Official Blog

Posts tagged “Fox

DirectTV to Pull The Plug on Viacom (Updated 7-11-12)

Viacom and Direct TV in Dispute

(Update – As of this morning Nickelodeon, MTV, VH1, Comedy Central and other cable channels owned by Viacom were taken off of DirecTV’s lineup early Wednesday morning, beginning a channel blackout that has angered viewers across the United States. In total 20 million homes lost access to Viacom’s channels)

DirectTV® subscribers might wake up tomorrow saying “I want my MTV”. DirectTV® and Viacom have been in negotiations and those negotiations came to a halt last night. DirectTV® claims they have made their final offer to Viacom and will be removing Viacom’s 22 channels (MTV, Spike TV, VH1, Comedy Central and Nickelodeon to name a few) at midnight tonight.

At the heart of negotiations is Viacom’s request for a 30% rate increase that would amount to over $1 billion dollars. Because of Viacom’s size they can bundle all of their channels into the negotiations. DirectTV® said, “You should be able to decide which Viacom channels you want and which you don’t.”

Viacom claims that DirectTV® subscribers have made Viacom the most watched programmer and accounted for 20% of all of its viewing. They also claim that they are only paid for 5% of the viewing and the increase is justified.

Wall Street has been talking about Viacom’s value being in decline. Cable and Satellite providers are under attack from streaming videos and Netflix. The ratings decline for networks like MTV and Nickelodeon it is creating a perfect storm for distributors to drop Viacom from its line up. A few years ago this would be unthinkable just based on Nickelodeon. UBS analyst John Janedis recently downgraded his rating on Viacom’s due to concerns related to ongoing ratings weakness. He wrote in his report: “We continue to think the concerns related to Netflix/Amazon viewing are overblown in the near-term, but from a content perspective, our sense is that returning series at MTV are under-performing, which will translate to further make-goods and a drag on ad growth in fiscal year 2013″.

Why is this important to MMA fans? The loss of DirectTV® hurts the expansion plans of Bellator, who is in partnership with Viacom. Partnership really mis-states the relationship. Viacom owns a large chunk of Bellator. Bellator can’t jump ship the way the UFC left Spike, they’re stuck until sold off. Bellator goes where Viacom goes.

Many thought the Viacom deal would allow Bellator to become the second largest American Mixed Martial Arts promotion. Suddenly Viacom itself is in danger of The Judgement by the market. With One FC’s ten year deal with ESPN STAR for Asian distribution and the DirectTV® Viacom deal hanging by a thread we may see One FC take the number two spot in the sport. Thinking that an Asian distribution deal doesn’t threaten Bellator’s North American position would be a mistake. The missing facts are: Victor Cui, CEO and owner of One FC, was at one time a senior director for ESPN STAR, and ESPN STAR is a 50-50 joint project between ESPN and Rupert Murdoch’s News Corp – the single largest media presence in North America, which includes, yes, FOX.


“ABSOLUTELY NO FIREARMS, AMMO, HUNTING OR KNIFE COMPANIES WILL BE PERMITTED AS SPONSORS IN ANY ZUFFA PROMOTED EVENTS.”

The announcement came down this morning, and some will say it’s just “Another way big bad Zuffa is screwing the fighters”. In reality, it won’t be long until there comes a day that no sponsors will be allowed. Why? Mainly because these companies are not “sponsors” per say. They are ambush marketing televised events. The athletes are paid based on the televised exposure not based on the athlete.

Our company has an athlete that is pro-firearm and has an endorsement deal with a small firearms training center. He is paid a monthly salary to endorse the brand and no logo placement is required. This is a true sponsorship to athlete relationship.

MMA is full of great athletes with amazing stories to tell. The UFC is providing them a platform like no one ever has. It is not what you do on that platform, it is what you do with that overall opportunity that matters. How much of the interest generated will you retain?

That is what managers need to be doing for the athletes they work for. They need to build platforms that enable them to sustain revenue and sell value to brands without the UFC exposure. You cannot guarantee the exposure in the UFC but you can guarantee leveraging the relationship and the exposure that may come.

For the most part MMA sponsorships are about logo placement on televised events. The athletes and brands rarely have a connection let alone an activation strategy. Aside from a few pre and post fight mentions there is not much (if any) activation. Even the biggest names depend more on discretionary bonuses than endorsement deals. They are making more because they are at the top. When they begin to descend it will be interesting to see how many actually end up with a brand of their own that they own and can create revenue from. Very few boxers ever converted their brand as an individual and MMA has a long way yet to create an Ali or Foreman.

It is not too late and these changes from Zuffa will only force the issue more. Stop just selling logos on shorts and start selling a brand building experience.


Where Is the Brand Activation for Cain Velasquez and Junior Dos Santos Sponsors?

UFC on Fox Sponsorship Activation Non-Existent Leading Into Their UFC Heavyweight Championship Bout

We keep waiting and waiting but it never comes.  This next weekend marks one of the biggest events in Mixed Martial Arts history and yet there is little to no activation.  Since it is obvious that most of the MMA industry does not seem to understand what that word means, here is a brief description:

“Activation includes events, promotions, retail display, outdoor, digital, CRM (customer relationship management), direct, and other such services.”

Why have these athletes and their agencies missed the boat?  Is it because the UFC  has strict guidelines against any ambush marketing for this Fox debut?  Or have the managers of Dos Santos and Velasquez failed at executing on this tremendous opportunity?Even the brands that have been supporting Cain Velasquez from the start of his career, before his fame and before the championship belt have not made the push to connect their brand to the upcoming event.  Aren’t they hoping that the wider reach will sell more shirts?  Is this not the opportunity of a lifetime for Dethrone?  They invested heavily into Cain and having Cain at the forefront of their marketing long before he was a star.  Shouldn’t they be connecting the dots?I know it is a bad economy.  That excuse only flies here in the United States.  The UFC and Cain’s management have gone to great lengths to sell Cain as a Hispanic fighter (even ignoring the fact that he was born in the US) yet where are the Hispanic brands?  There was no housing bust in Mexico.  As a matter of fact a lot of the money from the housing boom here in the US was sent back to Mexico.  So where are the Mexican brands?

The endemic brands are not taking credit or touting the investment made and their success of that investment and the non-endemic brands that have signed on are not activating leading up to this historical event.  Why not?  What am I missing?  Is this not a dream come true?

Look at how well Anderson Silva is doing in his home country of Brazil.  He is landing marquee deals with Nike and Burger King.  Junior is a very likable and marketable guy, especially in Brazil.  Both Mexico and Brazil would be ecstatic to have their Countrymen as the reigning UFC Champion.  Yet it appears that nothing is happening.  If it is happening and the activation is coming post the event, then that is just a recipe for disaster.

We are never going to attract the NASCAR type of sponsors if what we call marketing is ironing a decal on a pair of shorts.  Here at Ingrained Media we have brought in main stream electronic companies, main stream boating companies, large auto manufacturers, drink companies, huge musical talent and more.  We have brought them into the sport of Mixed Martial Arts.  Provided them with activation and total marketing solutions.  All of these companies expected activation and marketing solutions that went above and beyond logo placement.  That is why we have talent on the preliminary cards getting bigger name sponsorship deals then most of the main card talent.

MMA Athletes are not commodities and these opportunities that are being created by others (mainly Zuffa) can be life changing events.  What does it matter if you are fighting for the UFC Heavyweight Belt, if the guy you beat is busy counting his cash, paying off his homes (yes homes) and cars?  What is the actual goal?  To be a World Champion or to be able to support your family and not be in the struggle?  I would rather have my talent be rich than famous.  The sad part of the UFC on Fox event is that you could actually have both.  These managers or agents had an opportunity to change the lives of their fighters, open flood gates for their talent, and the future of the sport. They have not done that and I guess I just do not understand why.

Jason Genet
UPDATED 11-18-2011 – The UFC on Fox has came and gone.  I wanted to update my post a bit to reflect what we saw in the way of sponsorships.
Cain- Cain had a lot of the same sponsors as his previous fight.  Milwaukee Tools, Oak Grove, Dethrone, MicroTech, BSN, LUGZ and a few others.  These sponsors are feeling the pinch of not taking advantage of the opportunity.  There will always be a loser so that is why activation is so important.  Not only will there always be a loser but sometimes the fights are so boring that both fighters come out as losers.  These sponsors had months to promote Cain and keep him active with the Brand.  That is especially true for an athlete that is off due to injuries.  LUGZ who is a Urban shoe company has been sponsoring Cain and other MMA fighters for many years.  They were the only Brand with visible pre-fight activation.
JDS- Junio had Gillette from Brazil.  Gillette is a long term Zuffa sponsor and I am not sure if the two are tied together.  Most brands like Nike or Gillette have international divisions that usually run somewhat independent from the US Brand.  That is likely why we did not see any activation from Gillette here in the US.  This was likely the Brazil division and I am sure they had the activation going in Brazil as they are a major Brand.  Actually it appears that 100% of Juniors sponsors were Brazilian based companies.  In the end it seems like a smart move for a guy who is a hero in his home country and n0t to mention the 22 million viewers that tuned in to watch the fight.
Juniors camp did a great job targeting a lucrative and virtually untapped market.
FOX TV Rating Notes:

- If you combine the FOX and FOX Deportes telecasts (one in Spanish, one in English), it would have received close to a 3.5 rating with 6.2 million viewers and a peak of 8.8 million and a M18-34 rating of 4.7. It is believed a peak close to 9 million was achieved combining both.

- The 4.3 rating in Males 18-34 beat every college football game this season except the LSU vs Alabama game on CBS.

- The 4.3 rating in Males 18-34 beat 65% of the playoff and World Series baseball games this season on FOX.

- The 4.3 rating in Males 18-34 was the third highest rated television show of the year for FOX Deportes.

- The show drew 1.7 million women over the age of 18.

- The median age of viewers for the telecast was 35 years old.

- The 5.7 million viewers was the most watched fight in broadcast on US television since HBO’s Lennox Lewis vs Vitali Klitschko back in 2003

- UFC programming delivered a total of 6.7 million impressions across all FSMG television networks.

- The peak of 8.8 million lasted as long as the fight did, which was 1 minute (fight started at 9:40 pm).

- By 9:45 pm, the viewership had dropped to 5.9 million. Kimbo Slice vs James Thompson peaked at 6.51 million and lasted for 10 minutes and 38 seconds. (Sports Illustrated) … about 25% of the audience had left at the end of the main event.

- UFC on FOX began with 5.2 million viewers and dipped as low as 4.4 million before viewership started to climb around 9:36 pm, as the fighters were starting to make their way to the Octogon. (Sports Illustrated)

Brazil Ratings on TV Globo:

- The event peaked at 22M viewers in Brazil, and during the fight (1 minute), it reached a 20 rating and a 52% share (percentage of homes with TV’s). The ratings were above average for a Sunday morning. (Globo)

-Jason Genet


Follow

Get every new post delivered to your Inbox.