These past few years we have seen a number of massive new
Media deals that promise to change the landscape of media deal negotiations for
years to come. The MLS negotiated their biggest media deal ever with ESPN, Fox
Sports and Spanish broadcaster Univision. ESPN also signed a deal with the NBA
that promises to change the way we consume its product. The MLB also reached a deal that is worth $12.4 billion, a 100% increase from their last media deals.
The amount of dollars thrown into the sports and media industry is at an all
time high and it is showing no signs of slowing down. With sports league
renewing their media deals and the growth of technology are factors that
influence the ever-rising price for sports content.
The advances in technology have brought forward the demand
for content on mobile devices. Verizon has capitalized on this demand by
becoming the exclusive mobile of the NFL. Verizon paid $1 billion to expand
their coverage of games, a 40% increase from their last deal. This deal
highlights Verizon’s understanding of the value of their partnership. ESPN and the NBA have also capitalized on the streaming craze brought upon by technology. The NBA now allows ESPN to stream games online and on mobile
devices. The NBA becomes the first of the big sports leagues to enter a
comprehensive deal that allows for full streaming of all games.
In closing, the downside to this trend is that the consumer
may end up paying more on their cable bills. Sports channels carry the largest
fees on your cable bill and will likely continue to go up. Technology has had
profound effect in the way media deals are negotiated. Distribution channels in
today’s world go far beyond the television, radio and other forms of
traditional media. The landscape of sports broadcast is changing because of the
way sports fans are consuming this content.
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