WA Today – It was the first big test for Network Ten’s new owners, CBS.

Summary

  • Its rivals in free-to-air television both locked down rights to broadcast premium summer sport for years ahead – Seven (together with pay TV giant Foxtel) last week emerged with cricket rights in a six-year, $1 billion deal; a few weeks earlier Nine snatched the rights to tennis  for $300 million over five years.
  • It’s important to note that despite all of the excitment about sports rights, networks often lose money on them.
  • This ‘Halo effect’, one of the hardest concepts among analysts to quantify, is the notion that the benefits of sport to a network go beyond the advertising booked against the coverage of it.
  • CBS’s strong position in the US is, at least in part, explained by its sports coverage, including the US Masters golf tournament, and some NFL and college football games.
  • The importance of sport to broadcasters in the US was explained in a note last week by Pivotal Research analyst Brian Wieser.


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