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Lesson 1.1 Genesis Of Lesson 1.1 Genesis of SEM Copyright © 2016 by Sports Career Consulting, LLC History of SEM Lesson 1.1 What is SEM? Acronym for: Sports and Entertainment Marketing Copyright © 2016 by Sports Career Consulting, LLC History of SEM Lesson 1.1 The Evolution of SEM SEM is a relatively new concept ➢ Forms of sports marketing started as early as 1858 (first known athletic event to charge admission took place at a baseball game) ➢ Entertainment as we know it today (movies, radio, television, music) exploded from 1900 on, and as technology improved, so did the products being offered Copyright © 2016 by Sports Career Consulting, LLC History of SEM Lesson 1.1 The Evolution of SEM SEM is a relatively new concept ➢ The 1900’s also brought the advent of carnivals, amusement parks, and theme parks which evolved from (but did not completely replace) fairs, circuses and festivals Copyright © 2016 by Sports Career Consulting, LLC History of SEM Lesson 1.1 The Evolution of SEM Many events influenced growth ➢ Evolved as fan support grew with willingness to spend discretionary income on sports ➢ Emergence of radio and television increase exposure to sports. Copyright © 2016 by Sports Career Consulting, LLC History of SEM Lesson 1.1 The Evolution of SEM ➢ Corporations began to see the benefit with sports affiliations, resulting in a sponsorship boom ➢ Celebrity endorsements and naming rights deals became common industry practice ➢ Advancement of technologies making it easier to consume sports and entertainment while more sports and entertainment properties are introduced Copyright © 2016 by Sports Career Consulting, LLC History of SEM Lesson 1.1 Industry Size & Scope ➢ The sports business industry is one of the largest and fastest growing industries in the US ➢Overall size of the entire sports industry in the U.S. is around $485 billion (global, the sports industry is estimated to be around $1.5 trillion) Copyright © 2016 by Sports Career Consulting, LLC History of SEM Lesson 1.1 Industry Size & Scope How does the sports industry stack up against other industries? Copyright © 2016 by Sports Career Consulting, LLC History of SEM Lesson 1.1 2014 Sports Industry Revenue Streams Sports goods equipment (retailers) Racetracks, sports teams & other spectator sports “Big 4” U.S. sports leagues Fitness and recreation NCAA sports NASCAR 0 5 10 15 20 25 30 35 40 60 80 Source: Plunkett's Sports Industry Almanac Overall Spending (In Billions) Copyright © 2016 by Sports Career Consulting, LLC History of SEM Lesson 1.1 Industry Size & Scope ➢ Entertainment industry extends from movies, television and radio, to theatre, home entertainment, amusement/theme parks, gaming and much more ➢ Consumers have shown an insatiable appetite for entertainment resulting in an industry boom Copyright © 2016 by Sports Career Consulting, LLC History of SEM Lesson 1.1 Broadly measured, the entertainment and media industry spans multiple sectors ➢ 9,566 FM radio stations in the US ➢ Over 1.4 billion movie tickets are sold each year in U.S. theaters ➢U.S. communications and media spending: ● $891.5 billion in 2008 ● $1.12 trillion in 2012 ● $1.416 trillion in 2016 (estimated) Copyright © 2016 by Sports Career Consulting, LLC History of SEM Lesson 1.1 Broadly measured, the entertainment and media industry spans multiple sectors ➢ Of the 50 billion+ downloads sold in the history of the iTunes store, 15 of the 25 most downloaded apps ever are games Copyright © 2016 by Sports Career Consulting, LLC History of SEM Lesson 1.1 Entertainment Industry Revenue Streams Film/theatrical/DVD TV broadcast and cable Music industry Electronic gaming Amusement/theme park Theatrical productions 0 10 20 30 40 50 60 70 80 90 Source: U.S. Census Overall Revenue (In Billions) Copyright © 2016 by Sports Career Consulting, LLC Lesson 1.2 Factors Contributing to Industry Growth Copyright © 2016 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Factors Influencing Industry Growth ➢ Increase in participation ➢ More people following sports and entertainment ➢ Increase in sports/entertainment offerings ➢ Attendance boom ➢ Media coverage ➢ Global products Copyright © 2016 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Evidence of Increased Participation Rates Soccer: 1974 - 100,000 registered players Today - 3.2 million registered players & over 800,000 coaches and volunteers Copyright © 2016 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Evidence of Increased Participation Rates Golf: 50 years ago - 3.5% of population Today - 12.6% of population Copyright © 2016 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Evidence of Increased Participation Rates Lacrosse: 280% increase in the last decade Copyright © 2016 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Evidence of Increased Participation Rates Skateboarding: 74.1% growth in the last decade Why? X-Games Copyright © 2016 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Evidence of Increased Participation Rates Hockey: ● 2014 - 519,547 register amateur hockey players in the US ● 8,000 more players than any other year Copyright © 2016 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Factors Influencing Industry Growth ➢ Increase in participation ➢ More people following sports and entertainment ➢ Increase in sports/entertainment offerings ➢ Attendance boom ➢ Media coverage ➢ Global products ➢ Emergence of Internet and new technologies Copyright © 2016 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Increase in Those Following Sports & Entertainment ● 1971 - 800 hours of sports broadcast hours ● 2012 Olympics - 5,535 hours ● 2016 Summer Olympics in Rio, Brazil - 6,000 hours ○ all 130 competitions were streamed online Copyright © 2016 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Factors Influencing Industry Growth ➢ Increase in participation ➢ More people following sports and entertainment ➢ Increase in sports/entertainment offerings ➢ Attendance boom ➢ Media coverage ➢ Global products ➢ Emergence of Internet and new technologies Copyright © 2016 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Increase in Sports/Entertainment Offerings More options for sports as participants: Disc Golf: ● 1995 - 560 courses in the U.S. ● 2016 - 5,000 courses ● Average yearly growth = 16% (for the past 15 years) Copyright © 2016 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Increase in Sports/Entertainment Offerings More options for sports as participants: Spikeball: ● Invented in the 1980's ● Disappeared during the 90's ● 2013 - reappeared ● Today - over 125,00 participants ● has its own governing body ● Self-proclaimed fastest growing sport in the U.S. (300 tournaments last year alone) Copyright © 2016 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Increase in Sports/Entertainment Offerings More options for sports as participants: Rugby: ● One of the fastest growing sports in the U.S.A. ● 14% growth annually for the last five years ● Today - boasts a record 1.2 million participants throughout the country. ● Olympic event in 2016 (first time since 1924) Copyright © 2016 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Increase in Sports/Entertainment Offerings More options for sports as participants: In 2013, Hawaii became the first state to sanction surfing as an officially recognized high school sport Copyright © 2016 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Increase in Sports/Entertainment Offerings More options for sports as participants: Also in 2013, the state of Missouri bass fishing became an officially sanctioned high school sport (joining the states of Illinois, Kentucky and Tennessee as states sanctioning fishing as a recognized sport) Copyright © 2016 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Increase in Sports/Entertainment Offerings More options for sports as participants: One school in Florida is attempting to legitimize Go Kart racing as an official varsity sport Copyright © 2016 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Increase in Sports/Entertainment Offerings ESPN’s coverage features more than 65 sports including MLB, NBA, NFL’s Monday Night Football, NASCAR, MLS, FIFA World Cup, WNBA, college football, men's and women's college basketball, golf, Little League World Series, fishing, spelling, billiards, poker, arena football, eating championships, and the X Games Copyright © 2016 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Increase in Sports/Entertainment Offerings DirecTV now offers over 285 channels as part of their “premiere” package, including over 50 channels dedicated specifically to sports programming (and that doesn’t include the seventeen “specialty” packages that require an additional subscription like the NBA League Pass, NFL Ticket or NHL Center Ice). Copyright © 2016 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Copyright © 2016 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Factors Influencing Industry Growth ➢ Increase in participation ➢ More people following sports and entertainment ➢ Increase in sports/entertainment offerings ➢ Attendance boom ➢ Media coverage ➢ Global products ➢ Emergence of Internet and new technologies Copyright © 2016 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Attendance Increases The NHL enjoyed its second highest attendance figure in league history during the 2015-16 season with 21,451,041 fans visiting NHL arenas. Copyright © 2016 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Attendance Increases To put the league’s growth into perspective, the NHL’s attendance was 7,758,05 in the 1978-79 season 2012-13 NHL season attendance (lockout shortened season) 21,470,155 1978-79 NHL season total attendance 7,758,05 Copyright © 2016 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Attendance Increases Over 75 percent of movies in the top 50 all-time highest-grossing films (before inflation) were released after the year 2000. Nearly 50 percent of films in the top ten were released in 2015 or later. The highest grossing film in the 70s was Star Wars, at just under $800 million and in the 80s was E.T., at just $750 million.
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