Sport Consumption and New Media Technology

Sport Consumption and New Media Technology: Paul Kattestaart, MBus ® M: +61(0)434 183 508 E: paul_kattestaart@hotmail.com Australian Rules Football Fans and the early adoption of interactive television Executive Summary

Introduction Keeping up with the changing face of the sport media nexus can leave the casual observer breathless. Within this realm media devices are converging, morphing and creating new media outlets that are targeted towards avid sport consumers. History has shown that sport is a form of premium content. It is important for broadcasters to secure because it acts as a driver of their business model. A new media technology anticipated to be the next big thing in the sport-media landscape is interactive digital television (iTV). ITV promises to deliver more control and enhance the fans’ viewing experience by providing access to on-demand, in-depth editorial content. Since the inauguration of the digital broadcasting signal at the beginning of 2001, the Australian media landscape has slowly come to terms with iTV. With a current digital pay-TV adoption rate of approximately 25 per cent, and a lower iTV rate anticipated, iTV is still trying to reach maturity. For sport and media managers it then becomes important to better understand the reasons why and how sport-media audiences adopt iTV. Of particular interest is the early adoption process of iTV in combination with Australia’s largest spectator sport, Australian Rules Football (AFL). The perceived characteristics innovators and early adopters have about iTV are critical to understand because they provide solid predictors on how to reach a critical mass. In addition, AFL consumers have had the early opportunity to adopt pay-TV (and through this iTV) and for this reason serve as an ideal population in the context of this research. By conducting 16 in-depth interviews amongst pay-TV subscribers this research endeavoured to identify and explain the impact of the variables that affect the early adoption process of iTV by AFL consumers in Australia. The next section represents an overview of the critical findings of this research. The impact of these findings is explained, followed by the anticipated implications for marketing iTV.

Key Finding 1
The main reason for AFL consumers to purchase digital pay-TV relates to the availability of premium content. Sport, and in particular Australian Rules Football, plays an important role in this process.
AFL consumers do not purchase digital television for the interactive capabilities, but rather for the increased number of choices digital pay-TV offers.
Sport and media managers should focus on acquiring premium content and subsequently targeting marketing communication messages towards non-subscribers. These messages should include the increased number of choices available which directly relates to the psychological value of ‘freedom’. Such messages would be most persuasive and are able lure new consumers to the digital platform.
Content is still king Finding Impact Implication

Key Finding 2
ITV is perceived by AFL consumers as an additional feature in their digital pay-TV package.
Although iTV is perceived as a ‘hidden’ technology, it creates added value capabilities once the AFL consumers is subscribed to the digital platform.
ITV should be regarded by sport and media managers as a loyalty tool within the pay-TV subscription package. As a result iTV could be utilised as an instrument to fight churn and to potentially increase the average revenue per unit.
Finding Impact Implication iTV is perceived as a supplementary attribute

Key Finding 3
The increased number of choices that digital pay-TV offers is an important attribute in the pre-purchase phase
Control is desired once digital TV (and iTV) is implemented by AFL consumers.
AFL consumers do not always desire to utilise iTV, due to the complex nature of the AFL broadcast and the respondents’ capability to make sense of it. When the game is in full swing they do not use the interactive features.
Marketing efforts should initially focus on the promise that iTV delivers increased choice or diversity. Once the AFL consumer implements the innovation, marketing efforts should focus on delivering control over the number of options available.
This can be achieved by a systematic categorisation and grouping of channels and interactive services, which would assist respondents to canalise and abridge the total number of options presented to them.
Finding Impact Implication The paradox: more choice and increased control are desired

Key Finding 4 Finding Impact Implication
The majority of decisions concerning pay-TV were made collectively within a household.
Younger respondents are more likely to adopt iTV faster than older respondents in the same household.
Marketing efforts could focus on younger respondents because they often serve as gatekeepers regarding the decision-making unit to adopt iTV.
Decision stage: collective decisions prevail

Being there : AFL consumers indicated that iTV approaches the live stadium experience.
Sport competence : iTV enables AFL consumers to obtain more knowledge about the game and in some cases this makes them feel closer to their team. In addition, some derive more pleasure from their viewing experience by obtaining more knowledge, which they subsequently used for their own sport experience.
iTV has the capability to prolong the engagement and increase the level of involvement with the broadcast.
Variety seeking: iTV allows AFL consumers to seek variety during their viewing experience when they feel either under- or over-stimulated.
ITV holds some surprises!

Unlike other new media technologies such as mobile phones or television in your car, status was not derived from iTV.
This has severe consequences for word-of-mouth (WOM) communication.
The development of iTV applications that encourage status enhancement might include an interactive application such as an integrated ‘fantasy football league.’ This would contribute towards enhancing WOM communication amongst AFL consumers and increase the usage of interactive features.
AFL consumers do not obtain status from iTV

What is next?
ITV seems to be more suited for individual consumption. Sport media marketers should take this into account whilst most sport-media products are suited for group consumption.
Future research should focus on iTV applications that are capable of generating revenue (T-commerce).
Marketing efforts should focus on the (economic) rational behind each interactive feature and easy navigation.
Marketers should focus on different roles the members of a household play in the decision-making process.
The delivery of iTV on different platforms such as mobile and IPTV should be explored. This is especially important for the promiscuous (younger) generation.

For more information please contact Paul Kattestaart at: 4 Embleton Avenue Tarneit Victoria, 3029 Australia E: paul_kattestaart@hotmail.com M: +61(0)434 183 508

Sport Consumption and New Media Technology

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Sport Consumption and New Media Technology Presentation Transcript