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Supersport United 18% NIELSEN SPORTS BREAKFAST TRENDS UPDATE AND CONNECTED SOLUTIONS OCTOBER 2018 KELVIN WATT MANAGING DIRECTOR AFRICA ASIA Copyright © 2018 The Nielsen Company. Confidential and proprietary. PACIFIC & MIDDLE EAST DISTRIBUTOR DISRUPTION TREND TREND 1 The destination is unclear, but sports must adapt to a rapidly changing media landscape Copyright © 2018 The Nielsen Company. Confidential and proprietary. DISTRIBUTOR DISRUPTION OTT IS BOOMING: FACEBOOK’S PORTFOLIO GROWS Major rights deals • Premier League – Southeast Asia • Uefa Champions League – Latin America • LaLiga – Indian subcontinent Analysis • Robust acquisition strategy: buys TV rights too and sublicenses on to broadcasters • No mega-deals yet – it’s buying significant, but not premium, properties in populous growth markets • Positives for all involved: - Facebook gets high-quality content - Property gets competitive rights fee, retains TV coverage to ensure broad exposure - Consumers’ viewing options expand - Broadcasters retain some content 3 Copyright2018Nielsen The© Company. Confidentialand proprietary. DISTRIBUTOR DISRUPTION OTT IS BOOMING: AMAZON EXPERIMENTS Activity • Renewed NFL Thursday Night Football; acquired Laver Cup tennis global rights • Is using X-Ray Prime Video feature to enhance NFL TNF viewer experience, e.g. with statistics and options to buy merchandise • Is adding third-party apps and channels: F1TV, MUTV • Hired Marie Donoghue (17 years’ experience at ESPN) Analysis • Few rights acquisitions – appears to be conducting low-cost experiments around its ability to monetise sport • The next experiment – Premier League rights in UK, which start in Nov/Dec. Its matchdays coincide with key sales events: Black Friday and post-Christmas. 4 Copyright2018Nielsen The© Company. Confidentialand proprietary. DISTRIBUTOR DISRUPTION STREAMING PROBLEMS HIGHLIGHT RISKS OF LEAVING TV Even the biggest struggle It will take time to get it right: Tech giants and major rights holders have all had problems, including: • Amazon – US Open • YouTube – FIFA World Cup • Facebook – World Surf League • F1TV …but it’s not impossible • Hotstar India has streamed IPL Peter Hutton, Head of Live Sports, Facebook cricket to 10m+ concurrently 5 Copyright2018Nielsen The© Company. Confidentialand proprietary. ESPORTS EVOLUTION TREND TREND 2 Tapping the power of esports is a top priority for publishers, brands, media and traditional sports Copyright © 2018 The Nielsen Company. Confidential and proprietary. ESPORTS EVOLUTION THE ESPORTS FANBASE IS STILL GROWING RAPIDLY Percentage of fans that started following esports in the past year (2018 survey) 23% 21% 13% 10% 39% 20% U.S. U.K. China South Korea Japan South Africa Source: Nielsen Esports Report 7 Copyright2018Nielsen The© Company. Confidentialand proprietary. ESPORTS EVOLUTION THE OVERWATCH LEAGUE GOT OFF TO A GOOD START CASE STUDY OWL season one generated positive results Audiences were big Strong non-endemic sponsorship 861K Estimated global average per- 43% minute audience for Grand Finals, of in-broadcast league/team sponsor value across TV and streaming Source: OWL driven by non-endemic brands …and young VS. 90%+ 33% of OWL Season 1 viewers in esports average U.S. were under 35yo Source: Nielsen Source: Nielsen Esport24 8 Copyright2018Nielsen The© Company. Confidentialand proprietary. ESPORTS EVOLUTION FORTNITE’S RISE SHOWS HOW QUICKLY THE ESPORTS SCENE CAN EVOLVE Epic Games is pouring $100m into prize money for Fortnite esports in 2019 2017: Sept - Free-to-play version launched 2018: Jan - 45m downloads March - Star streamer Tyler ‘Ninja’ Blevins and rapper Drake play in live stream – 635k concurrent viewers breaks Twitch record June - 125m downloads, Epic announces esports plans for 2019 Jul – Epic’s esports competitions begin with Summer Skirmish Sep - 140m downloads Oct – Samsung runs Fortnite esports-themed commercial It’s not yet clear if the game will translate into a popular esport – it may remain a gaming and streaming phenomenon 9 Copyright2018Nielsen The© Company. Confidentialand proprietary. CONTENT RULES TREND TREND 3 Content is key to sports fan engagement, and it is evolving at a dizzying pace Copyright © 2018 The Nielsen Company. Confidential and proprietary. CONTENT RULES CONTENT CONTINUES TO SHORTEN IN LINE WITH ATTENTION Attention spans are down to 8 seconds – less than a goldfish! Media, advertising and sports sectors continue to respond with short content formats: 6-second video ads are increasingly popular on TV and online • Fox says the rate for 6s ads during its sports broadcasts is equal to that for 15s slots House of Highlights has 10m+ followers on Instagram • “Young people are spending more time with House of Highlights on Instagram than Bleacher Report at times” Rory Brown, president of Bleacher Report (owns HoH) ‘Stories’ are booming on Snapchat and Instagram • Instagram Stories has 400m daily active users, two years after launch NBA sells last-quarter streams • NBA and Turner are allowing fans to buy streams of the last quarter of games for $1.99 11 Copyright2018Nielsen The© Company. Confidentialand proprietary. CONTENT RULES CONTENT IS BECOMING INCREASINGLY PERSONALIZED Consumers have come to expect personalized content thanks to: “Within a few years you will be the director of the game you are watching…If the match is PSG v Liverpool, for example, the Social media, Netflix and other web/tech Paris fan will be able to watch the whole services that employ user data to deliver match build-up from a PSG perspective and tailored experiences watch the match from a PSG angle. The Liverpool fan will be watching the same match from the same provider but seeing Rise of mobile as primary media interaction everything from a Liverpool angle.” device – encourages development of personalized, 1-to-1 UX Guy-Laurent Epstein, Marketing Director, UEFA 12 Copyright2018Nielsen The© Company. Confidentialand proprietary. CONTENT RULES TECH PARTNERSHIPS ARE DRIVING PERSONALIZATION Technology - cloud, data, applications - is critical in delivering personalized content, and rights holders are teaming with tech sponsors to get it, in multi-year, multi-million-dollar partnerships Real Madrid-Microsoft Manchester United-HCL • Wide-ranging partnership included a new fan • Partnership includes new app, revamped app that saves personal preferences of users website, microsites • A fan of a specific player sees news • PR refers to: “the ongoing digital-transformation about that player prioritized of the club to provide a real-time, engaging, personalized, and unified experience to • Other aspects to the partnership: creating data profiles Manchester United’s 659 million global followers” on individual fans; recording player and match data This trend is still at an early stage as technology providers learn about the sports space 13 Copyright2018Nielsen The© Company. Confidentialand proprietary. CONTENT RULES CARVING CONTENT OUT OF RIGHTS DEALS TO DRIVE REACH AND REVENUE Alongside the novel, new content, there is value for rights holders in surfacing ‘traditional’ content that might previously have been bundled in broadcaster deals and/or unexploited United States Golf Association PGA Tour Tennis Australia Live-streams featured groups and Shows action from featured During the 2018 Australian Open, holes via its website and groups in the morning of weekend streamed action from 16 courts, as Fox Sports Go app. rounds, distributed globally on its well as replays, post-match OTT service PGA Tour Live and speeches, behind-the-scenes in the U.S. on Facebook. moments and press conferences. 14 Copyright2018Nielsen The© Company. Confidentialand proprietary. SPONSORSHIP TO PARTNERSHIP TREND TREND 4 In the new sponsorship paradigm, the winning traits are data, compelling content and connection to corporate strategy Copyright © 2018 The Nielsen Company. Confidential and proprietary. SPONSORSHIP TO PARTNERSHIP INCENTIVE-BASED SPONSORSHIPS ARE PRIMED FOR GROWTH A new model for how brands negotiate with, measure and compensate rights holders “The power is beginning to shift from what the rights holder wants to sell to what Headline from Bizjournals.com the brand needs to buy” • AB InBev is offering properties as much as a 30% bonus Brian Gordon, CEO of if on-field or marketing performance criteria are met experiential agency Engine Shop • Incentive-based partners include: • Minnesota Timberwolves • LA Dodgers • New Orleans Saints • NASCAR 16 Copyright2018Nielsen The© Company. Confidentialand proprietary. SPONSORSHIP TO PARTNERSHIP RIGHTS HOLDERS ARE SEEKING SPONSORSHIPS THAT CO-MARKET THEIR PROPERTIES CASE STUDY Mastercard and Riot Games • Riot’s esports title League of Legends is being included in Mastercard’s ‘Priceless’ campaign, which creates unique experiences for fans • Mastercard gets access to a coveted, hard-to-reach demographic • Riot and LoL gain legitimization in the eyes of other non-endemic brands and exposure for their fan experiences 17 Copyright2018Nielsen The© Company. Confidentialand proprietary. SPONSORSHIP TO PARTNERSHIP TECH PARTNER DEALS CONTINUE TO FLOURISH Product showcase opportunity justifies the sponsorship business case Tata Communications and F1 SAP and sailing • Tata owns one of the world’s largest • SAP says: “Sailing provides the perfect platform for SAP to fibre cable networks showcase solutions and help the sport run like never before” • The network transmits video and data from • Partner of properties including Extreme Sailing races back to F1’s Media & Technology Series and World Sailing Centre in the UK •
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