Transforming the Live Sports Experience – It's

June 2019 | MEDIA

Transforming the live sports

experience – it’s game on for 5G

Major sports codes in Australia are trying to figure out how to engage and attract younger fans, and they are looking to technology not only to gain and retain fans but also to get fans into the stadium. Key takeaways

/ Fan wants to be closer to the action, to the players, to the

stats and to the most revealing camera angles. As per Venture

Technological Insights’ mobile consumer survey, 60% of respondents said that they would be interested in or very interested in sports apps that allow them to development is change viewing angles and view game and player stats in real-time. rapidly changing / 38% of respondents said that they use smartphones in a almost every facet of stadium to watch live broadcast, live replays and view player/game statistics while watching a game. the business of live / 5G could play a key role in transforming the sports viewing sports and as sport experience both in the stadium and at-home as it enables changes both on and immersive video experiences that increase engagement including AR/VR, 360-degree video capture and ubiquitous volumetric video content. off the field, / This represents an opportunity for telcos to provide innovation has enhanced connectivity such as 5G in sports stadiums to ensure become a key priority that their subscribers remain connected. Several telcos (Verizon, AT&T and SK Telecom) across the world plan to or are already building and deploying 5G networks in sports stadiums. for all industry stakeholders. / Broadcasters, teams, stadia and network operators are all trying to remain at the forefront of this change. The industry’s biggest catalyst is going to be 5G – from enabling sports streaming apps that allow multiple viewing angles, monitoring and improving the athlete’s performance through wearables to enhancing the fan experience in the stadium.

Introduction

The live sports viewing experience has changed significantly in the last 10 years. Rapid advances in digital and video technologies has been the main driver of this change and there’s barely any part of the sports broadcasting and viewing ecosystem that been left untouched. One of the key changes has been the way it is consumed by fans both in the stadium and at-home. The rise of smartphones with large high-resolution screens and new platforms (social media) has led to fans seeking on-demand, immersive and personalised viewing experiences. Competition for new fans has also shifted from other leagues and codes to everything and anything that any individual can now do in any moment. In response, not only do teams, leagues, and events need to be personally relevant at match time, they need to be available on-demand for their ever-demanding fan base. As sport changes both on and off the field, innovation has become a key priority for all industry stakeholders. In this report, we highlight some of the key trends and innovations that are transforming the business of live sports, analyse the results from Venture Insights’ consumer survey on the in-stadium sports viewing experience and how 5G could play an important role in the sports broadcasting and viewing landscape.

The live sports experience is changing…

The business of live sports, seen as perhaps the last great firewall for traditional broadcasters, is facing deepening challenges in the era of mobile and live streaming options. There was a time when the only way to watch live sport in your living room was via the handful of terrestrial channels picked up by a television antenna or by being physically present while the game is being played in a stadium or arena. But today there is a plethora of digital and linear platforms through which fans can consume all sorts of games, matches, tournaments and competitions. It means there is more choice than ever before. Consumer preferences are changing; with fans embracing new digital channels that allow for more customised, and on-demand experiences, often at the expense of traditional offline media platforms. In a world with over supply of content and time poor viewers, new technologies and platforms that can directly deliver the best real-time sporting moments are fast becoming go-to solutions. While sport remains the highest rated content on television for traditional broadcasters the modern-day sports fan is actively pursuing additional ways to watch sport. There is a desire for more content across multiple platforms of choice which deliver superior user experiences. Today this is often found via digital enabled platforms. Fans want to be closer to the action, to the players, to the stats and to the most revealing camera angles. They want the insider’s view. Mobile devices have become central to this, giving fans access to anything from video replays, live scores from other games, stats and data analytics to engaging with our network on social media platforms. According to Venture Insights’ mobile consumer survey, more than 60% of respondents said that they would be interested in or very interested in sports apps that allow them to change viewing angles and view game and player stats in real-time.

5G will play an important role

Enhanced stadium experience for sports fans Sports broadcasting and viewership is undergoing a state of transformation. At-home viewers and live attendees are no longer content to simply remain passive viewers. They want to access real- time content, analytics and share pictures and videos on social media as the event takes place. With billions of smartphone devices in use around the world, it’s not surprising how reliant today’s sports fans are on their smartphones, from recording and sharing a goal, enjoying multi-angle replays moments after an event to simply messaging a friend to check on a rival team’s results, sports fans expect to be able to use their phone to interact with their team throughout a match. Meeting the large bandwidth requirements of sports events or other mass live events such as music concerts has always been an ongoing challenge for broadcasters and telcos as tens of thousands of attendees are consuming or uploading massive amounts of data in a short period of time. In February of 2017, at American football’s biggest game in Houston’s NRG Stadium, for example, fans consumed 25.8 terabytes of data from AT&T, Verizon, and Sprint, up from 15.9 the year before. And that doesn’t include the 11.8 terabytes of data traveling over the stadium’s Wi-Fi network. According to Venture Insights mobile consumer survey, 38% of respondents that watch sports said that they use their smartphones to watch live broadcast, watch live replays and view player/game statistics while at a stadium watching a live game.

Figure 1. When you are watching live sports at a sporting stadium or event, do you also use your smartphone to see the live broadcast coverage or get statistics?

Yes - watch live broadcast/live replays/check player 38% and game statistics

No - I do not use my smartphone to see live broadcast 62% coverage or get statistics?

SOURCE: Venture Insights mobile consumer survey April 2019, n=1,026 Advances in network technologies like 5G are about to change the sports viewing experience as it increases network capacity and throughput, allowing 5G enabled devices to connect to network resources through a range of access technologies from sub-1GHz all the way through mmWave. That capacity opens up opportunity for fans, stadiums and service providers alike – new services, amazing experiences that include exciting new immersive media applications, like 360-degree virtual reality, time-sliced video, omni-view broadcasting, and ubiquitous volumetric video capture. the increasing array of apps designed to enhance the in-stadium experience for fans which, in light of enhanced media coverage for home viewers, will become increasingly critical to driving live attendance.

Immersive AR/VR to will drive fan engagement Virtual reality (VR) and augmented reality (AR) are disruptive technologies that are set to revolutionise the production and consumption of live sport. At present, AR and VR platforms and devices depend largely on the advancements in video and computing technologies. The bandwidth requirements for AR/VR to work seamlessly are substantial as most AR/VR apps/content are highly data intensive. NextVR is a world leader in virtual reality technology for use in sports and has teamed up with both the NBA and NFL. After purchasing a headset such as a Google Daydream, PlayStation VR or Samsung Gear, fans can watch NBA games courtside through their VR headsets. Another company at the forefront of VR technology is Jaunt, which has big name investors like Disney, NBC and Newscorp and has a ‘Media Manager’ product that assists in the publishing of content including sports. The Australian sporting community have themselves been experimenting with AR and VR as clubs, sporting bodies and media outlets all attempt to capture the attention of the digital savvy and content hungry sports fans. Fox Sports Australia and Big Bash League’s Brisbane Heat were two of the first to enter the world of AR and VR for mobile in 2016, each launching applications geared around engaging audiences using 360-degree videos and AR functionality. In Australia, the Adelaide Crows were the first AFL club to enter the augmented reality space, launching an App exclusive for their Crows Women’s Team Members. During the 2016 Rio Olympic Games BBC and NBC used VR to broadcast Olympic events and will do so again at Tokyo 2020. Ultimately, virtual reality will not only revolutionize the viewing experience for sports enthusiasts, but it will also improve the game for those who play it. Retired NFL legend Steve Young has advocated for the use of VR technology to improve concussion protocols, making the game safer for players and opening the door for professional sports teams to use VR for next-generation training techniques. In an AFL first, Port Adelaide has adopted virtual reality into its training regime. Port Adelaide has filmed training sessions with three dimensional cameras, with the vision transferred to 3D goggles which offer 360-degree views, sighted through virtual reality goggles.

Figure 2. Immersive VR experience

Transforming the in-stadium experience – its game on for 5G Globally, sports venues are seeing a 67% yoy increase in data usage1. In a 2012 Cisco study, 44% of fans said connectivity is very important to their experience at a sports stadium. That number likely will continue to grow given the increasing demand for high-end smartphones2. But even with the advances in mobile and broadband networks in the last few years, expensive and high- density Wi-Fi solutions are required for fans to have a connected experience in the stadium. However, with new network technologies like mmWave, beamforming, and massive MIMO, 5G may prove to be the turning point. This represents an opportunity for telcos to provide enhanced connectivity such as 5G in sports stadiums to ensure that their subscribers remain connected. Several telcos across the world plan to or are already building and deploying 5G networks in sports stadiums: • The 5G Stadium project developed by FC Barcelona and Telefónica will make the Camp Nou the first football stadium in Europe to have dedicated standard 5G coverage. The deployment of this technology both in the stands and on the playing field, using Telefónica’s commercial band and a standard 3GPP Ericsson network, will enable the exploration of new and more immersive ways of enjoying sports events3. • The National Football League (NFL) in the US and Verizon formed an "innovation partnership" to focus on improving the fan experience with high-speed 5G mobile technology. As part of the two-year deal, the organizations will work on in-stadium mobile features for fans who attend live games, Verizon announced4. • Rakuten in Japan conducted a ‘Smart Stadium’ trial aimed at demonstrating the extensive applications of 5G network technologies. The over-the-air (OTA) 5G trial, which was conducted in collaboration with Nokia and Intel Corporation, included remote unmanned robot delivery, drone-based identity verification and live-streaming of 8K 360-degree VR video. The trial employed Nokia’s AirScale base station and the Intel® 5G Mobile Trial Platform5. • AT&T has announced that it will deploy 5G network technology at the AT&T stadium, the home of the NFL’s Dallas Cowboys team, in Arlington, Texas by the end of 20196. • Nearly 2/3rds of the world’s largest telco operators plan to use AR and VR or a hybrid of these technologies supported by 5G to offer richer viewing experiences both at sports stadiums and at home7. • SK Telecom in South Korea used AR/VR technologies to display an AR image of a dragon on the opening day of the 2019 Kora Baseball Organisation season. In addition, when baseball fans hold up their smartphones, they will be able to use AR technology to view real-time data on batter vs pitcher matchups with what’s happening on the field. As part of the 5G trial, fans can also watch the action in live 360-degree VR from eight different camera angles while wearing a Samsung Gear VR headset8.

1 Ericsson 2 Cisco 3 FC Barcelona 4 Verizon 5 Rakuten

6 AT&T 7 Amdocs 8 SK Telecom

Wearables and data – bringing fans closer to the action

The data-driven approach to enhance or even replace traditional scouting and coaching methods has swept through nearly every professional sport, targeting both scouting and player development. Professional sport has, for years, been rooted in data; providing coaches with the best information assisting them in areas including the delivery of insight to enable them to keep their best players on the field for longer. One such company playing a pivotal role in this space is Australian based and ASX listed Catapult Sports, who are building an integrated technology stack around wearables, video analytics and other peripheral applications such as athlete management. Catapult has been successful in signing some of the largest teams and leagues from around the world. The interesting development for sports fans and consumers of sports content of such innovations is how “big data” is creating quality insights that enhance fans’ understanding of the game and draws them closer to players and the action. Channel Nine and the NRL have announced a partnership with Catapult to broadcast player data live during the State of Origin series. The partnership will draw on data obtained from Catapult’s wearable local positioning system (LPS) technology and will be used to provide fan engagement content for games during the three game origin series. The rate of innovation in this area shows no sign of slowing, and it is difficult for even the most far-sighted industry commentator to predict what further innovative products may be created to measure athlete performance and fitness in ever-greater detail. This is obviously a boon for coaches who can use data insights to better prepare their players and manage training workloads to minimise the risk of injury.

Figure 3. Catapult Sports Wearable and analytics platform

SOURCE: Catapult

Manchester City introduced Fantom wristband that lets fans see details of the countdown to kick- off for matches, live match updates, interactive quizzes, breaking news and more. The light blue wristband donning a black touchscreen display is the world’s first football smart band aimed at die-hard football fans. The smart wristband with NFC capabilities doubles as a season ticket allowing fans an easier access to the ground. Fans can also pay for snacks using the smart band, and the tech will detect other nearby fans to help ‘spark new connections.

Figure 4. Fantom – a smartband for Manchester City fans

SOURCE: Fantom

AI, Chatbots and sports

Chatbots give sport brands the power of a smarter social strategy with artificial intelligence that improves the fan experience. For example, fans can get the answers they need to common questions quickly, providing a positive experience for them with the brand. A fan with match tickets in hand the morning of a game can quickly ask the chatbot the best place to park near the stadium or immediately after the game inquire about the cheapest seats for the next home match. One prominent example of a successful sport chat bot implementation was during Wimbledon last year when IBM introduced ‘Fred’. Fred was designed through IBM’s Watson technology which is a deep QA software that has been developed to assist businesses in the increasingly technological world. Fred was used by both fans at the competition and supporters watching from around the globe. At the event itself, fans could ask Fred where certain courts were, where they could get food or how to purchase a Wimbledon towel. Fred offered fans at home the ability to watch highlights that had automatically been put together by artificial intelligence. IBM’s Watson technology would piece together clips of points that had generated large crowd noise, were important to the match (break, set or match point) or had produced reactions from the athletes playing. By using AI to produce highlight reels, they were produced in rapid timing allowing fans around the world immediate access to the game. For the 2017 Rugby League World Cup, the Australian Kangaroos introduced a chat bot that allowed fans easy access to squad lists, tickets and breaking news. The bot was developed a year after the NRL’s State of Origin chat bot and so the Kangaroos could learn from the previous chat bot attempt. For instance, they included the ability to send gifs which allowed fans not watching

the game to see quick highlights. The AFL’s Adelaide Crows used a chat bot to facilitate engagement during the 2017 AFL finals series. The bot allowed fans to ask the club questions about games, merchandise and tickets over Facebook Messenger and is using AI to improve the bot over time.

Figure 5. Chatbots are reshaping fan engagement

Source: Adelaide Football Club, Australian Kangaroos & Sky Sports Major broadcasters are also introducing chatbots to engage fans using AI and Sky Sports introduced their Jeff Bot at the end of last year to increase fan engagement with the company. The Jeff Bot is based on popular soccer pundit Jeff Stelling and incorporates his jokes and phrasing into its delivery. Fans can ask questions about the English Premier League or Championship and Jeff Bot will deliver information in a humorous way. Jeff Bot also sends clips of Jeff Snelling commentary to keep fans engaged with the content. We can see chatbots becoming an important tool for all major franchises, broadcasters and leagues to keep their audience engaged with their product.

Diversified distribution and new broadcast technologies

In a move to defend their position in live sports traditional broadcasters are actively looking to leverage both online and social media platforms to grow their audience for certain in-demand events, even after heavily investing to secure exclusive deals for paying subscribers. As part of BT’s bid to broadcast UEFA Championship League matches, they agreed to show some group matches and certain showpiece matches, including the final for free on YouTube, the BT website and on their app. While this caused concern for certain paying BT subscribers, it has resulted in an uptick in the number of viewers and addressed a worrying viewership trend facing both UEFA and BT.

The benefit of live streaming events across diversified platforms is allowing both the broadcasters and the sporting codes to see exactly who is watching and commenting, giving them an opportunity to more effectively engage with fans on a more personal level. Advertisers and sponsors are also given real-time details of viewership and engagement levels, allowing them to target audiences more effectively. In July 2018, Telstra announced that it has turned on LTE-Broadcast (LTE-B) technology across its mobile network with customers using Samsung’s Galaxy S8 and S9 handsets able to enjoy more reliable HD streaming using the AFL Live app. Telstra is the only telco in Australia and one of the first in the world to deploy LTE-B on its mobile network. LTE-B enables real-time data to be multicast to all users on a cell site instead of each user requiring a separate stream. The main purpose of the technology is to minimise the network load of popular, bandwidth-intensive real- time video content, but it can also be used to distribute software updates, and for preloading of video content for later viewing. Telstra has observed that LTE-B users watch a stream more than 25% longer than viewers watching the same content on a non-LTE-B enabled device. LTE-B users also experiences faster video start up times at < 3 seconds vs > 6 seconds for 40% of non-LTE-B users in a high traffic environment9. Telstra is also working to ensure the 5G standards incorporate LTE Broadcast, where it could also help deliver large smartphone software updates and cached video on demand.

Figure 6. Telstra’s presentation on LTE-B at the MWC 2019

SOURCE: MWC 2019 LTE-B Panel

9 ITNews.com.au

Conclusion

Rapid advances in tech is transforming almost every component of the sports ecosystem - from the way sports are played and the equipment players use, to the way sports are governed, and of course the ways that spectators watch and enjoy the on-field action. In addition, the rise of the internet, smartphones and tablets ensured that where once sports broadcasting was limited to the handful of channels on terrestrial television, the proliferation of platforms and devices now means that users have endless options. Broadcasters, teams, stadia, arenas and even network operators are indulging in a technological arms race to remain at the forefront of this change. The industry’s biggest catalyst is technology at both the consumer level and the connectivity level i.e. 5G – from monitoring and improving the athlete’s performance through wearables to enhancing the fan experience with new viewing innovations - anything is which enhances the fan’s experience and increases engagement is here to stay. Major sports codes in Australia are trying to figure out how to engage and attract younger fans, and they are looking to technology not only to gain and retain fans but also to get fans into the stadium. This is where we believe 5G will play an important role as it will enable new technologies to be implemented across stadiums, venues and on the go to drive fan engagement and growth.

About Venture Insights

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