Last year I expressed dismay that Mike Ilitch, owner of the Detroit Red Wings and Detroit Tigers, was seeking to get his hands on the Pistons as well. In the event, a different buyer bought the Pistons from Karen Davidson and I was pleased.
Today comes news that Rogers Communications and Bell Canada are buying Maple Leaf Sports and Entertainment from the Ontario Teachers Pension Plan. Rogers and Bell will each have a 37.5% stake. Though MLSE, Rogers now is the effective co-controlling owner of the Raptors, Maple Leafs, Air Canada Centre, and (not mentioned in the Reuters article) Toronto FC of Major League Soccer. And Rogers already owns a controlling share of the Blue Jays and Skydome (er, excuse me, "Rogers Centre"). The only independently owned pro club in Toronto is now the Argonauts.
This cannot be good news for Toronto sports fans or cable TV subscribers. Rogers and Bell each own a cable TV channel (Sportsnet and TSN) and collectively they hope to corner the market on Leafs and Raptors broadcasts. Ticket prices and sports apparel will likely spike as well. Canada's Competition Bureau must stop this purchase.
Friday, December 9, 2011
Robber Barons Up In The Frozen Tundra
Wednesday, June 1, 2011
Film Marketing in the NBA Finals
Since 2009, ABC/ESPN has made a habit each year of selling heavy advertising promotion during the NBA Finals to one comedy film of questionable quality. The trouble with these advertising segments is not merely that the movies are bad, but that ABC constructs the features as "advertorials" that blur the line between the network's basketball coverage, on the one hand, and its revenue-generating function on the other.
In '09 we saw constant promos for the Jack Black stinker Year One, which hit theaters on June 19th that year. NBA fans hoping to learn how Orlando rookie SG Courtney Lee would oppose Kobe Bryant's offensive assault, or how the Lakers could deal with Hedo Turkoglu on the P&R, were instead subjected to this inane banter of Black and Michael Cera talkin' hoops:
On June 3, 2010, Adam Sandler, Chris Rock, Kevin James, and David Spade oddly showed up at courtside in Staples Center for Game 1 between the Lakers and Celtics. Getty Images published a pic, purportedly just another paparazzi snap, of the four actors enjoying themselves. But by more than wacky coincidence, these guys were ready to promote a new movie, Grown-Ups, set to debut on June 27th of that year. Finals viewers soon realized that they were booked for seven games worth of Sandler and his buds cracking jokes in ABC-branded promos during NBA airtime.
Last night, during Game 1 of Dallas-Miami, viewers saw (more than once) an ABC-branded promo for Kevin James's new film, Zookeeper, ready for release on July 8th. I am partial to cute animals, so I am not yet ready to call the movie stupid, but the previews have not looked compelling. If you couldn't get enough of James on a Segway in Mall Cop, James promises to bring even worse obloquy to the profession of wildlife caretaker. ESPN/ABC apparently thought that the NBA's talking-basketball promos from this season's playoffs were clever and iconic enough that a meta-ad featuring James, sitting next to a talking gorilla character from his movie, watching the talking-basketball ad on a television would be snappy. [The original talking basketball bits this spring were fairly amusing, but nothing like the "There Can Only Be One" campaign from 2008, also delivered by ad agency Goodby, Silverstein.]
Surprisingly, none of these movies were produced or owned by the Walt Disney Company (owner of ABC/ESPN); distribution rights for all three belonged to Sony/Columbia. Apparently Sony has a good deal with Disney and the former plans to milk the latter's NBA platform every June for summer movies with shaky pedigrees. Of course, film economics are hard to predict. Year One cost about $60 MM to produce, but earned only $43 MM at US theaters. The Sandler movie, missing any special effects that would drive up costs (though perhaps featuring too many high-salaried actors), earned over $160 MM domestically. Sony's marketing strategy may be an example of the sunk-cost fallacy: having spent a lot of money on a lemon of a project, the sponsor figures he needs to spend even more to gin up some revenue out of it. Sometimes this calculus works, but sometimes it doesn't. "Zookeeper" looks more like a "Year One" redux than a "Grown-Ups"-like hit. Meanwhile, NBA fans must gird for a couple weeks of Kevin James.
Tuesday, March 1, 2011
Finally, Revenge on Hollywood for "Juwanna Mann"
Did anyone else find it weird that ESPN featured two NBA games on Sunday night (Knicks vs. Heat and Blazers vs. Hawks), starting at 8:00 PM EST? ESPN is not normally in the habit of showing Sunday night games, and ESPN's corporate affiliate, ABC, was broadcasting the Academy Awards starting at 8:00. Why cannibalize your sister network's ratings?
To be fair, the overlap of fandom for NBA action and Hollywood glamour is probably not extensive, and basketball fans would be angered if the Knicks-Heat game, featuring four of the top five scorers in the league, were not nationally televised. Still, the decision was risky from the perspective of Disney's overall content strategy. And today came news that the TV audience for the Oscar show was down 10% from 2010's viewership (though, to be fair, still greater than 2008 and 2009 numbers). Ratings information for Sunday night's Knicks-Heat battle is not yet available, though I will post it once I can find it. ... UPDATE: The Knicks-Heat game drew 4.2 million viewers, the most popular show on cable television that night. Had those 4 million viewers been added to the 37 million Oscar viewers, the 2011 Oscars would have bested the roughly 41 million viewers of the 2010 Academy Awards.
Friday, December 31, 2010
Foreign-Owned League
Watching a typical NBA television broadcast, one realizes that almost all of the league's corporate sponsors are based outside the United States:
All of these foreign-based firms sell products to US consumers, of course, which makes the NBA, a touchstone of youth culture, an attractive marketing vehicle. While other American pro sports have signed up American companies as sponsors (a typical NFL broadcast features Brett Favre shilling for Sears, overgrown men wolfing Campbell's Chunky Soup ladled by Donovan McNabb's mother, and a few Bud Light ads), the NBA has become beholden to international patrons. This certainly fits with Commissioner David Stern's long-marching goal of bringing the league to hundreds of millions in Europe and Asia.
Things were not always thus. Reading David Halberstam's The Breaks of the Game, I recently learned that brands like Ford and Chevrolet were inveterate sponsors of the Association back in the 1970s. Perhaps large American consumer-focused companies no longer see NBA fans as an attractive market; are hoops-heads too poor, too pigmented, or possibly too young? (I thought a maxim of marketing is to sign up young customers while they are still forming their habits and loyalties.) Alternatively, foreign-based corporations, perhaps applying different marketing strategies due to their previous nonexistence in this country, may simply value those fans more. It could even be that these international entities can juice their reputation in their home countries by associating with the NBA.
These days, it seems that all the action in the US economy is in the digital space. By building a cool website like a Netflix, Twitter, or Groupon, an entrepreneur can scale his customer base very quickly, build a following in the zeitgeist, and attract billions in capital. Lions of the American "old economy" no longer have a need for the NBA. When will we see the Google Halftime Show or the Pandora HORSE Challenge?
