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A PRESENTATION BY Jonathan Riley 25th September 2008

A PRESENTATION BY Jonathan Riley 25th September 2008. 'Marc Hebert'. Our Brief – to provide insight and answers to the following 1. How do Sports Rights Holders Maximise Income ? 2. How do African Broadcasters Afford Sports Rights ?

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A PRESENTATION BY Jonathan Riley 25th September 2008

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  1. A PRESENTATION BY Jonathan Riley 25th September 2008 'Marc Hebert'

  2. Our Brief – to provide insight and answers to the following • 1. How do Sports Rights Holders Maximise Income ? • 2. How do African Broadcasters Afford Sports Rights ? • 3. What will be the New Opportunities over the next 3 years ?

  3. Octagon Marketing South Africa Pty Ltd, is a principal player in South Africa's sponsorship industry • It is a part of Octagon, the global sports and entertainment marketing arm of the Interpublic Group • It has the ability to tap high-level expertise from more than 1,000 staff in 24 countries across 6 continents • Octagon, Interpublic’s TV arm, distributes more than 4,000 hours of entertainment worldwide annually • Altogether, Octagon has 500 corporate consulting clients and represents 800 athletes globally • Octagon Marketing in South Africa has formed a strategic Africa-focused partnering relationship with ABN Holdings Ltd

  4. ABN is a visionary, pan-African television barter syndication and network management company. • ABN’s aim is to revolutionise free-to-air and subscription TV broadcasting across sub-Saharan Africa. • ABN has established professional relationships with key industry decision makers across sub-Saharan Africa. • ABN has already made significant contributions towards the development of the new African Union of Broadcasting.

  5. SYNDICATION • Increasingly, South Africa and Nigeria have become the most lucrative sub-Saharan markets for major sports rights holders • Outside of these two markets, significant value can also be generated via sub-regional barter syndication package deals • Rights holders are likely to generate more income by partnering with Africa’s proven commercial agents and broadcasters • Substantive income can be made via direct sponsorships, spot ad sales, and other ancillary efforts including SMS texting • Altogether, broadcast rights to major sports events, exploited in unison, will become a potent industry-building cash cow • The most sought after broadcast rights in sub-Saharan Africa is soccer. Its huge potential is yet to be fully exploited

  6. NETWORKING • Africa’s stand-alone terrestrial television markets are not sufficiently attractive in commercial value to major rights holders • However, a consolidated viewership – from a pan-African perspective - represents a very attractive commercial proposition • Broadcasters across the continent need a proficient professional network which can partner with major rights holders • The objective will be to generate an efficient economies of scale and incremental revenue streams for its network partners • The network can be organised to plan for the enduring growth of the industry and to harness new technology opportunities

  7. Thank You INNOVATION • The FIFA 2010 World Cup Tournament to be held in South Africa, represents a watershed moment for Africa’ s media • FIFA in Africa will attract investors to Africa’s media space. But the continent’s media entrepreneurs will need to be ready • Africa’s broadcasting media will require entrepreneurial leadership to effectivelyy harness ensuing FIFA 2010 opportunities • A perceptive leadership will organise an efficient digital switch-over plan and the secure the investment to make it happen • The digital television age will pave the way for quality African generated content to secure lucrative international markets • A virtuous growth cycle, similar to the explosive growth of India’s TV media will then kick in. Rapid growth will commence.

  8. THANK YOU • This is a great time for Africa , the cradle of mankind– Post Olympics the focus and eye of the world will be increasingly upon us – Its Up to Us. As Lenny and Joe spoke of - Forge those relations now • Sports is a major driver of content and revenues – so know your customers be they both Viewers and Advertisers • Don’t hamstring the Federations – no matter how tempting produce and control local rights BUT allow Federations to run their business – help develop a sustainable and successful financial model together • Prepare for the opportunity and threat – the onset of new stations / channels WILL dramatically alter the broadcast environment – less ad revenue across considerably more choices – BUT know your strengths & REACH

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