Greenemodule5olympics
Escalating sports rights fees
Richard Greene
International 640
Professor Buzzell
December 21, 2014
Escalating sports rights fees The days of the Olympics being related to sports amateurism died the moment television and thus its corporate advertisers got involved with the international competition. Sports aren 't just leisure hobbies anymore, they are big business. The case study “Swifter, Higher, Stronger, Dearer” hit the nail on the head with its analysis that television contracts will not only continue to escalate, but will continue to drive the sports landscape (2013). Although the Olympics will be no different they do offer a different type of challenge from a marketing perspective. The Olympics are branded as an event that brings the world together and that can be tarnished if access to watching the events are limited because of the rising broadcast rights. Because of this a highest bidder wins mentality may not be the most beneficial relationship for the International Olympic Committee and broadcasters to partake in. Although it doesn 't seem that has turned out to be the case. One point missed by the authors is another factor that will continue to escalate broadcast rights fees – that 's the continued growth of digital video recorders. The use of DVRs has made the live aspect appeal of sports even greater for advertisers. Commercials aren 't being skipped over as the ones aired in shows consumers watch on their DVRs. Sports gives advertisers the captive television audience they have spent decades learning how to market to. It 's high-demand content that isn 't available on digital only platforms such as Netflix (Spangler, 2013). The Olympics are no exception and perhaps they 're even more. Media companies are now using sports to cross the gap from over-the-air and cable to Internet ventures. For the 2014 Winter Olympics, NBC used the event to roll out “new platforms, new programs and new talent across its apps, the Web and its family of
Richard Greene
International 640
Professor Buzzell
December 21, 2014
Escalating sports rights fees The days of the Olympics being related to sports amateurism died the moment television and thus its corporate advertisers got involved with the international competition. Sports aren 't just leisure hobbies anymore, they are big business. The case study “Swifter, Higher, Stronger, Dearer” hit the nail on the head with its analysis that television contracts will not only continue to escalate, but will continue to drive the sports landscape (2013). Although the Olympics will be no different they do offer a different type of challenge from a marketing perspective. The Olympics are branded as an event that brings the world together and that can be tarnished if access to watching the events are limited because of the rising broadcast rights. Because of this a highest bidder wins mentality may not be the most beneficial relationship for the International Olympic Committee and broadcasters to partake in. Although it doesn 't seem that has turned out to be the case. One point missed by the authors is another factor that will continue to escalate broadcast rights fees – that 's the continued growth of digital video recorders. The use of DVRs has made the live aspect appeal of sports even greater for advertisers. Commercials aren 't being skipped over as the ones aired in shows consumers watch on their DVRs. Sports gives advertisers the captive television audience they have spent decades learning how to market to. It 's high-demand content that isn 't available on digital only platforms such as Netflix (Spangler, 2013). The Olympics are no exception and perhaps they 're even more. Media companies are now using sports to cross the gap from over-the-air and cable to Internet ventures. For the 2014 Winter Olympics, NBC used the event to roll out “new platforms, new programs and new talent across its apps, the Web and its family of
References: Associated Press. (2009, February 18). IOC awards European broadcast rights to SPORTFIVE. Chin, J. (2014, July 8). Yes, Beijing is a Finalist for the 2022 Winter Olympics. What Are Its Chances? The Wall Street Journal Powers, J. (2013, June 25). Brazilian protests concern Olympic Committee. The Boston Globe. Retrieved from http://www.bostonglobe.com/sports/2013/06/24/rio-janeiro-prepares-for-olympics-