Thursday, May 23, 2024

    Sports subscribers would pay a 38% higher telco bill — if subscriptions were included

    The latest report from Bango shows there is a growing opportunity for telcos to enter the booming sports streaming space – and score big

    Three quarters of ‘SportsVOD’ subscribers (76%) would pay a higher monthly telco bill if an all-in-one subscription service was included, with the average sports subscriber willing to pay 38% more for this service,

    That’s according to the latest research from subscription Super Bundling provider Bango, released in its new Going for Gold report.

    The research, which calls on data from 2,000 “SportsVOD” subscription users – that is those streaming sports video content – and 3,000 general subscribers, points to a booming SportsVOD (sports streaming and on-demand video) sector across the USA, posing a major opportunity for telcos there – and offering an insight into what the market for the same may look like elsewhere.

    Not only do SportsVOD subscribers typically adopt more subscriptions — 7 per person compared to a US average of 5 — they’re also willing to pay significantly more for those services.

    According to Bango’s analysis, the average SportsVOD subscriber pays a massive $1,440 per year for all of their subscription services — $120 per month. In contrast, the average US subscriber pays just $77 per month (66% less).

    Despite this high market value however, Bango’s analysis also points to challenges in the booming sports streaming space. According to the report, a combination of diverse broadcasting rights, disjointed platforms, and rising prices is driving demand for more centralised streaming services.

    More than half of SportsVOD subscribers say they can’t afford all the subscriptions they want, while 73% agree that there are simply too many different subscription services needed to cover the sports they’re interested in.

    Given this fragmentation, 87% of those paying for SportsVOD subscriptions are calling for a single ‘content hub’ to centralise all of their sports subscriptions (and more) into one place. Without this sort of all-in-one solution, 55% of sports streamers admit to using pirate streaming services to access all of their favorite content in one place.

    As Paul Larbey, CEO at Bango explains: “When half of all sports fans admit to online piracy, you know something’s gone wrong. Clearly there’s a huge demand for sports streaming, but the current lack of centralization is undermining this incredibly valuable market.

    “This fragmentation means that new alliances are forming among competitors. The combined effort by ESPN, Fox, and WB Discovery to build a single sports streaming platform is just one example, but we predict other collaborations will continue to define this space.”

    In terms of what this collaboration could look like, Bango’s report points to the rise of Super Bundling, with a growing number of sports fans combining different sports packages through a third-party such as their wireless or cell phone provider. In fact, Bango’s research shows that 70% of SportsVOD subscribers want their cell phone provider to offer an all-in-one subscription platform.

    Larbey adds: “Sports fans want choice. They are willing to pay to watch the content they are interested in, and the reality is that this content will come from different providers. As a result, sports fans want to simplify this arrangement through easy billing and control of subscriptions. And they want flexibility and the ability to build their own bundles.

    “Super Bundling finally brings that level of flexibility to the sports industry by collating disjointed services into one singular platform. Already, Verizon is bringing multiple SportsVOD services under one roof, including the NBA and NFL+, as well as sporting news subscriptions like The Athletic. This approach puts the subscriber first, creating the opportunity for people to mix and match. That’s good news for sports fans and will bring more paid subscribers to the sports broadcasting industry as a whole”.

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