rights fees in sport :: essays research papers

The steadfast rule when it comes to sports and rights fees is that its the business of entertainment. The dollars ar going to go where the value is. With Rights fees, networks pay fees to give way the rights to a particular broadcast, for example march madness, the NFL or the Olympics.Rights fees be inflexible by the value a certain property holds, this is determined by the ratings. The most important ratings market world wide is undisputedly the northwards American, and in particular the US market as we will subsequent discuss with the Olympic media coverage. With in the US it is a battle field of battle to increase ratings because of the dollar value associated with the opportunity to sell advertising and thence the rights fees.Personally I believe that 1.725 billion is a ridiculous bill for NBC to pay for the rights fees of prove Madness. But obviously they are not mad. The economics and financials behind their decisions to continually pay more and more is well(p)ifia ble. Once over again boiling down to the ratings. The 70 hours of March Madness are passing popular in the US and boast extremely high ratings. Therefore, advertisers are willing to pay the big bucks to get their ads on the air. The same is straight about the Superbowl, with 30 second advertising sports reaching astronomical highs networks are lining up to buy the rights fees for the event. As Bill Brown the cured vice president of Fox Sports stated, we want entertainmentwe want to send the teams that will deliver us the highest ratings. That truly summarizes the essence of sport media today, and why rights fees are working. Fox, paying MLB about $417 million a course of instruction in a deal, which expires next year. With baseballs popularity on the formulate again the rights fees for the league are undoubtadly going to increase. But as the amount have shown the Fox network is the big spender when it comes to rights fees, dispensing $2.5 billion from 2001 to 2006 on MLB al one. While Fox has a hold on baseball, Time Warner and first rudiment/ESPN seem to be focusing their dollars on the NBA, both handing over just over $2 billion over a 6 year period . But as aformentioned the rating speak volumes and while the NBA is precise popular in the US, from a network point of view March Madness, NCAA basketball is a winner.