Live sport remains an important content genre with the ability to attract consumer eyeballs and improve customer loyalty for both telcos and TV operators.
However, TV operators (FTA and Pay TV) which until recently were the undisputed leaders in providing sports content, are being disrupted by sports streaming apps and telcos.
The last decade has seen massive disruption and a significant rise in competitive intensity in the telco and media industries. For telcos, as pricing and margin pressures intensify and core telco offerings become commoditised, they will look towards product differentiation as a way to capture a greater share of the consumer’s wallet. Media companies have been at the receiving end of the unbundling or disaggregation of content and the shift from linear to on-demand viewing. The acquisition of premium content rights offers a chance to boost the value and appeal of other products and/or content and stand out against competitors that all now provide services that have become widely commoditized for both telcos and TV operators.
Of all the video content genres, sports has the best reputation for delivering audience reach and large number of viewers. But as telcos and TV operators look to differentiate themselves, sport’s appeal has increased over time, so has the value of and the competition for sports rights. Traditionally, sports has been bundled with other content and bundled as part of a larger Pay TV package making it in some cases prohibitively expensive for a many viewers who have no choice but to accept these high prices due to the inflexibility of choosing the content and paying for what they want.