Athletics and Television...2019/01/27 · • Online advertising restrictions or prohibition...
Transcript of Athletics and Television...2019/01/27 · • Online advertising restrictions or prohibition...
Athletics and Television
Ingredients for Successful Partnerships
Index
1. About MnS Ignite
2. European Television Market
3. European TV Sports Market
4. Position of Athletics
5. Ingredients for Successful Partnerships
MnS IGNITE Athletics & Television
About MnS Ignite
Activities
Sports Project Development • Events, Programs, Platforms
Consultancy • Media Rights Exploitation
• Commercial Strategies
• Competition Optimisation
• Production Aspects
Implementation
Network
Customers
• Media Companies
• Sports Federations
• Intermediaries
Specialist Network
• TV Production & Digital Media
• Sports Marketing
• Event Management
There are 3 Types of Organisations:
Those who make things happen.
Those who watch things happen.
Those who wonder what happened.
Anonymous
MnS IGNITE Athlethics & Television
European TV Market Broadcaster Revenue Trend 2011-2015
Slow Market Growth (1.9%)
MnS
IGNITE Athletics & Television
20.9 21.3 21.7 22.1 22.6
35.2 37.6
40.3 41.7 42.7
34.5 36.5
38.3 39.3 41
0
5
10
15
20
25
30
35
40
45
2011 2012 2013 2014 2015
Public Funding
Advertising
Subscription
SOURCE: IDATE WORLD TELEVISION REPORT 2011
European TV Market Shift of Revenue Streams
Stagnating PSB Revenue
Volatile Advertising Revenue • Growth until crisis 2008
• Slow recovery (some regions only)
Pay TV dominates • Pay TV/PPV
• Cable retransmission fees
• Online revenue
MnS IGNITE Athletics & Television
37
40
24
European TV Revenue 2013 (%)
Advertising
Pay TV
Public Funding
European TV Market Advertising: Stagnation in Traditionnal Segments
MnS IGNITE Athletics & Television
European TV Market More Restrictions for Public Service Broadcasters
Budget Restrictions • Budget Cuts (European debt crisis) (e.g. GRE & POR)
• Stagnating or declining license fees (e.g GBR & GER)
• Uncertain funding through new advertising or telecom taxes (e.g FRA & ESP)
Advertising Restrictions • Prohibition of advertising (e.g ESP, GBR)
• Less commercial airtime and fewer advertising windows (e.g FRA, GER)
• Online advertising restrictions or prohibition
Restrictions of Program Offerings • Closure of channels
• Program restrictions (e.g.: no sport)
• No expansion of offerings (channels, programs)
• Limitations for online offerings
MnS IGNITE Athletics & Television
European TV Market Fragmentation
8000 channels in Europe!
Over 400 Sports Channels • Pay TV with premium sports
• FTA channels for minority sports
• Special case Eurosport
Massive Growth of HD Channels • Attractive network distribution fees
• Higher ARPU for Bouquets
Rapidly growing Online Offering • Media Enterprises
• New Media Giants (YouTube etc)
• Sports Federations
MnS IGNITE Athletics & Television
425 419
318 281
252 251 250 224 223
121
050
100150200250300350400450
Quelle: Europäische Audiovisuelle Informationsstelle / MAVISE
0
100
200
300
400
500
600
700
800
900
1000
2009 2010 2011 2012
Other
Adult
Kultur/International
Children
Music
Lifestyle/Travel
Entertainment
Fiction
Documentary
Generalist
Movies
Sport
274
612
941
423
Increase of HD Services by Genre (2009-2012)
Quelle: Europäische Audiovisuelle Informationsstelle / MAVISE
European TV Market Fragmentation
Declining Market Shares since 80’s … and trend Continues
MnS IGNITE Athletics & Television
0
5
10
15
20
25
2005 2006 2007 2008 2009 2010 2011
ARD
ZDF
BBC 1
BBC 2
France 2
France 3
RAI 1
RAI 2
RAI 3
TVE 1
TVE 2
European TV Market Fragmentation - Examples
United Kingdom
• Grosser Verlust von Marktanteilen
• Durch breite Senderpalette gestoppt
Others:
Turkey 3 % Market Leader: Kanal D (14.8 %)
Greece 3.5 % Market Leader Mega (20.8 %)
Ukraine 2.2 % Market Leader Inter (19.2 %)
Marginalised Public Service Broadcasters !
MnS IGNITE Athletics & Television
European TV Market Fragmentation creates Pressure
Defending of Remaining Market Shares • High market shares through premium sport
• Reduction of sport with lower ratings
• Less programme changes for one-off sport events
Political Pressure on Public Service Broadcasters • Many different sports – show variety of society
• Limitation of sports right expenditure
• Maintain relevance of programmes (market shares)
Changing Competition for Sports Rights • Growing prices for premium sports events
• Leagues and series dominate pay TV
• Often insufficient market shares for niche sports
MnS IGNITE Athletics & Television
European TV Market Positionning of Broadcasters
MnS IGNITE Athletics & Television
•Other Events
•Highlights (Leagues, Premium Events)
•Key national & int. leagues
•Premium int. events
•International Premium Events
•Highlights Key Leagues
•Key National Events
• No sport or
•Few premium events
Commercial Broadcasters
Public Broadcasters
Thematic Channels
Online Platforms
Pay Broadcasters
European TV Sports Market Production Becomes Cost
• Wide variation of prices and quality
• Production resources increasingly outsourced – Commercial Broadcasters and Pay TV Channels have no own production resources
– Public Channels are reducing/closing own production resources
• Competitive pricing on open market – Broadcasters often operate with expensive overhead cost
– Sometimes ineffective procurement procedures
• Strong Impact on Athletics – Athletics Productions are expensive
– Athletics Events become more expensive for Public Broadcasters
– Liability risks for sport
MnS IGNITE
European TV Market New Competitors
Telecom Operators • Need to stop telco price erosion
Cable Operators • Need USP in Internet subscription sales
Hardware Manufacturers • Exclusive sports content
as sales argument
Online Platforms • Direct media market access
• Niche target group access
• Mobility
• Wide offer variety of offers
MnS IGNITE Athletics & Television
European TV Market New Competitiors
Online Media
• Small market, rapidly growing
• Uncertain Business Models
• New Strong Competitiors – Betting Industry
– Google/You Tube
– Microsoft
• Growing Rights Prices
Who is Future Aggregator?
MnS IGNITE Athletics & Sports
European TV Sports Market Development Total Expenditure EMEA
MnS IGNITE Athletics & Television
0
2'000
4'000
6'000
8'000
10'000
12'000
14'000
16'000
2011 2012 2013 2014 2015
All Events Ongoing EventsSource:PriceWaterhouseCoopers LLP
Position of Athletics Revenue Distribution
MnS IGNITE Athletics & Television
0%
20%
40%
60%
80%
100%
TV Sports Market 2014: 12.7 bn USDRegular Events Only
International Football
National Football Leagues
Motor Sport
Other Sports Athletics: 0.35 %
Position of Athletics Distribution Development
0
500
1000
1500
2000
2500
3000
3500
4000
4500
FIFA World Cup UEFA Euro
Premier League Olympic Games
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Position of Athletics Distribution Development
0
200
400
600
800
1000
1200
1990 1992 1996 2000 2004 2008 2012 2016
Olympic Games Athletics EAA
Swimming Gymnastics
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Position of Athletics Average Market Shares
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Positon of Athletics Development Perspectives
• Football further builds position
• Many other Sports structure their Events
• Funding Problems for smaller events and sports
• Increasing dependence from Olympic Games
GROWING PRESSURE ON ATHLETICS FROM ALL SIDES
MnS IGNITE
Position of Athletics Key Questions
Is Athletics a small big sport? • Long term product development strategy
• Comprehensive system covering entire sport
• Sophisticated exploitation systems
• Challenging market shares of big sports
Is Athethics a big small sport? • Reactive: living from media rights contract to next
• Adaptation on pressure from outside
• Driven by tradition and politics
• Trying to defend share against small sports
MnS IGNITE
Ingredients for TV Partnerships Careful Evaluation of Needs
What do sports have to deliver for Television? • Relevance of Events for Society
• Sufficient market shares
• Sufficient advertising revenue
• Generate subscriber interest
Competitive Advantages!
MnS IGNITE
Ingredient for TV Partnerships Careful Evaluation of Needs
Why do you need television? • Exposure? Revenue? Profile?
• Other?
For which Events? • All? Season highlights? Specific Events?
What kind of television do you need? • Free-to-air? Pay TV? Online?
• Live? Highlights? News? Background stories? Athlete profiling?
Clear definition of challenging but realistic objectives essential !
Good partnerships create benefits for both parties!
MnS IGNITE
Ingredients for TV Partnership Coordinated Long Term Development
Consider Sport as Product
• Constant Market Monitoring
• Long Term Strategy
• Build
• Brand
• Promote
• Distribute
Analyse & Develop Potential
Ingredients for TV Partnerships Build on Traditional Strenghts
• Strong heritage and Movement
• Athletics is «The» classic sport
• Everybody has tried it
• One of few truly universal sports
• Still Strongest Olympic Sport
MnS IGNITE
Ingredients for TV Partnerships Adress Weaknesses
• Lack of innovation in championships
• Too many meetings without sufficient connections and coherence
• Athletics season: weak story – peak in middle of season
• Too long and slow event for internet age
• Too little direct competitions between athletes
• Weak competition dramaturgy & lack of stars
• Is athletics still perceived as «cool»?
MnS IGNITE
Ingredients for TV Partnerships Top Down – Strenghten Top Events
• Improved ompetition system and Dramaturgy
• Pyramid structure
• Obvious connection between events
• Use qualification
• Think about Europe
• Aggregation
• Keep it all Simple and Clear!
Flagship Events are key for awareness of sport !
MnS IGNITE
Ingredients for TV Partnership Top Down – Example European Sports Championships
Ingredients for TV Partnerships Top Down – Use Power of Aggregation
Rejecters
Main Eventers Free to Air - Prime
Time
General Sports Fans Free to Air - Channel 1
Free to Air - Channel 2 Fans of Specific Sport
Thematic Sports Channel Dedicated Fans of Specific Sport
Ingredients for TV Partnerships Top Down – Use Power of Aggregation
MnS IGNITE
Ingredients for TV Partnerships Strong Top Series & Meaningful Competitions
• Real competition instead of individual results – Create alternatives to World Records
– Athlete participation in ALL events of competition
– Ranking lists?
– Fastest man/women on earth
• Right number of Events – Less is more
• Each Event needs to be relevant – Title
– Qualification/Relegation
– Duel
MnS IGNITE
Ingredients for TV Partnerships Dramaturgy
• Stars
• Story
• Set the right scene – Full stadium
• Emotions
• Trilling competition with proper build up
• One event after the other in decisive phase
• Short, fast: only as long as you can keep tension!
MnS IGNITE
Ingredients for TV Partnerships Bottom up - Reconnect to basis
Athletics still manages strong Mass Activation • Individual practising of sport
• Mass race participation
However: • increasingly outside traditiona Structures
Motivations? - Not world records
- Competitions against one self
- Wish to reach limits
- Social experienece
Large customer group
MnS IGNITE
Ingredients for TV Partnerships Bottom up - Create Experiences and Social Networks
• Own sport experience
• Event anticipation and/or experience
• Viewer Experience
• Interlink
• Create Social Media Communities
MnS IGNITE
Ingredients for TV Partnerships
Efficient Use of Resources
• TV Production Resources – Adapt production to exposure opportunities
• Promotion Platforms – Expose events where they can be sucessful
– Low ratings on big channels are counter productive
– Make best use of media attention
MnS IGNITE
Massive Dormant Potential !
MnS IGNITE
Start Now! Dare to Try !
And Remember:
• Athletics competes in a difficult market – Slow growth
– Strong competition
• TV Spectators want to be entertained !
• The finger on the remote does not care about
– How you did it in the past
– Sports Politics
– Complicated Regulations
– Calendar Constraints
MnS IGNITE