What if Sports Piracy Isn't The Enemy?
Unlocking the potential opportunity lurking in the shadows
In the world of sports, piracy is painted as this villain that is siphoning off massive amounts of rights holder revenue and undermining the industry's integrity. But what if we've been looking at it all wrong? What if piracy isn't the enemy, but rather an untapped opportunity waiting to be harnessed differently?
The Myth of Lost Revenue
Let's start by debunking the myth that every pirated stream equals lost revenue.
From a recent article - “Pirate networks in the MENA region alone cost beIN Media Group $1bn a year. The EU Intellectual Property Office reports that 12% of EU citizens turn to piracy to watch sports – that figure rises to more than a quarter among European young people aged 15 to 24. Synamedia and Ampere Analysis found sports service providers and rights holders are missing out on up to $28bn in new revenue as a direct result of illegal sports streaming.”
The traditional narrative suggests that piracy drains the industry of billions, but this assumes that every person watching illegally would otherwise pay. The reality? Many of these viewers wouldn't have tuned in at all if piracy weren't an option. They're not lost customers; they were never customers to begin with!!!
So, instead of chasing phantom losses, let's focus on the real question: How can we convert these “pirate” viewers into engaged fans?
Redefining Value:
Instead of focusing on what piracy supposedly takes away, let's consider what it reveals about consumer behavior. Piracy shows us that there's a massive audience hungry for content, but perhaps not at the current price point or with existing restrictions. By redefining what value means for these viewers, we can create offerings that better align with their expectations and willingness to pay.
Evaluating Real Costs:
The cost of piracy isn't just about lost sales; it's about missed opportunities for engagement and brand loyalty. By shifting the focus from punitive measures to strategic engagement, the industry can better assess the real costs and benefits of piracy.
DISRUPTIVE PLAY – How Do We Embrace Piracy as a Catalyst for Innovation?
In the sports broadcasting arena, piracy is often seen as a threat, but what if it could be a catalyst for innovation? By understanding the motivations behind piracy and leveraging innovative models we can inspire new strategies.
Rethinking Content Creation and Distribution
Bring Sport to The Audience Where They Are By Empowering Fans, Athletes and Creators:
Rights Holders can empower athletes, creators and fans to distribute their lives feeds (see CSN) and produce their own content (see E1 collabs with Will Smith and Rafa Nadal). This decentralized approach allows for more personalized and diverse content, catering to new audiences who crave unique perspectives and stories. By giving creators the tools to engage directly with fans, rights holders can tap into new markets and foster a sense of community.
Interactive and Immersive Experiences:
Companies like Dizplai are redefining fan engagement through interactive experiences. Dizplai enables FanTV channels (e.g., That’s Football) to incorporate fan-driven elements such as live polls, interactive stats, and real-time decision-making. This not only enhances the viewing experience but also creates a participatory culture that can draw viewers away from pirated streams.
Niche and Alternative Formats:
The rise of new leagues (See DP - The Supply and Demand Conundrum) demonstrates the potential of niche sports and alternative formats. IP holders can explore these opportunities by offering specialized content that appeals to specific fan bases. By focusing on underrepresented sports or unique formats, they can attract audiences who are passionate and underserved by mainstream offerings.
Evolving Monetization Strategies
Facilitate Existing Sponsorships and Partnerships to Express Their Dollars Differently and Show The Value
Develop integrated sponsorships that align with the content and enhance the viewing experience. By partnering with brands to express their sponsorships and media purchases into these channels that resonate with the audience, broadcasters / IP holders can create authentic connections that drive both engagement and revenue.
Facilitate Collabs Beyond the Obvious that Will Drive DTC Monetization
Look at the likes of Burnley and Dude Perfect. The ability to collab on content and kits has opened up new revenue and new fandom that didn’t exist before
Leveraging Technology - Blockchain for Transparency, Security and Monetization
IP Holders can utilize blockchain technology to ensure transparent and secure transactions to share rights and offer tokenized rewards for fan engagement, creating a new layer of interaction. See A16Z recent investment in Story Protocol.
A New Playbook for the Future
At Disruptive Play, we believe in the power of disruption to drive progress. It's time to write a new playbook—one that embraces change, challenges conventions, and turns piracy from a foe into a friend.
Disclaimer: At Disruptive Play, clearly we are NOT advocates of Piracy but by rethinking piracy not as a threat and rather as an opportunity we believe that the sports industry can unlock new avenues for growth and engagement.