Following on from what I said last week, James Warburton was downplaying the commercial revenue from the Matildas ratings:
Warburton on Wednesday said the broadcast of Matildas’ games had been “limited in terms of commerciality”. Any uptick in Seven’s profits, according to Warburton, was largely limited to cross-promotion of its other programs to lift audience numbers and advertising yields.
“There are no ads during play, during extra time, and during penalty shootouts,” he said, with Saturday’s quarter-final against France commercial-free for the more than 90 minutes of coverage after the half-time break, despite its audience of near 5 million.
If you can't show ads in the game, then your FTA appeal is limited.
The network’s ability to capitalise on the Matildas’ success was scotched by rules imposed by FIFA, which obliged Seven to sell ad space only to the footballing body’s eight chosen partners, as well as two more from Football Australia.
Package prices were fixed before the tournament, preventing Seven from further cashing in on the stellar run of the Matildas and the subsequent swell in public support.
The conditions imposed by FIFA have instead been a boon for the sporting body’s advertising partners – including Adidas, Hyundai, Rexona, Qantas, Cadbury, Coca-Cola, Kia, McDonald’s, Visa and Xero – with 11.9 million broadcast viewers, plus the 2.3 million streaming viewers Seven says the tournament has reached to date.
I also heard that 7 were turning buyers away as all the in-game ad slots were pre-sold.
Interestingly, seems like Warburton was trying to deflect from 7's decline revenue by attacking Paramount.
Warburton’s comments drew a strong rebuke from Paramount. “The comments made by a competitor this morning are nothing more than a deflection and reflects a business strategy that fails to recognise how media companies are diversifying both domestically and globally,” a Paramount spokesperson said.
“Paramount is a diversified global business with a strong domestic footprint and audience base across linear TV, multi-channels, broadcast video on demand and Paramount+ streaming.”
Whilst Paramount is the 3rd place runner in Australia so far, don't forget that Paramount Global has a market capitalisation twenty times bigger than Seven.
Seven West Media boss James Warburton has toned down expectations of how much the network has benefited from the success of the Matildas.
www.smh.com.au