Spring in US sports signifies the return of Major League Baseball (MLB). The changing of the seasons signifies the return of the SportsPro OTT Summit USA in the world of sports broadcasting.
What better site to host the event than at Citi Field, the New York Mets’ home field for the second year in a row?
As the Mets prepared for another run at the World Series, the industry’s most powerful personalities, broadcasters, and suppliers gathered to the team’s field for two days of talks, tech demonstrations, and networking opportunities.
Despite the impossibility of condensing everything into a single message, here are my top takeaways from yet another amazing occasion.
Premium rights are vital for WBD Sports prior to the debut of its streaming service.
Citi Field is located in the New York City borough of Queens, thus it seemed proper to begin proceedings with a native. Luis Silberwasser, chief executive officer of WBD Sports, remembers attending Mets games at Shea Stadium, which was demolished in 2008 to make room for a stunning new stadium.
Despite the fact that both WBD and Silberwasser have more of a general entertainment background than a sports one, he emphasized the relevance of sport to the company’s broader offering as it prepares to launch a streaming service that will incorporate both HBO Max and Discovery+.
Since that WBD lacks a dedicated sports service in the United States, the new OTT platform will allow it to broadcast many more events than is feasible on linear networks such as TNT and TBS. Nonetheless, Silberwasser stated that premium rights will be prioritized above high-volume items. This includes the National Basketball Association (NBA), whose rights the corporation is eager to retain when they come up for renewal.
Others say the HBO brand is too strongly identified with premium dramas such as Game of Thrones and The Last of Us (boxing legacy aside). Silberwasser maintains that the high quality of such programming can only be a good thing, promoting the notion that this is a premium product.
As for the DTC service’s name? Silberwasser was not giving up anything.
The fate of RSNs is uncertain.
Our return to New York occurred during a time of unpredictability in the regional sports network (RSN) industry. Silberwasser discussed WBD’s anticipated withdrawal from the space and the necessity for a clean exit that would not negatively impact its relationships with the NBA, National Hockey League (NHL), and Major League Baseball. The implication is that the business is successful in this regard.
The future of Diamond Sports Group (DSG) is somewhat more problematic. Michael Schneider, general manager of Bally Sports+, disagrees with the industry consensus that the RSN model is obsolete and will have limited success in its shift to streaming.
He feels that there is a market opportunity for a local streaming service that provides more sport, more short-form content, and technical innovation comparable to that of national platforms.
Schneider stated to the crowd, “It’s not as dire as people make it out to be.” These rights continue to be quite valuable.
“[Bally Sports+] is currently a digital version of the live broadcast, however this is only version one. We are collaborating with leagues, partners, and teams to provide a fully localized streaming solution.”
And if you ever needed proof that this is a fast-paced industry, consider that DSG filed for bankruptcy within hours after the conclusion of day one — yet business is currently as normal.
Amazon desires to establish a new football holiday on Black Friday.
Amazon’s vice president of global sports video, Marie Donoghue, stated that the business teamed with the National Football League (NFL) on Thursday Night Football (TNF) in order to “control Thursday night culture” in the United States.
Following a successful first season, the IT giant was rewarded with the first-ever live game on Black Friday, and it now sees the chance to establish an altogether new holiday that mixes live sport with online shopping.
“[During TNF negotiations], we began discussing with the NFL the possibility of establishing a new football holiday,” she added. “Black Friday is the most popular shopping day in the United States and our busiest day. [The NFL] first did not commit, but retained it as an option in our contract. So it was a tremendous indication of their faith in us that they promptly granted us the game.
“We believe we can accomplish some really remarkable things in the retail industry. It is not difficult [technologically] to provide advertisements throughout the game. The difficulty is in making it user-friendly, frictionless, and non-distracting. As we’ve been giving commerce on TNF for years, we’re not exactly delighted with the experience.
Sport still demands a premium
Gratis ad-supported television (FAST) services were a big subject at Citi Field, since many major broadcasters provide them to diversify their income streams and attract new audiences. Yet, it is still believed that people are willing to pay for premium sports.
“In 2022, we hiked pricing in Italy, Spain, and Germany, [markets] where we held top soccer rights,” said Kevin Mayer, whose tenure as DAZN chairman just concluded. “We had significantly underpriced, and I honestly believed there was greater price elasticity.
“Viewers in Europe are accustomed to paying around €30 per month for sports programming. We believed that pricing [DAZN] between €15 and €20 [per month] would increase the number of subscribers, but this did not occur. So, we increased our premium price without losing many customers.”
Bally Sports concurs, stating that it has learned from the errors made by others in the early years of streaming.
Schneider remarked of Bally Sports+’s pricing, “I believe [streaming services] were priced too cheaply.” It is much simpler to descend than to ascend.
Authenticity is crucial in targeting Generation Z
In sports broadcasting, the struggle to recruit, retain, and engage Gen Z listeners appears to be a perennial challenge. It was a popular topic of discussion at the conference, with several presenters addressing the issue throughout their talks.
Technology and content innovation are viewed as means of attracting, maintaining, and engaging Gen Z viewers, who are exposed to so many competing kinds of entertainment. But maybe the most significant factor is authenticity, considering that Generation Z is equally inclined to follow sportsmen as teams.
Arielle Chambers, creator of HighlightHER, stated, “You must make [sport] enjoyable for an audience that is always exposed to so many stimuli.” “I adore narratives, I adore that you have past players talking about the game, and I adore that you can pause, fast-forward, and rewind things on your own time, among other things. I adore the social media component.
“Clients, I implore you to permit creators, athletes, or anyone is in front of the camera to express their message in their preferred manner and language.”