Professional sports’ transition to the internet has been uniquely turbulent compared to the rest of in-home entertainment. While sitcoms and Hollywood hits have seamlessly adjusted their release schedules and production processes for the internet age, the road to satisfying sports coverage remains rocky, and the resulting market is more fragmented.
Competition is only getting fiercer as more streamers vie to snap up their pieces of the sports pie. Some, like AppleTV+, have opted to be the home of a specific league. Others, like Netflix, have taken a more ad-hoc approach, securing high-profile NFL games or MMA bouts to prove their pro sports expertise.
It’s the logical progression of the strategy that helped streaming TV take hold over the past decade. However, it’s the wrong path if the goal is to move fans online.
Built different
Netflix and Hulu, in their early days, set a precedent for how customer acquisition in streaming would work:
Step 1: Draw viewers in with a “trending” show or movie and a free trial, if needed.
Step 2: Have enough new content to ensure there is always something users will want to watch next.
Step 3: Keep doing it!
It’s an effective strategy for the types of content they’ve traditionally provided, but everything about sports programming is different from their norm. The average Netflix or Hulu original series consists of a few dozen hours of recorded, encoded and cached content released in 8- to 10-episode seasons on a roughly annual cadence. In contrast, the NFL’s regular season consists of more than 270 live matches played, sometimes simultaneously, over 18 weeks.
This format presents a challenge to streamers who have built their infrastructure and operating practices around the more contained model that’s carried them so far. They’ve perfected the art of staying online amid traffic spikes on release days, but doing it for a live event is a different ballgame. Add in the live recaps, news, commentary and highlights dedicated fans want, and it’s another sport altogether.
On the delivery side, sports scheduling quirks also present a challenge. Seasons are long, and ongoing comprehensive access is critical to customer satisfaction. Drawing viewers in with trials (or for a single paid month to watch a new release) works well when there’s plenty of similar content that might be of interest. However, the football fans who joined Netflix for the Christmas Day game won’t find any other relevant content there — why then, if they don’t have the platform already, would they stick around?
The intense emotional element of sports complicates the situation, too. Viewer satisfaction and engagement hinge on continued, consistent access even more than other forms of popular entertainment. Furthermore, loyalty runs deep. Sports fans aren’t just looking for entertainment; each game is part of a relationship between a fan and their team, and sometimes, it’s a lifelong one.
Given all these factors, the key to getting sports streaming on track will be to leverage those relationships to build trust. To do it, the model must be rebuilt from its foundation.
From the ground up
To preserve the lifelong loyalty teams have cultivated with their fans, league and association, leaders need to view what’s ahead as a marathon rather than a sprint. They’ll need to resist the allure of banner events on one streamer or another, approaching rights and licensing more holistically, with fans in mind.
Cross-industry bundles — like Hulu’s live TV and Amazon and AppleTV+’s pay-per-view/season plans — are a good first step. They allow viewers to slice and dice their access according to their interests, but few offer the breadth and flexibility necessary to meet fans’ expectations. The good news is that we know why things aren’t working, and that we can work together to change the course.
Peacock has gotten closer than most, offering a blueprint for what streaming success might look like. The platform uses the reach earned through its relationship with NBCUniversal to its advantage, parceling out live Premier League coverage across its network of owned channels and platforms. That infrastructure was put to the ultimate test during last year’s Paris Olympics and passed with flying colors. What Peacock’s success demonstrates is the power of bringing together expertise to build a better streaming experience for dedicated fans.
Other organizations can mirror Peacock’s success through their own cross-industry collaborations. Cable providers have experience planning and broadcasting live events and shows without interruptions or downtime. Sports leagues, teams and associations understand what fans care about and how to connect with them. Streamers are experts in connecting viewers to new content and experiences, innovating the delivery of in-home entertainment at a regular clip. No single group has experience doing all of it, but — together — everything needed for success is there.
No need for a hail mary
Connecting fans with their favorite teams presents a complex challenge in today’s digital environment — and it’s a challenge leagues, teams, streamers and cable providers will need to tackle together. The reality is that each time a streamer’s infrastructure falters during a live game or a fan finds the big match unavailable, the damage extends beyond the platform. Fans lose a little more faith in the league and team, too. As such, it’s on these parties to work together to perfect the model.
Sports leagues and leaders, streaming veterans and cable operators will need to set aside the competition and take a collaborative approach that prioritizes fan engagement. They’ll need to find holistic, long-term solutions rather than leaning into fragmented rights deals and one-off events. When these groups unite and begin to focus their strategies on the comprehensive and consistent access fans want, sports streaming will finally transform into the successful and satisfying service we all know it can be.
Sean Casey is senior vice president of product management at CSG, an SaaS platform company that helps brands solve their toughest business challenges.
