DENVER-The National Basketball Association wants to be on the forefront of technology, be it the Internet, High-Definition TV or satellite radio. And to be on the cutting edge, the NBA also recognizes it needs a wireless presence.
“It’s important … that the NBA be ahead in terms of technology,” said Brenda Spoonemore, the NBA’s senior vice president of interactive services. Spoonemore oversees the league’s Internet, wireless and customer relationship management database efforts. “We need to be there (in wireless).”
The NBA represents a major opportunity for wireless, and the reverse is also true. For the NBA, wireless is a new way to touch and interact with fans. For wireless, the NBA offers a ready-made stable of content and a willing fan base. Indeed, the possibilities for NBA-branded content on mobile phones are extensive, and could employ all sorts of new wireless technologies. NBA fans could interact with live TV broadcasts through text messaging, access information on their favorite teams via a WAP page, and download game highlights to a video-capable phone. Interestingly, all of these applications are already available.
“We’re looking at the portfolio of wireless,” Spoonemore said. “Our goal is ubiquity and convenience for our fans.”
The NBA announced its “NBA Unwired” initiative in November. Although the league had already signed deals with Nokia Corp. and Verizon Wireless for various content and marketing deals, the Unwired program marked the formation of the league’s comprehensive wireless strategy. Among other applications, the NBA now offers Most Valuable Player text voting to Verizon Wireless customers, video highlight downloads through select Nokia phones, and gaming, ringtone and information applications from THQ Wireless and Jamdat Mobile.
The NBA’s wireless efforts could also serve as an indication of where the industry may be headed. Those in wireless look to third-generation networks and wireless data as the next sources of revenue beyond voice. And for wireless data applications and services to be successful, most agree they need to be tied to recognized brands and familiar content. For the NBA specifically, sports information and content appears especially suited for the immediate, up-to-the-second nature of wireless and wireless users. Thus, marketing and content partnerships with brands like the NBA may grow in importance as the wireless data market hits the mainstream.
As an example, the director of programming for Qualcomm Inc.’s MediaFlo mobile TV service was in attendance at the NBA’s recent Tech Summit. The annual event, held in conjunction with the recent All-Star game in Denver, brings together broadcast, Internet and technology executives for a series of roundtable discussions. Michael Boyd, director of Qualcomm’s MediaFlo programming, declined to discuss his presence at the event. Qualcomm has promised to launch a nationwide mobile TV service in the United States by 2006.
The NBA is probing wireless from a variety of angles, Spoonemore said. The league’s involvement in wireless began with marketing and content relationships with Nokia and Verizon Wireless, partnerships that were mainly an extension of the companies’ NBA advertising. However, as the wireless medium gained more prominence, the NBA decided it needed to expand its efforts and target users beyond those with Verizon service or Nokia devices. Consequently, the league issued a request for proposal for wireless content development. Spoonemore said a variety of wireless content companies applied for the position, and the NBA ultimately awarded the deal to THQ Wireless.
Jeff Nuzzi, director of THQ Wireless’ global marketing, described the current situation in wireless as a “land grab.” He said wireless players like THQ Wireless are fiercely battling each other for the rights to major brands like the NBA. Such agreements typically include an upfront payment to the brand and then a revenue-sharing agreement on subsequent content sales.
“We want to be in business with several smart partners,” NBA’s Spoonemore said.
Under its wireless strategy, Spoonemore said the league wants to form a few close partnerships to get involved in the market. She said the NBA hopes to expand those partnerships as it becomes necessary, rather than sign agreements with new developers for each new application. Spoonemore acknowledged that wireless players have to get in the door early with brands like the NBA in order to score licensing deals.
“The structure that we have right now is working really well for us,” she said. “The goal is to react to the marketplace.”
As part of the NBA’s response to wireless, the company is also expanding its international efforts. Already, half of the traffic on the NBA’s Web site comes from international Internet surfers, and fully 20 percent of that is from China. The league addressed the importance of the Chinese market last year by holding two preseason games there, including a game featuring the Houston Rockets’ Yao Ming. As for wireless, the NBA teamed with Chinese Internet company Sohu.com Inc. to develop wireless applications for the burgeoning wireless market in China.
“Our China business is just exploding,” Spoonemore said.
Wireless is a key area for the NBA, Spoonemore said, in the league’s efforts to stay ahead of the cutting edge of technology. Wireless gives everyone who has a phone “the chance to interact.”
