Brazil, China on list of most promising countries for sports media

Four top industry execs took a look at which countries have the biggest potential for growth in sports rights and broadcasting. Oliver Slipper: “We are seeing big growth in South America, especially Brazil. But it’s from a small base. Rights inflation is obviously driven by competition, and now there are four or five players out there buying content in that market.” Michael Payne said that media rights from South America are increasing, but are still a small percentage of overall deals. Payne: “It’s only about 1% of the IOC’s total rights package, but it’s serious money. I think Brazil is probably reaching it’s full level. Of the BRIC markets, the one with the biggest growth potential is China, and that is dependent on the day we have competition. Right now, it’s controlled by the CCTV. But the moment the government opens the door, you will see big increases in China.” Mike Dolan: “Brazil is red hot. With the World Cup and the Olympics and the explosion of disposable income that is hitting the country and will hit it for the next ten years.”

REVENUE VS. DISTRIBUTION: The balancing of global properties going for revenue in new deals or distribution was also discussed, with Payne warning properties, “You are at your peril if you stretch your revenue an extra 10 percent and you compromise distribution. If you push your revenue and compromise your distribution, it will come back to hurt you.” Slipper said most leagues will go for revenue over distribution: “There aren’t many sports that take a socially responsible view when it comes to distribution over revenue.” But Payne countered, “It’s not socially responsible, it’s a matter of doing good business.”