Sponsored by Nexxen • August 21, 2024 •
Kenneth Suh, Chief Strategy Officer, Nexxen
Sports and streaming seem to be everywhere of late — at the upfronts, dominating the news and landing mentions on major companies’ earnings calls. They’re practically inescapable, and the subsequent convergence of sports and streaming is reshaping how fans access and experience live events. Major platforms, including Netflix, Apple, Roku and more, are leading the charge here and the opportunities presented are seemingly endless.
Take, for example, the buzz around a potential, groundbreaking deal between FIFA and Apple, reportedly valued at $1 billion. This partnership could see Apple securing exclusive rights to a World Cup-style tournament. Similarly, Roku’s announcement to stream Major League Baseball games and Apple’s previous deal with Major League Soccer underscore the increasing commitment of streaming platforms to live sports.
Even more monumental is the NBA’s multi-billion-dollar media rights deal with NBC, Amazon and Disney, highlighting the rapidly growing intersection of traditional broadcasting giants and modern streaming services, all vying for a piece of this lucrative market. Sports is one of the few categories consistently driving new subscribers and, perhaps more importantly, retaining them.
Live sports drive audience engagement and advertiser interest
Fans are willing to subscribe to multiple platforms to follow their favorite teams, making sports a critical tool for attracting and retaining viewers. This trend is amplified by ad budgets shifting from linear TV to digital platforms due to audience fragmentation. The ability to access games on various devices and at any location has made streaming platforms more attractive to modern consumers who prefer flexibility and convenience.
Further, sports maintain their unique appeal as one of the last bastions of appointment viewing. Live sports events, unlike other content, demand real-time engagement, keeping fans glued to their screens. This live aspect also preserves the value of ad slots during sports broadcasts, providing an emerging and reliable revenue stream for platforms. For instance, Nexxen has seen a rise in the Live Sports packages offered to buyers. The immediacy and unpredictability of live sports make them particularly compelling, driving higher viewer engagement when compared to pre-recorded content.
How sports fit into streamers’ content strategies
Streaming services are also leveraging the inherent loyalty and engagement of sports fans by investing in more comprehensive content strategies.
The success of sports-centric series like Netflix’s “Full Swing” and “Drive to Survive” demonstrate the power of character development and storytelling in enhancing viewer connection to sporting events. These series delve into the personal lives and challenges of athletes, creating emotional connections that extend beyond the sports themselves. This narrative approach attracts dedicated fans but also draws in viewers who might be more interested in the human stories behind the athletes.
Streaming offers athletes broader exposure and opportunities to build personal brands, independent of traditional broadcasters. With platforms willing to create content around their lives, players can connect more deeply with fans, turning personal narratives into compelling viewing experiences.
As the media landscape continues to transform, the synergy between sports and streaming platforms is poised to become even more influential in shaping how audiences interact with their favorite teams, games and stars. Everybody has to get their money’s worth, and this flywheel is reshaping how sports are produced, marketed and monetized, promising a bright future ahead for fans, athletes and advertisers alike.
Sponsored by Nexxen
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