ADV 348S Midterm Exam

What was the national media revenue for the GB packers in 2020?

$270M (53%)

Most Favored Nation Clause (MFN)

- Chump protection - "If during the term of this Agreement, Programmer offers terms that are more advantageous to any other similarly situated Distributor, such terms shall immediately be offered to Distributor and take immediate effect"

How was NBA TV genius in a way?

-Created Fan Night: Fan's vote on the game they want to see. Don't know till a few days before. - They used existing RSN feed which covered graphics and included zero production costs. -They then packaged ad sales with Turner.

Why was Jackie Robinson significant?

-First black baseball player -Fans saw him interacting with white players and saw how accepted he was by his teammates -People started to realize that the world wasn't going to end -The first step in changing generational attitudes passed from father to son over and over.

Why is the national distribution of conference networks significant?

-Revenue gap is increasing. -Big Ten & SEC schools make a lot more money than PAC 12 schools off of their media deal. -This has an impact on competitiveness with coaches salaries being less in PAC 12 (besides lincoln riley).

NBA TV

-Smallest footprint. Why? --- No live games

NFL Network

-Started in early 2000s. -Finally added games in 2006. -Raised sub fee to $0.75 in 2007. -Comcast retaliated by moving them to a sports tier.

What happened in and after "The Game"?

-USC (the integrated team) dominated and won 42-21. -Alabama integrated its football team the next year. -The game and America moved ahead that day.

Name the three levels of cable programming packages to which consumers can subscribe and note on which one a sports bundle would be placed.

1. Basic Cable - Not free to consumers, cable service includes networks available to consumer at NO ADDITIONAL COST, all local OTA stations available on basic cable. 2. Expanded Basic Cable - includes all of the channels on basic cable + -a few other networks like national geographic and food network. Caters to niche and undifferentiated mass markets. All Paid Programming 3. Premium - consumer picks and pays for additional networks they would like to see in their programming package. Usually sports or entertainment. Sports programmers believe their content is valuable to cable/satellite because it: -recruits new consumers -keeps existing consumers

What is the difference between Endemic OTT and Bundled OTT?

1. Endemic: OTT Networks which: -Exist as standalone entities -Broadcast sports content on a 24/7/365 basis -Establish and maintain DTC relationships -Operate as a specific brand Ex: ESPN+, DAZN 2. Bundled: OTT MSOs which: -Host existing 3rd party Sports Networks that broadcast sports content on a 24/7/365 basis. -Bundle these networks with other non-sports networks into skinnier programming packages. -Typically offer NO additional unique sports programming unless it is carried on the existing sports networks on its platform. -Maintain DTC relationships instead of the individual sports network doing so. Ex: Hulu, FuboTV, YouTube TV.

North American Sports Structure

1. Leagues 2. Tours 3. Conferences 4. National Governing Bodies (Ex: Olympics) 5. Single Events (Ex: Masters) ** Media Funds them ALL **

Name the two primary types of OTT platforms, identify which one is a stand alone offering and which one hosts 3rd party sports networks, and provide an example of each

1.) Endemic: -OTT Networks -Stand alone offering, exists as its own entity; its own streaming platform. -24/7 sports programming. Ex: ESPN+ 2.) Bundled: -OTT MSO's -Host existing 3rd party sports networks, may be bundled with other non-sports networks. -Ex: Hulu

What are the 2 purposes of league owned networks?

1.) It allows you a DTC relationship with consumers. 2.) Provides a straw man in negotiations.

Who was the last non-integrated College Football Champion team?

1969 Texas Longhorns

Waves of Change for Athlete-Driven Media

1st Wave- Traditional (Radio & TV) -Match content aggregated 2nd Wave- Digital -Team-controlled IP and content aggregated. 3rd Wave- Social, DTC -Athlete-controlled IP and content aggregated.

What percent of TOTAL US rights fees do US broadcaster rights fees account for?

50+%

How much of PGA's combined deal revenue are they keeping?

90+%

What is athlete driven media?

A specific message or piece of content an athlete shares directly with an audience, where the athlete has an ownership stake of the content.

Please list an example of a sports content generator, a primary media platform, and a hybrid media platform, labeling each accordingly.

A sports content generator would be the Green Bay Packers. A primary media platform would be ESPN. A hybrid media platform would be Dietsche's Sports Media podcast.

What's next for athlete driven media?

Although athletes have always sought to maximize the revenue potential of their brief playing careers, this mindset is no longer limited to lucrative endorsement deals and appearance fees. Today, athletes seek to leverage their unique platforms to create value—both personally and communally—that will long outlast their playing careers.

OTA Network

An OTA Network is an Over-the-Air Network. These are networks that anyone with an antenna or basic cable can watch. NBC, CBS, FOX.

Define an OTA network and give an example of a PUBLIC one and what qualifies it for its public designation. (2 questions

An OTA network is an over-the-air network. These are widely-accessible to anyone with an antenna. A public one would be PBS. It's not for profit and is widely accessible to almost everyone.

Define an RSN and explain the type of content it carries. Also discuss the key element to ensuring an RSN is viable all twelve months of the year.

An RSN is a Regional Sports Network. They usually carry local sports content. An example would be SSG which owns the Stars and the Rangers. RSN's usually will buy content in the summer and winter so that they have year-round content. Dallas Stars are in the Winter and the Texas Rangers are in the Summer.

Example of National Broadcast Rights

Augusta National Golf Club sells the National Broadcast Rights to the Masters golf tournament to CBS and ESPN.

Tiering

Basic- used to be largest sub group, based on old analog systems. D1 - most widely distributed digital tier (essentially basic today) D2, D3 Sports Tier - A la carte, people only buy what they are interested in.

Examples of Conferences

Big 12, Big 10, SEC, ACC

Global Sports Business Spectrum

California (All Business) East coast USA (75% Business; 25% Regulatory) UK (50%-50% - Business/Politics Split -2 of Every Governing Body Western Europe (60% Politics (really Aristocracy), 40% Business) Russia (100% Politics -appearances, not P&L Driven) India -Cricket is Religion!!!!

What is the concept of carriage and explain how it pushed some North American leagues to cable/satellite. Provide an example of a league that was forced primarily to those platforms

Carriage is what channels are carried by certain MSOs. OTA networks didn't carry very many channels and weren't very accessible to people in geographically-isolated areas. Thus, North American leagues went to cable/satellite because there was more reach. NFL was pushed towards those platforms to reach their geographically-diverse audience.

What is a MonoSport Channel?

Channels like the NFL network, NBA TV, MLB Network that focus on one sport.

Examples of Cable Operators

Comcast, AT&T, TWC

Examples of Satellite Operators

DirecTV

Examples of Networks

ESPN, TNT

Examples of National Sports Networks

Fox Sports 1, ESPN, SEC Network, DAZN, ESPNU, NFL Network

How did MLB network get carriage?

Gave the major distributors 40% ownership of the network to get carriage

Please identify the 3- part process that underpin all sports rights fee monetization and explain what happens to the rights during each phase.

Historically, sports properties own their own intellectual property. Ex: game content, logos, merchandise They cut their own commercial deals, especially media deals, which means great disparity in terms of exposure, carriage, and revenue. (#1: Fragmentation) As league matures, they pool rights to maximize value (#2: Aggregation) Content owners then drive value from aggregated rights by packaging them into small bundles and selling them to individual media partners. (#3: Segmentation)

The sports industry is comprised of a small group of entities which provide the governance and structure for all professional and major 'amateur' sports. Please name all five and give an example for each

Leagues: -NFL Conferences: -SEC Tours: -PGA National Governing Bodies (NGBs): -Olympics Single-events: -Boston Marathon

What network was the most successful launch of a cable network ever?

MLB Network

MSO

Multi-System Operator is the people that sell the content to the customers. For instance, Youtube TV is an MSO in that they collect the subscription fees from consumers and pay per sub fees to network stations.

What was the first league owned network, launched in 1999?

NBATV

National Broadcast Companies

NBC, CBS, ABC

Examples of Leagues

NFL, MLS, NBA, NHL, MLB

Examples of National Governing Bodies (NGBs)

Olympics (typically amateur)

What is the MLB Extra Innings?

Outer market package - Significant in baseball due to fan loyalties - Economics: $200/season, split 50/50 between league and distributors(why does the League get this money vs. the teams?) -MLB needed leverage, so they bluffed with Extra Innings, threatened to sell it exclusively to DirecTV -Why would the Cable Companies care?-National footprint-Look at Sunday Ticket -Gave a better split to Distributors, effectively giving them the money to pay the subscription fees

O&O Network Station

Owned & Operated Network stations are stations that are completely owned and operated by the national station. For instance, NBC Austin is an O&O in that it is managed and run by the national station.

Why does PAC 12 have 7 networks?

PAC 12 decided most states in the PAC 12 have at least 2 schools in the PAC 12, brilliant idea to create PAC 12 network and individual networks, structural problems in the PAC 12 ⁃Each team in PAC 12 make a small amount of money, each team in SEC or Big 10 make crazy money, ability to get best coaches is higher outside PAC 12

Early Pro League formation allowed rights aggregation & segmentation and __________

PARITY

Examples of Tours

PGA, ATP, LPGA

What came before athlete driven media?

Print? Newspapers provided daily/weekly pre and post-game coverage.

What does RSN stand for?

Regional Sports Networks

Retransmission Consent

Retransmission consent is the consent that networks give to MSOs to show their content. Retransmission consent is different from Must Carry in that MSOs have to pay networks a fee in order to get consent.

Which conference network broke MLB Network record?

SEC Network which launched in 65 million homes

What allowed a transition in Athlete-Driven Media?

Social Media: - Combines 1st person video, audio, written word, real time immediacy, insider's POV. -Perfect format for sports dialogue -Allows athletes to aggregate & communicate directly with fans for the first time.

The Sports Rights Value Chain consists of four groups. Each makes a contribution (cash or otherwise) and receives benefits from other groups in order for sports content to be broadcast and consumed. Name the four groups, what they contribute, and if they pay fees, name the fees each pays and to whom.

Sports Content Generators: - create content and sell media rights to networks. Networks/Broadcasters: - Buy content from SCGs and then sell content to MSOs Multi-system Operators: - Pay per sub fees to stations and bundle content to sell to consumers. Consumers: - Consumers pay subscription fees to MSOs.

Examples of Single Events

The Masters, Boston Marathon

Adoption of cable television became popular for a primary technical reason and is highly effective in two types of unique geographic circumstances. Explain the technical reason and the geographic circumstances which fueled adoption

The primary technical reason was that not everyone could access the same channels; it really depended on how good the antenna reception was in your area. Cable is better for geographically-isolated places that don't get good antenna reception because it just goes in the ground. For instance, people in the mountains don't get as good of reception so they need cable.

Thematic Bundling

Thematic Bundling is the bundling of rights under a specific theme. Hulu, Disney+, ESPN + would be an example of thematic bundling.

Athlete Driven Media THEN vs. NOW

Then: -Individual athlete interests not always aligned with teams / leagues / rights holders agendas, and there were few, if any, pathways to get directly in front of fans. Now: -Athletes no longer need Traditional Media middlemen. First by using Social Media, then broader content development, athletes solidified direct communication with an audience, and can own the expression of who they are both on and off the court

Per Subscriber Fees

These are fees that MSOs pay to specific networks in order to air that network's station/program. ESPN charges a per subscriber fee of $3 so for every subscriber that DirecTV has (which has ESPN in their contract), they have to pay that $3.

Affiliate Station Fees

These are fees that affiliate stations have to pay to the national station. This is a contractual relationship and affiliate stations pay these fees so that they can be THE local station.

What are the things that players could do today that they couldn't before?

They have more freedom to communicate with fans. They can give more insight about their careers. They can turn themselves into a brand. ????

What is happening to Overflow Programming Networks like NBCSN?

They're being replaced

TV Ratings

This is the percent of people that own TVs that are tuned into your specific program. For instance, if 100 people own TVs in a market, 10 are tuned into your program, then your rating is 10. Doesn't matter if the TV is turned on, as long as the household has a TV, it is factored in.

Which teams played in "The Game that changed a nation"

USC and Alabama

National Sports Network

a broadcast network devoted exclusively to sports programming, 7 days a week, 52 weeks every year.

What is a "straw man"?

a fallacy in which an opponent's argument is overstated or misrepresented in order to be more easily attacked or refuted.

Historical outlets for an athlete's voice

a. Traditional Media - Ex. MLB.com, ESPN writes up spring training story featuring athlete interview b. Owned/Earned -Personal websites, content platforms c. New, Public Use Platforms - YouTube, Twitter, Instagram

___________ sales drove rights fees

advertising

The Power of _________ and ___________ __________ broadcast rights is unparalleled.

aggregation; collective selling

As Media platforms proliferate and Social Media allows Direct To Consumer (DTC) communication and two-way dialogues and relationships between athletes and fans, _______ _______ ______ has emerged as a highly influential and financially impactful segment.

athlete driven media

National Broadcast Rights

broadcast rights sold by a sports property owner (league, conference, event) to a National Network for nation-wide broadcast of games, matches, events, races.

Local Broadcast Rights

broadcast rights sold by a sports property owner to a national OR regional network for certain content in a local market to the extent that such broadcast does NOT conflict with national or league wide broadcasts RSNs lease or own local broadcast rights.

Is OTA or Cable more profitable?

cable because they receive both ad sales and subscriber fees

What has allowed athlete driven media to exist?

consumer hunger for real time action combined with technology improvements.

In 2015, what were 42 FIFA officials indicted for by the US attorney's office?

corruption charges

The importance of Game Inventory for OTT services

each of the new media rights deals have included specific inventory for major OTA and national Cable network OTT services or enhanced digital packages. NEED MORE INFO TO PUT IN.

Tennis participants compete jointly in biggest events with _______ prize money

equal

What new activation in sports is leading to increased viewership?

fantasy sports and gambling

The IOC is a ________ ______ organization with a _________ _______ arm.

for profit; not-for-profit arm

Golf and Tennis are highly __________ globally

fragmented

In major events like the Olympics: countries and their athletes compete for ______.

free

Top Athletes = ________ Daily DTC fan engagement than traditional media, leagues, teams or tours COMBINED.

higher

In the last 60 years, sports has seen a ________ in demand

increase

International sports leagues became professional much ________ than the USA.

later

Examples of Sports Content Generators

leagues, conferences, teams, tournaments, international organization like the IOC

FIFA is a _________ ______ organization but does not have a mandate to distribute ALL of its revenues to its member nations

not-for-profit

Revenue sharing is catalyst for ______ and _________ ________ between clubs

parity, competitive balance

Broadcasters enter into sports rights fees deals for different reasons

ratings, ad sales, drive viewership by demographic, drive subscriptions.

Sports Media Rights have proven ________ proof for decades.

recession

What is the most fragile component of the cable bundle?

regional sports networks

Leagues centralized broadcast rights sales; instituted _________ _________

revenue sharing

Live sports in the age of DVR leads to large _______ ____ to leagues (content owners)

rights fees

In Golf, each region has _________ professional tours.

separate

FIFA World Cup expenses have _______ over the last 15 years

soared

National/Local Rights Fees

the fees paid by a network owner to a content owner for the right to transmit (broadcast or stream) national or local broadcasts on that network.

ALL athlete-fan communication is run through a _________ media platform

traditional

Why was Gianni Infantino forced to resign?

tried to change meeting minutes

We are moving from Cable based TV to ______TV

web

What is a reason for cord cutting?

web streaming services