Live sports have long been a dependable revenue generator for television networks, with broadcasting rights ensuring large audiences and significant advertising revenue. These TV rights funded the growth of sports leagues, encouraging viewers to subscribe to expensive cable and satellite TV. However, this relationship is evolving as sports organizations adapt to the rise of OTT sports streaming. We provide sports streaming solution & sports streaming platform provider 

For instance, the NHL and F1 racing have launched their own direct-to-consumer (DTC) platforms, creating entirely new revenue streams. Sports clubs like Manchester United with MUTV and FC Barcelona with Barça One have also launched their platforms, offering exclusive content along with live matches. Additionally, new agreements are forming with existing OTT platforms, such as NBC’s Peacock hosting the 2024 Summer Olympics.

Despite these advancements, the transition from traditional broadcasting to digital platforms is proving to be complex. Sports organizations are discovering that direct DTC connections, which many content creators and musicians enjoy, are not as straightforward for them.

Changes in the sports streaming market and audience behaviors have introduced unforeseen obstacles, but these challenges also present greater opportunities.

Challenges in OTT Sports Streaming

During a 2024 Sports Video Group (SVG) event in London, Caretta Research highlighted several challenges in the current state of live sports in Ed Barton’s presentation, “The Trouble with Live Sports.”

Flat Market Spending

Overall market spending on sports rights has flattened. As viewers shift to streaming, the major buyers of sports rights—broadcasters, regional sports networks (RSNs), and pay TV providers—are losing revenue.

While broadcasters are expanding their streaming offerings to mitigate revenue declines, they face significant costs in building streaming infrastructure. This investment, coupled with declining revenue from traditional models, leaves less capital for purchasing sports rights. We provide sports streaming solution & sports streaming platform provider 

Moreover, major streaming platforms are more selective about sports rights than traditional broadcasters. Instead of investing in entire seasons and tournaments, they often choose specific high-profile events to monetize through multiple revenue streams.

These trends show that financial investments haven’t transitioned from broadcast to digital as quickly as content has. Traditional broadcasters face budget constraints, and major streamers aren’t compensating with equivalent investments.

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Different Consumption Habits

Changing consumption patterns pose another significant challenge. Cord-cutting isn’t new, but nearly 40 million U.S. viewers have cut the cord. Although cable is growing in regions like Asia, Africa, and Latin America, the U.S. alone accounts for 45% of global pay TV revenues.

Younger audiences are not even subscribing to traditional pay TV models. They prefer consuming sports content in short-form vertical videos on social media platforms like TikTok, Instagram, and YouTube. This bite-sized content contrasts with the extended, immersive viewing experiences of live sports and doesn’t align with traditional sports broadcasting revenue models.

Broadcasters must appeal to younger audiences while catering to older fans who prefer longer-form sports content. Balancing these opposing consumption patterns requires new approaches to content creation, distribution, and monetization, adding complexity to the transition. We provide sports streaming solution & sports streaming platform provider 

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Opportunities in OTT Sports Streaming

The challenges in sports streaming also bring unique opportunities for sports federations, leagues, and clubs affected by shrinking sports rights revenue. Embracing a hybrid approach that blends traditional broadcast with DTC streaming will be crucial for growth in a stagnant market, creating new monetization opportunities via sponsors, advertisers, memberships, and e-commerce.

More Event Highlights

Sports highlights are increasingly popular among younger audiences. A third of 18-to-24-year-olds prefer sports clips or highlights over live games. Social media platforms like Instagram and YouTube are ideal for short, engaging clips, allowing videos to go viral and reach broader audiences.

Video streaming platforms like Mogi offer simple workflows for creating and distributing clips. For example, during a live stream, a drop in viewers can be addressed by quickly clipping a highlight and promoting it on social media. This approach effectively shows fans what they’re missing, rather than simply reminding them. We provide sports streaming solution & sports streaming platform provider 

Better Fan Engagement

Interactive video boosts viewer engagement, leading to longer viewing times and more interaction across content. Features like real-time player and team stats, instant replays, and highlight reels during live streams create a more immersive viewing experience. Increased interactivity also provides valuable data on viewer preferences and behaviors, improving performance and personalization.

Live interactivity is technically complex, and the volume of metadata from live sports is enormous. For instance, the German Football League has 11 petabytes of data in its media hub. Ensure your streaming provider has experience managing this scale before diving into interactive video.

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Smarter Content Discoverability

Leveraging data-driven insights to improve content discoverability is crucial. Personalized recommendations keep fans on the platform longer and increase content consumption.

Analyzing viewing history, engagement, and preferences can be tedious. Brightcove aggregates audience, content, and service data into actionable insights. Even if you don’t use Brightcove for media, their Subscriber Insights can collect, harmonize, and visualize data from different sources.

In sports, where real-time engagement is key, actionable insights are essential. They help ensure fans don’t miss record-breaking moments. We provide sports streaming solution & sports streaming platform provider 

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Simpler Pathways to Loyalty

A hybrid DTC approach can create a seamless customer journey, boosting fan loyalty. Fans can transition from watching live games to viewing highlights, purchasing tickets, buying merchandise, and accessing exclusive content. This comprehensive ecosystem enhances the fan experience and allows sports organizations to own revenue from memberships and advertising.

Beyond the TV

Sports organizations must understand that the future of sports streaming involves more than just new technologies and tactics. It represents a paradigm shift in how viewers consume content and engage with their favorite sports, clubs, leagues, teams, and players.

Organizations that integrate sports entertainment into fans’ lives, rather than confining it to TVs, will see the highest revenue potential. Offering behind-the-scenes content, exclusive features, and various video content types keeps fans connected, turning casual viewers into superfans. We provide sports streaming solution & sports streaming platform provider 

Despite the formidable challenges in sports streaming, these moments lay the foundation for future success. The sports viewing experience continues to evolve, and now is the time to seize the opportunities it presents.