One D2C app at a time: Mediakind on revolutionising live sports entertainment
By Erik Ramberg, MediaKind VP business development and strategic partners.
Nearly all of the eight billion people on this planet watch sport. In 2022, more than five billion viewers tuned into the World Cup, making it one of the most watched sports events of all time. It’s this palpable connection between fans and teams that makes live sports entertainment such a dynamic, exhilarating experience.
Given the power of this fan connection, some forward-thinking sports entities have started taking that bond to the next level, creating direct-to-consumer (D2C) streaming apps for live sports viewing. Whether fans are at home or on the go, they’ll be able to catch the big game from any location across any device, with no cable or satellite TV subscription required. That means built-in fan engagement, 24 hours a day, seven days a week.
D2C streaming apps have already greatly impacted how we consume movies, television shows, and world news. Now, they’re about to change how we watch sports and could even represent the future of live sports entertainment.
Rise of the D2C sports app
The proliferation of live streaming video and the growing number of professional sports teams signing new TV rights deals with non-traditional, over-the-air (OTA) broadcasters has been rocketing in recent years. This unique trend has emerged as a viable solution for sports teams looking to regain the viewership of cordcutting fans, plus those who have lost access to a regional sports network (RSN).
Take the NBA League Pass, for example. Its over the top (OTT) subscription-based app allows basketball fans access to live games, on-demand content, and exclusive features available only to app subscribers. Marquee Sports Network is another case in point. The Chicago-based broadcaster recently launched its own D2C app, which gives Chicago Cubs fans in-market access to live MLB games, original programming, and one-of-a-kind Cubs-related content.
Brief history of the RSN model
Over the past three decades, the RSN model has been the golden template for all regional sports broadcasting. Essentially, RSNs pay a significant amount of cash to purchase broadcasting rights from a particular sports team or league. Afterwards, they approach various pay TV operators, like Comcast and DirecTV, to negotiate a deal for these distributors to carry their channels. Television operators agree to pay RSNs a monthly fee to include their channels within the packages they market to customers. Finally, customers pay TV operators to receive RSN channels within their selected cable or satellite TV package.
But this golden template is no longer a cost efficient solution for any party involved. For RSNs to recoup the money spent on broadcast rights, they pass that cost onto pay TV operators, who, in turn, pass it onto its consumers. As a result, millions of households have opted out of their pay TV subscriptions, and many distributors have even dropped pricy RSNs from their channel packages. But the most problematic effect by far has been the inability of local sports fans to tune in and catch the big game.
This is why the D2C live streaming model has become such a gamechanging innovation for sports teams, leagues, and regional sports broadcasters alike; they get to keep fans entertained, save on resources, and create new monetisation opportunities. It’s a win-win all around.
Essential components of D2C live streaming
Linear broadcast expertise: The whole perk of livestream video is that it looks, well, live. In the case of D2C sports apps, the live video stream should look and feel the same, or even better, as a live TV feed.
Consumers and fans will no longer tolerate a lesser experience in their streaming app. Therefore, it is imperative that while these apps drive innovation, they must also adhere to the traditional requirements of linear broadcast television—scalability, impressive uptime, and pristine video quality.
Use of new technologies: Regarding distribution, accessibility, and back end support, a D2C sports app should always leverage new technologies to extend viewer reach and build system resilience. For example, cloud-based streaming solutions allow broadcasters to drive operational efficiency and cost-effectiveness, while artificial intelligence (AI) helps enhance scalability during periods of fluctuating viewership.
Reliable infrastructure, system resiliency: Functionality is fundamental. It allows broadcasters to scale a D2C offer effectively, keep fans engaged, drive video quality, and maintain uptime. It also mitigates latency, downtime, and overall disruption. But among all the benefits a reliable infrastructure provides, scalability matters most. Since D2C subscriber growth can occur rapidly, these apps need to be able to support it.
The app should have the intelligence and the tooling to navigate different types of connections, speeds, bandwidth abilities, and network quality. The resiliency has to be there.
Seamless ad integration: Ads provide incredible value for content owners; the better the ads perform, the more value they create. So, in addition to delivering top-notch quality video, D2C sports apps should also make sure to incorporate seamless ad integration into the live stream. This further enhances the broadcast-like experience, giving advertisers a new way to connect and engage with consumers.
Device synchronisation: Technology is everywhere in today’s world. People have become so hyper-accessible that it’s now imperative for broadcasters and content owners to connect with audiences in every way possible on any device. D2C sports apps must be designed with that need in mind.
More specifically, D2C sports apps must deliver broadcast-quality video intelligently optimised for any mobile device or desktop computer. More accessible content equals more fan engagement, and that’s music to advertisers’ ears.
Building the bridge for cordcutters: It’s not just viewers who benefit; the opportunity also extends to sports broadcasters. With D2C streaming apps, sports broadcasters can continue to build upon fan engagement, expand to newer, more diverse audiences, and enhance possibilities for content monetistion.
But first, it needs to start with a reliable and robust technological infrastructure; the building blocks of broadcast-quality livestream video.