NBC’s opportunity to cut through the streaming noise with Olympics

With NBCUniversal set to launch its own streaming service in 2020 the risk of content fragmentation is becoming more apparent, but this only underlines the importance of a niche.

Although many of these streaming services might think they are doing something innovative or novel, in reality they are copycatting Netflix. The big issue is that Netflix is already moving onto the bigger and better. Original content is the new frontier, though NBCUniversal might have stumbled across another unique selling point.

“Peacock will be the go-to place for both the timely and timeless – from can’t-miss Olympic moments and the 2020 election, to classic fan favourites like The Office,” said Bonnie Hammer, Chairman of Direct-to-Consumer and Digital Enterprises business unit.

The Olympics, and live streaming sport on the whole, is an area which the streaming giants have largely ignored to date. Amazon has dabbled with tennis, NFL and has a few English Premier League games for the 2019/20 season, while Twitter (admittedly not a streaming service) has got a partnership in place with the PGA Tour. YouTube has toyed with some live events, but never nailed it. It’s a bit sporadic, rather than a coherent assault.

With the Tokyo 2020 Olympics, NBCUniversal has a great opportunity to carve a niche and create a unique position in streaming ecosystem.

Through the NBC Olympic channel, the company has produced every Summer Olympics since Seoul in 1988 and every Winter Olympics since Salt Lake City in 2002. It has all media rights on all platforms to all Olympic Games through to 2032, paying $7.75 billion (US rights) in 2014.

This is a major attraction for consumers around the world and could form the central cog of a new type of streaming service if the team plays its cards right. Olympics coverage averaged 27.5 million viewers across all platforms, with streaming growing particularly. Nearly more than 2.71 billion minutes of coverage was streaming from the Rio Olympics, more than double the previous two events combined.

This is what the new streaming challengers need to understand; they cannot replicate the success of Netflix.

Disruptors to a fast-evolving ecosystem often try to do this and it fails due to the rapidly changing landscape. Netflix found success in being a content aggregator, bringing together titles from a variety of different sources. This model is dead. It cannot be replicated.

The creation of Peacock is another sign of content fragmentation. From next year onwards, Netflix viewers will no-longer be able to view titles such as ‘The Office’, ‘Parks and Recreation’, ‘Brooklyn Nine-nine’ and ‘30 Rock’. This is a consequence of each of the newly emerging platforms. When HBO Max emerged, Netflix lost ‘Friends’, ‘The Fresh Prince of Bel-Air’ and ‘Pretty Little Liars’. With Disney+, all Marvel content will be removed from the Netflix library.

This is a dangerous position for any challengers. The Netflix model is dead because everyone wants to home their content exclusively. The value to the consumer of the aggregator model which drove Netflix in the early years is dwindling away as the content landscape becomes increasingly fragmented.

This is the importance of original content for the streaming services; it allows the creation of a selling-point beyond price. Admittedly, the Netflix original content will not appeal to everyone, but it has big enough budgets to create the breadth and depth, so each show does not have to be a catch-all, mass market product. Anyone who thinks they can compete with Netflix on original content will have to spend a lot of money to do so.

With coverage of the 2020 Election and the Tokyo Olympics on the NBCUniversal streaming platform, there is a notable opportunity to create a proposition which can cut through the noise.

Another very interesting opportunity for NBCUniversal is a fast-emerging trend in the content world; interactivity. This was a notable theme at IBC 2019, and sports presents an opportunity like few other genres.

Viewers could personalise their experience through the selection of different cameras or commentators. Value add content can be generated for months prior to the live-streaming of the event. Technologies such as virtual and augmented reality have a natural home in the sports ecosystem. Partnerships can be developed for additional monetization. There are endless troves of data points to engage every niche of viewer. The opportunity to build a more complete story all the way through the year is very evident.

The question is how aggressive NBCUniversal will be. Will it expand into other sports and live events? Will it look to drive engagement outside of the US market? These are unknowns and will largely be dependent on the delivery of the Tokyo Olympics, though it has a very good opportunity.

Premier League giants take baby steps toward digital economy

If you’ve ever been on any sports’ club website you would be forgiven for thinking these guys are technophobes, but Intel is predicting a new era for sports broadcasting and fan engagement.

“We’re going to find ourselves in a couple of years’ time looking back and wondering how we ever got by,” said XXX of Intel.

The sports industry, and football in particular, has never really been at the forefront of technology. For an industry which defines itself, and almost entirely depends, on fan engagement little has been done to embrace new technologies and ideas. However, the last couple of years have seen a few rays of hope.

A couple of the more innovative clubs in the football industry, ones who just so happened to be partners of Intel, featured on a panel session to discuss the glaringly obvious opportunities which are being presented to sport clubs and the progress being made in shifting incredibly traditional businesses.

“We have been seeing a convergence of technology and sport and this has been accelerating over the last few years,” said Damian Willoughby, SVP Partnerships at Manchester City FC.

“Technology is impacting all of us and from our perspective, we are looking at how we can create fan engagement or fan experience, whether it is at Anfield or anywhere around the world,” said Billy Hogan, Chief Commercial Officer at Liverpool.

“What isn’t changing is the popularity of the English Premier League,” said Peter Silverstone, Commercial Director of Arsenal. “What is changing is the consumer appetite for how they consume the English Premier League as a product.”

What you have to take into consideration, and why it is so baffling that football clubs and the industry on the whole have been so slow to react to new technologies, is the global reach. The English Premier League (EPL) official Facebook and Twitter pages have 42 million and 18 million followers respectively. Another 23 million follow the competition on Instagram.

Below you can see the social media reach of each of the clubs on show during the event:

Club Facebook Twitter Instagram YouTube
Liverpool 32.2 million 11 million 12.4 million 1.1 million
Arsenal 36.9 million 14 million 13.3 million 1.1 million
Man City 36.7 million 6.6 million 10.4 million 1.6 million

This is a truly global industry and while these numbers are certainly impressive, the challenge now is how to best capitalise on such significant assets. This is where the Intel partnership and content play a role.

As all three of the executives point out, the idea behind technology implementation is to offer a greater variety of ways for fans to consume content. This might be through virtual reality, player POV footage, more in-depth analysis, behind the scenes content or partners stories. The idea is to create content which came be customisable, interactive and varied. Each user can create their own story on-demand, building interactions which are more suited to them.

Looking at Intel’s True View product, one of the technologies which will be used to deliver this enhanced experience, XXX highlighted 38 5K sensors will be installed in each stadium, allowing the team to capture footage which is eight times the definition of HD. The cameras capture volumetric data (height, width, and depth) using voxels, a 3D pixel, delivering a new experience for the consumer.

Collecting this data will allow the three clubs to introduce 360 degrees replays, allowing the consumer to decide how the content is viewed, player POV footage and new content on laser wall screens. Intel believe this sort of technology is addressing a supply/demand chasm in the market; consumers are demanding a different type of experience, yet few in the world of sports seem able to deliver it.

Creating all of these experiences has another excellent impact on these clubs; it allows them to match the globalised nature of football. The worldwide footprint of the Premier League is pretty unmatched in the entirety of sports, especially over the last decade with clubs targeting fans on distant shores. These are three clubs which have certainly fit this mould.

“Some of these people will never get the chance to go to Anfield, but we can deliver this experience,” said Hogan, referencing fans in Indonesia, China and the US.

Although there certainly have been positive steps forward in converging the worlds of technology and sport, this is only the beginning. Looking forward, there are some genuinely exciting technologies in the pipeline, each of which has the potential to completely revolutionise the experience.

Virtual reality is one which is constantly discussed, and while there might be some applications and hardware on the market which offer some sort of experience, this is only the tip of the iceberg. VR is very much an embryonic technology for the moment, though the fast decreasing price of hardware and the approaching 5G euphoria could take this technology to the next level.

Another area to consider is the delivery of content through holograms. A couple of months back Vodafone delivered one of the best 5G demos we’ve seen, live-streaming a hologram from Manchester to its Newbury HQ of England Women’s football captain Steph Houghton. The image was crisp while latency was pretty much non-existent. Slumbering journalists very bolted upright by genuine innovation.

Imagine sitting in your living room and experiencing a Premier League Football game as if you were sat on the halfway line and seeing replays through the eyes of the players. Or how about a boxing match hosted in Las Vegas, but live-streaming holograms to hundreds of venues throughout the world. The viewing experience could be completely revolutionised.

What these three clubs are doing are the first baby steps into digital transformation, a buzzword which has plagued us for years. However, it might not be too long before the sports entertainment world morphs into a completely unrecognisable beast.