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Rugby League Interest Only 1,160,000 HOS.0018.0001.5258 AN U N C O MMON SENSE O F THE CON SUMER,., Ill INTRODUCTION 2016 represents the 13th edition of the Nielsen Sports Football Benchmarking Report. The report is designed to provide a robust assessment of key trends shaping the Australian football landscape, whilst also assessing the relative reach and media value derived by clubs within the four major professional football codes in Australia - AFL, A League, NRL and Super Rugby. We trust you will find the 2016 edition of the benchmarking report to be informative. For more information on the Nielsen Sports research collated within this report, please do not hesitate to contact us. HOS.0018.0001.5259 AN UNCOMMON SENSE OF THE CONSUMER,., Ill PART I: KEY TRENDS SHAPING THE 2016 FOOTBALL LANDSCAPE HOS.0018.000m1.5260 WESTERN I BULLDOGS The AFL's new super coach, Luke Beveridge, has overcome .. .. a Preliminary Final hoodoo and a 62-year drought, to lead the Western Bulldogs to the 2016 AFL Premiership. Ranked •~9' outsiders for every finals match, the Bulldogs claimed the premiership from 7th position on the ladder. '-REMIEllS)• Along the way, the Club has smashed through to lead the ~ ~oy AFL across most commercial metrics. HThe Bulldogs achieved substantial growth across all key commercial metrics in 2016" Largest cumulative TV audience in the AFL (up from 13th in 2015) NOTE: All SPONSORS (LEAGUE, TEAMS & MEDIA 8UYl'RS) Copyright© 2016 The Nielsen Company {US). LLC All rights reserved Confidential and Proprietary. HOS.0018.0001m.5261 THE 'SUPERSTAR' EFFECT On 3rd August, Jarryd Hayne returned to Australian sport, signing with the NRL's Gold Coast Titans, drawing massive JARRYD HAYNE media coverage and a spike in fan interest. JOINS THE 3,334 social media posts mentioning the Titans were recorded TITANS across the day before and day of the signing, 70% of the total for the whole month of July. Hayne's debut for the club in Round 22 drew the highest ever attendance for a Titans game at Cbus Super Stadium. It was also the highest-rating Fox Sports Sunday afternoon fixture of 2016, and the highest for that timeslot since late 2013. ONLINE I ARTICLES* POSTS* *July 2016 vs. August 2016 Copyright© 2016 The Nielsen Company {US). LLC All rights reserved Confidential and Proprietary. HOS.0018.0001.5262m Any footy code interest 5 g 0 Q . of national population 10 •8 M unique national footy fans FOOTYFANBREAKDOWN Unique No. National Fans AFL interest only • 3,280,000 Rugby League interest only 1,160,000 Football interest only 1,114,000 Rugby Union interest only AFL & Football interest AFL & Football & Rugby League & Rugby Union interest AFL & Rugby League & Rugby Union interest AFL & Rugby League interest Rugby League & Rugby Union interest Football & Rugby League & Rugby Union interest Football & Rugby League interest i-;-e chart to the left provides a AFL & Football & Rugby League interest I ~reakdown of how the 10.8M unique Aussie football fans are distributed AFL & Rugby Union interest across our four major codes - i.e. of the 10.8M fans, 3.3M are AFL fans AFL & Football & Rugby Union interest 143,000 with no interest in any other codes. The number of people with an interest Football & Rugby Union interest in all four codes sits at 690,000. Copyright© 2016 The Nielsen Company {US). LLC All rights reserved Confidential and Proprietary. HOS.0018.0001.5263m SPORTING FAN BASE SUMMARY For the four major football codes in Australia, declining national interest has been noted over the past four years. Within each individual fan base, "avid" fan share has increased at the expense of general & fringe fans - who are being pulled away from the sport. Sporting codes are indeed retaining their most valuable fans, however the introduction (or replenishment) of new fans has slowed significantly over time. AFL % NATIONAL INTEREST % AVID FAN SHARE 2013 43% 55% 2014 42% 58% 6.82M fans 2015 38% 59% 2016 37% 62% A INTEREST RANK • .......................................................% Shift (16v13) -6% points +7% points RUGBY LEAGUE % NATIONAL INTEREST % AVID FAN SHARE 2013 31% 62% 4.71M fans 2014 29% 63% 2015 28% 64% 2016 26% 66% - INTEREST RANK • ......................% Shift (16 v 13) __________ -5% points ...ii ______ +4%.._ points____ _ % NATIONAL INTEREST % AVID FAN SHARE FOOTBALL 2013 27% 38% 2014 28% 45% 2015 23% 54% 2016 21% 59% • INTEREST RANK ..._ .._ ..._ • ______% Shift (16__ v 13) ________-6% points__________________ +21% points _ RUGBY UNION % NATIONAL INTEREST % AVID FAN SHARE 2013 19% 39% 3.22M fans 2014 18% 42% 2015 19% 47% 2016 18% 51% - INTEREST RANK ..._ .._ .._ • ______% Shift (16__ v 13) ______________________-1% points +12% points____ _ Copyright© 2016 Th e Nielsen Company {US), LLC All rights reserved Confidential and Proprietary. HOS.0018.0001.5264 LIFESTYLE & SPORTING INTEREST TRENDS LIFESTYLE INTERESTS Over recent years, Nielsen Sports have noted major AVG. NO INTERESTS (PER PERSON) shifts in overall interest and LEISURE ACTIVITIES 6 repertoire levels towards (18 activities tested) major lifestyle and sports 5 interest trends. 2014 2016 The average number of leisure activities, fitness FITNESS 4 activities and individual ACTIVITIES sports that the average (13 activities tested) 2 Australian is interested in 2014 2016 has declined significantly over time. SPORTS INTEREST In turn, the percentage of NATIONAL POPULATION the national population with no interest towards % WITH NO INTEREST 9% any sport has increased IN ANY SPORTS from 9% in 2012 to sit at 13% 13% across 2016. 2012 2016 These results highlight the increased fight for AVG. NO SPORTS 6 consumer attention that is INTERESTED IN 5 being faced by rights holders within an ever 2012 2016 changing entertainment landscape. “consumers are allocating greater attention to a smaller number of interests” Copyright © 2016 The Nielsen Company (US), LLC. All rights reserved. Confidential and Proprietary. HOS.0018.000m1.5265 SPORTING VIEWERSHIP LANDSCAPE TV viewership of our major football codes continues to vary each season. The trends below, a result of broadcaster changes, tournament restructures and the growth of non-broadcast view ership and IPTV. • AFL saw 3% growth in cumulative viewership driven by a strong finals series and a Grand Final audience of over 4m. • The introduction of Fox Sports simulcasts and live Thursday night games drove a 14% uplift for NRL viewership. • A broadcast switch to SBS2 for the A-League impacted viewership on FTA, with STY viewership steady. • Competition restructures for Super Rugby boosted viewership through additional broadcast fixtures. T 0 TA L v I E w E Rs H I p STY+ FTA (MILLIONS) 119.2 112.1 11.3 SUP ERU GBY UNIQUE REACH (MILLIONS) FTA1 9.36 ---7.47 1.56 N/A 3.31 3.09 1.75 1.17 Source: OzTam & Nielsen TV Audience Measurement *2015/16 season v 2014/15 season Graph not to scale, based on Premiership season. HOS.0018.000m1.5266 AGEING AUDIENCES Since 2008, the average age of the Australian viewer has increased by three years on free-to-air and four years on subscription television. This increase in age has been mirrored in FTA audiences for AFL and NRL, with both sitting slightly above the national average viewing age. Examining the STV viewership base for each code, NRL and Super Rugby have aged by at least 3 years, and are older than the average Foxtel viewer. AFL average age has remained relatively steady despite the broader market trend. Average age of the A-League viewer has fallen by two years in direct contrast to the STY trend, indicating a younger shift in the viewership base. AVERAGE VIEWER AGE BY PLATFORM 2008 FTA STV 2016 HOS.0018.000m1.5267 VIEWER DEMOGRAPHICS STV VIEWERSHIP The AFL and NRL have a similar middle aged audience base, although the AFL audience is slightly younger and has a greater presence of females. The A-League has a distinct skew towards young males in viewership. Super Rugby viewers are heavily concentrated in the 50-64 age bracket. % AUDIENCE AGE DISTRIBUTION % FEMALE VIEWERSHIP 40% 35% 30% 25% 20% 15% 10% 5% 0% • AFL • NRL • A-League • Super Rugby 0-17 18-24 25-34 35-49 50-64 65+ FTA VIEWERSHIP FTA viewership for AFL and NRL has a greater proportion of females and a greater concentration around the working age 25-64 demographics, comparative to Football viewers. A-League maintains its male skew and over-indexes for viewers under 34. % FEMALE VIEWERSHIP % AUDIENCE AGE DISTRIBUTION 35% 30% 25% 20% 15% 10% 5% • AFL • NRL • A-League 0% 0-17 18-24 25-34 35-49 50-64 65+ Copyright© 2016 The Nielsen Company {US), LLC All rights reserved Confidential and Proprietary. HOS.0018.000m1.5268 CLUB ENGAGEMENT BENCHMARKING Viewership and attendance are key metrics in measuring fan engagement, with every club evaluated on their performance relative to other teams. Scheduling has a distinct impact on club viewership, with marquee clashes playing a significant role in AFL and A-League in particular. Looking across codes, AFL clubs continue to draw greater average audience and crowd values, despite reduced fixture numbers in comparison to both NRL and A-League clubs. Super Rugby teams are impacted by a shorter season and international time differences affecting viewership. TOP 3 TEAMS BY CODE REGULAR SEASON ONLY (NO FINALS) TOTAL VIEWERSH IP (MIL) TOTAL ATIENDANCE (OOO'S) fl -~ G oeo.~ 0 - ~ - llBTlllS - - - ~ llllWHS ' ' . G ~ G & e 9 ' . ~ - - ~ - i G ~ fl (~ fl .. ~ f!J ~ <9HVUl'IOAI .4-LEAGUE - - - - ~ G • fl WARATAHS• G WARATAHS• JI;. SUPERUGBY /(/!JS - - llRUMlllES - G Copyright© 2016 The Nielsen Company {US). LLC All rights reserved Confidential and Proprietary. HOS.0018.0001m.5269 DRAWING CAPACITY CROWDS: TOP TEAMS There was an increased emphasis on the fan experience at stadiums in 2016, as all sporting codes looked to arrest the recent decline in match attendance.
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