Sure, Seven Botched Its Olympic Live Stream But It Will Become The Norm For Sport Fans
In this opinion piece, IBIS World’s Nick Tarrant says with broadcasters paying top dollar for the rights to sports, it will change how we watch it and how we pay for it, too…
On 5 August, the 2016 Summer Olympics kicked off in Rio de Janeiro, Brazil, with Channel Seven reportedly paying around $150 million for the Australian broadcasting rights. Big-ticket sporting events like the Rio Olympics are becoming increasingly important to Australian television broadcasters, as changing viewership patterns and declining advertising revenue force them to rethink their broadcasting strategies.
Unlike other TV staples, such as sitcoms and dramas, sporting events are typically watched live. This provides scope for networks to shore up advertising sales, with Channel Seven expected to generate more than $100 million from its Rio Olympics coverage.
Australian free-to-air television broadcasters have struggled over the past five years, with industry revenue expected to have fallen at an annualised 2.5 per cent over the five years through 2015-16, to total $4.9 billion.
The fragmentation of the media landscape has progressively lowered network ratings, as viewers consume media on a growing array of devices, such as phones, tablets and laptops. This trend has reduced television viewership numbers, with Rio’s opening ceremony watched by just 1.6 million viewers in Australia, the lowest free-to-air Olympics opening ceremony audience since the OzTAM ratings system began.
The expansion of digital mediums has created an oversupply of advertising space, pushing down per-unit television advertising revenue. Digital firms like Google allow advertising firms to directly target consumers based on quantifiable characteristics such as their search history.
Television broadcasters have also faced growing competition from IPTV providers, such as Netflix, and from illegal downloads, which circumnavigate the need for broadcasters altogether. Although the pay television industry has managed to grow at an estimated 1.2 per cent over the past five years, as its subscription revenue has offset declining advertising revenue, the low growth rate reflects the industry’s exposure to many of the same issues facing free-to-air broadcasters.
In response, many free-to-air and pay television networks have focused on obtaining sports broadcasting deals. High profile sporting events like the AFL Grand Final or the Olympics can provide a major boost to network ratings, and the emphasis on watching these events live allows networks to charge a premium for advertising slots.
Live sports can also provide a halo effect for television networks, as the higher viewership during sports events allows the network to cross-promote other upcoming shows, helping them gain a larger audience across other time-slots.
Sporting events are also more difficult to broadcast online than other television programs, due to the emphasis on watching them live. Although Channel Seven has offered both free and subscription-based streaming coverage of the Rio Olympics, its issues have plagued its online services for the first few days of the games, with many users taking to social media to complain about slow download speeds and errors.
Limitations in Australian internet speeds and quality mean that demand can quickly overwhelm online platforms like Channel Seven’s. This means that many viewers end up watching live sports on traditional television networks, boosting ratings.
However, as Australian internet infrastructure improves with the rollout of the NBN over the next four years, the streaming of sports coverage is expected to become more important to network revenue. Subscription-based streaming, such as Channel Seven’s Rio Olympics coverage, is likely to become the norm as both free-to-air and pay television networks attempt to use the appeal of live sports to shore up revenue streams.
Please login with linkedin to comment
ARN Designworks Failure Fast Ed Fetch TV Olympics 2016 programmingLatest News
TV Ratings 29/4/24: Farmer Wants A Wife And Lego Masters Lock Horns In Overnight’s Battle
Who won the battle of the big guns - Lego or Farmer Wants A Wife? One thing's for sure, it wasn't Great Train Journeys.
Nielsen Data Reveals Brands Spending Big To Attract Aussie Tourists
Nielsen Ad Intel data has revealed that the travel and tourism industry spent more than $153 million on advertising in Australia in Q1, 2024 – an increase of 8 per cent from the previous quarter, with TripADeal the biggest spender, followed by Virgin Australia, then the Flight Centre-owned Ignite Travel. As many Australians return from […]
IAS Awarded New Responsible AI Certification From Trustarc
Integral Ad Science tossing up over the mahogany or teak frame after being awarded TRUSTe Responsible AI Certification.
AWARD Calls For Hall Of Fame Nominations
B&T's noms for AWARD Hall of Famer includes Louis The Fly, Chums' talking Scottie dog & Mumbrella's coke dealer.
Havas Red Wins PagerDuty PR Account
Havas Red wins PagerDuty's PR. And judging by B&T having to Google PagerDuty, it could probably do with some help.
ACA Poised To Release Results Of 2023 Create Space Census
The Advertising Council unveils date for its census results. Hey, why not coincide it with an office lamington drive?
Why Fear Is Essential To Fernando Machado’s Creativity
If there's anyone B&T loves to chat to, it's fabled marketer Fernando Machado. Although the 5am time difference sucks.
Superdry Drafts AFL’s Patrick Lipinski For New Campaign
B&T fast regretting that poncho we just bought, as it appears the puffer jacket returns as winter's hottest trend.
Elon Musk vs eSafety: Legal Experts Warn That ‘Rogue Operators’ Like X Are Unlikely To Win Federal Court Battle
If this legal stoush boils down to who can afford the better lawyers, B&T's backing Mr Musk every single time.
Amy Poehler Presents First Look At Inside Out 2 At Vivid Sydney 2024
Vivid isn't about freezing your arse off while looking at lights on a wall, as you'll learn with this Amy Poehler news.
Mutinex Launches DataOS Improving Data Warehousing & Quality For MMM Marketers
Work in marketing? Does your data warehousing resemble a teenager's bedroom? Here's a Marie Kondo-approved read.
IMAA Celebrates Three Years Of Group Trade Credit Insurance Deal
Are you a struggling indie? Thinking of firebombing the building for the insurance money? IMAA has you covered here.
Adam Sandler Seemingly ‘Slams’ Ukraine In Pro-Kremlin Campaign
Host of A-list celebs caught slamming Ukraine's president. Thankfully it does have the Milli Vanillis about it.
New Marketing & Comms Agency For Defence & Aerospace Industry Takes Flight
As painful as this is to say, judging by current world events, the bomb & tank industries must be in rude health.
Opinion: Do Punters Want To Wear Your Brand?
This columnist asks do punters want to wear your brand? B&T'd say yes if you were Nike, no if you were Anusol.
WiredCo Builds Portfolio With Appointment To G.J. Gardner Creative Account
WiredCo 'cements' its relationship with home builder G.J. Gardner. Did you see what B&T cheekily did there?
Keep Left Reveals ‘Strategically Assembled’ Strategy Team
PR agency announces serious upgrade to its strategy offerings. Thankfully stops short of calling them Delta Force.
Initiative’s Michael Chong: What Do Mountaineering, Media & Marketing Have In Common?
Yes, B&T's running an inspiring mountaineering story. And this from people who won't come to work if the lift's broken.
CMOs To Watch: DrinkWise’s Part Time Builder, Part Time Marketer, Nathan Kent
Despite his love of DIY, B&T can't see Drinkwise's Nathan Kent in any "you can get it" VB ads anytime soon.
Mari Kauppinen Pops Up As MD Of ITA Group ANZ
Mari Kauppinen set to bring some zing, some song and some va-va-voom to her new role at ITA Group.
“It Is Getting Better But At A Glacial Speed”: PR Guns On Shaping A More Diverse Media Industry
B&T has a love-hate relationship with PRs. Love if they take us for a boozy lunch. Hate when you send releases as PDFs.
GoTransit Media Group Unveils The Power Of Regional Transit Advertising
Need reminding lots of people live outside the Surry Hills enclave? It's the regionals &, yes, they have almond milk.
Slew Of Promotions For Special Senior Creative Leadership Team
Special announces a slew of promotions in its creative team. And, no, they didn't order Uber Eats to celebrate.
Kantar: AVOD Subscribers Double In 12 Months
Study finds Aussies happy to watch ads on their streaming services. Or, are they just putting the kettle on more often?
Val Morgan Digital Exceeds All Campaign Uplift Benchmarks Via A 12-Month Brand Metrics Study
Val Morgan announces it has exceeded all its campaign benchmarks. Still can't get under an hour for the City To Surf.
Australian Retirement Trust launches monster of a campaign, by M&C Saatchi and Bohemia
Get offered a seat on the bus today? Knees creak like an old pirate's galleon? This retirement ad may be of interest.
Print Audits To Discontinue As Audited Media Association Of Australia Pivots To Support Influencer Marketing
Is it just B&T or are audits in the media industry suddenly becoming murkier than Roxy's husband's tax returns?
News Corp Australia Launches 2024 National Education Advocacy Initiative With Expanded Program
News Corp set to shine a light on the nation's schools in new series, giving illegal bikie gangs a well-earned rest.
Decoding The Consumer Maze: Urban List Report Reveals How Modern Shoppers Spiral From Discovery To Purchase
Latest report unravels a shopper's journey from the joy of discovery through to a nasty letter from a debt collector.
Cosmo Returns To Australia!
Ever get the feeling we've weirdly warped back to 1988 at the moment? Confirm it with the relaunch of Cosmo in print.
People & Culture Consultancy Human Kind Collective Launches To Plug HR Gap For Media Agencies
Does the very mention of HR have you struggling to remember last year's Christmas party? Get the sweats with this news.
‘We Want To Be A Growth Partner, Not Just A Media Buyer Or Someone That Makes Ads’ – Bohemia Boss On Agency’s Ambition
B&T's chatting with Bohemia boss Paul ‘Hutch’ Hutchison. Although we do think 'the dagger' a far superior nickname.
Initiative’s Geoff Clarke: ‘Youth Hits Targets With Enthusiasm, Experience Hits The Targets You Can’t See’
Initiative’s CCO Geoff Clarke on the value of experience in agencies. Not to mention quoting lines from Pulp Fiction.
The Iconic Teams Up With 5 Aussie Athletes For Latest Campaign
Fashion label brings in the athletes for new campaign, many of whom appear to have prepped with re-runs of Zoolander.
Seven West Media Secures New Director Of News & Current Affairs
After a tumultuous few weeks, Seven unveils director of news & current affairs. And B&T never uses tumultuous lightly.
Seven Network Expands NSW Sales Team With Two New Group Business Directors
Seven ramps up its NSW sales team. Both of whom are well versed in pronouncing Manu Feildel's croque-monsieur.