BY : Salvatore CarusoTUTOR: Prof. Denis Musso

XII

Feasibility of a CONI Tv Channel

Presentation of the problem• Tv and Sport a successful joint: the vital link between

Sport and Television is now a well established fact, essential for both system.

• If is true that what is not seen, to the more eyes it doesn't exist, the most urgent matter is to confer the greatest possible visibility to these sport or event that actually are reserved to a “niche” public only.

MAXIMUM VISIBILITY• The “generalist” media are concentrate on the

sport of mass diffusion and they reserve just little space to the smaller sport or sport events.

SPORT SPORT ON TV

% hours

FOOTBALL 7665 34,5

BASKET MEN 1904 8,6

VOLLEY MEN 1126 5,1

FORMULA 1 803 3,6

RUGBY 441 2,0

CYCLING 440 2,0

MOTOCYCLING 355 1,6

SAILING 341 1,5

ATHLETICS 339 1,5

VOLLEY WOMEN 330 1,5

NORTH SKY 223 1,0

BASKET WOMEN 165 0,7

SKATING 156 0,7

SWIMMING 136 0,6

EQUESTR. SPORT 118 0,5

TENNIS 115 0,5

WATERPOLO 108 0,5

BOXING 102 0,5

ALPINE SKY 90 0,4

FENCING 62 0,3

OTHER ITALIANS 1931 8,7

OTHER INTERNAT . 5243 23,6

TOT 22193 100,0 100,0

Why a CONI Channel in the jungle market of sport channels ?

Federations benefits:

• Attract the attention of the great public and sponsorship firms

• Create an important link with the public with the public of fans and athletes

CONI benefits:

• Brand exploitation • Marketing development policy (CONI services)• Promotion of sport culture (fairplay, antidoping, sport values)

Methodology Five phases:

1 - Report on sport and media: statistic survey

2 – Questionnaire to Federations

3 – Benchmarking

4 – S.W.O.T. Analysis

5 – Interviews with expert professionals

Analysis

Research activity on all information about the business:

• Base of distribution• Supply• Demand• Legal and economic context

Base of distribution: from tv to multitv

MULTITV

DTTInteroperative and open level of base

FTA+PAYNational/local 50/80 channel

Interactivity: medium lowPrice for user: low

Assembling complexity: low

DTHVertical integrate base

PAY+FTANational

More than 500 channelInteractivity: medium-low

Price for user: medium - low Assembling complexity: medium

IPTVVertical integrate base

PAYNational/local

No limits channelInteractivity: high

Price for userAssembling complexity: high

MobiletvVertical integrate base

Unicast (UMTS, HSDPA), BroadcastPAY

National10/20 channel broadcast

Interactivity: highUser price: medium-high

Assembling complexity: low

WEB TV

Millions of family

Growth trend of multitv base in Italy

0

5

10

15

20

25

30

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

tv analogica

DTT

Banda Larga

IPTV

Satellte Pay

Sky sport:

• Satellite distribution• Totally pay• Great sport and great sport events (particularly football)• High budget

EuroSport: same features of Sky sport but totally free (satellite distribution)

Rai sport

• Digital cable or satellite• Totally free• Minor Sports and events• Low budget

Sportitalia: same features of Raisport with a better concept design and goodexclusive rights on same competitions

Supply: analysis of the main sport channels on the market

The convergence process among informatics, telecommunication and television raise two consequences:

• the televiewers change in producer of his project of fruition: from the couch potato to the juggler. The interactive

televiewers

• Fragmentation of the demand as consequence of supply fragmentation (making up of niches of audience)

Demand: the new audience from tv to multitv

Legal Context

Tv rights system

• Law 29 March 1999 nr.78 : direct selling to the teams• Law 19 July 2007 nr.106: corporate selling to the teams

League, new criteria of distribution of tv righs incoming among teams (mutuality):

1. Equality2. Sporting worth3. Users

The transaction toward the digital one (switch off)

• Law 3 May 2004 n.112 (l. Gasparri)

Economic profile

The two form of financing: self-financing and financing of thirds

Self-financing (layout of CONI budget)

Resource by the government

EURO/MIL 450

Brand development Euro/mil 5.236Territorial structures Euro 10.238.686Justice Organs Euro 215.521Residual proceeds Euro 13.752Tot. production value Euro 466.229.636Increase in comparison 2007

Euro 4.070.936

Financing of thirds: hypothesis of targeting.

S.W.O.TInternal and external diagnosis

STRENGTH• Strong brand

•Autofinancing opportunity •High offer in terms

of differentiation

WEAKNESS•Low perception in minor

sport image•No tv suitable for some sport

•High competitor number

OPPORTUNITIES•Digital terrestrial huge space

•Net tv (new frontiers)•Brand loyalty

•User awareness .

THREATS•Low interesting from

sponsor firm•Niche public (low demand)

•Estreme fragmentation of tv users