Have you ever watched the Premier League on TV? Or how about Formula 1? Or the French Open? Thought so. Then you’ve been watching sports whose rights are managed by MP & Silva. The company looks after more than 10,000 hours of sports coverage each year, across more than 200 TV channels worldwide. We caught up with the company’s CEO, Marco Auletta, to find out more about the world of sport, technology and how the two combine for our viewing pleasure.
How does the TV licensing of sport work?
The sale of broadcasting and media rights is the biggest source of revenue for most sports organisations, generating the funds needed to finance major sporting events, build sports stadia, and contribute to the development of sport at grassroots level. At MP & Silva we own, manage and distribute TV media rights globally. The acquisition process for sports media rights depends on each specific deal and they go through a robust process, sometimes public bids and, on other occasions, private negotiations. We always have as a goal to extend the reach of our partners and to design strategies to penetrate new markets; our aim is to create long-lasting partnerships.
What do you think the next game-changing innovation in sports broadcasting could be?
We are already seeing that sports and entertainment are very much content driven and the change is already happening: when the NFL announced it was going to set up its now well-known competitive game in the UK, its website received more than one million applications for tickets. The internationalisation to potential new markets will drive the revolution of connectivity of fans.
The sale of media rights is the biggest source of revenue for most sports organisations
Do you feel there’s still a future in 3D broadcasting of sports?
Entertainment has become a journey and an experience for brands, viewers and all stakeholders involved – there are many technological innovations in place. But viewer adoption of 3D services in the home has been limited, and many broadcasters have now killed their 3D channels.
The NFL has plans for an online-only broadcast this year. Do you think this could be a model to pursue?
With viewers’ new expectations, there will be fast-speed changes in the way we consume media. We are the NFL’s agent to distribute television and digital rights until 2019 in 42 European territories and we consider these are great initiatives to keep increasing viewership.
Do you think football coverage could ever move from TV to online broadcasts?
We are seeing fluctuations in consumption in several markets and online is penetrating strongly in some countries. The distinction between TV and online companies is already blurring. Most broadcasters already supplement their coverage with live streaming on their websites and online broadcasters have developed apps for use via connected TVs. It is not so much a battle between platforms, as a battle between established operators who have traditionally delivered via cable and satellite and new entrants who deliver primarily via the internet. Most broadcasters are now developing OTT products and solutions [content delivered directly from service provider to viewer], although TV will still have an influence in the next few years.
Where do you see sports broadcasting in a decade’s time?
We can imagine a big change not only in the way we experience sport but also how we consume it. More and more fans feel the need to be part of the game and many companies are experimenting in innovation, user experience and connectivity.
Over the next decade we can imagine a change in how we experience and consume sport
With all the money broadcasting brings into sport, is there a ceiling? At what point will it plateau or decrease?
Sports has become a medium for brands and companies to talk to their audience. It is forecasted that global revenues from media rights fees will rise at a 3.8% compound annual rate to $35.2bn this year.
Are there any sports you think will take off significantly in the coming years?
At MP & Silva we are aware of many sports that are really taking off, but football will continue to be the driving force in the industry. The one sport that is bringing and engaging millions of new fans is professional video gaming, which is now called eSports; the phenomenon is taking off and video games are now becoming a spectator sport.
For more info, see mpsilva.com