Posts Tagged ‘Media’

The History of the NBA and its TV Rights

Monday, April 28th, 2014

nba logo     tv logo

The National Basketball Association has a rich history of growth since their first television contract in the 50’s. One piece of quantitive data to represent this development is television rights deals. When we examine this information we see how the amount of money involved in the network and cable contracts has increased with each contract. This growth is consistent and exponential.

One important differentiation to understand is between “network” and “cable” television. Network television has been around longer and is delivered to homes through radio waves. Cable television was a later invention that came to surface around the 80’s. Cable TV essentially un-monopolized the network television market allowing for more viewer choice.

As the name implies, it is delivered to homes via cable. For purposes of this blog we will avoid redundancy by just talking about “network” television. The network and cable contracts both show similar trends. The network deals were between the NBA and networks such as ABC,NBC, and CBS.

celtics v lakersBird, Magic, and JordanLBJ

The NBA’s first “network” television contract was in the 1953-1954 season for $39,000 .  In the 1973-1974 season the contract ballooned to a 3-year contract worth $27 million dollars.  An explanation for this could be the NBA’s dramatic increase in popularity with the domination of players such as Bill Russell and Wilt The Stilt Chamberlin in the 60’s.

Another large jump in revenue was between the 1986-1990 and 1990-1994 contracts. The contract value went from $173 to $601 million. This can be equated by the phenomenal marketability of key players and teams such as Magic Johnson and the Lakers, Larry Bird and the Celtics and the emergence of a young Chicago Bulls star named Michael Jordan. If we were to name all of the influential players of the 80’s, by itself the list would greatly exceed our 250 word minimum blog!

The NBA’s current network contract was signed in 2008 and is the longest and priciest TV contract in the league’s history: 8 years and $7.44 billion . The forefathers helped grow the league into a powerhouse and current star players such as LeBron James continue to elevate the status of the league. However, the increase in talent and media coverage makes it difficult to see the ceiling in terms of NBA TV rights growth.

NBA Basketball

One last important point to make: The NBA has a large global marketplace. It is currently broadcasted in 215 countries. None of the figures we discussed included data beyond the United States.

 

 

 

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Compete like the U.S. Ski Team or Against it?

Tuesday, November 12th, 2013

Within the last year or so, Vail Resorts has come out with the third generation of its mobile and web-based ski and snowboard application called Epic Mix.  This application for phones will provide skiers with a way to follow ski racing at six of the seven resorts across California and Colorado.  With a hope of achieving a large use of this application, Rob Katz, the Vail Resorts chairman and chief executive officer says:

We created EpicMix to bring together the digital and physical experience of skiing and riding and make it easy to share your story with friends and family.

With this product, racers will be able to automatically compare their race times with U.S. Ski Team athlete Lindsey Vonn, with gold, silver and bronze medals that can then be posted on the users twitter or facebook.  Katz says:

Working with World Champion ski racer Lindsey Vonn, we have completely redesigned how skiers can fully utilize the latest digital technology to compare themselves against the very best, seamlessly track and share all of their accomplishments and compete against racers from six world-class resorts.

http://www.firsttracksonline.com/2012/08/22/vail-resorts-lindsey-vonn-use-social-media-to-get-kids-into-ski-racing/

By skiers and ski racers using this application, they are able to feel connected to the infamous Lindsey Vonn by comparing times and receiving medals.  By Lindsey Vonn not only being looked at as a role model that skiers and ski racers can connect to, she help design the application knowing what type of things young racers like to connect to.  Lindsey Vonn says:

Growing up racing, I always looked forward to telling the stories of my races and being able to track my progress and see how my friends were doing. The opportunity to make that happen using the latest technology in social media is absolutely the right next step for ski racing and I was thrilled to be able to work with Vail Resorts to make this happen.

http://www.firsttracksonline.com/2012/08/22/vail-resorts-lindsey-vonn-use-social-media-to-get-kids-into-ski-racing/

Ways in which that this product could be made better is advertising it during World Cup Races, or advertisements on the Vail Resorts twitter and facebook pages.  More skiers, ski racers, and skiers of the Vail Resorts area will have a higher opportunity to being exposed to EpicMix and the product could therefor make more money.

MLB and MTV??

Tuesday, November 12th, 2013

Although television is not considered a new form of media or technology by any means, reality shows on channels such as E!, MTV, and Bravo have grown more popular in recent years. However, I think we’ve all had enough of the Kardashians. Celebrities and wanna-be stars are becoming more and more over the top as they show the world glimpse into their “fab” lifestyles of excess.

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Perhaps this is why reality television shows are turning to athletes to continue gaining viewers. Athletes including Ryan Lochte, Lamar Odom, Kris Humphries, Apolo Anton Ohno, and many other athletes and Olympians have appeared on or starred in their own reality shows, increasing their popularity or infamy, in some cases. Perhaps shows that feature purely athletes and teams (Two-A-Days, Venus and Serena) have given Major League Baseball an idea to join the trend.

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According to Business Insider and Associated Press, Boston Red Sox player David Ortiz is collaborating with Pittsburgh Pirates player Andrew McCutchen to produce a reality TV show on MTV. The show hopes to “meld pop culture and baseball” throughout a 30-episode series. Tim Brosnan, executive MLB vice president stated the show’s main goal was to “promote the game and its players with a young generation” which should reach out to target populations, increase the fan-base, and increase interest in baseball. Brosnan went on to state “Like any other business, cultivating new fans and customers is, was and always will be an imperative for baseball.”

http://www.businessinsider.com/mtv-and-major-league-baseball-are-collaborating-on-a-new-television-series-2013-11#ixzz2kTUELbKu

The show has not yet been named, but generating “hype” about the show via twitter, vine, facebook, etc. would aid in its success and achievement of its goals. Vine is a new form of media that continues to gain popularity. Perhaps the show’s producers could begin creating vines to help advertise the show, or create an iPhone app to host fan’s predictions/opinions/etc.

Note: This post is NOT saying TV is the new media. The success and fame of reality TV star athletes/Olympians  (NOT TV itself) is the outlet and new form of media to gain fans and draw attention to a specific athlete or team.