The value of sports media rights have reached a ‘high-water mark’, according to 83 per cent of respondents in a new study.
Digital consultancies Seven League and parent company Mailman arrived at the figure after questioning 30 sports business executives, representing broadcasters, media agencies and sports with a cumulative global audience of 4 billion.
According to the study, the coronavirus pandemic has accelerated the sports industry’s transition into a third age, where digital disruption is affecting every area of the landscape, including content, sponsorship, data, streaming and competition for audience attention.
Sports Media Rights Survey : ‘Industry has reached inflection point, time for media rights to correct’
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Referring to the figure, the report (The 3rd Age of Sport – a manifesto) claims that the industry has reached an inflection point in which it will need to diversify revenues to plug the gap in falling broadcast fees. With business-to-business (b2b) revenues coming under threat, it says right-holders will need to pivot to new business models around e-commerce, streaming, ticketing, subscriptions, sponsorship and membership.
The 3rd Age of Sport manifesto, produced by sports digital agency Mailman and the Seven League consultancy, is based on consultations with 30 sports executives with direct experience in rights negotiations, the overwhelming majority of whom believe that a rights correction is due.