Not surprising. When the sports industry has for so many decades depended on
welfare checks, generously donated by those who have no interest in pro sports,
the much more competitive, market-based, OTT model must seem meager indeed. And
yet, even OTT sites, such as Sling, provide at least some welfare checks to
sports - ESPN, in the Sling example.
Competition is the only mechanism that self-regulates an industry. In the
sports sector, it has been lacking. Hence, the obscene salaries.
Bert
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https://www.tvtechnology.com/news/ott-disappointing-for-many-sports-organizations-per-pwc
OTT ‘Disappointing’ for Many Sports Organizations, Per PwC
Nearly half of organizations with OTT platforms said results were either below
expectations or outright disappointing.
Michael Balderston Nov 11, 2019
LONDON—OTT is not king yet in the sports world. While OTT services continue to
gain traction with consumers and as a new way for networks to offer their
content, sports has yet to jump on the bandwagon, as depicted in a new study
from PricewaterhouseCoopers.
In its “Sports Survey 2019,” 5.4% found of respondents found that the
commercial success of rights owners’ OTT platforms were disappointing and
should be restructured, while a leading 39.7% said that the platforms did not
meet their expectations, but that there was still promise; that accounted for
45.1% of all respondents. A combined 34.9% found their expectations met (30.7%)
or exceeded (4.2%).
A number of challenges for rights owners as they attempt to implement an OTT
platform were laid out in the report. At the top was ensuring a high quality of
service (76.8%), followed by creating enough content to generate long-term
interest (75.1%) and developing an effective pricing strategy (68.5%) rounding
on the top three. However, a number of benefits have also emerged, including
access to fan data, the ability to innovate sports formats through fan insights
and increased global reach and viewership.
“Sports leaders tell us that successful OTT distribution is by no means a walk
in the park and has been commercially underwhelming to date,” the report said.
“We see OTT as a potentially impactful, albeit non-essential part of
understanding your audience through a holistic fan engagement strategy.”
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