Anything we can learn from F1 in the US? Ask NBA and RSNs.

This edition of "A guy with a scarf" starts from a journey to and a great long form article, and contains a narrated video below - watch it!

Michael Broughton 's LinkedIn post mentioning Roger Mitchell 's LinkedIn post about the original Stratechery ( Ben Thompson ) long form article.

All smart contributions to an incredibly deep and well articulated piece by Ben Thompson , I am impressed.

In a nutshell: "The sports media landscape has shifted due to the decline of pay-TV and the rise of streaming platforms. Formula 1 has successfully adapted, leveraging Netflix's "Drive to Survive" docuseries to attract a broader audience and increasing fan engagement. Meanwhile, the NBA faces declining viewership due to factors like the pandemic, pay-TV collapse, and excessive focus on social media. Regional sports networks (RSNs) also struggle with the transition to streaming platforms. Sports leagues must focus on building direct connections with fans, enhancing their products, and creating compelling narratives to thrive in a media environment where pay-TV bundles no longer dictate success."

The original article, definitively really worth a read.

This post also starts from my laziness and curiosity to explore new stuff.

There was so much content to absorb that I had to put to work my ChatGPT-plus subscription with the new GPT-4 engine. I first summarized parts of the article in a sequence, creating an initial draft that I cross-checked manually. I then asked GTP-4 to elaborate a well written piece based on the sequence of summaries with a specific focus on making it coherent.

Then I thought a text summary is MEH.

So I launched Syntesia Studio and started crafting an AI generated video with an avatar to tell the story.

Here is the result:

I also did this as now everybody is saying "AI will not replace you, someone using AI will."

See if you have noticed the little glitch I left in the video to signal it is AI generated :).

I have the impression nobody is interested in such an anonymous format of content, but it's quite cool to put it together, so we'll see.

I also can understand many may have doubts on this way of using others people content and repurposing through AI tools, as this raises a ton of IP and copyright questions. I know, I am here to stimulate a debate.

Experimenting with all these new AI-based is a necessity for they way I operate. I need to get immersed in stuff before I formulate an opinion and can then help others on strategy or innovation. Others may operate differently, but that is my most ideal way.

I would heavily recommend you read the full article or start from Michael and Roger LinkedIn posts.

In case this is the video's script in verbal format.

"In recent years, the sports media landscape has undergone significant changes due to the decline of pay-TV and the rise of streaming platforms.?

Formula 1 has experienced a resurgence in popularity, largely due to Netflix's docuseries "Drive to Survive." The series has attracted a broader and younger audience, with the average age of F1 fans falling from 36 to 32 since 2017 and female participation doubling. U.S. viewership for F1 races has increased by 121% since the 2018 season. This growth can be credited to both the docuseries and Liberty Media's efforts to engage with fans after acquiring F1's commercial rights in 2017. The 2023 rule changes, which include increased fan engagement activities with drivers and team principals during race weekends, further emphasize the importance of catering to fans in F1's expanding audience.

In contrast, the NBA has experienced a decline in viewership in recent years, with events like the All-Star Game and NBA Finals seeing lower ratings. This decline can be attributed to factors such as the pandemic, the collapse of the pay-TV bundle, and an excessive focus on social media over regular fans. As more consumers turn to streaming platforms, pay-TV has become a sports and news bundle, with fewer casual fans maintaining subscriptions. ESPN, which holds live sports rights, faces increasing pressure to compete for content, driving up prices. Although leagues like the NBA currently benefit from this situation, the long-term sustainability of this model remains uncertain.

The decline of pay-TV and the rise of virtual pay-TV providers have also impacted regional sports networks (RSNs), which traditionally relied on cable subscriptions to support high-cost rights deals with sports teams. With fewer cable subscribers, RSNs struggle to generate enough revenue to cover their expenses, leading some to consider bankruptcy or being cut loose. This situation highlights the challenges media companies face when transitioning to streaming platforms.

The difficulties faced by RSNs serve as a warning for sports leagues that fail to adapt to the changing media landscape. The NBA, for example, risks alienating casual fans by not addressing issues such as excessive fouls, flopping, endless timeouts, and players' attitudes. Formula 1, on the other hand, has actively worked to engage and grow its fanbase through strategies like "Drive to Survive," new venues, and improved fan interactions.

Sports leagues must learn from successful organizations like Formula 1 and digital-era newspapers, focusing on building direct connections with their fans, enhancing their product's attractiveness, and utilizing storytelling to create compelling narratives around their sport. In a media environment where traditional pay-TV bundles are no longer the primary source of revenue and audience growth, leagues must adapt or risk losing their audience to aggregation.

In conclusion, the changing sports media landscape calls for sports leagues to focus on engaging their audience and improving their product. By taking inspiration from organizations like Formula 1 and digital-era newspapers, they can better prepare for a future where traditional pay-TV bundles no longer dictate their success."

This is?"A guy with a scarf"?episode No.15 - for March 2023.

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