OTT Opportunities for Sports Brands:
Sports have always had a special place in the hearts of fans around the world. More so now with the rise of OTT opportunities for Sports Brands. Distribution within the world of sports has propelled many major sporting brands too new heights. The opportunities that this landscape presents, with a promising future ahead for the sports streaming market in 2022 and beyond looks promising. According to a survey by Rethink TV.
Changing the game in 2022
Events available through streaming platforms are expected to push worldwide broadcast rights income above US$85 billion by the end of 2024.
The key information of the report is that direct to consumer services are gradually but steadily penetrating the sports rights industry. Posing a severe threat to broadcasters.
Even digital behemoths like Amazon, which are upsetting the old world of sporting rights, will have to adhere to the new realities of D2C. If they want to be relevant in the future of sports video distribution.
Back to the Future
Television was the first wave of disruption for sports over 50 years ago. Followed by subscription pay TV about 25 years later, bringing extraordinary earnings and tremendous exposure outside of traditional fan bases.
According to studies, the worldwide value of sports rights is presently about $48.6 billion. With predictions expecting a 75 percent increase in the next five years. This is due to an increase in viewers migrating to sports streaming services because of more accessible material.
Sports businesses must recognise that this is the future of sports broadcasting by analysing the existing situation.
With 59 percent of sports fans in the UK willing to watch sport entirely via online streaming platforms.
This feeds into the reality that more people are cutting “traditional service”. And looking for a one-stop shop for sports streaming.
Fans also demand more interactive material when watching sports broadcasts. With 56 percent requesting more interactive content, highlighting the chances that sports businesses must seize with both hands. In order to stay relevant in a highly competitive landscape.
Opportunities To Monetise And Manage OTT
Sports businesses can simply manage their content and enhance their income stream by constructing subscription-based services.
One that fans are prepared to pay for by reaching out to new audiences on a worldwide scale. Through the creation of an OTT platform.
Around 63 percent of UK consumers would spend more than £10 per month to watch sport via an OTT service. Indicating that there is a market for content since a substantial number of fans are willing to pay.
Take football, for example, a popular sport with supporters all over the world. We know that fans in Asia and North America are eager to watch matches from Europe’s top leagues. This example demonstrates that there is a need for high-quality content. And it is up to these sports companies to fill that want.
An OTT platform provides lots of options to do so and appeal to a much larger audience.
When it comes to D2C (direct-to-consumer) services, they’ve shown to be an efficient approach for sports rights owners. Helping to future-proof their business models in a volatile market. D2C services allow rights holders to rethink their media plans. Without jeopardising the guaranteed mid-term payments provided by existing broadcasting rights agreements.
So How Can OTT Work For Sports Brands?
Could the Premier League follow suit? The NFL, one of the most well-known sports leagues in the world, has adopted this model. And has taken advantage of the opportunities that SVOD provides. Allowing them to reach new audiences, monetise their content through various subscription-based models, and elevate their brand to new heights.
OTT allows people all over the world to watch video content whenever they want. Opening up new advertising, targeting, and personalisation possibilities. As more individuals use OTT as a means of viewing sports content. The potential rise, and sports businesses must aim to capitalise on this.
With more people moving to OTT platforms which are on the increase. While Pay-TV subscriptions are on the decline according to reports. With the sole drawback remaining that live content is only available on Pay-TV platforms.
Fans need seek no farther when a live streaming service is combined with extra content. Such as behind-the-scenes video, interviews, stats, highlights, and more on a single OTT platform on a subscription basis.
In summation
Audience behaviour and watching habits evolve, OTT will continue to develop at a rapid rate in the years ahead. Consumers are ever more demanding OTT platforms for sports companies. To provide a slew of options they must seize in order to stay relevant.
The less growth focused competitors will continue to be left behind. With forward-thinking sports companies who invest in OTT becoming winners within the game for eye balls.
This is a report from Dynamic Sport Marketing…Connecting your goals in the changing Landscape of Sport.
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