Deltatre today unveiled Where the Money is Going: The Future of
Sports Entertainment, an unprecedented global analysis of the
economics of OTT sport. The report reveals that sports operators
worldwide are now spending 15% of their total budgets on OTT, meaning
that by 2021 more than $6.8 billion will be invested in the OTT tech
stack in North America alone.
Where the Money is Going focuses on the factors underlying that
investment, including consumer viewing trends, subscription patterns,
and insights from decision-makers. It was compiled through research of
U.S. and UK sports fans, analysis of 1.2 billion minutes of live
streamed sports content, and exclusive executive interviews from top
sports executives worldwide. For the full report, visit: https://bit.ly/2ZcKa8Z
The main findings conclude that:
1) For two-thirds of consumers, $39 per month has become the cut-off
point for sports content spend – with the remaining third prepared to
pay more. With viewing habits changing across the media landscape, this
has led global sports operators to increase their tech investment to
better serve and monetize fans of all ages and preferences.
2) Investing in new functionality to maximise fan engagement through OTT
services results in a 24% uplift in subscriber acquisition.
3) Global sports operators currently commit 15% of total budget to the
OTT tech stack – which will be worth $6.8 billion by 2021 in North
America alone.
4) IP-delivered services from leagues, federations, and operators are
the future gateway for sports consumption – with ‘OTT 2.0’ expected to
emerge by 2021. Insights from senior sports executives suggest the
‘freemium’ model or ‘family packages’ will become essential for bringing
new consumers into the ecosystem and converting them to fully paid-up
subscribers thereafter.
“The sports OTT KPIs have changed. It’s no longer just about streaming
the match. Encouraging viewers to come back day after day is the gold
standard, even when there’s not a live match taking place. That means
maximizing engagement on the shoulders of the game itself. Tailoring
video and editorial content to different types of fans and reconfiguring
the UI and UX based on time of day, user insights, or the latest
developments in the sports world that week is how brands can create a
better ecosystem around a sport.” said Giampiero Rinaudo, CEO, Deltatre.
Other report highlights:
Demand for content has evolved beyond the living room with 39% of
consumers watching four or more hours of sports programming on mobile
per week and 1/3 of consumers citing 5G as a technology expected to have
the most significant impact on sports content consumption.
Fans also want to feel closer to the action. 72% of those surveyed cite
personalisation and a tailored user experience as the most important
feature offered by OTT sports services. Almost the same number of
consumers (71%) want deeper immersion and a desire to feel closer to the
action through the more advanced functionality that OTT can provide.
The full report includes a breakdown on account sharing, device usage
and adoption, consumer preferences for OTT content delivery, and future
innovation within the sports streaming landscape.
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About Deltatre
A Bruin Sports Capital portfolio company, Deltatre is the international
leader in sports media technology services. It powers an unmatched suite
of leading-edge technologies for the full spectrum of media including
OTT, CMS, and digital platform production, virtual broadcast studios
featuring state-of-the-art VR and AR capabilities, broadcast graphics,
content and data creation and real-time distribution.
It serves a blue-chip client roster of the most prominent and
influential sports and media companies including FIFA, Premier League,
DFL, IOC, EuropeanTour, NFL, UEFA, BBC, BT Sport, Discovery, ATP, Sony
and hundreds of media companies worldwide. In all, Deltatre delivers
hundreds of technologies and services backed up by a team of more than
1000 people operating worldwide including offices in Italy, France,
Germany, Switzerland, the UK, the United States, India, Singapore, and
Japan.
Deltatre has over 30 years’ experience at the highest level of
international sport. In November 2018, Deltatre acquired Massive
Interactive, a multi-award-winning global OTT software company. Combined
they have made Deltatre the largest independent OTT solution provider in
the world, with billions of consumers experience sport through Deltatre
technologies.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190417005353/en/