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MMS773 - Assignment on Sports Broadcasting Value Chain

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Deakin Business School

   

MMS773 - Sport Broadcasting (MMS773)

   

Added on  2020-03-04

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In the MMS773 Individual Report, we discuss Sports Broadcasting Value Chain and Vertical Integration, The sports industry in Australia is huge. Australians are avid followers of sports and the most viewed television programs on Australian television are all sporting events. We also explain Broadcast Analysis and Valuation Task, The game that I chose to watch was the Australian Football League (ALF) match of Melbourne vs. Sydney. This report also covered, Sports Consumption Nowadays, Social media are considered a complementary technology that aims to stimulate additional engagement with users.

MMS773 - Assignment on Sports Broadcasting Value Chain

   

Deakin Business School

   

MMS773 - Sport Broadcasting (MMS773)

   Added on 2020-03-04

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MMS773 - Assignment on Sports Broadcasting Value Chain_1
Running Head: ReportContentsPART A: Sport Broadcasting Value Chain and Vertical Integration..............................................3PART B: Broadcast Analysis and Valuation Task..........................................................................7PART C: Sport consumption.........................................................................................................10References......................................................................................................................................142
MMS773 - Assignment on Sports Broadcasting Value Chain_2
Running Head: ReportPART A: Sport Broadcasting Value Chain and Vertical IntegrationThe sports industry in Australia is huge. Australians are avid followers of sports and the most viewed television programs in the Australian television are all sporting events. The variety of content that has flooded the media market in the past few years is enormous. The latest technologies have dramatically changed the way people are receiving the audiovisual content. The barriers to enter and exit the media market are at an all time low. Vertical integration id defined as the expansion of business operations into different levels of the supply chain for the same process. In the broadcasting and media industry, vertical integration can be explained as theownership of the broadcaster and the distributor by the same entity. Broadcasting company is a company providing content broadcasting services and the distributor in the media industry is the provider of content to the consumers. When a business organization is in control of the broadcasting and distribution of content, it is known as vertical integration in the media industry.The sports broadcasting value chain is demonstrated in the image below:[ CITATION HSu13 \l 1033 ]Figure 1: Value chain for media industry3
MMS773 - Assignment on Sports Broadcasting Value Chain_3
Running Head: ReportThe above value chain is the entire path that a sports program has to cover in order to reach the customer. The technologies like Cable, DTH, HITS, IPTV, Live streaming over the internet, etc. have considerably shortened the value chain. With simultaneous production and consumption of the programs and sports events, it has also reduced the value chain to just a few levels. Vertical integration is generally promoted and appreciated as it lowers the cost of broadcasting. It results in higher productivity for the media industry and improves the coordination between the levels ofthe value chain. In this section, the impact of vertical integration in the context of sports broadcasting has been assessed [ CITATION Sua17 \l 1033 ]. There are both advantages and disadvantages of vertical integration. The traditional sports broadcasting methods have observed a sharp decline in the audience. People have greater choices available and have multiple ways in which the sports content reaches them. The cable, broadband, satellite Tv and mobile internet have influenced the media industry. With the content available free of cost over the internet, people are not willing to pay for it. The Australians are enormous consumers of sports events andevent broadcasting. The 1956 Olympics had introduced the television in a majority of Australian homes and the sporting events continue to be the most watched content on the Australian Television. The convergence caused by vertical integration has caused some dramatic changes inthe industry. This has impacted the quality of services being provided, the costs associated with broadcasting, the ease of entry in the market, the barriers to exit, the switching costs that a customer has to bear etc. It majorly reduces the barriers an organization has to overcome to enter a market. It has added uncertainty in the market and made the broadcasting an even more coordinated process [ CITATION Hum17 \l 1033 ].4
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