The megadeal agreed by Sky comes as global sports rights auctions reach record levels.

[DaLveN @CSBD]

The global value of sports rights hit $49.5 billion in 2018, up from $36.2b five years ago, according to Sports Business Consulting. Sports rights are forecast to be worth $52.2b by 2021, the analysts say.

Why are broadcasters paying huge sums for sport? How do they make money from their content? Are major players more focused on bringing in more advertising income, or building their subscriber numbers? And will broadcasters struggle to turn a profit as they pay ever-higher prices?

While New Zealand is a small market on a global scale, the record price tag for rugby rights follows a trend seen across the globe. Po[CENSORED]r sports rights are in massive demand, with an ever-increasing pool of interested bidders.

Local streaming companies like Spark Sport have entered the fray, while tech giants Amazon and Facebook have begun to show an interest in international markets.

 In the UK, broadcasters Sky (not related to Sky NZ) and BT paid £4.64b, or roughly NZ$9.4b, for English Premier League Football rights for three years. Amazon Prime bought UK rights to a further package of fixtures for an undisclosed sum, and international rights have increased significantly in value over the past five years.Broadcasters view live sports as a key way of holding on to customers, bringing in advertising revenue, and encouraging new subscriptions."Broadcasters pay heavily for sport because it is the best live, unscripted drama they can get," says Dan Jones, head of the Sports Business Group at global advisory firm Deloitte. "It is best consumed live, and hence is appointment-to-view television, and it generates a buzz."Sport remains the perfect product in an ever-expanding world of content, Jones says.