The Global Sports and Recreation Industry
The sports are very tied into entertainment. It’s because of entertainment revenues, the royalties received from big television networks from Internet bases, from all sorts of things that televise, broadcast or otherwise give us access to sports. That is where the money is.
It’s not in selling tickets to stadiums; it’s really the broadcast rights that fuel things like the NFL, the National Basketball Association, global professional soccer, or football depending on what country you are in. It’s really all about television rights, radio rights, and broadcast rights. A lot of which is moving over to the Internet.
Something to keep an eye on is the major sports leagues are now setting up their own live streaming Internet broadcast systems that can be subscribed to, and that’s starting to be a huge boost to their revenue streams.
Now, what does this mean? It means that there is constant competition for the attention and time for the consumers that are interested in watching sports. Getting their time and selling advertising that goes into that time is really just an immense business. If it is not advertising then it is the fees earned from making the broadcast available into big cable and satellite TV networks.
The problem is that today more and more people are walking away from traditional cable and satellite TV packages. That is eventually going to create a huge challenge for companies like ESPN that charge massive license fees to deliver sports into those networks.
What’s happening? More and more consumers want to spend less money a month on their subscriptions.
Not only that, they want to watch their sports on, you guessed it. Their Smartphones or at least on some kind of Internet-connected device. This is really an industrial revolution because of that revenue stream. Other things to keep an eye on within this industry sector: growing access, growing use of exercise, physical activity as a way to maintain health.
For instance, the incredible Peloton exercise bicycles with a whole social media network behind it that enables people to login from home, ride a really advanced bicycle, in real-time watch a class that’s being broadcast somewhere else and in real-time to social media within a network of their friends or perhaps just people that are interested in, who are all riding at the same time.
It’s a huge revolution of technology and the way it affects sports and recreation. That applies to all types of data gathering on your personal body while you run or do other activity and then you analyze your body’s responses. It applies to the equipment that sports people are using in the field.
For instance, better golf clubs, better baseball bats, really technologically advanced systems that enable coaches to fully understand what’s going on with a professional athlete’s body while that athlete is performing. So things to keep an eye on moving of broadcasting and viewing to wireless phones and to Internet devices.
Declining interest in paying huge amounts of money to get all the sports you want on cable and satellite TV. It’s a huge revolution going on.
More subscription systems enable you to watch your favorite live streaming games online and paying directly to the league of your choice. More advanced technologies being incorporated in every possible format in every possible way in recreation, leisure, and sports.