The future shape of sports broadcasting was teased out at the latest gathering in the Sport for Business Round Table programme.  A group of 14 leaders drawn from sporting and business circles looked at how technology was changing customer behaviour, at what commercial models were emerging as a result and at how sport was maintaining its importance in the context of multimedia development.
The discussion was hosted on this occasion at the Dublin 4 studios of RTE who were represented by both the commercial and the editorial sides of the organisation.  We were joined as well by the FAI, Irish Greyhound Board, Irish Sailing Association, Badminton Ireland, Paralympics Ireland, Aer TV, PwC and Carat, the country’s largest media agency.
The discussion ranged across areas of multi screen viewing, the tipping points at which consumers would reject commercial influence and how important television’s role remained in these days of multiple devices and mobility.
We came away as ever with a list of ten take away points as well as an action list of initiatives in the area which we will progress in the coming months.
Ten points from the discussion on Broadcasting and Sport.
1. Television remains a key component in how sport is consumed, despite a strong move to what was described as ‘short code’ viewing where people were able to follow and ‘watch’ major sports events through channels like twitter.
2. Because everything was changing, everything was changing.  The shifting balance in terms of consumption was creating different consumer behaviour, especially in the area of news but that live events were still able to hold the imagination and the engagement of fans.  This may be through multi screen experiences with phones and tablets alongside the TV but that the ‘big box’ was still what was driving the national conversation around the big events.
3. The two or even three screen experience was seen as additional rather than substitutional and that commercial partners wanted to be across every touch point where the fans are likely to be engaged.
4. The fracturing of the TV market has produced different models of how sport may be broadcast but the cost of entry to the highest quality of broadcast remains massive.  The infrastructure required to broadcast using latest HD, super slow motion and other technologies is ever developing and expensive.  It sets the bar for consumer expectation though and maintains the value of ‘exclusivity’ around the main events that drives up the value of rights.
5. Though it is often overlooked, the consumer market can often be self-policing when it comes to overt commercial branding of sport.  The US Sports market was highlighted as one where so many elements of the sport were heavily commercialised from headphones worn by coaches to refreshments taken by players to the number of breaks for TV advertising.  While this was considered ‘too much’ by a European audience, their US counterparts considered the on shirt sponsorship in much European sport to be more vulgar.
6. Sponsorship and branded content was accepted by fans, and in many ways welcomed as providing the means to a better overall viewing experience.  The multiple commercial messages coming at you from a live broadcast were generally accepted but if a sponsor goes too far, as in the example of a recent rugby interview set up with a motoring partner, the backlash through peer commentary on social media can often be counterproductive, both for the brand and the stars involved.
6. In event advertising such as was used by Allianz during the Paralympics coverage allowed commercial messages to be broadcast on an emerging and receding border around the main action which remained on screen.  This was not new having been around at the time of the FIFA World Cup in 1986, at least for a US audience.  It was noted however that in many cases such different forms of commercial advertising were specifically restricted in order to protect the interest of global event partners in different TV markets.
7. TV remains a crucial part of what every commercial partner in sport is looking for but it may be that in a larger overall market, its importance now represents a smaller overall percentage.  It was recognised that sponsors and partners are looking for access through every touch point the consumer has with a team or an event.  This is as much now through social media and online as through TV and radio.  Multiple channels add to the cost of partnership but also to their effectiveness.
8. Smaller sports often suffered from the high expectation of ‘internal’ audiences over the likely reach of broadcast deals and the reality of what the public will engage with.  The view that people will watch and enjoy so long as it is on the ‘box’ no longer is the case and so much more is now demanded in terms of broadcast quality and also the very make up of the sport. Cricket was seen as an example of how the sport had developed new formats in order to match the broadcast environment and reach existing as well as new fans.
9. Commentary and analysis of sport was increasingly taking place through peer channels rather than through broadcast.  The RTE approach to expert analysis that was more natural and less scripted sometimes looked as though it was less professional but was certainly more engaging than much of what is now the norm in other jurisdictions.  This is though the greatest challenge as commentators on social media, beyond the control of rights holders or broadcasters were increasingly likely to be heard and listened to by audiences.
10. RTE and other main broadcasters were likely in the future to concentrate on live and major events with high production values while at the same time be more open though online and digital channels to new content and new formats.
Two ideas to take away:
In the coming months Sport for Business will bring together a number of parties from  minority sports to explore workable broadcasting models that might be suitable for smaller but tightly defined audience groups that would be of interest to commercial partners.
We will work with Carat and other research groups to establish greater clarity about where the tipping point may be, in an Irish context, for consumers of sport and how this can be used to create imaginative but acceptable touch points between sponsors and their target audience.
The next Sport for Business Round table will take place on the subject of social media and sport in December.  If you feel you would like to participate and make a contribution in this area, please contact Sport for Business as soon as possible as places are already filling.
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