MediaKind 2021 Sports D2C Forecast defines the future of direct-to-consumer services in the global sports rights-holders market

MediaKind, a global change leader in media technology and services, unveils the MediaKind 2021 Sports D2C Forecast, the most significant analysis ever undertaken of the direct-to-consumer (D2C) OTT platforms owned and operated directly by sports rights-holders. The report explores a wide range of trends in the D2C sports space, including the use of live content, fan engagement, and monetization.

The MediaKind research shows that while most of the 40 rights-holders analyzed still define their D2C platform as complementary to broadcast coverage, most now see it as an essential part of their future distribution strategy for live sport and building direct touchpoints with fans. Almost three-quarters of the rights-holders analyzed offer some form of D2C service to their fans today through subscription packages, utilizing one or more of six entry points.

The findings reveal a 50-50 split between rights-holders. Half use their D2C service purely as a supplementary content hub, focusing on delivering high-quality video. The other half concentrates on making full use of OTT's interactive possibilities, embedding fan engagement features into their services. In terms of distribution, 58% of the rights holders analyzed have a standalone D2C web domain, with the remaining 42% providing D2C services via a sub-domain of their main website. Just over a third of the total rights-holders offer their D2C service through a standalone mobile app.

MediaKind also highlights how current standalone D2C sports services are under-utilizing secondary monetization tools. None of the rights holders analyzed offer an integrated betting service. At the same time, features such as ticketing (utilized by 3% of rights-holders), merchandising (5%), and advertising (8%) remain rare, with greater priority placed on delivering a high-quality viewing experience and user interface. However, many rights-holders expressed concerns about how their future streaming service will stand up when faced with a high volume of concurrent live streams despite recent technological advances.

Raul Aldrey, Chief Product Officer, MediaKind, said: "The results of our study are clear ? rights-holders cannot afford to be without a D2C service moving forward. All 40 of the rights-holders have recognized how D2C services offer crucial, data-driven touchpoints with their fans and provide unique opportunities to enhance fan engagement and tap into new monetization streams. But the performance of these D2C platforms remains table-stakes and fundamental to attracting and retaining audiences long-term. Future D2C services must guarantee stability at scale, and the overall delivery must be at least as good as the broadcast-quality linear services that sports fans have been accustomed to and enjoyed for decades."

Other key conclusions from the MediaKind 2021 Global Sports Forecast include:

• Subscription models dominate: The majority of rights-holders who operate a D2C OTT service make it available as a subscription service. The subscription model is likely to be the dominant long-term business model.
• The UX bar is rising from entertainment to engagement: There is an even split between rights-holders who use their D2C platform as a content hub only and those who are exploring a whole range of fan engagement tools to exploit OTT's full capabilities.
• Focus is on maximizing recurring revenues: The rights-holders analyzed provide six different types of entry points for fans. There is a clear need to generate guaranteed revenues in a subscription culture where immediate cancellation is made easy ? for example, heavily discounted annual passes to tie fans to the service long-term.
• Opportunity for secondary monetization is mostly untapped: However, rights-holders must resolve the dilemma of whether to integrate secondary monetization verticals ? such as betting, ticketing, and merchandising ? on their D2C service to reach engaged fans behind a paywall or to put these features on their main website to reach wider audiences.

Aldrey added: "Streaming is a major part of sports media, with internet-based delivery now very much the present, as well as the future of media content distribution. The growing ubiquity of D2C platforms means they now form an essential part of any strategy for live sport ? regardless of whether they are a complementary service to broadcast coverage or the primary means of distribution. While current D2C services are largely representative of an emerging market, this sector is ripe for experimentation, exploration, trial and error, innovation, creativity, and risk-taking ? with big rewards for those that get it right."

About this report

The MediaKind 2021 Sports D2C Forecast provides a global snapshot of the rapidly evolving developments in the sports media industry, offering unique insights into industry thinking and best practices around the role of D2C services.

Based on a combination of interviews with senior decision-makers at rights-holders and research conducted between May and October 2020, the report covers 40 sports rights-holders from across the US and EMEA which account for about three-quarters of the global value of the sports media rights market and where the vast bulk of D2C services are concentrated. These rights-holders include the four major US sports leagues, global and regional governing bodies, national associations, leagues and clubs. It encompasses the wealthiest rights-holders in sport, as well as niche sports and challenger events.

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NOTES TO EDITORS

The MediaKind 2021 Sports D2C Forecast

MediaKind commissioned The Sports Playmaker to conduct the analysis for the MediaKind 2021 Sports D2C Forecast.

The information collated on each D2C service covered in this report includes the following: business model, access/distribution method; pricing; content; fan engagement features used; and other monetization streams employed. Any information specific to a rights-holder, such as pricing or fan engagement tools, is public. If the D2C service is a subscription service, information is taken from rights-holders' promotional material and official channels.

Any interviews included in the research were provided on a confidential basis, so there is no attribution of any information to specific sources. The quotes included are drawn from these interviews and are not attributed to particular individuals.

About MediaKind

MediaKind is a global change leader in media technology and services. Its mission is to deliver transformation by building a continuously better media universe alongside its customers and partners. Drawing on a pioneering industry heritage and fueled by innovation, MediaKind embraces and champions new standards, methodologies, and next-generation, immersive live and on-demand media experiences worldwide. Its end-to-end media solutions portfolio includes Emmy award-winning video compression for contribution and direct-to-consumer video service distribution, advertising and content personalization, high-efficiency cloud DVR, and TV and video delivery platforms. For more information, please visit: www.mediakind.com

About The Sports Playmaker

The Sports Playmaker brings new technologies and innovative companies to the sports sector. It enables growth for its clients in the following ways:

• identifying revenue streams for clients new to the sector and shapes market entry and product development through the provision of market intelligence and advisory services;
• supporting clients with sales and marketing thanks to its extensive network within the sports industry; and
• sourcing funding where capital injection is required from its roster of sports investment funds.

For more information, please visit: www.thesportsplaymaker.com