TexanMark
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Why TV Sports Contracts Are Growing
As many of you know Syracuse University produces a ton of TV and printed sports journalists and commentators. Also, many grads work behind the scenes in places like ESPN.
I had an expert placed in the know at ESPN explain the contracts for LIVE Sports events are a precious commodity now. We live in such a highly fragmented media world -- people have more access to more content across more devices than at any time in history. Advertisers are flocking to live sports events because sports fans have an overwhelming desire to see an event live and are a captive audience through the advertising.
With the advent of the DVR and network websites the standard sit com, drama, soap opera, movie doesn't get as much advertising dollar. We all know you can record CSI (insert city here) and watch your 1 hour CSI show in 40 mins or so on DVR by skipping over the commercials.
That said...you know understand why 12>10>8 content, content, content
But Quality and higher viewership content is key...this is why in TV dollars SEC>ACC>Big East> CUSA/MWC
However, the Big East needs to pick carefully as something can change dramatically in content delivery in 10 years and you are stuck with whom you ask to dance with in 2011.
(This post was last modified: 04-14-2011 11:27 AM by TexanMark.)
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04-14-2011 11:26 AM |
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Frank the Tank
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RE: Why TV Sports Contracts Are Growing
(04-14-2011 11:26 AM)TexanMark Wrote: As many of you know Syracuse University produces a ton of TV and printed sports journalists and commentators. Also, many grads work behind the scenes in places like ESPN.
I had an expert placed in the know at ESPN explain the contracts for LIVE Sports events are a precious commodity now. We live in such a highly fragmented media world -- people have more access to more content across more devices than at any time in history. Advertisers are flocking to live sports events because sports fans have an overwhelming desire to see an event live and are a captive audience through the advertising.
With the advent of the DVR and network websites the standard sit com, drama, soap opera, movie doesn't get as much advertising dollar. We all know you can record CSI (insert city here) and watch your 1 hour CSI show in 40 mins or so on DVR by skipping over the commercials.
That said...you know understand why 12>10>8 content, content, content
But Quality and higher viewership content is key...this is why in TV dollars SEC>ACC>Big East> CUSA/MWC
However, the Big East needs to pick carefully as something can change dramatically in content delivery in 10 years and you are stuck with whom you ask to dance with in 2011.
I'm actually going to be writing a blog post addressing this soon, but this is definitely a big factor. The other factor is that sports draw well in the men 18-49 demographic, which is the hardest group to reach for advertisers.
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04-14-2011 11:36 AM |
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Wedge
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RE: Why TV Sports Contracts Are Growing
(04-14-2011 11:26 AM)TexanMark Wrote: With the advent of the DVR and network websites the standard sit com, drama, soap opera, movie doesn't get as much advertising dollar. We all know you can record CSI (insert city here) and watch your 1 hour CSI show in 40 mins or so on DVR by skipping over the commercials.
I read that there are some popular shows for which half the audience watches the show at a later time on a DVR. I certainly wouldn't pay as much for an ad on one of those shows as I would for an ad on a big-time college football game.
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04-14-2011 02:13 PM |
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EerMeNow
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RE: Why TV Sports Contracts Are Growing
(04-14-2011 11:26 AM)TexanMark Wrote: As many of you know Syracuse University produces a ton of TV and printed sports journalists and commentators. Also, many grads work behind the scenes in places like ESPN.
I had an expert placed in the know at ESPN explain the contracts for LIVE Sports events are a precious commodity now. We live in such a highly fragmented media world -- people have more access to more content across more devices than at any time in history. Advertisers are flocking to live sports events because sports fans have an overwhelming desire to see an event live and are a captive audience through the advertising.
With the advent of the DVR and network websites the standard sit com, drama, soap opera, movie doesn't get as much advertising dollar. We all know you can record CSI (insert city here) and watch your 1 hour CSI show in 40 mins or so on DVR by skipping over the commercials.
That said...you know understand why 12>10>8 content, content, content
But Quality and higher viewership content is key...this is why in TV dollars SEC>ACC>Big East> CUSA/MWC
However, the Big East needs to pick carefully as something can change dramatically in content delivery in 10 years and you are stuck with whom you ask to dance with in 2011.
Interesting stuff.
Btw, TexanMark, is this Big 12/Fox/A&M stability thing for real? I am might get more than 1 opinion from people on this question, but I would love to hear your response. Is A&M 100% in bed with the Big 12 because of this "deal"? Is it a 100% "done deal"? I have A&M friends swear that its not.
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04-14-2011 02:29 PM |
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ClairtonPanther
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RE: Why TV Sports Contracts Are Growing
Great stuff. Mark.
One thing that shouldn't be confused here is that inventory is a great thing as long as there is interest in that inventory.
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04-14-2011 02:37 PM |
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SuperFlyBCat
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RE: Why TV Sports Contracts Are Growing
(04-14-2011 02:37 PM)animus Wrote: Great stuff. Mark.
One thing that shouldn't be confused here is that inventory is a great thing as long as there is interest in that inventory.
and interest in that inventory across a broad scale or spectrum, not just a local "market". The is a reason it is called broadcasting.
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04-14-2011 03:28 PM |
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JunkYardCard
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RE: Why TV Sports Contracts Are Growing
This is why you see more and more product placement right in the TV shows and even in movies. It's no accident when every car in a movie is a Ford.
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04-14-2011 03:29 PM |
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KnightLight
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RE: Why TV Sports Contracts Are Growing
Also, for many regular TV series (i.e. non-live shows), for millions of people...there is no rush to watch the show LIVE and sit through all the commercials.
Here's an article and chart from just one week last fall that shows the most popular DVR'd shows for that week...and notice, ZERO SPORTS are listed...but virtually all televised sports events are watched LIVE...which is why AD rates are so high for the target market that sports audience reach (they know most are not DVR'ing the games to watch days/weeks later...those sports fans are watching LIVE...which means they are getting a lot of ADS thrown at them).
Sporting events still bring in major $$$$$ to the networks.
'Hawaii Five-0' tops list of most DVR-ed shows for premiere week
http://news-briefs.ew.com/2010/10/11/haw...iere-week/
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04-14-2011 03:52 PM |
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CatsClaw
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RE: Why TV Sports Contracts Are Growing
Very interesting. EerMeNow's question is interesting as well.
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04-14-2011 04:12 PM |
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Kit-Cat
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RE: Why TV Sports Contracts Are Growing
Contracts are growing for BCS leagues because so many networks desire the name recognition and value they bring.
The non-BCS conferences are not growing in value. Schools that comprise the MWC and CUSA have been making 1 million dollars per school in TV cash since the late 80's. Prior to the mid 90's the SEC and ACC were making the same kind of money then they took off.
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04-14-2011 04:29 PM |
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TexanMark
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RE: Why TV Sports Contracts Are Growing
(04-14-2011 02:29 PM)EerMeNow Wrote: (04-14-2011 11:26 AM)TexanMark Wrote: As many of you know Syracuse University produces a ton of TV and printed sports journalists and commentators. Also, many grads work behind the scenes in places like ESPN.
I had an expert placed in the know at ESPN explain the contracts for LIVE Sports events are a precious commodity now. We live in such a highly fragmented media world -- people have more access to more content across more devices than at any time in history. Advertisers are flocking to live sports events because sports fans have an overwhelming desire to see an event live and are a captive audience through the advertising.
With the advent of the DVR and network websites the standard sit com, drama, soap opera, movie doesn't get as much advertising dollar. We all know you can record CSI (insert city here) and watch your 1 hour CSI show in 40 mins or so on DVR by skipping over the commercials.
That said...you know understand why 12>10>8 content, content, content
But Quality and higher viewership content is key...this is why in TV dollars SEC>ACC>Big East> CUSA/MWC
However, the Big East needs to pick carefully as something can change dramatically in content delivery in 10 years and you are stuck with whom you ask to dance with in 2011.
Interesting stuff.
Btw, TexanMark, is this Big 12/Fox/A&M stability thing for real? I am might get more than 1 opinion from people on this question, but I would love to hear your response. Is A&M 100% in bed with the Big 12 because of this "deal"? Is it a 100% "done deal"? I have A&M friends swear that its not.
UT and TAMU IMHO are tied at the hip...but.........money changes things. I think this marraige (BEVO10) will last if the SEC and UT preceives they are rich enough.
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04-14-2011 05:07 PM |
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EerMeNow
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RE: Why TV Sports Contracts Are Growing
(04-14-2011 05:07 PM)TexanMark Wrote: (04-14-2011 02:29 PM)EerMeNow Wrote: (04-14-2011 11:26 AM)TexanMark Wrote: As many of you know Syracuse University produces a ton of TV and printed sports journalists and commentators. Also, many grads work behind the scenes in places like ESPN.
I had an expert placed in the know at ESPN explain the contracts for LIVE Sports events are a precious commodity now. We live in such a highly fragmented media world -- people have more access to more content across more devices than at any time in history. Advertisers are flocking to live sports events because sports fans have an overwhelming desire to see an event live and are a captive audience through the advertising.
With the advent of the DVR and network websites the standard sit com, drama, soap opera, movie doesn't get as much advertising dollar. We all know you can record CSI (insert city here) and watch your 1 hour CSI show in 40 mins or so on DVR by skipping over the commercials.
That said...you know understand why 12>10>8 content, content, content
But Quality and higher viewership content is key...this is why in TV dollars SEC>ACC>Big East> CUSA/MWC
However, the Big East needs to pick carefully as something can change dramatically in content delivery in 10 years and you are stuck with whom you ask to dance with in 2011.
Interesting stuff.
Btw, TexanMark, is this Big 12/Fox/A&M stability thing for real? I am might get more than 1 opinion from people on this question, but I would love to hear your response. Is A&M 100% in bed with the Big 12 because of this "deal"? Is it a 100% "done deal"? I have A&M friends swear that its not.
UT and TAMU IMHO are tied at the hip...but.........money changes things. I think this marraige (BEVO10) will last if the SEC and UT preceives they are rich enough.
Thanks TM. Answers my question(s) about the "deal".
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04-14-2011 05:45 PM |
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EerMeNow
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RE: Why TV Sports Contracts Are Growing
(04-14-2011 04:12 PM)CatsClaw Wrote: Very interesting. EerMeNow's question is interesting as well.
Thanks CC. And while on the subject of Big 12 stability, do you want to deny that the B.E. might making progress with bigger fish than the usual suspects?
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04-14-2011 05:53 PM |
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ChrisLords
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RE: Why TV Sports Contracts Are Growing
(04-14-2011 05:53 PM)EerMeNow Wrote: (04-14-2011 04:12 PM)CatsClaw Wrote: Very interesting. EerMeNow's question is interesting as well.
Thanks CC. And while on the subject of Big 12 stability, do you want to deny that the B.E. might making progress with bigger fish than the usual suspects?
I'll be more specific. Are BYU and/or BC being wooed ?
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04-14-2011 06:07 PM |
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