A winning strategy for the future of sports streaming has been saved
The authors would like to thank Akash Rawat and Chad Deweese for their valuable input.
Cover image: Jaime Austin.
United States
United States
United States
United States
In this “golden age” of sports content, fans have more options than ever to watch what they love. Currently, this means navigating a combination of cable, broadcast, and streaming services across their big and small screens. Helping to usher in this age, streaming has increasingly become a favorite channel for watching live sports, especially for younger fans. With the move to streaming, sports organizations are seeking further monetization of their rights and chasing a shifting consumer base. And streaming services are looking to use live sports as a differentiator to fight off competition and reduce churn.
Examples of this emerging relationship include Amazon paying US$1 billion per season to stream NFL “Thursday Night Football”; “Friday Night Baseball” and Major League Soccer on the Apple TV+®streaming video service; and a number of US women's and men's national soccer team matches landing on HBO Max, starting 2023.1 In addition, leagues and regional sports networks (RSNs) are looking to launch their own direct-to-consumer (DTC) offerings.2 Their goals are to better control their own destiny and engage fans in a more personalized way, capturing and monetizing data.
Increased competition could lead to a better overall product, both on and off the field. This may include novel game formats, improved production quality, additional ancillary content, enhanced uses of data, and preventing teams from “tanking” (in order to retain subscribers). However, there are some dangers to watch for. As this new landscape matures, fans could face an increasingly confusing mix of options to wade through to watch their favorite teams and events: home and mobile streaming services, RSNs, and cable/satellite channels. Instead of building deeper relationships, leagues and providers may therefore be creating artificial barriers for fans. Also, by having so many options to watch a specific player or team, leagues could miss out on maximizing their potential audience because of market fragmentation.
To explore how fans feel about this unfolding future, we surveyed 500 US respondents, of which 319 were identified as sports fans.3 We found that sports fans crave content, and many pay for it; they just want to access it easily. Over half of sports fans surveyed (53%) said that they paid for a streaming video service to access sports content in the last year. But fans have some frustrations with their experiences, which could potentially reduce their level of overall engagement. Negative sentiments include feeling burdened by too many subscriptions (49%), feeling frustrated by difficulties finding content (62%), and actually missing events they wanted to see because of these difficulties (54%).
These statistics are representative of the challenge—there is no “one-size-fits-all” for the entire fan base. Fan attention is being pulled in myriad directions by different entertainment choices, and if providers aren’t careful, they could see fans drifting away. This raises some difficult questions in the streaming era:
This market is going to take many years to develop and mature. There will likely be a long transition as licensing rights expire and change, and streaming providers build their live sports infrastructure. Those who want to reach sports fans through DTC offerings should focus on some key considerations:
Alex Sherman, “Amazon's exclusive ‘Thursday Night Football’ package will begin in 2022 instead of 2023 ,” CNBC, May 3, 2021; Apple Newsroom, “Apple and Major League Baseball announce first 12 weeks of ‘Friday Night Baseball’ doubleheader schedule beginning April 8 ,” March 29, 2022; Rachel Bachman and Tim Higgins, “Apple, Major League Soccer strike 10-year streaming deal for all MLS games ,” Wall Street Journal, June 14, 2022; Joe Lemire, “Turner obtains U.S. soccer broadcast rights, will produce first sports livestream on HBO Max ,” SportTechie, March 1, 2022. This article is an independent publication and has not been authorized, sponsored, or otherwise approved by Apple Inc. Apple TV+ is a registered trademark of Apple Inc.
View in ArticleDaniel Kaplan, “NFL considers creating a streaming service of its own ,” The Athletic, March 28, 2022; Brad Adgate, “Sinclair’s regional sports networks look to streaming to grow revenue ,” Forbes, January 11, 2022.
View in ArticleWe surveyed 500 US respondents in February 2022, to identify sports fans and understand their beliefs and behaviors. To determine who was a sports fan we asked the question, “On a scale from 1–10, how much of a ‘sports fan’ are you?” (One equated to “Do not actively follow sports” and 10 equated to “Spend a significant amount of money and/or time actively following sports”). Those that answered six or higher were considered “sports fans” for purposes of the survey. Approximately 63% of the total sample were sports fans (56% male, 44% female).
View in ArticleThe authors would like to thank Akash Rawat and Chad Deweese for their valuable input.
Cover image: Jaime Austin.