Sport and The Media - UK - February 2009

ISSUES IN THE MARKET
Main issues
Definition
Abbreviations
FUTURE OPPORTUNITIES
Read all about it…online
Mintel Inspire
Opportunity
Never red
Mintel Inspire
Opportunity
MARKET IN BRIEF
Stalling attendance growth boosts media status
Pulling power of sport retains top rights values
Sports media audiences migrating online
A pressing need to clear up clutter
Market flat during recession
Sport spotted as a driver of technological trading up
Broadband opportunities are here – but a truly mobile market must wait
Convergence the long-term goal
Readers deserting newspapers – but not newspaper brands
Setanta extends sports TV’s reach
Online migration to spark new wave of radio?
More and more playing the numbers game
INTERNAL MARKET ENVIRONMENT
Key points
Interest in sport: Losing its appeal?
Figure 1: Any interest in named sports/pastimes, 2004-08
Recession: No time to be playing games
Sports media consumers searching for stars
Spectator sports: Hard core fans v day-trippers
Figure 2: Sports/pastimes paid to watch at venue in the past 12 months, 2004-08
Attendance levels: Peak or plateau?
Sports participation: Inspiration 1 Recession 1
Figure 3: Sports/pastimes played or taken part in regularly, 2004-08
Access to media: More platforms or fewer?
Sport can stay with satellite minority or court Freeview majority
Figure 4: UK multichannel TV penetration, by platform, 2005-09*
High hopes for high-definition
No cable or satellite, little access to sport
Figure 5: Sports coverage on television, by platform, 2005 and 2007
Newspaper circulations: Sport drives volumes, not advertising
Figure 6: UK newspapers* volume forecast, 2003-12
It’s the message, not the medium
Internet access: Fewer divisions in connectivity league
Figure 7: British internet penetration at home/work/place of study or elsewhere, by gender and age, 2003-08
Broadband penetration the bigger issue for sport
Figure 8: Average broadband speeds over time, 2006-08
Mobile internet closes in on convergence
Figure 9: Growth of PC-based and mobile internet active audiences, Q2 and Q3 2008
Mobile web use led by young
Figure 10: Demographic profile of PC-based and mobile internet active audiences, by age, Q3, 2008
Positive outlook for mobile sports sites
Figure 11: Most popular mobile web sites, Q3, 2008
Cost of access: Risks of churn as yet uncertain
Newspaper readers loyal to brands, not platforms
Recession to spark radio renaissance?
Listed events
Figure 12: ‘Listed’ sporting events, 2009
Sports media teamed up with bookmakers
Prices still right(s)
BROADER MARKET ENVIRONMENT
Key points
Sports fans still spending on media
Figure 13: Areas where consumers would cut back spending, July 2008
Population trends: How to get pensioners into the game?
Figure 14: Trends in the age structure of the UK population, by gender, 2003-13
Able to spend – but willing to do so?
Access to technology: Mobile makes first move
Figure 15: Trends in digital device usage, 2007-08
COMPETITIVE CONTEXT
Key points
Sport prominent in the mainstream
Figure 16: Interest in leisure activities and hobbies, 2004-08
Television: Major events still winning ratings gold
Figure 17: Most popular television programmes, by channel, w/e 18 January 2009
Figure 18: Most-viewed televised sports events, 2008
Individual sports: A hierarchy of popularity
Figure 19: Live sports event television audiences, by sport, November 2008
Channel competition: Setanta passes Eurosport
Figure 20: Sports channel shares of viewing, October-December 2008
Newspaper: Tabloid width, broadsheet depth
Figure 21: UK newspapers market shares, 2007
Magazines: Setting the sports market free
Figure 22: Leading non-women’s interest magazine sectors*, by average net circulation per issue, June 2008
The internet: Is sport an unwelcome distraction?
Figure 23: Trends in websites browsed for information purposes in the last three months, 2005-08
STRENGTHS AND WEAKNESSES IN THE MARKET
Strengths
Cost
Potential for convergence
Access
Interest
Strong brands
Weaknesses
Clutter
Balance of coverage
Multi-platform requirements
Cost of rights
Population structure
WHO'S INNOVATING?
Key points
3D TV comes into focus
A game of tag(s)
Convergence now about more than technology
Chalk and talk
Media enters the arena
Rights holders doin’ it for themselves
SPORT ON TELEVISION
Key points
Countering the growing threat of the web
Figure 24: Sports/pastimes watched on TV, 2004-08
Satellite sport now routine, terrestrial turns event-driven
Figure 25: UK sports television output, 2003-07
HD an opportunity for sport; sport an opportunity for HD
Athletics: Coverage bounces back
Figure 26: Television coverage of athletics, by channel, 2005 and 2007
Cricket: At the centre of the listing debate
Figure 27: Television coverage of cricket, by channel, 2005 and 2007
Football: Setanta impact beginning to be felt
Figure 28: Television coverage of football, by channel, 2005 and 2007
Golf: Setanta makes gains, but BSkyB secures key assets
Figure 29: Television coverage of golf, by channel, 2005 and 2007
Horse racing: Current coverage under sustained threat
Figure 30: Television coverage of horse racing, by channel, 2005 and 2007
Rugby league: New-style Super League to provide a needed boost
Figure 31: Television coverage of rugby league, by channel, 2005 and 2007
Rugby union: World Cup rights up for grabs
Figure 32: Television coverage of rugby union, by channel, 2005 and 2007
Tennis: More Sky coverage – Murray the carrot, Setanta the stick?
Figure 33: Television coverage of tennis, by channel, 2005 and 2007
SPORT IN PRINT
Key points
Newspapers: A decline in readership – or just a switch?
Figure 34: Sports/pastimes read about in the papers, 2004-08
Papers stick with core sports
Figure 35: Most popular newspaper websites, by UK unique audience, 2007-08
Expansion of internet access heightens threat to print
Giveaways boosting circulation and adsales
Magazines: Free titles hit the front
Figure 36: Leading sports magazines, by average net circulation per issue, June 2008
SPORT ON THE RADIO
Key points
Live commentary drives radio appeal
Figure 37: Listening figures, national sports-led radio stations*, July-September 2008
Digital listening sees multi-platform growth
SPORT ON THE INTERNET AND MOBILE INTERNET
Key points
Internet the growth medium
Figure 38: Sports/pastimes looked up on the internet, 2007-08
Rights holders eye up online distribution channels
Old-fashioned syndication becomes modern-day collaboration
PROFILES OF LEADING SPORTS MEDIA
Key points
Television: Setanta Sports
Radio: BBC Radio 5 Live
Newspaper: The Sunday Times
Magazine: Sport
Website: Sport365.com
Mobile: Sky Sports Mobile
HOW DO WE FOLLOW SPORT IN THE MEDIA?
Key points
Key sports close TV door to newcomers
Figure 39: Media used to follow sport, November 2008
Rights activations require multi-platform strategies
Individual media know their strengths – and so do consumers
Fans want to see the action, and on a big screen
Figure 40: Sports media paid for or subscribed to, November 2008
Sky and Setanta: Competing rights bids, contrasting audiences
Properties not yet playing in the broadcasters’ league
ATTITUDES TOWARDS SPORT AND THE MEDIA
Key points
Numbers add up
Figure 41: Attitudes towards sport and the media, November 2008
Advertisers: Don’t interrupt us
Is football still the driver of pay-TV subs?
Personalities sell papers – and websites, and TV…
…but less so in football than in other sports
Pubs serve sport to the dish-less
Figure 42: Sports media habits and preferences, November 2008
Focus on text, not print
A need to cut through the online clutter
CHANGING SPORT CONSUMPTION HABITS?
Key points
Subscription sports channels expected to tread water
Figure 43: Changes/planned changes in sports media consumption habits, November 2008
More viewers now HD-ready…
…but ‘red button’ proves a turn-off
Sports media still a shop window for events
SPORTS MEDIA TARGETING OPPORTUNITIES
Key points
 IDENTIFYING TARGETS
Figure 44: Sport and the media target groups, November 2008
Interactors
Sky Vulnerables
Pay For Sports
Anti-commercialisation
Uninterested
PC functionality could improve pay-TV’s reception
Figure 45: How attitudinal groups differentiate on key attitudes, November 2008
Sporting preferences reflect media choices
Figure 46: Sports followed in any media, by sport and the media target groups, November 2008
The mainstream sticks to the familiar
Figure 47: Media used to follow any sports, by sport and the media target groups, November 2008
Sky Vulnerables take flight online
Figure 48: Sports media paid for or subscribed to, by sport and the media target groups, November 2008
Commercialisation issues need to be addressed
Vulnerable to sporting tradition
Figure 49: Sports media habits and preferences, by sport and the media target groups, November 2008
APPENDIX – BROADER MARKET ENVIRONMENT
Figure 50: Adult population trends, by lifestage, 2003-13
Figure 51: Adult population trends, by socio-economic group, 2003-13
APPENDIX – HOW DO WE FOLLOW SPORT IN THE MEDIA?
Sports followed in any media – detailed demographics
Figure 52: Most popular sports followed in any media, by demographic sub-group, November 2008
Figure 53: Next most popular sports followed in any media, by demographic sub-group, November 2008
Media used to follow any sports – detailed demographics
Figure 54: Media used to follow any sports, by demographic sub-group, November 2008
Paid/subscription sports media – detailed demographics
Figure 55: Sports media paid for or subscribed to, by demographic sub-group, November 2008
Paid/subscription sports media, by sports followed
Figure 56: Sports media paid for or subscribed to, by most popular sports followed in any media, November 2008
Figure 57: Sports media paid for or subscribed to, by next most popular sports followed in any media, November 2008
Paid/subscription sports media, by media used
Figure 58: Sports media paid for or subscribed to, by media used to follow any sports, November 2008
Combinations of paid/subscription sports media
Figure 59: Sports media paid for or subscribed to, by other sports media paid for or subscribed to, November 2008
APPENDIX – ATTITUDES TOWARDS SPORT AND THE MEDIA
Attitudes towards sport and the media – detailed demographics
Figure 60: Most popular attitudes towards sport and the media, by demographic sub-group, November 2008
Figure 61: Next most popular attitudes towards sport and the media, by demographic sub-group, November 2008
Attitudes, by sports followed
Figure 62: Attitudes towards sport and the media, by most popular sports followed in any media, November 2008
Figure 63: Attitudes towards sport and the media, by next most popular sports followed in any media, November 2008
Attitudes, by media used
Figure 64: Attitudes towards sport and the media, by media used to follow any sports, November 2008
Attitudes, by paid/subscription sports media
Figure 65: Attitudes towards sport and the media, by sports media paid for or subscribed to, November 2008
Combinations of attitudes
Figure 66: Attitudes towards sport and the media, by most popular other attitudes towards sport and the media, November 2008
Figure 67: Attitudes towards sport and the media, by next most popular other attitudes towards sport and the media, November 2008
Habits and preferences – detailed demographics
Figure 68: Sports media habits and preferences, by demographic sub-group, November 2008
Habits and preferences, by sports followed
Figure 69: Sports media habits and preferences, by most popular sports followed in any media, November 2008
Figure 70: Sports media habits and preferences, by next most popular sports followed in any media, November 2008
Habits and preferences, by media used
Figure 70: Sports media habits and preferences, by media used to follow and sports, November 2008
Habits and preferences, by paid/subscription sports media
Figure 71: Sports media habits and preferences, by sports paid for or subscribed to, November 2008
Habits and preferences, by attitudes
Figure 72: Sports media habits and preferences, by most popular attitudes towards sport and the media, November 2008
Figure 73: Sports media habits and preferences, by next most popular attitudes towards sport and the media, November 2008
Combinations of habits and preferences
Figure 74: Sports media habits and preferences, by other sports media habits and preferences, November 2008
APPENDIX – CHANGING SPORTS CONSUMPTION HABITS?
Changes made – detailed demographics
Figure 75: Most popular changes in sports media consumption habits over the last 12 months, by demographic sub-group, November 2008
Figure 76: Next most popular changes in sports media consumption habits over the last 12 months, by demographic sub-group, November 2008
Changes planned – detailed demographics
Figure 77: Most popular planned changes in sports media consumption habits over the next 12 months, by demographic sub-group, November 2008
Figure 78: Next most popular planned changes in sports media consumption habits over the next 12 months, by demographic sub-group, November 2008
Changes/planned changes, by sports followed
Figure 79: Changes/planned changes in sports media consumption habits, by most popular sports followed in any media, November 2008
Figure 80: Changes/planned changes in sports media consumption habits, by next most popular sports followed in any media, November 2008
Changes/planned changes, by media used
Figure 81: Changes/planned changes in sports media consumption habits, by media used to follow any sports, November 2008
Changes/planned changes, by paid/subscription sports media
Figure 82: Changes/planned changes in sports media consumption habits, by sports media paid for or subscribed to, November 2008
Changes/planned changes, by attitudes
Figure 83: Changes/planned changes in sports media consumption habits, by most popular attitudes to sport and the media, November 2008
Figure 84: Changes/planned changes in sports media consumption habits, by next most popular attitudes to sport and the media, November 2008
Changes/planned changes, by habits and preferences
Figure 85: Changes/planned changes in sports media consumption habits, by sports media habits and preferences, November 2008
Changes/planned changes, by changes already done
Figure 86: Changes/planned changes in sports media consumption habits, by most popular changes in sports media consumption habits over the last 12 months, November 2008
Figure 87: Changes/planned changes in sports media consumption habits, by next most popular changes in sports media consumption habits over the last 12 months, November 2008
Changes/planned changes, by changes planned to do in future
Figure 88: Changes/planned changes in sports media consumption habits, by most popular planned changes in sports media consumption habits over the next 12 months, November 2008
Figure 89: Changes/planned changes in sports media consumption habits, by next most popular planned changes in sports media consumption habits over the next 12 months, November 2008
APPENDIX – SPORTS MEDIA TARGETING OPPORTUNITIES
Figure 90: Attitudes towards sport and the media, by sport and the media target groups, November 2008
Figure 91: Sport and the media target groups, by demographic sub-group, November 2008
Figure 92: Changes/planned changes in sports media consumption habits, by sport and the media target groups, November 2008