* Telekom to continue to show Bundesliga on internet TV
* Telekom customers later have to switch to Sky contracts
* Deal starts from 2013/14 season, runs through mid-2017
* No financial details disclosed
* Sky shares at 3.5-year high
FRANKFURT, Jan 4 Pay-TV operator Sky Deutschland
has agreed a deal to make available top-flight German
soccer matches to Deutsche Telekom clients, tapping
into the telecom operator's subscriber base.
Deutsche Telekom has been showing Bundesliga matches on its
Entertain internet TV platform but lost the broadcast rights to
Sky in an auction last year.
The agreement announced on Friday, gives Sky access to
Entertain's 1.9 million customers and will force subscribers to
the platform's Bundesliga package - called "Liga Total" - to
switch to Sky contracts from the 2014/15 season.
Sky expects a "good portion" of Telekom's 190,000 "Liga
Total" subscribers to sign new contracts by the end of the
2013/14 season, Sky Chief Executive Brian Sullivan told
journalists during a conference call.
Sky currently has about 3.2 million subscribers.
Shares in Sky Deutschland, part-owned by Rupert Murdoch's
News Corp, rose to a 3.5-year high on news of the deal
and were up 1.9 percent at 4.44 euros by 1134 GMT.
"Sky has improved its market position significantly.
Especially the possible cross-selling of the Sport (pay-TV
subscription) package including Champions League will be
earnings accretive," DZ Bank analyst Harald Heider said.
Telekom, whose shares rose 0.5 percent to 8.80 euros, did
not say how much it was paying Sky.
The loss-making pay-TV firm is shelling out a total of 485.7
million euros ($636 million) per season for cable, satellite and
internet TV rights together.
Sullivan said the deal with Telekom would have no impact on
Sky's outlook for this year, which sees the company returning to
core operating profit.
Germany's Bundesliga matches draw an average television
audience of about 18 million people, only about a sixth of the
U.S. Super Bowl's viewership but still representing almost a
quarter of soccer-crazy Germany's population.
The agreement between Telekom and Sky will run until
mid-2017 and also allows Telekom customers to subscribe to Sky's
other packages offering further sport, film and high-definition