Until now, most sports fans who wanted to watch their team live have been forced to buy expensive cable or satellite television packages. However, things are changing and now many sports leagues and teams are looking into the feasibility of OTT streaming platforms. But, what are they and what benefits can they provide for leagues, teams and fans alike?

What is OTT Streaming?

Let’s start with the real basics. OTT stands for ‘over-the-top’. This kind of media or streaming service is offered directly to viewers via the internet. As a result, this type of service bypasses cable, broadcast and satellite television platforms. OTT streaming can take two forms. Firstly, sports leagues can sign deals with internet streaming providers such as Netflix, Amazon Prime, HBO Max, Disney+, Hulu and YouTube, rather than selling the rights to the content to traditional TV broadcasters, such as Sky Sports or ESPN. Alternatively, they can build and launch their own direct-to-consumer OTT platform that is dedicated to their sport or team.

How are Sports Leagues Using OTT Streaming?

At the moment, OTT streaming is in its infancy. However, there are notable examples of professional sports leagues signing contracts with internet streaming providers (these are also known as OTT aggregators). For example, in 2021, the NHL signed a multi-year distribution deal with Disney. Similarly, the MLS has signed a deal with Apple TV. Over in the UK, the Premier League has signed a deal with Amazon Prime. Meanwhile, a number of cricket matches are now shown on YouTube. Added to this, some leagues and teams have started to launch their own D2C OTT streaming services. For example, World Rugby recently partnered with RugbyPass and ViewLift in order to launch RugbyPass TV, which showed Rugby World Cup matches in territories that were out of market. Similarly, many football clubs in England below the Premier League now have their own channels so that fans who live out of the country are able to watch certain games live in return for a small subscription fee.

Should Sports Leagues and Teams Create their Own D2C Platforms?

So, which of these is the right approach to take? Well, one this is for certain: because linear TV channels like Sky Sports can only devote a limited amount of time to a particular sport and come with restrictive licensing models, both OTT approaches are clearly superior as they allow sports leagues/teams to better serve, grow, engage and retain their audiences. But, which of the two models is best? Well, let’s first analyze the strengths and weaknesses of partnering with OTT aggregators. At first glance, this looks like a solid option. After all, if a sports league partners with the likes of Disney or Netflix, they’ll immediately gain access to a huge number of eyeballs. Plus, they’ll likely earn a huge sum of money by doing so. However, there are downsides to this kind of partnership. For example, all of the content goes behind a paywall, so it’s harder to capture new fans who aren’t engaged already. Similarly, each league’s product becomes one of the many that are available on that streaming service. For that reason, competition for the aforementioned new eyeballs is high. As a result, sub-par monetization is often achieved. For these reasons, many leagues and teams are now creating their own D2C OTT streaming services. These solutions provide content owners with a captive audience and more leverage over branding, sponsorships and advertising revenue. Plus, D2C OTT platforms also provide content owners with a real-time view of viewer behavior and preferences. This allows leagues and teams to better engage with their fans and earn more money. Of course though, D2C OTT streaming services don’t come without their downsides. After all, they take a lot of time, effort and expense to set up. Plus, they need constant maintenance, which can be costly.

Conclusion:

However, the right partnerships can also help circumnavigate these issues. After all, RugbyPass launched their OTT streaming SVOD service in just four days with the help of ViewLift. Using the finished platform, they drew audiences from 92 countries and streamed 284 games in their launch season. Plus, they also set up a diverse set of payment options within the platform. As they ensured that they gave subscribers affordable choices, RugbyPass were also able to efficiently capture SVOD revenue. So, while it’s clear that partnering with TV channel or an OTT aggregator is the easiest method, we think it’s fair to say that D2C OTT streaming services are the future for sports leagues and teams around the world.