01 Today’s sports fan
Omnivorous, demanding, and open to exploring
Live sport continues to differentiate and drive growth in overall subscription video on demand (SVoD) services, with one in five new subscribers attracted to sign up primarily by the opportunity to watch the sports they love.
1 in 5 new SVoD subscribers driven by live sport
Data from Kantar’s Entertainment on Demand study uncovers the sports that are most popular within the six markets studied (US, France, Germany, GB, Spain, and Australia). In each case, there is one that plays the key role in influencing the decision to sign up for an SVoD service.
However, there is also a ‘long tail’ of other sports that households watch: in Australia, for example, the main driver is soccer (11%), but the same household may well also regularly enjoy rugby, Australian football league (AFL), and tennis.
This means that while securing single sports rights is important for a streaming service, it must also be aware the opportunities that exist in offering diverse options.
Sports content now stretches far beyond simply watching live action, with major growth seen across sports-themed documentaries and dramas in a bid to widen appeal. In 2016 Prime Video launched its football docu-series All or Nothing, paving the way for this type of content. This approach helps to ensure sports streamers feel they’re getting value all year round, reducing the temptation to cancel once the final whistle blows at the end of the season.
Including elements of sports in other forms of content has great potential to influence viewing time across a platform’s offerings
Crucially, it also helps viewers to understand the personalities and stories involved, which builds a wider audience for live sports, and strengthens engagement by bridging the gap between fans and stars. The Formula One documentary Drive to Survive on Netflix is a prime example. The mutually beneficial relationship between sport and streamer has successfully attracted F1 fans to the service, while simultaneously growing the sport with millions of new fans globally.
Apple TV+, meanwhile, has not only scored with exclusive rights to Major League Soccer (MLS) coverage in the US, but its soccer-themed comedy drama series Ted Lasso is the #1 driver of new subscriptions.
This demonstrates how including elements of sports in other forms of content has great potential to influence viewing time across a platform’s offerings.
Beckham, a candid, gossipy and entertaining docu-series about the life of David Beckham, was released on Netflix in early October. Its reach extended far beyond core sports fans, with only 38% of viewers saying sports was one of their top viewing preferences. Beckham was both the most viewed and most enjoyed SVoD title across Britain in October – and one in 10 new Netflix subscribers in October signed up specifically to watch the series. Subscriber advocacy for Netflix was far higher amongst those who had viewed the Beckham series than those who had not.
Despite both David and Victoria Beckham having had a significant presence in the US for many years, the series did not reach the same levels of success in the American market and the series was the 206th most watched title in October in the US market.
Unlike with films or TV series, fans often follow their favourite sports or teams to whichever platform they land on. However, there are limits to this: if the viewing experience they get isn’t satisfactory they will disengage with all the content they receive as part of the service, which is likely to lead to cancellation.
Sports streamers need to do more than simply acquire the right content. Providing an engaging experience is crucial to long-term loyalty.
Nearly one in three households that have a video streaming subscription acquired it as part of a bundle deal or promotion. SVoD services are aggressively using bundles to drive early growth and promote convenience, through enhancing value perceptions for consumers.
The Disney bundle, for example, includes Disney+, Hulu, and ESPN+ – giving the package mass appeal, with something for everyone in the household.
Kantar expects to see an increase in sports driven bundle deals over the coming years, helping sports subscribers to feel they are getting value outside of sports seasons. Leveraging viewers who are more interested in TV and film, meanwhile, will accelerate growth in what is now an ultra-competitive market.
This is an acquisition strategy that could be explored by sports streamers. They should consider how forming partnerships can help them to create value, using sports to provide an entry point to other content and services.
Currently, there are no dedicated sports bundles available in Europe. Bundling might be an effective remedy to the challenge of the growing fragmentation of sporting rights, without the vast expense of bidding for and winning multiple sports rights.
Live sport continues to differentiate and drive growthDAZN in Europe embodies both the opportunity and challenges faced by sports streaming specialists. Depending entirely on sports content to attract viewers gives the platform a limited audience. DAZN’s purchase of the rights to show NFL games across Europe resulted in a spike in subscriptions. When it loses rights, however, we see a significant dip in sign-ups. Partnering with another streamer to offer a bundle deal including TV and film could help stand-alone sports platforms to sustain appeal and avoid cancellations.
