Analysis Exhibits: One-Third of U.S. Internet Homes Are Subscribed to a Direct-to-Consumer Sports Streaming Platform
The landscape of live sports consumption is undergoing a significant transformation, as highlighted in the new study by Parks Associates titled "Streaming Live Sports: Where Opportunity Meets Complexity." The research report underscores the growing dominance of streaming platforms in sports viewing, while also acknowledging the challenges that come with this shift.
Key findings of the study reveal that 40% of U.S. sports viewers are exclusively tuning into sports via streaming services, with an additional 30% combining streaming with traditional TV. This shift is driven by the fact that sports fans are among the heaviest spenders on premium TV content, spending over $110 monthly across all services, with an average of $88 for sports viewers overall. Direct-to-consumer (D2C) sports apps subscription costs alone average $111 per month.
The study also emphasizes the opportunities that streaming platforms present, such as enabling access to niche and out-of-market sports events, and interactive features like multicasts, live chats, and in-game betting, which expand audience opportunities and engagement.
However, the study also identifies several challenges. Technical streaming difficulties affect a majority of sports viewers, with 57% reporting issues such as buffering, poor video quality, and latency. Fragmentation of sports rights across multiple platforms forces fans to subscribe to several services, and the discovery of where games are airing is inconsistent, creating confusion. Despite the rise of streaming, about 20% of sports viewers still use digital antennas to access free-to-air games.
Lionel Oisel, head of video labs at InterDigital, suggests that more advanced video codecs can significantly reduce buffering and latency and improve the overall user experience. He also stresses the need for the broadcast and streaming ecosystem to work together to alleviate pain points, or risk damaging their reputation for future events.
The study was conducted in partnership with InterDigital, and it's clear that as traditional pay-TV services continue to shed subscribers, the economics of sports broadcasting are changing. Streaming creates new revenue opportunities for both sports leagues and streaming services. One third (33%) of U.S. internet households subscribe to a D2C sports-specific streaming service.
Michael Goodman, senior analyst at Parks Associates, states that the sports media landscape is transforming as sports programming transitions from traditional broadcast and cable networks to streaming. With 89% of U.S. internet households subscribing to a subscription-based streaming platform, it's evident that the future of sports viewing is increasingly digital.
For those interested in delving deeper into this topic, the "Streaming Live Sports: Where Opportunity Meets Complexity" research report is available for download.
- The study by Parks Associates, titled "Streaming Live Sports: Where Opportunity Meets Complexity," reveals that 40% of U.S. sports viewers exclusively consume sports content via streaming services.
- Sports fans are among the heaviest spenders on premium TV content, spending over $110 monthly, with an average of $88 for sports viewers overall, highlighting the shift towards streaming platforms.
- The study underlines the opportunities streaming platforms offer, such as access to niche sports events, interactive features like multicasts, live chats, and in-game betting, which expand audience engagement.
- however, technical streaming difficulties affect a majority of sports viewers, with 57% reporting issues like buffering, poor video quality, and latency.
- Lionel Oisel, head of video labs at InterDigital, suggests that advanced video codecs can significantly reduce buffering and latency, improving the overall user experience.
- Streaming creates new revenue opportunities for both sports leagues and streaming services, with one third (33%) of U.S. internet households subscribing to a D2C sports-specific streaming service.
