-
Doug Perlman explains why the NBC/Comcast merger will have the biggest impact on the future of the sports business.
It’s not an overstatement to say that the NBC/Comcast merger will have a profound impact on (1) the dollars flowing into the overall sports eco-system and (2) how and where US sports fans consume sports content. Precisely how this plays out will be fascinating to watch and will impact virtually everyone in the business.
Since the deal was completed, in January 2011, Versus (soon to be rebranded the NBC Sports Network) has emerged as an even more serious contender for any major rights package. This will give rise to numerous dynamics that will affect the entire sports ecosystem.
The most immediate impact is a rise in rights-fees as competitive bidding always drives up prices. We have already begun to see this happen. It will mean more dollars in the pockets of leagues, teams and tournaments which will likely lead to increases in player compensation and broader growth initiatives by the properties.For the sports fan, the merger will likely mean larger cable bills but increased competition should also lead to exciting innovation that will benefit the sports fan. Comcast/NBC, ESPN and others will be working harder than ever to create new multi-platform offerings to enhance the fan experience and drive revenues in order to help them recoup their rights-fees.
This is likely to include production enhancements, mobile offerings, second-screen experiences and the wider availability of TV Everywhere among others. These dynamics are also certain to impact other media companies, as they will need to revisit their business models. They’ll need to determine how to compete without a comparable national cable sports platform and how to offer new ways to engage with sports content.
Doug Perlman, founder and CEO of Sports Media Advisors (SMA), is a veteran sports media executive who has held senior leadership positions at the National Hockey League and IMG. His clients at SMA include the National Football League, NASCAR, the PGA Tour, National Basketball Association teams, the WTA (Women's Tennis Association), the USTA (United States Tennis Association) and IMG as well numerous emerging digital companies.


