David Pillsbury - PowerPoint PPT Presentation

[DRAFT – 27 Oct 2006]

David Pillsbury

President, PGA TOUR Golf Course Properties

• Fan growth converting into growth of game
• Update on PGA TOUR fan growth initiatives
• Connecting PGA TOUR initiatives and industry initiatives to maximize number of fans and players

• Increase participation
• Increase rounds of golf
• Fan base expansion

Claimed Golf Participation

Low

High

Index vs. US Avg. (US Avg.=100)

Low

Claimed TOUR Viewers

High

Source: MRI, Doublebase 2005

Core Golfers

Golfers

Fans

2007

Current Fan Experience

No clearly-defined season

• New era in golf
• True season with playoffs
• Energized fan base

Broadcast has become fixed and somewhat predictable

• New initiatives
• Broadcast strategies
• HDTV
• Long term TV partnerships

Evolving media platforms

• Ability to consume product in the way fans want it

Inconsistent tournament

experience

• Consistent execution
• Standards & best practices

BuildAwareness

CreateConnection

Trial/Introduction

Golfer/Retention

Golf Operators

Golf Professionals

PGA TOUR

FedExCup

PGA of America

USGA

Other Media

Broadcast

pgatour.com

pga.com

Local events

Play Golf America

Free Lesson Month

Corporate Golf

Link Up to Golf

The First Tee

Local Programs

Executive Women’s Golf

2007

1996

• Expanded six year agreement
• Higher quality telecasts

Primarily network broadcast

424 network hours

• 538 network hours

Golf Channel in 7.4 M homes

• Golf Channel in 70 M homes
• Primetime replay of events

• Less than 2% of tournament play is on TV
• Airs only 25% of competition
• Cannot cover all players/shots
• Fan access to the broadcast not always possible

• Broadband means increased consumption of Internet content

U.S. Broadband Internet Penetration

Internet

Broadband

40 Million US Households

Source: Forrester Research 2005

• Broadband means increased consumption of Internet content
• Media platforms are fragmenting and proliferating

• Time spent on Internet has increased dramatically and is comparable to TV
• Pressure on TV due to increased fragmentation and DVRs
• Additional pressure on traditional media sources

U.S. Percentage Time Spent by Media

Note: Internet = Home + Work

Source: Forrester Research 2005. Online consumers

• Broadband means increased consumption of Internet content
• Media platforms are fragmenting and proliferating
• Media consumption is changing; we are moving to an on-demand content world

U.S. Mobile Phone Users

Millions

Projected

Actual

• 207 million wireless subscribers in US
• 50 billion SMS messages in last 6 months of 2005
• Up 50% YTY
• Total 2005 carrier data revenues of $8.6B
• Up 86%
• Early as a content platform

Source: Yankee Group 2005

• Analogous to Broadband Internet
• Carriers invested $200B to secure licenses and deploy networks
• 3G adoption driven by handset turnover every 18 months
• Carriers focused beyond commodity voice traffic. Video content is critical

U.S. 3G Mobile Users

Source: Yankee Group 2005

• Broadband means increased consumption of Internet content
• Media platforms are fragmenting and proliferating
• Media consumption is changing; we are moving to an on-demand content world
• Consumers expect content whenever, wherever, and however they want it

Broadband Internet

Mobile

• Experiment with alternative distribution
• Adjust strategies and business models
• Future: 3-screen video world

Television

• Nature of Sport
• In-office audience
• Significant play outside telecast window
• Inability to provide full coverage within telecast window
• Significant “fan-favorites”, interest around individual players
• Fans are consuming content from new platforms

There is fan demand for coverage beyond the TV window

pgatour.com

• Largest non-TV audience
• 30% yr-to-yr growth over five years
• 5.1 M unique users
• Over 31 minutes spent per user per month
• Leading instructional golf site
• Access to 28,000 dedicated professionals promoting the game
• Direct link to local instructors

pga.com

Leverage synergies in new media landscape

PGA TOUR Highlights

• First Round
• Second Round
• Third Round
• Final Round

PGA TOUR Interviews

• Tiger Woods
• Ernie Els
• Phil Mickelson

Internet/Broadband

Mobile

Fan Database

• Rich content delivery
• Anytime, anywhere

• Increased mobility
• Interactive

• Direct marketing
• 1:1 fan communication

Sat. Radio/Radio

Non-Standard TV*

On Venue

Video Game

• Information demand
• Multi-platform deployment

• Rapidly growing
• Wired home

• Mobile medium
• Multi-programming formats

• VOD/DVR
• Data channels
• Two-Screen interaction
• HDTV

FAN

• Fan-centric broadcasts
• Contests
• Voting (i.e. American Idol)
• Content links from Broadcast
• Fantasy Golf
• Play Golf America
• The First Tee School Program

BroadcastMedia

pgatour.com

Apply programs in new media environment

Core Golfers

Golfers

Fans

• Leverage energy from FedExCup: “New era in golf”
• Growth opportunity with Baby Boomers
• Reach more fans with richer content through new media
• Maturity of national golf development programs
• “Close loop” for fan experience
• Challenge to Industry Operators and Media:
• Continue to support player development programs
• Build and promote a development calendar
• Create innovative ways to convert fans into golfers