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A Presentation by Karl Bistany Future Media Services - sportcentric

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Revenue Generation<br />

Thinking Out of the Box<br />

A <strong>Presentation</strong> <strong>by</strong><br />

<strong>Karl</strong> <strong>Bistany</strong><br />

<strong>Future</strong> <strong>Media</strong> <strong>Services</strong><br />

Contact: karl@fmstv.com<br />

+44 (0)870 608 1818<br />

Thursday, 26 November 2009


The Revenue Landscape<br />

Hosting and Ticketing<br />

Revenues<br />

Commercial<br />

Revenues<br />

Event<br />

Sponsorship<br />

and<br />

Advertising<br />

TV Content<br />

Exposure and TV Revenues<br />

Thursday, 26 November 2009


Big Boys Game?<br />

Major rights holders only challenge is how to maximise revenue and ensure<br />

future growth - revenue generation in itself is not a challenge<br />

RFP, ITT’s MGs -all tools of the “in demand” rights holders but what of the smaller<br />

IFs?<br />

Broadcasters not clamouring to acquire rights<br />

On air exposure limited<br />

Global reach a challenge<br />

Advertisers apathy<br />

Thursday, 26 November 2009


Back to Basics - Key Objectives<br />

Generate Revenue (media rights, sponsorship, advertising and event<br />

hosting and ticket sales)<br />

Grow the sport (popularity)<br />

Grass Roots (participation)<br />

Thursday, 26 November 2009


If not TV Rights Then What?<br />

Hosting and Ticketing<br />

Revenues<br />

Commercial<br />

Revenues<br />

Event<br />

Sponsorship<br />

and<br />

Advertising<br />

TV Content<br />

Exposure and No TV Revenues<br />

Thursday, 26 November 2009


If not TV Rights Then What?<br />

Give the broadcasters what they want<br />

VNRs<br />

Short Highlights<br />

Extended Highlights<br />

Digital Offerings<br />

Thursday, 26 November 2009


Community Movements Present a Challenge and Opportunity<br />

Community<br />

On Demand<br />

On Demand<br />

Linear network<br />

Past<br />

Source: Martin Sorrell WPP<br />

Thursday, 26 November 2009<br />

Linear network<br />

Present<br />

Linear network<br />

<strong>Future</strong>


Small Is Beautiful<br />

Changing Consumer Patterns<br />

The digital revolution fragments audiences and creates communities<br />

passionate about their areas of interest making traditional linear<br />

broadcast offerings a far weaker proposition (except for elite sports<br />

content)<br />

Sports governing bodies have communities that are very passionate<br />

about their sport - you are in the business of sport and passion<br />

Advertisers and sponsors are now seeking means <strong>by</strong> which they can plug<br />

into these passionate communities that represent not only today’s<br />

consumers but also those of tomorrow.<br />

Consumers must be addressable = high c/000 (CPM)<br />

Thursday, 26 November 2009


Small Is Beautiful<br />

Changing Consumer Patterns<br />

c/000 or CPM is the advertising industry common measurement of<br />

media cost.<br />

CPM estimates the cost of 1000 views per advertisement or similar<br />

offering<br />

In the digital environment CPM is much higher as audience is<br />

identifiable and quantifiable<br />

Example: ITV (UK) Broadcast CPM £4 v On-line Video Ad CPM<br />

£35-50<br />

Thursday, 26 November 2009


Small Is Beautiful<br />

Changing Consumer Patterns<br />

Thursday, 26 November 2009


Small Is Beautiful<br />

Changing Consumer Patterns<br />

Traditional above the line advertising severely challenged<br />

Digital media can deliver an addressable audience with<br />

guaranteed views/action/acquisition<br />

Sports can deliver passionate communities with prolonged<br />

viewing sessions (unlike YouTube style snacking)<br />

Harness your community and monetising it becomes a reality<br />

Thursday, 26 November 2009


Small Can Become Big<br />

40,000<br />

10,000<br />

60,000<br />

20,000<br />

30,000<br />

50,000<br />

15,000 100,000<br />

Thursday, 26 November 2009


Small Can Become Big<br />

15,000<br />

30,000<br />

60,000<br />

20,000<br />

100,000<br />

50,000<br />

40,000<br />

10,000<br />

Thursday, 26 November 2009


Small Can Become Big<br />

15,000<br />

60,000<br />

325,000<br />

30,000<br />

40,000 20,000<br />

100,000 10,000<br />

50,000<br />

Thursday, 26 November 2009


Thinking in the Box<br />

Is Your Product Right?<br />

Don’t be afraid to innovate<br />

Identify revenue drivers and stakeholder’s needs<br />

Venue choice<br />

Host nation appeal<br />

Sponsors needs<br />

Competition format<br />

Thursday, 26 November 2009


Shaping Your Product<br />

Pool A Pool B Pool C Pool D<br />

Host Rank 1 2 3<br />

7 6 5 4<br />

8 9 10 11<br />

15 14 13 12<br />

Thursday, 26 November 2009


British Gas and British Swimming - a Case Study<br />

Beijing British swimming success attracted major long term sponsorship from BG<br />

But a huge challenge to maintain the sport’s profile between Olympics and World<br />

Championships<br />

Quicken <strong>Media</strong> hired to deliver a multi platform integrated media strategy for the<br />

sport and its new sponsor<br />

The strategy was built around three things:<br />

a clear understanding of rapidly changing media consumption habits<br />

deep knowledge of the “art of the possible” in the UK media landscape<br />

delivering an interlocking layered set of media solutions on all platforms to<br />

deliver improved brand awareness for the sport and sponsor<br />

Thursday, 26 November 2009


British Gas and British Swimming - a Case Study<br />

So far... the strategy has resulted in...<br />

A new major swimming tournament to be shown on the UK’s premier<br />

network BBC1<br />

And in principle agreement <strong>by</strong> Channel 4 to broadcast a 12 part swimming<br />

lifestyle TV series in 2010<br />

A new online strategy - outward facing, a new swimming website is to be<br />

launched in a groundbreaking partnership with the BBC sport site. Designed<br />

to drive increased participation in the sport through star endorsement<br />

Contact. Andrew Thompson at Quicken <strong>Media</strong> +447802 168237<br />

Thursday, 26 November 2009


One Last Thought...<br />

How many of you have made available a<br />

device specific application?<br />

Thursday, 26 November 2009


End<br />

A <strong>Presentation</strong> <strong>by</strong><br />

<strong>Karl</strong> <strong>Bistany</strong><br />

<strong>Future</strong> <strong>Media</strong> <strong>Services</strong><br />

23 Chelsea Wharf<br />

15 Lots Road<br />

London<br />

SW10 0QJ<br />

+44 (0)870 608 1818<br />

karl@fmstv.com<br />

Thursday, 26 November 2009

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