Thursday, April 2, 2020

Sports rights face interesting future

Grim news for sports with expectations of life post-coronavirus returning to high returns from the sale of television rights.

Global broadcasters have not been shuttered from the impacts of the pandemic and are all suffering from a loss of income and sponsorship.

That will have consequences in what television organisations can pay to secure rights for events.

The Times has reported an anonymous broadcasting executive who was certain there would be a lot less money for sport as companies coped with the consequences of lost revenue streams due to the Covid-19 outbreak.

On the world scene leading digital sports broadcaster, DAZN and the French pay-TV network Canal+ have said they will not pay rights holders so long as live games are suspended. The German Football League is in discussions with Germany's Sky company over how to find a solution there.

Britain's pay-TV rivals Sky Sports and BT Sport are reporting the loss of large numbers of subscribers due to the lack of live sports. If some of those subscribers decide not to return in the future, a smaller subscriber base means less money to compete in future television rights contests.

However, some hope may still exist and both media companies and sports bodies will be watching with interest as reports have surfaced saying 38 percent of males in the Gen Z and Millennial categories have said watching live sport with friends and families is what they most miss during the pandemic.

A Consumer Perception of Covid-19 report prepared by IMI's NextWave said there was 'pent-up demand' developing among fans and that led them to believe viewership would surge when live-action returns.

Media rights consultant Dan Cohen took a positive view and said demand was likely to be even higher when sport resumed and he didn't think sports officials should be too concerned about the impact on live rights income.

"If anything, networks will look to replenish their coffers by attracting new subscribers and by generating incremental advertiser dollars and nothing drives those pillars like live sports," he said.

"Live sports will be in such high demand that these valued assets will be cherished by their broadcasters," Cohen said.

He added clients near the expiry of their rights contracts should contemplate renewals with justified increases and to build in negotiated resolves to their renewals.

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