As the Streaming Wars Heat Up, Why Are We Treating Sports in 2024 the Same Way We Did in 1994?

I’m excited to attend GTC this year, a global conference dedicated to the latest innovations in graphics processing, AI, machine learning and more. In addition to showing off some of our own innovations powered by NVIDIA technology, I’ll be there to present a talk—Revolutionizing Fan Engagement: Unleashing the Power of AI in Software-Defined Production—focused on ways that we’re transforming broadcast by preparing its infrastructure for bleeding-edge computational solutions and artificial intelligence (learn more and find the details here).

So, how does that relate to marketing and our industry? The better question is, why are we treating content consumption in 2024 the same way we did in 1994?

Viewing habits are changing—and broadcast must evolve with them.

We’re witnessing the biggest cultural shift in sports consumption since the switch from analog to digital. Broadcast rights to the world’s largest media properties are up for grabs over the next 18 months, and streaming platforms are eager to snatch them up. Netflix bought the rights to WWE Raw for $5 billion in January; last year, Max rolled out MLB, NBA and NHL games, while Peacock aggressively expanded Spanish-language sports content to accommodate a growing Spanish-speaking viewership.

I focus on sports broadcasts in particular because they are responsible for 31% of US linear TV ad revenues, despite live sports representing only 2.7% of broadcast content, according to data from Nielsen Sports. The potential with streaming could be even greater; there’s a lot of money riding on sports as a means to reach evermore diverse audiences, and the streaming platforms they call home offer rich viewer data and robust recommendation engines to serve content to different affinities with great precision. The problem? Broadcast media continues to recognize viewers as basic demographics rather than rich affinity groups. “Home” and “away” are no longer viable identities to pigeonhole viewers.

Just look at how viewing behaviour is shifting, particularly with younger fans, away from traditional sports broadcast formats. More than 90% of Gen Z fans rely on social media to consume sports content, often in the form of highlights, live events, athlete interviews and posts from athletes. In fact, social media is closely linked to Gen Z sports fandom, with most fans following their favorite athletes and teams on social. So, how can broadcasts adapt to reaching them? It starts by recognizing the role of sports (and broadcast in general) as a vehicle for culture and identity validation.

Broadcast is a vehicle for culture.

Today, you can no longer bank on someone becoming a fan of a team just because their parents were. It isn’t a sustainable growth strategy. The only way you’re going to bring in new fans—or for platforms to bring in new subscribers—is through storytelling that plays to viewer affinities and enriches culture.

I don’t have to give you the whole backstory on how Taylor Swift and Travis Kelce’s relationship had brought an entirely new demographic to the NFL seemingly overnight. Some fans responded to this phenomenon with contention, criticizing the (honestly negligible) screen time Swift received at each game she attended. But I’m here to say that it’s okay to watch football just because you’re a Swiftie, just like it’s valid for a sneakerhead to watch basketball to see what everyone’s wearing and how they perform. Or maybe a fashion fan regularly tunes into the “tunnel walk” as if March Madness is an extended Fashion Week.

It’s all valid—and sports broadcasts are shutting out wide swaths of viewers when they don’t accommodate those kinds of viewing habits or interests that fall outside of what might normally come to mind when we think of a “sports fan.” I empathize, because the punk rock scene was my entryway into sports: Rancid—my favourite band—has long created anthems for the San Jose Earthquakes, and my friends in the band Every Time I Die launched Violent Gentlemen, a jersey brand inspired by sportsmanship and hockey (with its own long line of punk band collaborations). These bands made me who I am—and it’s safe to say that without that connection, I wouldn’t be the sports fan that I am today, either.

Now, we have the data to understand what viewers are looking for, and streaming enables us to serve those personalized experiences that resonate with affinity groups. So why shouldn’t there be a Taylor Swift commentary that welcomes viewers into the VIP box? Why not a basketball supercut for sneakerheads?

And that’s just scratching the surface. Netflix’s Formula 1: Drive to Survive docuseries led to a 10% growth in the F1 fan base in the US over three years. According to Morning Consult, one in five F1 fans said the series was a major reason they became fans of the sport—making it a valuable case study in how new content formats can attract and engross new viewers.

Software-defined production, powered by AI, helps us build the content audiences crave.

These more engaging pieces of content, designed to resonate with culture beyond the traditional viewing habits or demographics of sports fans, serve as an alternative to the ads that today’s viewers skip and tune out. That supercut for sneakerheads I mentioned earlier? Imagine if it were sponsored by a footwear brand. Viewers seek out interest- and affinity-based content like this every day, delivered in a format that is native to their (increasingly streamed, increasingly social) consumption habits.

If you’re intrigued, be sure to check out my talk at GTC. There, I’ll share more about how broadcast rights holders can leverage these new content strategies—and how software-defined production, combined with artificial intelligence, helps broadcasters capture, package and deliver these highly personalized experiences to granular audience affinities. I can’t wait to see you there (in person or virtually)!