Guesthouse in springs | Nest and Rest | Accommodation in South Africa
Gary Rathbone Sports Pro Presentation
1. Sports Media as a
Contributing Business Sector
of the Sports Industry:
Opportunities for Stakeholders to MaximiseThis.
Gary Rathbone
Sports Pro Presentation, Pan Atlantic University, Lagos, Nigeria
29 September 2015
2. Introduction
• Myself
Ø Nearly 20 years in African sports media - working and living in South Africa, Nigeria and Kenya.
Ø As an independent producer, created and produced the first pan African football show – African SoccerTV.
Ø Working with CAF and creating and managing the CAF African Player of theYear Awards for 5 years.
Ø Head of Africa for Supersport, Head of Sports for Zuku (East Africa) , Director of Sports for StarTimes and
Senior Consultant on Sport in Africa for the Discovery Channel.
Ø Founder of Sports News Africa.
• My Presentation
Ø Looking at how stakeholders in sports in Africa –and here in Nigeria – can raise the profile of the sports they
represent through the media.
Ø How to take advantage of the changing media landscape and the new opportunities this offers.
• MyVision
Ø To drive the development of sport in Africa and make it as successful as European sport has become globally
and here on our own continent.
Ø To achieve that by pushing sport as a major opportunity for African business.
Ø To raise the profile of African sport amongst sports fans here in Africa.
Copyright Gary Rathbone 2015
3. The Big Question:
•Do you want to make money form sport – or do
you want to make LOTS of money from sport?
Copyright Gary Rathbone 2015
4. What IsThe Sports Media Environment?
• Event/Tournament Rights
Ø The buying and selling of Media and Sponsorship opportunities to events and tournaments that
stakeholders own.
• Event/Tournament Production
Ø The audio-visual coverage of these events and tournaments – live production, highlights, radio
coverage etc.
• PR & Press Coverage/Engagement
Ø Marketing of these events and tournaments through the print media, radio andTV etc. and
engagement with reporters to raise the profile of an event or sport.
• Digital/Mobile Media
Ø Utilizing the fastest growing media sector to increase the profile of a sport or event and create
significant new revenue streams
• Sports Betting
Ø A massive new opportunity create new revenue streams.
Copyright Gary Rathbone 2015
6. Sports Betting – Where Everyone Can Be A Player!
• The Sports Gaming industry around the world consists of betting, online
casinos, bingo and lotteries.
•
• Estimated gross win – revenue after pay-out for the industry around the
world:
Eu 32.5 billion per year.
•
• Betting alone makes up just half of this total.
•
• Of the overall total, Africa accounts for just Eu 215 million of that amount.
Copyright Gary Rathbone 2015
7. Global Sports in Africa
• Barclays Premier League
Ø Approximately US$ 200 million per season paid between Supersport and Canal +
• Champions League/Europa League
Ø Approximately $140 million per season paid between Supersport and Canal +
• La Liga (Spain)
Ø Approximately Eu 50 million per season paid between Supersport, Canal+, Azam and Zap
• Bundesliga
Ø Approximately $9 million per season paid by StarTimes plus FTA rights sold byTV Media Sport
• Serie A
Ø Approximately $6 million per season paid by StarTimes plus FTA rights sold byTV Media Sport
• Ligue 1
Ø Approximately Eu 12 million per season across Canal Plus and Fox Sports Africa.
Copyright Gary Rathbone 2015
Total Spend on
International
football in
Africa:
=/- $423 million
per year
8. African Sports Media Market
●COUNTRY ●ANNUAL SPORTS SPONSORSHIP EXPENDITURE ●SHARE OF AFRICAN SPORTS
MARKET
South Africa ●US $137,646,873 64.67%
Egypt ●US $23,304,166 10.95%
Ghana ●US $17,068,334 8.02%
Nigeria ●US $13,417,500 6.30%
Kenya ●US $5,551,831 2.61%
Algeria ●US $4,955,000 2.33%
Uganda ●US $2,035,100 0.96%
Zimbabwe ●US $1,375,250 0.65%
Tunisia ●US $1,217,500 0.57%
Botswana ●US $1,092,034 0.51%
Cameroon ●US $833,333 0.39%
Tanzania ●US $640,000 0.30%
Zambia ●US $275,667 0.13%
Source: AfricaInvestor, June 2102 Copyright Gary Rathbone 2015
9. African Local Sports MediaValue
Source: Balancing Act, 2014 Copyright Gary Rathbone 2015
10. Nigerian Sports Media Environment: Opportunities
• More people with a greater level of disposable income to spend on
entertainment.
•
• Nigerians remain excited about sport at all levels – local and international.
•
• Rapidly expanding internet, mobile and digital environment creating more
opportunities for raising the profile of an event and providing new
revenue streams.
•
• Better infrastructure and modern technology makes events/tournaments
more attractive to the consumer and a lower cost.
Copyright Gary Rathbone 2015
11. Nigerian Sports Media Environment
2011 Renaissance Capital Survey of the Nigerian Middle Class found:
• 64% of respondents watch live sports or sports programmes onTV
• 17% of these do so nearly every day.
• 33% do so at least once a week.
•
• Only 6 % never watch any sport onTV at all.
•
•
Copyright Gary Rathbone 2015
14. Nigerian MediaValue
Internet access market in Nigeria (US dollar millions)
2010 2011 2012 2013 2014p 2015 2016 2017 2018 2019
Mobile Internet 396 517 709 1,053 1,349 1,743 2,139 2,623 3,153 3,777
Broadband 147 237 366 532 749 990 1,217 1,415 1,576 1,704
Total 543 755 1,075 1,585 2,097 2,732 3,356 4,038 4,730 5,481
Internet advertising market in Nigeria (US dollar millions)
2010 2011 2012 2013 2014p 2015 2016 2017 2018 2019
Mobile Internet 4 7 ‡ 4 10 18 29 46 70 90
Broadband 8 11 15 20 26 30 34 39 44 50
Total 12 19 16 24 36 48 63 85 114 140
‡less than $500,000
Note: Numbers shown are rounded.Totals may not equal the sum of their parts due to rounding.
Source: PWC, 2015 Copyright Gary Rathbone 2015
15. Nigerian Sports Media Environment
Key Areas to consider for Media Opportunities:
• Production and broadcast of live tournaments/events forTV and Digital.
• Sponsorship – of the event, at the venue.
• Digital subscriptions and advertising for online streaming and websites.
•
• Sports betting.
Copyright Gary Rathbone 2015
16. Nigerian Sports Media Environment: Challenges
• Very fractured and lacking a coherent policy.
• No coherent sales or marketing approach.
• Under-resourced and lacking decent, modern and cost-efficient production
facilities to create event/tournament content.
• Bad organisation and poor infrastructure means tournaments/events are
not fully supported by advertisers and sponsors.
•
• Stakeholders are not working together.
•
• Stakeholders are not grasping the massive business opportunity that sport
offers.
Copyright Gary Rathbone 2015
17. INCREASING NEED FOR MEDIA TO HAVE MORE SPORTS CONTENT
MORE MONEY
AVAILABLE FOR MEDIA
SPONSORSHIP OF LOCAL
SPORT
MORE RESOURCES
AVAILABLE TO DEVELOP
COVERAGE OF LOCAL
SPORT
MORE COVERAGE OF
LOCAL SPORT MEANS A
RISE IN LOCAL CONSUMER
AWARENESS
INCREASE IN FANS,
VIEWERS AMONG LOCAL
CONSUMERS.
INCREASING NEED FOR BUSINESS TO REACH GROWING CONSUMER MARKET
Making Sport, Media & Business WorkTogether
Copyright Gary Rathbone 2015
18. Nigeria, Sport & Media:The Way Forward
1. Cost of local sport is consider ‘cheap’ or ‘fair’ by 85% of African broadcasters.
2.
3. Media spend in Nigeria will rise to around $394 million by 2017
4.
5. Media spend in digital platforms (online and mobile) will rise to $85 million by 2017.
6.
7. There will be over 35 millionTV households in Nigeria by 2017 and nearly 60 million
internet users.
8.
9. The Sports Betting industry in Africa is already worth Eu 215 million a year.
10.
11.Connect the dots – there is an appreciation of local sports, a growing media spend
and a rapidly growingTV and digital consumer market waiting for your sport.
Copyright Gary Rathbone 2015
19. Nigeria, Sport & Media:The Way Forward
1. The changing media landscape and the emergence of the digital world
offers us a great opportunity for new audiences and revenue streams
2. Stakeholders need to re-align their sports as businesses.
3. Sport is great business opportunity – media is the key that will open that
door and we need to use it more effectively.
4. It is time for all stakeholders to start working together to make sport more
attractive to business.
5.
6. Government needs to support sport not just on the pitch – but in the
boardroom as well. Because sport is about a lot more than just the
people who play the game.
Copyright Gary Rathbone 2015
