RZ Ep. 52: Nick Meacham - Streaming's Evolution: From Exclusivity to Aggregation

It's not Saturday Night Live yet, where multiple hosting became a thing, but for this episode 52 of Retention Zone I have decided to invite, for the second time after one year, Nick Meacham the CEO of SportsPro to have a look at what has happened to streaming and the way that streaming is monetize and the fight of customer retention vs. churn.

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Streaming's Evolution: From Exclusivity to Aggregation

The sports streaming landscape has undergone significant transformation in the past 12 months, with traditional models of exclusivity giving way to more complex distribution strategies. Nick Meacham, returning to Retention Zone after being the show's first guest, shared insights on how the industry has evolved and what trends are shaping its future.

Key Developments in Sports Streaming:

The Rise of Aggregation

One of the most notable shifts has been the industry's move toward aggregation platforms. As Meacham explains, "We've seen a real evolution over the last 12 months of the conversation... stemming around monetization and the depth we've seen from big tech really leaning into trying to be an aggregator." This trend isn't limited to tech giants; even specialized streamers like DAZN are pursuing aggregator roles.

Co-Exclusivity Becomes the Norm

The concept of exclusive rights has evolved significantly. "I've heard the term more than ever in the last 12 months of co-exclusivity," Meacham notes, describing how rights holders are increasingly comfortable sharing exclusive content across multiple platforms rather than maintaining strict exclusivity.

Multi-Layer Distribution

The distribution landscape has become increasingly complex, with content being available across multiple platforms and services. The conversation highlighted how this complexity, while potentially confusing for consumers, represents efforts to make content more accessible and streaming businesses more sustainable.

Netflix's Sports Strategy:

A significant development has been Netflix's entry into live sports, with Meacham noting their expanding portfolio: "They've done deals with WWE, NFL, they took up the Tyson and Paul fight." The upcoming Christmas NFL games on Netflix is viewed as a crucial test for the platform's live sports capabilities. As Meacham observes, "You can't just do the Christmas games and Netflix are and then say that's it... It just doesn't make any sense."

Monetization and Business Models:

Hybrid Revenue Approaches

The industry has embraced hybrid monetization models combining subscription and advertising revenue. Meacham points out that viewers have shown acceptance of ad-supported options when they lead to lower subscription costs, though this remains a debated topic regarding user experience.

Sports Properties as Media Businesses

Sports organizations have evolved into more sophisticated media operations. "Every sport has become more of a media business now," Meacham notes, explaining how they're "able to do some fun things that can be valuable in both their own channels and on other platforms."

Value Creation at Multiple Levels

The industry has recognized the need for diverse revenue streams. As Meacham explains, "You've got to have the subscription model to add value, but you also have to keep layering on those other ways of driving more value out of it on top of that."

Platform Evolution:

The conversation highlighted DAZN's strategic moves, including partnerships with various sports properties and leagues. Meacham points to their deals with NFL Game Pass, FIBA's Courtside, and other properties as examples of their evolving aggregator strategy.

Looking Ahead:

Several key developments will shape the industry's future:

Big Tech's Role

The continued involvement of major technology companies in sports streaming remains a crucial trend to watch, with Amazon and others making significant moves in the space.

Rights Distribution

The industry is watching how major sports properties might adapt their streaming strategies, with Meacham suggesting potential moves from organizations like F1 and the NBA.

Direct-to-Consumer Evolution

Sports organizations are increasingly considering their direct-to-consumer options, with Meacham noting renewed interest from football clubs in developing their streaming presence.

Conclusion:

The sports streaming landscape has become increasingly complex, with traditional models giving way to multi-layered distribution strategies and hybrid monetization approaches. As Meacham summarizes, "It's become even more complex in the last 12 months and quite a rapid rate and there's still some really big question marks going into the next 12 months."

The industry appears to be moving toward a more mature phase where success depends on balancing multiple distribution channels, revenue streams, and user experiences. The upcoming year will likely see further evolution as major players like Netflix expand their sports presence and traditional sports organizations continue to develop their direct-to-consumer capabilities.

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