Are you ready for Streaming 3.0?

Are you ready for Streaming 3.0?

John Kosner has introduced the term "Streaming 3.0" in a recent article with Ed Desser , let's analyze what he means and what are the potential scenarios in front of us.
Meanwhile Formula 1 has introduced a new F1TV premium subscription level, which in my view is what I would, call Streaming 3.0 - taken from another angle (I am still a product guy).

Starting from these two interpretation of what Streaming 3.0 could really be and which scenarios may open up, I have decided to ask two questions: one for John and for F1.

Let's start from understanding what's inside these two concepts, one by one.


What is John Kosner saying?

In his Sports Business Journal column with Ed Desser, John Kosner outlines the evolution of sports media distribution through three distinct phases:

The Evolution of Sports Media

  1. Traditional Era: Broadcast TV dominance
  2. Streaming 1.0: "TV Everywhere" - authenticated streaming as an add-on to cable subscriptions
  3. Streaming 2.0: Major streaming platforms (Amazon, Netflix) acquiring exclusive sports rights
  4. Streaming 3.0: Expansion to non-traditional players entering sports rights bidding

Key Insights on "Streaming 3.0"

  • The pool of potential rights bidders is expanding far beyond traditional media companies
  • Sports rights holders will likely adopt new licensing models (similar to NFL's former "Tricast" approach) that allow multiple platforms to simultaneously broadcast the same content
  • Any company with a recognizable brand, interest in sports viewers, and large internet footprint can become a sports rights buyer
  • No government broadcast license or expensive cable infrastructure required

Potential New Players in Sports Media Rights

  • Video game companies (EA, Take-Two) streaming live games to simulation players
  • Social media platforms (Meta, Twitter/X) despite past hesitations
  • Retailers (Amazon, Walmart, Target) leveraging their massive ad networks
  • Major advertisers (McDonald's, Nike, Adidas) bidding directly rather than just sponsoring
  • Wireless carriers (Verizon, T-Mobile) who already bundle streaming services
  • Sports betting platforms (FanDuel, DraftKings) adding more live content
  • Niche streaming specialists (Kiswe, ViewLift, Victory+) for local sports

The Economic Model

Kosner predicts that to make the economics work, winners will create bundled offerings that combine:

  • Live rights
  • Entertainment libraries
  • Betting integration
  • Merchandise
  • Tickets
  • Collectibles
  • Ancillary programming
  • Video games
  • Sophisticated personalization

Kosner concludes that sports rights prices will continue to rise, especially for top properties, as competition intensifies and companies seek to leverage sports content as a retention tool for their core businesses.

Full article: https://www.kosnermedia.com/news/streaming-30


What has F1 announced?

Formula 1 has launched F1 TV Premium, representing what could be considered a product-side manifestation of "Streaming 3.0" with its focus on personalization, enhanced quality, and multi-device functionality.

Key Features of F1 TV Premium

  • 4K Ultra HD/HDR Streaming: High-definition broadcast quality for all F1 Grand Prix events, F1 Sprints, Qualifying and practice sessions
  • Personalized Multiview: Customizable viewing experience allowing fans to simultaneously watch multiple elements (main feed, onboard cameras, timing data) on a single screen
  • Multi-Device Access: Subscribers can watch on up to six devices simultaneously
  • Comprehensive Racing Content: Live access to F2, F3, F1 ACADEMY and Porsche Supercup sessions in addition to F1 races
  • Platform Availability: Initially available on Chrome web browser, Apple iOS, Apple TV and Roku (with device-specific limitations)

Evolution of F1's Streaming Strategy

F1 TV has evolved through three distinct tiers:

  1. F1 TV Access: Entry-level offering with race timing data and replays
  2. F1 TV Pro: Mid-tier service with live feeds, onboard cameras, team radio, and in-depth data
  3. F1 TV Premium: Top-tier offering with 4K/HDR quality and personalized multiview capabilities

The "Streaming 3.0" Elements

What makes this align with a product-side "Streaming 3.0" vision:

  • Personalization: Allows viewers to customize their experience like a "personal pit wall"
  • Enhanced Control: Viewers become active participants in how they consume content rather than passive recipients
  • Immersive Experience: Creating a more engaging, multi-dimensional way to experience F1 races
  • Premium Quality Differentiator: Using technological advancements (4K/HDR) as a key selling point for the premium tier

As described by Ian Holmes , Chief Media Rights and Broadcasting Officer at Formula 1, this represents their "continued commitment to improve content offering" by allowing fans to "create a personalized platform" for complete immersion in the racing experience.

Full article: https://www.formula1.com/en/latest/article/f1-tv-launches-new-f1-tv-premium-subscription-tier.46ULoJHnve3zgO0pmiKzrF


My question for John Kosner

Great analysis, John. I appreciate the scenario building in your "Streaming 3.0" vision, particularly how you've mapped out the potential for non-traditional players to enter the sports rights ecosystem.

What I'm particularly curious about is the driving force behind this evolution. Is there a strategic architect guiding this transformation? Is it primarily the tech giants seeking valuable content to boost retention and engagement metrics? Or perhaps the sports properties themselves orchestrating this fragmentation to maximize revenues?

Alternatively, are we witnessing something more organic - a natural market evolution where multiple forces (technology improvements, consumer behavior shifts, financial pressures on traditional broadcast models) are converging without any single dominant driver?

The reason I ask is that understanding the primary catalyst might help predict where this goes next. If tech companies are the driving force, we might expect more bundling with their core services. If it's rights holders, perhaps we'll see more creative splitting of packages. And if it's truly organic market evolution, the end state might be more unpredictable than either scenario.

Would love your perspective on who's really in the driver's seat of this transformation.


My question for F1

Regarding F1 TV Premium, I'm curious about the future vision once this product gains traction with avid fans and achieves more complete platform coverage.

What is the long-term strategy for availability? Will this premium experience eventually be accessible globally without regional restrictions? I wonder why such enhanced viewing experiences should be limited by traditional rights agreements when they serve a different audience segment - the super fans who want deeper engagement beyond standard broadcasts.

Is there a possibility for rights owners in various territories to integrate this enhanced experience into their general OTT platforms through partnerships? This could create a win-win situation where traditional broadcasters maintain their general audience while F1 reaches the avid fans directly.

As an advocate for making global enhanced products available to all dedicated fans regardless of location, I believe there's no real competition here except ego. The casual viewer and the hardcore fan seek fundamentally different experiences. Why not serve both optimally through different channels?

I'd be interested to hear your thoughts on how F1 envisions the evolution of this premium product in relation to your existing broadcast partnerships over the next 3-5 years.


What is Streaming 3.0 for you?

Write your take in the post comments when you have time, it could be an healthy debate.


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Carlo De Marchis

Advisor. 35+ years in sports & media tech. "A guy with a scarf" Public speaker. C-suite, strategy, product, innovation, OTT, digital, B2B/D2C marketing, AI/ML.

1 小时前
回复
Sushant Rai

Founder & CEO | Addressing Challenges, Providing Value

10 小时前

OTT had, and has, all along promised a better experience than legacy, one-way distribution modes. What F1TV has done is hit the bullseye by providing to all who wanted the true OTT experience - the ability to watch 'what-I-want-to-watch, how-I-want-to-watch-it and on the-devices-of-my-choice'. Personalisation by way of camera choices, realtime data choices, audio/language choices, etc. is what OTT is all about. Finally, the power of OTT comes forth. I'm now my own content director. Since the tech is, and resources are, available, I foresee this premium experience becoming the basic standard for all rights holders to implement hereafter - not just for sports, but for entertainment, reality-shows, music shows, et al.

Responses (Part 2): 2.????3.0 is about the non-tech sports giants.?Market evolution.?Companies differentiating themselves by targeting sports fans.?The tech and media companies are already playing, so who steps forward over a longer period to take advantage of the value of exclusive sports content. 3.????Streaming services are packaging more.?As the rights costs spike, there will be natural partnerships.?That is how the U.S. cable industry has worked.?Operators funded programming production, with advertisers contributing their part.? Streaming 3.0 will simply be more diverse and interesting! 4.????In terms of F1 … Country-by-country licensing dates to another era.?There were no global media operators in the last century.?Since the 90’s, some have offered regional services (e.g., Sky, Star, ESPN), but prior to streaming, there was no common platform or operator.?When global companies bid more than individual media companies in each country or region collectively, rightsowners will look to license them.?See Amazon, Netflix to date.? 5.????Streaming 3.0 is bigger than sports.??However, we focused only on live sports, observing that the big potential change is in who buys and aggregates the content next.?

回复

Hi Carlo, Some responses from Ed Desser and me about your different questions (Part 1): 1.???We believe that the primary catalyst is organic forces: o???The Internet connecting everyone and providing a global market for sports fandom and viewership o???Improved streaming technology that makes the experience of watching sports on streaming better and better to the point that it is becoming a substitute for traditional broadcast/cable delivery – although still neither as good nor as reliable o???Dissatisfied with the costs and quality of the traditional pay TV bundle, U.S. consumers are “shaving” the cord (moving down from MVPD services to DMVPDs offering fewer channels like YouTubeTV) and to cutting it altogether o???Seeking reach and increased revenues, sports rightsholders are l striking more deals for the same inventory – opening the way to more entities (both traditional and streaming) purchasing sports rights and creating more viewer confusion (finding out what’s where).??Those sports properties with the most leverage are leading this movement o???As streaming services compete for paid subscribers and confront churn, they are moving naturally to add advertising tiers, making sports a logical programming acquisition ...

Felipe Souza

Gest?o ADM/OP | Sales | Marketing | Finance | Economy - Gerente Operacional da Madeiras Cosme Velho

21 小时前

Love this content about sports, marketing and business! So cool to watch the evolution of sports streaming and the IA tools erupting in the markets nowadays and bringing so much alternatives and market disruptions! Love to see it. Specially because it makes the consumer experience so much better and personalized ????

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