The Seven West Media Ltd (ASX: SWM) share price is marching higher on this first day of trading in 2023.
Shares in the ASX-listed media company are up 3.8% in morning trade at 41 cents per share.
This comes despite the broader market facing some headwinds today, with the All Ordinaries Index (ASX: XAO) down 1.0% at this same time.
So, why is the Seven West Media share price defying the sell-off?
What's piquing ASX investor interest?
The Seven West Media share price looks to be getting a boost after the company announced a new agreement with Cricket Australia.
The new, seven-year deal extends Seven West's media rights from the 2024-25 season to the 2030-31 season.
The company said that its 7plus channel will become the "live and free home of cricket", providing a digital package of rights atop the broadcast on its Seven Network. Seven West Media has never held digital rights to cricket before this agreement.
Commencing in 2024, Seven West Media will see a 13% decrease in its media rights fees from its current agreement. The new agreement will see the media company pay $65 million in cricket media rights fees a year. SWM said that it has achieved cash savings from rights reduction and production savings of more than $50 million over the term compared to the existing rights deal.
Cricket Australia has said it will reduce the number of Big Bash League (BBL) games to create a shorter tournament that will run for five to six weeks.
Seven West and Cricket Australia had been involved in a legal stoush over prior contract issues. With the new agreement in place, both sides have agreed to drop the court proceedings, with each paying its own costs.
Commenting on the agreement that looks to be sending the Seven West Media share price higher today, CEO James Warburton, said:
We are delighted to extend our partnership with Cricket Australia until 2030-31. A comprehensive package of digital rights to the cricket for 7plus will ensure that for the first time, our viewers will be able to access cricket, live and free, in a way that suits them.
Our combined broadcast and digital rights for both cricket and the AFL means Seven and 7plus will be the home of sport all year round… We look forward to working with Cricket Australia to grow Test cricket, women's internationals and the BBL and WBBL in the years ahead.
Seven West Media share price snapshot
As you can see in the below chart, the Seven West Media share price came under pressure in 2022, falling almost 35%. With that year behind us, we imagine investors will be cheering a positive start to the new year.
