BY OLIVIER SUARD

The broadcast industry is in a state of rapid change . If broadcasters want to keep up , they must focus on adapting both their operations and offerings , and this extends to their value chain . However , this is not so easy to carry out — quite the opposite in fact . It can be hard

to know what direction to turn to in an industry that is always undergoing such profound changes .

In an environment where the competition for viewers is intense , live sports is considered a sure bet , something that is compelling and for which the high resolution of TV screens is eminently better suited than other devices .

At the high end , for example , the English Premier League football or the Summer and Winter Games , huge sums of money are invested by broadcasters to make the viewing more captivating . That includes seeking out new technologies such as HD and 4K / Ultra HD ( UHD ) to hook viewers . Sure , mistakes happen ( remember 3D ?), but sports broadcasting provides the catalyst for trying out new technologies that eventually benefits all parts of broadcasting .

A good example of this is the use of IP in production , which is essential in keeping costs down

for big events by enabling remote production .

The costs involved in high-end sports mean it has been possible for broadcasters to try out and invest in new technologies , which has benefited more mainstream production — effectively leading the way for other productions , for example , minority sports .

However , something may be afoot with sports broadcasting . Its success comes from exclusivity and the ability to monetise this . Traditionally , the value chain has involved content owners selling the exclusive rights for coverage of the sport to the highest-bidding broadcaster , who in turn charges viewers to watch the sport .

This has typically proved to be lucrative business for both content owners and broadcasters , but we might be about to witness a major disruption in this arrangement .

In recent months , we have seen some interesting developments ,

including cricket returning to the BBC in 2020 , the first time since 1999 . The driver for the move is that audiences for cricket have been falling as a result of being on pay-TV .

This is quite a familiar pattern : when Formula 1 switched to payper-view , reports estimate it lost 25 million viewers . If people do not want to pay for content , they will either stop watching altogether or turn to pirated streaming . By making that content free again will not only increase viewer numbers , but drive long-term interest in the content itself .

Another interesting development is Formula 1 ’ s intention to develop its own over-the-top ( OTT ) platform , which would , in effect , by-pass the broadcasters .

So if sports is to return to freeto-air and sports federation are to launch their own distribution , the traditional broadcast business model could become disrupted ,

and with it the ability of sports broadcasting to always be at the leading edge of technical innovation .

It could also be a lead indicator that the pay-TV revenue models of broadcasters may need to be rethought at some point .

Olivier Suard is VP Marketing , Nevion .