Television & Ticket Sales

Why are broadcasting agreements important in sport?

They are a major source of revenue for teams and leagues.

Why have broadcasting agreements become more valuable in recent years?

Increased competition from streaming services and the unique value of live sports have driven rights fees higher.

What is appointment viewing?

Watching a program live at its scheduled broadcast time rather than on demand.

Why are sports considered one of the last forms of appointment viewing?

Because the excitement and uncertainty of live sports are best experienced in real time.

What is a television network?

• An organization that broadcasts sports through cable, satellite, or over-the-air signals.

• Remain the dominant platform for live sports coverage

What is streaming?

• The delivery of sports content over the internet, allowing viewers to watch live or on demand.

• Ex. Netflix, Amazon Prime

• Many leagues have launched their own streaming service which provide fans a cost-effective option and some flexibility in viewing live sporting events

What is an advantage and disadvantage of television networks?

• Established audiences, reliable advertising revenue, and high-quality production.

• They may struggle to reach younger, digitally focused audiences.

What is an advantage and disadvantage of streaming services?

• They are flexible, interactive, and accessible globally.

• They may alienate fans who prefer traditional television viewing.

Why is it important to balance these two services?

Balancing these considerations is vital to optimize the reach of the broadcast, while creating both short-term and long-term financial viability.

What is a regional telecast?

• A broadcast that is shown only within a specific geographic region.

• Its primary purpose is to serve local fans and provide coverage of local teams.

Approximately what percentage of a team's games are shown only on regional telecasts?

• About 80%.

• For example, a fan from Milwaukee may not care about a game between the Los Angeles Dodgers and the Colorado Rockies; they want to watch Brewers games so they can cheer for their local team.

Why have regional telecasts struggled in recent years?

• Because of cord cutting.

• The practice of cancelling traditional cable or satellite subscriptions in favour of streaming services.

• Cord cutting is a problem for regional telecasts as fewer cable subscribers means less subscription revenue for regional networks.

What is a national telecast?

• A broadcast shown across an entire country's television market.

• Used to increase the popularity of the sport and reach a broad audience.

What types of games are commonly selected for national telecasts?

• Major events, rivalries, and marquee matchups.

• Ex. Olympics

Why are national telecasts valuable?

They generate large advertising revenues and media rights fees.

What is a television rating?

• The percentage of potential viewers or households watching a program out of the total potential audience.

• The ratings are important because they help networks sell advertising space and evaluate program popularity.

• For instance, streaming platforms like Netflix or Amazon Prime often utilize sports telecasts to attract new subscribers to their services

What is network exclusivity?

A broadcasting arrangement where certain networks have exclusive rights to show sporting events.

What is one advantage and disadvantage of exclusivity?

• It increases the value of broadcast rights and generates more revenue.

• Fans may struggle to know where games are being shown.

  • Sports managers must balance this level of fragmentation as it allows for greater revenues, but having consistency in the broadcasts can produce greater viewership because fans know the game will be televised on the same channel, at the same time, with the same commentators throughout the season

What is cannibalization in sports broadcasting?

When multiple platforms compete for the same audience, reducing the value of each broadcast.

What are the two major cannibalization concerns discussed in the lesson?

• Multiple broadcasting relationships competing for viewers.

• Telecasts reducing attendance at live events.

Why can having too many broadcasters be problematic?

Viewership becomes fragmented across platforms.

What is a blackout? Why do leagues use them?

• A restriction that prevents certain audiences from viewing a telecast.

• To protect exclusive broadcasting agreements and encourage viewers to watch designated broadcasts.

Why might an NHL fan be unable to watch their local team on a national broadcast?

Because the game may be blacked out to protect regional broadcasting rights.

What is a downside of blackouts?

Fans may become frustrated because they cannot watch games through their preferred service.

Why are sports managers concerned about balancing broadcasts and attendance?

Too much emphasis on broadcasts could reduce ticket sales and in-person attendance.

Why are live fans important beyond ticket revenue?

They create atmosphere, excitement, and authenticity for broadcasts.

What did the COVID-19 pandemic demonstrate about fan attendance?

Games without fans felt less energetic and authentic.

Why did the NFL historically use local blackouts for unsold games?

To encourage fans to purchase tickets and attend games in person.

A league signs a deal with Netflix to reach younger viewers. What broadcasting advantage is it pursuing?

Greater access to younger, digitally focused audiences through streaming.

A local fan wants to watch every game of their hometown team. Which telecast type is most important to them?

Regional telecasts.

A championship game is broadcast across the entire country to maximize exposure. Which telecast type is being used?

National telecast.

A fan cancels cable and switches entirely to Netflix and Amazon Prime. What trend is this?

Cord cutting.