Background of the X games
The term “extreme sports” was first used around the early 1990’s on the West Coast of
the United States.1 An extreme sport describes any sporting activity that is taken to the edge.
The X Games is an extreme sports competition created by Entertainment Sports Programming
Network (ESPN) in 1995, mainly for television broadcasting purposes. 2 The games were
created to provide a new high thrills, dangerous and cutting edge sporting activity for on-site
spectators, television viewers and participants. The X Games offers a great combination of
extreme sports that is thrilling as well as a unique experience shared by its viewers and
participants.
The idea to create this new phenomenon is credited to Ron Semiao, who at the time was
the Director of Programming at ESPN 2.3 The X games competition runs for approximately
three days, where the participants of these extreme sporting games are competing for both cash
and trophy prizes. The first X Games took place in the summer of 1995 in Rhode Island, NY.4
Since 1997 there have been at least two X Games events each year: one covering the winter
sports category and another for the summer months of the year. The Summer and Winter X
Games are held at different locations each year throughout the United States. The 2005 Summer
X Games took place on August 4 through 7 in Los Angeles, California. The event covered
sports such as Skateboarding, Speed Climbing, Sky Surfing, BMX Stunt Biking,
Wakeboarding, Surfing and Moto X Stunt Motorcycling. The 2005 Winter X Games were held
in Snowmass, Colorado on January 29 through February 1. Skiing, Snowboarding, Motorcycle
1
http://sptmgt.tamu.edu/espnx.htm
http://expn.go.com/expn/index?event=wx9
3
http://sptmgt.tamu.edu/espnx.htm
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http://skatelog.com/x-games/1995/
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Stunt competitions and Snowmobiling are the sports offered at the Winter X Games.5 Both the
Summer and Winter X Games consist of approximately 250 competitors, who mostly originate
from the United States. 6 Each year the X Games have grown in popularity thus receiving
increased participation from international countries such as Australia, Belgium, Brazil,
Denmark, France, Canada and Norway. Also to note, eight years ago ESPN branched out and
created Asian and Latin American X Games. With the increasing availability to television and
internet access in the developing countries, extreme sports which used to be considered an
American phenomenon in the early 1990’s, now has been able to extend its reach globally.
The United States has an avid hunger for sports, mainly due to the constant construction
of stadiums, which continually attracts sporting events. Each year cities aggressively bid for the
rights to host sporting events. However, when the X Games first appeared on the market, cities
had to be convinced to host the competition. Nowadays, there are around ten cities each year
that express their interest in hosting the games.7
There are a multitude of benefits a city reaps from hosting a sporting event such as the X
Games. Firstly, there is the enormous amount of money that gets pumped into the host city’s
economy, generated from spectators and sponsors. Moreover, the city enjoys an increased
amount of visitors who purchase local services. A study that was conducted of the 1997 X
Games held in Rhode Island further illustrates this point. The total amount spent by ESPN to
host the event was approximately $7 million dollars, which includes the hotel accommodations
5
http://skatelog.com/x-games/2005/
http://expn.go.com/expn/index?eevent=wx9
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http://sptmgt.tamu.edu/espnx.htm
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for athletes, administrators, officials and volunteers.8 In regards to benefits, due to the constant
media exposure throughout the event, there was an increased tourism rate. ESPN is confident
that the exposure alone is enough to merit the push by cities to host the annual games. In the
end, Rhode Island saw an economic impact of approximately $17 million from hosting the 1997
X Games.9
Why?
The primary objective for the creation of the X Games was to generate profit and
entertainment. These profits came in the form of sponsorships and endorsements, which cover
sport and non-sport activation, good, services and merchandise.
Also known as ‘lifestyle sports’, extreme sports have been around for the past couple of
decades, but their origins can be traced as far back as the counter-culture.10 During the 1960’s,
people were known to use military chutes for leisure jumping.11 More and more popularity is
being gained within this niche sports category.
Institutionalized sports have roots all the way back to the early industrialized society.
Lower class sports served as outlets for aggression for workers as well as social adhesives that
build upon teamwork.12 The engagement in physical activity helped build stronger physiques
for physical laborers. 13 For the upper-class and more privileged, sports served as almost a
8
http://sptmgt.tamu.edu/espnx.htm
http://sptmgt.tamu.edu/espnx.htm
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Appleton
11
ibid
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Hobsbawm
13
ibid
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backdrop upon which business matters were conducted. 14 Today, it is quite common for
business deals to still be made on the golf course.
From the perspective of the community, organized sports require volunteers to fulfill
roles such as coaches, referees and supervisors. Neil Ravenscroft, a professor at the University
of Brighton, states that the number of volunteers for sports outside of school has decreased.15
As the dynamic of work and the value of leisure time change, people have less time and less
flexibility to participate in organized sports.16 Neil Ravenscroft further explains that younger
generations are less likely to follow rules that they have not created. 17 In extreme sports, one
can generally do as one pleases and is not confined by a strict set of rules. Whereas in
institutionalized sports, being that it involves more than one participant, typically rules are only
tacitly agreed upon. It has been said that extreme sports typically “denounce, and in some cases
even resist, institutionalization, regulation and commercialization, and tend to have ambiguous if not paradoxical – relationship with forms of traditional competition.”18
Lifestyle sports serve as an alternative method of physical activity as the means to
participate in team sports undertake a changing of attitudes. Sports, regardless if they are solo
based or team based can be very emotional. To some, the obsession of winning, or the hatred of
losing becomes too much and participants thus lose interest in the sport. With lifestyle sports, it
can be argued that there is no winner or loser, only a challenge to oneself.
14
Appleton
ibid
16
ibid
17
ibid
18
Tomlinson, 7
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Ask any extreme sports participant and they will tell you that their sport is more
than just a sport – it’s a state of mind and a way of life. It’s about challenge,
adventure, and pushing the boundaries. Sometimes it involves competing against
others; more often it involves challenging your own limitations and pushing
them to the max. It’s about meeting and sharing your enthusiasm for your sport
with a like-minded group of people, and it’s about fun, challenge and
excitement.19
Although the risks involved in many extreme sporting activities may seem absurd to
those with no experience with extreme sports, Appleton states is correctly when he/she says “it's
the calculated judgment of the sportsman.”20 Contrary to what many view as completely unsafe
activities, with the advancements in technology for sporting equipment, the chances of injury
are much slimmer.21
According to research conducted by American Sports Data, it appears that extreme
sports are gaining new participants at the expense of traditional sports; however, due to the
informal nature and context of these activities, its full impact is difficult to measure. 22 One
method used for measurement is the purchases of sporting equipment. In a poll conducted
amongst teens in American, Tony Hawk was voted the “coolest big time athlete” ahead of
Michael Jordan and Tiger Woods, both who dominate traditional institutionalized sports. 23
Much of the hype does not come from the participants, but the industry that is associated with
it. From clothing to soft drinks, there is no denying that this industry has significant influence
19
Tomlinson, 14
Appleton
21
ibid
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Tomlinson,8
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Tomlinson, 7
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on the perceptions of these sports. These sports also exist within the landscape of traditional
sports and are thus subject to the process of commercialization. The media influences events
such as the X-Games, and effectively attracts the youth audiences.24 “Although many lifestyle
sports are often called extreme sport, the latter tends to be the way mainstream media and
marketers, rather than participants themselves see them.”25
Target Market
In the United States, as the baby boomers begin to age, there has been the emergence
of a new generation, labeled by many as the generation of youth or as the X Generation.26 This
generation is characterized as extremists who defy logic and protocol. Popular culture is a
reflection of the new generation. The emergence of punk bands, teenage focused films that
include extreme sports and sport brand clothing companies all contribute to the changing values
of this generation. As the characteristics of generations changed, so did their view of sports.
They prefer to differentiate themselves by participating in a relatively new type of nontraditional sports that offer high thrills and a sense of danger. The main target market for X
Games is both men and women between the ages of 12 and 35. ESPN, realizing this age group
was a prime viewing audience ingeniously brought together several extreme sports and created
yet another commercialized sporting spectacle. This targeted age group consists of a mostly
white demographic, living in the suburban towns of the United States. They prefer listening to
alternative music and chose to dress in skateboarding inspired clothing. During their leisure
time they enjoy hanging around skateboarding parks, shopping centers and playing video games
that focus on sports.
24
Tomlinson, 7
Tomlinson, 15
26
http://sptmgt.tamu.edu/espnx.htm
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The Consumer of the X-Games
There are many different consumers of the X-Games. From corporate consumers to
spectators and athletes, the X-Games create value for a multitude of consumers in a variety of
ways. For some consumers value is created through enjoying a form of entertainment, while
others use the X-Games to create brand awareness or to expand their market share. The
following section examines the four major consumer groups, and how the X-Games create
value for them.
Spectators
One of the major groups of consumers of the X-Games is its spectators. Spectators
consume the X-Games in a number of ways, including watching the event on ESPN, purchasing
tickets and watching it live, and surfing highlights via the internet. Value is created for the
spectators by providing them with a form of entertainment. Even though there are many other
forms of entertainment, the X-Games provide a unique, distinctive and one of a kind product.
The creation of the X-Games has not only diversified the entertainment options open to the
consumer, but has filled the need for an extreme sporting event. The X-Games fulfills the needs
of spectators seeking sports entertainment, individuals in the extreme sports community, as well
as spectators seeking a unique and different form of entertainment.
Participants
The increase in participation in extreme sports has created the need for a competitive
extreme sports event. The X-Games were the first major extreme sporting event introduced in
the USA, and are seen as one of the most challenging and competitive extreme sports
competitions. Athletes who compete in the X-Games are gaining value from the event in many
ways. The main value created for these athletes is through being able to compete in a highly
recognized and competitive extreme sports competition. Before the X-Games, there was no one
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large event which brought all extreme sports athletes together. It can be argued that the XGames are the national championships of extreme sports, and have made a large contribution to
the extreme sports community. Not only is there now a well recognized event for these athletes
to participate in, but also the X-Games have validated for extreme sports athletes as well as the
public, that extreme sports are in deed sports, and that they deserve respect. The participants are
also gaining value by being able to participate in a nationally televised sporting event, which
helps them gain exposure as athletes and land potential endorsement deals and/or sponsorships.
With the growth of extreme sports and an increasing number of companies making a foray into
the extreme sports market, the X-Games provides athletes with an opportunity to showcase their
talent, potentially win, and further their careers as extreme sports athletes.
Sponsors
Sponsorship has become a major form of marketing for firms, and a very effective tool
to reach certain markets. Before the X-Games, there were no direct ways for non extreme sports
companies to gain exposure to the extreme sports market. Primarily, all advertising to this
market was done through retail channels such as the fashion and music industries. Since no
major extreme sports event existed, there were no opportunities for companies indirectly
involved in extreme sports to reach this market. The X-Games has created value for many
companies by providing them with sponsorship opportunities, and a chance to reach an
untapped segment of the market. The main target market of the X-Games parallels many of the
main target markets of other companies. Brands such as Right Guard, Jeep, PlayStation and
Mountain Dew have all been able to land Gold sponsorship rights at the X-Games.27 All of
these companies have been able to leverage their sponsorship of the X-Games in order to grow
and promote their brand at the X-Games. For instance, these companies received national
27
http://expn.go.com/xgames/wxg/vii/s/sponsors.html
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exposure through the media, were featured on the X-Games web site, and were able to use the
X-Games to do on site sampling and promotions. They were also able to brand their products
with one of the most popularized sports in America, and tap into a new and growing segment of
the market.
Media
ESPN was the founding company of the X-Games, and has created enormous value for
their company through doing so. Viewer ship of the X-Games has been steadily increasing over
the years. The first X-Games in 1997 captured 213,083 viewing households, while the 2005
Winter X-Games viewer ship almost doubled to an average of 514,988 viewing households.28
The 2005 X-Games was the most viewed event on ESPN and EPSN2 across some important
demographics, which included men aged 12-17yrs, and men aged 18-49yrs (refer to
APPENDIX A). With such a strong and ever increasing viewer ship, ESPN has created an
enormous opportunity for their company. ESPN can leverage the success of the X-Games to
capture and acquire new commercial advertising deals, as well as promote their own brand
through the X-Games. Furthermore, ESPN will able to lure in new potential viewers by being
the only television network showcasing the X-Games.
X-Games vs. the Gravity Games
Entering into its 7th year, the Gravity Games is a parallel event to the X-Games, and one
of ESPN’s biggest competitors. Following ESPN’s lead, the Outdoor Life Network (OLN)
created the Gravity Games in 1998.29 The event features many of the same extreme sports as the
X-Games and is attempting to brand itself above the X-Games as USA’s premiere extreme
sports event.
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29
http://www.espnabcsports.com/Research_files/audience_research/one_sheets/Winter_X_2005_Most-viewed
http://www.olntv.com/nw/article/view/681/?tf=nwArticle.tpl
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The Gravity Games, like the X-Games, has the same target market, and same consumers
as the X-Games. Since the X-Games and Gravity Games are in direct competition with each
other, some of the consumers of the events are in competition with each other as well. Sponsors
and the media are two such consumers. A sponsor who chooses to support the X-Games likely
has a competitor who is a sponsor of the gravity games. This can be seen when we compare the
sponsors of both the X-Games and the Gravity Games (refer to APPENDIX B). The sponsor of
one event has a direct competitor in the same category, sponsoring the other. We can also see
competition among the media consumers of the extreme sporting events. ESPN is the founder
and producer of the X-Games, while the OLN, a major competitor of ESPN, was the creator and
producer of the Gravity Games.
Although there are remarkable similarities in both the X-Games and Gravity Games, the
OLN has been attempting to differentiate itself from the X-Games in recent years. By
combining high definition cameras with superior graphics, and by using a non-linear
documentary style, the OLN is attempting to add an element of technological superiority to the
Gravity Games for its television viewers.30 The Gravity Games are also differentiating
themselves by holding their events on the streets and parks where extreme sports themselves
began.31 They are attempting to brand the Gravity Games as an authentic grassroots event; one
catering to the true extreme sports enthusiast.
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31
http://www.olntv.com/nw/article/view/681/?tf=nwArticle.tpl
http://skateboard.about.com/od/events/a/GravityGames05.htm
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