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CHAPTER THREE
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broadcasters can t support these costs of rights and production without complete exclusivity Thus, the integration of media is necessary because of the desire to package advertising sales and to retain the audience within a closed network of coordinated storytelling, sponsor benefit, and cross promotion Separation of rights is inefficient and ineffective Although many rights holders may seek to retain their own interactive rights so that they may determine their ultimate value as a revenue source, the trend is to couple the interactive rights with the event broadcaster In the recent example of the United States rights to the Olympics, NBC paid the International Olympic Committee (IOC) $4 billion for the combined TV and US-based interactive rights NASCAR, on the other hand, divided its TV rights among several broadcasters, one of whom, AOL/Time Warner (Turner), acquired the interactive rights pursuant to a separate arrangement for the astounding sum of $100 million over six years Many rights holders look at this deal with envy, but the truth of the deal is that, in fact, it s actually a promotion and advertising deal with an assumed value equation The day of the huge interactive rights fee without a broadcast partner is over
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THE WEB EXPERIENCE TODAY
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The current Web environment for sports is divided between delivering at-home programming over 28k and 56k modems (broadband penetration is growing but is by no means pervasive) or, in the case of work environments, higher speed T1 line This dichotomy makes production options difficult, because the richer multimedia experience is largely unavailable to the home computer As interactive media producers seek to expand their connection with their broadcast partners through the use of full-motion video and simulcast features, their efforts are limited to workplace applications Broadband penetration and the growing trend toward programming for wireless devices will open the scope of opportunity for new production options but the core entertainment value will continue to be driven by the trends toward converged experiences
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CONVERGENCE PROGRAMMING IN SPORTS
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THE CONVERGENCE EXPERIENCE
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Many broadcasters and their interactive media partners have begun to develop convergence models which, in most cases, focus on creating greater viewing choice (access to multiple camera feeds, for example), immediate access to statistics and other text-based information, and greater reliance on data visualization Sky Sports in the United Kingdom has conducted trials with football matches In the United States, NBC has produced convergence trials with NBA games and college football through their WEB TV and Wink systems Generally, these trials have utilized the inherent vertical blanking systems to combine the broadcast signal with a text delivery frame that can be reconfigured for interactive applications Through this device the user is able to access on-demand programming, commercial buying options, and two-way communications through e-mails, chats, and other community services The forthcoming convergence of broadcast and interactive media will create exciting opportunities for consumers as well as for broadcasters As bandwidth increases into the home, and the Internet protocol-driven set-top box becomes integrated into the television set, the availability of convergence programming for sports events will be an outgrowth of today s simulcast production experiences Consumers will increase their demands to choose and control their entertainment experience The consumer will be able to access compelling and engaging news, information, and entertainment experiences through one appliance or through multiple appliances that can be accessed no matter where they are or what they re doing This new value equation will not only give the consumer more choice, but will also allow programmers to increase their revenue streams, promotional opportunities, and breadth of distribution
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C H A P T E R F O U R
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THE ACCENTURE MEDIA & ENTERTAINMENT INDUSTRY GROUP
landmark study by Accenture* reveals that consumers want total control over content anyplace, anytime, across any channel, and in any context and they can hardly wait for the day when technology makes them large and in charge E-books may rock, but will the average consumer read them Napsterites claim content is free, but music moguls contend that copyright is king Hollywood holds onto its DVDs and hopes that MP4 won t make movies the latest contraband casualty With each passing day, more toys pop out of the technological toy chest, delighting digerati and challenging established industry players
*(Accenture, formerly known as Anderson Consulting, is a $10 billion global management and technology consulting leader) Excerpted from The New Digital Content Consumer: Large and In Charge Strategic Implications of Consumer Preferences in an Era of Digital Choice, by the Accenture Media & Entertainment Industry Group Copyright 2001 Accenture All rights reserved Study authors: Ken Mifflin, Managing Partner North America, Stategic Services, New York; Andres Sadler, Partner, New York; Rick Joyce, Partner, New York; David Brodwin, Partner, San Francisco; Roberta Glaser, Experienced Manager, New York Key contributors: Carolyn Hudson, Kathryn Pierson, Rebecca Sobo, and Kimberly Yates For more information: Susanna J Deegan (susannajdeegan@accenturecom) 917-452-2919; Perzon Mody (perzonmody@accenturecom) 44-207-844-3088 53
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