Grabyo Study Shows 54% of Spots Fans Will Exercise Cord Cutting Within Five Years
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A new study from Grabyo has found that 44% of sports fans do not currently pay for a pay-TV subscription, while 54% of those who do currently pay for pay-TV, plan to stop within five years. Grabyo’s ‘Value of Video Report 2020: The Consumer Strikes Back’ report used data from 13,000 consumers across 11 territories including the UK, France, Germany, Italy, Spain, US, Brazil, Argentina, Thailand, Japan, and Australia.
The report asked consumers about their spending habits on TV and video services, how they value subscriptions, and future plans to pay for video.
Major broadcasters and pay-TV providers currently hold many of the world’s premier sporting rights and consumers have limited choice in where, or how, to watch. By 2025, less than a quarter of sports fans will subscribe to pay-TV, which has significant implications for sports federations and media rights.
Today, 58% of sports fans watch sport on online streaming platforms, which ranges from direct-to-consumer streaming services, social platforms, websites, and apps.
Sports fans are showing a keen interest in online streaming options. In the UK, U.S and Australia, between 25-30% of consumers would pay up to $25 to watch sports online.
Sports-focused streaming services such as DAZN offer a low entry price point and have scaled successfully, and for a leading rights holder such as the English Premier League to generate increased revenue from a direct-to-consumer streaming model, scale matters.
The report concludes that correctly timing the decision to move from selling exclusive media rights packages to pay-TV broadcasters, to selling streaming services direct to fans, may be the most important decision for major sports in the next decade.
“2020 will be the year we see the true impact of the streaming wars on viewing habits and what this means for the wider video industry,” says Gareth Capon, Grabyo CEO. “Broadcasters and rights holders need to cater to an audience that is moving away from traditional TV. Flexibility, access, and price are important to consumers, which means delivering a multi-platform video strategy that reflects these needs. With more than half of sports fans planning to drop pay-TV subscriptions within the next five years, the sports industry needs to adapt its offering and reflect the needs of the modern fan.”
