MMS773 - Sport Broadcasting Assignment
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Deakin University
MMS773 - Sport Broadcasting (MMS773)
Added on 2019-11-14
MMS773 - Sport Broadcasting Assignment
Deakin University
MMS773 - Sport Broadcasting (MMS773)
Added on 2019-11-14
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SPORT BROADCASTING 1New broadcast models – Assessing the potential for non-corporate or smaller sportsStudent’s NameCourse IDUniversityDate
SPORT BROADCASTING 2In the Australian sports industry, the broadcasting and media businesses associated with the sports and events are highly productive. In order to increase the potential business benefits ofthe sports broadcasting, new broadcast models or formats have been applied introducing the sponsored content (Blair, 2012). Previously, the FTA model was only used by the broadcasters that intend to sell the audiences to the advertisers. But, the introduction of the Pay TV model has changed the revenue structure of the Australian Sports broadcasting sector by selling the programs to the viewers. In the broadcasting media sector, latest sports broadcast model encourages global brands to pay media organisations so that the products of the manufacturers will be introduced to the target audience in a presented manner. Hence, the audiences are sold to the advertisers. Precisely, sports broadcasting sector creates sponsored content for the brands promoting the services and products (McClean, 2008). In the same manner, the broadcasters alsosell the live streaming of the sports events to the consumers in order to earn revenue. Thus, the broadcasters generate massive revenue using the expensive media product i.e. sports.New broadcast models have been widely supported by expensive broadcasting equipmentand modern technology. As a result of the scenario, sports production has become an expensive endeavour, to say the least. Additionally, the introduction of new technology such as internet andmultimedia devices has helped the sports broadcasters to use new broadcasting models such as Internet Protocol Television (IPTV) and Over the Top (OTT) platforms (Roebuck, 2012). Hence,a change in the consumer behaviour can be evident in the recent years in the Sport Broadcasting sector. In the meanwhile, the question is whether the new sport broadcast models are helping the non-corporate or smaller sports in Australia. Decisively, commercialisation of sports broadcasting has both the positive and negative impact on sports and sportsmen. Although the broadcasting industry has been largely benefited by these business models, the overall value of
SPORT BROADCASTING 3sport and events is said to be declined in the recent years (Humphreys & Howard, 2016). The wider impact of the new sports broadcasting models has been analysed throughout the study. The primary objective of the research is to understand the implications of new broadcasting model over the potential growth opportunities of non-corporate and smaller sports in Australia. A decline in the sports audiences has been evident during the introductory phase of Pay TV broadcasting format. The change of the concept from FTA to PTV has gradually made sports on television expensive for the audiences. Hence, a tremendous decline in the sports view can be seen during 1995 and 2005. However, with the development of technology and new internet based broadcasting model, the audiences for sports broadcast has gradually increased in the recent years. The primary reason for the increase in the number of subscribers or viewers is the less expensive sports broadcasting models over the IPTV and OTT platforms. The new broadcast models have made it easier for the broadcasting organisations to increase the number of potential customers and seek growth in demand for non-corporate and smaller sports in the Australian market. For instance, social media and other internet based broadcasting platforms have provided new scopes for non-corporate and smaller sports to get broadcasted to the audiences that increase the demand for such sports and create potential growthopportunities for the non-commercial sports in the country. However, the increase in the demand for broadcasting of major sporting events have put non-corporate and smaller sports aside over the PTV platform with a potential for low revenue and poor focus of the audiences. Hence, the essay focuses on discussing the role of new broadcast models in the development of non-corporate and smaller sports in Australia. Moreover, the paper evaluates the importance of new sports broadcasting rights in accordance to the new broadcast models and the challenges faced bythe broadcasters in order to achieve these rights. Furthermore, the research aims to discuss the
SPORT BROADCASTING 4positive and negative impacts of new broadcasting models on the potential growth opportunities of non-corporate and smaller sports in the nation. Finally, the study presents proper recommendations for the Australian Sports Broadcasting sector to support the growth of non-corporate and smaller sports using new broadcast models.Sports Broadcasting model involves sports organisations, broadcasting organisations and media partners contributing towards developing an industry. In the meanwhile, sports organisations have engaged with a number of sports broadcasters and media organisations to get the telecast rights of major sports events (Blair, 2012). In terms of business, media organisations have to pay a massive amount of money to receive the exclusive broadcasting rights of the live mega sporting events. On the other hand, the brands are paying to the media to promote their products creating sponsored content. Furthermore, the revenue earned by the government through the broadcasting of non-corporate and smaller sports helps the authorised bodies to workfor the welfare of sports in the region. In this way, the entire sports broadcasting model operates in a cyclical order. Evidently, most of the leading sports organisations are largely benefited by the broadcasting rights of live sporting events (McClean, 2008). In order to fund the mega sporting events, the sale of telecast and media rights of the sports events have become the leading revenue source. Meanwhile, the new broadcasting model or platform helps sports organisation to reinvest the accumulated fund earned as royalties to the infrastructural and technical development.Technology advancement has contributed on a large basis to restructure the broadcasting industry around the globe. In a study review, Turner (2012) identifies how the modern technological development has transformed the broadcasting environment by introducing latest delivery models effective for both the commercial leaders and the consumers. According to the
SPORT BROADCASTING 5article review, a number of broadcasting regulations implemented by the Federal Government of Australia and existing league have complicated the sports broadcasting scenario in the target market. In the meanwhile, broadcasting regulations implemented by the government have been there to protect the rights and interest of the public as well as participating organisations associated with the industry while the league-based regulations have made an impact on the profits distribution of the sports companies (Turner, 2012). In both the cases, the sports broadcasting models are directed to make a positive influence on the sports and events. The latestsports broadcasting models have included a number of restrictions and regulations imposed by the league, the federal government, and broadcasting organisations that may affect the value and quality of professional sports. Evidently, the introduction of emerging technologies and existing public, as well as private regulations, must be identified by the professional sports organisations and broadcasters to minimise the adverse effect of the same on sports. With development of technology and increase in demand for television over the internet platform, two major broadcasting models have emerged in the recent times named as IPTV and OTT (Gratton et al., 2013). The internet platform differs from the cable and satellite broadcastingnetworks through the offering of content by using the same client server models that delivers website contents, emails and other internet-based services (Teitelbaum, 2009). The full form of IP is “Internet Protocol”, which is the language used by the internet service providers to transfer packets of data between the internet network and the computers attached to it (Dietl & Hasan, 2007). In both the cases of IPTV and OTT, the consumers requests and receives the broadcastingcontents via internet protocol. The basic differences between the OTT and IPTV streaming is that OTT offers the broadcasting using an unmanaged network as web browsing and email,
SPORT BROADCASTING 6whereas IPTV uses a dedicated private network to deliver the broadcasting services in a consistent manner (Dindaroğlu, 2017). Moreover, the completion for sports broadcasting rights has gradually increased in the recent times with the addition of telecom operators in the race of these rights (Dietl & Hasan, 2007). The broadcasting models of IPTV and OTT are totally based on internet platform that reduces the expenses of the consumers for watching a particular sports event and increases the demand for sports broadcast over the internet in the Australian market (Humphreys & Howard, 2016). By considering the figure presented in Appendix 1, it can be seen that the usage of internet based broadcasting formats have increased by a huge amount between 2013 and 2016. For instance, the use of Smart TV or internet TV has increased from 10 percent to 35 percent. Furthermore, the use of Smart Phone has increased from 48 percent to 81 percent. Additionally, an increase in the use of tablet and internet has also been evident in the last few years by 34 percent and 3 percent respectively. Hence, the changing use behaviour of the consumers in termsof internet based platforms have provided a potential growth opportunities for the sports broadcasting organisations by using the IPTV and OTT media formats. In another review of the literature, Lee (2007) described the copyright-related issues and challenges to be faced by broadcasters in sports telecast industry. Under the Copyright Law, sports organisations, broadcasters, and media organisations need to clear out how broadcasting right acts. Moreover, terms and transfer of broadcasting rights to the television and media granted by the sports organisations must be identified specifically (Blumenthal & Goodenough, 2006). For instance, the right to grant live broadcasting is widely different to that of media rights.In case of the latest broadcasting model, the broadcasting rights can be identified as the determinant of the media rights. Also, the technological revolution has ensured that TV
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