The coming sports monetisation revolution
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20,000 foot view: Despite recent sports rights hikes (driven by tech major interventions, such as Amazon’s NFL Thursday Night Football 2021 rights agreement), sports as a broadcast asset is under increased scrutiny. An ageing audience, combined with its decreasing relative importance in home entertainment, means that live sports must work harder to justify its hefty price tag in the TV streaming era. The good news is that, compared to the mainstream consumer average, live sports consumers spend more on subscription video on demand (SVOD), are more engaged with ads, and are disproportionately over-represented among wealthier time-rich silver streamers (55+s). This report outlines the case for combining favourable demographics, monetisation preferences, and emerging technology stacks to make live sports coverage more relevant for consumers and financially viable for streaming services to include in their content offerings.
Companies and brands mentioned in this report: Amazon, DAZN, Disney, Edgio, ESPN, LTN Global, Magnifi, NFL, and Thursday Night Football