IT’S TIME TO INVERT THE PYRAMID. THE VALUE IN SPORTS OFFERINGS IS IN NEED OF MASSIVE CHANGE.
THE INDUSTRY ISN’T ADJUSTING TO CONSUMER DEMANDS AND INNOVATIONS.
Welcome Back. At Disruptive Play, we’ve talked a lot about how in the current landscape of sports media, there's a seismic shift underway, one that traditional and (scarily) many new industry players seem slow to embrace.
TO WIN IN TODAY’S ENVIRONMENT YOU MUST INTENTIONALLY MEET, SERVE AND MONETIZE TODAY’S AUDIENCE WHERE THEY ARE WITH IP THEY CARE ABOUT - THIS IS FOR LIVE AND NON-LIVE CONTENT
We featured this concept in our piece “The Future of Distribution in Sports is....Democratized” a few weeks ago, featuring the below 2x2 chart.
But taking that chart a bit further, My long time colleague and Disruptive Play partner, Jeff Nathenson highlights that it’s time to talk about the pyramid of value in sports offerings —one firmly rooted in premium, paywalled content— that is ripe for inversion. At Disruptive Play, we believe the real value now lies in accessibility, engagement, and community-building rather than exclusive, paid offerings.
The New Age of Fandom
Today’s sports fandom has transformed. It's no longer confined to the four corners of a game broadcast. Instead, it thrives on social media where short-form storytelling by athletes, creators, and publishers captivates millions. This shift isn't trivial. It's redefining what it means to be a fan, making the off-field narratives as compelling as the on-field action. Sports enthusiasts are increasingly drawn to the relatable and immediate content delivered through platforms like Twitch, YouTube, X/Twitter, Instagram, and TikTok, where barriers between athletes and fans are thinner than ever.
The Problem with Traditional Strategies
Despite these clear signals, many in the sports industry continue to chase outdated models of engagement. They push for paid media and marketing strategies designed to funnel fans behind paywalls. This approach not only alienates the growing segment of fans who thrive on open, interactive platforms but also turns potential community engagement into mere transactional encounters (no faster way to turn off a community).
Disruptive Play’s Vision: Community First Unlocks Paid Monetization
At Disruptive Play, we propose a radical shift: invert the pyramid. Instead of leveraging paid media to drive fans to premium content, we focus on building and curating vibrant communities on distributed media platforms. This strategy maximizes reach and engagement right from the start, turning what was once a cost center into a revenue-generating engine.
By fostering an organic following first, we lay a robust foundation for any subsequent premium offerings. A strong, engaged community is more likely to support live events and exclusive content because they are invested—not just financially but emotionally and socially.
Building a Monetization Strategy on a Foundation of Trust and Engagement, not Paid Media
This approach isn't just about better business sense—it's about respect for the fan experience. It’s about meeting sports fans where they are and inviting them into the narrative. When fans are part of the story, their engagement is deeper, their loyalty stronger, and their willingness to follow you behind a paywall naturally increases.
DISRUPTIVE PLAY - As we think about the reluctance to invert the pyramid ? What needs to be true ? What questions do people need to answer?
What are the primary fears or concerns that prevent industry leaders from moving away from traditional paywall and premium content models?
Predictable Revenue Loss: Leaders fear losing predictable revenue streams that are well-understood and historically reliable.
Model Uncertainty: There's uncertainty about the scalability and long-term sustainability of revenue models driven by engagement rather than direct payments.
Which vested interests might be at risk if the sports media industry shifts its focus from paywalls to community-based models?
Broadcasters and Rights Holders: Traditional broadcasters and rights holders rely on exclusivity to drive subscription and advertising revenues.
What evidence would convince skeptics that engaging communities can be more profitable than traditional paid media strategies in the long term?
Successful Case Studies: Showcasing case studies from sectors like gaming where community-led initiatives have resulted in increased profitability.
Engagement Data: Presenting data that link higher engagement metrics to increased revenue streams such as merchandise sales and sponsorships.
How can sports media companies balance the immediate financial pressures with the longer-term benefits of building and nurturing fan communities?
Hybrid Model Implementation: Adopting a phased approach that incorporates both traditional and new strategies to gradually shift focus.
Investment in Community Skills: Prioritizing investment in community management and engagement as core business strategies.
How can the industry measure success in a model that prioritizes engagement and community over direct revenue from content paywalls?
New KPIs: Establishing new Key Performance Indicators focused on engagement depth, fan retention, and community health.
Impact on Secondary Revenues: Evaluating how increased engagement affects secondary revenue streams and overall brand valuation.
What are the potential risks of not adapting to a community-focused model in the face of changing fan expectations and technological advancements?
Loss of Relevance: Risking irrelevance among younger, digitally-native audiences who prefer more engaging and interactive content formats.
Missed Technological Shifts: Failing to capitalize on technological innovations that enable more integrated and immersive fan experiences.
The Road Ahead
Inverting the pyramid is not without its challenges. It requires boldness to move away from the safety of traditional revenue models. However, the potential rewards—sustainable engagement, increased reach, and a loyal community—are immense. As we continue to explore this path at Disruptive Play, we invite brands, creators, and fans alike to join us in reshaping the future of sports media.