In the past, sports were watched only on television. If an NBA game started at 3 a.m., loyal fans in this part of Europe would cut their sleep short to enjoy American basketball. In case they did fall asleep, they could only hear about the match from friends or read about it in the newspaper the next day. The same situation was with boxing matches – I still remember how my grandfather woke me up in the wee hours of the night to watch the fight between Željko Mavrović and Lennox Lewis. However, the general digitalization of society has not bypassed the world of sports.
Satellite transmissions are changing the paradigm
With the advent of satellite operators (e.g. Sky), the way and amount of television programs available to viewers has changed. In 1992, Sky bought the rights to the English Premier League, and although the price was three times higher than the previous deal, the cost per single match was almost exactly the same, as Sky showed a much larger number of matches. Unlike other content, it is specific for sports that the premiere of the content has an immeasurably higher value compared to that of recording. From that moment on, the prices of sports rights began to rise dramatically.
The sector around which big money swirls has forced program producers, television rights owners, as well as the clubs themselves – to make tectonic shifts.
Streaming platforms are taking an ever-greater piece of the pie day by day in the consumption of sports content. Just as Netflix or HBO offer an almost endless amount of films, series and documentaries, sports platforms offer an unlimited dose of sports.
Sports in the palm of your hand with OTT
Sports fans have gained power over the program thanks to OTT (over-the-top) through streaming platforms. In translation, anytime and anywhere, subscribers can consume the content they are interested in. An infinite number of times I can watch summaries, match statistics, performance of each individual player, have access to exclusive content and many other benefits that have remained nothing but a wish during classic television broadcasts to this day, (if we leave out some top commentators from whom such information can be heard).
For example, Spanish La Liga currently has 8% of revenue coming from OTT services, and they expect to have as much as 20% of streaming revenue by the end of 2022.
By 2020, practically all major European football clubs had developed their own media services, including OTT. On the other hand, platforms such as Turner Sports B/R provide exclusive content from the Premier League’s own media services, from Arsenal TV, LFCTV from Liverpool Football Club and Tottenham Spurs TV to American audiences, thereby building an even larger audience base in America.
Specialized sports platforms
In 2019, DAZN became the largest sports app globally with content dedicated to football, motorcycle racing, extreme sports, triathlon, boxing, basketball and other sports. It is unstoppably expanding all over the world and this year it is expected that 2.1 billion euros are going to be spent on sports rights.
NFL Red Zone is an extremely successful OTT channel that in the last season gathered about 5.5 million subscribers willing to spend about $400 per season to follow the entire season of the American Football League.
The NBA, on the other hand, offers packages in which it is possible to watch each game in HD resolution and in different languages, clips, summaries, selection of commentators depending on which club you are rooting for, statistics of each player during the game and much more. Let us just mention that, compared to last season, the number of NBA League Pass subscribers increased by 30%.
Formula 1 is currently experiencing its best moments since the years when Michael Schumacher was on fire at the Ferrari team. In addition to Netflix’s Drive to Survive, which brought the sport closer to a younger, mostly American audience, the credit also goes to the brilliantly conceived F1TV, which offers users viewing in HD resolution, with the most detailed statistics and telemetry. A special treat is the option to watch the race through the eyes of the driver, by selecting his separate camera mounted on the car.
What awaits us in the future?
Traditional TV channels still remain the main providers of sports content for fans, but, judging by the trends in the US (cord cutting – cancellation of subscriptions of traditional cable operators), OTT will undoubtedly play a large, if not the main, role in the way content is delivered and shaped in the future. According to Ampera’s research, by the end of this year, OTT platforms will have increased spending on sports rights by about 20%.
And where is the space for marketing?
The gradual shift of sports content from television programs to streaming platforms, and then to OTT channels is also changing the advertising paradigm. Each commercial has its place and time, so we all know exactly which commercials we can watch before and after Champions League matches, and during half-time – beers, building materials, tiles, cars. The removal of sports content from television consequently removes the space in which such commercials will be broadcast in prime time, and leaves question marks over the heads of marketing departments of large companies, as well as smaller agencies that are asked for advice.
1. Direct sponsorship of competitions and clubs
One of the possibilities is to return to the roots – direct sponsorship of competitions and clubs. And while direct sponsorship of a competition is intended for bigger fish on the market, sponsoring clubs does not have to be such a large undertaking, and it can bring great visibility in broadcasts, regardless of the platform on which the content is watched. Of course, a printed advertisement next to the stadium or on a jersey fails to tell the story the way a TV advertising program can, so it is not an entirely successful replacement.
2. Advertising through accompanying content
Another option is advertising through accompanying content. In recent years, a number of analytically observing sports podcasts have been developed in Croatia, which is a logical product for a country with 3 million national football team managers. Podcasts like tribina.hr or Utakmica po utakmicu regularly generate tens of thousands of views from episode to episode. Also, specialized internet portals that are followed by fans of a certain sport such as hoopster.hr or gp1.hr are a good alternative. Many of them are also extremely active on social networks, where they constantly publish quality content.
3. Moving away from sports
The third option, the bravest one, is to move away from sports. If streaming and OTT platforms continue to take over the market at the current pace, it may be time for a paradigm shift. Beer and football are a perfect pair only because they are continuously advertised in this way, and this is also subject to changes in the future. OTT platforms actually return control over sports to the sports or clubs themselves, which is in principle a good direction for the development of sports following. For exclusive access, they also ask for exclusive subscriptions, and then they can allow fans to consume their sports content without ads. This is a reality that we will all have to accept and look for new ways of promotion!
