According to Forbes, the sports market in North America alone is expected to reach $71.5 billion by 2018, a significant increase from $67 billion in 2016. To a large degree, this behemoth of an industry relies upon fan loyalty for direct revenue and sponsorship deals. However, with the range of entertainment available today, modern audiences are more likely than ever to shift preferences and stop following a sport if they don’t get the desired experience.
In this competitive environment, sports organizations and teams cannot count purely on athletic excellence to bring in swarms of supporters, or expect to gain steady profits by catering to the most passionate core of their fanbase.
What is the best strategy to maximize ROI, then?
Since OTT method of distribution uses the internet to deliver TV and film content like cable providers they use the network infrastructure that is maintained and owned by ISPs.
This has caused a certain level of disruption for the traditional cable service providers because of the migration of consumer interest towards third-party firms that offer over-the-top applications.According to a report by Market Research Future on Over The Top Content Industry Research Report- Global Forecast 2023 states that domain is expected to grow approximately by USD 87 Billion by 2023 at a 14% CAGR rate between 2017 and 2023.
One of the most important factor that is driving their growth are the number of pricing and viewing options offered, as they are not restricted to limited program options to choose from.
Other important driving factors include technology, payments and partnerships.Device and delivery limitations coupled with bandwidth limitation challenges leading to concerns around quality of service are some of the factors that may cause limitations for the growth of this sector.
With OTT market’s ability to offer content personalization to consumers on their devices will lead to staggering growth levels in the market.Latest Industry News:14 Nov 2017 The startup Philo has received $25 million in funding from five cable programming groups.
Companies are aiming to capture & solidify their share of the market segment, by competing and experimenting with various advantage points.