IP first: LTN on how to change the live sports distribution game
By Sara Khan, LTN general counsel and GM EMEA.
This year’s live sporting events have been a huge broadcasting achievement. The Women’s FIFA World Cup 2023 held in Australia and New Zealand broke revenue, attendance and viewing records, while the Rugby World Cup in France built on the success of the 2019 tournament in Japan. Undoubtedly, the spectacle of live sports is booming, and, with high-profile events including the Olympics and UEFA Euro 2024 on the horizon, it shows no signs of slowing.
The sports market is evolving rapidly, which means that broadcast models need to serve a feverish digital demand that is constantly changing. The technology and business requirements to support global, cross-platform live sports distribution are becoming increasingly demanding. This, coupled with surging costs and competition for premium sports rights, has meant that media organisations must carve out new ways to reduce operational costs, drive efficiencies and secure maximum ROI.
One approach that holds the key to success is adopting an IP-based approach to video transport. This is a game-changing play that underpins any successful live sports distribution strategy.
The current distribution challenges
In today’s fast-paced sports landscape, it is no surprise that we see many complex rights deals and fragmented distribution models. Media companies need efficient means of delivering multiple versions of live event content across various platforms and geographies. Legacy broadcast workflows and infrastructure cannot provide the scale or flexibility required to meet the demands of multi-platform digital audiences, so sporting federations and rights owners must shift their focus to direct-to-consumer (D2C) strategies and distribution across over the top (OTT) and FAST platforms.
Adopting an intelligent IP-first model is best for business as it empowers media brands to integrate complex business rules, rights management and blackouts directly within the transmission network, saving time and operational resources. Through IP, rights owners have the infrastructure to more efficiently harness automated live event versioning solutions with scalable tools for custom graphics, watermarking, slating, video insertion and SCTE triggers for localised advertising while deploying remote announcers or voice-overs in the local language. In turn, audiences benefit from relevant, customised and immersive viewing experiences.
Enhancing business efficiency with intelligent tech
Today’s macroeconomic climate means budgets are tighter than ever, but the battle for sports rights remains costly. Because of this, media and sports organisations need to identify how they can reduce their operational burden and drive ROI. Cutting costs and increasing revenue while keeping up with the rapidly changing landscape is challenging. Embracing a forward-thinking, IP-first technology strategy is critical to future-proofing media distribution while maximising profitability.
Media companies are recognising the limitations of satellite-based video transport and migrating to an IP-first model for a more flexible, cost-efficient alternative. With an IP-based approach, media organisations benefit from the ability to seamlessly integrate with full-chain video workflows from production to agile cloud playout systems. IP also enables the seamless use of automated ad signalling and metadata tools to generate greater monetisation and personalisation in real-time. These are key for rightsholders to optimise ad revenues while alleviating pressure on in-house resources.
Reliable IP backbone is essential for live sports
Simplifying complex and siloed ecosystems and minimising operational costs is only feasible with a proven IP-first model that provides the backbone and scalable, interoperable technologies. These technologies should integrate with existing infrastructure and various first- and last-mile protocols as required. A managed, multicast-enabled IP network with proprietary architecture and intelligent routing and versioning protocols removes the need for any physical infrastructure except at the endpoints and delivers higher redundancy and infinite scalability.
There are no second chances with live sports broadcasting; delays or interrupted streams are unacceptable for viewers. Particularly when it comes to live betting scenarios or interactive, game-like content experiences, the stakes couldn’t be higher – content providers need to trust their distribution partner to deliver low latency and high reliability at all times.
Securing success in the live sports market
While many media companies are considering their next move in a fast-paced rights-buying market, the first step to long-term commercial success is moving to an IP-based approach to live sports distribution. Business leaders know that they won’t be able to reduce the cost of sports rights, but they can increase ROI on costly investments by enabling efficient multi-platform distribution, optimising downstream monetisation and reducing operational costs.