8.11.2003 EN L 291/37Official Journal of the European Union
to acquire football rights (
36
). Broadcasters consider that
football enables them to create a brand image without
which their channels would not be able to develop. The
availability of alternative programming does not alter
their interest in or demand for broadcasting rights of
football events (
37
).
(68) One of the particular values of football for broadcasters
in brand building is its regularity. Unlike many other
sport events, football is characterised by national and
European tournaments which are played regularly
throughout most of the year. The UEFA Champions
League is one of the most recognised among those
tournaments with a strongly developed own brand.
Football, unlike other sports, therefore allows broad-
casters to achieve high viewing figures on a regular,
sustained and continuous basis if they can get access to
these rights. Although there are league events for
other sports and whilst such sports may produce large
audience figures, they do not achieve the same continued
viewing figures as football. This is of significant value
for the branding of a channel, since it can only be
achieved over a sustained period.
(69) The quest for a brand image is so strong that broadcasters
in certain circumstances do not mind losing money on
individual programmes if they are of such a quality
that they can pull viewers to the channel. For some
broadcasters football could be considered as a kind of
loss leader, because they may be willing to invest more
(
36
) RTL considers in its answer of 15 November 1999 to the
Commission’s request for information that ‘The actual prices for
football rights are so high that (...) they cannot be covered by the
revenues generated with football programming.’ If such rights
are still acquired anyway, it is reasonable to think that this is
because of branding purposes.
(
37
) NOS in its reply of 16 November 1999 to the Commission’s
request for information of 21 September 1999 considers that:
‘Only to a limited extent NOS’ interest in football is affected by
the availability of TV rights for other sports (...) because it is the
No 1 sports in the Netherlands (...) football plays a key role in
NOS’ sports programming (...) providing other sports broadcasts
by NOS with an audience they would not normally attract.’ NOS
also states that: ‘(...) football is a unique product in “a league of
its own”. No other sport has audience figures/market share that
come close to those of football (...) enhance the image of NOS.’
ONdigital in its reply of 23 November 1999 to the Commission’s
request for information of 20 September 1999: ‘Our interest in
football is not affected by the availability of other film, series,
game shows or other content again, because of the unique
market position football holds in the United Kingdom and partly
because football is likely to appeal to a different market segment.’
Richard Russell Associates have described sport as a ‘driver’ for
BSkyB’s 10-year old business in ‘Sports Television: The ever
changing face’, 16 February 1999, pp. 10 and 12.
in acquiring the TV rights than they can, strictly
speaking, hope to recuperate looking at the possible
revenues that they can make from the individual broad-
casts in isolation(
38
).
(70) These features of the TV rights of football have the
consequence that the prices which broadcasters are
willing to pay for those rights exceed all other prices,
including events such as Formula One (
39
). ONdigital
states that ‘Football rights are the most expensive of any
sport (...)’ (
40
) The total expenditure on sports as a
whole has recently seen substantial increases. Football
accounted for the single highest proportion of TV
channels’ total sports expenditure (
41
). The European
average was 44,6 % in 1998 (
42
). The high percentage
dedicated to the acquisition of TV rights of football
represents the importance which broadcasters attach to
football compared to the acquisition of the broadcasting
rights to other sporting events.
4.1.3.2. A p a r t i c u l a r a u d i e n c e
(71) In order to attract the widest possible audiences, broad-
casters will seek to have a balanced schedule with a
range of different programmes. Catering to a wide
audience is part of the public service remit for public
service broadcasters. Pay-TV broadcasters wish to cater
to the tastes of as many people as possible in order to
sell subscriptions. For commercial free-TV broadcasters
(
38
) In its reply of 26 November1999 to the Commission’s request for
information of 21 September 1999 Vlaamse Media Maatschappij
states that ‘Actually, acquisition of TV rights for sport (especially
football) is not a profitable operation as such (...). However...the
branding of VMM’s channels will be the decisive parameter for
deciding the acquisition of TV rights for football games.’ For
instance ONdigital, which has acquired the pay-TV rights to the
UEFA Champions League and provided these rights on a
promotional basis free to subscribers, states in its reply of
23 November 1999 to the Commission’s request for information
of 20 September 1999 that ‘In the early stages of platform
growth building the subscriber base is considered to be more
important than pure profit.’ Further in its reply ONdigital states
that ‘ONdigital believes that the brand image and value attached
to its consumer offer is directly affected by the sports content
available on the platform.’
(
39
) Kagan Euro TV Sports, 26 July 1996.
(
40
) ONdigital’s reply of 23 November 1999.
(
41
) According to Kagan’s ‘European media sports rights’, April 1999,
football took the major share of the total rights expenditure in
most Member States in 1998 (the share of the nearest rival is in
brackets): Austria 32,4 % (skiing 11,3 %); Belgium 53,6 %
(cycling 9,5 %); Denmark 45,4 % (handball 13,2 %); Finland
32,1 % (ice hockey 16,9 %); France 37,8 % (motor racing 9,3 %);
Germany 42 % (tennis 6,6 %); Greece 43,3 % (basketball 41,4 %);
Ireland 47 % (horse racing 13,1 %); Italy 65,2 % (motor racing
7,4 %); Netherlands 54,5 % (motor racing 9,3 %); Portugal 44,3 %
(motor racing 11,8 %); Spain 51,6 % (basketball 10,1 %); Sweden
39,5 % (ice hockey 19,1 %); United Kingdom 51,6 % (rugby
11,7 %).
(
42
) Kagan’s ‘European media sports rights’ April 1999.