2014 FIFA World Cup Forecast: $4 Billion for Broadcast
Deloitte analyst sees record revenues
June 11, 2014
—An analyst for Deloitte predicts a
record-setting World cup for broadcasters globally. Austin Houlihan,
senior consultant at Deloitte’s Sports Business Group, forecasts a $4 billion haul.
“This Thursday, June 12, will see the
kick-off of the 2014 FIFA World Cup in Brazil. The World Cup is a premium
property for free-to-air broadcasters in particular, due to its ability to
generate high audiences in many territories. For example, in major European
markets, tournament matches typically generate the highest sports audiences in
that particular year. The German audience for the 2010 World Cup semi-final
between Germany and Spain exceeded 30 million viewers, the first time a single
German broadcaster had exceeded an audience of this size,” he said.
“The World Cup’s kick-off times are conducive to driving strong audiences in
areas such as North and South America, Europe, Africa and the Middle East. As a
result, the tournament in Brazil could generate a record global television
audience. The 2010 final—Spain vs. Netherlands—was watched by a cumulative
global audience of 910 million in-home viewers (measured as people watching at
least one minute of coverage), according to FIFA research and if you include
out-of-home viewers (e.g. pubs/clubs) the audience was in excess of 1 billion.
“The World Cup’s ability to generate such audiences means that broadcasters and
sponsors pay premium rights fees to secure rights to broadcast, or be
associated, with the tournament. The 2014 tournament is likely to generate
record high revenues for FIFA, which has forecast broadcast and commercial
revenues of around $4 billion.
“Deloitte predicts that as well as driving record broadcast and sponsorship
revenues, the tournament will help to drive new standards in the quality of
broadcast production. Production innovations include some matches being produced
in ultra-high definition—4k and 8k—and an increased number of cameras and
angles covering matches. The tournament will also cater for the increasing
trend for audiences to view content through mobile devices, with greater
numbers of viewers being able to access match footage—live, highlights, video
on demand, clips—and associated content through their tablets and mobiles.”
“World Cup Set to Win U.S. Audience
, June 10, 2014.