D2C streaming is one of the fastest growing trends in sportstech, and for good reason. In fact, according to the Nielsen Sports Global Marketing Report, 40.7% of fans are now opting to stream live events through digital platforms.
PT SportSuite take a look at the key factors sports organisations need to navigate before setting out on their own streaming journeys.
In recent years, PT has worked with our clients to enter the direct-to-consumer (D2C) streaming landscape, which has burgeoned into a powerhouse for sports content delivery. As sports rights-holders, venturing into the D2C space provides a golden opportunity to create a dedicated ecosystem that fosters stronger relationships with fans and sponsors while carving out new revenue streams. But before you launch your platform, it’s essential to consider the critical factors that are going to make a difference between a successful, sustainable venture and a failed opportunity in this dynamically evolving landscape …
Building a Strong Monetization Foundation
In the forefront is the necessity to embrace a multifaceted monetization strategy. According to a report by Grand View Research, the global video streaming market size was valued at $89.03-billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 21.5% from 2023 to 2030. Leveraging this upward trend means incorporating subscription models that offer variable access to live events based on different payment plans, alongside a pay-per-view system to appeal to a wider audience spectrum.
Partnering with entities like PT that can facilitate seamless integration with top-tier payment services, streamlined transactions and maximizing user uptake through varied subscription alternatives – is a key difference maker.
Leveraging Nostalgic Content: A Revenue Booster
The sports industry sits on a goldmine of historical content that carries not just sentimental value but substantial monetary potential. To truly unlock this value, it’s crucial to centralize historical assets in the cloud, making them easily searchable, discoverable, and hence, monetisable.
By ensuring a structured cloud storage solution, you’re ensuring the ongoing discoverability of historical media rights, all while enhancing the asset value through potential monetization avenues such as licensing or premium subscription packages. This not only facilitates a rich and diverse content library but promises a steady revenue stream leveraged through nostalgic narratives.
To summarise … your media archives could be working a lot harder for you!
Transactional Relationships through Non-Live Content
While live content is always the main driver of subscriptions and pay-per-view purchases, the non-live content segment is a frontier teeming with opportunities. Consider this a space where fans can immerse themselves in exclusive interviews, analytical discussions, or even virtual tours offering a behind-the-scenes peek.
Engaging content crafted from training sessions, candid player interactions, and fan activities can transform your platform into a bustling community hub, nurturing transactional relationships that propel both engagement and revenue avenues.
It’s all about feeding the fans’ insatiable appetite for content – 24/7.
User-Centric Design: Encouraging Loyalty
At PT we subscribe to a design philosophy that leans toward simplicity and fan-centricity. The idea is to craft a digital journey that not only delights but retains. Picture a platform where every click takes the user on an explorative journey, encouraging them to delve deeper, to engage more passionately, and to remain loyal to your own branded ecosystem.
From the get-go, the narrative should be about the fan — an experience that is as intuitive as it is exciting, paving the pathways for a digital adventure where engagement and loyalty are the ultimate destinations.
Data Sharing: A Two-Way Street to Success
In the D2C framework, encouraging fans to share data stands as a vital cog. Creating an environment where fans find value in sharing data can be a game-changer. Offering incentives such as personalized experiences or rewards can foster a landscape of mutual benefit, providing you with a wealth of insights to tailor content strategies effectively while enriching the user experience through personalised touchpoints.
Sponsorship and Commercial Returns: Crafting Value
Finally, we touch upon the powerhouse of sponsorships. Your D2C platform can seamlessly integrate opportunities that drive sponsor value and assure commercial returns. Branded content avenues, event sponsorships, and engaging gamification modules not only enhance user engagement but also promise substantial commercial returns. Leveraging PT’s expertise in this sector can equip your platform with features such as user-generated content challenges and match predictions, fostering sponsored engagements that resonate with the fans while driving revenue.
Stepping into a Future-Ready D2C Landscape
As you weigh up the benefits of investing in your own D2C platform, understanding that you need to create more than just a streaming service, is essential. It’s about nurturing a rich ecosystem that fosters a community of fans engaged through tailored content and experiences.
In partnership with the right platform partners, the journey into the D2C landscape is a venture into a space of enormous potential, where your strategy can be finely tuned to resonate with your fan base’s preferences and desires. It’s about crafting a space where every interaction holds value, and every content piece carries the potential to foster stronger relationships with the fans.
With a mature and proven integrated Video OTT Platform Ecosystem and experienced team, PT SportSuite is well versed in partnering with rights-holders to provide innovative branded sports media ecosystems to sports leagues, federations, associations and more.