AMPERE：2023年體育在全球流媒體戰爭中的作用（英文版）（37頁）.pdf

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1、The role of sports in the global streaming warsJack GenoveseFebruary 2023 Ampere Analysis 20232Sports content is playing an increasingly prominent part in the streaming wars1Against a background of rapid acceleration in spend on content by subscription OTT platforms spurred by the wider streaming wa

2、rs,streaming services investment in sports rights has lagged a consequence of infrastructure and business model challenges.Nonetheless,growing consumer demand for streamed sport is increasingly being met:in 2023,subscription OTT services will account for more than a fifth of total spend on sports ri

3、ghts across the most important sports markets worldwide.2DAZN led the way in several markets with a bold strategy targeting top-tier rights and offering low-priced,direct-to-consumer access to premium sports.In 2022,DAZN accounted for 54%of all subscription OTT services spend on sports rights.DAZNs

4、strategicfocus is now turning away from consumer growth and international expansion to focus on long-term profitability through a strategy of price increases and revenue diversification.3Recent years have seen an acceleration in sports rights spend by general entertainment streamers such as Peacock

5、and Viaplay as they look to differentiate from peers in an increasingly crowded market.The exclusive NFL deal with Amazon that kicked off in 2022 was arguably the turning point for sports on these platforms,representing the largest single deal signed to-date by any sports streaming service,and since

6、 surpassed only by YouTube also with the NFL.4Despite the early challenges of the sports streaming model,spend on sports rights by subscription OTT platforms is destined to grow over the next few years.This is due in part to the opportunities that sports offer to streaming platforms;but also to thec

7、hallenging economic headwinds and shifting consumer expectations and habits which will limit traditional sports broadcasters ability to spend on sports rights going forward,leaving an opening for new entrantsSport and the streaming warsThe sports industry has until recently been a bystander in the s

8、treaming wars Ampere Analysis 20234The streaming wars can be defined by a set of competitive moves by rights buyers&ownersA general shift in consumption away from traditional formats and distribution models in favour of IP-delivered models causing disruption to the economic models that traditionally

9、 underpinned the creation and distribution of contentA set of strategic moves(such as launching an OTT service or expanding in new international markets)undertaken by content players to(re)position themselves in the light of new consumption patterns and adapt to the new competitive landscapeA high d

10、egree of competitive tension,inducing actors to undertake“winner-takes-most”types of strategy that lead companies to make significant short-term sacrifices in exchange for long-term strategic gains Ampere Analysis 20235The key trends in recent years have been growing uptake of subscription OTT and d

11、eclining linear viewingEnabled by the rapid diffusion of fast Internet connectivity,the way in which video and TV content is watched has evolved rapidly over the past decade Compared to traditional TV distribution methods,subscription OTT has enticed consumers with lower prices,vast content librarie

12、s,and convenient,flexible content delivery.This has led to a rapid adoption of subscription OTT,particularly in North America and Western Europe,where subscription OTT penetration surpassed pay-TV penetration for the first time in 2022As a result,traditional TV viewing time has declined to make spac

13、e for on-demand viewing:by 2020,linear channels and DVR viewing accounted for less than 50%of self-reported consumer TV viewing time*Self-reported weekly viewing data collected through a survey of 2,000 nationally representative internet users aged 18-64 per country per waveData refers to:USA,UK,Fra

14、nce,Germany,Italy,Spain,Netherlands,Sweden,Denmark61%59%55%48%42%37%14%16%19%23%26%24%25%25%26%29%32%39%201720182019202020212022USA and Western Europe,self-reported viewing*,by service type(%)Linear+PVRSubscription OTTAVoD/Other online videoSource:Ampere Consumer Ampere Analysis 20236Shifting consum

15、er behaviours led to the ramp up of investment in subscription OTT services11246691318242720122013201420152016201720182019202020212022Number of subscription OTT services with a minimum of 10m global subscribers(#)The past few years have seen a proliferation of subscription OTT services around the wo

16、rld.At the end of 2022,Ampere estimates that 27 services around the world had at least 10m subscribers,up from just one Netflix in 2012As new subscription OTT services launched to take advantage of rapidly evolving consumption patterns,the investment by this category of services on content has grown

17、 rapidlySince 2017,global spend on original and acquired TV and movie content from subscription OTT services has more than trebled(+229%),while spend by“traditional”content providers remained relatively flat(+2%)Tentpole Scripted Originals in particular are increasingly relied upon by streaming plat

18、forms to drive subscription growthLittle TV content however,shares the same ability to attract high-ARPU,highly-engaged subscribers as live sports.This has been the case since the early days of pay TV when Skys Rupert Murdoch famously described live sport as a battering ram for his nascent TV operat

19、ions and it has remained true in the streaming eraSource:Ampere Markets-Operators Ampere Analysis 20237Streaming growth has driven a consumer desire for sports to be available via OTT products37%21%42%34%22%44%42%18%40%18-34sAllSports Fans35-64sSource:Ampere Sports Consumer*Data collected through a

20、survey of 15,000 sports fans with Internet access aged 18-64,Q4 2022Data refers to:USA,UK,France,Germany,Italy,Spain,Australia,China,India,Indonesia,Brazil,and South AfricaSports fans*by live sports viewing preference,Q4 2022(%)Only want to watch via a streaming serviceHappy to watch via both stream

21、ing and broadcastOnly want to watch via broadcast TVNearly twice as many sports fans(37%)would now rather watch live sports via a streaming service than on a broadcast TV channel(21%)The flexibility offered by streaming is likely a key factor:72%of sports fans surveyed in Q4 2022 reported watching s

22、ports on their mobile phone,tablet or laptop at least weekly Ampere Analysis 20238Specialised,single-sport services led the way in bringing live sports to streaming200220032004200520062007200820092010201120122013201420152016201720182019202020212022Willow.TV Owned by:Times Internet Status:Operational

23、 Footprint:UCANFlosports Owned by:Independent Status:Operational Footprint:USANHL GameCenter*Owned by:NHL Status:Operational Footprint:GlobalNBA League Pass Owned by:NBA Status:Operational Footprint:GlobalNFL Game Pass*Owned by:NFL Status:Operational Footprint:GlobalMLB.TV Owned by:MLB Status:Operat

24、ional Footprint:GlobalEurosport Player Owned by:Warner Bros.Discovery Status:Superseded Footprint:GlobalEarly trailblazers*Subsequently rebrandedDisaggregated subscription OTT sports serviceSports league D2C servicePremium sports channels simulcast/overflowvMVPD/OTT sports service aggregatorType of

25、service Ampere Analysis 20239However,investment by subscription OTT services in sports rights has lagged behindSource:Ampere Markets Content;Ampere Sports Media Rights*Excludes spend on non-sport acquired content.Data on subscription OTT services spend on sports rights refers to the following 17 cou

26、ntries only:USA,UK,Germany,Italy,France,Spain,Australia,Brazil,Netherlands,Poland,Denmark,Sweden,Norway,Finland,Japan,India,South AfricaDespite the significant demand for sports on streaming services,investment on sports rights from subscription OTT services has lagged,particularly if compared to or

27、iginal contentHistorically,sports rights have been used as a loss leader by pay TV platforms.The cost of acquiring the rights to premium sporting events was typically higher than the revenues generated directly from the sale of subscriptions to the sports channels that carried themPay TV platform pr

28、oviders are typically able to make their money back by bundling sports channels with less expensive basic Entertainment channels,and by upselling sports channel subscribers to other more expensive features and productsWith the advent of subscription OTT services,the appeal of unbundled access to ent

29、ertainment services,including sports,has increased.However,the typical subscription OTT business model while simple is also a more challenging one to scale up to profitability.Furthermore,its more susceptible to churn,and it often lacks the multiple revenue streams which pay TV operators have tradit

30、ionally relied on28%13%2016201720182019202020212022Subscription OTT services share of total annual global spend on content(%)*Original(non-Sport)Sports rights*Ampere Analysis 202310Technical limitations have also slowed down the uptake of streaming in sports*Data collected through a survey of 15,000

31、 sports fans with Internet access aged 18-64,Q4 2022Data refers to:USA,UK,France,Germany,Italy,Spain,Australia,China,India,Indonesia,Brazil,and South AfricaIt wasnt before consumer uptake of fast,reliable broadband reached near-ubiquity that streaming could become a viable alternative distribution m

32、ethod for live sportsBut by their very nature,live sports require a high quality feed,with as little latency as possible which represented a technical challenge for streaming,which historically relied on supporting delivery by caching completed assets on servers close to consumer homes,a technique m

33、ore generally suited to non-live deliveryFurthermore,due to the popularity of the genre,solutions also needed to be scalable meaning that millions must be able to watch at the same time without the quality of the stream being affectedThis has required significant investment in delivery technology to

34、 make the live sports broadcast experience replicable on streaming platforms technology which has only begun to mature in the last few yearsEven today,sports fans show very little tolerance for poor viewing experiences with 53%of fans claiming they would rather not watch at all than watch bad sports

35、 coverageSource:Ampere Sports Consumer53%of sports fans*would rather not watch at all than watch bad coverage of their favourite sport Ampere Analysis 202311But as technology and infrastructure improved,new D2C services aimed to meet demand200220032004200520062007200820092010201120122013201420152016

36、201720182019202020212022Willow.TV Owned by:Times Internet Status:Operational Footprint:UCANFlosports Owned by:Independent Status:Operational Footprint:USADAZN Owned by:Access Industries Status:Operational Footprint:GlobalAbema Sports Owned by:CyberAgent(55%)Status:Operational Footprint:JapanEleven S

37、ports Owned by:DAZN(Access Industries)Status:Operational Footprint:GlobalOptus Sport Owned by:Optus Status:Operational Footprint:AustraliaNHL GameCenter*Owned by:NHL Status:Operational Footprint:GlobalNBA League Pass Owned by:NBA Status:Operational Footprint:GlobalNFL Game Pass*Owned by:NFL Status:O

38、perational Footprint:GlobalMLB.TV Owned by:MLB Status:Operational Footprint:GlobalMLS Live Owned by:MLS Status:Superseded Footprint:UCANEurosport Player Owned by:Warner Bros Discovery Status:Superseded Footprint:GlobalbeIN Sports Connect Owned by:beIN Status:Operational Footprint:GlobalNow TV(Sports

39、 Pass)Owned by:Sky(Comcast)Status:Operational Footprint:UK,Italy&GermanyNBC Sports Gold Owned by:NBC Universal(Comcast)Status:Superseded Footprint:USAFuboTV Owned by:Independent Status:Operational Footprint:UCANConsolidatorsDisaggregated subscription OTT sports serviceSports league D2C servicePremiu

40、m sports channels simulcast/overflowvMVPD/OTT sports service aggregatorType of service Ampere Analysis 202312Meanwhile,rights owners are looking to streamers to revive competition for sports rightsThere is little doubt that sports will continue to make their transition towards streaming.A key reason

41、 is the challenging economic outlook for“traditional”sports broadcasters pay TV channels,commercial broadcasters and public service broadcasters,particularly in Western Europe and North AmericaDue to shifts in consumer behaviours,“traditional”TV revenues have entered a phase of steady structural dec

42、lineAs revenue pressures for this category of broadcasters have intensified,the proportion of their revenues spent on sports rights has stopped growing partially also as a result of the competitive landscape moving towards premium original contentAssuming the proportion of revenues spent on sports r

43、ights by traditional broadcasters grew at the same rate as the past four years over the next four,total spend on sports rights by these groups in Western Europe and North America would decline by 4.2%,or$1.2bn per year by 2027Rights owners will therefore need to be able to attract further investment

44、 by streaming platforms,in order to fill the gap left by traditional sports broadcasters and increasingly they are turning to general entertainment streamersSource:Ampere Markets Operators;Ampere Sports Media Rights23522920919314%15%0%2%4%6%8%10%12%14%16%050100150200250300Spend on Sports Rights(%of

45、TV Revenues)TV Revenues($bn)Traditional TV revenues*vs spend on sports rights by traditional sports broadcasters*(NAM,WE)TV revenuesSpend on sports rights as%of TV revenues*Traditional TV revenues refer to:TV advertising,pay TV,and public TV revenues.*Traditional sports broadcasters refer to:public

46、broadcasters;commercial(free-to-air)broadcasters;premium channels;pay-TV platforms.Data refers to the following 11 countries only:USA,UK,Germany,Italy,France,Spain,Netherlands,Denmark,Sweden,Norway,Finland Ampere Analysis 202313Disaggregated subscription OTT sports serviceSports league D2C servicePr

47、emium sports channels simulcast/overflowvMVPD/OTT sports service aggregatorType of serviceThere is now a huge variety of sports streaming apps,serving many different strategic needs200220032004200520062007200820092010201120122013201420152016201720182019202020212022Willow.TV Owned by:Times Internet S

48、tatus:Operational Footprint:UCANFlosports Owned by:Independent Status:Operational Footprint:USADAZN Owned by:Access Industries Status:Operational Footprint:GlpbalAbema Sports Owned by:CyberAgent(55%)Status:Operational Footprint:JapanEleven Sports Owned by:DAZN(Access Industries)Status:Operational Fo

49、otprint:GlobalGCN+Owned by:Warner Bros Discovery Status:Operational Footprint:GlobalB/R Live Owned by:Warner Bros Discovery Status:Operational Footprint:UCANOptus Sport Owned by:Optus Status:Operational Footprint:AustraliaNHL GameCenter*Owned by:NHL Status:Operational Footprint:GlobalNBA League Pass

50、 Owned by:NBA Status:Operational Footprint:GlobalNFL Game Pass*Owned by:NFL Status:Operational Footprint:GlobalMLB.TV Owned by:MLB Status:Operational Footprint:GlobalMLS Live Owned by:MLS Status:Superseded Footprint:UCANF1 TV Pro Owned by:Formula 1(Liberty Media)Status:Operational Footprint:GlobalLa

51、Liga Pass/Plus Owned by:LaLiga Status:Operational Footprint:ThailandEurosport Player Owned by:Warner Bros Discovery Status:Superseded Footprint:GlobalbeIN Sports Connect Owned by:beIN Status:Operational Footprint:GlobalNow TV(Sports Pass)Owned by:Sky(Comcast)Status:Operational Footprint:UK,Italy&Ger

52、manyNBC Sports Gold Owned by:NBC Universal(Comcast)Status:Superseded Footprint:USAESPN+Owned by:ESPN(Disney)Status:Operational Footprint:USAKayo SportsFuboTV Owned by:Independent Status:Operational Footprint:UCANMainstream Owned by:Foxtel(News Corp(65%)Status:Operational Footprint:Australia Ampere A

53、nalysis 202314Recent NFL deals in the US have contributed to rapid growth in streaming spend on sportsThe NFL is an interesting case study of a major sports property which has been looking beyond TV broadcasters to generate media rights revenue growth domesticallyThe NFL is the single largest sports

54、 property by value of media rights.In 2021,it announced a series of rights deals with its domestic US broadcast partners,which for the first time included a streaming platform,Prime Video,having exclusive rights to NFL games,starting from 2022.Then,in December of 2022,YouTube TV was announced as the

55、 new holder of the exclusive rights to the NFL Sunday Ticket,a package of regular-season out-of markets gamesOverall,the new rights cycle will bring in just shy of$12bn per year in domestic TV revenue for the NFL,a 64%increase compared to the previous cycle.Of that,25.4%will be generated from subscr

56、iption OTT platformsThe two NFL domestic deals account for much of the growth in spend on sports rights by subscription OTT services globally.By 2023,we expect streaming platforms to account for 21%of global spend on sports rights,up from 13%in 20220.10.40.91.82.02.95.28.5201620172018201920202021202

57、22023(f)Global Subscription OTT Spend on Sports Rights,$bn*North AmericaWestern EuropeRest of WorldSource:Ampere Sports Media Rights*Data on subscription OTT services spend on sports rights refers to the following 17 countries only:USA,UK,Germany,Italy,France,Spain,Australia,Brazil,Netherlands,Polan

58、d,Denmark,Sweden,Norway,Finland,Japan,India,South AfricaDAZN as a market makerThe emergence of dedicated sports streaming services and the importance of DAZN Ampere Analysis 202316DAZN has been the major disruptive force in the sports rights markets since it launched Source:Ampere Sports Media Right

59、s*Data refers to the following 17 countries only:USA,UK,Germany,Italy,France,Spain,Australia,Brazil,Netherlands,Poland,Denmark,Sweden,Norway,Finland,Japan,India,South AfricaNo sports-dedicated OTT service has had as much of an impact on the global sports broadcasting market as DAZNLaunched in 2016,i

60、t first settled in a few selected markets before launching worldwide in 2020,offering a limited but growing portfolio of global rights and original content outside its core territoriesDAZN is the largest sports-dedicated subscription OTT service in the world by spend,accounting for over half of all

61、streaming spend on sports rightsIn 2022,it surpassed Paramount to become the fifth largest investor in sports media rights globallyDAZN,6.6%Comcast/SkyDisney/ESPNFoxWarner ParamountTelefonicaDirecTVCanal+BT0%5%10%15%20%25%30%2016201720182019202020212022Top 10 media companies by spend on sports right

62、s,2016-22(%of overall global spend on sports rights*)Ampere Analysis 202317Unlike its predecessors,DAZN bought top-tier sports rights in its core markets to grow its market share rapidlyIn its core markets,DAZN holds the rights to some of the most valuable rights propertiesAs a result,the vast major

63、ity of DAZNs spend on sports rights is for single-country dealsIn Italy DAZN acquired the exclusive rights to the majority of the Serie A games in the country in 2021,and co-exclusive rights of the rest of the games.The Serie A deal is the current largest rights deal held by DAZN,at$883m per seasonI

64、n 2022,DAZN was the largest investor in sports rights in Italy(where it accounted for 47%of total rights spend in the country)and Japan(35%)Source:Ampere Sports Media Rights452436061,3411,3611,9502,5642016201720182019202020212022DAZN spend on sports rights by year,by country($m)JapanGermanyItalySpai

65、nUSARest of World Ampere Analysis 202318But business challenges remain,as DAZN is yet to be profitable in most of its major markets02004006008001,000SpainUSAJapanGermanyItalyDAZN subscription revenues vs spend on media rights*,core markets,2022($m)Media rights spendSubscription revenues*In its core

66、markets with the exception of Japan DAZN is spending more money on sports rights than it is generating from subscriptionsSports rights are the single largest cost category for DAZN,representing around two thirds of its total cost base.The second major cost category for DAZN is marketing and other co

67、ntent costs,such as the cost of Originals,production costs for the live broadcasts,and highlights and magazine-style showsDAZN has indicated that it does not expect its rights cost base to change substantially over the next few years,as it strives to become profitable by 2024Revenues will therefore

68、need to increase over the next few years for DAZN to reach profitabilityCurrently,most of its income is derived from subscriptions.To boost revenues,DAZN has undertaken a number of strategic initiatives to support subscriber value and diversify revenue streamsSource:Ampere Sports Media Rights,Market

69、s-Operators*Excludes licensing/distribution revenues from third-party platforms Ampere Analysis 202319DAZN has focused on pricing changes in order to boost subscription revenue05101520253020162017201820192020202120222023DAZN monthly ARPU,selected territories($)GermanyJapanItalySpainAs its investment

70、 on sports rights has increased over time,DAZN has been introducing new pricing structures in its various markets,to better reflect the value of its rights portfolio,manage seasonality and churn,and better serve different segments of its customer baseDespite raising its prices in recent years,DAZNs

71、subscription base has remained broadly stable,contributing to revenue and operating margin growth Furthermore,DAZN now offers monthly and annual subscriptions,different tiers with access to different events,and has even launched a FAST channel in Germany to promote its sports coverageSource:Ampere M

72、arkets-Operators Ampere Analysis 202320And it has recently begun to expand ancillary revenue streams to support the bottom lineDAZN estimated revenue breakdown,2023SubscriptionsAdvertisingOther revenuesDAZN is expected to generate an estimated 10%of its 2023 revenues from advertising,mostly from inv

73、entory placed around its higher-profile propertiesTo-date,the bulk of DAZNs advertising revenue was generated through direct sale,predominantly around its biggest properties,typically by external sales houses(such as Publitalia and Dentsu)The streamer plans to increase the volume of programmatic adv

74、ertising inventory available on its platform,which would also enable advertisers to target specific categories of viewersMeanwhile,further(off-platform)advertising growth will come from DAZNs acquisition of Team Whistle,a digital media brand which makes sports-focused content for online video platfo

75、rmsFinally,DAZNs expansion into FAST(free advertising-supported streaming television)channels,first in Germany and soon in other markets,creates another avenue for advertising revenue growth as well as functioning as a marketing channel for the core DAZN serviceSource:Ampere Estimates Ampere Analysi

76、s 202321Partnering with third-party distributors increases DAZNs reach and reduces churn riskSource:Ampere Sports Consumer(Q4 2022),n=1,313DAZN has broken into the sports space by offering unbundled,direct-to-consumer access to premium sports for competitive pricesThis has enabled it to grow subscri

77、ptions rapidly;however,it has also exposed it to seasonal churn.This business strategy also came with very high execution riskIn the past few years,DAZN has entered into a growing number of distribution partnerships,which help to address these two risk factorsThe most notable example is the distribu

78、tion deal with Spanish operator Movistar Plus+,which makes DAZN available to its pay TV subscribers,and provides DAZN with stable distribution income for five yearsIts not just pay TV platforms that can ensure greater reach.At the beginning of 2023,DAZN reached a deal to be included in Amazon Channe

79、ls,Amazons OTT aggregator which offers customers greater content integration across all of its subscription services,as well as single billing91%75%Other countriesCore DAZN countries%of sports fans*that subscribe to DAZN to follow a single specific sport competition or team*Data collected through a

80、survey of 15,000 sports fans with internet access aged 18-64,Q4 2022Data refers to:USA,UK,France,Germany,Italy,Spain,Australia,India,Indonesia,Brazil,and South Africa(DAZN core countries denoted by)Being more reliant on individual sports like boxing in markets outside its core countries exposes DAZN

81、 to greater seasonal churn risk.Distribution partnerships can mitigate that risks,and promote the service to more casual fans Ampere Analysis 202322DAZN wants to be the one-stop-shop for all fans sports-related activities,beyond live sports coverageDAZNs ambition is to become a destination for sport

82、s fans for a wide range of activities beyond just watching live sportsIn 2021,DAZN introduced“DAZN Moments”,a sports-specific marketplace for NFTs related to DAZNs sports coverage in Japan.It later launched an Boxing.IO,a boxing-related NFT marketplace In 2022,DAZN launched its own betting app in a

83、few select markets,separate from its OTT video app.Although in-game betting will likely gradually be integrated into the live feeds,DAZN has indicated that it is targeting casual gamblers predominantlyOther areas where DAZN intends to expand are merchandise,retailing and ticketing60%of sports fans w

84、ho subscribe to an OTT service understands what an NFT is54%of sports fans who subscribe to an OTT service like buying the latest team/competition merchandise75%of sports fans who subscribe to an OTT service bet on sportsSource:Ampere Sports Consumer*(Q4 2022),n=15,000*Data collected through a surve

85、y of 15,000 sports fans with Internet access aged 18-64,Q4 2022Data refers to:USA,UK,France,Germany,Italy,Spain,Australia,China,India,Indonesia,Brazil,and South Africa Ampere Analysis 202323The sustained evolution of DAZNs business places it on the cusp of break-even-250%-200%-150%-100%-50%0%50%100%

86、150%200%250%300%-2,500-2,000-1,500-1,000-50005001,0001,5002,0002,5003,000201720182019202020212022*Operating margin(%)Total revenues and operating losses($m)DAZN group total revenues vs operating losses,2017-22($m)Total revenuesOperating lossesOperating marginThe new revenue diversification strategy,

87、paired with a degree of rights cost control in core markets,is likely to lead to DAZN breaking even within the next few yearsIn 2022,we estimate that,mostly as a result of price increases,DAZN has been able to improve its operating margin for the third consecutive year,albeit still negative(-53%)In

88、order to break even by 2023 with the revenue combination discussed above,we estimate that it would need to grow subscriptions revenue by 34%(a lower annual growth rate than what DAZN achieved every year but one 2020 since it launched),while also generating$730m in advertising revenues and other acti

89、vitiesAssuming advertising accounted for half of this additional revenue,DAZN would be generating about a third of the advertising revenue generated by Sky from a broadly similar-sized subscriber baseDAZNs heavy reliance on licensed sports rights exposes it to subscriber churn risk in the event that

90、 other bidders win key rights in the next cycleThe next section explores the emergence of a new sports streaming model,which instead integrates sports rights into a wider,diversified content offeringSource:DAZN Financial Accounts;*Denotes Ampere EstimateSports as a weapon in the streaming warsGenera

91、l entertainment OTT services are growing their investment in sports rights Ampere Analysis 202325While DAZN remains a dominant force in sports streaming,rivals are now buying rights tooSource:Ampere Sports Media RightsAs of 2019,DAZN accounted for 73%of spend on sports rights by all subscription OTT

92、 platforms worldwide.As spend on sports rights by other subscription OTT platforms has grown in recent years,DAZNs share has declined but it still represented more than half of the categorys spend in 2022Most of the new incremental subscription OTT spend on sports rights has come from“general Entert

93、ainment”platforms,namely platforms that offer a variety of content genres in their library,as opposed to focusing only on sportsThis category of services includes companies such as Amazon Prime Video,Viaplay,Peacock and HBO Max.For most of these,sports rights constitute a minority of their overall i

94、nvestment in content,but can represent a point of differentiation in an increasingly crowded streaming marketThis trend has greatly accelerated in 2021,and by 2022,there were 35 new sports rights deals activated across general entertainment subscription OTT servicesThus far,2023 has seen fewer such

95、deals,but by value,general entertainment services will account for the majority(62%)of global subscription OTT spend on sports rights in 202301,0002,0003,0004,0005,0006,00005101520253035402017201820192020202120222023*Value per season of new deals($m)Count of new deals per year New sports rights deal

96、s with general entertainment subscription OTT services by year*(total count vs value per season,$m)#of new dealsValue per seasonof new deals*Refers to the start of the season/event as opposed to the date of signing,which could have occurred in prior years.Data refers to deals already announced;more

97、deals are likely to be announced throughout the year Ampere Analysis 20232605001,0001,5002,0002,5003,000PeacockRakuten TVTelstraApple TV+Optus SportAbema PremiumViaplay*ESPN+*Amazon Prime VideoDAZNTop 10 subscription OTT services by global spend on sports rights*,2022($m)ItalyUSAGermanyJapanSpainFra

98、nceAustraliaUKPolandNetherlandsBrazilOtherAfter DAZN,Amazon and Viaplay are the next largest multi-market sports streaming playersSource:Ampere Sports Media Rights*Data on subscription OTT services spend on sports rights refers to the following 17 countries only:USA,UK,Germany,Italy,France,Spain,Aus

99、tralia,Brazil,Netherlands,Poland,Denmark,Sweden,Norway,Finland,Japan,India,South Africa.*Excludes rights deals primarily monetized through linear ESPN channels*Excludes rights deals in the Nordic region which are monetised across Viaplays multiple distribution channels i.e.not exclusively on Viaplay

100、s streaming platformDenotes general entertainment subscription OTT services Ampere Analysis 202327As streaming growth slows,services are looking for new avenues to revitalise net additionsThe explosive growth in subscriptions to OTT services that peaked in 2020 is coming to an end,as developed marke

101、ts approach saturation and macroeconomic challenges hinder growthIn North America in particular,the most developed and competitive subscription OTT market,yearly growth rates will decline to single digits for the first time from 2023As the market begins to slow,it is becoming harder to attract new s

102、ubscribers.Furthermore,leading subscription OTT services have fiercely competed with each other mostly on two grounds:pricing,and original and exclusive premium(scripted)contentWhile there is still huge value in this type of content,premium originals entail a high level of risk.There is no guarantee

103、 that an original show or film will succeed;some of the casualties of the streaming wars have been high-profile,big-budget shows which underachieved in terms of viewing and subscriber acquisition.Furthermore,on a per-hour basis,some of these titles are very costly,so flops can have major economic im

104、plicationsComparatively,as an investment,sports rights offer a number of advantages,as explored in the next slideSource:Ampere Markets-Operators0%10%20%30%40%50%60%2018201920202021202220232024202520262027Subscription OTT yearly net adds(%)North AmericaEuropeRest of World Ampere Analysis 202328Sports

105、 can help streaming platforms reach unique audiencesThere are several reasons why general entertainment subscription OTT services have started investing in sports contentTypically,popularity is proven,as the most valuable properties have established fanbases.This reduces the risk of a flop(although

106、there are risks associated to a streaming platforms reach and ability to attract casual fans,particularly compared to broadcast TV)Furthermore,although premium rights can command eye-watering fees,on a per-hour basis these fees can be more reasonable especially when considering the pre-and post-even

107、t coverage and any ancillary content that comes with the live rights(such as highlights shows,interviews,or documentaries)Live sports also offer additional monetisation routes,such as advertising typically sold at a premium around live sports as well as the revenue streams that DAZN is exploring(and

108、 groups like Sky have historically used)such as sponsorship,licensing and betting Finally,sports content is able to attract unique audiences,as demonstrated by the large proportion of sports fans who indicate that they are solely interested in sports on TV and nothing else audiences that would other

109、wise have been entirely missed by streaming services that offered no sports on their platforms25%27%27%32%34%34%34%41%44%45%46%66%BrazilItalySpainFranceUKSouth AfricaGermanyAustraliaChinaUSAIndonesiaIndia%of sports fans*,by country,who agree with the statement“I only care about sports I do not watch

110、 many TV series or films”Source:Ampere Sports Consumer*(Q4 2022),n=15,000*Data collected through a survey of 15,000 sports fans with Internet access aged 18-64,Q4 2022Data refers to:USA,UK,France,Germany,Italy,Spain,Australia,China,India,Indonesia,Brazil,and South Africa Ampere Analysis 202329The 20

111、22 NFL deal with Amazon signalled a turning point for sports on general entertainment OTT platformsAmazons investment in sports rights grew gently between 2017 and 2020,as it concentrated on minority packages of top-tier properties,sometimes on a co-exclusive basisIn 2022,however,Prime Video acquire

112、d the exclusive rights to NFL Thursday Night Football for a reported$1bn per season,after sharing those rights with Fox since 2017This represented the first time a major US sports property signed an exclusive domestic rights deal with a streaming platform and was the single biggest sports rights dea

113、l with a subscription OTT service at the time.Source:Ampere Sports Media Rights50761071424021,56502004006008001,0001,2001,4001,6001,800201720182019202020212022Amazon Prime Video spend on sports rights,by country,2017-2022($m)USABrazilUKFranceGermanyItalyIndia Ampere Analysis 202330Amazon led the way

114、 for more rights deals signed by general entertainment streaming services Source:Ampere Sports Media RightsFIFA World Cup Qualifiers(USA,2023-2030)MLB(USA,2022-2023)Big 10*(USA,2023-2029)Formula 1(Netherlands,2022-2024)Mens International Football Matches*(UK,2024-2028)English Premier League*(Poland,

115、2022-2028)English Premier League*(UK,2022-2025)UEFA Champions League*(Germany,2024-2027)UEFA Champions League*(UK,2024-2027)NFL(USA,2022-2032)MLB(USA,2022-2027)MLS(USA,2023-2032)Copa Libertadores(Brazil,2023-2026)ICC Events*(India,2023-2027)IPL(India,2023-2027)NFL(USA,2023-2030)05001,0001,5002,000Va

116、lue of sports rights per season($m)Sports rights deals with general entertainment subscription OTT services signed since 2022,by value($m)YouTube TVViacom18Hotstar Disney+Paramount+Apple TVAmazon Prime VideoViaplayPeacockHBO Max*Competitions with fall-to-spring seasons*The Peacock figure refers to a

117、n Ampere Analysis estimate of the value of the events shown exclusively on Peacock Ampere Analysis 202331General entertainment streamers have some competitive advantages over pure-play rivalsWidespread brand recognition and reachThe largest general entertainment subscription OTT services are househo

118、ld names and already have relatively high penetration in many markets.This reduces the execution risk associated with licensing rights to emerging pure-play platforms.It also likely reduces the impact on viewership a key concern for sports rights owners who have sponsors to please.In some cases,it c

119、an even increase exposure,especially in countries with lower pay TV take-upCompared to pure-play platforms,general entertainment platforms are less susceptible to subscriber migration resulting from losing the rights to a given sports property(or the event coming to an end for the season).The availa

120、bility of a wider content offering provides an incentive for fans to stay on the platform even off-season.General entertainment platforms are also more likely to appeal to more people in the household,which can help justify the monthly costChurn risk mitigationWhile sports often carry high rights co

121、sts,there are efficiencies of scale that can be more easily achieved by general entertainment subscription OTT platforms.Due to their scale,many have already invested in the tech stacks required for live delivery;furthermore,due to their high reach,theyre able to spread those costs across a larger c

122、ost base.Other efficiencies can be achieved in marketing,sales,productionA differentiated content library offers increased opportunities to explore alternative pricing and distribution approaches.Sports can be offered on premium tiers,or on separate packages,which may or may not be bundled with the

123、general entertainment content offering.More generally,this category of streamers enjoys greater flexibility in the way it can exploit and package sports rights mimicking the packaging strategies used historically by pay TV operators to drive revenue per subscriberExperimentation opportunitiesCost ef

124、ficienciesConclusions Ampere Analysis 202342Growing competition from OTT services is likely to sustain the value of the sports rights marketSpend on sports rights by streaming platforms has finally accelerated in recent years,as OTT services turn to sports to reinforce their content proposition in a

125、n increasingly competitive streaming marketFor their part,rights owners will continue to try to attract investment from streaming platforms,at a time when traditional sports broadcasters business models are under growing pressureThe streaming sports model is still evolving,as consumer habits consoli

126、dateThe pure-play sports OTT model will evolve,and lean more on third-party distributionPure-play sports OTT services commanded much of the growth in streaming platforms spend on sports rights in the past few years.However,many services have struggled to find a proven model for long-term financial s

127、ustainabilityIn search for profitability,the pure-play sports OTT platform model will start to resemble the premium sports channels models,using ancillary revenue channels and third-party distribution to reach mass scale and drive towards break-evenMajor OTT services global footprint will increase t

128、he occurrence of regional and global dealsSports rights markets have long been highly-localised,with fans in different countries typically follow different sports or leagues.Broadcasting markets,meanwhile,lacked truly global players for whom global licensing would make senseStreaming platforms can m

129、ore easily exploit efficiencies from multi-national or global rights partnerships.Global deals are consequently likely to increase in prevalence as streamers continue to drive investment in sport Ampere Analysis 202343Bundling economics continue to make D2C strategies unattractive for top-tier prope

130、rties in their domestic marketsThe top 2-3 competitions in any given country commonly account for more than half the sports rights market.Rights to these events are fiercely defended,and existing buyers may be willing to treat them as loss leaders in order to monetiseusers of them through ancillary

131、servicesNo single-competition D2C service could attain comparable economies of scope.Therefore,it is extremely unlikely that rights owners will give up the broadcast revenues they currently enjoy to pursue a D2C strategy domesticallyIn 2023,the sports streaming wars have just begunBut OTT will offer

132、 opportunities to experiment with both the content and the distributionThe OTT model provides for greater flexibility in the packaging and tiering of content offerings that can better suit the interest of sports properties.It also makes it possible to provide content tailored to the audiences,to kee

133、p them engagedThe deal between the MLS and Apple TV+is an example of an innovative rights partnership,with Apple acting as exclusive distributor of the MLS Season PassThe transition to streaming from linear will take longer for sports than it has for other genresTwo key factors will be responsible f

134、or the slower OTT transition of the sports TV market,compared to other genres.One is the nature of sports rights deals,typically spanning multiple years,and growing in length as buyers are keen to secure their market positionThe other is the sheer value of sports rights and the sensitivities that ch

135、aracterise distribution and consumption,which will continue to favour more conservative,risk-averse behaviours among broadcasters and rights owners alikeMethodological Note Ampere Analysis 202345Media rights and sports fandom data contained in this report was sourced from Ampere Sports Sports Media

136、RightsAmpere Sports Media Rights covers more than 4,500 individual TV rights deals across 17 markets around the world,detailing information on the event,duration of the contract,buyer,buyer type,and value of the deal.Value data,where notreported,is modelled using a proprietary methodology based on m

137、arkets data and consumer data on sports fans willingness to pay to watch individual sports competitionsSports ConsumerAmpere Sports Consumer is an annual wave of consumer surveys across 12 markets interviewing 15,000 sports fans a year.Attitudinal and behavioural research areas include key topics su

138、ch as sport and competition fandom,willingness to pay,importance of a competition within a bundle,engagement with linear and OTT platforms for sport and wider activities like sports betting,participation and content viewingSports FinancialsAmpere Sports Financials tracks key financial indicators for 50+major football(soccer)clubs from the top five European football leagues and a further 26 sports governing bodies spanning across 10 sportsampereanalysisAny questions?Please get in