The sale of sports broadcasting rights is one of the fastest ways for media companies to stay relevant. But the cost of these rights has skyrocketed in recent years, raising antitrust issues. What’s the future of these rights? This article will address the current trends and potential future challenges in this space.
Online sports broadcasting is becoming less popular
Traditional media companies are losing market share to online sports broadcasting rights as viewers shift to alternative platforms. The UEFA Champions League, for instance, has teamed up with Facebook to stream matches live. This has attracted millions of viewers. While this move may be temporary, there are implications for media companies.
While the appetite for broadcast 해외스포츠중계 games is still substantial, viewers now prefer more bite-sized content. Both options offer value to fans. However, there are some potential pitfalls for traditional sports broadcasters. The rise of subscription video on demand platforms could be a game changer. While both online and offline broadcasters are likely to survive for the time being, fragmented distribution rights are likely to lead to consumer frustration.
As a result, sports organizations are battling the threat of digital piracy. Because sports coverage is so temporary, interest in sport content peaks before the game is completed and declines dramatically after the outcome is known. This makes it critical to crack down on digital piracy and create a modern legal framework for right owners. Outdated legislation prejudices the interests of broadcasters and negatively affects the financial well-being of sports organizations.
The cost of sports broadcasting rights has ballooned in recent years
The cost of sports broadcasting rights has skyrocketed over the past few years. The NFL, the NBA and other major leagues are the top earners, bringing in around $15.5 billion in revenue per year. However, the price of sports rights has inflated in recent years, leading observers to question when the bubble will burst.
The NFL secured a $100 billion sports broadcast deal this year despite dwindling youth engagement with live TV sports. Cord-cutting, demographic shifts and the migration of mainstream entertainment to the digital sphere have all increased the value of sports broadcast rights. These changes have resulted in the re-negotiations of the most lucrative sports broadcast deals in history.
While sports broadcasting rights are important to the American media industry, they are costly to deliver. In addition to paying for the rights, networks must pay the fees to distribute the content. Moreover, because 99% of sports action is watched in real-time, the ad impression ratio of sports broadcasting rights is high.
The sale of sports broadcasting rights raises antitrust issues
The sale of sports broadcasting rights continues to draw attention from antitrust authorities around the world. Recently, the Italian Competition Authority fined media agencies for coordinating bids. Meanwhile, investigations have opened in the US and Africa. In Africa, the Competition Commission called the Confederation of African Football, the governing body of football, to attend a hearing to address antitrust concerns.
Although the sale of sports broadcasting rights is legal under EU competition law, there are a number of key conditions that must be met before it is approved by competition authorities. These conditions include: the sale must be based on an open tender, offers should be different, and no single buyer can acquire all packages. Furthermore, the sale must be limited in time. Some EU member states have codified these conditions in their legislation.
A significant concern with the sale of sports broadcasting rights is the antitrust concerns raised by the sale of broadcasting rights. While COMESA has a relatively new competition enforcement system, the sports sector is still a new area for the agency. Hence, companies could face duplicate proceedings and conflicting decisions. For example, the sale of rights to a particular sport could subject a company to multiple fines.
The future of sports broadcasting rights
The future of sports broadcasting rights is in flux. Traditional broadcast media are under pressure to reduce their costs, and new platforms are gaining traction for their content. Regardless of how new media platforms get their content, they usually rely on sports rights to attract audience. According to Matthew Ball, former head of global strategy at Amazon Studios, any company with platform ambitions looks to sports rights as a way to expand its reach.
In the near future, the future of sports broadcasting rights will depend on the ability of rights holders to capture their fair share of revenue. While they’re still able to sell sports content directly to fans, rights holders are now seeking to close long-term deals with super-rich media networks, which tend to purchase packages for multiple sports events. In addition, many contracts will expire soon, presenting new parties for renegotiation. This will drive up prices for sports rights.
As the number of sports fans has grown, broadcasting has become a lucrative business. While some initially worried that broadcasting would reduce spectators at stadia, it has actually led to increased viewership and fan bases. Broadcasting sports has also enabled sport companies to gain more revenue through advertising. As a result, the cost of sports broadcasting rights has increased, and new outlets are trying to enter the field.