Page 31 - AdNews Magazine Jul-Aug 2020
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 “At least the major deals have now been done which will ensure the rights the broadcasters have are now what they really need and will give a lifeline to the sporting rights holders who rely on broad- cast revenue as their main source of income.”
There’s no denying the gap- ing hole the absence of sport left in our lives during the past few of months. We took the weekly social ritual of watching sports with friends, alone, or in a stadium, for granted. But as soon as it was taken away, we began to under- stand exactly how much it meant to many of us.
“And when it comes back with fans fully allowed back in stadiums, it will be extraordi- nary in my view,” says Martin. “We have already seen this in NZ with crowds flocking back to Super Rugby games. When the door opens for this to happen in Australia, I expect audiences to go way up past where they were pre-COVID-19.”
Nicole Prior, chief media part- nerships officer at media agency UM, points to the anticipation of sport’s to screens across Australia.
“The connection viewers and consumers have is attractive to brands as the connection is across many platforms ... via broadcast, on-ground, social engagement, integration, bespoke content and even gaming,” she says. “It is important for the connection to be authentic; the more brands can play an authentic role in consum- ers, the greater the connection.”
“Utilising sport plays a key role in many clients’ marketing mix, especially in the sponsorship and integration space, as it provides a strong platform for them to lev- erage their own existing non-me- dia relationships to extract better value beyond just broadcast.”
Brands get a greater connec- tion with consumers when they align with values, says Prior.
“Sport is a great passion point for Australians across all ages and allows brands to connect with an engaged audience,” she says.
“Sport has a halo effect, not only the programming surround- ing it but also as a platform to promote other programming.
“Lockdown has shone a light on two things: our collective love of sport and the gaping chasms in our society.”
Steve Martin,
global CEO, M&C Saatchi Sport & Entertainment.
Summer sport specifically draws audiences during a period when tradi- tionally audiences are less inclined to be viewing and be out of the home.” Mark Echo, national planning director at Bohemia, says there is a
premium for passionate audiences.
Look at NRL and AFL coverage within the news, even when games
weren’t being played, he says.
“It shows how passionate we are as a nation around specific codes and
teams as they are part of our identity as individuals and as a nation,” he says. “Sports are absolutely valuable to brands because a successful brand is basically trying to build similar traits to a successful sporting team:
highly engaged fans, loyalists with a lifetime worth of engagement. “Sporting fans are highly engaged and are passionate about the code and the decisions that are made. Brands would love audiences to be wear- ing their merchandise and ‘advertising for them’ for free; brands would love weekly engagement with the games with their audiences for 80 or
90 minutes per session.
 Sports Rights changes and listings performance
Exhibit 1: There have been significant savings negotiated for the FTA and Cable sports rights; however the digital streaming rights are unchanged for Telstra.
   GS Sports Rights Analysis
 FY20 AUD$m
FY21 AUD$m
FY22 AUD$m
Beyond
Nine Entertainment
         NRL
Old
New
Saving
Seven West
AFL
Old
New
Saving
News Corporation
AFL
Old
New
Saving
NRL
Old
New
Saving
Telstra
AFL
Nochange
NRL
Nochange
118 120 123
65 93 95
No extension announced.
SWM signed a 2 year extension, we believe at CPI growth vs. original deal
We believe NWS initial proposal was rejected. Some risk to extension
NWS signed a 5Y extension to its deal, we believe at c.A$140mn p.a.
No extension announced. We see significant risk to extension in current form.
Telstra will be blocked from streaming NRL from 2023.
                -45%
150
-23% -22%
150 150
                  110 127 127
-27% -16% -16%
218 224 231
191 198 198
-12% -12% -14%
                                                  185
120
-35%
190 196
138 141
-27% -28%
                     50 50 50
20 20 20
                               Source: Company data, Goldman Sachs Global Investment Research
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