<2021 Thematic Research Into The Video Streaming And Sport Industry ResearchAndMarkets.com>
An over-the-top (OTT) media service is one that is offered directly through the Internet, and is essentially another term for a streaming platform OTT bypasses cable, broadcast and satellite TV platforms, who have always been the traditional broadcasters of sports content. OTT platforms were largely available through websites and apps on personal devices such as laptops, smartphones, games consoles, but their availability has become more widespread on cable TV, with Sky and Virgin both offering Netflix Devices such as the Amazon Firestick also provide various streaming platforms, giving consumers huge flexibility in how they watch content. OTT platforms had largely been restricted to providing film/TV content, the emphasis on sports content has grown in recent years, as platforms have identified that sports viewership could be a key to significant growth.
The nature of sports viewership has changed drastically over the years, as traditional TV viewing has begun shifting somewhat towards streaming content and online platforms. Research has shown that younger demographics prefer to watch online content, and streaming platforms are becoming more of a powerhouse in the sports broadcasting industry, with Amazon having secured valuable rights packages to the Premier League and the NFL in recent years.
While sports fans have always traditionally watched sports either live at stadiums or on the TV from the comfort of their own home, the growth of the Internet has opened up many different ways of watching sports. As younger generations become interested in sport, viewing patterns have begun to shift. Nowadays, many younger viewers are more interested in streaming games online, with many watching multiple games at once. The accessibility with which many can access different events now is a stark contrast to before the turn of the century, where some games just weren't televised.
The gradual rise of OTT platforms has led other companies in the field to consider moving more in the direction of live sports, as this is seen to be crucial to retaining high viewing numbers for many broadcasters. Live sports are an incredibly valuable commodity viewed across the world by millions, and it could become the key piece for online streaming platforms to continue their upward growth moving forward.
An analysis of how streaming platforms have entered the world of sports broadcasting, and the different challenges they face
Amazon have maneuvered their way into being one of the most valuable brands in the world, and were last reported as having a value of $254.2 billion Amazon made their first foray into the sports rights market in 2017, when they paid $50m to secure all ten Thursday night games for the NFL. The price paid marked a fivefold increase of the value of the rights, compared to what Twitter had paid for the same package the previous year. Amazon's business model is somewhat unique in comparison to streaming giant, Netflix, as it offers sports as a complementary option to its wider offerings of film/TV.
Facebook had made an aggressive start in acquiring sports rights in 2018, securing deals for the UEFA Champions League coverage in Latin America and La Liga coverage in India. In addition, Facebook also struck a $30m deal with the MLB, which saw 25 games broadcast on Facebook Watch during the 2018 season. Despite this initial success, Facebook allowed their football deals to expire in March 2021, opting to not extend. The company also launched a failed bid of $600m in 2017 to secure broadcasting rights to the IPL. While Facebook had previously identified sports as an area for potential growth, but they have now decided to change their strategy, stating that broadcasting sports is no longer a part of their video model.
A recent study by video technology company Synamedia and market research firm Ampere Analysis highlighted that OTT sports streaming services could gain $5.4 bn in lost revenue if piracy were to be eradicated. The study also discussed that service providers and rights holders should attempt to identify why so many fans turn to illegal services. Many fans have felt priced out of paying for subscription packages in recent years as costs have risen.
Growth in the USA for streaming platforms is expected to be rapid and significant over the coming years, due to the sheer volume of streaming platforms available. At least 104.8m households in the country hold a subscription to at least one SVoD platform at the end of 2020, which is equivalent to 80.8% household penetration. The USA's SVoD market is among the most well developed, with fierce competition between companies such as Netflix, Amazon, Hulu and ESPN.
Key Topics Covered:
1. Executive Summary
3. Thematic briefing
4.1 Technology trends
4.2 Industry trends
5. Industry Analysis
5.1 Market size and growth forecasts
6. Value chain
8. Further reading
9. Our thematic research methodology
10. About the Publisher
11. Contact us
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Source : https://finance.yahoo.com/news/2021-thematic-research-video-streaming-100300334.html1132