A broadcasting revolution or the end of exclusivity?

Two major media trends threaten to collide, with massive repercussions for the sports events industry. How do you create exclusive media coverage when spectators are broadcasting their own footage on the internet?

Today’s technology allows virtually everybody to
become a publisher, thus forming a threat to sponsors,
sports governing bodies and media as regulations
are not always adhered to

Sports associations, media rights and commercial partners form the essential foundations of every successful event. But today’s technology allows information to be published by everybody, without restriction. This can drive a wedge between these essential cornerstones.

Commercial partners pay huge sums to have their name linked to a sports association or particular sports event. Bernie Ecclestone’s Formula One Grand Prix racing, the IOC’s Summer Olympics and FIFA World Cup events are just some of the examples. These events attract a major audience all over the globe and sports governing bodies cash in on their popularity. They literally generate billions of dollars.

FIFA’s approach of offering fewer sponsors more exclusive coverage has become a textbook example for marketers of how to boost revenue even further. The exclusive media rights that are sold to broadcasters and publishing houses are crucial to an event’s commercial success.

“FIFA has over 200 deals with broadcasters globally,” says Niclas Ericson, director for the TV division within FIFA. And with mobile communication becoming the tool of the future, FIFA intends to cash in on this form of communication as well. “We now want to have similar deals for mobile content as well,” he adds.

Currently MTN is FIFA’s mobile communications partner. The company intends to roll out a 2G and 3G network to enable fast communication coverage in the ten South African stadiums to be used for the FIFA World Cup in 2010.

Exclusivity of content
With modern cell phones equipped with high-definition cameras and direct accessibility to the internet, virtually everybody can become a publisher without the need to adhere to the strict requirements FIFA imposes on buyers of its content. Sites like Myspace, YouTube and Flickr have become popular platforms in recent years and allow virtually everybody to share material, including content generated at events where journalists and broadcasters using the more conventional media outlets have to comply with stringent rules and regulations.

Phillippe Le Floch, marketing director at UEFA believes that the platforms like YouTube should become more involved in protecting media rights. “The control of pornography on the internet has proven that sites like YouTube can police content. They should also remove pirate content and work closer together with governing bodies to establish what content is illegal,” he says.

Rather than battling against the tide of media availability, UEFA has taken a progressive approach to making content available. “We don’t maximise revenue, but we maximise the distribution of content,” he says. UEFA is very strict when its content is abused and contacts every webmaster that is in conflict with agreements.

Le Floch is cautious about the prospect of home-grown live coverage. “When sites like YouTube start doing live feeds then the spirit will be out of the bottle. That should be reserved to exclusive right holders.”

But it is not just the average spectator that is creating trouble. UEFA is even arguing with reputed media. “It is difficult to protect content but we try to go with the flow and make sure fans can access data. We have, however, a duty to protect rights holders. Media agencies, including organisations like Reuters and the BBC, claim that they have a constitutional right to access the data we make available. We have little problem with that. But I feel that they cannot sell that for profit, which they sometimes do.”

Many sports clubs that also generate their own media content have reached the same conclusion: that it has become better for them to give their content away for free.

Web 3.0 – when push becomes pull
So how feasible is it that Le Floch’s fear – that YouTube suddenly start to broadcast live feeds – will become a reality? Ericson is not too worried about that yet. “It is a challenge to bridge to these platforms. Every so often we have discussions internally about how to deal with platforms like these but currently we are not in contact with them.”

His colleague Matt Stone, head of new media at FIFA, believes that sports associations should explore other opportunities. “The internet has grown six times larger compared to what it was in 2001. The way the internet is currently used is also changing. Hence the introduction of Web 2.0.”

Sites like Facebook and Linkedin, amongst many others, have allowed internet users to spend more time on social sites interacting with friends, family and colleagues. “Web 2.0 is all about building communities. During the 2008 Presidential elections in the US this was introduced for the first time during an election campaign. The internet almost exploded. It looked like the elections were happening online.”

Web 2.0 is certainly not the end of web development and Stone foresees Web 3.0 to come in the near future. “Web 2.0 revolves around distribution; around embracing non-text content and building and nurturing communities. Web 2.0 basically had a ‘push’-model. The next step will be Web 3.0 where open data access will play an important role. Web 3.0 will also get a ‘pull’-model. Content will see a transformation of niche content and the web will be semantic. Communities will become even wider,” the FIFA head predicts.

Creating new angles
The introduction of digital broadcasting and high-speed internet connections has also changed the landscape of event coverage by the media. “It has now become a matter of content at the right place, at the right time and the way the customer prefers,” says Dilbagh Gill, head of sport at Satyam, a leading business and information technology services company. “It is basically to enhance the experience of the viewer.”

Thanks to the introduction of digital technology, radio, television and print media can all be combined in one. Particularly in motorsports, broadcasters and governing bodies have worked hard together in recent years to enhance the spectator’s experience by offering more information platforms and tools for the viewer. They have even come to a stage where the viewer can almost ‘participate’ in the race. Gill says: “Nascar races in the US are a good example. Here you can experience the race from the driver’s side with various camera angles. All by logging on the official website of Nascar in the US and paying a fee.”

Gill also believes that content generated by spectators will eventually gain higher credibility. “User-generated content can be more trusted than editorially generated content.” According to Gill, editorially generated content often deals with a higher cause or is part of a bigger picture.

For Matt Stone of FIFA, this is an important message worth heeding. “FIFA has the intention to have its website FIFA.COM becoming the place to be for people that want to live the event. The FIFA World Cup 2010 in South Africa will be the first opportunity,” he says. “But the best people to deal with are those that trust your brand.”