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The Effects of Different Club Affiliation on Btv Subscription THE EFFECTS OF DIFFERENT CLUB AFFILIATION ON BTV SUBSCRIPTION David José Pereira Roque Dissertation submitted as partial requirement for the conferral of Master in Marketing Supervisor: Professor Carlos Fernandes Professor de Mestrados Executivos do INDEG-ISCTE Business School-IUL CEO – Laborimóveis e Geral Lazarim Board Member – Centro Português de Design Consultor de Gestão em Estratégia, Finanças e Marketing October 2014 i The effects of different club affiliation on BTV subscription Abstract Sports marketing has unique characteristics that may lead their audience in behave in completely different ways compared with all the others consumer’s profiles. BTV challenged the sports viewing industry not only by spoiling their own TV rights but also by including on their target people who support others teams beyond Benfica. In spite of this strategy has been considered at an initial stage as risky, BTV only in the first year accounted 30 Million Euros of revenues. The current study aims to study the impact that all the different sports contents powered by BTV have on BTV subscription, the influence of different club affiliation on BTV subscription and, the influence of price on BTV subscription. On the first part of the study a literature review was performed in order to understand different insights that were revealed as important to justify the results achieved. This was followed by an analyze of the current situation of televised sports industry in Portugal and BTV in particular. Regarding the contents, English Premier League and Benfica games played at home are by far, the contents that arouse more interest. The results reveal that there is a huge influence of different club affiliation on BTV subscription, particularly by Sporting and Porto supporters. The price perception of BTV is also influenced by different club affiliation, where Benfica supporters have different opinion regarding BTV price, when compared in particular with Sporting and Porto supporters. Other conclusions are highlighted on the last part of the dissertation. Keywords: Club affiliation, sports marketing, emotions, TV Broadcast industry JEL: M310 - Marketing JEL: M390 - Other i The effects of different club affiliation on BTV subscription Resumo O marketing desportivo tem características únicas que podem influenciar o público-alvo a comportar-se de forma diferente quando comparado com outros perfis de consumidores. A BTV desafiou a indústria televisiva, não só por deter os direitos do próprio clube, mas também por incluir no seu target pessoas que apoiam outros clubes. Considerada inicialmente uma estratégia de risco, a BTV atingiu, no seu primeiro ano, 30 milhões de euros em receitas. O presente estudo tem como objetivo analisar o impacto dos conteúdos televisivos na subscrição da BTV, a influência do clubismo na subscrição da BTV, e a influência do preço na subscrição da BTV. Na primeira parte do estudo foi feita uma revisão literária com o intuito de compreender as diferentes perceções de forma a poder fundamentar e legitimar os resultados obtidos. Posteriormente foi feita uma análise à indústria das transmissões desportivas em Portugal e à BTV especificamente. Relativamente aos conteúdos desportivos, a Liga Inglesa e os jogos do Benfica em casa representam, com grande destaque, os conteúdos de maior interesse. Os resultados revelaram a existência de uma grande influência do clubismo na subscrição da BTV, particularmente no caso dos apoiantes do Sporting e Porto. A perceção de preço da BTV é também influenciada pelo fator anterior, onde se observa que os apoiantes do Benfica apresentam uma opinião muito diferente daquilo que são os resultados da análise aos apoiantes de Sporting e Porto. Outras conclusões estão presentes no final da dissertação. Palavras-chave: Clubismo, marketing desportivo, emoções, indústria das transmissões televisivas. JEL: M310 - Marketing JEL: M390 - Other ii The effects of different club affiliation on BTV subscription Acknowledgements Working on this dissertation has been an incredible and rewarding experience. I would like to acknowledge everyone somehow involved for their incredible contribute. First, I would like to deeply acknowledge my dissertation supervisor Professor Carlos Fernandes, for his guidance, mentoring and support. His expertise brought me important insights only reachable with his counseling. Was really a privilege working under his direction and guidance. I also would like to express my gratitude to my manager and my colleagues who have been comprehensive and helpful since I joined my work. I am grateful to my family and friends for their never ending support and patience. They always believed in me and that it was a key-factor in this process. Finally, a special thanks to Marta Cabral and my mother who has, during this time, always been a source of inspiration, encouragement and motivation. Their unconditional support kept me going during the hard times and helped me get the focus needed to accomplish my goals. iii The effects of different club affiliation on BTV subscription Table of Contents Abstract ....................................................................................................................................... i Resumo ....................................................................................................................................... ii Acknowledgements ................................................................................................................... iii Table of Contents ...................................................................................................................... iv List of Tables ............................................................................................................................ vii List of Figures ......................................................................................................................... viii Executive Summary ................................................................................................................... x Chapter 1 .................................................................................................................................... 1 1.1 Introduction .......................................................................................................................... 1 1.2 Objectives ............................................................................................................................. 3 1.3 Thesis Structure .................................................................................................................... 4 Chapter 2: Literature Review ..................................................................................................... 5 2.1 Televised Sports ................................................................................................................... 5 2.1.1 Importance of televised sports ....................................................................................... 5 2.1.2 Motives for viewing televised sports ............................................................................. 6 2.1.2.1 Emotional Motivations in viewing televised sports ................................................ 7 2.1.2.2 Cognitive motivations in viewing televised sports ............................................... 10 2.1.2.3 Behavioral and social motivations in viewing televised sports ............................ 11 2.2 Motives for viewing televised sports and fandom ............................................................. 14 2.3 Emotions ............................................................................................................................. 16 2.3.1 Classification of Emotion ............................................................................................ 16 2.3.2 Emotions and Sports consumers .................................................................................. 17 2.3.3 Dualistic model of passion .......................................................................................... 19 2.3.4 Obsessive passion ........................................................................................................ 20 2.3.5 Harmonious passion .................................................................................................... 20 2.3.6 Dualistic model applied to sports fans ......................................................................... 21 iv The effects of different club affiliation on BTV subscription 2.4 Broadcast Industry .............................................................................................................. 22 2.4.1 Introduction ................................................................................................................. 22 2.4.2 The distribution process of broadcasting rights ........................................................... 23 2.4.3 Sports rights holders .................................................................................................... 23 2.4.4 Licensed broadcasters .................................................................................................. 24 2.4.5 Integration of the broadcast industry ........................................................................... 24 2.4.6 The influence of technology on broadcasting .............................................................. 25 Chapter 3: Contextualization ...................................................................................................
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