Discuss About The Assessing Potential For Corporate Smaller Sports?
In 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 of the 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 also sell 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 equipment and 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 and multimedia 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 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 growth opportunities 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 by the broadcasters in order to achieve these rights. Furthermore, the research aims to discuss the positive 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 work for 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 article 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 latest sports 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 broadcasting networks 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 broadcasting contents 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, whereas IPTV uses a dedicated private network to deliver the broadcasting services in a consistent manner (Dindaro?lu, 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 terms of 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 audiences have got the power to decide the market size (Gratton et al., 2013). Therefore, the broadcasters have to build the telecast set up considering the television viewers. Evidently, due to commercialisation, camera set up in a sports event can determine the economic value rather than counting the sold tickets to the audience. In both the cases, sports organisations can make massive profits by selling the broadcasting rights and media rights according to their preferences. In case of providing the broadcasting and media rights to respective companies, the agreement should be followed on the basis of broadcasting Copyright Law and violation of the law may lead to statutory actions (Lee, 2007).
In another piece of research, Davies (2015) discusses about the broadcasting rights and the essentiality of understand the television rights for broadcasters in Australia. In Australia, the Copyright Act 1968 provides exclusive control to the owner over broadcasting of sports events (Blumenthal & Goodenough, 2006). In 2000, the Act was amended to tackle the issue with new technologies. Under the amendment, the technology-neutral right was provided to the public associated with the sports broadcasting industry (Davies, 2015). In this way, limited copyright material can be recorded for private and domestic use without violating the Copyright Act. The transformation of the Copyright Act has delivered significant advantage to the public and sports fans, to say the least.
Regulations of sports broadcasting can be identified as one of the most important aspects affecting the revenue of the sports organisations associated with the business. In a research study, Smith, Evens & Iosifidis (2015) review the regulations and legislations of broadcasting industry based on seven countries including Australian television broadcasting and media industry. The authors identify two leading regulations i.e. competition law and mega event related legislations affecting the revenue model of the sports firms. Precisely, the study evaluates that the balance of the modern sports broadcasting industry has shifted towards the commercial interest of pay-TV operators and leading sports corporations or organisers (Smith, Evens, & Iosifidis, 2015). In this particular scenario, the importance of broadcasting regulations has become imperative to maintain the balance of socio-cultural benefits of the target audience and the profitability of the broadcasters. Crucially, it is the responsibility of the regulatory bodies to verify that the latest sports broadcasting model must deliver a wider range of benefits to the non-corporate and smaller sports (Gratton et al., 2013). Meanwhile, the first of the two policy regulations mentioned earlier has been directed to maintain competition and fair trade in broadcasting industry whereas the mega event legislations have been there to secure the rights of the public to get free access to the international mega events such as Olympics. At the same point in time, the right to information of the domestic public can be preserved through the legislative regulations (Law, Harvey & Kemp, 2002).
In a particular study, Avgerinou (2007) states the economics of professional sports and the role of broadcasters in development of the teams. In the sports industry, broadcasters’ position cannot exist without competitors. In case of sports economics, talents and coaching facilities are considered as business inputs to produce outputs. Evidently, organised matches and events are termed as business outputs that have been marketed towards the direct audiences and television viewers (Avgerinou, 2007). In this entire sports economics, broadcasting of sports has become one of the most important things to be considered as a source of revenue for the organisers. All the efforts of the professional sports team have to be combined so that the value of the sports economics will be increased (Blair, 2012). As a result of the consequences, the professional teams and sports are directly benefitted through selling the telecast and media rights of sports to the respective firms.
The review of the study written by Noll (2007) explains the economics of sports broadcasting and the influence of the broadcasting rights on the non-corporate or smaller sports. The economic value of broadcasting right increases according to the popularity of the sports events. In the meanwhile, the demand of the mega events and popular sports are relatively higher in compared to smaller sports. Hence, the demand and rate of broadcasting rights are also unbelievably higher. As a result of the scenario, monetary force has decided how the broadcasting rights are offered to the broadcasters and media agencies. However, the position of public broadcasters can be limited to certain extent. Based on the buyers’ nature and characteristics, the broadcasting rights have been offered to the most eligible broadcasters in exchange of monetary benefits (Noll, 2007). In this way, the demand of the broadcasted events and nature of the broadcasters can be identified as two crucial aspects in broadcasting economies.
The modern broadcasting model i.e. Internet Protocol television (IPTV) is entirely different from the conventional cable TV broadcasting. By using TCP or IP protocol, the service providers delivers TV programmes and video content as per the demand of the target audience. Unlike, traditional subscriber-based model of broadcasting, IPTV system provides live TV and video content over private network according to the requirement of the audiences. The IPTV services are typically distributed by a particular service provider on a managed network. Different from public network, the dedicated private network offers significant control to the operators and broadcasters to manage the video content and incoming traffic (Simpson & Greenfield, 2007). At the same point of time, by adding required extensions in the private network system, the quality of services and reliability of broadcasting can be ensured. In case of conventional broadcast delivery services, all the TV programmes are broadcasted simultaneously and according to preferences the viewers have to change the channel to see the programmes. In contrast, the IPTV services deliver only a single programme at a time. In the private network, all the TV content has been kept on the network of the service provider and selected items have been sent to the target audience on-demand.
In case of sports broadcasting, the benefits of IPTV service are endless. The IPTV service offers the target audiences a number of additional services and applications that are missing in traditional broadcasting services. For instance, the viewers can watch live sports, on-demand videos, and record the preferred content by using the IP-based services. Other than that, the transformation of broadcasting system has enabled the target viewers to rewind or restart live video programmes or event even after the programme is already in progress. Another delivery model of IPTV broadcasting is Internet TV (Simpson & Greenfield, 2007). In this model, the video content and live programmes are distributed to the target audience by using a website. Fundamentally, the shift in broadcasting models has enabled the broadcasters to target the internet based viewers and audiences to deliver the contents on-demand. Evidently, the presence of private network delivers quality in transmission through a number of Internet Protocol, software, hardware, and technology based infrastructure (Roebuck, 2012). In this way, the IPTV system service delivers dynamic broadcasting features to the viewers using broadband connection unlike satellite or frequency broadcasting technology.
In order to understand the implications of new sports broadcast models over non-corporate and smaller sports, it is important to observe the significance of IPTV and OTT in sports broadcasting in the recent period in Australia. According to the NBN report, the consumption of sports have gradually increased with the introduction of innovative technology and new broadcasting models such as IPTV and OTT (Future of Sport Report – The revolution in digital sports consumption, 2017). For instance, there are around 16.4 million Australians who are interested in one or more sports and these peoples are aged between 16 and 64. The new broadcasting models have provided the fans a control over the sports contents that are broadcasted such as the best moments, athletes and games. Nowadays, the sports fans have gone digital driven and converted into tech savvy consumers. In the meanwhile, the consumers demand to watch sports according to their choice and conveniences. By considering the figure presented in appendix 2, it can be seen that around 55 percent of the Australian sports fans used the internet to feel connected to sports (Future of Sport Report – The revolution in digital sports consumption, 2017). YouTube is one of the mostly used social media channel to watch live sports by the Aussies sport fans in the recent times. Furthermore, Facebook is also used by the Aussie Fans to get updates regarding the live sports broadcasted in Australia.
The advancement of technology and internet platforms have made it easier for the Fans to get information about the Sports contents and stay connected to their favourite sports (Minas, 2013). Hence, the introduction of the new broadcast models has emerged as major marketing stunts to enhance the number of viewers for Australian sports and convert it into a major source of entertainment. According to Zumoff & Negin (2015), out of the top five mostly viewed broadcasted shows; four of them are sporting events. Hence, the new broadcast models have increased the popularity of sports in the Australian market leading to increase in the number of consumers and growth in the income for the broadcasting organizations and sports organizations.
In the future, it is expected that the fans will demand advancement of technology at a higher pace. Furthermore, the consumers will expect more connected devices that can provide more sports views according to their demand (Future of Sport Report – The revolution in digital sports consumption, 2017). In other words, broadcasting models of sports have got consumer oriented with the introduction of IPTV and OTT platforms (Minas, 2013). Furthermore, the convergence of technology and media businesses will increase in the future to meet the needs of the Australia Sport fans (Schultz, 2012). Decisively, the development of technology and introduction of new sport broadcast models have changes the pattern of sport consumption and positively impacted the consumption behaviour of the Australian sport fans.
In Australia, the broadcasters have to identify the sports broadcasting regulations to avoid a discrimination and violation. As the sports broadcasting is shifting towards the IPTV system, the sports broadcasting and media regulations are needed to be redefined. In order to protect the traditional TV and broadcasting rights of the broadcasters, a number of regulations must be taken into account in case of shifting towards IPTV broadcasting model. The Broadcasting Services Act 1992 governs the broadcasting rights and services issues on Australia. In the meanwhile, the Act protects free-to-air broadcasting as well as Pay TV broadcasting model securing the broadcasting rights of the service providers. The sports broadcasting challenges and issues are currently monitored under anti-siphoning scheme (Jolly, 2012). According to the scheme, free-to-air television broadcasting organisations cannot telecast premier events listed in anti-siphoning category on their digital multi-channels (Acma.gov.au, 2017). Also, the TV broadcasters must show repeated version of the events in the digital multi-channels of TV broadcasters. As per the anti-siphoning scheme, subscription TV broadcasters are not permitted to acquire TV rights of any event listed under the anti-siphoning list unless they are fit to some of the criteria (Mason, 2017).
The entire anti-siphoning scheme has been monitored, governed and functioned under the Broadcasting Services Act 1992. In the current state of scenario, leading Australian broadcasters such as Optus, and Fox Sports argued that the current anti-siphoning scheme would mainly favour the free-to-air broadcasters (Scott, 2015). Collectively, the regulations have provided significant advantages towards the non-corporate or smaller sports, to say the least. As viewers can watch the live sports events organised by the non-corporate sports organisations via internet platform, the popularity as well as quality of smaller sports will be boosted in Australia. However, the demand of the mega events and the investment of the leading sports broadcasting agencies have diluted the popularity of the non-corporate sports to some extent. Primarily, the anti-siphoning scheme has to deal with the digital rights of the sports events as the latest telecast models are shifting thick and fast. The growing popularity of the Internet TV and IPTV model must be collaborated with the free-to-air broadcasters so that the TV broadcasting rights of the leading telecast companies can be protected in the age of digital broadcasting (Ward, 2017). In the war of digital rights of events, the popularity of smaller sports and non-corporate sports will certainly increase if the regulations are rightly followed by the leading as well as smaller broadcasters operating in Australian sports industry.
It is quite difficult for the non-corporate sport organisers to get sponsorship from the major sports broadcasters such as Foxtel & Austar due to the lack of demand and poor infrastructure of non-corporate and smaller sports (Fort and Fizel, 2014). The audiences for smaller and non-corporate sports are limited in number and the introduction of Pay TV model enforces the sports fans to detach from such sports (Downward & Dawson, 2010). Furthermore, the funding of the non-corporate and smaller sports are too less to get the events broadcasted over the free-to-air services. Hence, the popularity of the non-corporate sports remains less as compared to corporate and large sporting events.
The new broadcast models have provided the non-corporate and smaller sports better platform to broadcast their games as an individual channels. For instance, the non-corporate sports organisers can upload the videos of their games over YouTube, Facebook and other social media channels to promote their games and increase the popularity of the smaller sports (Fort & Fizel, 2014). Furthermore, the new broadcast models enable the non-corporate sports organisers to reach a higher number of target audiences and develop a demand for such sports in the market. Additionally, the broadcasting of the smaller and non-corporate sports over the IPTV and OTT platforms provide the organisers to earn good amount of revenue from the advertisements and pay-per-view model that helps in the growth and development of such sports in the Australian market.
Nowadays, the major schools, colleges and Universities broadcast their sports over the IPTV and OTT platforms that help them to increase the popularity of smaller sports. Additionally, the athletes get an opportunity to showcase their talents that provides a wider scope for the players to seek growth in their career (Ciletti & Chadwick, 2012). Moreover, the revenue earned from the broadcasting of the smaller sports events helps the organisers to use the fund in the development of such sports by implementing better technology and providing monetary support to the athletes (Fort & Fizel, 2014). Hence, it can be seen that the implementation of the new broadcast models have helped the small and non-corporate sports organisers to promote infamous sports in Australia and influence more athletes to participate in such sports. Moreover, the new models have provided better scopes and opportunities to the lower level athletes to showcase their talents and convert their passion for sports into professions.
However, a major concern that has emerged in the recent times is the commercialisation of non-corporate and smaller sports. The growing popularity of non-corporate sports in the recent times has made organisers focus on increasing their profitability in place of working for the betterment of sports. In other words, the organisers focus on earning money by broadcasting the sports in place of focusing on increasing the value of the sports (Ciletti & Chadwick, 2012). Additionally, the lack of broadcasting rights regulations in the case of non-corporate and smaller sports have made it difficult for the organisers to safeguard the broadcasting of their sports and piracy has become a primary issue for such sports (Ciletti & Chadwick, 2012). For example, several people record the smaller sports events through their mobile cameras and upload them over the social media platforms without caring about the broadcasting rights. Hence, the government needs to take necessary steps in order to safeguard the broadcasting rights of the non-corporate and smaller sports and promote such type of sports in Australia (Gibson, 2011).
Due to the introduction of IPTV broadcasting model, the broadcasting industry has been revolutionised. The internet platform has opened up so many opportunities for the non-corporate and smaller sports to furnish. By using the IPTV and OTT broadcasting, smaller sports or non-corporate organisations can easily promote their sports to the target audiences (Scherer, 2015). In the meanwhile, due to low cost of broadcasting and production through IPTV and OTT model, smaller sports organisers can become broadcaster of their own sports. At the same point of time, by using the model, fragmented target audiences can eventually lowered the values of broadcasting and rights of telecast leading to failure of smaller and non-corporate sports (Shank & Lyberger, 2015). On the other hand, the value of the sports is reduced as sports transform into production houses. Therefore, it may be seen that IPTV broadcasting model can affect the value of smaller sports. Furthermore, the introduction of IPTV may change the conventional relationship between the sponsors and broadcasters (Beech & Chadwick, 2007). Due to the digital right war of sports events, the sports broadcasters must act differently to create innovative earning options for all the parties associated to the business model. Primarily, the focus should be kept on the improvement of sports and quality of broadcasting although the commercial benefits are mandatory for the sports organisers and smaller sports.
On the basis of the above analysis, it can be seen that the new broadcast models in the form of IPTV and OTT has emerged as a new medium to popularise the non-corporate and smaller sports events. Moreover, the new broadcasting models enable the small and non-corporate sports organisers to broadcast their events and earn revenue from the views and advertisements (Hoye, 2006). But, there are several challenges that must be mitigated in order to promote such sports and seek potential growth of smaller sports in the Australian Sports Industry. Few recommendations have been provided in this section in order to grow the value of non-corporate and smaller sports in the Australian market.
Firstly, the government must focus on the development of non-corporate and smaller sports in Australia by promoting such events. For instance, the government can take an initiative to broadcast smaller events over the free-to-air televisions or PTV platforms to increase the number of viewers and demand for such events. Though the online broadcasting models are cheaper as compared to traditional broadcasting models, there is a need of small or medium amount of investment to get the non-corporate and smaller sports broadcasted in the media (Kahle & Riley, 2014). Therefore, the government can provide monetary support to the non-corporate and smaller sports organisers to arrange such events and get them telecasted over different online media.
Secondly, the Australian Government must focus on making necessary reforms in the broadcasting rights regulations for the non-corporate and smaller sports to increase the safety of the broadcasting rights. For instance, regulations for copyrights must be introduced to mitigate the issues of piracy of such sports events over the social media platforms (Kahle & Riley, 2014). Additionally, the government must introduce new rules and regulations for the broadcasting of non-corporate and smaller sports in the anti-siphoning scheme to help the organiser earn revenue for the development of small and non-corporate sports in Australia (Sherwood, 2016). Furthermore, sponsorship and advertisement rights can be introduced to increase the revenue of the non-corporate and smaller sports organisers.
On the basis of the above analysis, it can be seen that several new broadcasting models have been introduced in the last two decades that have changed the sports consumption in the Australian market. The introduction of the Pay TV model after FTA broadcasting has gradually changed the revenue model of the sports organisers and broadcasters. However, a severe fall in the number of viewers has been evident during the initial phase of the introduction of the PTV model. With the development of technology the sports consumption behaviour of the Australian sports fans have changed in the recent years providing a better scope for the development of internet based broadcasting models. The digital technology introduced the IPTV and OTT broadcasting models that became popular due to their advantages and free streaming opportunities. Additionally, the IPTV and OTT broadcast models acted as a major platform for the non-corporate and smaller sports to reach a higher number of potential customers. The new broadcast models provided different opportunities to the non-corporate and smaller sports organisers to earn revenue for the development of such sports in Australia. However, the lack of proper broadcasting regulations for non-corporate and smaller sports over the internet platform has led to several challenges for the broadcasters and organisers. Conclusively, the Australian government need to promote the broadcasting of non-corporate and smaller sports by providing better funding options and making reforms in the broadcasting regulations to seek growth of such sports in the nation.
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