REVEALED: Dramatic changes to the broadcast ecosystem
The sport’s broadcast ecosystem is set for a tectonic shift, but it might not be the elysium viewers had hoped for.
The move away from a reliance on traditional linear pay-TV and free-to-air television to a more fragmented, multi-platform model is already underway.
This evolution, driven by the need for increased fan engagement, is seen as the proverbial ‘canary in the coalmine’ of broadcast changes.
The power of the broadcast media is increasingly shifting to non-traditional channels.
In the United States and European markets, the trend is already towards streaming services and away from ‘traditional television’.
Streaming services will increasingly be picking up rights for events.
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However, the big challenge will be for viewers to find their most affordable model, or end up paying for three or four different service providers for the various competitions.
The streaming option may not be better for the consumer, or result in more revenue for the rights holder.
However, the one certainty is that there will be a change in the foreseeable future.
“It is a conversation we are having a lot internally,” Sharks Chief Growth Officer Michael Leslie told a media round table, when asked about the ever-shifting broadcast ecosystem.
“[However,] at this stage it is probably a little premature.
“The traditional approach [pay-TV dominance] will still be the point in practice for the next few years.
“There is no question that, one way or another, we are seeing changes in the broadcast ecosystem.”
He said franchises and rights-holders are now able to communicate more directly with their fans.
Social media is a ‘harbinger’ of this shift in the broadcast power base.
“Social media creates opportunities for over-the-top solutions,” he said, adding: “Be that a league or the rights holders themselves.
“There could also be subscription services, with a franchise like the Sharks going directly [to the fans] or providing a higher or premier experience for their super or core fans.”
He admitted there is still ‘work to do’ in order to deliver that high-value service, be that media products or access to the players.
That is an area in which the Sharks are investing heavily in.
It will result in an increasing ‘collaboration’ between traditional and non-traditional media platforms.
Sharks CEO Shaun Bryans said that the ‘SARU distribution’ and ‘broadcast revenue’ have not grown at the same pace in recent years.
It creates a ‘balance sheet’ conundrum for franchises.
“The world of sports broadcasting and media is changing,” Bryans said, adding: “The global trend is clear. While the viewership is growing, the linear value of television broadcast deals is trending ‘flat’ or downwards.
“It is a difficult time to be in the business of sport, because it is a business model in flux.
“Nobody is 100 percent certain how it is going to pan out.
“It is a reality and a challenge we have to deal with.”
In a hotly contested funding model, there is pressure on all franchises and national unions.
“It is fair to say SARU is now on a much more stable and sustainable footing,” the CEO said, adding: “They have managed to keep the distributions [to franchises] growing ‘modestly’ over the last few years in a very challenging environment.
“The broadcast landscape and the pressure on broadcast revenues would affect entities like SARU greatly.
“Since that [Ackerley] equity deal was voted down, SARU has done a wonderful job in growing its top-line revenue.
“That has not necessarily flowed down to an increased distribution at a member level yet. It may still.”
@JanDKrugby
@rugby365com
