03 Europe
The potential to unlock millions of new subscribers
Consumers in Great Britain, Germany, France and Spain are now happily embracing streaming as their core sports viewing medium, and the situation is very different from the US in that there remains plenty of headroom for growth.
Of the 22 million households that identify themselves as sports fans, 12 million currently don’t have access to any sports streaming service – and six million of these don’t currently subscribe to any VoD service. However, subscriber acquisition is harder to come by in Europe compared with the US, and sports streamers need to think outside of the box to appeal to and attract new consumers.
Consumers in Great Britain, Germany, France and Spain are now happily embracing streaming as their core sports viewing medium
Football/soccer leads the way as the most popular sport in Europe, driving 51% of SVoD sign-ups. However, the more sports they can get, the happier the subscriber. European sports broadcasting is on a journey to becoming more Americanised, with the appetite for watching new live sports like the NFL increasing. This opens the door for a new wave of growth.
As in the US, understanding what makes people want to renew their subscriptions or to turn off is vital. Again, variety is the number one driver of satisfaction among fans, and the quality of commentators and pundits one of the largest pain points. A lack of variety in terms of the leagues covered is also a cause for dissatisfaction.
Sports rights are becoming more fragmented in Europe, with consumers needing to subscribe to a range of services to access the coverage of sports and leagues they want. In GB, for example, they can currently watch Premier League games that are available via four different services.
As a consequence, they are spending a lot of money per month on watching sports on VoD and/or Pay TV, with the average bill standing at 88 Euros (£76) per month, significantly higher than the average bill for content among non-sports fans. This is an investment they are willing to make, however, which makes them a valuable audience to target.
To gain competitive advantage, sports service providers must proactively track and adapt to changing patterns of consumer behaviour. This requires a deep understanding of customer attitudes, preferences, and consumption habits, as well as an ability to anticipate shifts in these behaviours and respond accordingly.
To help brands navigate this complexity, Kantar launched the Entertainment on Demand (EoD) service in Q1 of 2020. We currently conduct over 600,000 interviews per year across six core markets: the US, GB, Germany, France, Spain and Australia. Data collection is via a longitudinal, nationally representative panel of between 8,000-20,000 individuals, covering video on demand and Pay TV.
The continuous insights from this study enables streaming and Pay TV services to identify emerging trends and adapt their strategies in real-time. Entertainment on Demand can highlight ‘winners and losers’, and by staying ahead of the curve services can gain a comprehensive view of acquisition opportunities, improve user engagement and experience, and ultimately drive growth and profitability.
