Stephen Master, Vice President, Nielsen Sports

SUMMARY: 2009 was a record-breaking year for U.S. sports television, featuring the most-viewed Super Bowl ever, the most-viewed Stanley Cup in seven years, and the most-viewed World Series in five years. What trends ignited this growth and what’s in store for 2010?

Unlike many sectors, U.S. sports television had a banner year in 2009. Viewership of major events hit record levels: Super Bowl XLIII was the most-viewed in history; the Stanley Cup was the most-viewed in seven years, followed by the World Series (most in five years).

Driving this growth were technology advances such as satellite television—now in 28.9% of U.S. homes—which spurred an 8% higher rating for network sporting events in satellite TV homes in 2009 and High Definition TV—in 33% of U.S. homes—which prompted network sporting events to receive 21% higher ratings in HD. And, of course, the Internet and sports web sites, which increased 19% from October 2008, provide fans with a virtual sports bar for online conversation. So what are the trends driving the data?

1. The Internet: Sports sites and streaming events tend to complement sports viewing rather than cannibalize it. Blogs and social networks provide fans a virtual “sports bar” for online conversation. The Nielsen TV-Internet convergence panel found that viewers visit social networks more than sports websites while watching games. But thanks in part to fantasy leagues, sports websites are still drawing big numbers: more than 88 million Americans checked out a sports site in October of 2009—that’s up 19% from October 2008.
2. Satellite TV: Satellite television providers are now in 28.9% of U.S. TV homes, and offer robust sports tiers, including league-run networks which keep fans engaged during the off-season. Take note: Homes with satellite TV score higher network ratings (8% more) for sports programming than those without satellite.
3. HDTV: It’s no secret that sports look great in High Definition, and as HD penetration continues to grow (in May 2009 HD sets were in 33% of U.S. homes), sports viewing is poised to grow in tandem. This year network sporting events received 21% higher ratings in HD.

Picking Winners for 2010? Bet on Globalization
2010 will feature two major international sporting events: the Winter Olympics in Vancouver, BC, and the World Cup in South Africa. More than a year after the Beijing Olympics attracted 4.7 billion global viewers (211 million in the U.S.), it will be interesting to see the expanded role social media outlets will play in international media coverage and fan engagement.

Goal-den Opportunities
Globalization also presents sports properties with opportunities to grow their fan base: In 2009, the NFL televised a regular season game in London; the NHL dropped the puck in Scandinavia; and the NBA played preseason games in Europe, Asia, and Mexico. The more these leagues extend into new markets, the greater the global reach for their sponsors and advertising partners.

Meanwhile, the already global game of soccer, er, football, for most of the world, is poised again to drive towards its final frontier: the United States. On top of the stateside MLS, the British Premier League and the Champions League are now available to watch in the U.S. With the American team qualifying for the World Cup, soccer seems poised once again to make a run at mainstream American popularity. Lower ticket prices, a futbol-loving Hispanic population that’s growing in the U.S., and a young generation raised on soccer, are other trends that bode well for the sport.

On Defense: Long-Term Threats
More than half of sports fans who identify themselves as “avid fans” reported cutting back on attending sporting events due to the economy. As consumers scrutinize their discretionary income, it remains to be seen if consumer and fan confidence will come back to the stadiums once economic fears have subsided. Nielsen studies have shown that consumers are staying home more, not surprising considering the investment many sports fans are making in their HDTVs and satellite packages.

In the near future, the major sports leagues are also looking with some concern at the next generation of fans. Will they be filling those seats of all these shiny new arenas? According to Nielsen’s How Teens Use Media, teenagers actually under-index when it comes to visiting sports sites on their mobile phones compared to the rest of the population. Will that translate into a more muted engagement going forward with TV viewing, online participation, and live game attendance? Sports franchises are on the edge of their seats, wondering how the first generation born in the digital age will impact the sports world in the next inning of the digital revolution.

2010 U.S. Outlook

Part 1: Cross Media

• Big Screen, Smart Screen, Small Screen: Top 5 Cross-Media Trends
• You Can Take It With You: Future Trends In Media

---

Part 2: Consumer

• Winner Winner Chicken Dinner – Top 5 Consumer Goods Spending Trends
• Innovation Creates Opportunities for CPG Growth
• Aging Puts a Wrinkle in U.S. Marketplace

---

Part 3: Advertising

• Talking Back – Top Five Advertising Trends
• Get Ready for the Audience-Centric Web
• What Would John Wanamaker Say Today?

---

Part 4: Entertainment

• There’s No Business Like Show Business – Top Five Entertainment Trends
• Game On – The World is Watching More Than Ever
• Video Games in Play

The Nielsen Company looked back at the four Stanley Cup Finals match-ups that have gone the full seven games since 2000 and in each case, Game 7 was a ratings windfall. For example, games one through six of the 2006 finals between Edmonton and Carolina averaged 2.4 million viewers. Game 7, however, more than doubled that figure with 5.3 million viewers.

In 2003, when the New Jersey Devils finished off the Anaheim Ducks, Game 7 was watched by 7.2 million U.S. viewers on ABC. Not only did the game attract 140% more viewers than the average of the previous six games, but it was also (and still is) the most-watched Stanley Cup Finals game since at least 1992.

The “Game 7″ effect isn’t just limited to the NHL. When Detroit and San Antonio took the NBA Finals to the limit in 2005, Game 7 was watched by 65% more viewers than the series average to date. And in the eight MLB World Series or LCS matchups to go the full seven games, since 2000, Game 7 viewership overshadowed the rest of the series’ averages each time by anywhere from 74% to 94%.

-The most-watched global event ever (2008 Beijing Summer Olympics: 4.7 billion viewers)

-The most-watched Super Bowl ever (Giants-Patriots, Super Bowl XLII: 97.5 million viewers)

-The most-watched cable broadcast of all time (Cowboys-Eagles, Monday Night Football: 18.6 million viewers)

-The most-watched cable golf event of all time (Tiger vs. Rocco, U.S. Open Playoff: 4.8 million viewers)

-The most-watched cable baseball game ever (Red Sox-Rays, ALCS Game 7: 13.4 million viewers)

-The most-watched NBA Finals in five years (Celtics-Lakers, NBA Championship Series average: 14.9 million viewers)

-The most-watched NHL regular season game in nine years; most-watched finals in five years (Winter Classic: 2.5 million viewers; Stanley Cup, Penguins–Red Wings average: 4.5 million viewers)

-The most-watched Wimbledon final in eight years (Federer-Nadal: 5.2 million viewers)

The surge in viewership could be attributed to the dramatic storylines behind these games and events, but Nielsen’s analysis shows that new technology is enhancing the sports fan’s experience:

-Ratings for sports events are 20% higher in homes with high-definition TV sets vs. total U.S.

-75 million people visited sports websites in October 2008

-11.6 million unique users logged more than 1.2 billion minutes on fantasy sports sites in 2008

-10.6 million U.S. mobile subscribers accessed sports content via the mobile Web in August 2008

View the full report.

Read coverage of Nielsen’s findings in USA Today.

Take our poll.