Sports 2.

0
We’ve recognized for several years that sport is part of
entertainment. The market now is really sports, fashion and
music. We can’t expect to ignore reality and survive.
- Reebok president Robert Meers

SPORTS IS CHANGING
SPORTS AS ENTERTAINMENT
SPORT IS EXPERIENCE
SPORT IS A BRAND
SPORT IS YOUR OWN EXERCISE
SPORT IS RELAXING
SPORT IS SOCIAL COHESION
SPORT IS MOVING FORWARD
SPORT IS A WAY TO COMMUNICATE
SPORT IS VALUES & ENGAGEMENT
INDIAN CONSUMERS ARE CHANGING
THIS IS ONE FACE OF THE INDIAN YOUTH
 We are in young
india?

47% OF INDIAN POPULATION < 20 YRS, AND THIS WILL

GROW TO 55% BY 2015
 We are in vibrant
india?

76% OF POPULATION WILL BE < 44 YRS IN 2015

 We don’t have
baggage of savings
v/s consumption

NEARLY 6 OUT OF 10 INDIANS IN 2015 WOULD HAVE

BEEN BORN IN POST-REFORMS INDIA.
 Even China has an
aging population.

INDIAN MARKETS FOR ALMOST ALL CATEGORIES WILL

STAY VIBRANT FOR THE NEXT DECADE.
 We love Internet.

INCREASING DEPENDENCE ON NON-TRADITIONAL

MEDIA LIKE THE INTERNET
 We are in socially
integrated india?

STRONG NEED TO CREATE THEIR ‘OWN SPACE’

THROUGH INTERACTION & PERSONALIZATION
 Blogs and social
communities are
the strong
influencers

THE NEW MANTRA : ‘COMMUNICATE, SHARE AND

CONNECT
This is the other face of young India
SPORTS CONSUMPTION IS CHANGING
 Average % of universe watched full sport telecast

12
10.82
10.25
10

8
TRPs

6
4.75

4
2.60

2 1.10
0.32 0.15 0.05 0.04 0.03 0.01
0
T20 Cricket World Cup IPL 20-20 Test Cricket FIFA World Olympics Wimbledon Formula Premier EPL Winter
World Cup Cricket 07 Cup 06 2004 One Hockey Olympics
07 League 2006

Source: TAM, Universe: Urban India, 400 million individuals in cable and satellite homes

SPORTS PREFERENCES IN INDIA

 past future
Enhanced viewing experience
Consuming sports Multilingual commentary Consuming sports
Multiple camera angles
VOD (highlights) Highlights
Live Event Score updates Live Event
Radio
TV at home/ in office/home TV – home
TV – home
Sports Bar

Radio TV – Sports Bar

Internet Mobile on the move
in office/home
Print Score updates Theater
Live commentary
Live streaming
VOD highlights
Internet – Web .1 Highlights
Action clips Internet – Web .1
Score updates
Live match
Internet – Web .2

Print

Radio

NEW SPORTS CONSUMPTION ECO SYSTEM IN INDIA

 Past Trends Present Trends Future Trends
sports consumption sports consumption sports consumption

Live Event Live Event Live Event

TV – home TV – home TV – home

Radio TV – Sports Bar TV – Sports Bar

Print Theater Theater

Internet – Web .1 Internet – Web .1 Internet – Web .1

Print Internet – Web .2

Radio Print

Radio

NEW SPORTS CONSUMPTION ECO SYSTEM IN INDIA

 Disengagement
Engagement

Negativity Trustworthy

Hype Civic

Same program Positivity

Selective Surfer Makes me Smarter

Routine Relaxation

Hype

SPORTS ENGAGEMENT IS THE WAY FORWARD

 Promotion Distribution
Purchasers Adoption Product Pricing Facilities Competition Exchange Employees
& Media Channel

Individual
Owner buys Contractual
branding in
Customers Loyalty Owner pays Static Adapted Single price builds own
competitive
economic power favors
facilities owners
markets

Fans, Fan pays extra Government Contractual

Monopoly
Fans Identification Sponsors, & Mobile Global for right to buy (taxpayers) pay
power
social power favors
Media pay tickets for facilities players

THE FANS CONSUMPTION HABIT

YOUNG INDIA SPORT CONSUMPTION HABIT
SOCIAL MEDIA IS HAPPENING
 Is word-of-mouth
marketing a
winner?

78 PERCENT OF THE CUSTOMERS TRUST PEER

RECOMMENDATIONS …. ..ONLY 14 PERCENT TRUST
ADVERTISEMENT
 Am I part of the
opinion list?

34 PERCENT OF BLOGGERS POST OPINIONS ABOUT

PRODUCTS AND BRANDS
 Do you
understand my
value?

MOST TRUSTED SOURCE OF INFORMATION ABOUT A

COMPANY IS STILL PEOPLE LIKE ME. I CREATE
CONVERSATION ONLINE WITH A LIKE MINDED PEOPLE
 Do Saas-Bahu
sagas get this kind
of attention ?

FACEBOOK USERS SPENT AN AVERAGE OF 4 HOUR 39

MINUTES ON SOCIAL NETWORK IN JUNE 2009.
 Is it as important
as Google?

YOUTUBE IS THE SECOND LARGEST SEARCH ENGINE IN THE

WORLD
 Where is my
video?

TEN HOURS OF VIDEO WAS UPLOADED ON

YOU TUBE EVERY MINUTE IN JULY 2009.
 Am I the topic of
discussion?

TWITTER WOULD BE THE LARGEST BAR IN THE WORLD

WHERE PEOPLE COME AND MEET TO CHAT OVER ALL
KINDS OF TOPICS
 Where is my brand
on twitter?

APPROXIMATELY 19 PERCENT OF ALL TWEETS MENTION AN

ORGANISATION, BRAND OR PRODUCT
 Is it not my TG?

96 PERCENT OF GEN Y HAVE JOINED A SOCIAL NETWORK

 Are my fans
blogging?

MORE THAN 25 PERCENT OF THE SEARCH RESULT ON

GOOGLE FOR THE WORLD LARGEST BRANDS ARE CGC*.

*Consumer generated Content

 Where is my blog?

TIME SPENT ON THE SOCIAL NETWORK AND BLOGS IS

GROWING THREE TIMES FASTER THAN THE OVERALL
INTERNET RATE.
SPORTS 2.0 IS THE FUTURE
Business of Sports 1.0

Sponsor Consumer Platform Fan Sponsee

Business of Sports 2.0

Sponsor Consumer Platform Fan Sponsee

• Interaction
• Value creation
• Continuous experience

BUSINESS OF SPORTS
 License fee Development fee Distribution fee Subscription

Rights Raw video Video on Video on Video in the

a channel transport consumers
Format + home
ads packaged
Edited video

Content owner: Producer: Packager: Carrier: Consumer

-Endemol -ESPN -Tata Sky
-Eyeworks -Star Sports -Big TV
-IPL
-ICL

LINEAR VALUE CHAIN - SPORTS 1.0

 Rights Raw video Video on Video on Video in the
a channel transport consumers
Format + Home , officce, on
ads packaged the go..
Edited video

Content owner: Producer: Packager: Carrier: Consumer

-Endemol -ESPN -Tata Sky
-Eyeworks -Star Sports -Big TV
-IPL
-ICL

video
Live cast
originating Video Live cast
conversion
from Sharing conversion Live
and sharing
source Sports

Video on Consumer Device

Media and sponsor rights are expensive but consumer generated content is free.
The media can fight over content, internet rights but cant control content sharing.
Content sharing is unstoppable: billions of mobile cameras has a power to share raw video in real time.
Content is free, other value model can be charged - Branding, finding & sharing
Share the live sport!

VALUE CHAIN – SPORTS 2.0

EXAMPLES OF THE SPORTS 2.0
 social media tools
can be effective at
connecting athletes
with fans, generating
buzz and helping
fans really get to
know athletes.

Gilbert Arenas, who was pretty much the first sports superstar to have a very popular blog,
Shaquille O’Neal, who is on Twitter and has over 21,000 followers
YardBarker also does a good job with its pro athlete blogs

INVOLVED ATHLETES. ENGAGED ATHLETES.

BRANDS ARE INVOLVED WITH SPORTS 2.0
MORE TRANSPARENT SPORTS AGENCIES
PRO TEAMS WILL GET MORE INVOLVED
SPORTS COMMUNITIES ONLINE
SPORTS IS PART OF THE CXO LIFE
I AM A FAN
MY HOBBY. MY SPORT!
THE SCHOOL COMMUNITY FOR SPORTS
SPORTS 2.0 IS EVOLVING.
SPORTS 2.0 IS FUTURE.
BRAJ CHATURVEDI