Future Sport: Issues in the mediation of sports programming via new media Joanne Jacobs National Centre for Australian Studies

Scope of the paper Influence of Pay TV on FTAInfluence of Pay TV on FTA History of PayHistory of Pay Introduction of DTVIntroduction of DTV Streaming MediaStreaming Media Next generation devicesNext generation devices Media v Teams v InternetMedia v Teams v Internet Live v On-DemandLive v On-Demand

Influence of Pay TV on FTA No loss of existing audience share to FTAs (only loss of potential)No loss of existing audience share to FTAs (only loss of potential) Globally the audience figures for FTA sports programming is reducing as market choices become more plentifulGlobally the audience figures for FTA sports programming is reducing as market choices become more plentiful Pay TV is now old technology. While rights are still being negotiated, new vehicles for content transmission are emerging.Pay TV is now old technology. While rights are still being negotiated, new vehicles for content transmission are emerging.

History of Pay TV in Australia Anti-siphoning lawsAnti-siphoning laws Adoption of Pay TV has been strongAdoption of Pay TV has been strong –By late 2000, close to 20% of Australian population have the capacity to connect to Pay services, and 50% of homes with Pay connected actually watch. (SOURCE: A C Nielsen) Pay TV dedicated sports programming initiativesPay TV dedicated sports programming initiatives –Optus AFL Channel –FOX Sports

Pay TV Statistics In 2000, there were approximately 1.3 million subscribers to Pay TVIn 2000, there were approximately 1.3 million subscribers to Pay TV –AUSTAR: 430,000 –FOXTEL: 670,000 –OPTUS: 220,000 (SOURCE: Paul Budde Communications) People with PAY TV are more likely to watch pay services than FTAPeople with PAY TV are more likely to watch pay services than FTA –70-75% of viewing time spent on Pay TV –43% of Pay viewers spend 15 hours a week watching Pay TV (SOURCES: FOXTEL, AUSTAR & XYZ Research)

Pay TV Information While adoption has seemed slow, the actual penetration of Pay has been relatively strongWhile adoption has seemed slow, the actual penetration of Pay has been relatively strong Penetration in Sydney and Melbourne is approximately 17%. Paul Budde notes that more and better initiatives will be needed to reach the 20-25% penetration level.Penetration in Sydney and Melbourne is approximately 17%. Paul Budde notes that more and better initiatives will be needed to reach the 20-25% penetration level. Sport represents one of three key attractors to Pay TVSport represents one of three key attractors to Pay TV

Introduction of Digital TV No participation from Pay TV playersNo participation from Pay TV players No multichannelling for the FTAs (so no dedicated sports channels)No multichannelling for the FTAs (so no dedicated sports channels) Limited enhanced programming (Eg: end of a cricket match whilst news services are also being broadcast)Limited enhanced programming (Eg: end of a cricket match whilst news services are also being broadcast) Rise and fall of datacastingRise and fall of datacasting

Streaming media Examples of streaming sportsExamples of streaming sports –Cricket audio on ABC site (live) –AFL audio (delayed, on demand) –AFL video (delayed, on demand) Issues that have emergedIssues that have emerged –Do broadcasters have rights to netcast? –Who has rights to streaming content after the event? Streaming growth (ADSL and cable penetration)Streaming growth (ADSL and cable penetration)

Next generation devices Sports results delivered to a mobile deviceSports results delivered to a mobile device –Requires partnerships between mobile phone carriers and sports broadcasters –Internet connectivity for Palm Pilot or other personal organiser device Digital television technologiesDigital television technologies –Datacasting / iTV (if it is reinstated) –Personal Video Recorders in advanced receivers (which remove advertisements)

Media v Teams v Internet Media recognise the threat of market fragmentation due to competition provided by new vehicles for content deliveryMedia recognise the threat of market fragmentation due to competition provided by new vehicles for content delivery Teams/Organisations feel entitled to profit consolidation from website-driven, on- demand streaming contentTeams/Organisations feel entitled to profit consolidation from website-driven, on- demand streaming content Syndicators (broadcasters) do not often have web rightsSyndicators (broadcasters) do not often have web rights Licences for international distribution need to be established for online contentLicences for international distribution need to be established for online content

Live v. On-Demand Pay TV and FTA have live coverage advantages. They also have the advantage of infotainment value- addition (FAQ sheets, merchandising, and information services)Pay TV and FTA have live coverage advantages. They also have the advantage of infotainment value- addition (FAQ sheets, merchandising, and information services) Datacasting, PVRs and Internet have on-demand advantage after the eventDatacasting, PVRs and Internet have on-demand advantage after the event Rights for new technologies need not be bundled together but need to be cognizant of live v. on-demand privilegesRights for new technologies need not be bundled together but need to be cognizant of live v. on-demand privileges

Conclusions Influence of Pay TV on FTA has been minimal in the broadcast of sport, due to anti-siphoning laws and due to slow adoption of (loss-making) dedicated servicesInfluence of Pay TV on FTA has been minimal in the broadcast of sport, due to anti-siphoning laws and due to slow adoption of (loss-making) dedicated services As more vehicles for transmission of content emerge, effects of next generation devices are likely to be more profound on both FTA and Pay servicesAs more vehicles for transmission of content emerge, effects of next generation devices are likely to be more profound on both FTA and Pay services

Conclusions Rights for mediation of sports events now involve not merely the controlling authority of a sport, but also the continuing rights of teams, players and sporting grounds/facilitiesRights for mediation of sports events now involve not merely the controlling authority of a sport, but also the continuing rights of teams, players and sporting grounds/facilities Pay TV and FTA have the opportunity to invest in high-fidelity sports programming, and associated merchandising, while low-bandwidth players can target niche interestsPay TV and FTA have the opportunity to invest in high-fidelity sports programming, and associated merchandising, while low-bandwidth players can target niche interests

Contact details: Joanne Jacobs National Centre for Australian Studies Monash University Ph: (03) Fax: (03) Mob: Internet: