Techonology’s Affect on Attendance Essay
“l can watch all the games on my flatterers and buy a sexier of excellent beer for $10. Or I can pay $50+ for tax, $35 for parking (at my own risk), and $10 each for jazz of crummy beer. It’s kind off no brainier for Mel . ” The likelihood of traffic Jams, long lines for overpriced concession, misbehaving fans, and bad weather in comparison to a comfortable couch, high definition TV, surround-sound, large variety of games and channels are all factors that raise my curiosity to analyze how technology affects attendance.
In this analysis, I will examine technology affect on attendance in two f the biggest leagues in American sports, which interest me the most, NFG and NIL. Do these leagues differ from each other in regards to this particular topic? Issue The overall turnout to NFG games has dropped by 4. 5% since 2007. By now, NFG should have realized the declining attendance and implemented various changes to create a superior live experience compared to the at-home experience. On the other hand, Mark Jones believes that the decline in attendance of the 2013-2014 NIL season is a mirage when compared to previous seasons.
The league’s average attendance in 2013-2014 is only down by 0. 9% compared to 2011-2012 season. The evolution of technology has progressed much faster than the added value of the in- game experience. How does the future look regarding the turnout to sporting events in NFG and NIL? Data NIL Attendance of National Hockey League games varies depending on the team. The most attended team is the Chicago Blackjacks with an average attendance at home games of 117. 6%3 of its stadiums capacity. The second most attended team in their home arena is Detroit Red Wings with an average attendance of 110. 4%.
The Los Angels Kings are third with an average of 107. 6%. On the other hand, the least attended team in the NIL is the Dallas Stars with an average of 79. 1%. The second to last attended team is the Phoenix Coyotes with 80. 4, and third to last is the Columbus Blue Jackets with an average attendance of 81. 0%. In the NIL 2011-12 season, the most attended team was, the same as this year’s season, Chicago Blackjacks with an average attendance of 105. 0%4. Least attended was Phoenix Coyotes with a 72. 5% turnout. Ticket price is the main factor in raising attendance and this is proven when comparing the 2011-2012 and 2013-2014 seasons.
In the 2013-2014 season, he average ticket price for a NIL game is $1665. This season’s ticket prices range greatly with Torso’s most expensive tickets at $368 and Phoenix Coyotes cheapest tickets at $76. For the 2011-2012 season, the average ticket price was $576. In other words, the current season’s average price has tripled since 2011-12 season. From this data, we can tell that even though the ticket prices have shot sky-high, as of now most hockey fans are willing to pay the price because attendance has not declined.
Even though the southern-market struggles with attendance, Phoenix and Dallas are honing signs of increased attendance. NFG The attendance of the National Football League games depends on the team, Just as in the NIL. The Dallas Cowboys have the most well attended games with an average attendance of 110. 1%8. The New York Giants are second with a percentage of 97. 1% of its stadiums capacity. Green Bay Packers are the third best-attended team in the NFG with an average of 106. 9%. The worst attended teams in the National Football League are Oakland Raiders, SST. Louis Rams, and Pittsburgh Steelers with 80. %, 87. 2%, and 88. 2% averages respectively. The average price of a ticket to watch a NFG name live was $195 during the 2013 season, and average ticket prices range from $446 per ticket for the Chicago Bears to $109 per ticket for the Cleveland Browns. According to the website statuses, during the 2011 season there was a $300 range in average ticket prices with the New York Giants having the most expensive and the San Francisco ewer’s having the least expensive in the league. The average ticket price for every NFG team was $113. 17, and the median ticket price was $105. 43, which indicates a right skew’s.
The average ticket price increased from $113. 17 to $195 in two seasons. In 2011, Dallas was in first place for fan turnout at their games, with a percentage of 106. 9%. Cincinnati had the worst turnout in the 2011 season with an average of 75. 2%. According to NBC Sports, everything regarding football is growing except for the fan turnout at games. The NFG peaked in attendance in 2007, but has steadily declined since. Will the National Football League react and implement changes to discontinue the crumbling tendency of poor attendance? The people attending games today are reasonably wealthy.
According to Yahoo Sports, the average cost for a family of four to attend a sporting event SSL 1: The average lowest kicked price to attend NIL or NFG game is $78. 38. Multiplying this by four equals $313. 52. Suppose the two adults in the family purchases a beer each, the average cost of two beers at a live event is $14. 56. Average costs of soft drinks at stadiums are $4. 57. Assume each individual of the family will purchase one soft drink; the expense of four soft drinks equals $18. 28. The American tradition of food choice at a game is the Hot Dog. Average price off Hot Dog is $4. 84, or $19. 36 for four.
Mass transits are accessible for fans to arrive to the stadium, but still many people prefer driving. The average parking cost is $27. 5. The total cost of this breakdown for a family of four boils down to $393. 07! The standard American family will not be able to afford to put the adequate amount of money to attend games on a regular basis. Therefore, NFG and NIL attract and focus on bringing out wealthier families, that will certainly purchase tickets and concessions. However, basic economics, bring the prices down to fill the stadium back up, especially in places where the team hasn’t been winning, for example in Oakland, SST.
Louis, and Pittsburgh where the stadiums are not close to be filled. A frustrated fan wrote, “The solution is simple…. Lower the ticket prices. I enjoy nothing more than tailgating with friends and going too game and seeing it in person. However, when I have to pay $500+ to go see a game my comfortable couch, cheap beer and food, HAD TV and the ability to walk 20 feet to the bathroom is the better option… Want to make my experience at the stadium better? Lower the ticket prices, stop charging me $40 to park my car, and don’t make me take out a loan to buy a beer and food at the stadium. I believe this quote sums up the irritation among fans that can no longer attend games because of the sky-high prices. Seen from the teams’ standpoint, managers will try to raise the ticket price as much as possible in order to maximize revenue. As long as fans are willing to pay the cost, the price will not decrease, but rather increase. After eight years of declining in NFG attendance, certain teams that are struggling to fill their stadiums. The same is true for particular NIL teams. The superior technique to attract fans is to lower their ticket prices.
Other revenue streams will gain from bringing out more people to the stadium. Analysis How can teams keep their fans motivated to attend games despite technological advances? DRP. Theodore Levity stated, “In short, the organization must learn to think of itself not as producing goods or services but as buying customers, as doing the things that will make people want to do business with it. ” Accordingly, the leagues and teams have to scrutinize what their fans/attendees needs are in order to maximize revenue when improved technology is becoming more and more accessible.
Further, managers of sporting events need to create added value to tickets to create more incentives for fans to attend games. Contrasting the evolution of the at-home experience versus the stadium experience, the live experience has not improved at the same rate. High definition TV, surround-sound systems, in-game commentators & analysis, channels that allow you to watch multiple games at the same time, and NFG Redone are innovations over the past decade that will be a threat to the NFG and NIL attendance.
Likewise, the “on-couch” experience is significantly cheaper than a trip to the stadium. In the past, the Internet was too slow to stream games, and cell phone game-updates were not available. Today, Direct sells its full season “Sunday Ticket Package” for $300, which includes every game of the week on your TV, cellophane, or tablet. Business analyst Bill Sutton powerfully stated, “The NFG has done an unbelievable Job of making our homes our stadiums. ” The Redskins owner Daniel Snyder replied, “The experience of being with 90,000 other fans is still the best. Sender’s claim might be right, but data proves that stadiums do not succeed in re-creating the comfort and ease of a fan’s living room, and certainly not the inexpensiveness. Teams and games need to create an attitude of “you-have-to-be-there”, which they unfortunately lack at the moment. The Harvard Business School conducted a study of the Olympic games in London, which assessed whether the event focused on generating revenue or emphasizing the importance of attendance and atmosphere. Sydney was called the “Laid-Back Games,” Beijing was unofficially called the “No Fun Games. The managers of the Olympic games in London wanted its legacy to be one of inclusiveness. The issue was to determine whether it was more beneficial to their reputation to exceed ticket revenue targets by $50 million with 70% attendance or lose $50 million with 90% attendance. The Head of Ticketing, Mr.. Paul Williamson, concluded to surpass the ticket sales revenue target and managed to do so. Dan Reed, the NAB Development League President, stated that the 3 main objectives for a franchise are revenue, perception, and atmosphere, in order of importance.
Similarly to the London Olympics, most teams put emphasis on revenue rather than atmosphere. Should NFG and NIL teams focus on lowering ticket prices to attract a full stadium and creating an electric atmosphere, or should the franchises focus on ticket sales and the generate maximum amount of revenue? Solution Some fans prefer the at-home experience because it offers analysis, commentators, and highlights from other games. In order to sell more tickets, there has to be more action on the field besides Just the game. People get bored during halftime and television commercials when the game is suspended.
There have to be more added value to the price people pay to go watch the game. People that have little knowledge about the sport and players may prefer staying at home, because the commentators facilitate understanding while watching the game. To attract the “non-die-hard” fans, commentators may be utilized inside the stadium in the future. Charity nights are a great idea to get fans involved and attracted to a specific game. For example, the teddy bear toss is a popular Christmas season promotion for a few NIL teams.
Fans are encouraged to bring teddy bears to the game and to throw them onto the ice when the home team scores its first goal. Thousands of toys will then be donated as Christmas presents to hospitals and charities. Specific games focused on military recognition or cancer charities are other ways to attract and maximize franchise’s revenue. AD TV is becoming more and more accessible all over the world. For sport fans, this will be an entirely new era in experiencing sports. The depth perception of a AD TV will bring fans closer to the action on the field, and or the NIL and NFG, this technological innovation will be problematic.
Ravens, Cowboys, Jets, Giants, and the Redskins installed giant HAD TV screens in their stadiums to offer live TV and replays inside the stadium. Mobile units and APS that will allow fans to watch replays and highlights from other games have also been invested in to enhance the in-stadium experience. YMCA, Fantasias, and Wi-If are APS and necessities that some teams have presented to their season ticket holders and club members in order for them not to miss any other game’s action while attending a live game.
Apparatuses like these enhance the fans’ experience and will in the future be available for every attendee of a sporting event. Fans have a demand for real-time news, and APS such as those previously stated will add more value to attending games. The Miami Dolphins were the first team to install the APS. Additionally, the same team created a festival like experience on game days by bringing out artists. The Dolphins also opened a Miami Beach style nightclub inside the stadium. Nowadays, it is common for teams to present artists in halftime, and his is a terrific method used to attract fans to a game and usually yields a sell out.
The breakdown above states that if each family of four will purchase concessions accordingly, approximately $80 will be generated. If the least attended team in the NFG, Oakland Raiders, can attract a full stadium of 63,132 instead of their average turnout of 50,444, it is the equivalent of 3,172 additional families attending the game. Theoretically, 3,172 families purchasing concessions for $80 will generate additional revenue of $253,760. If the least attended team in NIL, Dallas Stars, can attract a full stadium of 19,323. There will be possible raise of revenue in concession of $81,200.
To conclude, in order to fill stadiums, franchises have to add more value to the expensive tickets, such as artists, performances, or other events ongoing at halftime. There needs to be something other than the game that draws people to attend, because when AD TV becomes more common, NFG and NIL has to implement changes in order to keep attendance high. Implementing charity and theme nights to bring out a target market are excellent methods for a franchise to both maximize revenue and satisfy fans, and also to assist society with resources and money.
Latest technology should be installed inside the arena to keep up with fans personal apparatuses and to attract fans to games. To fill stadiums and create unique atmosphere, the teams that do not fill up their stadiums should lower ticket prices. On the other hand, teams that do sell out should keep their current ticket prices to maximize revenue. If these modifications are not implemented in the near future, fans will continue to be enticed by their comfortable couches and cheap, readily- available beer, which will have devastating effects for NIL and NFG franchises.