Value of Asia-Pacific sports media market 'to drop by $2bn'
The sports media market in the Asia-Pacific region is set for a $2 billion drop in value this year as a result of the coronavirus pandemic, according to a study by Media Partners Asia, the research and analysis provider.
The virus has had a major impact on the global sports calendar as many events have been cancelled or postponed, the latest, and most high-profile example being the Tokyo 2020 Olympic Games, which will now be in 2021.
MPA conducted a base case study assessing the financial effects of a disrupted calendar and found it will have significant implications for the Asia-Pacific sports ecosystem.
The company recently released an Asia-Pacific Sports Media 2020 report in which it estimated that sports media revenue in the region would grow to $5.7 billion in 11 key markets, as well as a $6 billion investment in rights by broadcasters and over-the-top streaming platforms.
However, MPA is now forecasting a 35-per-cent fall, equivalent to a $2 billion loss in revenue, in the sports media market in Asia-Pacific for this calendar year because of the impact of the virus.
The study predicts that sports such as basketball, tennis, motorsport, golf and rugby will have shorted seasons, while European soccer competitions are likely to eventually complete their respective campaigns.
In the region, MPA expects the likes of cricket’s Indian Premier League, Australian rules football's AFL, and Australia's National Rugby League will also have truncated seasons.
However, MPA projects that a portion of this year’s loss can be recouped in 2021 with the Olympics and soccer’s postponed European Championships.
The research company also expects the rise of video-on-demand subscription-based sports services to have a major role to play in the sporting landscape in key Asia-Pacific markets.