While television is the major outlet for sports coverage, some companies have gotten into film, videos, and CD-ROMs--often to create new markets and generate secondary income.
OWNING THE CONTENT. Some companies are looking to capitalize on what they already own. Here's what Tom Richardson, senior director-publishing at NFL Properties, had to say about his organization's ventures in this area: "We're a major multimedia content holder. We have a large film, video and photo library. We have our statistics, stars and trademarks. We have the game. And we own it all." (1)
PRODUCTION COSTS. Developing a quality product can be expensive. It costs Warren Miller Entertainment approximately $1 million to produce a ski film it will show in theaters. Another company, Oak Creek Films, spent $300,000 producing "Retread," a 90-minute mountain bike film shown in theaters in 1996.
MTV-style effects increase costs. Said Steve Merrill, director of marketing for ABC Video, "Music has become more important, and there's a much faster pace with the quick-cut scenes being used more. And that means productions are more costly." (2)
SPONSORS. Often production companies turn to sponsors to help with production costs, to purchase videos, or both. In 1992, CBS/Fox Video developed a tri-yearly newsletter, "Hot Properties," to promote its library of videos for tie-ins. It was sent to more than 25,000 executives at advertising, promotions, and packaged-goods companies.
"Michael Jordan's Air Time" was launched with a national radio promotion by CBS/Fox Video in February 1993. A few months later Hanes promoted the video with several million dollars' worth of TV support, offering a $ 5 rebate to each customer who bought the video and Hanes underwear.
In 1995, Jewel Food Stores, based in Melrose Park, Illinois, teamed up with PolyGram Video and Coca-Cola to promote a "Chicago Bears' Greatest Moments" tape. The grocery stores advertised the video and offered coupons for $2 off the purchase price.
PRICING. In a 1996 article, CBS/Fox Sports Marketing said its consumer research indicated that the optimum price point for a sports video is $14.98. If it's any higher, some people can't afford it, and if it's much lower, people assume it is of poor quality.
Three years earlier, research done by the Video Dealers Association indicated that consumers believe higher prices are a reflection of quality. Quality is an issue with sports videos because some companies have used good-looking packaging to camouflage poorly produced tapes.
DISTRIBUTION. Production companies have found that sports videos do well in sporting goods stores once they get retailers excited about handling them. Rainbo Sports Shop (a company that distributes skate products and also retails through a mail order catalog and three stores) carries approximately 25 different skating videos. It stocks about 500-1,000 copies of each title every year.
Having sports videos playing in a store is good business. Not only do customers have a chance to check them out before buying them, the videos add to the store's atmosphere. Peter Speek, president of Warren Miller Entertainment, sees it this way: "Nothing matches video's ability to push people over the decision-to-purchase edge. If you keep the videos rolling, customers will get so cranked up, they'll not only grab a tape, they'll buy new skis and clothing along with it." (3)
To help retailers move even more tapes, Warren Miller Entertainment assembled a 90-minute highlight reel (featuring three-minute clips of each of its films) which can play continuously in shops.
RAP Films, another company which produces ski and snowboard films, offers retailers a guarantee buy-back program, allowing them to return unsold tapes.
Other production companies have gone beyond retailers to gain sales. Glenn Ross, who was senior VP of marketing of Republic Pictures, said his company used a variety of tactics to move its instructional sports videos. "We advertise our titles in specialty magazines, sponsor sporting-related events, conduct promotions in sporting stores--anything to gain visibility." (4)
Laurel Canyon, a production company specializing in skating videos, took its tapes to a pro-am skating competition and hired two-time World Figure Skating Championship silver medalist Surya Bonaly to sign autographs.
CELEBRITIES. Using sports celebrities helps to move videos and CD-ROMs. "Celebrities appearing on the box and in the video add credibility to the title, not to mention salability," said Steve Merrill of ABC Video. (5)
Similarly, Paul Andress, whose company, DataTech Software, publishes "The American Golf Guide Presented by Arnold Palmer," said, "I think celebrity involvement is key. Endorsement gives the product instant credibility. It opens some doors at retail and makes you stand out from the crowd." (6)
Others, including Microsoft, seek links with professional organizations such as Major League Baseball and the NBA. "We partner with these groups because we want to be the official supplier of information--and there's no doubt the official aspect has given us a certain authority," said Dave Malcolm, product manager for Microsoft's "Complete Baseball" and "Complete Basketball." (7)
RIGHTS. Some companies have been tripped up by rights issues. Any company planning to include team logos, players' photos, and music will have to obtain the right to use them.
Skating fans, for example, have complained that some of the videos they have purchased do not contain the proper music. Unfortunately, some production companies substitute generic music they can obtain for free instead of paying the licensing fees to feature the music the skaters actually used during their competitions and performances.
In 1994, Video Collection International marketed "The Very Best of Torvill and Dean," a collection of performances by the Olympic gold-medal-winning ice dancers. However, VCI was forced to recall it because Torvill and Dean said the company did not have the right to use music from two of their skating programs. (Another company had an exclusive license to use those two recordings.) Even though it was just a small segment of the tape (six minutes of out of 121 minutes), the court ruled against VCI.