02 The US
Sports ignites growth in streaming services
A huge 95% of sports fans in the US stream VoD. Cable TV (Pay TV) penetration, on the other hand, is consistently trending downward, standing at 59% of fans in Q3 of 2023, down from 67% two years ago.
Outside of the pure sports streamers, YouTube TV, Peacock and Apple TV+ show some of the biggest over indexes among sports fans compared with total streamers.
While there is a growing overlap between the two forms of viewing, with 46% of households using both VoD and Cable TV, it is tough to grow in a market that is already so saturated. American Football is the #1 most important sport in the US – driving 40% of SVoD sign-ups in Q3 of 2023.
American Football is the #1 most important sport in the US – driving 40% of SVoD sign-ups in Q3 of 2023
The addition of live sports to streaming is exacerbating the ‘cord-cutting’ trend. Live sports, alongside the news, had been the cornerstone of the cable TV bundle; however, with the increased migration to streaming, the necessity for cable TV is evaporating.
As demand for live sports rises, the rights are becoming more and more expensive – and there’s no sign of this trend reversing. The result is a fragmented market: whereas a decade ago Cable TV owned the majority of rights, today they are spread between multiple platforms. This is having a negative impact on consumers, as they are forced to pay for multiple subscriptions to get the coverage they desire.
Fragmentation is also one of the causes of the piracy epidemic, with a study suggesting over eight million in the UK are watching illegal streams. Addressing this barrier through emphasising accessibility and value is essential.
With penetration already high, engaging and retaining sports fans in services is becoming increasingly important – and a real challenge. Providing a great viewer experience is key. As the evolution of sports streaming continues, and the possession of rights becomes ever-more fragmented, subscriber sentiment might be the real driver of growth.
Streamers should work to understand what does and doesn’t drive satisfaction, and address both areas. Kantar’s data shows that the ability to access a variety of sports is the top driver of satisfaction amongst sports streamers in the US, while the biggest pain point, cited by 12% of viewers, is the quality of commentators and sportscasters – something which is a very personal consideration.
Another area of dissatisfaction is a lack of interactive features. Is there a way to enable viewers to watch multiple sports at the same time? Or to engage with their friends while watching?
