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SBD Global/October 16, 2013/Media
Sportel: Perform Exec Says Company Is Evolving Along With Trends In Market
Published October 16, 2013
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IT’S GOOD TO KNOW: In an era when sports media rights spending seems to know no bounds, it may be surprising that a rather young company like Perform, which was founded in ’07, has the capabilities of acquiring key rights. Asked how Perform is able get key rights like the NBA in Germany, Rice said, “I think it’s relationships, and we’ve got some great relationships with all the major agencies and with all the major rights owners. We often are there to create additional value, and I think we have proved our case over the last seven years as a business that’s been out to provide that additional space. I think the rights landscape will continue to change, and I think we have to change with it, wherever we are.”
ALL ABOUT AFRICA: Perform has offices on four continents, but despite operating one of the most utilized football websites in Africa, Goal.com, the dark continent remains highly elusive in terms of revenue. Rice: “I think our biggest challenge is Africa, where we have a huge amount of users for our properties. But how to create revenue from this service is challenging. It’s a challenge to sell ads in that market. It’s a very different market to approach in terms of both subscription bases and ad-sale bases because the end users tend to be on mobiles.” He said that the fact that many of Perform’s African users use mobile devices makes it a challenge to brand the content or put sponsorships around it.
THE REVENUE RIDDLE: The obstacles of generating revenue in the digital sphere are also impacting Perform. Like most companies operating online, Perform uses both subscription-based and ad-sales-based models. While still working on the right mixture of both, Perform seems to have already set course for one of the concepts. Rice: “We believe that there is a growing subscription audience for sports as there has been across the entertainment sector as well, where people buy a season pass for a major network series. We also start to see it year-on-year with our subscription products that are growing."