DESCRIPTION / REQUIREMENTS:
This assessment contains two parts (A & B), aligned with weeks 1 to 4 of the course. It aims to have students use different skills to actively engage with major content areas. Your major challenge will be the ability to concisely develop key responses in each area. It is recommended that students complete tasks periodically as the relevant weeks are covered.
The two pieces should be submitted as a single document with all appendices included. A single reference list should be included that includes a combination of journal articles, texts and industry reports (marks will be deducted should this not be undertaken correctly). This includes formatting that is strictly aligned with Harvard referencing guidelines.
PART A. Sport Broadcasting Value Chain and Vertical Integration.
BACKGROUND: Your task is to analyse and explore the impact of an example of 'vertical integration' in the context of sport broadcasting. This section will require you to firstly engage with the week 1 and 2 content, specifically the areas on the Sport-TV relationship model (week 1 and week 2 content) and the Sport Broadcasting Value Chain (week 2 and Solberg & Hellend, 2017, p. 19).
TASK: Describe a current or potential example of where a sport organisation or media organisation has implemented (or could implement) a vertical integration strategy within the sport broadcasting industry in Australia or overseas. You will need to be able describe both the pre- and post-scenarios (i.e. the situation prior to and after the actual or proposed strategy).
In your response you will need to:
1) Firstly, provide a graphical representation of the Sport-TV Relationship Model within this sport prior to the change (or initiation of the vertical integration) taking place. Include a brief description of each organisation within the framework Secondly, describe the vertical integration strategy that is being implemented (or could be implemented) by a sport organisation or media organisation. You should include how this action fits or aligns with the definition of vertical integration (e.g. Solberg & Helland, 2017), as well as a detailed description of the implications for; a) the sport broadcasting value chain in this example and b) other organisations identified in part 1 of this section.
PART B. Broadcast Analysis and Valuation Task.
BACKGROUND: This section will require you to watch one sport broadcast which is telecast on Free to Air TV and clearly make clear calculations on aspects of the broadcast and how it is divided and packaged. Your chosen footage should commence from the start of the transmission (including any pre-game commentary) and conclude at the end of telecast (i.e.; include post-game footage). It is recommended that you record your telecast as you will be unlikely to complete all the required analysis from the first viewing.
For this topic, you will need to choose a sport league or event which takes place over the MMS773 Unit. It cannot be a highlights package, but rather the delivery of a program 'as it airs' on free-to-air television. You should use an Australian example, however you may not use AFL as this is the setting used in our Week 3 workshop. As a guide, a NRL game would be suitable here, but other examples can be chosen (please consult the unit chair to ensure your example is suitable). For the league or event you have chosen, you will need public information on the value of your current chosen broadcast deal or sufficient information to allow you to make a realistic estimate of its valuation.
As background you will need to provide a calculation of what the content could be valued at for the FTA broadcaster showing the footage. Here, you will need the following information (at a minimum):
Value of rights deal (amount paid by FTA broadcaster)
Length of rights deal (years)
Number of games allocated to broadcaster (per year, per deal)
Length of an average game or match telecast
In short, you will need all information to allow you to (approximately) calculate what the broadcaster pays per game for your sport.
From here, you will need to watch your telecast footage and make clear notes of the following to enable you to build an accurate timeline and aggregates to comment on the following:
Broadcast structure
Advertising
Value Maximisation
TASK: In your response you will need to address three areas:
1- Broadcast structure
• How many minutes / seconds is the telecast, of which how much is game vs non-game content?
• How much of the telecast is advertising time and how is this distributed across the broadcast (i.e. when are the advertisements in the broadcast and what is their length)?
A diagram/table and short explanation is suggested to address the above two dot points and you are encouraged to use a high level of detail in this analysis.
2- Advertising
• Perform an analysis of the advertisers.
Who is purchasing advertising?
How many times is each advertiser advertised during the telecast? Can the telecast advertising be described as concentrated among a few core brands or disbursed widely among many?
• Based on the current set of advertisers, what can you infer about the composition of the likely viewing audience? (.e to what extent do the brands/products advertised and their content/execution appeal to a targeted demographic vs a general population)
3- Value Maximisation
• In what other ways are advertisers/sponsors built into the broadcast? (do not include at ground signage or team sponsorship, just those specific to the broadcaster). Provide an analysis how much airtime these other broadcaster assets receive.
• Using your calculated average value for the cost of rights per game, provide a commercial model for how the broadcaster may recoup that specific amount for your chosen sport (i.e. use calculations to show what each advertisement or sponsorship is worth). This model should integrate your findings from the previous dot point as well as section one 'Broadcast Structure').
For this dot point, you should (hypothetically) consider that the rights fee paid is the only cost to the network and they need to recoup this from the advertising and other broadcast assets built into the broadcast. Provide a clear explanation of process you have used and how the broadcaster could recoup 100% of the paid rights fee paid (Show any tables/figures/calculations and a short explanation).
Propose a method/addition/alteration to the broadcast which could deliver an increased financial return for the broadcaster. This can include a proposal that would require a non-vital rule change to the sport in question. Explain, justify and to the extent possible, quantify the potential benefit of your proposed
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