The 2020 European Cup finally ends in July 2021, and with it comes a long overdue sports year.
In the year when the world’s top events were collectively shut down, event organizers had to retrench their expenditures, stadium revenues plummeted, and the equipment industry suffered serious blood loss. Advertisers who had spent a lot of money lost their money and won the broadcast. The copyrighted video platform is facing “no rice to cook”, and all aspects of the sports industry chain have been caught off guard by sudden variables.
With the epidemic gradually get control of major sporting events back on track after another, European Cup grand ending seems more a signal to everyone, drinking beer, eating crayfish stay up late watching the day finally came back. So, the sports industry, which has been struggling in the dark, has finally survived the darkest moment. Can it be resurrected with full blood?
Who makes money in the European Cup?
Drinking international sports events with global attention and empty streets has never been just a carnival for sports fans. From ticket revenue, to event broadcasts, to derivative sports services and fan economy, there are high-quality gold mines everywhere. Once the sports events in the upper reaches of the industry chain resume, the entire sports industry chain will naturally resume operations from stagnation and quickly return to life.
Judging from the “earnings” of the tournament itself, the gold absorbing ability of this European Cup has not diminished at all. First of all, commercial sponsorship is still a considerable amount of income. “Youthful energy” Internet brands increased rather than decreased enthusiasm for the European Cup, TikTok, Takeaway.com, helter-skelter off other Internet rookies are happy showing up in the European Cup; “not bad money” and more Chinese companies eager to sea It is the limelight, occupying four seats among the 12 top sponsors. Institutions speculate that the total sponsorship revenue of this European Cup will reach 1.6 billion euros.
Secondly, the broadcast rights interests before the European Cup the bulk of profits. Different from the past, this European Cup has adopted the TV + network broadcasting rights sales model in many countries, and the Internet broadcasting channel has brought a new source of income to the European Cup. The agency predicts that this year, nearly 2 billion people will watch the European Cup through TV and streaming media platforms. The total number of live viewers is expected to exceed 4.7 billion, and UEFA’s broadcast revenue can reach 2.2 billion euros.
Affected by the epidemic, the number of spectators in this European Cup is mostly restricted to 22%-50%, which will inevitably be greatly reduced in terms of ticket revenue. However, the proportion of ticket revenue to the overall revenue of the European Cup has long been declining year by year, and it was only 14% in 2016. Therefore, the reduction in ticket revenue will certainly not hurt your muscles.
Looking back at the domestic market, there are more players and gameplay in the media communication field in the middle of the industry chain, and the copyright distribution of sports events is still a good business. This year’s European Cup broadcast rights will no longer be dominated by CCTV alone, and more and more players will get a share of the game. Among them, CCTV still holds the copyright of the TV side, and the copyright of the new media goes to Xinying Sports . Migu and iQiyi Sports have also obtained broadcast rights from the two hands. Since the opening of the sports event broadcast policy, new and old streaming media platforms have been eyeing the copyright of the event, and the traffic and commercial value of sports content have also risen in the increasingly fierce competition.
In addition, sports copyright owners have begun to embrace short video platforms, and the competition between long and short videos in sports copyright has become fierce. Since March this year, Kuaishou has successively won the copyrights of the CBA, the Tokyo Olympics, the Beijing Winter Olympics and the America’s Cup. ByteDance has also officially announced that it has won the all media copyrights of the America’s Cup. In this European Cup, the copyright owner Xinying Sports made it clear that it would not sell short video rights separately, making it difficult to find the content of this European Cup on the short video platform. Short video platforms are coming fiercely, and long video platforms are tightly guarded. The battle between long and short videos of sports content may change the communication ecology of the sports industry in the next few years.
Extending to the broader sports market, the downstream sports derivative industries in the industrial chain have also rebounded. The European Cup has had a significant positive effect on the recovery of the entire sports economy. Domestic head sporting goods companies have regained the favor of capital. Anta Sports’ stock price has soared 61.33% in half a year , Li Ning’s stock price has doubled in half a year, and 361 Degrees’ stock price has tripled in half a year. Ele.me official statistics show that since the start of the European Cup, post-zero takeaway orders in some regions have increased by more than 10% month-on-month, and beer has increased by more than 30%. Overall, the fire of the European Cup has indeed ignited market enthusiasm in the sports industry.
The sports industry with dark ills
However, the European Cup is only a short-term stimulant to boost the market. Just relying on a few international matches can the industry that has lost blood fill up the previous economic losses? It’s not that simple.
From the market point of view, the complete shutdown caused by the epidemic has dealt a serious blow to sports activities that rely on offline interaction. The supply-side crisis is that companies that have not survived the epidemic can hardly make a comeback. The sports industry often requires a large area of stadiums and a large number of professional sports facilities. Related companies often have heavier assets. Many companies have fallen into a critical situation of cash flow shortage under the situation of consumption vacuum in the epidemic, and it is difficult to recover from the situation of major blood loss. Quickly return to profitability.
The plight of the demand side is that the epidemic affected to some extent the mass consumer enthusiasm. Compared with developed countries in Europe and the United States, domestic consumers have lower enthusiasm for sports services. After a long period of lack of interaction, whether sports services can maintain contact with consumers and whether the sports atmosphere can be maintained and promoted is a major issue. .
From the marketing point of view, the scale of Chinese companies participating in the marketing of the 2020 European Cup through media platforms is difficult to compare with previous competitions. The influence of sports IP has declined, and the commercial value has also been compromised. The objective reason is that domestic broadcasting copyrights are scattered, and copyright barriers have been formed among various platforms, which greatly distracted viewers’ attention. It is difficult for the whole network to “get out of the circle” to form a discussion boom. Compared with previous sessions, the influence and discussion of this European Cup are slightly weaker. The subjective reason comes from advertisers acting more cautiously in an uncertain market atmosphere. The shadow of the epidemic is always lingering, and no one knows whether there will be an emergency before the event ends smoothly . The marketing plan of an enterprise usually takes a long period of time. When the specific impact of the epidemic on sports events cannot be determined, the budget for sports marketing has to be greatly reduced.
From the perspective of the industrial chain, although most of the companies in the links have gradually begun to operate normally, it is still difficult to return to the pre-epidemic level of subdivided tracks such as sports tourism that extend farther and have a wider market scope. Due to the restrictions on overseas travel in most countries, coupled with the control of attendance by sports events, the fast-growing and highly anticipated sports tourism before the epidemic has not resumed normal operations, and some offline sports services are also restricted. As far as they are concerned, stop-loss profits are still far away.
The next stop in the sports industry
It must be admitted that the epidemic has become a protracted global war. For the sports industry, in the long war in head-on not the best choice, in order to develop more Dolly profit space, next to the sports industry to embrace the cloud.
Technological upgrading is the top priority for the sports industry. With the blessing of technology, the current sports industry pays more attention to breaking spatial boundaries and establishing cloud connections with consumers to cope with or isolate the persistent space. For example, the TV broadcast of this European Cup for the first time uses VR technology. We may imagine that future large-scale events will not only be able to flexibly respond to unexpected situations where the audience cannot be present, but also can truly enter everyone’s home and become more accessible. Entertainment experience. Some virtual sports game manufacturers have also begun to attach importance to the functional development of the user community. More and more sports equipment can view the sports data of friends through the Internet, invite each other to exercise together , build a sports community atmosphere online, and expand the sports scene to Any corner.
In addition, the Internet + sports business model has developed rapidly and has gradually entered a formal development stage. During the epidemic, major sports brands have developed online businesses for self-help. Internet sports brands have become a rare highlight in the industry’s cold winter. For example, sports technology company Keep, home technology fitness brand FITURE, and home walking machine brand Golden Smith all took advantage during the epidemic. A large amount of financing was placed. At the same time, the epidemic has promoted consumers’ consumption habits for products such as online fitness and smart devices. McCann tin The report notes that after the epidemic online fitness subscriber growth of 23%, intends to continue online fitness users was 60%, Internet + Sport mode is becoming a new trend in contemporary life.
Finally, the emerging sports industry represented by e-sports has ushered in major development benefits. As a virtual variant of live events, e-sports may become a brand new project in the sports ecosystem. From the perspective of commercial value, e-sports is the fastest-growing sports event during the epidemic and has become the hottest growth point in the sports industry. In 2020, the market size of my country’s e-sports industry has reached 136.557 billion yuan, a year-on-year increase of 44.16% compared to 2019, and the number of users is 488 million, an increase of 43 million people compared to 2019. From the perspective of industrial development, e-sports has a low threshold and a strong interest. Through it, it can attract more sports audiences and expand the scope of participation in sports activities, so that it can make full use of the connection with games to provide innovative sports and promote it in the opposite direction. Development and improvement of live events.
The world of martial arts cannot be broken or established. Although the sports industry has been hit hard by the epidemic, it has also exposed structural weaknesses in the entire industry. The market has never shrunk, but it has lost its close connection with the industry during the special epidemic period. Therefore, what the sports industry needs to do now is to expand the inherent boundaries of sports, explore more business opportunities, and change directions. A new growth track may be in sight.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/the-european-cup-is-over-did-the-companies-that-lost-money-last-year-make-it-back/
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