Lesson 1.2 - Slides-Industry Growth

Lesson 1.2 - Slides-Industry Growth

Lesson 1.2 Factors Contributing to Industry Growth Copyright 2013 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 2013 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Evidence of Increased Participation Rates The U.S. Youth Soccer Association reports that there were 100,000 registered players in 1974. Today the organization has grown to 3.2 million registered players and over 800,000 coaches

and volunteers Copyright 2013 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Evidence of Increased Participation Rates The number of U.S. golfers has risen to 12.6% of the population vs. 3.5% 50 years ago Copyright

2013 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Evidence of Increased Participation Rates According to the National Federation of State High School Associations, the sport of lacrosse has seen a 280% increase in participation in the last decade Copyright

2013 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Evidence of Increased Participation Rates Among sports and recreation activities that grew more than 15% the past 10 years, skateboarding led the way with a 74.1% growth, according to the National Sporting Goods Association (NSGA) Copyright

2013 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Evidence of Increased Participation Rates Skateboarding saw a remarkable increase in the last 10 years, due in part, to the television exposure provided by ESPNs X-Games - NSGA VP of Information & Research, Thomas B. Doyle Copyright

2013 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

2013 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Increase in Those Following Sports & Entertainment U.S. television broadcast 800 hours of sports in 1971 NBC will live stream the entire 2014 Winter Olympics in Sochi, Russia, marking the first time that fans will have a chance to watch every Winter Olympic event live (compared with a total of 14 total hours of coverage from the 1964 Tokyo games) Copyright

2013 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

2013 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Increase in Sports/Entertainment Offerings More options for sports as participants: Disc golf the sport spread to 560 courses nationwide by 1995 and doubled that number by 2000. Today, the Professional Disc Golf Association boasts more than 4,000 courses globally and the game is played in more than 40 countries Copyright

2013 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 2013 by Sports Career Consulting, LLC

History of SEM LESSON 1.2 Increase in Sports/Entertainment Offerings ESPNs coverage features more than 65 sports including MLB, NBA, NFLs 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

2013 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 doesnt include the seventeen specialty packages that require an additional

subscription like the NBA League Pass, NFL Ticket or NHL Center Ice). Copyright 2013 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Copyright 2013 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 2013 by Sports Career Consulting, LLC History of SEM LESSON 1.2

Attendance Increases Despite playing just half a season thanks to a lockout that drew plenty of fan and media criticism, NHL league attendance in 2013 was 12,758,849 Copyright 2013 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Attendance Increases To put the leagues growth into perspective, the NHLs 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 2013 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. 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. Copyright 2013 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Discussion Topic Titanic more than doubled Star Wars at the box office in terms of overall

global ticket sales, but is that the whole story? Do you think twice as many ticket buying patrons attended Titanic than Star Wars? Why or why not? Copyright 2013 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Discussion Topic Although Titanics box office figures are incredibly impressive, the box office figures do not necessarily tell the whole

story. Ticket prices in 1997 were much higher than they were in 1977, the year Star Wars was released and box office records are not adjusted for inflation. Copyright 2013 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Discussion Topic When box office numbers are adjusted for inflation, the domestic top grossing film in American history is NOT Titanic.

What is it??? Copyright 2013 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Discussion Topic After adjustment, the top spot goes to Gone with the Wind, while Titanic slips to just 6th

overall Copyright 2013 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 2013 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Media Coverage Media coverage of sports and entertainment has grown significantly in the past halfcentury, placing athletes and entertainers in the public eye with incredible frequency Copyright

2013 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Media Coverage Introduction of Internet makes information available on demand with increased frequency and accessibility Copyright 2013 by Sports Career Consulting, LLC History of SEM LESSON 1.2

Media Coverage Television and radio provide alternative news sources to newspapers while social media provides an even newer alternative to all other forms of media Profit potential for media centers encourage increased competition for top stories Introduction of Internet makes information available on demand and with increased frequency Copyright 2013 by Sports Career Consulting, LLC

History of SEM LESSON 1.2 Media Coverage Arnold Palmercame along at the same time television was exploding in America. Now weve got global Internet access. Our sport wasnt global when I began playing the Tour. Now it is. You can log on anywhere in the world an see what any player did in any tournament or for the year. With that international boom, that international stream of information, golf is getting exposed to parts of the world that it never even thought of getting into. - Tiger Woods Copyright

2013 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

2013 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Global Marketplace The international marketplace continues to provide a platform for driving sales of sports and entertainment products and services Copyright 2013 by Sports Career Consulting, LLC History of SEM

LESSON 1.2 Global Marketplace Global events like Wimbledon, the Tour de France, FIFA World Cup, Olympic Games, the Iditarod and Cannes Film Festival attract world-wide attention, providing an exceptional marketing opportunity for ticket sales, sponsorship sales, licensing and merchandise opportunities and provide a major economic impact for host cities Copyright 2013 by Sports Career Consulting, LLC History of SEM

LESSON 1.2 Global Marketplace In 2010, ESPN, CANAL + Events and Tignes Ski & Snowboard Resort (in France) launched the first Winter X Games to be held outside the United States, and X Games Munich 2013 demonstrated the growth in global appeal of the event when 47.5 hours of action were broadcast across ESPNs various platforms, including 26.5 hours on live television Copyright 2013 by Sports Career Consulting, LLC

History of SEM LESSON 1.2 Global Marketplace The global demand for footwear and sports apparel continues to grow with international brands like Chinas Li Ning and Germanys Adidas and Puma fiercely competing with American brands like Nike and Under Armour for market share Copyright 2013 by Sports Career Consulting, LLC History of SEM LESSON 1.2

Global Marketplace A number of NBA All-Stars have recently opted out of relationships with American brands to pursue deals with Chinese sportswear brands, including Dwyane Wade who left Jordan Brand for Li-Ning, Steve Nash who left Nike to sign with Luyou, Kevin Garnett left Adidas to sign with Anta, and Kevin Love wears a new Chinese shoe brand, 361 Degrees. In 2013, Reebok intensified its marketing efforts to reach consumers in India (with its population of more than 1.2 billion people) by signing Indian cricket captain M. S. Dhoni as its ambassador, along with other yet-to-be-revealed well-known personalities from different walks of life such as musicians, entertainers and professionals" (according to the Economic Times)

Copyright 2013 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Copyright 2013 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Global Marketplace Prominent american sport are making a push to

expand their presence overseas by hosting regular season games (not exhibition games) outside of the United States Copyright 2013 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Signs of Continued Industry Growth The worldwide video game industry is poised to reach $70.1 billion by 2015, thanks to the combined growth of console, portable, PC, and online video games, according to market

researcher DFC Intelligence Copyright 2013 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Signs of Continued Industry Growth While the demise of the CD seems inevitable, sales of digital music continues to climb when in 2012, for the first time, digital stores sold more albums than retailers and mass merchants like Target and Walmart Digital services such as iTunes sold 37% of

albums in 2012 While CD sales continue to slide, vinyl is on the rise, up a record 19% in 2012 Copyright 2013 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Signs of Continued Industry Growth Digital services such as iTunes and Amazon MP3: 37% Walmart, Target and other mass merchants: 29% Best Buy and similar chains: 15% Non-traditional outlets such as Amazon physical

sales, mail order, venue and fan club sales: 10% Indie stores: 7% Copyright 2013 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Signs of Continued Industry Growth Pandora radio now boasts over 200 million users Copyright 2013 by Sports Career Consulting, LLC

History of SEM LESSON 1.2 Signs of Continued Industry Growth The global theme parks market is projected to reach $29.5 billion by 2015, according to a report by Global Industry Analysts, Inc. Also according to Global Industry Analysts, Inc., the global footwear market is expected to reach $195 billion by 2015 For the first time in history, ebook sales generated more revenue than hardcover books in 2012 while overall ebook sales have increased 4,456% since 2008 Copyright

2013 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Signs of Continued Industry Growth In 1994, Nikes soccer brand revenues were $40 million. In 2012, the company reported soccer revenues of more than $2 billion (adidas soccer division also surpassed $2 billion in sales in 2012). Copyright 2013 by Sports Career Consulting, LLC

History of SEM LESSON 1.2 Signs of Continued Industry Growth NFL media fees are projected to double to $8 billion annually by the end of the decade According to a story published on ESPNs website, NBA commissioner David Stern told industry executives at a 2013 meeting that the league estimated revenues would be a record $5 billion, an increase of about 20 percent from the league's last full season in 2010-11 (the 2011-12 season was shortened by a lockout) Copyright

2013 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Signs of Continued Industry Growth Centerplate, the leading hospitality partner to North America's premier sports, convention and entertainment venues, is now also the fastest growing restaurant chain in America, according to Nation's Restaurant News. Centerplate serves over 115 million guests per year. Copyright

2013 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Signs of Continued Industry Growth In 2013, Forbes suggested that ESPN had grown to a valuation of $40 billion Copyright 2013 by Sports Career Consulting, LLC History of SEM

LESSON 1.2 Signs of Continued Industry Growth Television audiences continue to grow in size while sports and entertainment properties expand the various means for distributing content (social media, streaming etc) The 2013 NBA Finals on ABC between the Miami Heat and San Antonio Spurs was broadcast in 215 countries and 47 languages Copyright 2013 by Sports Career Consulting, LLC

History of SEM d across all league, team. and player pages on Facebook, Twitter, Instagram, Sina and Tencent. The NBA was the first professional sports league to e LESSON 1.2 Signs of Continued Industry Growth Game 7 of the 2013 NBA Finals attracted the second largest audience since ABC started carrying the series while generating a 5% increase in viewership over last years NBA Finals between the Heat and Oklahoma City Thunder Copyright

2013 by Sports Career Consulting, LLC History of SEM d across all league, team. and player pages on Facebook, Twitter, Instagram, Sina and Tencent. The NBA was the first professional sports league to e LESSON 1.2 Signs of Continued Industry Growth The NBA continues to be a leader in embracing social media surpassing 400 million likes and followers combined across all league, team and player pages on Facebook, Twitter, Instagram, Sina and Tencent. The NBA was the first professional sports league to exceed one billion videos viewed on its YouTube channel and now has more than 1.3 billion videos viewed overall

(according to nba.com). Copyright 2013 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Signs of Continued Industry Growth American viewers tuned into the European Championships 2013 Final in record numbers on ESPN, as the sport continues to grow in popularity in the U.S. The average viewing attendance for all 31 matches at Euro

2013 was 1.3 million, which represented a 51 percent increase on the numbers from the 2008 edition of the tournament. Copyright 2013 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Signs of Continued Industry Growth The value of major league sport franchises continues to grow at a furious pace. In 1973, the late George Steinbrenner bought the New

York Yankees for just under $9 million. In 2013, Forbes magazine valued the historic franchise at $2.3 billion Also in 2013, Forbes reported that the Dallas Cowboys franchise was the most valuable in the NFL at $2.1 billion. In 2012, Forbes reported that the average NFL team is now worth over $1 billion over 250 percent more than when Forbes began calculating team values ten years ago and up 66 percent from just five years ago Copyright 2013 by Sports Career Consulting, LLC History of SEM LESSON 1.2

Signs of Continued Industry Growth Fandom is a term used to refer to a subculture composed of fans characterized by a feeling of sympathy and camaraderie with others who share a common interest Copyright 2013 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Signs of Continued Industry Growth

The term fandom can be used to describe all types of fan groupings or subcultures Copyright 2013 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Signs of Continued Industry Growth ESPNs annual SportsNation Survey found that a whopping 90% of male respondents claimed to be sports fans on some level Over 50% of respondents claimed to more of a sports fan than they were five years ago

58% of respondents would prefer to receive free season tickets to their favorite sports team than be promoted at work. 40% of those participating in the 2012 SportsNation Survey said they had traveled 250 miles or more to attend a sporting event Copyright 2013 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Signs of Continued Industry Growth Fans have, in a limited number of occasions, successfully organized on behalf of a cancelled

television series to lobby networks to bring back their favorite show (examples include Chuck in 2010 and Community in 2012 while prompting Netflix to resurrect cult hit series Arrested Development) Copyright 2013 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Signs of Continued Industry Growth The intensity levels of fandom vary, ranging

from a casual sports fan who might take in one NBA game per year to those fans that put the fan in fanatic (and otherwise engage in behavior that other fans might otherwise find to be irrational) Copyright 2013 by Sports Career Consulting, LLC History of SEM LESSON 1.2

Signs of Continued Industry Growth Fans who go to extremes to show their loyalty to their favorite team, band, actor or other celebrity are often referred to as superfans Copyright 2013 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Signs of Continued Industry Growth

Self-proclaimed Clippers fan Clipper Darrell spent $12,000 customizing his BMW to reflect his love for the Los Angeles Clippers (complete with the license plate CLIPERD) Darrell has gone so far as to have his own personal dedicated website Because Clipper Darrell began charging people for public appearances, the Clippers franchise asked that he disassociate himself with the team in 2012. They would later sort the issue out and Darrell returned to his regular seats. Copyright 2013 by Sports Career Consulting, LLC

History of SEM LESSON 1.2 Signs of Continued Industry Growth A Washington Redskins superfan who goes by the nickname RG3 Woman dresses up in a gold bodysuit at home games to cheer on her favorite player Copyright 2013 by Sports Career Consulting, LLC History of SEM LESSON 1.2

Signs of Continued Industry Growth In 2013, an Alabama football superfan passed away at the age of 91 but had attended 781 straight games Also in 2013, a lifelong Cleveland Browns superfan passed away (his family even encouraged everyone attending his funeral wear clothes supporting the team) but requested that the pallbearers be Cleveland Browns players, stating: "He respectfully requests six Cleveland Browns pall bearers so the Browns can let him down one last time." Copyright 2013 by Sports Career Consulting, LLC

History of SEM LESSON 1.2 Signs of Continued Industry Growth Fandom explains why people propose at sporting events or feature a themed wedding centered on their favorite sports team Copyright 2013 by Sports Career Consulting, LLC History of SEM LESSON 1.2

Signs of Continued Industry Growth On opening night, Activision says that approximately 1.5 million gamers lined up outside 13,000 stores to buy a copy of Modern Warfare 3 at midnight USA Today published a story suggesting the number of people calling in to work sick the day after Call of Duty is release results in a significant increase In 2013, University of Kentucky fans paid between $7,500 to $12,500 for the opportunity to attend a basketball camp (called John Calipari Basketball Fantasy Experience) and essentially experience what its like to be a Kentucky basketball player Copyright 2013 by Sports Career Consulting, LLC

History of SEM LESSON 1.2 Signs of Continued Industry Growth The existence of fandom is what ultimately fuels todays non-stop, around the clock media coverage of celebrities and sports stars and drives a culture in which athletes and celebrities are often quickly forgiven for highly publicized transgressions when they perform Copyright 2013 by Sports Career Consulting, LLC

History of SEM LESSON 1.2 Signs of Continued Industry Growth Four years after dropping Michael Vick as a product endorser, Nike re-signed the star quarterback to a new deal in 2011 after his play on the field and public appearances helped him to rehabilitate his image Copyright 2013 by Sports Career Consulting, LLC History of SEM LESSON 1.2

Signs of Continued Industry Growth While many media pundits publicly chastised LeBron James decision to announce which team he would be joining in a one hour ESPN special, the show (aptly named The Decision) drew very high ratings as nearly 10 million people tuned in to watch Copyright 2013 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Signs of Continued Industry Growth Despite all the scrutiny surrounding singer Chris

Brown (including his widely publicized assault of thengirlfriend Rihanna, a disturbance in a nightclub with rapper Drake, and poor album reviews), his 2013 release of Fortune managed to debut at the top of the Billboard 200 chart Copyright 2013 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Signs of Continued Industry Growth Because of the strong emotional connection fans maintain with their

favorite sports teams, wins and losses on the grandest of stages can yield incredible influence (both positive and negative) on a community at large Copyright 2013 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Signs of Continued Industry Growth

After struggling with one of the worst national disasters in US history (Hurricane Katrina), fans in the New Orleans area often cited the New Orleans Saints Super Bowl win as an inspiration for the citys resurrection Copyright 2013 by Sports Career Consulting, LLC History of SEM LESSON 1.2

Signs of Continued Industry Growth Representing their country just four months after a devastating tsunami rocked Japan, their womens soccer team pulled off one of the greatest upsets in sports history by defeating the heavily favored Germans in the 2011 World Cup and, ultimately, beating the United States in the championship game. Our playing is to be an encouragement for the victims of the disaster, said Coach Norio Sasaki after the monumental victory while the headline in the New York Times the following day read: A Resilient Team Soothes a Nation. Copyright 2013 by Sports Career Consulting, LLC

History of SEM LESSON 1.2 Signs of Continued Industry Growth On the flip side, after beating the Detroit Tigers in the 2012 World Series, Giants fans turned destructive in celebration in downtown San Francisco, including setting fires and rioting Violence also erupted on the campus of Penn State in 2011 after students (fans) learned of the school's decision to fire legendary football coach Joe Paterno in the wake of the now infamous child sex abuse scandal Copyright

2013 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Signs of Continued Industry Growth Fandom can, unfortunately, also result in an unhealthy (and potentially dangerous) subculture of fans that become too emotionally invested and obsessive with their favorite sports teams or celebrities. In 2012, a man was sentenced to serve time in prison after he broke into rap mogul Sean Diddy Combs vacation home in the Hampton and reportedly ate food, drank soda and went to sleep in an upstairs bedroom. The suspect, who told police he "was

actually hoping to stay like 15 to 17 days, was also ordered to stay away from Diddy's house for at least five years. Copyright 2013 by Sports Career Consulting, LLC History of SEM LESSON 1.2 Signs of Continued Industry Growth After being knocked out of the 2013 NBA Playoffs, Chicago Bulls fans who were disappointed that star point guard Derrick Rose was unable to play that season due to injury took to Twitter to voice their

displeasure. Moments after the team lost, #DerrickRoseMoreUselessThan started trending nationally on Twitter. An Ohio State fan, after learning that a high school recruit announced his decision to attend rival school Michigan by posting a photo of the player burning a recruiting letter from Ohio State, pledged on Twitter to pay "$2,000 to whoever sidelines this kid permanently. He would later apologize and offer to donate the money to the University of Michigan. Copyright 2013 by Sports Career Consulting, LLC

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