SportBusiness.com

SBS set for record revenue from sports programming

Australian public-service broadcaster, SBS, is expecting to generate record revenues from its sports programming outside FIFA World Cup years, with advertising revenue from its coverage of the Olympics, Tour de France and Euro 2008 likely to reach $12 million.

Commercial affairs director, Richard Finlayson, said that sport would account for one-quarter of SBS's advertising this year, which is expected be $46 million, up 22 per cent from $38 million in 2007.

The rise is partially attributed to the growing popularity of the broadcaster’s coverage of the month-long Tour de France with both the general public and key media buyers. "We're experiencing a lot of interest in cycling at the moment," Mr Finlayson said. "It's the new golf and the new rugby. Two out of three male ABs (the top advertising demographic) watched the tour last year."

Car manufacturer, Skoda, became the first global sponsor to take a significant sponsorship package on SBS's coverage of the event. The broadcaster is expected to announce two additional tour sponsors – a telecommunications company and a financial services advisor, in the near future. Advertising revenue from the tour is expected to jump 50 per cent on the back of a 27 per cent audience boost.

Mr Finlayson also said there had been a halo effect from SBS's partnership with the Seven Network to sell its Olympics coverage. "On the commercial networks, big sporting events rate higher, but there is accordingly much more demand for space," he said. "On SBS clients get an environment highly sympathetic to their brand. This year won't match the World Cup but it's certainly the biggest year for us outside it".

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