The sports broadcasting industry analysis - Research Paper Example

Task: Sports broadcasting Several factors determine profitability in sports broadcasting including issuance of broadcasting rights, the influence of stakeholders operating within the industry, technological innovations, and the competition of various players within the industry. According to Humphreys & Dennis (57), sport broadcasting is an industry that has witnessed dramatic developments over the past years. These developments are attributable to the adoption of new technologies in sport broadcasting and increase requirement for sports programs.

Advertising Revenue Advertising revenues accounts for the demand for a particular event. For example, football broadcasting accounts for the largest share of revenue in European countries. Highly ranked channels are advantageous over local channels that depend on free provisions to air programs. The channels have a limit for airing programs, a process that influences the overall revenue for a broadcasting company (Humphreys & Dennis 4). Giving a company absolute rights to broadcast events leads to escalations in revenue.

Broadcasters who transmit live programs earn much revenue as opposed to persons transmitting recorded programs (Vogel 3). Recorded programs act as backup for revenue especially when live transmission occurs during odd hours. The right to transmit programs live is determined by the contract issued by a broadcasting company.Affiliate Fees from Cable companies Broadcasting directs has several advantages over broadcasting via cable. Affiliate fees create monopoly in advertising because it gives cable channels the autonomy to increase revenues by charging their affiliates highly.

Moreover, they deny other channels the opportunity to increase their customer base by monopolizing sports broadcasting.Works CitedHumphreys, Brad R., and Dennis R. Howard. The Business of Sports. Westport, CN: Praeger, 2008. Print.Vogel, Harold L. Entertainment Industry Economics: A Guide for Financial Analysis. New York: Cambridge University Press, 2011. Print.