44% of fans already don’t subscribe to traditional pay-tv platforms
A study from Grabyo has found that 54% of pay-tv subscribers plan to stop paying for one within the next five years.
The ‘Value of Video Report 2020: The Consumer Strikes Back’ report used data from 13,000 consumers from UK, France, Germany, Italy, Spain, US, Brazil, Argentina, Thailand, Japan and Australia. It asked about their spending habits on TV and video services, how they value subscriptions, and future plans to pay for video.
Based on these respondents, the report found that 56% of sports fans in those territories subscribe to a pay-tv sports package. However, with 54% of that group looking to ditch their subscription, this could leave a market with almost 75% of consumers not using a pay-tv service.
Meanwhile, the use of online streaming is growing. 58% of fans already watch sport on streaming platforms, and this is predicted to continue growing. This includes direct-to-consumer streaming services, social platforms, websites and apps.
With platforms such as DAZN and Matchroom Live soon adding to the global video streaming market by going worldwide, there could be further bad news for traditional broadcasters. The extra competition and wider offerings from online streaming will be another challenge for the industry.
This could have large repercussions for sports federations and media rights, with Grabyo CEO Gareth Capon saying: “2020 will be the year we see the true impact of the streaming wars on viewing habits and what this means for the wider video industry. Broadcasters and rights holders need to cater to an audience that is moving away from traditional TV.”
“Flexibility, access and price are important to consumers, which means delivering a multi-platform video strategy that reflects these needs. With more than half of sports fans planning to drop pay-TV subscriptions within the next five years, the sports industry needs to adapt its offering and reflect the needs of the modern fan.”