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OTT 2.0 expected to emerge by 2021 with Sports Operators spending 15% of their Total budgets

by Editorial
April 21, 2019
in Exclusive, Featured, OTT
2 min read
OTT 2.0 expected to emerge by 2021 with Sports Operators spending 15% of their Total budgets
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Deltatre today unveiled Where the Money is Going: The Future of Sports Entertainment, an unprecedented global analysis of the economics of OTT sport.

The report reveals that sports operators worldwide are now spending 15% of their total budgets on OTT, meaning that by 2021 more than $6.8 billion will be invested in the OTT tech stack in North America alone.

Where the Money is Going focuses on the factors underlying that investment, including consumer viewing trends, subscription patterns, and insights from decision-makers. It was compiled through research of U.S. and UK sports fans, analysis of 1.2 billion minutes of live streamed sports content, and exclusive executive interviews from top sports executives worldwide.

The main findings conclude that:

1) For two-thirds of consumers, $39 per month has become the cut-off point for sports content spend – with the remaining third prepared to pay more. With viewing habits changing across the media landscape, this has led global sports operators to increase their tech investment to better serve and monetize fans of all ages and preferences.

2) Investing in new functionality to maximise fan engagement through OTT services results in a 24% uplift in subscriber acquisition.

3) Global sports operators currently commit 15% of total budget to the OTT tech stack – which will be worth $6.8 billion by 2021 in North America alone.

4) IP-delivered services from leagues, federations, and operators are the future gateway for sports consumption – with ‘OTT 2.0’ expected to emerge by 2021.

Insights from senior sports executives suggest the ‘freemium’ model or ‘family packages’ will become essential for bringing new consumers into the ecosystem and converting them to fully paid-up subscribers thereafter.

“The sports OTT KPIs have changed. It’s no longer just about streaming the match. Encouraging viewers to come back day after day is the gold standard, even when there’s not a live match taking place. That means maximizing engagement on the shoulders of the game itself. Tailoring video and editorial content to different types of fans and reconfiguring the UI and UX based on time of day, user insights, or the latest developments in the sports world that week is how brands can create a better ecosystem around a sport.” said Giampiero Rinaudo, CEO, Deltatre.

 

Tags: OTT 2.0

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