiencies) in the current system
• RMG led negotiations on keenly-contested terrestrial TV tender, won by ITV. The four-year deal will provide record revenues, a wonderful shop window and promotional opportunities

Richard FitzGerald, RMG CEO, commented on broadcast payments

“The combined 2016 budgets for RMG and AMRAC will improve on the £80m in total licence fees delivered in 2015 and we can realistically project more than £100m in licence fees for 2019 and beyond.

“Enhanced connectivity through new technologies will provide further opportunities and can only improve the way we cover and consume the sport. Only recently we launched Racing UK HD which offers stunning picture quality and gives us the platform to showcase the sport in finer detail than ever before.

“Earlier this month, RMG introduced the Going to Post streaming innovation and last month we successfully completed the production and distribution of the 2015-16 racing season from Meydan, culminating with the compelling output from the $30m Dubai World Cup fixture, which reached 350m individuals. Our ability to innovate and harness developing technologies can only add to the attractiveness of the sport for consumers.

“The racing and betting landscape is going through a transformation as the industry re-shapes itself. I am pleased to report that RMG is well-placed to benefit from the changes and enables the racecourses to plan for the future with certainty.”