Articles
Sports and Storytelling: Captivating Audiences with Virtual Feeds.
Have you ever tried to explain the rules of Cricket to someone who has never played the game? Golf's scoring system or the offside rule? The laws of sports can be complicated, but they are crucial to playing, understanding and, as a viewer, enjoying the action.
One of my favourite memories from my early twenties was when I walked into a bar in Cape Cod and saw baseball being broadcast on the TV screens. I asked my companion, a fellow Brit living in the US, to help me understand the rules and stats on the graphics. Others at the bar, including the bartender, overheard my question, and soon, six or seven of us watched the game and drank beer together. My new drinking buddies introduced and explained the rules, stats, and players to me, and what started as a quiet beer turned into a fun couple of hours with local sports fans. Since then, I have enjoyed watching baseball.
Throughout my career covering Sports, I have had countless requests to explain the rules. Because I am an avid sports TV viewer, my family would ask me to describe the rules as we watched a game together. I noticed that if they didn't grasp the rules quickly, their attention and interest switched off and turned to other things. So, the lack of understanding and inability to engage with the action immediately makes people lose interest or switch over, not the duration of a particular event.
The perception is that those under 35 have reduced patience and attention deficit with so many digital alternatives. Yet this group will happily watch a 2-hour movie, binge on Box sets, spend hours in front of a screen gaming, or on social media, etc. They are drawn to the digital screen as their primary source of entertainment but must be engaged immediately to remain for the duration of the content. As professional storytellers, when viewers used to flick through multiple TV channels, we were told that you had 5 seconds to make an impression on the viewer; now, in this digital age, it is probably 2!
To keep pace, sports events offer shorter highlights and features, also known as 'snackable content'. These shorter forms of content are designed to grab the viewer's attention and keep them engaged for a brief period; however, by doing so, they are giving the viewer the option not to watch the live event and, instead, allow them to search for the shortest form of content available. The live event remains the most entertaining experience. Nothing compares to watching the drama of sports unfold in real-time. In addition, regardless of the platform, the viewing audience for the live broadcast is a critical financial metric to attract sponsors and partners. Therefore, driving viewers to the live broadcast or stream is crucial and keeping them engaged is vital. A virtual production is a valuable tool for achieving this. It provides an alternative viewing option to the more traditional broadcast. It gives content creators and storytellers a range of creative possibilities to tell the story in an alternative yet visually appealing way for a particular demographic.
I watched the main feed of the Super Bowl this year live. The next day, I watched clips from the Nickelodeon feed. It was a terrific production that used cartoon characters and loads of animation to explain the action in a fun and engaging way. The commentary was excellent and authentic, but the cartoon characters could ask questions as a child would, and the commentators answered those. This feed was a superb viewing option for a sports fan with a young family to watch a major event together and have the screen, supported by well-known characters, explain the action with entertaining visual additions instead of everyone relying on the fan. The Super Bowl is a national event that draws in a massive TV audience and a host of A-list celebrities, which makes it fun for the non-sports fan. This year, the Taylor/Travis story was a perfect backdrop. Taylor Swift has undoubtedly added to the number of younger viewers and women watching, and for that new audience to be offered the Nickelodeon feed as a viewing choice to introduce them to the NFL and American football as a sport was a terrific option. They saw the same action and celebrity cutaways that we provided on the main CBS feed; it's just that the graphics and other animations were different.
It is essential to continue distributing the main broadcast feed for the dedicated, passionate, and knowledgeable sports fans. Sports have served this audience by providing additional feeds for many years, mainly with enhanced data. Their attempts to engage a younger audience have seen partnerships with companies like Roblox that create animated characters from the live-action. Still, whilst these are good initiatives, the animation is too far removed from the main action, so the dedicated sports fan would lose their interest because they don't want to watch an animation of the main event instead of the real thing. Watching sports together as a family or with friends is another integral part of its enjoyment, like going to the movies or theatre. Virtual production blends the requirements of new fans without damaging the event's authenticity for dedicated sports viewers.
Five years ago, creating a separate virtual feed would have been difficult. However, the technological advancements in digital distribution have made it more accessible and cost-effective. For the production, the improvements in camera tracking, AI keying, and graphic design, mainly using Epic's Unreal Engine, have sped up and simplified the process. Adding some aspects to the existing broadcast and production set-up is an additional cost. Still, attracting new fans, particularly younger and more feminine audiences, is an investment. In addition, this separate feed and different audiences provide an opportunity to partner with new brands and sponsors separate from those that support the main, traditional broadcast.
Sports federations, leagues, and broadcasters need to consider exploring the implementation of a separate virtual production feed to attract new fans. In addition to a visually appealing explainer feed of their sport, they can edit the action and animations into more snackable content pre and post-event to continue engagement and for promotional and marketing purposes. Many events would benefit from such a feed. World, Regional and domestic cup finals, Grand slams, Playoffs, Grand finals and major tournaments and races. All of them create international or national interest and, as a result, attract a more extensive, non-sport audience, presenting a terrific opportunity to tap into a nascent market of new fans and start them on their journey to dedicated fans.
The best way to learn any sport is by playing or participating. However, participation numbers have been declining while digital consumption has increased. Therefore, using digital innovations, such as virtual production, to explain the rules and regulations of sports might help increase participation levels. From a digital perspective, the younger generation is just as willing to engage as previous generations. The difference is that they have so many options available, which allows them to be selective and make quick decisions. They will always be more comfortable watching something they can understand and become interested in. For sports, with its complex rules, using visual stimuli that grab their attention over a 1–2 to two-hour period must be offered, along with explanations of the action and introductions to the leading players and performers. With high-quality animation, authentic commentary, and clever graphics delivered as a separate feed, virtual production provides sports an exciting digital opportunity to educate, inform, and entertain new fans.
The Battle for Sports Streaming Supremacy.
It is a Game of Thrones
Winter is coming for linear broadcasting, and a streaming war has begun. The major tech titans are fortifying their offerings, with content and live rights as the primary drivers of their expansion. In this dynamic landscape, sports content emerges as a critical battleground, raising whether it is merely a strategic tool or a foundational element of the long-term vision for these industry giants. As the battle for streaming supremacy intensifies, only time will tell who will sit on the Iron Throne of the streaming world.
In a narrative reminiscent of the power struggles in Game of Thrones, it describes the upcoming clash between traditional broadcasters and Silicon Valley heavyweights vying for dominance in sports streaming. The broadcasters, once mighty rulers in the domain, now face formidable adversaries: the influential global houses of Amazon, Apple, Alphabet (Google), and Netflix. The broadcasters feel the looming threat as these major houses gradually erode their subscriber base, reducing their established supremacy. One emerges as a standout contender in this unfolding saga, boasting the strategic patience essential for triumph. Leveraging a robust platform, some strategic sports acquisitions, and cutting-edge AI, it has the 'dragons' to position itself as the foremost challenger for the esteemed Iron Throne of sports streaming. This article uncovers the clash for supremacy among the major houses, spotlighting the distinctive strategies and products each has and uses to set them apart in this high-stakes battle.
The Broadcasters, as the House of Stark,
King of the North:
The oldest house and once the undisputed rulers of the sports realm, the traditional broadcasters now face an uncertain future. Big tech is chipping away at their subscriber base and threatening their position. Like the King of the North, the broadcasters are slowly losing their power and must adapt to survive. For now, though, they hold most of the rights to the tier-one sports leagues and events, including some that have been secured for several years. They retain a seat at the top table, but will they keep their crown or become wardens of the North?
For decades, they have fought their version of the Wildlings: Piracy. Like the ongoing skirmishes beyond the wall for the House of Stark to protect the realm from the Wildlings, traditional broadcasters have been engaged in a decades-long conflict against piracy to safeguard their content, distribution and revenues.
Digital streaming services and the changing preferences of viewers are the latest threats to their reign. But only as linear broadcasters, not as media conglomerates. Before we deliver a red wedding-type slaughter, we should remember that this house is established with substantial personalities to match the characters Jon Snow, Sansa, Bran, and my favourite, Arya Stark. All are lurking with strategic intent. They possess the necessary understanding and weapons to ensure their survival. They have learned to navigate unseen events, strike at critical moments, and, if required, form alliances and take on a different identity. Ultimate power may be beyond them, but they have the experience, distribution, flexibility and, crucially, established, deep-rooted connections within the sports industry to maintain relevance and profitability in this evolving landscape.
In the last six months, we have seen the beginnings of a new strategy. Alliances have been drawn up to counter the threat. Fox, Warner Bros and ESPN recently announced the launch of a new sports streaming platform in the Autumn and in the UK, the BBC, ITV and Channels 4&5 are teaming up to launch a service this spring. Missing from this group are Comcast, owners of NBC and SKY. They have had success with Peacock in the US, and SKY has held a dominant position in the sports landscape in Europe for nearly three decades. We will have to wait for their move; do they join the alliance or hold out?
As a collective, the broadcasters lessen their weaknesses from the cord-cutting from sports fans, with the subscription fatigue continuing at a pace, reducing their financial muscle quickly. For the fan, having most of your content on a single platform is way more appealing than subscribing to 4 or 5 different services. This highlights the broadcaster's adaptability, but it could also become their most significant problem, as working out the revenue splits will take a lot of work. For Amazon, Apple, Alphabet (Google), and Netflix, this is less of a problem; they all have the financial resources to stand alone and have built significant kingdoms on the back of merchandise, technology, video and search platforms, original content, films and entertainment. Having built these, they have recognised the power of sports content to maintain their dominant positions and are making increasingly strategic moves to capture that coveted audience.
So, what are the strengths and weaknesses of each, and how will they use their considerable resources to gain supremacy? As Cersei Lannister said, 'When you play the game of Thrones, you win or die; there is no middle ground'!
Amazon as the House of Lannister
Amazon parallels the influential House Lannister from Game of Thrones. Like House Lannister's reputation for wealth, power, and strategic prowess, Amazon's e-commerce platform boasts significant resources and global brand dominance. With Prime Video, they have invested in mixing content and merchandise seamlessly. Like the House of Lannister, they have leveraged their strengths to secure advantageous positions and execute impactful investments (NFL, Premier League, Tennis and Rugby Union) to quickly become a formidable presence in sports streaming. Like their competitors, they can offer expansive reach, global recognition, and substantial resources that challenge traditional broadcasters. However, their strategy has been mainly based on increasing Prime subscriptions, and only recently have they added adverts and commercials to their platform. The success or failure of that initiative will decide how long they wish to remain in the sports space. Their lack of willingness to retain their Premier League rights suggests that they will pick and choose their rights based on their E-commerce strategy more than a sporting one. Women's sports might be the primary beneficiary due to an apparent correlation between that consumer group and Amazon's Prime and other services. They have the resources to do anything; they are a significant challenger for the Iron Throne if they decide to go all in.
Apple as the House of Tyrell
Like the House of Tyrell, wealth is not an issue for Apple. It also wants influence and desires for strategic alliances in sports. It wields its technological prowess as a compelling weapon in the digital realm. Through its devices and TV+, Apple is emerging as a formidable competitor in the sports streaming market. It wants to be seen as a major player and will leverage its iconic brand and substantial resources to secure exclusive content deals such as the 10-year MLS partnership. This acquisition differs from Amazon's in that Apple want to own sports properties outright and, with tie-ups such as the one with Lionel Messi, they use personalities and celebrities to develop and sell their products. The MLS naming Beats as its official consumer audio products partner ahead of its new season exemplifies how the tech giant strengthens its ties with the league and promotes its products, equipping itself with cutting-edge tools that appeal to a younger, tech-savvy audience.
Apple has acknowledged the move to sports streaming as a primary service, and with its devices, that provides it with an opportunity to revolutionise the sector through innovation and user-centric experiences. However, its deal with MLS gives it complete control, which other top-tier leagues and federations may not be willing to provide. While tier 1 leagues may seek Apple's patronage, the concessions required may be too significant. By partnering with Apple, the industry could be disrupted, and the status quo reshaped, giving Apple significant control over sports for many years. Once in a partnership, it may be challenging to end the relationship.
Netflix as the House of Martell
If Netflix were akin to the House of Martell, known for its fertile lands, flourishing trade, and vast resources like exotic goods and spices in the region of Dorne, it would be considered one of the wealthiest entities in the realm of entertainment. Like House Martell, Netflix stands out for its disruptive and innovative strategies. The streaming giant revolutionised the sports documentary genre with hits like 'Drive to Survive', 'Last Dance', and 'Last Chance U'. In a groundbreaking move, Netflix recently sealed a $5 billion deal with WWE, securing popular programming such as RAW by 2025.
By leveraging Netflix's global reach and cutting-edge digital platform, WWE aims to transform how wrestling content is consumed and attract new audiences worldwide. WWE provides live, scripted Sports Entertainment for Netflix, which sits perfectly within their catalogue. Despite possessing different resources than industry giants like Amazon or Apple, Netflix matches their brand recognition and wide-reaching appeal. They need more financial resources to pursue more Tier One live sports rights. Still, they could explore forming strategic partnerships, like one with the House of Stark (representing the broadcasters). Such an alliance could solidify Netflix's leadership in sports documentaries and entertainment while enabling the broadcasters to keep a foothold in the live rights sector. Already, there is talk of a partnership between them and Disney, so this story has yet to reach its conclusion.
Alphabet as House Targaryen.
The House of Alphabet, which Google represents, has much in common with the famous House Targaryen regarding its digital dominance. As a search engine, Google is the leader on the internet. Additionally, with YouTube, which will be turning 20 next year (although Google acquired it in November 2006), Google has the top video-sharing platform.
Initially, there were a lot of copyrighted videos on YouTube. For the sports administrators, where exclusivity held significant value and was assiduously protected, it was seen as an upstart and 'exiled' from proper discussions. But like House Targaryen, Google search and YouTube were two of three dragon eggs which have hatched and grown into formidable monsters over the last two decades. The third egg is Gemini, their new large language model that is better than ChatGPT and may be the largest of all their dragons. Like in GOT, these three platforms symbolise Alphabet's power and conquest.
Like the Mother of Dragons, Google has patiently nurtured these platforms. With patience (20+ Years) and strong alliances, they have a world-beating digital content arsenal perfect for Sports. There are over 100 channels on YouTube TV and 30 more on YouTube Primetime Channels. With so many streaming options today, Primetime Channels was developed to make it easier for viewers to watch their content in one place without jumping from app to app. Google has done what the broadcasters have only just started to do!
There is no sporting federation, league, broadcaster or significant personality that does not have a YouTube platform, and those content creators and channels behind a paywall use their YT channels to offer content free of charge, rewarding Google with the initial revenue before receiving any of their income. That financial arrangement alone gives them power.
On the face of it, with all that content and earning power, their acquisition of the NFL's Sunday ticket seemed an odd strategic move. Still, it achieved 1.3 million sign-ups, adding to a subscriber list that, at the start of February 2024, was 8 million. Google boasts 122 million active daily users and 2.7 billion per month. They have built their empire, influencer by influencer and platform by platform. As a billion-dollar hedge fund investor told me recently, 'In the end, Google will win'.
Now, they are leveraging Gemini as an advanced AI and machine learning tool to personalise experiences, enhance recommendation systems, and refine user interfaces, giving them more advantages aligned with the latest technological advancements driving today's economy.
Until she lost it in the final series, I admired Daenerys's patience in navigating the political intrigue and alliances in her quest for the Iron Throne. Google exhibits a similar strategic and measured approach that positions it for enduring success. It understands the importance of cultivating partnerships, refining algorithms, and prioritising user experience, exemplifying a patient form of dominance that allows it to adapt fluidly to the ever-evolving dynamics of the sports streaming industry. With that vision, innovation and determination, they are poised to emerge victorious in its pursuit of digital supremacy and claim the iron throne. Sports federations, fans, athletes and leagues, to quote Daenerys Targaryen, '(They) can live in my new world, or they can die in their old one."
Conclusion
As the battle lines are drawn and the contenders position themselves for the showdown, we are witnessing a rivalry between traditional broadcasters and tech giants like Amazon, Apple, Netflix, and Alphabet. This competition promises to bring about innovation, strategic alliances, and a relentless pursuit of digital excellence, which could reshape the future of sports streaming. Each player is determined to make their mark and emerge as the leader in the industry. As viewers and fans, we eagerly await the unfolding drama of this high-stakes game of digital thrones, where only the most adaptable, visionary, and financially sound will come out victorious.
The Asset Value of Sports Content.
Maximising the Hidden Revenue in Sports through Effective Asset Management.
I began my TV career as a tape librarian thirty years ago. During that time, we manually inputted the videotape information onto physical cards. Thankfully, computerisation and digitisation have exponentially improved the quality and quantity of hardware and software applications available to support content collection, tagging and storage. As a result, there has been a noticeable enhancement in the speed of research and delivery of sports content clips, significantly improving content creators' storytelling capabilities. In the past, I would have a few hours to tell my friends about footage and angles of incidents not available to them but which I had seen in the Broadcast Centre before they were aired on TV, but now, people can access these clips instantly before they have left the stadium!
In today's digital era, sports content has become a valuable asset for organisations, athletes, and fans. From capturing the most memorable moments to reliving historical achievements, the power of sports content is immense. However, effectively managing, protecting, and monetising this content can be challenging. That's where asset management systems come into play. This article delves into the importance of investing in robust asset management systems. We will refer to them as VAMs. Visual Asset Management because they manage all of your optical media, but more familiar acronyms are Digital Asset Management (DAM), Production Asset Management (PAM), and Media Asset Management (MAM). All of them streamline content collection, storage, management, and distribution. By leveraging these systems, sports organisations can unlock the full potential of their visual assets and maximise revenue throughout the content lifecycle.
The Challenges of Monetising Archives:
Sports fans enjoy reminiscing, discussing, and reliving moments of their favourite sports teams, athletes and events. However, managing, protecting, and monetising sports organisations' archives is a problematic business model. Archive monetisation faces three primary challenges.
1. Unpredictable Revenue Sources:
Determining where revenue will come from is often uncertain, posing a challenge for sports organisations.
2. Revenue Prediction Difficulty:
It can be challenging to predict the potential revenue from an archive, making planning and resource allocation difficult.
3. High Cost of Sales (COS):
Collating and organising archives requires significant overhead costs, including the need for dedicated personnel to manage the process.
For instance, the owner of Jude Bellingham's first professional goal would only initially make a short return on their investment. Nonetheless, after his recent outstanding performances for Real Madrid and England, which have increased his exposure and celebrity, the value of that clip would have significantly increased. Suppose his career continues its current trajectory, and he scores the winning goal for England at the Euros or World Cup or a Champions League final goal for Real Madrid. In that case, that clip is a potential goldmine for the content owner. All the investment in storing and protecting it will eventually pay off.
A VAM will reduce COS.
Daily, around 2 to 3 billion digital photographs and videos are shared. Thanks to recent advancements in AI and more accessible editing, uploading and distribution processes, experts believe this number will double next year. The amount of content generated around a single event can be substantial in sports. Fans capture key moments of events such as the World Cup final on their phones and share them instantly or as a compilation later. Similarly, sports organisations and athletes' representatives also produce content at their events. There is so much content being made, and a lot of it is only suitable for the moment and can be discarded, but there will be actions that have long-term value, and the quicker those can be managed and protected, the easier it will be to retain their value. Using AI to speed up the management process (what is stored and what is discarded), a robust VAM will ensure the right content is protected and begin to lay the foundations for building the monetisation strategy.
With the advancement of software technology, providers have lowered the cost of their solutions. Another significant advancement is that some solutions can store all kinds of digital media, such as videos, photos, documents, audio clips, and more, onto a central server that can be accessed on-premises or via a private or public cloud. Organisations transitioning to a single system can effectively reduce the COS, centralise their media and increase their profit margins.
Content Movement During Live Events: Monetizing in Real-Time:
The rise of digital content creators in broadcasting live sports presents a massive opportunity for storytelling. To be successful, there is a need for a centralised hub that allows content creators to access, organise, track and distribute the content quickly and effortlessly.
Currently, most sports organisations and broadcasters separate video, photo, and audio content, which increases the cost of production and limits the ability of producers to access all of the content available for their storytelling purposes. The VAM offers real-time access to video feeds, photos, audio clips, scripts, statistics, graphics, and edited compilations, making more content available and giving producers more choices in how to tell their stories and where to distribute them. This would achieve a broader audience reach and increase engagement and viewership. The Tier 1 sports rights owners, powered by strong media rights revenue, already provide their partners with centralised hubs for content. Still, as the running costs have reduced and by using a centralised system for all content, all sports organisations can now efficiently capture and organise their visual content, and by doing so, they will be able to easily provide that content quickly and effectively to key partners, either free of charge or at a premium.
Powerful Archival Capabilities: Monetising Historical Content:
A well-set-up and maintained VAM system can benefit the creation and distribution of content around live sporting events. Still, its true power lies in its ability to store, manage, and preserve an organised archive. Proper logging, naming conventions, labelling and management (deciding what to keep and what to discard) are required to enable sports federations, athletes, and broadcasters to generate revenue from historical footage, interviews, photos, and other assets. In the past, this required a lot of manual labour, with an army of loggers, researchers, and developers inputting all the data necessary to facilitate searchability and develop the e-commerce requirements for customers to research, pay for, and download specific content.
Advancements in AI technology have and will continue to help with the management of the archive. With so much data being collected, it would be foolhardy and expensive to keep it all. By using AI and ML, companies can introduce automatic content analysis and tagging based on object, facial, and voice recognition. This will significantly reduce the manual effort required for content capture, retrieval and ongoing management allowing for optimisation of monetisation potential. Having all visual assets in one place makes it easier to manage the historical archive. For instance, using the Jude Bellingham example, if it is clear that his first professional goal has become a significant asset, it would be a simple procedure to re-tag and price that goal higher in the search and proceed accordingly, maybe even ensure that the whole match is kept and stored. Using AI, this kind of management requires a minimal workforce, but storing every visual media asset together allows all the images of that incident or match to be managed and priced accordingly. This approach helps solve the Revenue Prediction difficulty (Point 1 above) as organisations can begin to forecast the usage and value of each visual asset, predict its revenue potential and put a value on the whole archive.
Additionally, a cloud-based VAM system offers scalability, data security, backup, and 24/7 technical support that helps the sports organisation grow their archive while reducing on-site support and overhead requirements. Adding cloud-based licensing and distribution access reduces that further. They can increase the size, quality, and availability of their content and support that with an e-commerce platform that is accessible 24/7.
Conclusion:
In my 30+ years working in the sports media industry, I have witnessed extraordinary technological advancements in content capture, data, graphics, virtual production, editing, and distribution platforms. Having started my career as a librarian, I have always appreciated the importance of capturing and protecting content for future use. While Tier 1 sports federations have managed and monetised their archives well over the last decade or so, the reduction in overhead costs, along with the availability of a single solution that can handle all visual assets using AI and operate in the cloud, presents an opportunity for all sports and athletes to create and monetise their archives with ease.
Using content as an asset is a crucial revenue generation tool for organisations and individuals to stay competitive and thrive in the digital age. Installing a powerful and robust Asset Management system is essential to achieve this success.
At LCA, we understand the challenges and complexities of implementing and maximising Asset Management systems. Our expertise lets us advise companies on their set-up, management, and monetisation procedures. Additionally, we can support Asset Management system providers in entering and expanding further into the sports market by leveraging our vast network of contacts.
Embracing the Content Creator Economy:
A Gateway to Future Success for Broadcasters
Broadcasters are facing significant challenges within the rapidly evolving media landscape. Declining viewer numbers, audience fragmentation across platforms, and reduced revenue for broadcasters and rightsholders are just a few hurdles. These obstacles are compounded by viewer fatigue and younger audiences consuming sports content through multiple devices. Urgent action is required to address these issues.
The current media strategies broadcasters and some rights holders employ have proved ineffective in countering audience fragmentation. It is, therefore, crucial to adopt a fresh approach to digital content distribution that can engage and captivate audiences of all demographics in this decentralised media age. The emergence of the Content Creator economy offers a solution, revolutionising how audiences consume and interact with content.
Content creators have gained immense popularity by leveraging their unique perspectives and expertise to amass millions of followers. By embracing this transformative phenomenon, broadcasters can overcome the challenges of audience fragmentation and harness the power of authenticity and diversity to captivate viewers across multiple platforms.
Broadcasters are facing significant challenges within the rapidly evolving media landscape. Declining viewer numbers, audience fragmentation across platforms, and reduced revenue for broadcasters and rightsholders are just a few hurdles. These obstacles are compounded by viewer fatigue and younger audiences consuming sports content through multiple devices. Urgent action is required to address these issues.
Goldman Sachs predicts that the total addressable market of the content creator economy is expected to double in the next five years, reaching USD 480 billion by 2027, compared to USD 250 billion currently. This thriving market exists separately from traditional broadcasting. To ensure relevance, commercial growth, and fruitful brand partnerships, broadcasters must proactively invest in the content creator economy to support their operations and partners while regaining a broad and fragmented sports audience. This article explores the benefits of collaboration and outlines the advantages of restructuring broadcast businesses to accommodate content creators, benefiting sports and sports rights holders alike.
The Power of Collaboration - How Broadcasters and Content Creators Together Can Transform the Viewing Experience.
Content creators who produce unique and specific content that appeals to millions of viewers are successful. Athletes like Cristiano Ronaldo, Lionel Messi, Virat Kohli, Neymar, and LeBron James dominate social media with followers in the hundreds of millions. In comparison, leading broadcasters such as ESPN, SKY Sports, and BEIN Media Group, have a much smaller following, ranging from 2 million to 26 million. Beyond these professional groups, YouTubers like Jake Paul, KSI, and Tommy Fury have also generated millions of dollars in revenue by challenging each other to boxing matches. Then, many individuals have a specific sporting skill, such as hitting the crossbar outside the penalty area, chipping into a cup, scoring a basket from the halfway line, or displaying prodigious strength and flexibility. They all have one thing in common: using sports, in all its forms, to drive interest and revenue and to tell stories.
The primary objective of storytelling is to captivate the audience. Content creators have gained devoted followers by offering fresh and unique perspectives on how to tell stories. They provide various viewpoints, humour, analysis, statistics, and commentary on players, tactics, and coaches, which they produce from their living rooms or garages at a low cost. On the other hand, broadcasters deliver high-end, engaging and relevant stories through long-form programming. Their social media clips generally consist of cut-downs of the action from the live matches, behind-the-scenes footage, or clips from the studio discussions. Some broadcasters may supplement these primary feeds with digital second-screen services that provide data and additional insights. However, only some offer the personality or alternative commentary to an event that would suit YouTube, TikTok, Instagram, or other social media channels. These edgy and raw perspectives appeal to specific demographics, and potential viewers are switching away from the long form to engage with this alternative.
By collaborating with content creators, broadcasters can combine their expertise, budget, and leadership in the long-form space with the content creators' popularity, authenticity, and fresh perspectives to their short-form. This would deliver an enriched, broader, and more personalised viewing experience to all audience demographics via the main feed and supplementary feeds that offer alternative views in real-time, alongside behind-the-scenes analyses and interactive viewing experiences. A sport's power is its broad fanbase, but, like any community, the fanbase comprises people with different preferences. Broadcasters must provide a service to all these people, and the content creators are the key to achieving this.
This new approach would help broadcasters gain a competitive edge when bidding for new sports rights contracts. By offering different viewing options and more personalities to their output, which cater to individual preferences, they attract a broad audience that appeals to National Governing Bodies and Rights holders and the sponsors and brands that support their businesses. Additionally, by hiring and aligning the fandom of respected influencers and creators, NGBs benefit through association. There are advantages for content creators, too. Only a few make a financial return, needing upwards of 100,000 followers before earning significant money (+£50k p.a). However, collaborating with broadcasters, sponsors and NGBs, they utilise those companies' brand and marketing reach to promote themselves and their platforms with joint ventures that benefit all parties financially.
Embracing the Content Creator Economy:
Redesigning Broadcasters' Structures and Workflows
Redesigning their internal structures and workflows to embrace the content creator economy fully. This can be achieved by redefining job titles to reflect content creators’ roles and contributions accurately. Rather than using generic labels like "Digital Producer" or "Social Media Manager," broadcasters should adopt titles such as TikTok Producer, YouTuber, or Instagrammer that reflect each creator's unique skills. This approach appeals to the younger generation, which is vital to the industry and promotes better integration, collaboration, and respect between traditional broadcast teams and alternative content creators.
Several Tier 1 national governing bodies and sports rights holders have already taken steps to adopt new roles. To maintain leadership and relevance, broadcasters must follow suit. As media rights holders for sports events, broadcasters determine how events are covered. While live broadcast remains a priority, they must acknowledge that viewership is fragmented. To adapt, they should incorporate the needs of TikTok, YouTube, and Instagram producers and creators into the existing roles and responsibilities within traditional broadcasting. This will allow them to offer an exclusive viewing experience tailored to each platform's requirements without compromising image quality or cost structures. By embracing this approach, broadcasters can reinforce their position across all platforms, offering premium content that differentiates them from competitors. The collaboration would see them hire people with the unique expertise and audience requirements for each platform instead of managing social media channels under a single "digital" banner, each platform should be treated as a separate entity, with a dedicated person or team operating it under the broadcaster's umbrella.
Any engaging and highly shareable content captured can be utilised in the live, highlight and other long-form programs, providing a much-needed refresh and alternative storytelling perspective to that output while promoting the alternative viewing experiences on the broadcaster's social media platforms and the personalities behind them. Furthermore, this partnership opens various revenue opportunities for broadcasters. They can leverage this unique, multi-platform content offer and social media presence to establish lucrative brand partnerships, sponsorships, and advertising deals. By utilising the platforms of content creators, broadcasters can expand their viewership and increase their revenue potential.
Embracing this new approach comes with challenges. Traditionally, broadcasters have created and distributed content following set guidelines or messaging. Creators operate autonomously with a flexible, community-led system to suit their fans. Combining the two could dilute the broadcaster's overall brand identity. However, audiences are declining and moving away from long-form programming to seek alternative opinions and stories. Therefore, broadcasters must add and embrace a multi-platform, community-led approach to their guidelines. Developing each platform and expanding the creative license required to cater to its specific demographic would help their brand and, by analysing the results, continuously evolve their businesses to become active players in this burgeoning marketplace rather than being left on the sidelines.
Conclusion:
The Broadcast Industry faces several challenges, but these can be overcome with the right approach. By embracing digital platforms as independent entities and collaborating with skilled content creators from the burgeoning economy. By doing so, broadcasters can continue to provide the best viewing experience for sports enthusiasts while catering to their fan base's specific interests. By working together, both communities ensure that sports remain a united and vibrant community, viewed differently but collectively while still appealing to all generations.
Maximising Revenue Potential in the New Media Landscape of Sports and Sponsorship
‘The money is in the old media, but the future is in the new media’.
In a recent podcast, George Pyne, CEO of Bruin Capital, captures the views expressed by many sports executives over the last five years. Still, the question remains: Can New Media generate revenue comparable to Old Media, on which the sports industry depends?
For all its benefits, New Media has yet to make a significant revenue contribution to the sports industry, and, in many cases, because of how it is being deployed, it undermines rights holders’ broadcast and sponsorship incomes.
We suggest a new approach to content distribution that sees sports organisations return to content exclusivity across all platforms to maximise revenue in all verticals, highlighting the partnership between Apple and Major League Soccer as an example of how this approach has delivered significant revenue growth for a Tier 2 sport in the world’s largest sports market.
Speaking with a broad spectrum of industry experts over the past few months, several reoccurring themes have stood out:
1. Media rights through linear, Pay T.V. or OTT platforms (B2B) are still sports organisations’ most lucrative revenue generators. Live Content remains King!
2. Sports must build or maintain meaningful revenue streams through digital content distribution.
3. Sponsorship revenue in Tier 2 and 3 sports is flatlining or declining as rights holders must demonstrate a USP and value for money.
4. Culture and Community are increasingly important in the sponsorship evaluation process as metrics move beyond pure ‘eyeballs’ to partnerships that offer a more symbiotic relationship between sport and fan.
Exclusivity and Competition skyrocketed Sports Rights Revenue.
Following Rupert Murdoch’s resignation as Executive Chairman of NewsCorp, now is an opportune time to reflect on his commercial approach when he launched his Pay T.V. channels across the globe 35 years ago.
His strategy was that exclusive ownership of sports media rights was crucial to generating subscription revenue. Sam Chisholm, BSKYB CEO, famously said that when SKY bought the exclusive rights to the Premier League in the U.K. in 1992, it was; ‘like Christmas every day’ as people signed up for the service.
No surprise, then, that a critical strategic investment for his Fox network in the U.S. was to buy the exclusive rights to the NFL’s NFC TV package in a four-year, $1.6 billion deal. A slice of the country’s most popular and influential sports league helped put the network on the map.
Fox Sports and SKY, part of Comcast, are now both billion-dollar media conglomerates. They are considered among the top players in every sports media rights discussion, and Murdoch’s strategy became the global standard for sports media rights. Fans were aware that to watch their nation’s favourite sports, they had to subscribe to a platform that held exclusivity, and the platforms competed fiercely to acquire these rights and gain more market share.
In return, Rights Holders and National Governing Bodies (NGBs) assiduously protected their investment by preventing rival organisations from entering the stadium, controlling the amount of usage on news channels, and fighting piracy and other illegal uses of the footage and distribution. By doing so, they retained the value of their rights, and when those rights came up for renewal, they would have enough interest to run an auction. As a result, revenue growth was extraordinary.
The onset of digital content distribution initially created more competition. NGBs saw an additional revenue opportunity, and some separated the digital rights from the broadcast rights by selling them to new partners or retaining them for use themselves. Content Partnerships replaced Exclusivity.
At first, digital and OTT platform owners believed the demand for sports content was limitless, leading to a significant revenue increase. However, this assumption was false as subscription fatigue set in, and many early digital platforms couldn’t afford their rights outlay and either sold them back to the main broadcasters or closed their business. By recognising the threat, Broadcasters adopted streaming technology. They offered Content Everywhere options with the expansion of broadband, allowing them to add digital services to their linear ones and include home phone and other entertainment packages as part of a subscription bundle. This new marketplace interested the telcos, and between 2010 and 2019, with a broader market to compete in, rights fees again skyrocketed.
Digital distribution, in turn, led to the rise of social media, revolutionising how people consume content. Initially, this was seen as the new marketplace for sports, opening the possibility of D2C replacing B2B. In the last five years, there has been a notable shift in the audience’s preferences from traditional media channels to digital, streaming, and social media, but the revenue has yet to follow.
Social media is an effective tool to connect with others and, through short, shareable content, provide the potential to reach a vast global audience with minimal cost. It has been a great addition to Tier 1 sports’ offering alongside their large media rights income. Beneath this level, though, many NGBs have hoped that making their content freely available will attract as many viewers as possible and reap financial rewards. However, this strategy has not been as successful as expected. Instead, it has disrupted traditional storytelling, devalued long-form content, allowed viewers to be far more selective, created a confusing narrative with many stakeholders competing on the same platforms, and reduced content exclusivity, ultimately declining the NGBs’ primary revenue sources, such as media rights and sponsorship.
Free access to content on social media has reduced MRPs income potential, and Telcos and cable companies are divesting their interest in sports, leading to significant revenue loss. Given that media rights remain the most crucial revenue source for NGBs, they would do well to adopt a new approach to digital content distribution.
21st Century Multi-Platform Content Exclusivity
Rights holders and NGBs selling all content rights, including broadcast, digital, and social media, to their media rights partners (MRPs), allow everyone involved (NGBs, teams, leagues, athletes, and sponsors) to work together in promoting the content delivered by the MRPs. It ensures that a single provider offers live, long, and short-form content. It achieves maximum engagement by driving the audience to that platform using social media channels. This approach would help fans find the content they want more quickly.
According to Nielsen’s June 2023 Streaming Content Consumer Survey, with so many platforms to choose from, audience members now spend an average of 10-and-a-half minutes searching for something to watch, up from almost seven-and-a-half minutes in early 2019. In addition, 20% of audiences say they don’t know what to watch before they start looking and can’t find something to watch, leading them to decide to do something else. Alongside subscription fatigue, this fatigue from searching for content is becoming increasingly problematic; exclusive content distribution reduces that.
In return for the exclusive rights, the MRPs should be allowed and encouraged to livestream and distribute all the build-up, in-match, and post-event content across all their broadcast, social, and digital channels. This will help them reach a larger audience and benefit from live and long-form viewership, which they invest in currently and the engagements, shares, likes, and other interactions from short-form content generated throughout the event. It will bring the audience into their content ecosystem, delivering sponsorship and subscription value and a revenue return on their investment.
To remain at the forefront of digital and social content engagement and distribution, MRPs must invest in the resources, content creators’ expertise, personality, and technology to suit every platform and audience demographic. They should share their strategy, people, resources, and delivery schedule with all stakeholders. The goal is to generate a virtuous circle of content distribution from a single provider that continuously rolls for everyone’s benefit.
Taking a bite out of the Apple and MLS Partnership
Recently, one of the most talked about broadcast media rights partnerships was the one between Apple and Major League Soccer (MLS) in the U.S. This is an excellent example of how a federation, broadcaster, teams, and athletes have combined for a single purpose.
The billboard announcing Lionel Messi’s arrival encapsulates that partnership. The GOAT was Messi, the Pink was Inter Miami, and the message promoted Apple as the broadcast partner. Simple and brilliant.
With the launch of the season on Apple TV+, every time Messi scores a stunning goal, it is shared across social media channels, making Apple’s 10-year $2.5 billion investment in this Tier 2 Sport appear more intelligent each week. Almost everyone who is a Messi, soccer, or MLS fan knows that an Apple T.V. subscription is required to watch his games in the MLS. As Eddy Cue, SVP of Services at Apple said in a recent article,
“For the first time in the history of sports, fans will be able to access everything from a major professional sports league in one place. It’s a dream come true for MLS fans, soccer fans, and anyone who loves sports. No fragmentation, no frustration — just the flexibility to sign up for one convenient service that gives you everything MLS, anywhere and anytime you want to watch.”
In return, Apple has offered the MLS an extensive distribution network, continuous content creation, technological innovation, and adoption to globalise the MLS as a sporting product and stay at the forefront of the ever-changing sports media landscape. They will monitor all the emerging technologies, consumer behaviours, and evolving trends to identify new revenue streams and engagement opportunities, including virtual headsets, Web 3, Blockchain and NFTs. Apple’s agility will allow the partnership to capitalise on the full potential of current and new platforms and technologies while maintaining a solid foundation in traditional, paying media channels.
While achieving a global rights deal of this magnitude is beyond many sports, the principles of the agreement and how going all in with your media rights partner is a compelling business strategy for sports moving forward.
Conclusion:
The future of sports and media lies in new media. Still, it can only be considered the ultimate revenue source once it generates revenue that can match or exceed the revenue generated by traditional media. Traditional media companies and new players like Amazon, YouTube, and Apple hold the golden egg of the sports rights industry: ownership of long-term broadcast or digital streaming media rights. To keep these institutions interested, a competitive, exclusive, cross-platform marketplace must be created for them to benefit from.
Protecting this asset is essential, as it would be in any other market. NGBs need to ensure that their content remains of the highest value to these institutions and, in return for their money, trust that they have every available digital communication channel, the necessary expertise, personalities, and network to distribute their Content and message effectively.
The success of competitive auctioning of media rights resulted from the exclusive nature of sports. Applying this approach in today’s decentralised content market can revitalise it. NGBs and their partners should focus on developing strategies to offer rights and ownership to MRPs that expand this revenue stream and protect their most valuable assets.
Advancements in Virtual Production and Advertising: An Updated Look at the Growing Importance in Sports
Since publishing the article, The Growing Importance of Virtual Production and Advertising in Sports (see below) in July, LCA has received many calls and enquiries from companies and people developing and selling Virtual Production solutions, brands, and investors interested in virtual advertising. The appetite to adopt virtual solutions is strong, and the technology is improving quickly, creating solutions for multi-camera broadcasts and, most excitingly, the ability to enhance recorded and archive content.
We have updated the article to reflect those conversations and to outline the opportunities around the advancements. Undoubtedly, virtual advertising and production is the technology that has garnered the most interest in the market. It has opened up many opportunities for Sports organisations and their potential partners quicker than expected, generating investor interest—a sign of its growth.
The number of companies offering solutions has grown, which has provided healthy competition, technology advancements and the attention of the substantial new player in the market.
The acceleration to Virtual.
The number of broadcasters with virtual studios is too many to list. In sports, many increasingly adopt a virtual studio or environment to present the event. It’s not new, but the increase is still noticeable. In the UK, ITV Sport will present the RWC from a virtual studio in London, BBC Sport covered the recent World Cup in Australia and New Zealand from a virtual studio in Manchester until the end of the quarter-finals, and Premier League Productions have delivered their broadcasts to the international market via a virtual studio in Stockley Park. The trend is global as well; in the US, Fox Sports delivered a unique virtual set as part of their flagship NFL coverage, and across Asia, broadcasters choose virtual studios for their sports and major entertainment events. Reporters and commentators travel and work on-site while presenters and guests stay in their home country in a green screen studio with a fantastic variety of virtual backdrops to engage the viewer and tell the story.
Commercially, Sports organisations are quickly becoming attracted to the value of Virtual Advertising. Vendors such as Supponor, Uniq-Feed, Brand Brigade, Sponixtech and Vizrt have signed significant long-term partnerships with federations to replace the advertising on the LED Perimeter boards and camera carpets (on pitch advertising) inside stadiums with regionalised brand messages applied virtually. The number of vendors is increasing each year. Commercial agencies collaborate with vendors to offer commercial inventory sales alongside tech, a strong GTM strategy for federations to consider.
A Multi-Camera set up:
Speaking to federations and broadcasters, their main complaint about virtual advertising solutions is that they can only be applied to a single camera. The vendors argue, rightly that over 75% of the broadcast is delivered from the main angle camera. However, for sports like tennis, where there are plenty of close-ups of the players post rally or in Rugby, where a tighter (closer) shot of the action is used more often than in a sport like Soccer or American Football, there is an increasing need to be able to replicate the background of the virtualised angle on a tighter shot. Also, in soccer, with VAR now standard in all top-tier competitions, adding virtual advertising to the 18-yard angle provides airtime and revenue opportunities on that camera angle to a sponsor.
There are technical challenges with matching the cameras correctly to cut between the two (or more) seamlessly, and specific vendor solutions are better suited to it than others. Still, it is achievable and a terrific addition to offer as part of the list of requirements in any commercial discussion.
Virtualising recorded content: A new Goldmine:
While leading production departments, I prioritised incorporating any new technologies I was presented with across our content offerings. Consistent standards for live, post-produced, and short-form content were crucial. In the past, virtual production techniques like AR and VR were only available during live broadcasts. Adding it to recorded content is a fantastic development that should unlock more revenue-generation options.
The change in audience preferences has been a critical driver for this shift. It's important to note that Gen Z is now the most important new market for sports organisations, so creating content that meets their needs is a top priority. Compared to millennials, this group is 10% less likely to watch sports often and twice as likely not to watch sports at all. However, half of those between 18 and 34 who watch sports prefer watching highlights over full games. Therefore, the industry must focus on virtualising highlight programs, short-form clips, and live broadcasts.
Archived sports content can be a highly lucrative revenue stream for sports organisations. Fans often enjoy revisiting memorable historical moments, such as Messi’s first goal in the MLS. This content can be utilised to promote new seasons, market upcoming matches, and leverage athletes’ NIL (Name, Image and Likeness). With the ability to add virtual advertising to a recording years later, sports organisations provide themselves with a repeated opportunity to monetise this commercial inventory. As the market for live rights fees dwindles, this presents a new and untapped market for sports owners to benefit from their archive footage.
Augmented reality (AR) and data integration are crucial in delivering real-time information visually and appealing to fans' demands. Adding localised graphics, commentary, and advertising to live and recorded content creates a continuous, virtuous circle of revenue generation that caters to Gen Z’s habits and supports sports organisations’ revenue and budgetary requirements.
Epic, Unreal and an Avalanche.
During discussions with investors, significant graphics and virtual production vendors, there was a sense of apprehension surrounding Epic Games and their future plans. After launching UE5 in May 2020, the company announced their intentions to become a comprehensive graphics provider, which understandably made existing vendors nervous. In November 2022, Epic Games unveiled Project Avalanche, a revolutionary platform that enables broadcasters to design and deploy an entire graphics package from a single environment. ESPN put it to the test during the Rose Parade in January 2023, and with further announcements expected from Epic’s partners at IBC later this month, a new technology with significant game-changing potential is set to become widely available in the graphics and virtual production market.
The Unreal Engine is an incredibly versatile tool that can be used for various applications, including creating immersive virtual studios, real-time graphics, interactive storytelling, enhanced sports broadcasts, and virtual reality experiences. It is user-friendly, especially for beginners who have used Unreal before, is easy to integrate into the existing broadcast workflow and has the potential to transform the way content is presented and engages viewers. It can support and deliver all virtual requirements for live and post-produced content.
UE5 is set to revolutionise the broadcast graphics landscape for two reasons. Firstly, the engine has a robust community of developers who continuously contribute to its improvement and innovation. Compared to the current market, where many broadcasters are frustrated with the slow pace of development, UE5's community-driven approach ensures a faster and more responsive development process.
Secondly, the affordability of UE5 is a game-changer. With its vast revenues generated through gaming products, Epic can afford to set a price that suits the market. This will drive the cost of graphics down for broadcasters, making it possible for a broader range of broadcasters to access its advanced capabilities.
UE5's powerful, easy-to-use features can significantly enhance broadcasts, creating immersive experiences and offering solutions for virtual advertising, regionalisation, language customisation, and more. As UE5 brings creative and immersive experiences to the forefront of the broadcast industry, the future holds exciting possibilities.
The Advancements in AI (Artificial Intelligence)
Supporting UE and all the other engines is AI. Thanks to AI, virtual production and advertising solutions are becoming more accessible, easier and faster to install. Software is replacing hardware, and the cloud has replaced on-premise. These technological progressions have facilitated the development of new solutions, enabling sports organisations to create compelling virtual content.
How LCA Can Help
LCA specialises in providing expert guidance to sports organisations looking to set up virtual production solutions and advertising strategies. We understand the complexities involved and can help explain the steps required, identify the leading service and commercial companies involved, and evaluate their setups. Our expertise ensures that clients are well-informed and can make informed decisions that align with their goals and objectives. By partnering with LCA, sports organisations can leverage our experience and knowledge to create compelling virtual content and maximise revenue generation potential.
Conclusion
It has been a fascinating summer hearing about the advancements in virtual production technology, and my thanks to the companies and people supporting my research. The technology has opened many opportunities for the sports industry and its potential partners. The trend is global, and the appetite to adopt the technology is strong, generating significant investor interest. The number of companies offering solutions has grown, providing healthy competition, technology advancements, and the attention of a substantial new player in the market.
As a trend, virtual production and advertising have quickly become the norm in sports broadcasting. It is complex to get right, but software and AI will reduce that, increasing its use. It supports audience trends, too. It will be the backbone behind immersive experiences, and whilst the live telecast of a major sporting event remains the most viewed, adding the ability to virtualise the recorded content is a fantastic development that should ensure consistency and increase viewership, resulting in increased revenue-generation options for the industry maintaining its growth.
Embracing the Cloud in Sports Broadcasting: Unleashing Unprecedented Potential for Innovation and Growth
Sports broadcasting is an ever-evolving industry, but production and distribution costs are rising with increasing demands. To help stem this tide, organisations need to turn to technology to support the editorial and commercial demands, and cloud technology is critical in its transformation.
For content creation and distribution teams in sports organisations, embracing cloud technology and developing proficiency for live production and distribution will broaden their service offering whilst keeping costs affordable.
There is an increasing selection of cloud-based software products that are suitable substitutes for traditional hardware in the production and distribution of content. These options cater to the needs of broadcasters, federations, and sports organisations and can even exceed their requirements. While some organisations have private cloud services, major providers such as AWS, Google, Oracle, and Azure offer reliable and robust solutions. Despite the availability of these resources, it is still being determined why the transition to cloud-based solutions has yet to become the industry norm.
While cost may appear a significant obstacle, the long-term benefits of reduced hardware costs and improved redundancy expenses make it a negligible concern. Instead, other perceived obstacles are preventing the adoption of cloud technology in the sports industry. These include a need for more trust in its capabilities and a limited understanding of its potential applications. Additionally, many industry veterans need to learn new skills, and established technology companies may hesitate to relinquish their investments in traditional hardware. Overcoming these challenges is critical to realising the full potential of cloud technology in sports broadcasting and making the industry more attractive and relevant to younger generations.
With over 30 years of experience as a sports media consultant, I have seen the industry evolve alongside technological advancements. In recent years, I've embraced fibre optic and IP-based production services and have sold cloud-based technology. Through my conversations with broadcasters and creators worldwide, it's clear that the potential for using the Cloud to revolutionise the industry is immense. However, no one wants to be the first to take the giant leap. While baby steps are being taken, a complete transition has yet to occur. Technology teams know that cloud-based systems can meet their companies' technological, editorial, and commercial needs, but they need more support to adopt this environment. Executive leadership will be required to drive and support these changes.
Revealing the Boundless Capabilities of the Cloud.
Cloud-based solutions have already proven their capabilities in supporting live production of single sporting events with up to 8–12 camera coverage. But the true potential of the Cloud, commercially and editorially, comes into focus for the major events that involve hundreds of cameras and countless content creation sources over multiple locations. Billions of people consume the content, and to manage this, the Cloud load balances the feeds to ensure smooth distribution and optimal performance. Sharing the signal workload among multiple servers enables scalability, redundancy, and efficient resource allocation, and it also opens the door to an editorial and commercial revolution.
During live match day transmissions, broadcast and sports production teams often work independently, creating content for their respective purposes without collaborating. However, Cloud technology can revolutionise this process. A centralised cloud-based platform enables teams to share content seamlessly, collaborate, and enhance storytelling. While digital content creators using smaller devices can capture content faster, traditional broadcasters or camera operators have better quality content. They can capture closer, more meaningful images that are perfect for social media. By utilising the Cloud, both teams can access, manipulate, and distribute a wider range of content equally and in real time, choosing the best pieces for their needs. By combining resources, organisations can improve their ability to deliver engaging and revenue-generating broadcasts and ensure that their investment in content creation is shared across all platforms. Broadcasters should take advantage of every available resource to increase their media value and deliver the best viewing experience to their audience.
The Cloud can Regionalise and Localise.
Sports advertising has entered a new era with Virtual Advertising. It allows brands to display their logos in different languages and regions, creating new revenue opportunities. However, companies need assistance to reach all territories. With the help of the public Cloud and load-balanced distribution methods, companies can sell directly into specific markets such as China, Japan, Korea, Saudi Arabia, Dubai, Vietnam etc. The next step is localisation, creating personalised feeds for individual fans, using data collected by Sports Organisations and Major Clubs, and backed up by databases from Amazon, Google, Apple, TikTok, and others. The Cloud is the most cost-effective technology platform to achieve this. Companies should embrace this technology and subscribe to the products of technology companies to stay ahead in the game.
Strengthening Security and Overcoming Piracy Concerns
Sports broadcasting is still vulnerable to piracy, which can affect revenue and downgrade the value of exclusive content. However, using the Cloud can help reduce these risks by enabling federations to control who can access their feeds better. Content distribution becomes secure and tamper-proof through adequate security measures like access management protocols and encryption technologies. This builds trust and protects intellectual property.
Conclusion
Cloud technology has the potential to revolutionise sports broadcasting by providing exceptional capabilities. By using the Cloud for content creation, distribution, and revenue generation, broadcasters and federations can unlock new opportunities, increase their return on investment, engage more viewers, and position themselves as pioneers in the sports broadcasting industry. In addition, adopting Cloud technology can help organisations attract talented individuals who excel in flexible environments, such as content creators, engineers, and innovators. The agility and scalability of Cloud technology fosters a dynamic workforce that embraces emerging technologies and innovative production workflows. By embracing the Cloud, the sports broadcasting industry can continue to evolve and attract the necessary talent to push achievable boundaries. CEOs, CFOs, and CROs should encourage their technical teams to explore the potential of Cloud technology and provide comprehensive reports on its creative, collaborative, cost-effective, and sustainable benefits and its appeal to future industry professionals.
Revolutionising Sports Organisations Strategy:
Introducing the Blue Ocean Strategy Canvas Approach
In the competitive sports industry, finding new markets and differentiating oneself from competitors is crucial for success. Sports and sales companies often rely on assumptions and stick to tried and tested methods, limiting their potential. This article explores the benefits of adopting the strategy canvas approach, a powerful tool originating from the Blue Ocean Strategy, and how it helps organisations challenge assumptions, embrace clarity, and drive success in the dynamic sports industry.
The Limitations of Traditional Strategies:
Traditional strategies, rooted in assumptions and tried and tested methods, can keep sports organisations from reaching their full potential. These approaches often rely on established market competing ways, which may lead to something other than breakthrough growth. Organisations must go beyond traditional thinking and leverage data analysis to inform their strategies.
The Power of the Strategy Canvas:
The strategy canvas approach brings a paradigm shift by encouraging sports organisations to challenge assumptions, uncover hidden biases, and embrace data and market trends for informed decision-making. By examining key metrics, industry dynamics, and customer insights, organisations gain a competitive advantage and ensure their strategies are rooted in solid foundations.
Challenging Assumptions, Embracing Clarity:
Assumptions can be the Achilles' heel of sports organisations, leading to misguided strategies and missed opportunities. The strategy canvas approach prompts organisations to challenge assumptions and uncover hidden biases. By embracing clarity and questioning long-held beliefs, sports and sales companies can adapt to changing market dynamics, identify new revenue streams, and drive innovation within their industry.
Harnessing the Power of Data Analysis:
Data analysis is crucial in the strategy canvas approach. By examining key metrics, organisations gain valuable insights about their industry, target audiences, and competitive landscapes. This data-driven approach ensures that strategies are built on solid foundations and not solely on assumptions or outdated practices. It enables organisations to make informed decisions and pursue new growth opportunities.
Customising the Strategy Canvas for Sports Success:
LCA recognises that the sports industry has unique challenges and opportunities. LCA tailors the strategy canvas approach specifically for sports organisations by combining strategy and industry expertise. This custom approach provides industry-specific insights, helping organisations understand revenue generators, customer behaviour, and emerging trends. It empowers sports companies to develop tailor-made strategies for their needs, setting them apart from the competition.
Conclusion:
Implementing the strategy canvas approach in the sports industry can revolutionise organisations' strategies and propel them towards success. By challenging assumptions, embracing clarity, and leveraging data analysis and market trends, sports organisations can unlock new opportunities, drive innovation, and differentiate themselves from competitors. Partner with LCA to unlock the true potential of your sports company and leverage the Blue Ocean Strategy canvas approach to outperform the competition in the dynamic sports industry.
The Premier League's Content Creation Success.
The Premier League's tremendous success in generating media rights revenue is supported by its unwavering focus and investment in content creation, and as they look to broaden its rights market, this dedication would not have gone unnoticed by digital-first giants such as Apple, Amazon, and YouTube. Should they invest, they would be highly attracted to the Premier League's ability to deliver compelling digital content.
By constantly driving innovation and adapting content strategies, the Premier League remains the leading domestic league globally, securing rights and valuable partnerships with these emerging powerhouses in the digital space.
While working on Premier League broadcasts, the demand for fresh and engaging content ideas was constant. From offering three live matches per week and 32 weekly highlight and preview shows in 1998, Premier League Productions (PLP) evolved to launch a 24/7 TV channel alongside a core service of 380 live matches, highlights show, previews, special features, classic matches, studio programs, goals and review shows, news bulletins, and phone-ins.
With the shift towards streaming and OTT, the league's content has further evolved to support digital integration. While the priority remains live matches, highlights, and previews, the focus now lies on seamlessly integrating content with the digital platforms of their customers. This shift caters to a younger and more diverse audience and widens their market to attract the likes of Apple, Amazon, and Google in the sports rights market.
The 24/7 channel has scaled back to allow PLP's digital department to flourish, providing instantly available clips, highlights, news, previews, player and manager updates, and captivating stories to broadcast partners. The league now offers highlights packages ranging from 30, 12, to 6 minutes of every match shortly after full-time. A live, data-rich service called the 'Data zone' has been developed to focus on game and player data. Offering these services requires significant investment in people and facilities by the League, but by doing so, they not only support their partners creatively and digitally but also help them low production budgets in return for a rights fee. For Apple, Amazon and Google, hours of content are immediately available to support any rights investment, reducing the need to build internal production teams for their acquisition.
I am honoured to have been involved in the Premier League's production and broadcasts, contributing to the evolution of its content strategy. The league serves as a shining example for sports federations, broadcasters, and content creators, constantly engaging international and domestic audiences through groundbreaking shows, a 24/7 content service, and a seamless transition to digital platforms. Embracing change and continuously revamping content creation approaches is essential to remain relevant and appealing to fans in the ever-evolving world of sports broadcasting.
At LCA, we specialise in helping clients map their content creation plans and achieve success in their respective sports industries. Let us work together to keep you at the forefront of your industry.
The Growing Power of Women's Sports:
A Window of Opportunity
An estimated 2 billion people have tuned in to watch the FIFA Women's World Cup in Australia and New Zealand, which finishes this weekend. It has been the most competitive and showcases the best women's sports, with record attendance, thrilling matches, and inspiring stories. These highlights prove women’s sports’ tremendous growth and potential, making it the perfect time to invest further in this area. Although it's been challenging for those in the northern hemisphere to watch games live, extensive press coverage and digital catch-up services have made it easy to keep up with all the action. This tournament represents a significant milestone in the growth of women's sports, emphasising investment opportunities.
The UK’s perception of women’s sports significantly shifted during the 2012 London Olympics. With women comprising 44% of competing athletes, they won 36% of all Team GB medals, including the country's first golds in sports like taekwondo, boxing, and dressage. Women's field hockey, rowing, and cycling also claimed historic victories. These achievements changed attitudes toward women’s sports and attracted massive viewership. Globally, 4.8 billion people watched the Olympics, with 90% of the UK population tuning into the BBC's coverage. Since then, viewership of women's sports has increased by a staggering 700%, and experts project further growth of approximately 87.5% annually. By the end of the next decade, the viewership of women's sports could grow to over twelve times its current size.
Despite limited media coverage, stereotypes, sponsorship hurdles, and infrastructure gaps, women's sports organisations and content creators have tackled these issues with engaging and clever strategies, particularly on social media. As a result, major brands like Nike, Adidas, Barclays, and TikTok are now investing in female sports.
The potential for women's sports to attract the Gen Z audience is becoming increasingly apparent. As this demographic gains more financial independence and empowerment over the next decade, the popularity of women’s sports is expected to grow. This is reflected in the significant number of women who use social media platforms such as TikTok, Snapchat, Pinterest, Instagram, and YouTube, which provides an excellent opportunity for increased viewership. Brands can tap into this powerful consumer group by delivering compelling, authentic, and female-centric content on their smartphones to drive engagement and revenue.
Furthermore, technological advances, such as virtual production and advertising solutions, present additional opportunities for women's sports to reach a global audience. By leveraging localised coverage and appealing to the diverse range of products and brands that attract women, federations, leagues, teams, broadcasters, and content creators can unlock untapped revenue potential. The FIFA Women's World Cup schedule is just one example of how more fans can enjoy female football. As women's sports continue to gain a larger domestic and international audience, the time is ripe for investment across the corporate landscape.
At LCA, we are dedicated advocates of women's sports and can help organisations develop content creation and production strategies to support their growth. With the right approach, women's sports can achieve similar returns to men's sports over the next decade.
The Growing Importance of Virtual Production and Advertising in Sports
As Sports Media executives, we have seen a significant change in how sports events are produced and marketed. Gone are the days when traditional advertising was the only way to attract sponsors and generate revenue. The advent of virtual production and advertising has opened up new opportunities for federations, team owners, and brands. In this blog, we will explore the growing trend of virtual output and advertising in sports. We will discuss how it becomes the next natural revenue-generating frontier in the Live Sports landscape.
Why Virtual
According to a report by MarketsandMarkets, the global virtual advertising market is expected to grow from $12.9 billion in 2021 to $31.1 billion by 2026, at a CAGR of 19.3% during the forecast period. This growth is driven by factors such as the increasing adoption of augmented reality in advertising, the growth of the e-commerce industry, and technological advancements.
In the sports industry specifically, a report by Allied Market Research has estimated the global sports market to be worth around $600 billion today and highlighted the increasing adoption of virtual advertising in sports as a significant driver of the market's growth.
While the exact figures for the potential revenue growth of virtual advertising in sports may vary based on various factors such as geographical regions, specific sports, and adoption rates, the overall trend suggests significant potential for revenue growth in the industry.
Regionalised Advertising in the Local Language
One of the most significant revenue generation capabilities of virtual production and advertising is the ability to offer regionalised advertising in the local language. This can support the multiple languages offered in commentary, ensuring viewers are engaged and the message is delivered effectively. By offering regionalised advertising, sports organisations can attract more sponsors looking to target specific markets, increasing the revenue stream.
Visual Enhancement with AR (Augmented Reality)
Another significant advantage of virtual production and advertising is how it enhances the visual experience. Augmented Reality (AR) helps create an immersive and engaging experience for viewers, essential in today's fast-moving digital landscape. Capturing the eyeball and the metric by which advertisers assess a product before sponsoring it is vital. AR provides exceptional engagement and interactivity, making viewers feel part of the action. This creates a closer connection between fans and the sport, maximising the impact of the advertising.
Displaying Live Sports Data
Using AR to show Live data is now a ‘must-have’ for sports. Fans want real-time information delivered in a visually compelling way. As sports fans are increasingly connected through various digital channels, providing information in ways that create social engagement and conversations is essential. It makes what in the past was called ‘Water Cooler Moments’ – memorable events that people talk about long after the actual game is over. With AR, fans can access engaging and interactive content that draws them closer to the sport, making it more enjoyable and increasing engagement. AR technology makes visual data more content-friendly and shareable, allowing fans to share, like and respond to it. Therefore, the Live Sports data presented using AR is becoming an essential element of the sports industry. It provides engaging content to fans and entices them to watch and learn more about their favourite sports and teams.
The Advancements in AI (Artificial Intelligence)
With the advent of AI, virtual production and advertising solutions are becoming more accessible and faster to install. Software is replacing hardware, and the cloud has replaced on-premise. These technological progressions have facilitated the development of new solutions, enabling sports organisations to create compelling virtual content. The number of solution providers is increasing rapidly, and the demand for their services is expected to grow significantly.
How LCA Can Help
LCA specialises in providing expert guidance to sports organisations looking to set up virtual production solutions and advertising strategies. We understand the complexities involved and can help explain the steps required, identify the leading service and commercial companies involved, and evaluate their setups. Our expertise ensures that clients are well informed and can make informed decisions that align with their goals and objectives. By partnering with LCA, sports organisations can leverage our experience and knowledge to create compelling virtual content and maximise revenue generation potential.
Conclusion
Virtual production and advertising are becoming critical components of the sports industry. They offer a range of benefits, including regionalised advertising, AR-enhanced visual experience, and significant revenue generation capabilities. With the advancements in AI, virtual production and advertising are becoming more accessible, and the number of solution providers is increasing rapidly. LCA is at the forefront of this trend and is well-positioned to help federations, team owners, and brands achieve their objectives in this new and exciting area of sports marketing. If you're looking for a partner to help create a sustainable sports partnership that drives business growth, look no further than LCA.
Sports Broadcast Technology
Supercharging Content and Revenue with AI
We are on the cusp of a new era in sports where technology transforms how we engage with fans and tell stories. With major events such as the Euros, Olympics and Paralympics on the horizon in 2024, it's clear that sports businesses must adapt to the evolving world of sports technology to stay ahead of the competition. Fortunately, the future is bright with rapid innovation in interactive broadcast technology, virtual productions and Artificial Intelligence (AI). With LCA’s support, your sports business can successfully navigate this exciting new content creation phase.
AI is changing the game regarding sports broadcasting and content creation. In the financial markets, investment decisions, which used to take a day, can now be done in an hour! If you consider sports broadcasting, ABC delivered the first HD transmission around the Super Bowl in January 2000, but it wasn’t until 2015 that every network was broadcasting its episodes in HD. AI could reduce that transition to months. In 2024, Sports organisations that fail to use AI software for social media, marketing, basic graphics, and audio functions risk falling behind in fan engagement. This summer, the AELTC will use IBM's AI-generated audio commentary and captions in its online highlights videos, which will replace human commentators and allow for more content to be shown with voice-over. Not many would have predicted that 12 months ago.
AI is also improving data visualisations, creating and displaying real-time data on complicated sports like F1, MotoGP, Sailing and Alpine skiing easier. AI keeps viewers engaged by tracking cars, boats and athletes, adding informative, predictive data, which helps the viewer understand what is happening and what will happen. Additionally, AI will assist organisations in moving their content creation and production systems to the cloud, the most cost-effective and sustainable option. However, trust in the cloud is a significant barrier, but with AI automating cloud deployment tools, that barrier to entry is lowered, and the trust in this technology will grow and, in turn, broaden content offerings. This is a vast and significant step forward.
If AI enables sports businesses to produce their content more efficiently, it will help them monetise it more effectively. By leveraging their archive, content, broadcasts and social media platforms, they can deliver short and long-form content quickly and efficiently; this flow of content keeps fans invested in the sport long after the actual event has finished, growing a more permanent fanbase which will encourage sponsors and brands to support and fund.
LCA can help you plan and implement the right content strategy for your business. Our extensive knowledge of the marketplace, the products available, and our network of partners and experts in various fields, such as production, content creation, cloud technology, marketing, revenue generation and data integration.
In conclusion, AI is poised to transform the field of sports broadcasting and content creation, and sports businesses that embrace it will have a clear advantage in the ever-evolving landscape of sports technology. From improving visualisations to automating cloud deployment, AI holds limitless potential for innovation, and LCA is here to help our clients succeed in this exciting new phase of sports technology.
The Evolution of Sports Broadcasting: Embracing the Future of Web3, Blockchain, AI, and Cloud Solutions — A Time-Dependent Transition.
As someone who loves sports, I've noticed how dedicated fans are to attending live events and how quickly they've embraced technology. Thanks to technological advancements, fans no longer have to wait in line or on the phone to buy tickets. They can now easily keep up with their favourite teams and athletes through their screens. In my 30+ years in the sports media industry, we've responded to these changes by providing enhanced multi-screen usage, real-time engagement, betting opportunities, and social media sharing. Broadcasting companies and over-the-top (OTT) providers have improved the viewing experience with graphics, data, and more. This article will explore how integrating Web3, blockchain, AI, and cloud-based solutions is taking the future of sports production and fandom to new heights. However, in a traditional market like sports, proponents and vendors of these technologies need to understand that it must be an evolving approach, not a complete revolution. This will allow for a smooth transition between old and new technologies.
Embracing the Power of Web3, Blockchain, and NFTs:
The future of sports fandom and viewership lies in providing participants with ultimate control and choice. By leveraging Web3 technology, blockchain, and non-fungible tokens (NFTs), sports organisations, broadcasters, and streaming services can offer personalised experiences, security, advertising, and exclusive offers in exchange for brand loyalty, rewards, subscriptions, and merchandising revenue. Unlike the current Web 2 environment, which relies on centralised entities to manage data and content, Web 3 provides a decentralised approach, allowing users more control over their data, interactions, and value extraction.
But to convince a sports organisation to transition from Web 2 to Web 3, it has to be as smooth as possible. They want to maintain their hard-earned fan base while attracting new ones used to fully utilised, decentralised technologies. Minimising any disruption to their current infrastructure by Web 3 advocates will encourage and empower organisations to embrace the potential of Web 3 without compromising their operations or user experience. By prioritising a seamless transition, vendors can help sports organisations be motivated to explore the thrilling possibilities of Web 3, setting the stage for an innovative and user-focused future in sports content creation.
Enriching the Fan Experience with AI and the Cloud:
Graphics and data have always played an essential role in providing viewers with critical game information. Integrating AI and cloud-based solutions has revolutionised this aspect of sports broadcasting. AI algorithms improve speed, keying quality and provide real-time data insights. With AI's capabilities, fans can expect an unparalleled viewing experience with enhanced visuals and deeper insights into the games they love.
Cloud-based solutions offer broadcasters, production companies, and service providers a cost-effective platform to provide viewers with unlimited choice and control. By partnering with the right experts and leveraging new technologies and ideas, these organisations can attract broader audiences and improve the sports viewing experience.
By harnessing the power of AI and utilising cloud-based solutions, viewers can anticipate better visuals and richer insights into the sports they follow. This presents an exciting opportunity for fans as they can expect a more immersive and engaging viewing experience.
Moving Towards Web 3, Blockchain and NFT
Every organisation involved in sports wants to attract and satisfy their younger customer base. They know they must provide more choice and control to these fans. In short, they need to adopt Web 3, blockchain and NFTs.
Sports executives witnessed the rise of OTT in the early 2000s, gradually replacing linear television. While the transition to Web 3 is expected to take less than 20 years, it is unrealistic to expect sports organizations to incorporate Web 3 technologies and ideas immediately. Web 3 is still an emerging technology that has the potential to disrupt and reshape the sports industry, but its success is not guaranteed; therefore, there is caution.
Today, OTT platforms have finally established themselves as viable alternatives to linear television, but it has taken two decades. By building on the success of Web 2 platforms and gradually integrating Web 3 technologies, sports organisations can ensure a smooth transition. This approach allows the industry to harness the potential of Web 3 without compromising the existing infrastructure and user experience.
Translating Web 2 Success into Web 3 and NFTs:
To help Web 2 customers move to the Web 3, blockchain, and NFT environment, leveraging successful elements from Web 2 is applicable. One way is to use existing content catalogues and archives on Web 3 platforms. This gives fans access to sports-related and archive content. By tokenising these catalogues with NFTs, fans can collect and trade unique digital items associated with specific moments, players, or teams.
Web 2 engagement strategies like fan participation and gamification can be applied to Web 3 platforms. Decentralised social networks give users more control over data and interactions, promoting user-generated content and direct interactions. Token economies and rewards incentivise engagement and foster participation and ownership within the community. Combining Web 2 strategies with Web 3 principles creates engaging communities that empower and encourage meaningful interactions.
Established partnerships and sponsorships from the Web 2 world can provide valuable resources, funding, and exposure to Web 3 initiatives. Leveraging these existing relationships will help Web 3 projects gain support and network access, enhancing their chances of success.
In the transition to Web 3, obtaining data-driven insights and prioritising user data privacy and ownership is essential. Blockchain technologies offer the potential to securely gather and manage data, ensuring that user privacy is protected. Web 3 platforms can establish trust with users and create a more transparent and mutually beneficial ecosystem by providing data privacy and ownership.
Maintaining the marketplace is crucial for sustaining brands and sponsors. By securitising data, anonymised and consented data exchanges between fans and businesses can occur. This facilitates a more transparent ecosystem where data is shared in a controlled and mutually agreed-upon manner. Such interactions can provide valuable insights to businesses while respecting user privacy and consent.
Embracing the Future of Sports Production:
In conclusion, embracing new technologies is not an overnight endeavour; it requires a deliberate and gradual transition. Just as athletes prepare tirelessly, adopting new technologies demands a similar mindset.
The future of sports content creation lies in embracing software, AI, cloud, IP-based solutions, Web3, blockchain, and NFTs. By adopting these technologies, the industry can reimagine the consumer experience, offering fans and viewers ultimate control, diverse viewing options, and personalised engagement.
Similar to the evolution from linear television to OTT, an evolutionary approach allows for the smooth integration of Web3 and blockchain into the existing infrastructure. While the benefits are clear, it's important to remember that adopting any new technology is an evolution of the existing infrastructure, much like how sports have evolved over the last 100+ years.
Understanding this and providing solutions that enable a seamless transition will maximise the benefits of these emerging technologies without causing significant disruptions to the existing model. This approach will help to reimagine fan experiences and consumer engagement, granting ultimate control, diverse viewing options, and personalised interactions.
By embracing innovation and technology, the sports industry can unlock exciting growth opportunities and reimagine how fans connect with sports. It's time to take this journey, one step at a time, and build a future where technology and sports seamlessly intertwine, creating unforgettable moments and experiences.