The pandemic has essentially sped the momentum of many businesses while slowing down some. When it comes to the dimensional impact on Sports Broadcasting and Sports OTT, the sails have surely been filled with whopping dynamism and direction.
It gets super important for sports broadcasters and operators in this domain to understand the criticalities behind this sports boom with the pandemic. As speculated and agreed largely upon, much of the credit is levitated on the dash for digital transformation during the pandemic.
However, digital transformation is a continuous cycle. And apart from this, there have been many other reasons behind the seismic transformation of the sports entertainment industry, and in this blog, we bring to you the most prominent of them-
There Is No Universally Implicative Model for Success
The debate around the Netflix model being the map toward success has evidently been cleared up. There is no specific model in this industry that makes it work. But there are a few things to definitely adhere to. One, you must include a diversified business model created to push all-around ARPU. Two, a mixed subscription and advertisement model is a must. And three, integrating it with a much more comprehensive digital strategy closes the loop.
Live Sports Does Not Guarantee Everything
Fans are ready to get down the churn ladder as soon as their favourite live events are stopped broadcasting. Using events as the bait to market can cause users to leave in the same way. The solution to this has been found in augmenting live sports with substitute forms of content. This is critical to maintaining subscribers for the long term and has been one of the reasons to cause a massive transformation in this industry.
OTT as a Subset of a Wider DTC Offering
OTT cannot sustain to be a standalone development in the long term. This is because it won’t propel fair value to the platform runner, nor can fans easily scale with it. As memorable user journeys play a huge role in bringing users to the platform, it gets beneficial to include OTT as a sub-segment within a greater DTC offering and will help cause a significant change. This is where Multiple Play or Multiplay offerings gain substantial context.
Top-tier Sports Services Are Still Hard to Deliver
This has sometimes got to do with the broadcasters, and at other moments it’s a consequence of the tech-base being relied on by the company. Even though tremendous improvement has been created, it’s yet a work in progress. Depending on a robust subscription billing platform with unified monetization solutions is a big plus. Nevertheless, with the rollout of the 5G technology, things are looking good, and most problems in this domain can be solved with time.
Decreasing Costs and Progressing Content Delivery Technology
Hindrances to entry are very less than they were a couple of years ago. However, this newfound ease of access with fewer costs has associated risks. If you move too gradually, you squander a chance to create fan-based relationships and data. When you move too fast, you face the risk of having to restart if the plan isn’t sketched out well.
The Strength of Social Media
Social media has become the base fragment for the audience funnel, which deploys short-ranged content to push fans to relevant platforms. It also serves as a revenue engine for sports with niche viewership and narrow budgets. But it is not likely to take a good return into the significant leagues’ rights tug-of-war. It is expected that major companies may have a harsh decision to make in the coming years in the quest for those scaled audiences as against the paywall-secured worlds in which many store their content.
The seismic boom caused during the pandemic in the sports-based digital entertainment sector has a lot of other reasons to have made the cut. In hindsight, the same causes can be understood, learned from, and replicated in the current scenario to extract good results.
Magnaquest’s flagship subscription and billing platform SURE is an excellent start in the direction to steer your digital transformation journey. It offers incredible scope for scalability, integration to provide multiple services, and the best returns. Schedule a demo with Magnaquest and learn about what we have in store for you.