Tuesday, June 18, 2013

Understanding Ones Assets

Fox Sports 1 may be launching on August 17th, but its most important day might not come until February 2014.

Fox executives are smartly utilizing Super Bowl XLVIII as a carrot in enticing brands to advertise with the new sports cable network. According to several reports, the network is promising Fox Sports 1 advertisers the most valuable ad sports within the big game.  By doing so, they are instantly sweetening the new channel’s sales packages.
Though Fox Sports 1 will broadcast several of the country’s most rapidly growing sports, including soccer and UFC, it will not host an event near the magnitude of the Super Bowl. While many brands may have little interest in the network’s broadcasts of collegiate basketball and football, they may forfeit the extra cash in order to maximize exposure on February 2nd, 2014. Making these packages even more appealing is the location of the game; sources report that the asking price for ad space during Super Bowl XLVIII may exceed last year’s estimated $3.75 million due to the game being played in the New York metro area, which represents the world’s largest media market.

To be clear, this strategy is not a new one by any means. It has been used over the past couple years by both NBC and CBS, each of which recently launched their own sports cable networks.
By including Fox Sports 1 in many of their Super Bowl XLVIII sales packages, the network is definitely confirming that its launch is a priority. However, in doing so, they are absolutely taking a risk. The move will undoubtedly generate a bit of hesitation amongst traditional ad buyers. Whether this drives down the price or significantly delays the sales process, it will likely cause a bit of angst among Fox execs.

Another interesting point to watch will be how Fox integrates their new channel into coverage of the event. CBS Sports Network and NBC Sports Network provided relatively little analysis of the games. With their deep roster of analysts, one would expect Fox Sports 1 to be integrated more seamlessly into the pre-game coverage than viewers have previously seen.

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