Nagra analyzes the global market for premium sports OTT services in a study

Sports OTT services are accelerating, with 23 percent of the world's largest leagues and federations now having their own service.

Nagra in collaboration with the consultant MTM just published The Global Market for Premium Sports OTT Services (The global market for premium sports OTT services), a special report on the growth of sports OTT services around the world and its impact on traditional pay-TV service providers.

As a key component of the 2019 Pay TV Innovation Forum programme, this new report analyzes the global market for premium sports OTT services, capturing key trends within the sector and mapping the changing market landscape. It is based on interviews with senior executives and an analysis of the world's leading sports leagues, clubs and OTT services.

The research defines six main categories of sports OTT providers and highlights key trends and developments in the market, exploring: premium paid OTT sports services from the world's leading sports leagues and clubs; ‘thin package’ sports-oriented pay-TV providers; the emergence of specialized OTT sports aggregators; and new pricing and packaging models for sports content. It also identifies seven key implications for pay TV providers in the future:

Live sports are the last bastion of live television, so it is essential that pay TV companies preserve top-level sports rights in their packages. Pay-TV companies appear well positioned to retain rights to top-tier sports, according to the report.

Platform providers such as Amazon and major sports broadcasters are likely to be the two biggest threats to pay-TV providers in retaining prime sports rights and customers.

Pay TV providers will continue rationalizing your investment in sports rights second level and on second level entertainment channels.

Sports OTT providers will continue experimenting with different pricing models and packaged, seeking the right balance between being attractive to consumers and being profitable.

Pay-TV providers will need to evolve their service offerings in response to agile competitor brands offering innovative viewing experiences for sports fans. In addition, they must continue to take measures to limit the impact of piracy in online sports streaming by leveraging new anti-piracy technology and industry collaboration, especially as 5G begins to roll out.

Simon Trudelle, senior director of product marketing at Nagra, notes that "this special report from the Pay TV Innovation Forum provides valuable insights into the state of the global sports OTT market, focusing on how pay TV operators can leverage the sports OTT opportunity. It also reinforces our ongoing commitment to helping our customers leverage the right technology and expertise to scale video delivery, improve fan engagement, and leverage smart monetization strategies, while ensuring solutions “Unprecedented content protection and anti-piracy ensure the business model.”

Jon Watts, managing partner of MTM, highlights that "sports has been a key driver of pay TV growth for more than two decades. However, the rise of sports OTT has introduced a new wave of competition and innovation to the market, leading traditional providers to adapt their pricing, packaging and global value propositions to maintain success. This report highlights the main trends, challenges and opportunities in the global sports OTT market to help both service providers and sports rights holders prepare for the future.”

The special report of the 2019 Pay-TV Innovation Forum, The Global Market for Premium Sports OTT Services is available for download here.