1. UNIT 1.3 Media Impact on Industry Growth

2. 1.3 History of SEM Media Impact on Industry Growth Media refers to a means of communicating a message to large numbers of people

3. 1.3 History of SEM Media Impact on Industry Growth First Media Broadcast of Olympics 1936 Olympics Broadcast by ABC radio Jesse Owens one of America’s greatest athletes of all time

4. 1.3 History of SEM Now, fans can follow athlete performances through Television Radio Internet Social Media National and local newspapers Magazines Industry specific journals Media Impact on Industry Growth

5. History of SEM Media Impact on Industry Growth Media rights (or broadcast rights) are fees paid by broadcast companies to sports or entertainment properties for the opportunity to provide live coverage of the property’s games and events on television, the radio or the Internet Deals can take place on a national (think ESPN’s Monday Night Football vs. the local channel that broadcasts your area NBA games)

6. History of SEM Why are media rights important to sports and entertainment properties? In a word… REVENUE! Broadcast companies pay billions of dollars for these deals Media Rights

7. Revenue Opportunities In the early days of team sports, concessions and tickets provided the only real source of revenue for team owners History of SEM

8. Today, because of the numerous multi- media opportunities available, organizations have more options available to them to drive revenue. Revenue Opportunities

9. –National television contracts –Local television contracts –Cable television contracts –Sale of radio rights –Streaming Internet audio –Online revenue –Team specific publications (including digital)

10. History of SEM Many media rights deals provide exclusive coverage rights NFL’s deal with DirecTV no other television network can broadcast out of market games in their respective geographic markets. In other words, if you are a EAGLES fan living in CALIFORNIA, you would need to order DirecTV for the opportunity to watch Eagles games in your home each week. Media Rights

11. 1.3 History of SEM DirectTV’s exclusive agreement for broadcast rights for out of market NFL games was extended in 2014 for another 8 years (2022) at a reported $1.5 billion per year Media rights examples Satellite TV

12. Commercial establishments pay far more based on their maximum occupancy. A bar or restaurant with a fire code occupancy between 51-100 will pay $2,314.00 for Sunday Ticket in 2015 (in addition to television package subscription charges, high-definition access fees, and other charges), while the largest establishments—like Nevada hotels—are charged more than $120,000 per year for Sunday Ticket Media Rights

13. History of SEM Media rights contracts are not reserved for national broadcasting companies as sports franchises work to maximize revenues by selling regional broadcasting rights Time Warner Cable paid a reported $3 billion for exclusive rights to broadcasts Los Angeles Lakers games in the L.A. market for the next twenty years, starting with the 2012-13 season Media Rights

14. History of SEM NBA In 2007 the NBA extended its deals with TNT, ESPN and ABC through the 2015-16 season Generates over $930 million per year in revenue for television broadcast rights Media rights examples Network/Cable TV

15. History of SEM NCAA Basketball Advertisers have spent $4.55B during CBS' coverage of the men's NCAA basketball tournament over the past decade Media Rights Network/Cable TV

16. History of SEM Hockey NBC renewed hockey deal in 2011 worth nearly triple the previous rights deal because overall NHL television ratings in the US increased by 84% over the last four years 2011 Winter Classic was the most- watched regular season hockey game in the U.S. in 36 years Media Rights

17. LESSON 1.3 History of SEM In 2011, NBC won a bidding war to retain its rights to broadcast the Olympic Games through 2020 for $4.38 billion Also in 2011, ESPN signed a deal reportedly worth nearly $500 million over the next 12 years for the exclusive broadcast rights of Wimbledon Media rights examples Network/Cable TV

18. LESSON 1.3 History of SEM XM radio’s deal for MLB broadcast rights was signed in 2005 for $650 million Media rights examples Satellite Radio

19. LESSON 1.3 History of SEM In 2009, the NFL extended its deal with Westwood One as its exclusive network radio partner in a deal worth over $30 million Media rights examples Network Radio

20. 1.3 History of SEM RATINGS Radio, cable and broadcast television programming measure their effectiveness through ratings, which are expressed as a percentage of the potential TV audience viewing at any given time Companies want to invest in advertising that will reach as many consumers as possible and sports and entertainment events provide an effective platform for advertisers to do that

21. Media Ratings According to Nielsen (a company who measures ratings): "Ratings are used like currency in the marketplace of advertiser-supported TV. When advertisers want a commercial to reach an audience (target market), they need to place it in TV programs which deliver an audience. The more audience a program delivers, the more the commercial time is worth to advertisers." History of SEM

22. Why are media ratings important to BROADCAST COMPANIES? Media Ratings History of SEM Without ratings, broadcast companies would have a difficult time selling advertising and sports/entertainment programs would not be able to command million dollar rights fees Ratings will fluctuate from year to year, but a ratings increase or decrease will have an impact on the sports property and broadcast company

23. History of SEM Media Ratings Basically, a rating refers to the number of households or people tuned into a particular radio or television program at a specific time NBC’s coverage of the 2012 Olympic Games Opening Ceremony registered the best overnight rating for a non-U.S. Olympic Opening Ceremony ever, earning a 23.0 overnight rating according to The Nielsen Company

24. LESSON 1.3 History of SEM Media Ratings Nielsen can identify peak hours in which the most people are tuned in to watch or listen. Viewing of NBC’s coverage of the 2012 Opening Ceremony peaked at 8:30 p.m. when 45.73 million viewers were watching

25. 1.3 History of SEM In 2012, the Super Bowl set a record for American television viewing for the second year in a row when the Nielsen Co. estimated 111 million people watched the New York Giants outlast the New England Patriots in Indianapolis (the 2013 Super Bowl between the Baltimore Ravens and San Francisco 49ers clocks in as the third most watched program in US history) Media Ratings

26. LESSON 1.3 History of SEM 1921 - First ever baseball game broadcast on radio VS 1935 - First full season baseball broadcast on radio (Chicago Cubs) 1946 - First major sports event on TV (Joe Louis Boxing Match) Media Milestones in Sports

27. LESSON 1.3 History of SEM 1954 - First sports exclusive magazine hits the stands Sports Illustrated was introduced 1970 - First Monday Night Football TV broadcast Media Milestones in Sports

28. LESSON 1.3 History of SEM 1995 – DirecTV and the NFL offer first subscriber based pay-per-view programming (NFL Sunday Ticket) 1999 – Major League Baseball broadcasts the World Series on the Internet 2002 – The pay-per-view boxing match between Mike Tyson and Lennox Lewis generates a record $103 million in sales Media Milestones in Sports

29. LESSON 1.3 History of SEM 2009 – CBS’ free online broadcast of the 2009 Men’s NCAA Tournament reaches an audience of 7.5 million Media Milestones in Sports

30. LESSON 1.3 History of SEM 2012 – NBC provides unprecedented LIVE coverage of EVERY Olympic event by streaming content online in addition to its traditional television coverage Media Milestones in Sports