SBD/Issue 166/Sports Media

NASCAR.COM COMES TO LIFE, BUT DOES IT HAVE A WAYS TO GO?

          AOL/Turner Sports acquired NASCAR's Internet rights for
     a reported $100M over six years at the end of '00, and the
     new NASCAR.com was launched under the corporate giant in
     February with a mission to serve as the unfiltered source
     for NASCAR, mixing hard news and rumor reports in an effort
     to become the definitive site for NASCAR fans.  To maintain
     the editorial integrity of the site, Turner Sports secured
     editorial control of NASCAR.com at the time of the launch in
     February.  Four months into directing the new site,
     NASCAR.com Exec VP Drew Reifenberger told THE DAILY he feels
     NASCAR.com has been a success "by all traditional, and
     perhaps non-traditional, metrics."  Reifenberger: "There was
     some skepticism that we would be able to turn NASCAR.com
     from a PR tool to an independent site, but I think we've
     done that."  Reifenberger said the site has "covered some
     really tough issues and we think we've done it in a very
     balanced sort of way.  We've been completely unfiltered." 
     Reifenberger: "We don't try to oversensationalize news and
     we don't try to create news. ... We're applying the same
     standards that you would see at CNN or Sports Illustrated." 
     Despite dealing with such sensitive issues as the death of
     Dale Earnhardt and the ongoing safety debate, Reifenberger
     said, "We've had absolutely zero interference from NASCAR. 
     Both parties knew what they were getting into."  NASCAR
     Managing Dir of New Media Jeffrey Pollack said NASCAR "is
     very pleased to be in partnership" with AOL/Time Warner. 
     Pollack: "We're in the very beginning of a long-term
     relationship and a long-term plan to build a strong, vibrant
     business on the Internet."  Pollack said giving Turner
     editorial control was "about doing what is best for our fan
     base and providing the richest experience we can for users." 
          AND HOW TO MAKE MONEY? While Internet sites are
     struggling for ad revenue, Reifenberger said, "The market
     hasn't affected us anymore than it's affected anyone else.
     ... The challenge we had was we just came really late into
     the market."  NASCAR.com did not have a concerted sales
     effort going until the middle of January.  But because
     Turner has exclusive rights to NASCAR.com, Reifenberger
     feels "a slowdown can work in your favor when you've got the
     right product, as media buyers still spend money, however
     they're just more discerning."  Since NASCAR.com "is a
     premium product, you really have a unique proposition." 
     Pollack: "We recognize the state of the Internet economy and
     the state of the advertising economy, generally.  But I
     would be very surprised that over the life span of this
     relationship (with Turner) that you'll see a model dependent
     only upon advertising.  The model that develops will be
     dependent upon advertising, sponsorship, subscriptions, e-
     commerce and one-for-one marketing."  While Pollack said
     "we're going to be looking at products that are appropriate
     for a subscription model," he would not identify what types
     of products they might be.  The Industry Standard Marketing
     Editor Terry Lefton said NASCAR "cashed out" in selling its
     Web rights, so "while everyone else is under pressure to
     make a profit, they've already got their money.  They can
     sit back and try and do some interesting things on the
     Internet, and they're not under the financial pressure." 
          WHAT'S NEXT? Discussing site enhancements, Reifenberger
     said, "I think you'll see one to two franchise-type features
     in the second-half of the season ... and hopefully a few
     more going into the first part of next season."  
          AND THE JURY? S.F. Chronicle New Media writer Tommy
     Cummings called NASCAR.com "progressive" and said with
     Turner, "it's with a company that cares and understands the
     audience.   That might make a difference in development of
     the site."  But Lefton finds the site "very slack, very
     boring, very five years ago.  Regardless of what the stories
     are, the packaging just doesn't do anything for me." 

This story appeared in The Sports Business Daily's Special Motorsports Marketing issue published on May 25, 2001.

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