SportBusiness.com

Digital Opportunity

Are sports governing bodies sufficiently able to maximise the commercial opportunities presented by digital media?

Since launching NBA.com back in 1995, the National Basketball Association (NBA) has remained in the vanguard of sports governing bodies exploiting the opportunities posed in digital media.

The NBA was quick to realise the potential of its online presence to galvanise domestic and international support, to inform and engage, and to retail tickets and merchandise.

But they have gone a lot further over the years. The launch of NBA TV was met, in some quarters, by a sharp intake of breath. It was a move which flew in the face of traditional thinking. How was it that a governing body could possibly offer its own TV channel offering access to all its games and still maintain a profitable relationship with its broadcast partners?

Well they did and it works. And it didn’t take long for other major players in the ultra-competitive US sports market to follow suit. Now it’s possible for fans to immerse themselves in a deep digital bath of US major league sport, delivered across a range of platforms.

Unfortunately, not every governing body has the audience or wields the power of the NBA over broadcasters. Most federations have spent years living off scraps of TV coverage, often on relatively obscure channels in audience-limiting time slots. Many receive no rights fee and often have had to pay some or all of the production costs just to get on air.

In theory at least, the dawning of the digital age meant that all this could change. At a stroke it created new opportunities for sports bodies to take their media futures in their own hands. No longer were they reliant on the old broadcasting model. The power was set to shift from broadcasters to the rights owners themselves, unlocking many new commercial opportunities along the way.

But what has the reality been? While some of the bigger federations appear to have grasped the digital nettle, the picture remains patchy. While finance is clearly a consideration, is lack of awareness and guidance more of a problem in what can be a confusing media world?

We asked this month’s expert debaters for their views.

David Atkinson Managing Partner, space: “For those that can afford it, senior digital resource in-house must be the first step. Without it, if you don’t know where you’re going, any road will do.”

Chris Russo CEO, Big Lead Sports: “Rapid change in the digital space makes it imperative to continually test assumptions, review business plans, and most importantly, pay close attention to the way sports fans consume content.”

David Stubley Partner, Kameleon: “Governing bodies won’t unlock full digital potential in-house. In this space you need the smartest digital brains who are unafraid of the new landscape, with a certain appetite for risk.”

Rachael Church-Sanders Digital media consultant: “Social media is currently the most important area of the digital space where sports federations should not be wary of asking for outside help. In this scenario, those who dare, will most definitely win.”

For the full debate see the latest edition of SportBusiness International published April 1.