The looming global threat due to the rapidly spreading Coronavirus pandemic will result in an estimated $2 billion shortfall the Asia-Pacific Sports Media revenue estimated for 2020 before the COVID-19 took the world in its grip.
Research and Analysis agency Media Partners Asia (MPS) has revised its estimates for sports media revenues in the Asia Pacific margin due to the unprecedented impact of the Coronavirus menace.
The Asia Pacific Sports Media 2020 report by MPA in the first week of March had estimated a $5.7 billion sports-related media revenue generation in 11 key markets in the region for 2020, compared to a $6.0 billion rights investment by broadcasters and OTT platforms.
The report, however, gives some hope. Up to 35-40% of this loss will be recovered in 2021 when the Tokyo Olympics and the Euro 2020 are expected to be held. In some instances, the growth of D2C SVOD sports-based offerings with an ability to subscribe month-on-month could prove important for the sports ecosystem in key markets.
The pandemic is resulting in cancellation and suspension of major sports events worldwide, including the deferment of the Tokyo 2020 Olympic Games to the next summer.
Even if the sports events are rescheduled after normalcy returns, the global economic impact will drive the sponsors and other key constituents in the sports eco system away. Sponsors will find it hard to fulfil their commitments.
MPA, in its base analysis, had projected Asia-Pacific Sports Media revenue to drop by $2.0 billion in 2020 versus MPA’s previous estimates pre COVID-19. The research company noted that the sports calendar for 2020 is facing significant disruption after multiple cancellations and postponements.
Disruption caused by Coronavirus pandemic across the sports ecosystem is unique and is the first of its kind since the emergence of modern sports media contracts.
MPA, in wake of the feared impact analysis of how COVID-19 will affect sports media dynamics in 2020 and 2021, has consequently revised down revenue forecasts.
MPA expects a 35% drop in sports-related media revenue generation in Asia-Pacific for the 2020 calendar year, effectively implying a US$2.0 billion loss in revenue. This analysis assumes that most of the international properties in basketball, motorsport, tennis, golf, and rugby will have a truncated season while European football will likely complete its season.