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December 12, 2018
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The tactics behind The Athletic’s breakout success in sports subscriptions

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Local newspapers may be shuttering and people may be consuming most news on social media, but don’t tell Alex Mather that a subscription news publication can’t grow like a unicorn startup. His 2-year-old sports publisher The Athletic has gained over 100,000 paid subscribers (60% under age 34) and has a 90% retention rate.

Having already raised $30 million in its short life, the company announced a new $40 million Series C yesterday, led by Founders Fund and Bedrock Capital. It reportedly values The Athletic around $200 million.

I interviewed Alex Mather (The Athletic’s CEO) and Eric Stomberg (Partner at Bedrock Capital) to understand what’s behind the breakout success and why they think this publishing startup can scale to become a multi-billion dollar company.

EP: Bedrock makes concentrated, contrarian bets. Explain how The Athletic fits that.

ES: I first met Alex and Adam in 2016 during Y Combinator. The popular view then, as it remains now, was that people just aren’t willing to pay for content online and that to win in media you have to put out a high volume of free articles on social.

The Athletic took the opposite approach. It’s a narrative violation. Everything is part of a paid subscription, with the belief that instead of writers needing to post 3-4 pieces per day, they should focus on deeper stories that add value to paid subscribers over time. That worldview resonated with us. If you can create content at scale that people are willing to pay for, that’s a powerful economic engine.

There’s so much sports coverage already out there, by professionals and amateurs alike, so why are people willing to pay for The Athletic?

AM: While there appears to be an abundance of content, most of it is aggregated, shallow content for a broad audience. We produce fewer stories and target a diehard fan. Our subscribers consistently tell us that no one else produces the same depth on a daily basis.

How did you determine the $60/year price point?

AM: We think of $60/year ($5/month) as less than the average NBA ticket. It’s a meaningful price but not prohibitive, especially when we do discounts in the first year. Like all subscription companies, whether we like it or not, we have to consider how our pricing stacks up against Netflix. For $10/month, you can subscribe to Netflix which is spending $8 billion per year in content.

Is The Athletic profitable?

AM: We expand by launching in local markets. We are in 47 thus far. The operational focus is on building a local team and becoming profitable in each local market. I can tell you that most markets are profitable in the first year–currently all of our markets over one year old are profitable and most of those over 6 months old are profitable.

(Photo by Thearon W. Henderson/Getty Images)

Explain your growth strategy in terms of coverage: which sports did you start with and at which level (local vs national)?

AM: Direct-to-consumer businesses have to work really to earn their subscribers’ hard-earned money. We have to obsess over where we can be different. In the beginning, that was with hockey and baseball, because those have been de-prioritized by the bigger players. That shifted as we gained more subscribers: we needed to become comprehensive. We hired folks to cover the NBA, to cover the NFL, to cover soccer.

Do subscribers usually come just for one local sport or for the broader bundle?

AM: We’ve built a powerful bundle. A local newspaper has local politics, local restaurants, and then local sports. We have just the sports, but add a national perspective and a nationwide bundle. Most of our subscribers are “super bundlers,” meaning they subscribe to content from multiple cities plus at least one national product and usually a college product that’s not local. We provide all that for significantly less than competitors.

Eric — as a VC looking for multi-billion dollar exits, how are you analyzing the potential scale of a subscription publication like this? Even most people who are bullish on subscriptions believe it’s a choice of going for a niche audience and staying small.

ES: There are two things we look for in a subscription business: retention and a positive flywheel.

Retention. In any subscription business, the key question is: can they maintain their subscribers over time? Most of them don’t. Spotify does, Netflix does, and The Athletic does as well. The Athletic is off the charts, which sets it up for scale. You want to see deep engagement over a very, very long period of time — years.

A positive flywheel. The more you build your subscriber base, the more you build your revenue base. That allows you to get better content, to hire unique writers, to build greater depth. In doing so, you attract people who weren’t ready to subscribe in the early days but now you have writers they follow and content they want. Technology is important here too: as you build a bigger platform with more content, serving the right content at the right time to each user is a key advantage. When this flywheel is working it’s actually quite hard to put a ceiling on the business.

Most publishers did a so-called “pivot to video” over the last couple of years. You’re anchored in writing. Why not more video at the start?

AM: We’re obsessed with the consumer and all our research in the beginning said that people still like to read books and articles. Advertising with text may not be as good as with video, which may be why so many other companies “pivoted to video,” but we think the written word is still the best way to convey certain types of stories. It’s straightforward, it doesn’t require headphones.

There’s an incredible amount of talent out there that can produce these stories and that has been cast aside by many entities. We saw it as an opportunity to give them great jobs and bring value to our subscribers. That has paid off for us.

 

What are your plans for video or other content formats in the future?

AM: We raised this Series C with audio and video in mind. We can tell even more stories when we add in audio and video possibilities. Our goal is to serve the subscriber: some love to read, some love to listen, others prefer to watch. We look up to things like The Ringer, Andre the Giant on HBO, VICE News, Gimlet, and The Daily by the New York Times all as incredible storytelling, and we ask ourselves “how can we do sports versions of those?”.

Why focus on hiring experienced, full-time writers rather than a stable of contributors or curating from the vast pool of content by fans? Lots of amateurs pay close attention to sports.

AM: What’s really important to us is a growth mentality — that by Day 100 on our team a writer is thinking very differently. We’re providing lots of data, lots of feedback. We invest in great people who will figure this out with us over time. Also, scaling so quickly from 0 to 300 editorial staff was possible because we recruited experienced talent who know what to do already.

We do have about 400 contributors as well. These are folks who may be lawyers or accountants but are passionate about the teams they cover. We are a way for them to reach a premium audience. We can pay them really well and give them world-class editors formerly with Sports Illustrated and ESPN.

How are you acquiring your subscribers?

AM: When we expand into a new market, we gain new subscribers by hiring writers who have a following already and by word of mouth from existing subscribers. Then like any direct-to-consumer brand, we are acquiring subscribers through Google, Facebook, and Twitter.

You financially incentivize your writers based on them acquiring new subscribers through their articles or by promoting The Athletic with their followers online. That is very uncommon in publishing. Explain that strategy.

AM: It ties back to our focus on building for the long term and investing in talent that will grow with us. We like to assign incentives that give us the best chance of building a sustainable business and we think about compensation in that way. We give our team equity in the company and for many, we tie a portion of their comp to the performance of their team, sport, city. It’s a great way to share in the responsibility and success of the business.

At the bottom of articles, you ask readers to rate each story as “Meh”, “Solid”, or “Awesome”. I wish every publisher did this. How do you use this data? How do a writer’s scores impact them?

AM: It’s about feedback loops. Our writers gauge feedback when they share on Twitter. This is another data point. It helps paint a more complete picture. NPS alone isn’t enough of course though. We look at whether articles drive new subscribers, drive deep engagement, drive comments, etc. We don’t use pageviews, but we certainly use metrics. Usually, this results in a writer producing very different work on Day 100 than they were on Day 0.

Explain the interaction between subscribers. It’s not unique to have a comments section: there are bad comments sections, good comments sections, and comments sections that go unused. At a tactical level, how do you think about building community?

AM: My co-founder and I met at Strava, the social network for endurance athletes. I ran the product team and we were obsessed with community. We see an incredible connection between community engagement and subscriber retention. The question that drives us is how can we connect users in an authentic way, how can we connect users to our staff in an authentic way, how can we connect users to athletes in an authentic way. We’re doing a lot of experimentation here. We have a distinct opportunity because of our paywall: most of the comments on The Athletic are saying substantive things.

News Source = techcrunch.com

SoftBank leads $35M investment in sports engagement startup Heed

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Heed, a startup looking to create new ways for sports leagues and clubs to engage with fans, is announcing that it has raised $35 million led by SoftBank Group International.

As laid out for me by CEO Danna Rabin, the company sits at the intersection of sports and IoT — which makes sense, since it was founded by Internet of Things company AGT International and talent agency Endeavor .

“Our primary mission is to connect the young audience with sports leagues and clubs,” Rabin said. “[Those] audiences are consuming less broadcast TV, consuming less of anything linearly. Sports clubs and brands are having more and more issues connecting with and reengaging those younger audiences.”

To create that connection, Heed places sensors around the match or game venue, even potentially on players’ clothing and equipment.

For example, the team let me make a couple punches using gloves with sensors inside, which were created for the mixed martial arts league UFC. Afterwards, I could see the measured force of each of my swings. (I didn’t really have any points of comparison, but I think it’s safe to say that my numbers weren’t too impressive.)

Rabin emphasized that Heed’s real focus isn’t on building fancy hardware, but rather on the artificial intelligence it uses to take that data (which can also be drawn from video and audio footage of the match) and transform it into a general narrative that can be viewed on the Heed smartphone app.

Pointing to the UFC glove, Rabin said, “We extract, only from this sensor, 70 different data points. What’s happening is, the fusion of these data points is what creates the stories.”

Put another way, the goal is to replace the generic commentary that you often get in sports coverage and live games with unique details about how the game or match is unfolding. Those aren’t just numbers like how hard someone is punching, but also inferences about a player’s emotional state based on the data.

“One of our core promises is that it’s not editorial driven,” Rabin added. “The AI is selecting what’s interesting in a match. Of course, we have a creative team that designs the formats, the visuals, how the packaging should look like, but that’s incorporated into the technology, which is automatically selecting the moments and creating the experiences with no human interpretation.”

So does Heed aim to be a technology provider or a sports media company of its own? Well, Rabin said it didn’t make sense to simply provide the tech to individual leagues or teams.

“A specific club does not have the breadth of technologies to keep evolving,” she said. Plus, she argued that the audience isn’t looking for just a one-off site with stories about one team, but an all-around destination where they can “get a bit of everything.”

In addition to the UFC, Heed is also working with EuroLeague (the European basketball league), various soccer clubs and Professional Bull Riding. In the latter case, it’s not just creating content, but actually working with the organization to create a more automated and objective form of judging.

“By leveraging AI and IoT, HEED has developed a unique platform that is changing the way fans watch and interact with sports,” said Softbank President and CFO Alok Sama. “HEED is taking a traditionally static experience and providing fans with deeper insights into the physical and emotional aspects of the sporting event by gathering and analyzing large, complex data in real time.”

News Source = techcrunch.com

Amazon’s Thursday Night Football live stream will feature real-time stats, Amazon.com shopping

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Amazon is taking full advantage of its deal to live stream Thursday Night Football games, which it snagged the rights to earlier this year. The company will this year launch a TNF pre-game show, co-stream the games on its video game streaming site Twitch, and will leverage Prime Video’s “X-Ray” technology to give viewers access to real-time stats, team info, and the ability to shop for team merchandise on Amazon.com.

X-Ray for Prime Video typically offers viewers information about cast and characters in a TV program or movie, as well as info about the music and, sometimes, additional trivia.

In the case of TNF, however, the focus will be on the players and teams.

With the start of the games today, September 27, at 8:20 PM ET, X-Ray on Prime Video will debut a new experience across Fire TV devices, including Fire TV Cube, 4K, Fire TV, and Fire TV Stick, which will give fans live stats and player information, without taking them away from the action.

Instead, viewers will be able to push the “up” button the Fire TV remote to see information like Game Leaders and Team Stats to track top players rushing, passing, receiving, and more. They can deep dive into a favorite team through the new “Teams” tab to learn facts like who owns the team, or how many Super Bowls they’ve won, among other things.

The X-Ray feature will also display real-time play stats and history, available through a “Play History” tab.

While these options are largely repurposing Amazon’s X-Ray feature and putting it to use for sports, the “Shop” option takes things a step further.

Amazon will now allow U.S. viewers to shop its site via X-Ray for things like team hats, t-shirts and other gear – all right from the TV screen.

This isn’t the first time Amazon has tried to blend TV viewing with shopping. It also launched a TV app in the past and even tried a watch-while-you-shop show, Style Code Live, which it later canned. During this year’s Prime Day, it ran QVC-style videos for selected products. But X-Ray isn’t typically used for shopping.

Also new this year to the stream is the option for all-female audio commentary from sports journalists Andrea Kremer and Hannah Storm. Amazon said this is the first time two women commentators have covered an NFL game in its entirety.

The option will be joined by others, including a Fox Sports commentary from Joe Buck and Troy Aikman, plus a Spanish-language feed, and a U.K. English feed.

Meanwhile, over on Twitch (which Amazon owns), the game will be live-streamed on the Prime Video channel, where it will include interactive extensions.

Instead of X-Ray, there will be an overlay featuring similar real-time stats, including NFL standings and team stat pages.

Viewers will aso be able to chat using NFL emojis (Twitch’s emotes), that include team logos and other Twitch originals, like those for touchdowns, flags, catching and running with the ball, and more.

The popular Twitch streamer GoldGlove will also co-stream the game with his own commentary on September 27.

Amazon and Twitch will stream 11 TNF games this season across over 200 countries, starting tonight with Vikings vs. Rams at 8:20 PM ET, following the pre-show at 7:15 PM ET.

 

News Source = techcrunch.com

Live streams of karate and niche sports are terrifying major sports leagues

in Delhi/Endeavor/Entertainment/espn/esports/Facebook Live/Gaming/Hulu/India/Media/mlb/NBA/Netflix/nfl/Politics/Sports/streaming TV/Twitch/ufc/Video/YouTube Live by

Of the 100 most-watched live telecasts in the US in 2005, 14 were sporting events; in 2015, sporting events comprised 93 of the top 100 telecasts. That shift occurred because TV shows are shifting to online or on-demand viewing, and live broadcasts of the biggest sports are the main thing TV networks have left to draw in live audiences. But the need to keep those sports on TV and off streaming services is only accelerating the rate at which young people are tuning into other sports leagues instead.

The rapid adoption of subscription video streaming services like Netflix and Hulu and of social live streams on Facebook, YouTube, and Twitch is enabling massive growth by sports leagues that you won’t normally see on TV. In the streaming era, more sports – and new types of sports like esports – keep thriving while interest in traditional pro leagues like the NFL and MLB declines.

OTT is where the growth is

The central narrative in the global film/TV industry right now is the response of incumbent companies to the growing dominance of Netflix, Amazon, and other streaming (aka “OTT” or over-the-top) services. The incumbents are merging to consolidate ownership of must-have shows onto a smaller number of new OTT services that will each be stronger.

The majority of American households have a Netflix subscription (i.e. access to one of Netflix’s 56M US accounts), another 20M have a Hulu subscription, the number of OTT-only households has tripled in 5 years, and 50% of US internet users use a subscription OTT service at least weekly. Almost one-third (29%) of Americans say they watch more streaming TV than linear TV, and among those age 18-29 it’s 54% (with 29% having cut the cord on linear TV entirely). People, especially young people, want to watch shows on their own time and on any device, and they get more value from a few $8-40 per month subscription platforms than a $100+ per month cable bill.

Meanwhile, social live-streaming platforms that got their start enabling people to either vlog or watch video gaming are expanding to all sorts of live broadcasting: Twitch averaged 1 million viewers at any given point of day in January, and there were 3.5 billion broadcasts over Facebook Live in the first two years after it launched (with 2 billion users viewing at least one).

We’ve hit the pivot point where media is streaming-first. Netflix is now the leading studio in Hollywood, spending $13 billion this year on content. Linear TV viewing is declining: every major cable network (except NBC Sports) has declining viewership and aging viewers. Between 2007 and 2017, the median age of primetime viewers on ABC, CBS, NBC, and Fox went up 8-11 years and are all in the 50s or 60s.

Major pro sporting events are the last bastion of TV networks because the dominant brands are, for the most part, only available live on TV. Beyond those, the only content getting large audiences to tune in simultaneously are a couple Hollywood awards shows and premieres or finales of a couple hit shows (Big Bang Theory and NCIS).

The exclusive broadcast rights to those live sports events – particularly the NFL, NBA, MLB, and top NCAA basketball and football games – are the last defense for major broadcast networks. They are the reason for younger Americans to not cut the cord. ESPN makes $7.6 billion per year in carriage fees from cable companies paying for the right to carry the main ESPN channel (the other ESPN channels add another $1 billion); that number is increasing even as ESPN’s viewership is declining.

Disney (ESPN’s owner) and other leading broadcasters don’t want to let people watch major sporting events online instead (at least not easily or cheaply) because doing so would pull the rug out from under their traditional revenue stream and OTT revenue (subscription + ads) won’t make up for it quickly enough. This problem is only exacerbated by the fact that TV networks are paying record sums for exclusive broadcast rights to top sports leagues out of fear that losing them to a rival could be a nail in their coffin.

This strategy is delaying, not stopping the shift in consumption habits. More and more young people are tuning out (or never tuning in) to the major pro sports on TV, and the median age of their audiences shows that: 64 for the PGA Tour, 58 for NASCAR, 57 for MLB, 52 for NCAA football and men’s basketball, and 50 for the NFL…and all are getting older. (Cable news networks, the other holdouts who are still doing well on live TV face the same situation: the average age of Fox News, MSNBC, and CNN viewers is now 65, 65, and 61 respectively.)

The major pro sports staying on linear TV has expanded the market opening for new sports to fill the open space with young people who mainly consume content online. In fact, a growing marketplace of different sports leagues (including esports) developing their own fanbases is an inevitability of the shift to OTT video as it lowers the barrier to entry to near-zero and let’s geographically dispersed fans unify in one place.

1. Lower barrier to entry for distribution

Lawn bowling is no longer your grandfather’s sports league. Mint Images/Getty Images

Niche sports leagues – or frankly, even big sports leagues that just aren’t at the scale of professional football, baseball, basketball, and hockey – have always had a hard time getting coverage on television. But you can produce and distribute video for an online audience more cheaply than for a television audience.

In fact with Facebook Live and Twitch, you can stream live video for free, and you can share clips across every social channel to attract interest. To launch your own OTT service or partner with an existing one, you don’t need to start with a massive audience from the beginning and you don’t need millions of dollars from sponsors just to break even.

Having signed over 150 new deals this year alone for its 20+ sports verticals (which will stream 2,500 live events in 2018), Austin-based FloSports has established itself as the go-to OTT partner for sports leagues with an established, passionate following that aren’t massive enough to garner regular ESPN-level coverage.

From rugby, track & field, and wrestling to bowling, competitive marching band, and ballroom dance, millions of Americans have participated in these activities in their youth and through clubs as adults but rarely see them on television. In fact, the rare instances when such sports are on TV – like their national championships – the league is usually paying large sums (potentially hundreds of thousands of dollars) for that airtime rather than getting paid by the broadcasters.

FloSports gives a home to the superfans of its partner leagues, with full coverage of the sport and commentary meant for real fans. It produces events in the manner best fit to highlight the action and turns superfans – who generally pay a subscription – into evangelists who recruit friends. There are numerous sports that have millions of participants yet no active, high-quality event coverage; those are underserved markets.

By tapping into this, FloSports properties (like FloWrestling, FloTrack, etc.) have gained hundreds of thousands of subscribers and created a surge of interest in teams like Oklahoma State’s wrestling team, which saw an 144% increase in live stream viewing and 68% growth in event attendance after joining FloWrestling (leading to them to set an all-time attendance record in the university’s basketball arena of 14,059 people). In the first half of 2018, FloSports’ various Instagram accounts collectively received 307M video views, more than the collective accounts of Fox Sports or of all NFL teams (and NFL Network).

2. Going global right away.

Johanne Defay of France at a World Surf League event. Mark Ralston/AFP/Getty Images

The top pro sports leagues have geographically concentrated fan-bases that fit the geographic restrictions of TV broadcasters, which end at a country’s border. Online streaming empowers sports that have large fan bases who aren’t geographically concentrated to aggregate in the digital sphere with enough eyeballs (and paying subscriptions) to drive engagement with the sport’s content through the roof.

Since being acquired in 2015 and renamed World Surf League, the governing body of professional surfing has developed a large global following – with 6.5M Facebook fans and 2.9M Instagram followers – through the launch of live streams and on-demand video on its website and mobile app, plus partnering with third-parties like Bleacher Report’s OTT service B/R Live. Only 20-25% of WSL’s viewers are in the US but since its competitions are streamed direct-to-consumer online, they were able to reach surfers around the world right away. After seeing WSL’s Facebook Live streams garner over 14M viewers in 2017, Facebook paid up to become the exclusive live-stream provider for WSL competitions for two years, beginning this past March.

3. Immediate data on audience engagement.

As with all offline-to-online shifts, OTT video streaming captures dramatically more data on audience demographics and engagement than television does, and it does it in real-time. This makes it easier for emerging sports leagues to partner with advertisers and show immediate ROI on their sponsorships, plus it informs their understanding of how to produce their particular type of sporting event for maximum audience engagement.

Karate Combat is a year-old league that builds off the existing base of karate participants and fans around the world (numbering in the tens of millions) with a new competition format specifically intended for OTT. The league allows full-contact fighting and sets the match in a pit (rather than a traditional fighting ring) for better camera angles. It also replaces the traditional focus on having a big in-person audience (which is expensive) and instead sets the fights in exotic locations (like the fight this coming Thursday night on top of the World Trade Center).

Like many emerging sports leagues, Karate Combat is vertically integrated: the league organizing the competitions is also the one producing and streaming the event coverage over its website, mobile apps, and social channels. This not only means it captures the content-related revenue from subscribers, advertisers, and numerous OTT distribution partners, but it sees every data point about fans’ viewing behavior and their interaction with various dashboards (like biometrics on each fighter) so they can optimize both online and offline aspects of the production.

4. Online means interactive

Jujitsu fighting is now an OTT service. South_agency/Getty Images

Online viewing creates the opportunity for functionality you can’t achieve with linear TV: interactive displays overlayed on or next to live video. Viewers can pull up and click through real-time stats, change camera views, or switch overlays (think the the yellow first-down line in NFL broadcasts or coloring around a hockey puck to help you track it on the ice). Ultimately, a more interactive experience means a more social and more entertaining experience (and the sort of deep engagement advertisers value too).

FloSports’ ju-jitsu live streams (FloGrappling) give subscribers multiple live cameras each covering simultaneous matches on different mats so they can click between them. This is a more personalized experience than passively watching one broadcast on TV and it gets that subscriber actively engaged, with their behavior providing valuable data points for FloSports and their deeper interaction likely more compelling to event sponsors.

The display might also highlight live comments from friends or friends-of-friends in order to draw viewers into a more social experience. Discussion of a specific live stream with others watching it has been a central feature for Twitch and Facebook Live and enables the league or team streaming the event to directly engage with fans around the world.

An exception to the OTT-first strategy may be in sports that are entirely new and have zero existing base of participants or fans. Karate, surfing, and video-gaming all have millions of passionate participants around the world, going back decades. A new league like the 3-year-old Drone Racing League (DRL), which has raised $21M in venture capital to develop the sport of competitive drone racing, has to artificially stimulate the development of a fanbase if it doesn’t want to wait years for grassroots competitions to create a critical mass of fans even for a niche OTT service. It’s unsurprising then that DRL has focused on striking TV deals with ESPN, Sky Sports, ProSiebenSat.1, and others to thrust it in front of large audiences from the start, like a new game show hoping its format will entice enough people to take interest.

Power is in the hands of the league owners

Ari Emanuel, chief executive officer of William Morris Endeavor Entertainment. Jonathan Alcorn/Bloomberg via Getty Images

The best position to be in right now is the owner of a sports league that’s rapidly growing in popularity. The competition for audience by both traditional media companies and tech platforms leaves a long list of distribution partners eager for must-have, exclusive content – especially content like sports events that fans want to want live together – and willing to pay up.

Moreover, vertical integration to control your fans’ content viewing experience and own your relationship with them has never been easier. There are direct subscriptions, advertisers, event sponsors, event tickets, a portfolio of possible OTT distribution deals, and merchandising. The potential revenue streams a league can develop are only more numerous when you add in launching a fantasy sports league – like World Surf League has done – and the recent nationwide legalization of sports betting in the US.

Endeavor, the parent company of Hollywood’s powerful WME-IMG talent agency, seems to have recognized this and is an early mover in the space. It bought two sports leagues that have relied on TV deals and event attendance revenue – UFC for $4B and the smaller but rapidly growing Professional Bull Riders for $100M – and, since they each own their content, launched direct-to-consumer subscription platforms (UFC Fight Pass and PBR Ridepass) for super-fans and cord-cutters. (Endeavor also paid $250M to acquire Neulion, the technology company whose infrastructure powers the OTT services of the UFC, PBR, World Surf League, and dozens of others.)

There’s opportunity for new streaming platforms focused on being the media partner for these emerging sports leagues. Inevitably, the opportunity for bundling will consolidate many of the niche subscriptions onto a small number of leading sports OTT platforms, and that’s a powerful market position for those platforms.

What is unclear is if they can defend themselves as the incumbent media and tech companies come around to this phenomenon and commit billions toward capturing the market. The leading sports broadcasting companies all have OTT offerings and want to make them as compelling to potential subscribers as possible even if they exclude content from the biggest pro sports. A larger company that can afford to spend huge sums on exclusive sports streaming rights (like Disney with ESPN/ABC, Comcast with NBC/Sky Sports, CBS with CBS Sports Network, or Discovery with Eurosport) might opt to buy a company like FloSports as part of their deep dive into the space or they might just aim to outbid them when a league’s contract comes up for renewal.

The hope for an independent OTT platform devoted to emerging sports leagues is they get big enough, fast enough that they can afford to keep winning the rights to emerging leagues as those leagues grow and offers from competitors bid prices up. These dedicated OTT services will likely have to secure long-term – think ten years – streaming rights deals or acquire control of some popular new sports leagues outright to hold their own.

Like online distribution triggered an explosion of digital publishing brands and social influencers for every imaginable niche, the rise of high-quality live streaming and subscription OTT services will allow a lot more sports leagues to build an audience and revenue base substantial enough to thrive. There’s more variety for consumers and resources than ever for those with a rapidly growing league to attract fans worldwide.

News Source = techcrunch.com

TAPPP raises $5M to offer pre-paid access to live sports streaming

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There is a good chance you’ve never heard of TAPPP, but you probably know some of its customers like Major League Baseball (MLB) and the NFL. And if you’ve ever seen pre-paid cards for access to the NFL Game Pass subscription services or MLB’s streaming service in your local supermarket, then you’ve seen its product, too. TAPPP focus is on making access to this premium live sports content available as a pre-paid service for these leagues.

As the company announced today, it has raised a $5 million Series A funding round led by leAD Sports/OurCrowd’s ADvantage Fund, with additional backing from Accomplice, Elysian Park, Go4it, Courtside VC and Sterling.VC.

The ADvantage Fund is backed by leAD Sports, a sports accelerator launched by the grandchildren of Adi Dassler, who you may know as the founder of Adidas.

TAPPP is currently available at over 5,000 retailers, including Walmart and Gamestop. The company notes that it makes access to these sporting events available to both the unbanked who can’t otherwise get a credit cards, as well as consumers who opt out of having one.

“TAPPP is a perfect fit for ADvantage’s debut fund. Its approach to serving untapped viewer segments through a combination of traditional payments and an innovative, on demand viewing experience, is unique and creative,” said Jeremy Pressman, a partner at ADvantage. “We at ADvantage are thrilled at the opportunity to leverage our deep connections in the sports market to broaden TAPPP’s reach even further.” Pressman will join TAPPP’s board.

News Source = techcrunch.com

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