What Challenges Wireless Content Delivery Implications Sport Broadcasting Rights Fees

¶ … wireless content delivery and its implications for sport broadcasting rights fees?

Over the last several years, a technological revolution has taken place in the field of consumer electronics. This is occurring through rapid shifts in the way information is provided, delivered and the formats that are available. At the heart of these changes, are the shifts to wireless devices. This is when various game consoles, computers and cell phones have the capability of performing a variety of applications. This is transforming how consumers are receiving and watching different kinds of TV programs and movies utilizing the Internet. The basic idea is to provide consumers with a more interactive experience. (Kerschbaumer, 2011)

Commenting about these changes is John Revie (the Senior Vice President of Samsung's Consumer Business segment) who said, "We expect sales of wireless devices with 'Smart TV' functionality to surpass 9 million this year, a 300% increase. Our app store has already found success, with than 1.5 million applications downloaded this year. More than 300 apps are available, and the list continues to grow everyday as developers create new offerings, thanks to version 2.0 of the Samsung development kit. The key is relevance to content, and we are setting a path for the right ones to be created. We are rallying the developer community around these solutions." This is showing how the field of consumer electronics is continually evolving. (Kerschbaumer, 2011)

These changes are having an impact on the way everyone stays informed about sports related events and how they are watching this kind of content. For example, the below table is highlighting where most people will watch and learn about this programming. (Bain, 2010)

The Primary Format Consumers are using to Stay Informed about Sports related Content

Provider

Percentage

Google

62.5%

Viacom

11.9%

Disney

10.5%

HULU.com

10.2%

(Bain, 2010)

This is illustrating how consumers have changes in the way they are viewing sporting events and teams are shifting. (Bain, 2010) (Blackshaw, 2012)

As a result, these transformations are leading to adjustments in sports broadcasting rights and fees. The way that this is occurring is different kinds of sports are charging additional fees to view their content through various applications and devices. For instance, a sports broadcast that is sent out to consumers will have a national focus for television audiences. (Bain, 2010) (Blackshaw, 2012)