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The Impact of Technology on the Supply of Sport Broadcasting

Paul Turner a
a
Deakin University, Australia
Online Publication Date: 01 December 2007
To cite this Article Turner, Paul(2007)'The Impact of Technology on the Supply of Sport Broadcasting',European Sport Management
Quarterly,7:4,337 — 360
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European Sport Management Quarterly,
Vol. 7, No. 4, 337360, December 2007
ARTICLE
The Impact of Technology on the

Supply of Sport Broadcasting
PAUL TURNER
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Deakin University, Australia
ABSTRACT The demand for sport content by broadcasting organizations has under-
gone a major redefinition in the last 1520 years. Television has become predominantly
a private good, subject to deregulation and technological revolution. The traditional
approach to presenting sport content predominantly live and exclusive through one
distribution channel has evolved considerably into one represented now by a multi-
faceted, multi-organizational approach. This paper will introduce the two markets of
sport and broadcasting through the supply network of broadcasting rights and sports
programming, and how this network is affected by the emerging broadcasting
technology that is appearing in the digital environment. The era of digital broadcasting
creates a significant alteration to the supply of broadcasting content developed by
professional sport leagues, competitions and events. A number of emerging distribution
system components linked to the digital environment can be identified and associated
with sport broadcasting, all of which are having a profound impact on the way sport is
being presented now and into the future. The various distribution components are
introduced and examined in terms of their impact on the professional sport broad-
casting markets. Each distribution component is addressed from the perspective of the
regulatory, marketing, and economic impacts on channel management that apply.
Introduction
When observing professional sport experiencing its current levels of
economic success and heightened consumer interest, it is difficult to
remember that only approximately 20 years ago, the interest and financial
viability of major league competitions and even major events such as the
Olympic Games were in desperate need of resuscitating. Despite the close
relationships which have existed between the Olympic Games and com-
merce, it is only since the 1984 Los Angeles Games that the Olympic
movement has capitalized on its global reach and sought to intensively
Correspondence Address: Paul Turner, Deakin University, Faculty of Business and Law, Bowater
School of Management and Marketing, 221 Burwood Highway, Burwood, 3125, Melbourne, Australia.
Email: turnerp@deakin.edu.au
ISSN 1618-4742 Print/ISSN 1746-031X Online # 2007 European Association for Sport Management
DOI: 10.1080/16184740701717055
338 P. Turner
commodify its product (Magdalinski & Nauright, 2004). The Olympic

Games were not alone in experiencing a global shift in fortunes. The English
football industry was characterized by low revenues, dilapidated stadia,
unsavoury violence on the terraces, and an uneasy relationship with the
television media through until the 1990s (Lonsdale, 2004). Other major
professional sport competitions and events such as motor racing, athletics,
rugby union, and even Australian football have experienced a resurgence in
interest both in the public and media domains since the 1980s. Even the
major leagues in the US have recently experienced a level of support, interest,
and media involvement that far surpasses any other period in their history.
Most major sporting competitions have experienced major revivals in their
fortunes over this time with greater public demand being met through venue
attendance and television viewing.
The economics of sports has become particularly relevant during this same
period due to the emergence of greater emphasis on professionalization,
broadcast revenues, labour market deregulation, government and competi-

tion deregulation, and increasing nationalization/globalization. Examples
include the establishment of the Premier League in English professional
football in 1992; the creation of Super League in rugby league in the UK in
1996, and the formation of the National Rugby League in Australia at the
same time; the professionalization of rugby union in 1996 including the
creation of northern and southern hemisphere leagues; and the restructuring
of European football in 1999 (Gratton & Taylor, 2000).
There are numerous issues that can be identified in the context of sport
economics. One of the most critical to emerge during this time has been in
the area of sport broadcasting. While sport has been broadcast for a
considerable period of time (commencing prior to the Second World War
but emerging more prominently following this event) via audio or audio-
visual distribution, the relationship that existed between the sporting
organizations and the broadcasters was only moderately cooperative, and
largely restricted in the benefits provided between television networks and
sport organizations. As a result, in most cases the arrangement was of
minimal financial value to the sporting organization (Whannel, 1992).
Sport broadcasting reflects the coverage of sports competitions and
events on radio, television, and via other broadcast mediums. This paper
identifies broadcasting as being undertaken through an audio-visual means.
The context of the sport broadcast will be viewed from the perspective of a
digital broadcasting perspective. Digital television represents the presenta-
tion of a signal of discrete bits of information that provides a
clearer, sharper picture, in wide-screen format, with interactive options
and across a much wider range of potential channel offerings (DigiTAG,
2007).
This relationship between sport organizations and the sport broadcasters
has increasingly evolved following the introduction of technology in sport
broadcasting. Turner (2000) identified that the diffusion of technical
innovations in television can be closely aligned to the distribution of sport.
As technology has been introduced, sport has been involved as a conduit to
Technology and Sport Broadcasting 339
support the diffusion of this technology. Television in Australia commenced

the same year as the 1956 Olympic Games in Melbourne, supporting the
view that the uptake of television set purchasing would align with people’s
interest in the Olympic Games. Based on this successful experience, the early
marketing of digital terrestrial television broadcasting was initially timed to
coincide with the 2000 Olympic Games (ABA, 1997). The Digital Terrestrial
Television Action Group (DigiTAG) agrees that major events, especially
sporting events, can help drive the uptake of High Definition Television
(HDTV) services. They believe that viewers will be willing to purchase new
equipment to access these events in HD quality, and subscribe to a platform
able to offer HD services (DigiTAG, 2007).
While this integration of sport in the diffusion of broadcasting technology
has been applied in particular cases, the focus has been on the hardware
upgrades that apply, with no change to the organizations who distribute the
content. This distribution has been largely retained in the hands of the major
television networks and cable providers. The technological progress that is

occurring in the current environment through the emergence of digital
technology has further changed the broadcasting landscape. Consumers are
now able to watch sport programmes through many different conduits such
as terrestrial, satellite, cable, or on the telephone. In most nations, but
particularly in Europe and the US, technology has broadened the market
with an increase in the number of broadcasters and distributors of
programme channels (Buraimo, 2007).
Through the acknowledgement of a greater commercialization and
commodification of their sports, sporting organizations since the 1980s
have recognized the increasing value of their competitions (Buraimo, 2007).
Supported at this time with ongoing developments in technology and
government deregulation of aspects of the media, the value of sport content
has increased considerably (in some cases exponentially). Annual broad-
casting revenue in the football leagues in England, France, Germany and
Italy have increased over a 10 season period from £0.3 billion to £1.6
billion, an annual rate of almost 20% (Rawnsley, 2007). This paper
investigates the impact that the developments in technology in broadcasting,
brought about through the emerging digital delivery channels and supported
through the deregulation of media, are having on professional sport. It
examines the two markets that exist for the sport organizations and sport
broadcasters, the stages within the sport broadcasting market that have
emerged arising from technological developments, and the implications
that the economic, regulatory and marketing aspects have had on this
occurrence.
The conceptualization of the theme will be developed through examina-
tion of the professional sport supply networks, the economic, regulatory and
market aspects that emerge from developments in broadcasting technology,
and the way in which particularly the deregulation of media has created
an increasing number of sport broadcasters seeking access to sporting
content.
340 P. Turner
The Professional Sport Supply Networks

The first stage of analysis is to map the supply network which is present in
sport. Figure 1 presents a broad identification of the process associated with
the delivery of sport entertainment to end customers. It is adapted from a
version originally developed to map the delivery of football entertainment
(Lonsdale, 2004). The core attributes and stakeholders of the network are
presented in three parts; the downstream customers of sport, the sporting
organizations themselves, and the upstream suppliers of the sport organiza-
tion. As this paper focuses predominantly on the development of broad-
casting interests, not every aspect has been identified nor included, rather
just those that enable a picture to be created in order to develop the core
focus on sport broadcasting.
As can be seen in Figure 1, the downstream customers include the core
viewing groups such as the stadium-visiting spectators and the media-
viewing spectators. The stadium-visiting spectator attends the stadium

to view the live spectacle offered by their sport, which is usually supported
through the presentation of the best available sport talent. The supply
market to this group consists of a market of one club/event (scarcity), with
stadium-visitors placing high importance on watching their favoured team/
event (utility). While the stadium-visitor is an important source to the sport
organization (utility), the sport organization has other sources of revenue
available to them (scarcity). These customers are also involved in purchasing
merchandise at premium prices due to their emotional attachment to the
club or sport organization. An example of this can be seen in the
circumstance where over £335 million was being derived by English Premier
League clubs through merchandise sales in 2002 (Deloitte & Touche, 2003).
Therefore, the clubs or sport organizations are in a strong position in
relation to this set of customers (Lonsdale, 2004). The same basic principle
applies in the case of the sponsors. Again, the supply market to the sponsor is
Downstream Firm Upstream
Advertisers Sport Sport Organisations (clubs, Coaches

broadcasting leagues, sport governing
Viewers of companies bodies) Athletes
televised
sport Athlete agents
Stadium –
visiting
spectators
Merchandise suppliers
Sponsors
Construction suppliers
Figure 1. The professional sport supply network*main protagonists

Source: Adapted from Lonsdale (2004)
one aspect of a sport organization activity (events or competitions), while

the sport organization has more than one source of revenue.
The other core groups in the downstream customer group are the sport
broadcasting companies, the advertisers and viewers of broadcast sport.
Being able to watch sport on television is of great importance to the viewers
(utility), while the sport organization now enjoys a commercial advantage
over the broadcaster due to:
. The sport organizations now have a range of organizations to which they
can sell their rights (scarcity).
. They have been largely able to negotiate as a consortium, despite being
separate legal entities (scarcity).
. They provide the only source of product (scarcity) that the broadcasters
have put at the centre of their content strategy (utility) (Lonsdale, 2004).
In essence, the de-regulation that has been introduced into the broadcast
market has presented many more options to the sport organization to sell
their rights. While there are many more options for the distribution of sport
content, these added options present the sport broadcaster with the ongoing
dilemma of needing access to this content (and often exclusive access in order
to maximize its value). The value of sports content is that it is attractive to
large viewing audiences. Networks will always ‘‘pay a premium on properties
that garner 10 per cent or more of the American population’’ (Sherlock,
2006a). The scarcity of this content, coupled with its supply being restricted
to a minimal number of organizations (in many cases only one such as a
league or international governing federation) leads to a position in which the
owners of the content are strongly placed to maximize rights value.
Although the relationship described between sport organizations and
broadcasters would seem to be quite adversarial in terms of share of surplus
value, the relationship can also be quite collaborative (Lonsdale, 2004). The
sport organization is quite willing to tailor their itinerary of competition
events to suit the requirements of the broadcaster. For instance the Premier
League now commences competition games at many different times across
many different days of the week. The Australian Football League (AFL)
which previously presented all of its fixtures only on a Saturday afternoon
now spreads these fixtures across an entire weekend in order to accom-
modate broadcaster needs. Coupled with the cooperative broadcasting
arrangements there also exist numerous joint sales and marketing initiatives.
Figure 1 presents the sport organizations in the middle of the arrangement
representing a cornerstone of the network. They are the groups that provide
the product (content), and while they may be willing to negotiate over
distribution schedules, they exist as a supply-side monopolist as in the case
of the International Olympic Committee (IOC) or Fédération Internationale
de Football Association (FIFA), or in the case of major sport league
governing bodies. They, in fact, operate as a single seller facing several
purchasers (Bolotny & Bourg, 2007). This gives these organizations a high
degree of power in negotiating for increased revenues.
342 P. Turner
There are a number of sets of suppliers within the upstream sequence of

the supply network. This is represented by the athletes, athlete agents,
coaches, suppliers of merchandise, and suppliers of construction and
building materials for sport. These groups provide specific aspects related
to the supply of the content to the sport organizations. The power that these
groups can exert over the sport organization can be quite pronounced, as
identified in the case of the player wage demands placed on clubs within
major European leagues such as the English Premier League (Lonsdale,
2004). In the US there have been cases, particularly in Major League
Baseball, where the players have taken industrial action and even withheld
their labour over contract negotiations.
Having established broadly the supply networks associated with profes-
sional sport, the two markets, that of broadcasting and the sport organiza-
tions, are developed next as a core focus of this paper. Sport represents a
major pool of programming and audiences for the broadcasters, which is in
itself a financial pool and vehicle for the promotion of sport (Bolotny &
Bourg, 2007).
Broadcasting has become a private good, being at the same time subject to
administrative deregulation, and to technological revolution. The produc-
tion and consumption of these programmes take place within the framework
of a market economy. Due to the fees that broadcasters pay for the sport
content, viewers have indirectly supplanted spectators as the leading
financiers of major world sporting events, with the world market for TV
rights being estimated at t48.4 billion in 2000 (Bolotny & Bourg, 2007).
Taking into account a focus on the sport broadcaster/sport organization
relationship Figure 1 is adjusted to reflect only the sport broadcaster and
sport organization relationship. This is redrawn and presented in Figure 2,
representing an adaptation of the original figure presented by Bolotny and
Bourg (2007). Downstream, the primary market for sport programmes is a
place of exchange between broadcasters (the supply side) and viewers/
consumers (the demand side). Upstream, the secondary market for sports
broadcasting rights brings into play the same broadcasters (the demand
side), and the sports organizations (clubs, leagues and federations) or sport
marketing companies (supply side) for the rights they hold. The ability of the
sport to create large audiences in the broadcasting market represents a major
source of revenue*either through the direct sale of programmes or
indirectly by the commercialization of advertising (Bolotny & Bourg, 2007).
The market for sport programmes has evolved with the requirement of the
broadcasters to obtain content that will entice viewers. The availability and
attractiveness of sport programmes to large audiences across the globe is a
feature of the requirement of broadcasters. Although once regulated, the
broadcast sector has become competitive, which has contributed, particu-
larly in the case of sport, to the progressive eradication of the discrepancy
between the televisual supply and viewer demand (Bolotny & Bourg, 2007).
Sport represents a strategic audience vehicle for television, as identified with
the opening ceremony of the Olympic Games in Sydney 2000 being viewed
by over 50% of Australians, reaching an all-time high rating of 72 (96.3%
share) in Sydney and 71 (93.6% share) in Melbourne (Maria-Bobbert,

2000). Sport featured in 54 of the top 100 programs by ratings, within
Australia in 2000 (Day, 2000). It is not uncommon for sport to feature
highly in ratings both nationally and across key markets. Major sporting
events like the Olympic Games and FIFA World Cup seem to be locked on
an ever increasing growth curve in terms of audience viewing numbers. The
2006 FIFA World Cup Final between Italy and France achieved an 84 per
cent share for RAI Italy*a figure that converts to 23 million viewers, while
in France 22 million viewed the game and even 17 million tuned in on US
television (Fry, 2006c).
Focusing on the broadcast rights market, there exists a demand for the
acquisition of broadcasting rights for events by networks (content) and a
supply of these same rights by sporting organizations (clubs, leagues,
national and international federations, and major event providers such as
the IOC). This is where broadcasting prices are developed. The deregulation
of the legal framework associated with broadcasting has modified the way in
which the supply and demand is arranged, and reorganized the rights market
by strengthening the power of sports organizations with respect to the
networks. Sport has moved from a position in the earliest days of broad-
casting where it received limited or no royalties for the rights. With the
cartelization of the supply of sport content (in the case of the sport
organizations), and of the increase in demand (by the broadcasters), a
significant increase in the rights value has resulted (Bolotny & Bourg, 2007).
While there are many examples that could be identified to support the
argument of rights values, the following quote expresses the impact of the
broadcast rights market quite clearly. ‘‘Jacques Rogge is quoted as saying he
expects a 40 per cent increase in TV revenues for 2012, compared to 2008.
In a similar vein, FIFA expects 2010 and 2014 to bring in a staggering $1.2
billion in TV rights fees’’ (Gillis, 2006, p. 17).
Identifying the impact of technology on presenting this position of
increasing demand by the broadcasters is how the paper will be developed.
The way in which the sport broadcasting market has opened up will be
identified in terms of the specific broadcasting distribution mechanisms.
Broadcasting in the Digital Era

Todreas (1999) refers to audio-visual broadcasting as having undergone three
eras of development. The first era saw the introduction of the broadcast
period between 19501975 in which the industry was developed with the
input of a few major broadcasting networks, studios, production companies,
and local stations. Distribution of broadcasting services was heavily
regulated and control largely rested with the television signal provider. A
second era emerged around the 1980s when cable (or subscription) services
were introduced. While cable television had existed in the US for a longer
period than this, this era introduced a series of broadcast and cable networks
to add to the field of studios, production companies, and terrestrial network
stations. Again regulation was a predominant feature and control shifted
344 P. Turner
Rights holders (content Broadcasters Viewers

providers)
Supply of rights Demand (acquisition Supply Demand (following of

of rights) ( programming ) sport)
Broadcast rights Sport programmes

market market
Technology
(New forms of media

distribution)
Economic Regulatory M ark e t
(Increased rights fees to (Increased number of (Access and appetite for sport
sport organisations) broadcasters seeking content) programmes)
Figure 2. The markets of sport and television

Source: Adapted from Bolotny and Bourg (2007)
only slightly to include the new cable distributors alongside the terrestrial
television providers.
The third era, referred to by Todreas (1999) as the digital era, commenced
in the mid-late 1990s and is evolving at present, with the introduction of
new broadcasting services from within the confines of technology. This era
presents great opportunity for sport content providers. Each era has seen an
evolution in the content and regulatory requirements associated with
broadcasting where the basis of influence has shifted from high levels of
control by the broadcasters to a greater influence of content creators and
digital technology providers.
The communications industry prior to this digital environment emerging
had largely been divided into categories in which each distributor had a
separate economic logic as well as a separate regulatory framework. The
telephone was separated from television, which in turn was distinct from
radio, which in turn was distinct from print. Even within the television
industry regulatory frameworks have separated free-to-air from subscrip-
tion services. Within the digital era, technology is largely making the
distribution of sport programming readily available through an increasing
number of conduits, going beyond simple terrestrial television delivery. This
section identifies the various distribution mechanisms that are now emerging
with respect to sport broadcasting in the digital world, through presentation
of a framework to examine how this distribution is evolving.
With advances made in computing technology and microcircuit design,
the compression of digital image data is now readily available. This
technology is being developed into a delivery system that will offer full-
scale digital transmission to end-users. The key to development of digital
television services rests in the capacity of high definition services and/or
multi-program services. With the development of purpose-built digital

television receivers, the opportunity for the viewer to receive high definition
wide-screen images, quality sound, and a range of ancillary data services in
parallel with the pictures and sound now emerges.
With the introduction of the digital era a ‘‘Great Value Shift’’ emerges
which ultimately has the potential to impact significantly on content and
distribution in broadcasting. This shift introduces expanded options of
delivery in which value can be extended more towards the providers of
content as new opportunities emerge in terms of the conduit (or delivery
system). Todreas (1999) and Van Tassel (2001) both argue that the conduit
will come to resemble a commodity, while content will have the opportunity
to create branded, high value-added products. High-profile sporting
competitions and events, which represent a critical content application in
the broadcast market, represent a high value product in this instance.
Van Tassel (2001) presents the movement of the computer and commu-
nications industries, from component fabrication to system integration.

These systems incorporate integrated systems that transmit and process all
types of data and information. This is seeing an industry convergence to a
broadband, switched digital format, making all data and information
sources around the world easily and uniformly accessible (DVB, 2007;
NEM, 2007). The applications associated with the digital transmission are
continually being extended to the sport broadcast.
The Impact of Technology and Deregulation on the Demand Side of Sport

Broadcasting
This evolutionary phase has implications for all sporting organizations,
ranging through economic, regulatory, and marketing perspectives. Each
component associated with digital distribution mechanisms in sport broad-
casting is examined, particularly with respect to the applicable delivery
components. Historically, sport has played a significant role in both the
development of technology and adoption of innovation by consumers
(Turner, 2000). Within the framework of digital development in broad-
casting, coupled with the potential convergence of infrastructure suppliers
and increasing deregulation of the conduit, a framework in which sport
broadcasting delivery is evolving and heading into the future can be
presented. Figure 3 reflects the way in which the different broadcasting
options are emerging, with implications to sport content providers in terms
of the media rights opportunities, the exposure capabilities, and regulatory
frameworks that exist in the digital world. This presents a vastly different
world to the one that previously existed, where there was a reliance on a
few major terrestrial or cable networks being the key sport broadcast
providers.
Within the sport-broadcasting environment, the digital era offers greater
access and opportunity for consumers, broadcasters, and sporting league/
club/event managers. While in the past professional sport organizations were
often faced with limited broadcasting options (terrestrial or cable only),
346 P. Turner
Technology
(New forms of media
distribution)
Digital distribution platforms Digital distribution pathways
Wired Wireless
Digital media Digital services
Cable Terrestrial Free-to-air

Utilities Satellite Subscription
Telephone Microwave PPV
Telephone
Digital device Digital windows
HDTV SDTV Live

eTV PConTV Delayed
TVonPC DVD Highlights
CD-Rom BBTV VOD
ITV TTV News
Digital output
Digital coverage
Audio-visual
Text International
Interactive opportunities National
Local
Narrowcast
Economic Regulatory Market
Figure 3. Sport broadcasting distribution systems in the digital era
technology is presenting a number of new and innovative distribution

systems. These distribution systems can be described under the following
headings:
. The digital distribution platforms (comprising wired and wireless
options). Within these distribution platforms are the digital media
available (terrestrial; satellite; microwave; cable; telephone; power
utilities), and the digital devices emerging (the many and varied options
for displaying content such as PC on TV, high definition, DVD, etc). The
digital output (comprising audio-visual; text; interactive opportunities)
represents how the information is presented to the viewer.
. The digital distribution pathways available. Within the distribution

pathways are the digital services (free-to-air; subscription; pay-per-view
[PPV]), the digital windows that exist (live; delayed/replay-rolling; high-
lights; archival/video-on-demand [VOD]; news), and the digital coverage
(international coverage; national coverage; local coverage; narrowcast
coverage).
Given the above scenarios, the content provider (the sporting organiza-
tion) who has an understanding of the different conduits that are emerging
within the digital environment, coupled with the knowledge of a guiding
criteria of accessibility, variety, quality, and choice, will be in a better
position to maximize outcomes relating to media rights-fee determination,
and exposure of their events (de la Fuente, 1998; Fry, 2006b). The
framework presented in Figure 3 through each of the components is
developed to explain these opportunities and alternatives.
Digital Distribution Platforms

Much of the attention regarding convergence and connected devices has
revolved around the platform. While the initial focus has been on the home
personal computer (PC) the value towards consumer electronic boxes is
increasingly being driven by the software they contain (Mittag, 2004).
Rather than having a one-to-one correspondence between a delivery channel
and a programme channel, the systems would be transformed into ‘‘contain-
ers’’ which could carry any combination of image, audio or multimedia
(DVB, 2007). Digital broadcasting into the home can occur through various
mechanisms including the television receiver, the home computer, or other
electrical appliances as required. The signal is distributed through wired and
wireless transmission systems. These platforms represent the variety of
technologies and infrastructures that bring video to viewers and users (DVB,
2007; Mittag, 2004; Van Tassel, 2001).
1. Wireless platforms are represented by terrestrial, satellite, microwave and
mobile telephony services.
2. Wired platforms are represented by cable, power utilities and telephone
services.
These wireless and wired platforms represent the electronic pathways into
the home. Initially, Negroponte (1995) identified only four electronic paths
to the home: telephone, cable, satellite, and terrestrial. Van Tassel (2001)
expanded these four pathways indicating the existence of six industries
representing the potential network providers to deliver digital television to
consumers. These industries are represented by: cable, telephone, utility
power, computer, satellite and terrestrial broadcasting.
Whether the focus is on the electronic pathways or the industries
responsible, the present view of digital broadcasting is one that can be
referred to as ‘‘digital media’’ or even ‘‘digital multimedia’’ (Mittag, 2004).
348 P. Turner
Digital broadcasting has the capacity to deliver multimedia in addition to

television programmes. It can be aligned to the television programme or
completely independent of it. The way in which this multimedia information
can be accessed is through a complete suite of digital satellite, cable and
terrestrial broadcasting technology (DVB, 2007).
Addressing the pathways that are emerging, they can be broadly described
as occurring through a satellite or microwave system, through cable,
terrestrial, mobile, or Internet delivery systems. A brief examination of the
digital media platforms is provided below.
1. Digital Media
Data can be distributed via a multitude of media approaches which include
satellite or microwave, cable, terrestrial, mobile or Internet. While there are
currently different global systems that exist, the actual delivery is not entirely
dissimilar between systems (DVB, 2007). The Digital Video Broadcasting

(DVB) group was one of the first projects to attempt to design a set of
standards for digital broadcasting. Currently comprised of over 260 broad-
casters, manufacturers, network operators, software developers, regulatory
bodies and others across 35 countries, it is responsible for setting standards
with currently in excess of 150 million DVB receivers being deployed (DVB,
2007).
Initial standards for the DVB group focused on establishing standards to
enable delivery of digital television to the consumer via the traditional
broadcast networks. This resulted in standards being established for DVB-S
for satellite networks, DVB-C for cable and DVB-T for terrestrial
networks. Further standards evolved in relation to support services such
as service information, subtitling and interfacing. The latest focus is on
standards governing network convergence and innovative technologies over
wireless telecommunications networks, with an emphasis on mobile
television and Internet protocol television (IPTV). This has led to a focus
on second generation satellite, cable and terrestrial delivery being
considered (DVB, 2007).
Distribution via satellite occurs through a direct broadcast satellite (DBS)
system where subscribers, or end users, receive signals directly from
geostationary satellites. Signals are broadcast in digital format at microwave
frequencies. Microwave multi-point delivery systems (MMDS) are terrestrial
broadcasting frequencies at a higher range and true line-of-sight is critical for
reception. Digital transmission on MMDS has the potential to allow either
higher definition or for larger number of standard definition programs to be
transmitted.
Given the rise of sports coverage via mobile or broadband, satellite
transmission provides a flexible form of delivery. Satellites can distribute
content of all types through a multitude of bandwidth solutions, across a
number of users*from TV broadcasts, video-on-demand, multicasting to
mobile handsets, or content delivery to Wi-Fi hotspots on boats, trains and
aircraft (Smith, 2006).
The use of a cable enables almost any number of services to be delivered

through utilizing this technology. If bandwidth in the cable becomes a
problem, another cable can be added. Optical fibre cable has the potential to
provide as much bandwidth as can conceivably be used, but at present fibre
to the home still remains more expensive than the alternative of fibre/coaxial
networks where coaxial cable is used for final distribution into the home.
Cable infrastructure is expensive to establish, but once established the
marginal cost of an additional channel provided on the cable is relatively
low, up to the capacity of the cable (Australian Broadcasting Authority,
1997). The use of cable for delivery of sports programming has been
extensive in the US market, and this is anticipated to continue to grow with
the introduction of two or three new cable sports channels into the future,
providing more choice and more options for sports organizations and
viewers (Sherlock, 2006a). In the European markets the battle for sports
rights has been fought out largely between rival DTH (direct-to-home)
satellite platforms. With the continued convergence of Internet and TV-

based digital technology, the cable and telecommunications companies are
beginning to enter the market in a more aggressive fashion. An example of
this is in Holland, where the telco, Versatel is offering Dutch fans live soccer
via broadband (Fry, 2006a).
Terrestrial television broadcasting creates numerous engineering chal-
lenges to the major networks due to the signal being transmitted across
the air through electrical interference, buildings and local terrain. Shifting
the current analogue terrestrial signal across to a digital platform is
currently one of the challenges being undertaken by governments across
the globe. Viewers are expressing a demand for high definition television
(HDTV) services and are now purchasing HD ready television sets in
large numbers (DigiTAG, 2007). While the satellite and cable platforms
have presented the initial moves into delivery of HDTV, the demand is
growing for traditional free-to-air broadcasters to provide similar services
through a terrestrial delivery option. The digital terrestrial system offers
the opportunity for the integration of multimedia and interactive video
opportunities to become an integral part of the ‘‘normal’’ broadcasting
service to the home.
The telephone presents both a wired and wireless pathway option in the
digital world. It has direct links to the transmission of computer and
interactive services, enabling data and vision to be transmitted easily. The
ongoing development of broadband services enhances the scope and
opportunities available. Also, while mobile telephony, with the emergence
of new systems (3G, or Universal Mobile Telecommunications System
[UTMS]), is in an early stage of development, the capacity that exists in
terms of being able to deliver much higher data-rates to mobile phones,
personal digital assistants and laptops is growing at an increasing rate. This
expansion of network capabilities means that video clips, sound and text can
be transmitted to wireless devices from any location. This development in
technology ensures that the options to broadcast major sporting and news
events in real-time over the telephone is upon us, offering sport potential
350 P. Turner
revenue opportunities through subscriptions, advertising, sponsorship,

betting and e-commerce (Fry, 2007; Lee, 2000).
The final group that could play a role in the broadcasting platforms area
are the power utility companies. Power utilities represent potentially major
players in the telecommunications delivery business. The industry enjoys
significant right-of-way access provided by to it by government, enabling the
erection of poles, ditches to be dug and cable strung wherever they need it.
Power companies have numerous miles of fibre-optic cable strung around
the globe (Todreas, 1999; Van Tassel, 2001). Despite their considerable
advantages, power companies have yet to take an active role in the world of
digital broadcasting.
2. Digital Devices
Distribution devices are represented by the digital video (DV) options that
are continuing to emerge in the digital world and which are set to replace the
current analogue television distribution system. As viewers increasingly
access HD content, whether it is through DVDs or other means, they will
increasingly demand similar or higher quality from their television service
(DigiTAG, 2007). Van Tassel (2001) identified eleven varieties of digital
television. Each one aligns with the digital media devices in some way either
as a standard or method of delivering content, or as a standalone or
networked technology. Television signal technologies represent those signals
that are commercially developed and transmitted television services created
by industry professionals, ensuring a relatively high quality of production
and technical proficiency. The commercial television services list includes:
a. HDTV: High definition television.
b. SDTV: Standard definition television.
c. eTV: Enhanced television.
d. PConTV: Internet and other data-based signals received by a set-top box
and seen on the TV screen.
e. Datacasting/TvonPC: Television signals sent to the PC and seen on the
computer monitor.
A further list of technologies are represented by standalone technologies

which include:
a. DVD: Digital versatile disc (digital video).
b. CD-Rom: Compact disc, read-only memory.
Medium-capacity networked technologies represented by:
c. Broadband digital TV (BBTV).
And narrow-capacity networked technologies represented by:
d. Internet TV (ITV) or telephone TV (TTV).
Sherlock (2006b) believes that the production of the digital signal will
move forward in two distinct ways. The first will be the live transmission
where innovations will lead to a more complete viewing experience for the
consumer such as live cameras rigged to the roof of the stadium. The second
area will be in terms of creation of unique content. Instead of creating what
looks like a TV channel on the web, organizations will create web-based
channels, which will provide opportunity for people to use interactively.
3. Digital Output
The digital distribution output is a standard audio-visual experience that in
the digital era can be coupled with text materials and interactive
opportunities including game-play experience, gambling and purchasing
opportunities to name but a few possibilities. The issue of online gambling is
one in which commercially, the market is tipped to be worth over $15 billion
in 2006, rising to in excess of $24 billion by 2010 (Fry, 2006c). The audio-
visual effect of sport broadcasting has possibly reached maturity in terms of
the current analogue signal. The clearer definition of vision and sound
associated with digital broadcasting represents a major shift forward in
terms of production values (Gillis, 2006). Text represents the incorporation
of information components that have the potential to complement and
enhance the existing broadcast. The opportunity to offer viewers readily
accessible facts and information will present added features to the sport
consumer. The choice of a range of matches or camera angles has initially
pioneered the digital interactive pathway (Gillis, 2006). The scope of future
developments is potentially unlimited in terms of presentation and added
options for sport consumers.
Digital Distribution Pathways

Distribution pathways represent the method in which the broadcast can be
both sold to and accessed by consumers. The pathways reflect the digital
services which comprise either a free or subscription service, the various digital
windows which represent the ways in which the broadcast can be distributed
via a live broadcast or in some archived fashion. Finally the distribution
coverage is identified. This is where the sport programme can be distributed in
a global fashion to a mass audience or a singular narrowcast fashion to an
individual.
1. Digital Services
Traditional terrestrial broadcast delivery available to consumers in the
broadcast era was largely via a publicly owned or commercially run
television network. The commercial networks recouped their expenditures
on programming largely through the sale of advertising time. Subscription
options emerged with the introduction of cable whereby consumers would
pay for access to a particular service or channel. This subscription option has
evolved further whereby some special events and programming attracts a
premium over and above the normal subscription charge (pay-per-view
352 P. Turner
option). In the digital environment, the incorporation of additional

interactive services such as gambling or merchandise sales will emerge
across all service options.
Free-to-air services present probably the most appropriate avenue for
mass audience response. The Olympic Games as an event of major
proportions has been mindful of the need to retain a global free-to-air
presence even while continuing to expand its revenue base from broad-
casting. This is no more evident than in Europe, where the European
Broadcasting Union (EBU) has held off other more lucrative challengers to
remain in place as the IOC preferred broadcaster across Europe until 2008
(Sport Business International, 2002). The resulting service is provided by
public and commercial broadcasters throughout the European nations. Fry
(2006c) believes that the Union of European Football Associations (UEFA) is
one organization that has adapted well to the complexities of the new
television landscape, finding a shrewd balance between free-to-air and pay-
TV opportunities, thereby optimizing TV revenues.

Subscription services represent an opportunity for broadcasters to recoup
expenditures through both a cost to the consumer to receive the program-
ming, coupled with an advertising revenue stream. Barrand (2002) indicates
that essentially, pay-TV platforms can cope much better with broadcasting
sport events as the coverage can be placed on dedicated sports channels as
opposed to having to fight for space in the more varied schedules of free-to-
air networks. In many cases, a joint agreement incorporating both the
superior distribution reach of free-to-air television with the larger scheduling
scope of a pay-TV operator offers the best solution.
An extension of the subscription option exists in a further mode which can
be defined as pay-per-view (PPV). PPV in the digital era presents an option
of great flexibility to sporting organizations with the capacity to charge an
additional premium to viewers for access to footage on the Internet or via
their mobile phones. An example of the Spanish Primera Liga in which all 10
league games are broadcast live, one on local TV3, a second on Canal
Espana, and the remaining eight games broadcast via PPV, indicates the
diversity of options available to audiences (Clarke, 2002).
2. Digital Windows
De la Fuente (1998) identified six distinct ‘‘rights’’ windows available for
interested broadcaster parties associated with the digital broadcasting
environment. These were identified as live (live coverage); super-live
(multi-camera options, data, etc); prime (prime-time repeat); best (exclusive
late prime coverage of highlights); news (premiere associated with controlled
news coverage), and review (wall-to-wall repeat coverage). These windows
were extended by de la Fuente in 2002 to be termed live; delayed; highlights;
news; rolling (wallpaper channel of delayed coverage); Club/Fan TV (club
channel); Internet narrow (information and stills); Internet wide (rich media
content on the Internet); mobile (mobile telephony); and archive (past
events).
Each of these windows presents an opportunity to develop an exclusive

category of sport content that would be of some value to a broadcaster. The
distribution could involve a free-to-air or subscription option to be made
available to the consumer, coupled with a clubleaguebroadcaster revenue-
sharing or distribution policy. The live option obviously represents the most
lucrative option available to a sport. This live option can extend to a division
of free-to-air or subscription options for premium matches, and via the
Internet, terrestrial or cable television. The delayed or replay options
represent the broadcast of a match on delay, enabling consumers with
differing availabilities to view or pay to be able to view the broadcast. The
rolling option is incorporated in this outline as a potential ‘‘wallpaper’’
option in which the event is continuously broadcast over a period of time
(de la Fuente, 2002).
Highlights could be made readily available and packaged in such a way
that the distribution of major game events could be via a subscription or pay
operator, or via terrestrial, cable, or telephony systems. The capacity for

consumers to call up sport event components, be it a full game or highlights
(or some other combination of options) presents an opportunity for sport
organizations and broadcasters. ESPN has in fact developed the archival line
of presentation, serving up a diet of localized content, based around sports
action from the past. ESPN Classic displays a great deal of footage from
past events (Britcher, 2002). Digital delivery will ultimately enable this
footage to be available in an on-demand capacity, where and when the
consumer requests it, capitalizing on the different pathways to disseminate
the signal. News tends not to be a protected right (exclusive coverage) in
most markets, but the capacity of a sporting organization or broadcaster to
control the coverage, especially in terms of presenting a special sense of
premiere will become increasingly a more important consideration (de la
Fuente, 1998). This is emerging more and more with mobile technology.
Subscribers willing to pay to see the goal being scored (near-live in instant
replay) on their mobile phone could well be counted as having received an
instant news broadcast. While the options have been presented in a
collective sense, the capacity to split any or all of these digital windows
does exist.
While the emphasis on distinctions between each window being a separate
entity has been made here, there is a growing version of thought that perhaps
digital convergence will ultimately make rights windows distinctions
confusing at best, meaningless at worst (Fry, 2006b). There is an emerging
belief that the sale of rights will be divided more by time-part rather than
media type or window type. The emphasis on exclusivity will still command
a premium, but there will be a rise in semi-exclusivity and cherry picking to
accommodate a range of potential partners. The English Premier League
rights have been packaged on a platform neutral package, making live games
available for simulcast across platforms. The audio visual rights were largely
sold on a live or on-demand basis, with time and not platform being the
point of negotiation (Thompson, 2006).
354 P. Turner
3. Digital Coverage
Coverage reflects the breadth of delivery and importance of markets to the
broadcaster and sporting organization and is represented by international,
national, local/regional and narrowcast coverage. As previously stated,
Negroponte (1995) indicated that different distribution coverage considera-
tions ideally require different distribution pathways. Given the nature of
economic return maximization principles of business, this does not always
eventuate. The coverage options also should be a consideration when
sporting organizations are distributing their sport product.
International coverage represents the capacity to broadcast to a global
market. This could be undertaken in the digital environment via a cable
broadcast on the Internet, available to anyone able to access the appropriate
Web pages and signals, or via agreements with individual broadcasters in
separate countries across the globe. In recent years the values of rights
internationally have started to increase, with strong signs that this

development will continue (TV Sports Markets, 2006). For example, in
2005 the UEFA Champions League sold its broadcasting rights to 233
nations. As a consequence of this, 1.5 billion people had the possibility to
watch the 2005 final between Liverpool and AC Milan. A further example
of the value of the rights being sold is presented by the English Premier
League (EPL). For the three years period starting with the 2007/2008 season,
the EPL expects to earn a total of $1275 million from its sale of international
rights. The Asian markets have emerged as the highest revenue generator and
account for 55% of the total overseas rights. Also note that for EPL the
overseas rights make up 33% of the total rights revenues (TV Sports
Markets, 2006).
National coverage represents a whole-country distribution mechanism in
which the event is available to a broad national market, whether live or
otherwise and free or subscription oriented. The importance of premium
sport content to a national network is highlighted by the return of NBC to
being a main mover in the bidding war for national sport league rights. For a
considerable period during the 1990s NBC was concerned only with
ensuring access to the rights for the Olympic Games, which they hold
through to 2012. With the decision to spend $3.6 billion on acquiring the
rights to the NFL’s Sunday night games for a six year period, it made a
strong statement of where it sees its opportunities to develop a national
audience lie (Wilner, 2005).
Local coverage represents the presentation of the broadcast within a
regional or local market. This can be achieved through any of the pathways
previously listed. In the US markets these local networks, or as they are
known, regional sports networks (RSN) are performing a vital role for those
games that fall outside the centrally-negotiated national rights deals. An
example of this is aligned to Major League Baseball where the teams can
provide their games locally through an RSN, giving much greater access to
viewers in their home market than via national broadcast carriers. The home
team also generates revenues which go directly to the team (Fry, 2005).
The opportunity in the digital era to have an audience of one exists

(Negroponte, 1995). All broadcasting can in effect be made to order, with
information being extremely personalized. The capacity to receive messages
personalized to your needs, coupled with the broadcast of major sporting
vents is more and more becoming a reality. Digital pathways present this
opportunity more and more readily.
Regulatory, Market and Economic Impacts

The distribution applications associated with digital broadcasting are
potentially many and varied. There is some evidence to support the
argument that whatever the ultimate application, the sporting organization
has to be aware of the content, exposure and revenue (media rights)
potentials that are shifting with the advent of digital delivery.
1. Regulatory and Content Applications

Content applications reflect the issue of who will distribute the sport and
how that will occur. Todreas (1999) indicated that the content was largely
the principle domain of the major broadcaster in the previous eras associated
with broadcast and cable. This right has been heavily guarded by the
broadcasters (for example some countries have legislated in order to guard
the right to content*the anti-siphoning legislation in Australia is an effect of
this). The professional sport league competitions and team owners have also
legislated to protect this right in certain instances.
The digital era will continue to have an impact on the content
applications, through generating greater opportunity to distribute the games
and events of a sporting organization, through a variety of distribution
avenues and mechanisms. The capacity for a sport to provide competition
games live, delayed, or on-demand, to a global or regional audience,
requesting a payment for the viewing privilege, and with varying levels of
quality being acceptable, indicates that the production and distribution by
major television networks is no longer the only or preferred option.
Developments in the media and communications sectors are resulting in
complex business models and relationships, and increased blurring between
what have traditionally been perceived as separate markets.
2. Marketing and Exposure Applications

Marketing applications can be considered with respect to how people will
seek to view the content and how widely it may be distributed. There is little
point in maximizing revenue return with a pay-per-view broadcaster if no
one can afford to (or is willing to pay for) the privilege to view the sport
broadcast. The capacity to draw large audiences in order to continue to
profile and grow the sport is still a major consideration for any sporting
organization.
356 P. Turner
An example of a sport that has managed to capture significant audience

attention is that of the EPL. By 2004, EPL football was the most watched
sport in Malaysia, Thailand and Singapore (Irish Independent, 2004). In
2005, it was the most popular televised football league in China, rising from
third position two years ago. According to an Internet survey, 83% of
Chinese football fans preferred watching the EPL to matches in the China
Super League (CSL) (China Daily, 2005).
While attracting vast audiences is important to a sport, equally as
important is the necessity to ensure that the sport does not get distributed
on a mechanism or in a manner which makes it too complicated and
therefore not suitable to the potential viewer. This may reflect the
requirement for the broadcast to be accessible, immediate, byte-sized (for
example a short 30 second highlight on a mobile phone as opposed to a five
minute news segment), simple to use and personalized where possible
(Kwong, 2001).
Smaller sports organizations will also be able to maximize the opportu-

nities being presented by broadcasting technology and therefore take charge
of their own destiny. Although the opportunity to achieve a high profile on
popular free-to-air or pay-TV broadcast platforms is unlikely to eventuate,
broadband presents great opportunity to create a video-led destination for
enthusiasts. Sports which struggle to reach critical mass in one territory will
find a way to reach a wider audience online if they are managed effectively
(Fry, 2006b; Thompson, 2006).
3. Economic and Media Rights Applications

The capacity to ‘‘unbundle’’ or ‘‘parcelling’’ media rights represents a
quantum leap in the opportunity for all interested parties in the arrange-
ment. The development of distribution windows changes the focus of selling
all or most of the rights to one buyer, to selling the rights in distinctly
defined, homogenous windows, that each offer some form of exclusivity to
the buyer, whilst at the same time offering the opportunity for each to
coexist with each other.
Developing different windows for the distribution of sporting events is an
economic opportunity for all parties. The big pay-TV operators are
indicating a reversal in funding of continued right fee increases, therefore
the ability to present and package a sport into different windows with
different buyers and distribution options exist. This would present both
greater opportunities for fans to view part or the entire game as well as
providing broader exposure opportunities to the sport.
One of the key factors in the lucrative outcome achieved by the EPL for
broadcast rights is the willingness of the League to sell the global rights on a
technology neutral basis. This means that the rights are exploitable over
television, the Internet and mobile (including video-on-demand). This
approach has resulted in an increased level of interest from potential bidders
in the broadcasting markets.
In July 2004, the European Broadcasting Union (EBU) acquired the

broadcasting rights for the 2010 Winter Olympic Games and the 2012
Summer Olympic Games. This deal covers 51 countries, excluding Italy, and
a wide range of media categories, including for the first time multi-media
and mobile telephony. The agreement is valued at t614 million and as part
of this agreement, the EBU members are committed to broadcasting major
additional Olympic programming and promotional efforts to support the
Olympic brand and promote the Olympic ideal outside Games time. The
IOC has valued this contribution at a further t125 million (Olympic Games,
2006).
Direct-to-consumer digital distribution will also be ultimately represented
as part of the economic mix in the sale of broadcast rights. This means that
rights holders will be both broadcasters and retailers, ensuring the assistance
of third party expertise in order to maximize business efficiency in these
areas. Governing bodies, leagues, clubs and individual talent will, inevitably,
become embroiled in showdowns over revenue share. The direct delivery of

content to fans will ensure that organizations must develop broadcasting
that has sufficient commercial value (Fry, 2006b). While the impact of
technology in an economic sense presents huge opportunity for major sports
rights to occur, including development of sophisticated revenue modeling,
every piece of sporting inventory will be deemed to have a value, which is
currently not necessarily being realized (Fry, 2006b).
Summary
The development of digital broadcasting opportunities is reflected by
Negroponte (1995) who indicated the digital delivery channels were best
represented by topology rather than economic models. Negroponte’s ideal
held that presentation of a live national broadcast of a major event such as
the Super Bowl, where the same bit of information is delivered at the same
time to every household in the continental US, should ideally be delivered
through the use of a single satellite footprint. Equally, a regional news
broadcast should be delivered terrestrially and even better through cable. By
way of another example, the presentation of the previous years Super Bowl
would be enhanced through the use of a phone call (versus waiting for
somebody to rebroadcast it). After the game, the Super Bowl is suddenly
archival data and the suitable channel is very different from when it was
‘‘live’’. The problem that exists, according to Negroponte, is that each
channel tries to increase its payload, often by using itself to do what it does
least well.
With the changes that are emerging in broadcasting technology, coupled
with ongoing deregulation of the broadcasting markets by governments
around the world, the possibility of broadcast capacity extending to a range
of potential services via a number of possible conduits opens up. The way in
which content will be distributed and accessed by various parties has a range
of implications and applications to sport. The neat boundaries between
platforms are already disappearing, and in the future it is likely that there
358 P. Turner
will be just media brands*and their priority will be to reach audiences by

whatever means possible (Fry, 2006b).
An example of the media boundaries disappearing is where SkyDigital’s
future as the major/sole supplier of rights to the EPL has been challenged by
the European Union’s (EU) competition authorities. The EU has regarded
exclusive television contracts and collective bargaining by soccer leagues as
being bad for consumer choice. The answer from Sky has been to move more
towards being a cross-platform player*linking mobile and broadband
services to its existing pay-TV offering (Fry, 2006a).
Examples of how the sport broadcast landscape may evolve can be best
described using the following excerpts. These scenarios represent only some
of the possibilities that emerge in the digital era. The vast array of
possibilities is endless and reflects the requirement to gain a clear under-
standing of both the needs of the sport organization and the broadcasters.
1. Access to a mobile highlight of a sport event, from a global international

roaming network, under a PPV subscription option, with an interactive
reply component. This option will present great access and possibly great
value to the consumer, potentially significant revenue and exposure
opportunities to the sporting organization, and new advertising and
sponsorship avenues for both the sport and the telecommunications
service provider.
2. Presentation of a terrestrial free-to-air package of highlights to a local
market, incorporating interactive opportunities to purchase merchandise,
enables the viewer access to the highlights at the prescribed time, while
the sport provides the broadcaster with exclusive access to the highlights
package for a fee and merchandise sales. The broadcaster receives content
with exclusivity and ability to generate advertising revenues.
3. A pay-per-view, live broadcast over the Internet, comprising international
coverage to existing Web site subscribers, and including interactive
purchase options. The viewer (in this instance club fans) pays to watch
the event live on the Internet, the sporting organization receives revenue
directly through subscriptions (with production and distribution managed
in-house), advertising and merchandise sales, and the Internet service
provider receives the normal site access and download income.
4. The media home of the future will comprise a true multimedia home
platform that can deal with seamless networking, multiple content
formats, full digital rights management, and be able to be operated
simply and intuitively by the end user (consumer). This will enable the
end-user to access television when they choose to access it, other
interactive content of their choosing, full gaming and gambling services,
full shopping and other related services (such as banking), in a service that
suits the needs and capacity of the end user (DVB, 2007).
These examples portray a few of the possible options that will emerge
with the introduction of digital delivery services. Sporting organizations,
whether they are sought after higher-profile television sports, or smaller
organizations seeking to develop broadcasting opportunities, need to

become more aware of the possibilities that are emerging in order to
maximize revenue and exposure opportunities. Equally important to the
sporting organization is the development of an understanding and awareness
of the content implications that need to be considered in the digital world.
The sport manager who can understand the developments and opportunities
that are emerging alongside the supply and demand associated with digital
delivery systems, will be better placed to guide their sporting organization
into the future.
The emphasis on the emerging global digital broadcasting world can be
best summed up by Thompson (2006) who states:
We are moving to a world where different companies have control of different parts of the
content supply chain. Whether it be content, distribution, gateways or navigation, a host
of new players operate in the digital content delivery chain. It is a much more complex
world, and those that build imaginative and creative partnerships within this world will be
the ones best placed to succeed. (Thompson, 2006, p. 24)
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On: 5 November 2009

European Sport Management Quarterly

The Impact of Technology on the Supply of Sport Broadcasting

Online Publication Date: 01 December 2007

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The Impact of Technology on the

Deakin University, Australia

commodify its product (Magdalinski & Nauright, 2004). The Olympic

broadcast revenues, labour market deregulation, government and competi-

support the diffusion of this technology. Television in Australia commenced

television networks and cable providers. The technological progress that is

The Professional Sport Supply Networks

viewing spectators. The stadium-visiting spectator attends the stadium

Downstream Firm Upstream

Advertisers Sport Sport Organisations (clubs, Coaches

Figure 1. The professional sport supply network*main protagonists

one aspect of a sport organization activity (events or competitions), while

There are a number of sets of suppliers within the upstream sequence of

share) in Sydney and 71 (93.6% share) in Melbourne (Maria-Bobbert,

Broadcasting in the Digital Era

Rights holders (content Broadcasters Viewers

Supply of rights Demand (acquisition Supply Demand (following of

Broadcast rights Sport programmes

(New forms of media

Economic Regulatory M ark e t

sport organisations) broadcasters seeking content) programmes)

Figure 2. The markets of sport and television

multi-program services. With the development of purpose-built digital

nications industries, from component fabrication to system integration.

The Impact of Technology and Deregulation on the Demand Side of Sport

Digital distribution platforms Digital distribution pathways

Digital media Digital services

Cable Terrestrial Free-to-air

Digital device Digital windows

HDTV SDTV Live

Economic Regulatory Market

Figure 3. Sport broadcasting distribution systems in the digital era

technology is presenting a number of new and innovative distribution

. The digital distribution pathways available. Within the distribution

Digital Distribution Platforms

Digital broadcasting has the capacity to deliver multimedia in addition to

dissimilar between systems (DVB, 2007). The Digital Video Broadcasting

The use of a cable enables almost any number of services to be delivered

satellite platforms. With the continued convergence of Internet and TV-

revenue opportunities through subscriptions, advertising, sponsorship,

A further list of technologies are represented by standalone technologies

Digital Distribution Pathways

option). In the digital environment, the incorporation of additional

TV opportunities, thereby optimizing TV revenues.

Each of these windows presents an opportunity to develop an exclusive

operator, or via terrestrial, cable, or telephony systems. The capacity for

internationally have started to increase, with strong signs that this

The opportunity in the digital era to have an audience of one exists

Regulatory, Market and Economic Impacts

1. Regulatory and Content Applications

2. Marketing and Exposure Applications

An example of a sport that has managed to capture significant audience

Smaller sports organizations will also be able to maximize the opportu-

3. Economic and Media Rights Applications

In July 2004, the European Broadcasting Union (EBU) acquired the