Back to the future
As one year passes since the pandemic spread and daily routines were disrupted, there is an opportunity to reflect on what changed and how we can move forward. It was on the same day in April 2020 that I proposed five topics for consideration as we move through this turbulent period.
Fans first. Bringing fans into the discussion and listening to their wishes about how, when and what they would appreciate when the sports ecosystem re-opens. Off the pitch. Greater consideration and opportunities for the grass roots and amateur sport. Purpose. Embracing purpose as an integral part of your business strategy and not for short-term gain. Small data. Using first party fan data on a micro level to understand what brings happiness or irritation to people who live for their sport. S.M.L. Develop a plan that sets-out the recovery with a short, medium and long-term perspective.
On reflection all of these topics are still worth consideration, knowing things today that could not be predicted 12 months ago. A recent blog from GWI (GlobalWebIndex) identified five takeaways that will be present in sport in 2021. The first and unsurprising finding was the reduction in sports fans appetite for live sport with 50% of people aged 16 to 64 years less likely to attend live events. A staggering percentage and one that should send a shudder through the industry if accurate. After paying $2.4 billion for the New York Mets last year, Steve Cohen will be hoping this is not a long-term trend. Media reports claim the Mets were expected to lose $247 million from the loss of ticket sales this season alone. For some with deep pockets, sport is undervalued and now is the time to invest.
The second finding confirms expectations, which is the increase of online sports viewing closing the gap with broadcast TV. Most notably this was confirmed in Asia Pacific where online sports viewing now exceeds broadcast TV, 73% vs. 72%. In the US and Europe broadcast TV viewing still exceeds online viewing by more than 20%. Whether this trend continues remains to be seen once more events are taking place, especially those who focus on broadcast networks. And secondly, if online viewing is subscription based, will fans be willing to pay when it is freely available elsewhere?
Social media is still a big-ticket item and has been a major driver in increasing both pre- and post-game fan engagement. Content geared towards video is a winner with 60% of Gen Z sports fans turning to YouTube as their top platform to follow sports. According to GWI the combination of commentary, highlights, behind closed door access to content and livestreams are still connecting fans with their sports. An existing trend that is likely to continue even when live events return.
The growth in virtual events is something trendwatchers have been predicting for a while. And there is one sport leading the way, eSports. The sweet spot of 16–24-year-olds increased their gaming time by 18% which will continue to grow. If any confirmation is needed, the launch of Red Bull Solo Q1 League of Legends with 80,000 participants at the 2020 tournament demonstrates the pulling power of 1v1 amateur eSports tournaments. Where Red Bull goes, others will follow. Marty McFly would have been a young gamer, back in 1985, if eSports were around (you have to see the movie).
The fifth and final GWI finding was that sports fans care a lot about CSR. Younger sports fans are more likely to support a team based on shared values and purpose as opposed to family ties or geographical location. And, throughout this pandemic sports organizations and athletes have supported many community causes, gender diversity and anti-racism statements that resonate with younger fans.
So, my reflections 12 months ago are broadly in line with the findings shared by GWI. Perhaps we need a different approach as the key to the future is what we do tomorrow and not what we did yesterday. All these points were actionable 12 months ago but sometimes, we need to go back to plan the future.
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