The news of the union of Intelsat and TVNZ is sure to heap further pressure on their market rivals given that a high percentage of the contracts for the provision of sports broadcast services are now held under the same roof.
The alliance is designed to leverage the strengths of each company by offering a global network of satellite and terrestrial infrastructure, complemented by a portfolio of television broadcast and enterprise services.
Upon final completion of the agreement, the alliance between Intelsat and TVNZ will create a unique combination, under one umbrella, of occasional use satellite provider and television broadcaster.
Specifically, the portfolio of services will offer customers comprehensive choice in global occasional use satellite distribution, as well as access to television production and packaging services. Event management, host broadcast services and on air enhancement products are examples of the expanded range of offerings.
Targeted to serve the news, sport and special event needs of the international television broadcast community, the alliance will leverage the combined assets of both companies to better benefit customers.
"The formation of this alliance will significantly shift the traditional occasional use service business paradigm," explained Sam Fairhall, managing director of TVNZ Satellite Services Ltd.
"The goal is to create a new business model that will deliver to customers a product that significantly exceeds the high-quality and cost-effective solutions we already provide. As a television broadcaster as well as an occasional use services consumer and supplier, TVNZ has first-hand knowledge of what it takes to deliver this added value."
Jon Romm, president of Intelsat's Media & Entertainment business unit, added: "This alliance will present customers with the best of both worlds - the knowledge and expertise of a broadcaster combined with the reliable and flexible network assets of a global satellite provider - in one simple end-to-end solution.
"Intelsat is very committed to adding value to service offerings so that customers are deriving benefits by using our network. This alliance will package virtually every value-add and customer benefit and make it easily accessible. That's what customers want and what we'll deliver."
Two of the biggest players in the sports broadcast services market, Intelsat and TV New Zealand, have formed a strategic alliance - further proof of the sector's continuing consolidation.
