- the looming global epidemic will result in an projected $2 billion deficit in the Asia-Pacific Sports Media revenue forecast for 2020
- The pandemic has lead to the cancellation and suspension of major sporting events around the world
- Disruption in the sports environment caused by the Coronavirus pandemic is unprecedented and is the first of its kind
Owing to the rapidly spreading Coronavirus pandemic, the looming global epidemic will result in a projected $2 billion deficit in the Asia-Pacific Sports Media revenue forecast for 2020 before COVID-19 brings the globe into its grasp.
Research and Analysis firm Media Partners Asia (MPS) has updated its forecasts for Asia Pacific sports media revenues due to the unprecedented effects of the Coronavirus epidemic.
In the first week of March, MPA’s Asia Pacific Sports Media 2020 study projected a $5.7 billion sports-related media revenue generation in the region’s 11 main markets for 2020, compared with a $6.0 billion investment in rights from broadcasters and OTT platforms.
Also Read | List of Sports Events Cancelled Due to COVID-19
Nevertheless, the study does offer some hope. In 2021, when the Tokyo Olympics and Euro 2020 are set to be held. As a result, up to 35-40 per cent of this deficit is expected to be recovered. In some instances, the growth of D2C SVOD sports-based deals with the ability to subscribe month-on-month may prove significant in key markets for the sports ecosystem.
The pandemic has lead to the cancellation and suspension of major sporting events around the world including the postponement of the Tokyo 2020 Olympic Games to the next year.
Coronavirus update, India:
– 57 new cases in last 24 hours
– 621 cases in total
– 42 recovered
– 13 deaths
– 24,254 people tested
– Whole country in lockdown
— Norbert Elekes (@NorbertElekes) March 25, 2020
Even if the sporting events are rescheduled, the global economic effect will push away the sponsors and other primary constituents in the eco-system.
In its baseline study, MPA had expected revenue from Asia-Pacific Sports Media to decline by $2.0 billion in 2020 compared with previous pre-COVID-19 projections from MPA. The research firm indicated that the 2020 sports calendar faced significant uncertainty after numerous cancellations and postponements.
Disruption in the sports environment caused by the Coronavirus pandemic is unprecedented and is the first of its kind since the advent of professional sports media contracts.
MPA has subsequently revised down sales estimates in the wake of the anticipated impact review of how COVID-19 will affect sport media dynamics in 2020 and 2021.
MPA predicts a 35 per cent decrease in Asia-Pacific sports-related media revenue production for the 2020 calendar year, necessarily suggesting a sales loss of US$ 2.0 billion.
This study suggests that most foreign resources would have a truncated season in basketball, motorsport, soccer, golf, and rugby, while European football is expected to complete its season.