Transformational changes in sports media will be driven by AI that will deliver automatic content production (from filming to production and targeted distribution).
— CEO, Sports Technology Company
The sports media industry is experiencing unprecedented changes. As fans' habits continue to evolve and the sports industry faces further fragmentation, a dialogue among all market participants – fans, rights owners, media distributors, investors, and partners – is necessary to ensure the continued success of the sector.
Sports media is innovating at a rapid clip. New technologies, including AI capabilities, virtual production tooling, and cloud-based workflows, are transforming content production and distribution. Meanwhile, digital native sports fans are consuming content in new ways, ranging from ultra-personalized feeds and streaming subscriptions to Web3 fan communities. The landscape is in flux, experiencing top-down and bottom-up changes, and is ripe for new products and revenue streams.
An overwhelming majority of sports executives see change on the horizon: Some 79% believe automated content creation will have a major impact on their business, and nearly as many (74%) believe remote production technology will be just as game-changing. Both capabilities can lower costs while producing content at scale and unlocking new revenue streams, giving rights holders the ability to create differentiated products from a single sports event. The partnership between WSC Sports Technology and the NBA, which provides customized in-game and post-game highlight reels, is just one example.
Similarly, content localization technologies like Virtual Board Replacement (VBR)—where physical objects like edges of the playfield are replaced with virtual advertisements—are now reaching maturity. As media production and distribution workflows move to the cloud, rights holders and their media rights licensees will have greater opportunities to acquire new, hyper-local advertisers.
Personalized live feeds in combination with no latency virtual advertising has the potential to significantly change the sponsorship and media rights landscape we see today.
— Head of Marketing, Sports Federation
On the consumer side, just over half (52%) of sports executives believe content augmentation (AR/VR, gamification, and advanced stats) will impact sports media. This tepid response is due in part to low consumer adoption of mixed reality products. However, continued innovation in mixed realities and launches of devices like Apple's Vision Pro headset signal emerging opportunities in the area.
Sports executives are less bullish on blockchain and tokenization, with only 26% thinking that Web3 technologies and ownership models will move the needle. This is largely due to low adoption among fans (only 6% surveyed have purchased a sports NFT or fan token). However, executives believe that in the future, blockchain-based loyalty programs hold great promise and have the potential to create synergies with gaming and live events. Our survey of sports fans shows interest in a hypothetical "digital fan ID" that can unlock personalized content and experiences for sports fans. Leagues like the NBA, along with technology companies like Sportradar, are already experimenting with this concept and are testing ways to provide tailored experiences to individual fans.
Rights holders and sports media groups have an opportunity to innovate, thanks to advances in enabling technologies and major shifts in consumer habits. To take advantage of a rapidly changing landscape, sports business actors should invest in a well-defined innovation roadmap that targets areas with long-term growth potential. Identifying interdependencies between innovation in production, distribution, and consumer behaviors is key to thriving in a changing ecosystem.
Cheaper production and augmented reality will drive major changes in the sports media landscape.
— CEO, Sports Marketing Agency
