How Will NHL's TV Talks Play Out? We Ask The Experts - Front Office Sports
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In addition, prominent visibility on a frequently used service is also a hugely helpful promotional tool, with this likely to have a positive impact on marketing costs. From an accessibility perspective, you will also benefit from having your subscription product featured on a service which is available across a truly massive number of connected devices. Roku and many more.
Nonetheless, there are some drawbacks to these arrangements. From an economic perspective, you will likely be sharing some of your hard-earned subscription revenue with the delivery partner.
Big Media, Silicon Valley Battle for Multibillion-Dollar Sports TV Rights
To continue with our Amazon Channels example, Amazon reportedly shares around 70 per cent of subscription fees with content providers, although the applicable share for each partner varies. However, in a stark demonstration of the financial impact these subscription shares have, Netflix moved late last year to bypass payments via iOS Apps by directing those intending to subscribe to their mobile website in order to avoid sharing revenues with Apple after taking a similar approach with Google Pay earlier in Nonetheless, these mutually beneficial content distribution partnerships are a critical element of any efficient and effective distribution and revenue generation strategy in the connected world.
While a lot of this discussion has centred around a service like Amazon Channels, more generally I expect that the debate between aggregated content services versus purely independent and separate OTT offerings will be one of the most interesting aspects of this industry to watch in the coming years. For instance, the NBA recently introduced changes to time outs and the length of breaks between quarters after analysing the impact of these on viewers of its League Pass Service.
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Back to customer data though, a subscription-based OTT service is, for sports properties, potentially an extremely important part of an overall fan engagement strategy which covers both online and offline products. Many properties have or are in the process of implementing and integrating sophisticated CRM and analytics products and teams into their everyday processes — so much so there are now entire books dedicated to this specific topic.
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The inclusion of a sport within a broader content mix on popular television services though has always been seen as a prime initial engagement opportunity to facilitate interest which will, over time, hopefully develop into a much more consistent and deeper level of engagement. When moving to a pure OTT strategy though, this is lost as a route to win new fans. Clearly though, creating an OTT product dedicated to one property and for which subscription revenue underpins the entire business model is a very, very tough gig.
From a broader perspective, the winners in this space are more than likely to be those businesses for which the OTT service is but one of a number of revenue streams. This brings into scope potentially massive retail and participation revenue opportunities which can eventually form part of a more complex and comprehensive business model. There are plenty of other considerations too when it comes to taking the direct to consumer OTT route, some of which are worthy of their own article:.
This includes cash-based solutions such as vouchers, gift cards and a pre-payment partnership with a convenience store chain. Piracy - one of the stories to dominate the headlines across the year was the seemingly ever-expanding pirate operation known as beoutQ.
What Will The Next Round of Sports Media Rights Deals Look Like?
When copies are free, you need to sell things which cannot be copied. In particular, the concepts of personalisation, immediacy, accessibility, authenticity and embodiment. The NBA app is a fantastic example of the first three — breaking down highlights by player so you can tailor your viewing experience to what you are interested in seeing, making highlights available quickly in-game and structuring the presentation of content so it is easy to find and search. Back to the theme of this article though, for any sports property that takes the leap into being a completely direct to consumer proposition, the issue of piracy becomes solely its problem.
If there is one takeaway from this article, it is that this is an extremely complex area.