Report: One-third of American households with internet access are subscribed to a direct-to-consumer sports streaming platform
In a groundbreaking study titled "Streaming Live Sports: Where Opportunity Meets Complexity," research firm Parks Associates, in partnership with InterDigital, has shed light on the evolving landscape of sports broadcasting. The study reveals that as traditional pay-TV services continue to lose subscribers, streaming is becoming an increasingly significant player in the sports media industry.
The research indicates that among "Sports Viewers," a term used to describe those who primarily consume sports content, 40% watch sports only via streaming services. An additional 30% watch sports content via both streaming and traditional broadcast/antenna or pay-TV services. The study further highlights that one-third (33%) of U.S. internet households subscribe to direct-to-consumer (D2C) sports-specific streaming services.
The study underscores the importance of sports content to the streaming industry, as these consumers are the biggest spenders for subscription services. On average, D2C sports service viewers spend an impressive $111 per month on all streaming subscriptions, significantly higher than the average spend of $64 for non-sports viewers.
However, the study also stresses that as games and events shift online, streaming services must navigate a complex web of technical challenges that can impact the viewing experience. Key challenges identified include bandwidth limitations, latency, buffering, and scalability issues that degrade the live sports streaming experience. Device and platform compatibility complexities due to diverse consumer hardware and software environments, video quality problems, and engaging younger demographics who favor social media-based sports content but also face quality and latency issues are other challenges highlighted in the report.
To address these technical challenges, the study suggests deploying advanced video codecs like HEVC and H.266 (VVC) to improve compression efficiency and deliver higher video quality, crucial for immersive live sports experiences.
The opportunities highlighted in the report revolve around the shift to streaming and expanding audience engagement, such as increased accessibility to niche and out-of-market sports previously unavailable on traditional TV, new interactive features, and in-stream betting capabilities, which can drive deeper engagement and revenue.
In summary, while the live sports streaming market offers significant growth and engagement opportunities, service providers must overcome technical barriers—such as buffering, latency, and video quality—to meet consumer expectations and capitalize fully on the digital transformation of sports media.
The full study can be downloaded here.
[1] Parks Associates. (2023). Streaming Live Sports: Where Opportunity Meets Complexity. [Study] [2] Goodman, M. (2023). The Transformation of the Sports Media Landscape. [Interview] [3] Oisel, L. (2023). Addressing the Technical Challenges in Live Sports Streaming. [Interview] [4] Parks Associates. (2023). The Impact of Sports Viewers on the Streaming Industry. [Press Release]
- Traditional pay-TV services are losing subscribers as streaming services become more significant in the sports media industry, with 40% of sports viewers watching solely via streaming services and an additional 30% consuming sports content through both streaming and traditional platforms.
- Sports content holds consequences for the streaming industry, as these consumers are shown to be heavy spenders, averaging $111 per month on all streaming subscriptions, significantly higher than the average $64 spent by non-sports viewers.
- Despite these opportunities, the study emphasizes that streaming services need to grapple with a variety of technical challenges such as bandwidth limitations, latency, buffering, scalability issues, device and platform compatibility, video quality problems, and engaging younger demographics.
- To address these challenges, advanced video codecs like HEVC and H.266 (VVC) can be deployed to improve compression efficiency and deliver higher video quality essential for immersive live sports experiences.
- The report also explores the potential advantages presented by the shift to streaming, including increased accessibility to niche sports, new interactive features, and in-stream betting capabilities, which could drive deeper engagement and revenue.
