OTT sports streamers could grab almost 1/5 of the proceeds
A report from video technology company Synamedia, in partnership with media analysts Ampere Analysis, has found that $28.3 billion (£20.3bn) in revenue could be gained from a crackdown on piracy.
Of this windfall, $5.4bn (£3.9bn), or 19%, could be raked in by OTT sports streamers, with the rest grabbed by other pay-TV providers.
According to Synamedia, which specialises in content distribution and delivery, and video processing and security, 74% of sports fans are willing to switch from illegal streams if a legitimate alternative is available and if the illegal streams become unreliable. This comes from a survey of 6,000 sports fans in 10 countries, conducted by Ampere Analysis.
Ths group of potential converters is reported to be younger, and tending to be families with young children, and avid sports fans who watch 10 or more different sports with connected devices. 40% of this cohort say they would switch to an OTT platform - including single-sport services run by rights owners.
57% of the converter cohort already pay for legitimate services and 52% pay for pirate services, according to the report.
“After years of growth, a recent downturn in rights fees has been exacerbated by the pandemic, hitting sports rights hard. But just as the value of rights is being eroded, there is now the prospect of creating new revenues by converting illegal viewers into paid subscribers,” said Yael Fainaro, senior vice president of security at Synamedia.
“While previous attempts to value the revenue leakage from sports streaming piracy took a crude approach, we now have the detail to develop targeted approaches and the tools to deliver quantifiable results, ensuring every investment hits the jackpot.”
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