Lesson 1.3 Media Impact on Industry Growth What is media? Media refers to a means of communicating a message to large numbers of people 47 In the earliest days of sports, fans have to wait to read the paper to the game “see” It was not until the 1936 Olympics (broadcast by ABC radio) that Americans were truly exposed to the amazing talents of Jesse Owens, one of America’s greatest athletes of all time Now, fans can follow athlete performances live through television, Internet as well getting information through national papers, local papers, magazines, and industry specific journals Media rights Media rights (or broadcast rights) are fees paid by broadcast companies to sports or entertainment properties for the opportunity to provide live coverage of the property’s games and events on television, the radio or the Internet Many media rights deals provide exclusive coverage rights Because of the NFL’s deal with DirecTV, no other television network can broadcast out of market games in their respective geographic markets. In other words, if you are a Green Bay Packers fan living in Virginia, you would need to order DirecTV for the opportunity to watch Packers games at your home each week. In 2014, DirecTV renewed their deal with the NFL for another eight years at a average of $1.5 billion per year years after Comcast (a cable television provider who also owns a regional sports network) signed a deal with the Portland Trail Blazers for exclusive TV distribution rights, fans still cannot watch Blazers games if they are DirecTV or Dish subscribers Click for an update on the story from oregonlive.com. rights contracts are not reserved for national broadcasting companies as sports franchises work to maximize revenues by selling regional broadcasting rights Time Warner paid a reported $3 billion for exclusive rights to games in the L.A. market for the next twenty years, starting with the 2012-13 season 48 Rights fees are growing at a rapid rate Media rights fees for the Rose Bowl (per year) were $2 million in 1974. By 2015, they are expected command in excess of $80 million per year. 49 Why are media rights important to sports and entertainment properties?
Lesson 1.3 Media Impact on Industry Growth What is media? Media refers to a means of communicating a message to large numbers of people 47 In the earliest days of sports, fans have to wait to read the paper to “see” the game It was not until the 1936 Olympics (broadcast by ABC radio) that Americans were truly exposed to the amazing talents of Jesse Owens, one of America’s greatest athletes of all time Now, fans can follow athlete performances live through television, Internet as well getting information through national papers, local papers, magazines, and industry specific journals Media rights Media rights (or broadcast rights) are fees paid by broadcast companies to sports or entertainment properties for the opportunity to provide live coverage of the property’s games and events on television, the radio or the Internet Many media rights deals provide exclusive coverage rights Because of the NFL’s deal with DirecTV, no other television network can broadcast out of market games in their respective geographic markets. In other words, if you are a Green Bay Packers fan living in Virginia, you would need to order DirecTV for the opportunity to watch Packers games at your home each week. In 2014, DirecTV renewed their deal with the NFL for another eight years at a average of $1.5 billion per year years after Comcast (a cable television provider who also owns a regional sports network) signed a deal with the Portland Trail Blazers for exclusive TV distribution rights, fans still cannot watch Blazers games if they are DirecTV or Dish subscribers Click for an update on the story from oregonlive.com. rights contracts are not reserved for national broadcasting companies as sports franchises work to maximize revenues by selling regional broadcasting rights Time Warner paid a reported $3 billion for exclusive rights to games in the L.A. market for the next twenty years, starting with the 2012-13 season 48 Rights fees are growing at a rapid rate Media rights fees for the Rose Bowl (per year) were $2 million in 1974. By 2015, they are expected command in excess of $80 million per year. 49 Why are media rights important to sports and entertainment properties?
Unit%201%20-%20Outline%20-%20History%20&%20Evolution%20of%20SEM(5).docx