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MMS773 Sport Broadcasting

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MMS773 Sport Broadcasting

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Course Code: MMS773
University: Deakin Business School

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Country: Australia

Part A. Sport Broadcasting Value Chain and Vertical IntegrationTASK: Describe a current or potential example of where a sport organisation or media organisation has implemented (or could implement) a vertical integration strategy within the sport broadcasting industry in Australia or overseas. You will need to be able describe both the pre- and post- scenarios (i.e. the situation prior to and after the actual or proposed strategy).
1) Firstly, provide a graphical representation of the Sport – TV Relationship Model within this sport prior to the change (or initiation of the vertical integration) taking place. Include a brief description of each organisation within the framework.2) Secondly, describe the vertical integration strategy that is being implemented (or could be implemented) by a sport organisation or media organisation. You should include how this action fits or aligns with the definition of vertical integration (e.g. Solberg & Helland, 2017), as well as a detailed description of the implications for; a) the sport broadcasting value chain in this example and b) other organisations identified in part 1 of this section.
Part B. Broadcast Analysis and Valuation
TASK:• Build and explain a timeline of your hour of broadcast footage and provide aggregate amounts of: a) sport content (game or match play), b) advertising time and c) other examples of time. (A diagram/table and short explanation is suggested and you are encouraged to use a high level of detail within these categories)
• Using your calculated average value for the cost of rights per an hour of broadcast footage (from above), provide a commercial model for how the broadcaster may recoup that specific amount for your chosen and viewed hour (i.e. use calculations to show what each advertisement or sponsorship is worth). For this task, you should (hypothetically) consider that the rights fee paid is the only cost to the network and they need to recoup this from the advertising and other sponsorship build into the broadcast. Provide a clear explanation of process you have used and how the broadcaster could recoup 100% of the paid rights fee for that hour based on how the time was used. (Show any tables/figures/calculations and a short explanation)
• Comment on any other ways advertisers/sponsors were incorporated into the broadcast by the broadcaster? Outside of those noted, what other opportunities might the broadcaster have to commercialise aspects of the broadcast? 
Part C: Sport Consumption
As part of Module 3, we introduce some complementary tools for sport broadcasting (e.g.; broadcasting apps, second screen use, fantasy or statistical services, social media/TV). This category of tools is deliberately broad, but can be anything that aims to stimulate additional engagement with consumers through digital means. You task is to select and analyse the impact of a digital technology or tool developed or used that consumers might interactwith in real time alongside a sport broadcast.
a) Provide a description of the tool or technology, and how operationally it is used to complement the broadcast experience of consumers. You are invited to include screen shots from devices or web pages that help articulate your example and its impact on the broadcast environment .
b) Consider the use of the tool or technology in the context of one of the engagement frameworks presented in module 3. Related to these frameworks, how effective is your chosen tool in its engagement of fans or consumers, and how might this be improved?

Part A. Sports Broadcasting Value Chain and Vertical Integration
Australia has a media progress that is economically advanced in nature, in a way mature and stable.  In this context. It has for long been used for universal literary amongst high life expectancies.  It has found that for several sports such National Basketball Association and national football league as well as Australian football league in Australia has achieved the television rights that provides then the potential source of revenue through broadcast marketing (Jensen et al. 2015).
Therefore, television networks are increasingly demanding for growing rights to broadcast partnership rights with a different sports organisation. in this context, a vertical integration with sports broadcasting trending with the merging of Netflix, that the days of sunset trips are gone where people used travel kilometres to nightclubs, hotels to watch sports. This day is gone now with the growth of traditional media that continues to be a subject of extensive regulation in terms of broadcasting (Yan and Hu 2017).
However, the sports and media broadcasting of television and radio began since early decades that developed with a dual commercial structure with different servers that are broadly distributed throughout. In this context, the entry of the commercial broadcasting industry began mostly from the extensive funding of advertising that is highly controlled by licences. Based on this scenario the Netflix and Amazon model has revolutionised to entertainment by (Hull and Lewis 2014). The exclusive eight-year deal Eddie Harsens’s Match room boxing that promotes fighters inclusive of the world’s most heavyweight boxing champion. In this cont6ext, Netflix has embraced itself with the model of global television.
Netflix began is video subscription service through mail service in the year 1997 where they changed the way of movies that were rented in the US. After that in the year 1999, the company launched monthly subscriptions for their regular consumers and stopped offering single rentals, Netflix pioneered broadband distribution of video forcing the television to evolve into a different world. Similar to other companies, Netflix is seeking to enter developed industries, so they built their models on a sustainable business model (Bendjeroua and Mokrani 2018).  
Online streaming of video through Netflix transformed the company from becoming one of the biggest post office and largest way of internet traffic in North America in the year 2010. Netflix is an international force that is determined to create high-quality shows and sports broadcasting with a strategy to develop a binge-watching system. Netflix works in partnership with companies with Disney and dreams works to develop exclusive TV shows for their customers, Netflix’s strategy of vertical integration is based on owning the content by using its system of distribution direct for the views rather than sharing with their distributors (Xiao et al. 2017).
However, Netflix launched their service in Australia in the year 2015. Again, in the year 2018, Netflix library has raised by 114% with almost 2400 TV shows and movies in comparison to the smaller launch with 1120 titles (Clapp 2018).
Match room sports has been ruling the world with this major boxing promotion and production for more than a decade. The show started its debut in the year 1987 in support of its Pro Box banner. The show became popular throughout the world. Match rooms’ unique expertise of promotion is dependent on the stable featuring of the world most popular boxers such as Anthony Joshua, Kelly Brook, and Tony Belle. Along with the staging and production of television, the show ensures the standards and quality of programming available for broadcasting throughout the world through a live program or as a two-hour package (Hardy 2018).
Vertical integration strategy
Netflix strategy of vertical integration is to focus on its content budget by investing in an original content that will help the Netflix a giant video streaming.  In this context, streaming of live sports such as match room boxing would allow Netflix to create an original content in sustaining subscriptions and consumers over a long period of time. Therefore, the main motif of the subscripted company is to focus on its strategy of vertical integration for streaming its live sports to garner giant viewership (Xiao et al. 2017). The strategy of Netflix is to invest the US $8 billion in content for going in to live sports streaming across multiple locations. By doing so, and playing its strength of offering original content, Netflix has an opportunity to further broaden its entertainment in the areas of sports.
Broadcasting rights through vertical integration of sports program through Netflix has helped to create sports television and digital media relationship with the dramatic increased of post-programming in Australia and other overseas countries. It has been found that almost 80% of the Australian watches over 14 sports channel on television shows with fascination figures that increase each year. However, Australians who prefer Netflix and YouTube subscription are slightly less populated with 77% of watching sports (Kassing and Sanderson 2015). In this context, Netflix subscribers have 25% of more chances that the average Australians to watch boxing matches and are also likely to watch FIFA soccer world cup. Therefore, it is evident that more than 2.6 million Australian aged between 14 have Netflix who are less interested in golf, swimming and cricket. Boxing and football attract the current audiences more (Marks 2018).
                                                      Figure 1: Value chain of the vertical integration
                                                                (Source: Kassing and Sanderson 2015)
The above figure offers a brief illustration of the operating value chain at different levels of the vertical integration of the sports broadcasting. Here, in this figure sports broadcasting covers all the traditional broadcasting system along with the communication channels such as mobile phones and internet application. It is the sports clubs from Australia, the US along with the Match room sports players of boxing, event organiser and sports governing bodies such as producers and distributors (Hing 2014).   In this context, the outputs of the sports production represent the inputs for the programs those who are the way to transmit the company’s distributing the program to the audiences.
However, technological emergence may influence the conditions that may as well impact on the consumptions of products. On the contrary with the emergence of the new products, the relationship between producers and distributors of Netflix may be strengthened thereby offering the sports broadcasting networks with increase profit and distribution of products (Carrillat et al. 2015).
Part B: Broadcast Analysis and Valuation
a) Sports content:
Match room sports Boxing will be conducted on 22 September in between Anthony Joshua who is popular boxer vs. Alexander Povetkin. In this context, the first Bellator MMA fight will be broadcasted on Sept 29 with Gérard Mousasi vs. Rory MacDonald. The contest program will be declaring more fall fights on Match room boxing on Oct 7, broadcasting Jessie Vargas, that is yet to be decided upon the opponent and Bellator will launch at Oct 13 displaying Matt Mitrione vs. Ryan Bader.  
Entirely, Netflix will be streaming almost 60 game fights that will be based on worlds boxing super series, in its first year. Not all the 60 shows fights will be exclusive for Netflix. In this total 60 fights, 15 to 22 Bellator games will be streamed on another broadcasting service. However, none of the 60 fights will be accessible for a pay per view content (Matchroom Boxing 2018).
b) Advertisement and time
Advertisement regarding the fights and schedules will be provided in all the social media and website as well as newspaper sites so as to increase the margin of readership in Australia and other location as well.  While Pay-tv takes down a huge portion of the major sports events that help to change the attitude of the viewer’s towards sports (Regan and Holthouse 2016).  
However, with the help mobile apps, news channel such as The Guardian, social networking sites the show will be promoted for a large number of audience. Moreover, these handy applications will help the users to get access to real-time information about the schedules of the match, footage and additional information on the sport fighting teams, players that are involved in the game (Filo et al. 2015).
This ability with the stream of sporting advertisement from a smartphone, tablet and laptop, youtube videos will also be used for the purpose of advertisement while enticing an increased number of the audience towards the show. Growing streaming advertisement in collaboration with user-friendly devices is creating a notable impact on the number of viewers that are transforming traditional TV shows for the purpose of the big game and getting their broadcast on boards (Lopez-Gonzalez et al. 2017).
Schedules of the boxing fights
Anthony Joshua vs. Alexander Povetkin details of the show
Live stream on Netflix: sport starting from 7.50PM, match room boxing sports website and Netflix app
Fighting time (Approx.): Anthony at around 8 pm and Gérard at around 10 p
Odds (bet fight) – For Joshua, it will be Joshua 1/100, Povetkin will be 20/1, the draw will be considered at 33/1 and Gérard 1/200, Mitrione 25/1, draw 40/1
Sports predication- Povetkin on pints in spite his desperation to force upon stoppage, Joshua to win by KO in the wound six challenge.
Underscore highlight: Jessie Vargas and his opponent is yet to be decided upon, Mitrione vs. Ryan Bader will be streamed on October 13
Gérard Mousasi vs. Rory MacDonald
Live stream on Netflix:  On 29 September, sport starting from 8.00PM, match room boxing sports website and Netflix app
Fighting time (Approx.): Mousasi at around 8 pm and MacDonald at around 10 p
Odds (bet fight) – For Mousasi, it will be 1/100, MacDonald will be 20/1, the draw will be considered at 33/1 and Gérard 1/200, Mitrione 25/1, draw 40/1
Sports predication- MacDonald may be standing on his point in spite of his desperation to force upon challenge, Mousasi to win by KO in the wound six challenge.
Underscore highlight: Jessie Vargas and his opponent is yet to be decided upon, Mitrione vs. Ryan Bader will be streamed on October 13
Matt Mitrione vs. Ryan Bader details
Live stream on Netflix:  On 13 September, sport starting from 7.30 PM, match room boxing sports website and Netflix app. these, the show will not be aired in the US
Fighting time (Approx.): Mitrione at around 8 pm that will be local time and Ryan at around 10 pins the UK
Odds (bet fight) – For Mitrione, it will be 1/100, Bader will be 15/3, the draw will be considered at 33/1 draw 25/1
Sports predication- Bader to stop Mitrione him in the middle of the match rounds. However, Mitrione will win over the match.
Underscore highlight: Jessie Vargas and his opponent is yet to be decided upon, that will be streamed on 7 October.  Jason Sosa vs. Reynaldo Blanco will be streamed on 15 October.
c) Other examples of time
Broadcast footage time on Netflix sports will be bringing extensive coverage on the Open championship challenge from the period of 19 and 22 September across radio and online streaming media:
On television: the show will be bringing two hours of highlights each day from 20:00 till 22:00 GST
On radio: BBC Radio 5 live & sports will bring in to live coverage on each of the four days.
Online streaming: The sports broadcasting video will have an extensive range of coverage of the open championship for a period of four days of competition in the form of live video footage, radio commentary and video broadcasts without any pay per click. There will be news on the video as well as statistics (BBC Sport 2018).
Schedule 2
Sunday, 22 September- final round
Television: 20:00-22:10 – Netflix
Radio: 13: 00 – 20:30
Digital media: Audience will be able to access all the sports in Netflix with the help of digital coverage from the web browser on their Pc’s, portable devices and app for mobiles. The sports footage will also provide all the live streaming along with video highlights (Matchroom Boxing 2018).
                                          Figure 2: Graphical representation of the estimated amount
                                                              (Source: Created by the researcher)
Part C: Sport Consumption
a) Technology for improving the broadcast experience
It is evident from the changes in shift, that technology is never consistent as it moves in unpredictable ways. In this context, broadcasting has moved through a variety of conversions including satellite and on-demand alteration of the viewing habits of the consumers. However, currently mobile is starting to convert the appearance of broadcasting (Aman and Bennett 2017). The on-demand model of technology that audiences have already become accustomed to is soon going to be appreciated by the audience. This model of technology will start with the idea of on the go and interacting model that will be driven by the more sophisticated mobile solution. In areas where there is a lack of television and lack of internet connectivity mobile broadcasting could fill the gap (Mitchell 2018).
The introduction of this model of technology will help in ailing sports and media industry to boost the viewership with the rapid increase of location in all areas. In this context, the second screen companion device can be implemented with a content provider attached in the mobile device that would allow individuals to watch the sports shows and comment on their television and mobile setting while interacting with the live broadcast and content (Alexander 2018).
This technology would trigger a communicative experience within the challenging market thereby connecting with millions of customers all around Australia and overseas. User mostly tags their sports shows through mobile, similar to the way they are using to get information about the case, competitions and social media feed through communication (The Conversation 2018).
In this context, using this technology audience will achieve a far more holistic expertise while helping them to communicate and customise their content. This technology of comment based interaction can be as well be amalgamated with the launch if 4G internet connecting that will allow in a faster-streaming broadcast on mobile that will allow providing improved quality of content provided with a more involved customer experience as well as engrossed viewers experience (Telstra.com.au. 2018).
                               Figure 3: News regarding technology in terms of vertical integration
                                                                    (Source: Minas 2018)
In the modern broadcasting retail, the major differentiation tool that offers a competitive advantage is enhanced customer experience. These can be achieved by leveraging on mobile devices and applications that will, in turn, allow the broadcast retailers to get enormous rewards by satisfying the desire for improved technology (Minas 2018).
However, in the changing competitive broadcasting environment, changing political fluctuations such as tax rates on technology, policies from government agencies may impact on the broadcast production and fall down of audience viewership range. Increasing competition from different apps such as Amazon media, Spotify those that recently address radio to their mobile application services provides customers with the capability to make stations based on the singer or album with a provision of additional songs that can be selected by the user. These systems can pose an increased competition for Netflix sports broadcasting.
b) Sports broadcasting is progressing in t away that is allowing the user to get service on demand. Based on this aspects,   the personalised feedback and commenting system will help customers to improve the viewership experience. This technology is the most interactive way of direct marketing drawing upon electronic e-commerce. These ways will help to automate the management of sales forces with the drastic blooming of the World Wide Web that is under huge pressure to reshape (Stragier et al. 2015). However, these, technology of including an interactive user interface to the sports broadcasting program will not allow the increase in viewership but will also help in the development of performance skills by focusing on the particular interest of market creation. For instance, when a broadcast advertisement elicits a reply such as calling on a toll-free number that triggers a customised form of direct mailing. These type of systems represents low technological interaction.
However, with the improved technological web interface platform, audiences will be able to able to lay down a persuasive viewpoint with the users. Apart from these, this method of technology will allow in the fast broadcasting of the show with an increased interactive platform where audiences will be able to throw their negative as well as positive viewpoints on the show as well as interface engaging with the increased emotional excitement of the audience.
Audience from all the location will be able to communicate with each other while sharing their likes and dislike. Moreover, providing negative as well as positive feedbacks will allow Netflix and the program in fixing their flaws on the demand of the customers. Increased customers satisfaction will increase the brand loyalty with the increase in viewership.
In this context, it has been found from specific sources that there are almost 35 million active users of internet, provided with this, the number of internet sites in Australia has increased from nearly 27,000 to 110,000 within a period of six months and the advertising and other media programs in internet applications has been estimated to reach $5 billion by the year 2020 (Ellis et al. 2018).
The other sources in this context have stated that the access to the most interactive platform in the broadcasting application is comparatively poor. Therefore, the improved interactive platform will help in increase in the sales and production for both Match room boxing show and Netflix production.
Sports programming and broadcasting relationship model will be built through the incorporation of technology. Through the integration of this technological process, there will be reasonable chances of driving interactive media thereby transforming the development of the brand and interacting with the consumers effectively. Online activity will provide an additional feature to meet on-demand customer demands similar to the ancient period of the door to door sale man. Encountering with the possibility of advanced communicative media, media programs could transform the ability to develop brands and interact not only the consumers but also with the executive producers and corporation that they are partnering with (Minas 2018).
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Lopez-Gonzalez, H., Estévez, A. and Griffiths, M.D., (2017). Marketing and advertising online sports betting: a problem gambling perspective. Journal of Sport and Social Issues, 41(3), pp.256-272.
Marks, V. (2018). Move to put cricket back on free-to-air TV a tacit admission ECB got it wrong. [Online] the Guardian. Available at: https://www.theguardian.com/sport/blog/2017/may/17/cricket-free-air-tv-ecb [Accessed 22 Aug. 2018].
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