Sports operators set to spend $6.8BN on OTT tech | OTT | News | Rapid TV News
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Research from Deltatre has found that as demand for content increasingly extends beyond the living room, the freemium model will become more prevalent, sports OTT spend will hit a tipping point in 2021.
delatre sports OTT 18April2019
Along with Massive Interactive, the sports media technology services provider independently commissioned consumer research of self-described US and UK sports fans with user data pulled directly from over 1.2 billion minutes of video streamed via live, Deltatre-powered OTT deployments. Deltatre and Massive Interactive also worked with leagues, telcos, and entertainment providers including UEFA, NFL, WWE, DAZN, AT&T and Bell Media.

The Where the Money is Going report’s top-line finding was 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 technology stack in North America alone. For most fans, £30/$39 per month emerged as the cut-off point for spend on sports content while operator investment in new functionality to bring fans closer to the action could see as much as a 24% uplift in subscriber acquisition.

From a user perspective, the survey revealed that 39% of consumers are watching four or more hours of sports programming on mobile per week and a third expect 5G will have the most significant impact on sports content consumption. Almost three quarters of the survey cited personalisation and a tailored user experience as the most important feature offered by OTT sports services and almost the same number of consumers want deeper immersion and a desire to feel closer to the action through the more advanced functionality that OTT can provide.

IP-delivered services from leagues, federations, and operators were revealed as the future gateway for sports consumption, with ‘OTT 2.0’ expected to emerge by 2021. Sports executives suggested that a 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, said Deltatre CEO Giampiero Rinaudo commenting on the Where the Money is Going report. “That means maximising 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.”