1. 1 Volume 1, Chapter 10 Sport in the digital domain

2. 2 Sport as adoption driver Every surge in popularity of sport has been accompanied by dramatic increase in coverage provided by media Newspapers, radio, TV, internet Cable TV ESPN (1979) Individual sports cable networks: MLB Network, NBA TV, NFL Network, Golf Channel, Tennis Channel Some also available on official websites Fox acquire NFL broadcast right in 1994 Cross-promoting non-NFL programming on football broadcasts

3. 3 Satellite TV DirecTV: NFL out-of-market games in 1990s 400 M/year in 2004, subscription fee = broadcast fee 700 M /year 2006-2010, 1 B/ year 2011-2014 Make money from subscription to non-NFL program Viewer-selected camera angle, Red Zone channel, multiple screens, index and search, recording to hard drive

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5. 5 Sport enters Internet age AudioNet (Boradcast.com), founded in 1992 by Chris Jaeb Live radio of college sports, NFL, NBA Acquired by Yahoo in 1999 for ~5 B Many other dot.com failed Overheated investment environment, good ideas and poor execution Bottleneck: broadband availability ESPN Motion provide video clips in 2003 1.6 M users in mid-2003, half watched daily Commercials embedded into video clips

6. 6 New forms of media – websites Official league websites NFL.com 2 nd most popular sports-related website, behind ESPN.com Individual team sites Under official league pages Provide free and PAID contents Provide exclusive interviews/news even unavailable for other media More incentive for fan to become member Provide video, highlights Keep displaced fans in touch with their hometown teams

7. 7 Baseball and internet Major League Baseball Advanced Media (MLBAM) in 2000 First in professional sports leagues 1 M/year investigated by each team for 4 years All teams shared profit equally Great content, previously out of market Provide every fan with unlimited access to all content, any time MLB.tv in 2004 Live/on demand games, audio, condensed games, highlights, DVR, HD ~ 500,000 subscribers 2 targeted segments: Displaced fans, baseball fanatic

8. 8 MLBAM Enhanced e-commerce offerings for licensed merchandise Auction: exclusive game-worn and signature items ~ 25 M in sales and auctions in 2005 Acquired Ticket.com Sell all tickets for all teams in MLB.com, extended to minor leagues Partnership with StubHub: online-secondary ticket market, help season ticket holders to fill unneeded tickets Estimated value 2-2.5 B in 2005 Bloomberg : value of MLBAM 3.3B in 2013 generates $600 million/year in revenue in 2013 Estimated value 2-2.5 B in 2005

9. 9 Webcasting MLB Network in 2009 Estimated value 1 B in 2015 Other professional sports leagues followed NFL, NBA, NHL 2008 Olympics NBC 2600 hr online coverage, live streaming Technology improve fan experience Virtual signage technology by Sport Vision and Princeton Video Image: yellow first-down line TrackPass, PitCommand in NASCAR

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12. NFL Game Pass 12

13. NBA League Pass 13

14. NHL GAMECENTER 14

15. College sports: Big Ten Network 15

16. 16 Smart phones App in apple/android systems MLB At Bat NFL, NBA, NHL

17. 17 Satellite radio Satellite radio, potentially billion-dollar business Live broadcast of every game, home announcers Local radio stations may suffer Listen to favorite stations anywhere Major provider of background music in stores/restaurants SiriusXM in US Sirius and XM merge in 2008 ~ 20 M subscribers in 2010 Solaris Mobile in Europe EUR RADIO in 2011, a new, free, pan-European digital satellite radio demonstration platform which serve the European Union region

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20. RACEVIEW in NASCAR 20

21. 21 Not so valuable? Board of Control for Cricket in India failed to attract bid for mobile and internet rights Asking US 405 K for home games in 2011-14

22. Social media September 2013, NFL agree to use Twitter to distribute short-form video content. December 2013, Facebook acquired SportStream, a start-up company that specializes in analyzing social media mentions of sport enables users to aggregate, filter and display “real-time” data help people connect with their passion around sports 22 http://www.sportbusiness.com/sportbusiness-international/facebook-agrees- deal-take-over-sportstream

23. 23 New forms of media-fantasy sports Started with fantasy baseball Spread to other sports: NFL, NBA, NHL, NASCAR, soccer, golf, tennis… Estimated 19.4 M active players in US and Canada in 2007 > 34 M at least play a fantasy sports game 2 M teenagers, comfortable with new technology Follow several games/teams Perfect strategy to develop market for multi-platform and comprehensive content services Few direct revenue from fantasy sport, but it help to establish strong brand awareness Internet help to spread the popularity Newspapers, official/team websites, fantasy-dedicated websites

24. 24 Video games Key source of revenue Key fan-development tool NFL receive 60 M/year for EA Sports’ Madden National Football League Video games featuring minor sports Converting a game player into a game watcher Arena Football, Bass Fishing

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26. 26 Internet information sources TV Sports Markets newsletter http://www.tvsportsmarkets.com/ http://www.tvsportsmarkets.com/ Sport business news: http://www.sportbusiness.com/news