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Sport Is 'On The Brink' Of A Digital Revolution In 2019

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Steve McCaskill

Last week, leading figures from the sports, technology and advertising industries descended on the British Academy of Film and Television Arts (BAFTA) for the annual Leaders Meets Innovation event.

Among the attendees were the heads of digital for broadcasters DAZN and Sky Sports, the head of digital from the National Basketball Association (NBA) and the Chief Operating Officer (COO) of Manchester City.

A common theme of presentations and conversations in the corridors was the ability of technology to increase fan engagement, drive the value of commercial partnerships and open up new sources of revenue.

Digital growth

A new report entitled Show Me the Money, commissioned by Tata Communications, echoes these sentiments. It claims 2019 will be a “tipping point" for sports revenue growth as organizations embrace technology to attract audiences and create more immersive fan experiences.

This transformation is taking place both at the venue and via television or the Internet, deepening connections between audiences and sports organizations. Despite fears that the needs of remote fans might outweigh those who physically attend events, the report says a unified strategy that takes into account both demographics is essential.

After all, a television broadcast of an empty stadium is not going to appeal to viewers at home.

“It’s important to remember that digital technologies are the friend, not the enemy, of the live experience,” declares Mehul Kapadia, head of Tata Communication’s F1 Business and its head of marketing. “So, as the digital fan experience gets better, the pressure is increased to ensure that fans at venues can engage with the action in new ways too. A holistic fan engagement strategy enables broadcasters, rights holders and other key players in the sports ecosystem to maximize the commercial opportunities that digital platforms offer."

Digital platforms

But there is no denying that the globalization of sport and the maturation of digital platforms is helping sports organizations of all sizes to break down geographic boundaries. U.K. fans of the NBA can watch virtually every single match live on Sky Sports or via NBA League Pass, while foreign supporters of English fourth division soccer clubs can stream all games live.

Broadcasters and organizations are using Augmented and Virtual Reality (AR and VR) technologies to make fans feel like they’re at the game, while social media is helping to encourage direct contact between clubs and athletes – solidifying relationships. Such fans are more likely to purchase merchandise of a television subscription, driving revenue.

Others are using their statistics databases to provide insights to fans to create even deeper relationships by increasing their knowledge of and interest in the sport. The Internet of Things (IoT) is empowering this trend through intelligent sports equipment, player tracking and other devices. The more data that’s available, the more valuable the insight that can be presented.

“The direction of travel is to evolve digital platforms like official websites and social media channels to become content hubs for fans and a place for brand partners to integrate authenticity into the storytelling,” adds Frank Arthofer, the head of digital at Formula One.

Vodafone

The streaming revolution

Of all the innovations, it is streaming that will arguably have the greatest impact. Traditionally, fans have consumed sports content at home through full matches or scheduled highlights on linear television.

It is a widely-held view that millennials aren’t consuming sport as much as older demographics – hence the reason why organizations like the International Olympic Committee (IOC) are including new events at the Olympics and launching initiatives like the Olympic Channel to appeal to younger audiences.

But the report says millennials are still interested in sport but are consuming it in different ways. For a generation accustomed to the on-demand viewing of Netflix and YouTube, millennials demand the ability to pause and rewind content at a time that suits them.

Some millennials will never have a traditional cable or satellite subscription, limiting the ability for linear television to reach them. The NBA admitted this was one of its most significant challenges during its presentation.

Streaming services such as DAZN have tapped into this desire, offering “cord-free” flexible subscriptions to virtually any device you can think of. Beyond subscriptions, organizations are partnering with social platforms like Facebook and Twitter to offer content, banking that the sponsorship and indirect revenues will be greater than an access fee.

Smarter use of data

The collection and analysis of data are essential to the latter strategy. Organizations use audience data to tailor content for social media channels, while broadcasters and advertisers use Big Data to determine which properties to invest in.

Sky Sports believes its longevity in the U.K. market is what will see it continue to thrive in a market increasingly populated by young upstarts – mainly because it can appeal to all audiences. That’s why it’s investing in streaming and in improving its more traditional distribution methods.

“Our consumer base is broad. [It includes] young people watching YouTube and playing FIFA to my dad who sits at home all day watching Sky Sports News and test cricket matches,” explains David Gibbs, director of digital media at Sky. “We’ll always invest where our customers see value. We have 30 years of data for that.

“We know the majority of consumption is on a big TV screen and we know people want the best talent and quality. But we also know they want flexibility. So we’re investing in Ultra-High Definition (UHD), quality of production and our business model.”

 

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