Searching for sport’s digital tipping points

Trying to keep up with all the predictions, opinion and analysis of digital trends is a full-time job in itself.

Most broadcasters and agencies have people with the word “strategy” in their title whose role it is to interpret all this information and shape it into new propositions designed to fulfill – and hopefully exceed – their organisation’s overall objectives.

Working as an individual, my “strategy” department includes, amongst other things, lots of forward keyword searches, alerts, subscriptions and set times each day in which I allow myself to wander across websites and social media channels of all descriptions in search of inspiration and fresh thinking.

It was during one of those wanders that I came across an article which resonated loudly with me on a couple of fronts and judging by the 1,223 shares it’s had, I wasn’t the only one with whom it connected.

It was published last week by The Drum and is headlined: Live streaming – the ticking time bomb for sports broadcasters.

Screen Shot 2016-04-18 at 17.17.17

Along with many others, I’ve been trying to interpret Twitter’s dive into acquiring NFL rights and work out what the other social media giants will do next in the live sport streaming arena because their actions will, without question, ultimately have a tsunami effect on the whole broadcast/digital/social model.

In my mind, the question of primary and secondary (and for some people, third, fourth, fifth etc) screens is at the apex of that model. “TV”, represented by the box in the corner of your living room, has ruled the roost for years as the primary means by which live video is accessed. No more.

I’ve argued long and loud that for many people, the tipping point has already been and gone and the device in your hand on which you’re reading this stream of consciousness is in fact now your primary screen, the same place you create and consume social media content.

In previous roles, I advocated a more specific and wider inclusion of social media in rights acquisitions which would have enabled greater freedom to use these channels to distribute live and on demand video streams.

“If a sports body…. can keep its lucrative traditional broadcast deals in key territories whilst also doing something innovative with social media to increase reach and profile in new territories and with younger audiences, it will do.”

— Jody MacDonald, Senior Associate, Couchmans

There was hesitation and sometimes objections to this approach, I believe partly based on a benign lack of understanding by rights owners who were correctly fiercely protective of their sport. Coupled with a focus on protecting the broadcast model – after all, this is where the real money is made through advertising and sponsorship – social media in particular was perceived as a threat rather than an asset to be developed as a distribution channel.

However, the tide has turned and it’s not going back out again. Broadcasters and rights owners are much more social media savvy now and are approaching a tipping point too where they will have to devote the lion’s share of their rights acquisitions and production resources on what we think of as “digital” rather than “TV”.

To borrow Jody MacDonald, at sports law firm Couchmans LLP, from The Drum’s article: “If a sports body, such as the NFL in this instance, can keep its lucrative traditional broadcast deals in key territories whilst also doing something innovative with social media to increase reach and profile in new territories and with younger audiences, it will do.”

The question of “when” is much more difficult to predict. There won’t be a single defining moment, a “big bang” on a global basis. Rather, there will be a series of smaller eruptions, such as the Premier League carving out a unique and significant package of digital rights; Apple, Facebook, Twitter, making technical platform advances which facilitate greater access to live and on demand content.

On an operational level, the work I’ve been doing with Red Handed on producing live and on demand video coverage of the World Match Racing Tour, a catamaran racing series, has proved that a shift to digital thinking rather than pursuing a linear broadcast distribution model is to the benefit of minority sports. Here’s a taste of the offer, aimed at potential sponsors.

Finally, The Drum’s article struck another chord with me when it spoke about media rights being tipped to surpass ticket sales in 2018 as the North American sports indistry’s largest revenue stream ($19.9bn, according to PricewaterhouseCoopers). Read their report.

The researchers found that part of the increase comes from fans opting for an improved media experience at home or in a pub, rather than seeing the game in person.

This was the point I made in a blog at the start of the 2015 MotoGP season when I highlighted the emergence of a digital divide between those who pay to go to a race and those who stay at home. The former are excluded from the digital conversation because of poor infrastructure while the latter are able to enjoy digital “add-ons” such as instant replays and social media participation without interruption.

The message from the PwC work is clear. Sporting venues need to invest in their digital networks and look to innovative ideas such as the new Besiktas stadium where screens have been fitted in the back of seats to watch replays and high-speed wifi is available throughout the venue.

PS. Note that I didn’t call them “TV” screens!

Guest post by Mark Coyle, check out more of his blog posts on http://www.mcdigitalmedia.com

About author

Daniel McLaren
Daniel McLaren 820 posts

Dan is the Founder & CEO of Digital Sport. Can be found at sports industry events and heard every week on the Digital Sport Insider podcast. @DanielMcLaren

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