Read The Times Australia

Daily Bulletin

Why sports broadcasting could change the rules on sponsored content

  • Written by: The Conversation Contributor

As media businesses the world over struggle to identify successful new business models, sponsored content has been pounced on as one potential solution. The model – where brands pay media organisations to produce content related to their product – is increasingly being applied to sports broadcasting.

Sport is an expensive media product. A recent estimate of the market found media organisations were paying $US28billion, per year, for sports rights. Except that figure was based solely on professional sports, and therefore does not factor in deals like the US$7.65 billion that American network NBC paid the International Olympic Committee for Olympic rights until 2032.

Add in the costs of dozens of expert staff, high-priced commentators, expensive broadcast equipment and new technology, the production of sport is a pricey endeavour.

But it had seemed sports value to broadcasters – that it is a product best watched live and delivering a large, diverse audience – would protect it from the problems that have plagued other media content in the 21st century.

The declining value of sport

However, the once infallible attraction of sport may be faltering. In the United States live sport hasn’t prevented falling pay television subscriber numbers, and some have suggested the ballooning cost of sports broadcast rights is to blame.

While the advertising rates for the NFL’s annual Superbowl continue to climb, there is anecdotal evidence that sport is not the advertising bonanza it once was for free-to-air television.

In Australia last year, Nine Melbourne chief Ian Paterson told a conference it was unlikely the advertising sold for sports timeslots would cover the price spent on the rights. Instead, sport was recast as a promotional vehicle. Paterson told Crikey:

“Through sport broadcasts, we attract advertisers and people, and are able to present to them the rest of what we do.”

The sports broadcasting media business model is not shattered, but there may be cracks. Which is why sports organisations are increasingly working with sports broadcasters, and sometimes instead of them, to deliver their product to the people.

Sports organisations as media providers

It’s a requirement of most major sports events that there is a host broadcast feed, with unbiased commentary, pushed out to television stations globally. While existing broadcasters used to produce these feeds, more sports organisations are taking control.

Tennis Australia started producing the Australian Open’s world feed in 2014 and its chief executive Craig Tiley told The Australian Financial Review:

“Having control over the production of the broadcast is atypical in terms of Australian sports. But it has allowed us to package the broadcast for particular markets and move quickly to provide different feeds to markets overseas.”

However, this isn’t usual practice for regular, professional sports leagues.

In 2015, the Australian and New Zealand netball competition changed that. Unable to secure a broadcast deal, the ANZ Championship instead paid for its league to be shown on free-to-air television in Australia. By controlling the broadcast, netball also gained greater power to direct the narrative. Which is where questions of ethics enter.

Ethics in sports broadcasting

The defining ethical issue with sponsored content in news is that it butts up against one of the defining values of journalism, that journalists act as the fourth estate. In this role they keep institutions honest and tell the public what it needs to know.

Sponsored content is in conflict with these fundamental elements of journalism, as it means the journalist is no longer unbiased and independent. When considering sports organisations as content providers the key question then becomes, do sports consumers actually expect sports broadcasts to be acts of journalism? Do they mind that the telecast is produced by a sports organisation with a vested interest in the wellbeing of that code?

It’s a tricky question to answer because consumers of sports broadcasts may be unaware that these subtle changes have been made, that they are watching a feed paid for by a sports organisation.

However, academic research concludes there are multiple reasons fans watch sport, but mostly they are based on the emotional reward, the entertainment value, the sense of companionship and an ability to escape.

Generally, consumers do not watch sports broadcasts to be informed. They watch to be entertained. If this is the case, the sponsored content model may attract less backlash in sports broadcasting than it has in other media products.

The future: sports organisations as rights-holders

But perhaps the most important point to consider is not whether sports broadcasters will continue to publish content created by sports organisations, but whether sports organisations will continue to sell their rights.

Many professional sports organisations globally have realised the economic potential in creating and broadcasting their own content. Examples include Major League Baseball’s MLB TV, Manchester United’s pay television channel MUTV, and the Australian Football League’s AFL Media. All these organisations deliver premium content directly to consumers, often for a price.

Broadcasting rights continue to be the major revenue stream for professional sports organisations and the audience mainstream media provide is still useful, so it is unlikely sports organisations will become the sole broadcasters of their own product. But if it makes business sense for sports organisations to become their own producers, get ready for a whole new ball game.

Authors: The Conversation Contributor

Read more http://theconversation.com/why-sports-broadcasting-could-change-the-rules-on-sponsored-content-54329

Business News

Designing Eco-Friendly Custom Water Bottles for Your Next Event

The Evolution of Sustainable Event Merchandise Event planning has undergone a massive transformation over the last decade. Gone are the days when organizers could hand out cheap, single use plastic...

Daily Bulletin - avatar Daily Bulletin

Why Choosing a Professional Florist Melbourne Makes Flower Delivery Impactful

Flowers have a great power to speak when humans cannot express their feelings with right words. Flowers are the best gifts when you are celebrating a birthday or welcoming a newborn child into your fa...

Daily Bulletin - avatar Daily Bulletin

The Business Case for Choosing Australian Fabricators Over Imported Alternatives

For a long time, you might have defaulted to overseas suppliers when sourcing fabricated metal components for a project. The unit price was lower on paper, and the maths seemed straightforward. That...

Daily Bulletin - avatar Daily Bulletin

Australian organisations are relying on business continuity plans built for a far more predictable world

Tariff escalations, supply chain fragility, geopolitical events, and the ongoing threat of cyber disruption have reshaped the risk environment facing Australian organisations. The problem is that ma...

Daily Bulletin - avatar Daily Bulletin

How to Rent a Car for Uber in Melbourne: What Every New Driver Needs to Know

Starting out as an Uber driver in Melbourne is not as complicated as it sounds but getting the vehicle right is where most new drivers get stuck. Uber has strict requirements around vehicle age, condi...

Daily Bulletin - avatar Daily Bulletin

When Should You Speak to a Lawyer About a Legal Issue?

Legal issues can begin with a simple question, then become harder to manage once formal steps are involved. Many people wait until a matter feels urgent before seeking guidance, even though earlier ...

Daily Bulletin - avatar Daily Bulletin

The strategic rise of Bali as Australia’s next essential healthcare support hub

As Australian healthcare providers grapple with unprecedented operational bottlenecks, a new nearshore model is quietly transforming patient care delivery. Forward-thinking organisations,  including...

Daily Bulletin - avatar Daily Bulletin

Cost Savings and Benefits of Using Used Pallets in Logistics

In today’s competitive logistics and supply chain industry, businesses are constantly looking for ways to reduce operational costs without compromising efficiency and reliability. One of the most prac...

Daily Bulletin - avatar Daily Bulletin

How Fulfilment Services in Australia Help Businesses Scale Efficiently

The growth of e-commerce and modern retail has transformed customer expectations. Consumers now expect fast shipping, accurate order processing, and seamless delivery experiences regardless of where...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

Moving Out of a Rental in Melbourne? A Practical Moving Checklist

Moving out of a rental in Melbourne is one of those things that always feels further away than it ...

Why a Cordless Rebar Tying Machine Is a Smart Investment for Australian Construction Projects

Tying reinforcing steel by hand means spending hours bent over while making the same twisting moti...

How to Get a Document Notarised in Sydney: What to Bring, What It Costs and How Long It Takes

If an overseas bank, embassy, university, employer or land registry has asked you for a notarised ...

The 2026 Used-Car Market

For a few strange years, the used-car market rewrote its own rules. Supply shortages sent second-h...

Why CCTV Alone Is Not Enough for Modern Business Security

Cameras are usually the initial step that companies take to strengthen their physical security. If...

Why Every Workplace Should Take Emergency Preparedness Seriously

Emergency planning is one of those things many workplaces know they should think about, but it oft...

Why Clearer Communication Still Matters in a Digital-First Business

It’s never been easier for businesses to communicate, but that doesn’t mean they’re always communica...

What Happens After You Lodge a BYDA Enquiry? The Step Most Excavation Projects Miss

Every excavation project in Australia — from a backyard deck footing to a multi-storey commercial bu...

How to Choose the Right Dentist on the Gold Coast

Finding a dentist you trust is one of those decisions that quietly affects your health for years, ye...