BUILDING GLOBAL SPORTS BRANDS IN A DIGITAL WORLD - CONNECTING WITH MOBILE/SOCIAL AUDIENCES THROUGH NATIVE VIDEO - Grabyo

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BUILDING GLOBAL SPORTS BRANDS IN A DIGITAL WORLD - CONNECTING WITH MOBILE/SOCIAL AUDIENCES THROUGH NATIVE VIDEO - Grabyo
BUILDING GLOBAL SPORTS BRANDS IN A DIGITAL WORLD
   CONNECTING WITH MOBILE/SOCIAL AUDIENCES THROUGH NATIVE VIDEO
BUILDING GLOBAL SPORTS BRANDS IN A DIGITAL WORLD - CONNECTING WITH MOBILE/SOCIAL AUDIENCES THROUGH NATIVE VIDEO - Grabyo
“We’re clearly at the very beginning of mobile video sharing,”
                        Dick Costolo, ex-CEO at Twitter

“The fact that we have this much consumer video on Facebook means we have
  an opportunity to grow our ad business and that’s exciting for marketers,”
                      Sheryl Sandberg, COO at Facebook

   “Video, along with mobile, social, and native, is driving a surge in digital
                                 advertising.”
                         Marissa Meyer, CEO at Yahoo

“If it’s starting to feel like every visit you make to Facebook these days is full of
                               videos, you are not alone.”
                                   TechCrunch

      “We’re focused on three top priorities: mobile, mobile and mobile!”
                         Susan Wojcicki, CEO YouTube
BUILDING GLOBAL SPORTS BRANDS IN A DIGITAL WORLD - CONNECTING WITH MOBILE/SOCIAL AUDIENCES THROUGH NATIVE VIDEO - Grabyo
INTRODUCTION                                                                                risen at inlation-busting levels to reach new highs in
                                                                                                multiple markets. The recent ESPN, Turner deal with the
    There are more than two billion smartphone users                                            National Basketball Association (NBA) was worth $24bn
    worldwide and 4G networks will cover more than a third                                      over 10 years, which is 2.8 times higher than the previous
    of the global population by the end of 2015. Thanks to                                      deal based on the average annual combined payments.
    these advances in mobile computing and with the leading                                     Meanwhile the Sky Sports and BT Sport deal with the
    social networks now ofering native video formats, 2015                                      English Premier League (EPL) in March 2015 was worth
    is the year that mobile video is mainstream. As the sports                                  £5.1bn over 3 years, a 70% increase on the previous cycle.
    industry contends with increasing competition for audience,
    accelerating globalisation, digitisation of fan bases and                                           English            £3bn
    demand for revenue diversiication, social video presents                                    Premier League

    signiicant opportunity. This report will examine why major                                  (Sky Sports + BT Sport)
                                                                                                                          +70% £5.1bn           Previous cycle
    sports rights holders, such as the National Football League
                                                                                                                                                New deal
    (NFL), Wimbledon and LaLiga, are bringing real-time video
    content onto social platforms. It will also examine the
    opportunities that exist for rights holders looking to build
                                                                                                                                     $8.6bn
    their global brands, activate new audiences and grow
                                                                                                               NBA
    revenues.                                                                                                                            +280%
                                                                                                    (ESPN + Turner)                                              $24bn

        THE WORLD IN 2020 - 80% OF ADULTS OWN A SMARTPHONE                                                                Source: FT.com, bbc.co.uk

8        Growth to 2020
7                                                                                               The new broadcast deal for the EPL is good for clubs and
         2014
6                                                                                               teams – the ‘bottom club’ in the Premier League in the
5                                                                                               2016/17 season could take revenue equivalent to a top 10
4                                                                                               team from the previous year; yet club’s are sufering from
3                                                                                               their own inlation concerns in the form of transfer prices
2                                                                                               and player wages. The proitability challenge for European
1                                                                                               clubs is compounded by the new UEFA regulations for
                                                                                                Financial Fair Play (FFP), which state that clubs competing
Consumer      PCs    Smart    Online   Mobile    Literate   TV        Adults   Population       in the region must operate within a ixed boundary of
  PCs               phones    pops                adults audience                               its annual revenue and operating proit. In order to
                                                                                                maintain their power in the transfer market, clubs must
                                                                                                either balance the books by buying and selling players in
     ANOTHER BILLION PEOPLE ONLINE - ALL DUE TO SMARTPHONES
                                                                                                tandem (to ensure that income from player sales ofsets
                                                                                                the cost of new acquisitions), bring an increasing number
         4
                                                                                                of players through from their youth academies that can
                    Smartphones                                                                 be sold on to other clubs at a proit as they mature,
         3
                    People online
                                                                                                expand their commercial operations and grow alternative
         2                                                                                      revenue streams. The size of Premier League grounds are
                                                                                                increasing, ticket prices are rising and merchandise sales
         1                                                                                      and sponsorships are ever more important to clubs in this
                                                                                                regard.
             1995             2000              2014                2020

                    Source: World Bank, GSMA, a16z, ITU                                         REVENUE DIVERSIFICATION: THE NEXT BILLION
                                                                                                FANS

    THE BUSINESS OF SPORT IN THE 21ST CENTURY                                                   Whilst there has been evidence to suggest that the top
                                                                                                football clubs in Europe are looking to operate a more
    The value of sport in the twenty-irst century media and                                     balanced transfer system (value of players in = value of
    broadcast markets is unquestioned: broadcasters, pay-                                       players out), the option to diversify revenue streams and
    TV companies, mobile operators, broadband service                                           expand income is attractive. Options available include:
    providers, technology businesses, publishers and media
    companies all want to own, distribute and monetize
    sports content. Sport dominates live “event” television,                                    •      Activation and engagement of a global fan base to
    where consumers (‘passionate fans’) have demonstrated                                              drive merchandise sales and sponsorship deals
    that they will pay for content. Despite concerns regarding                                  •      Direct to consumer content and service propositions
    cord- cutting, time-shifted viewing and the rise of digital                                        that supplement revenues from existing TV and
    and mobile platforms for sports consumption, recent                                                broadcast deals
    TV deals for premium sport have bucked the trend and

                                                                                            3
BUILDING GLOBAL SPORTS BRANDS IN A DIGITAL WORLD - CONNECTING WITH MOBILE/SOCIAL AUDIENCES THROUGH NATIVE VIDEO - Grabyo
•   Expansion of the range and scope of deals with talent                                                                           years. The challenge of latlining growth is exacerbated
    to maximize the increasing commercial power of the                                                                              by demographic trends for primary rights owners: the
    players (and their sizeable fan base)                                                                                           NBA, NFL, Major League Baseball (MLB), National Hockey
                                                                                                                                    League (NHL), EPL and LaLiga all operate in markets where
•   Provision of new sponsorship and advertising assets –                                                                           demographic expansion is slowing - a stark contract to the
    driven by digital propositions (global, regional, local)                                                                        massive and rapidly expanding consumer populations in
                                                                                                                                    Asia, Central and Southern America and Africa.
•   Greater exploitation of customer (fan base) data to
    maximise the value and eicacy of traditional revenue
                                                                                                                                    The scale of the opportunity in emerging markets is a
    streams (e.g. ticketing, hospitality, merchandise).
                                                                                                                                    combination of the volume of the potential audience (more
                                                                                                                                    than 2bn consumers in China and India alone) and the
              Building a global fan base and extending                                                                              acceleration of the ‘emerging middle class’ who are the
              the reach and value of sports beyond                                                                                  key targets for globalizing sports: these consumers are
              the strongest domestic markets is a key                                                                               wealthier, have an interest in western culture and sports,
              commercial objective for the leading sports                                                                           are more likely to own a smartphone and are active on
              leagues and federations.                                                                                              digital and social platforms. These are the next ‘billon(+)
                                                                                                                                    consumers’ and the race is on to turn them into passionate
                                                                                                                                    fans of premium sports. The EPL has an advantage as
                                                                                                                                    football (soccer) has been broadcast extensively in these
The inancial results of the top football (soccer) clubs
                                                                                                                                    markets for many years and football is a highly popular
in Europe this year illustrates that the impact of rising
                                                                                                                                    sport – in South East Asia, Latin America and Africa.
broadcast income, combined with a focus on revenue
                                                                                                                                    Nevertheless, the major US leagues (NFL, NBA, MLB, NHL)
diversiication, is beginning to pay dividends. The
                                                                                                                                    are increasingly focused on these territories adding to the
English Premier League (EPL) consolidated its position as
                                                                                                                                    competition for audience, fan engagement and revenue.
the world’s most powerful football league in 2013-14 as
the 20 EPL clubs generated record income of £3.26bn,
outstripping second place Bundesliga in Germany by more                                                                                  DIGITAL AND SOCIAL USER GROWTH: ASIA-PAC (2014-15)
than £1bn.
                                                                                                                                       Total population
In the irst year of the Premier League’s 2013-16 television
                                                                                                                                                                                               3.85bn
deals, which total £5.5bn, a review of football inance by
Deloitte highlighted that TV income alone was €171m                                                                                                                                     +3.7%        4bn
(£126m) more than the entire income of Spain’s LaLiga
clubs, €405m more than the total earnings of Italy’s Serie A                                                                           Active internet usetts
clubs and €606m more than the income of France’s Ligue
1 clubs. Indeed, these commercial opportunities are not                                                                                                   1.26bn
limited to sports clubs and teams.                                                                                                                    +14.3%      1.44bn

         MAJOR EUROPEAN LEAGUES: BROADCAST REVENUES                                                                                    Social media users
                                                                                                                                                     980m

                                                                                                                                            +12.2%        1.1bn
    €7.57bn

                              €7.39bn

                                                                                                                                       Mobile connections
                                                                                                                                                                                         3.4bn

                                                                                                                                                                                  +11.2%      3.7bn

                                                                                                                                       Mobile social users
                                                              €7.16bn
                                        LaLiga Clubs income

                                                                                                         Ligue 1 Clubs income

                                                                                                                                                  795m
                                                                        Serie A Clubs income

                                                                                                                                                                                  2014        2015
              EPL TV income

                                                                                                                                         +11.2%      906m
                                                                                               €6.96bn

                                                                                                                                         Source: Wikipedia, InternerLiveStats, InternetWorldStats,
                                                                                                                                            Government data: Facebook, Tencent, Vkontakte,
                                                                                                                                                     LiveInternet; GSMA Intelligence

                                                                                                                                    The globalization of sports is not just an emerging market
Indeed, these commercial opportunities are not limited to
                                                                                                                                    story: US sports franchises are looking to Europe to build
sports clubs and teams. Broadcast TV deals have remained
                                                                                                                                    a new audience – such as the recent NFL games held in
strong in domestic markets for most leading sports, but
                                                                                                                                    London and NBA games taking place across Europe for
the scale of the overall fan base and TV viewing audience
                                                                                                                                    example - and the EPL and LaLiga are looking back to the
in these markets has not changed markedly in recent

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BUILDING GLOBAL SPORTS BRANDS IN A DIGITAL WORLD - CONNECTING WITH MOBILE/SOCIAL AUDIENCES THROUGH NATIVE VIDEO - Grabyo
growth opportunity in North America driven by the growing              DIRECT TO CONSUMER: OVER-THE-TOP (OTT)
interest in soccer highlighted by the nationwide success of
FIFA World Cup 2014.                                                   Global sports federations such as the MLB and NFL, as
                                                                       well as many of the leading clubs and teams, use digital
Whilst the leagues are scheduling friendlies and a number              platforms as an opportunity to engage with a global
of regular season games in overseas markets, it is much                audience and provide direct-to-consumer content/ services
easier for clubs and federations to engage a global fan                across multiple platforms. Examples include NFL Mobile
base using digital and social platforms. The scale of the              and NFL Now, NBA League Pass, MLB Game Pass, NHL
social fan base for some of the top football clubs in Europe           Gamecenter, MUTV, Liverpool FC Go and Real Madrid TV.
relects this already; a combined audience of hundreds of
millions of users. The scope of the holistic digital fan base is       The irst wave of direct to consumer video services
immense: Manchester United claim that they have >500m                  launched by the major European football clubs were TV
fans worldwide and FC Barcelona claim to have engaged                  channels delivered via pay-TV satellite and cable operators
with >300m fans across digital platforms. Connecting a                 (e.g. MUTV and ChelseaTV made available to satellite
global audience presents opportunities for clubs and                   subscribers for an additional monthly fee). However, clubs
leagues to sell content, merchandise and other services to             require carriage agreements with broadcasters in each
this rapidly growing fan base around the globe.                        target country to scale these services internationally and
                                                                       as such OTT services can be more attractive; they can be
                                                                       delivered to fans anywhere in the world via the internet and
        THE GLOBAL FAN BASE: FC BARCELONA FACEBOOK
                                                                       connected devices; and they enable a direct relationship
                FANS BY COUNTRY (MAR 2015)                             between the club and its fans.

                                                                       The success of the internet-based OTT services for clubs
                                                                       and teams has been mixed to date. A number of EPL
                             %
                    %                                                  clubs still ofer this as a paid-subscription service (such
            %
                                            %
                                                                       as Manchester United, Chelsea and Liverpool) but other
                                                                       leading clubs such as Arsenal have made the service free to
        %                                                              fans that register their email details:

        %
                        Millions of fans
                                                %                      •   The ‘bar’ for paid-subscription services is getting higher
                %                                                          all the time – most club subscriptions are at the same
                         %
                                                                           price point as Netlix (which ofers consumers original
                                      %
                                                                           content and thousands of movies and TV shows – not
                                                                           just news, highlights and limited access to live games)
                                 Source: SocialBakers
                                                                       •   A subscription service is ‘always-on’ and requires
                                                                           exclusive, high-value content to be delivered in to
                                                                           the channel 365 days per year. The availability of
                                                                           these services on larger-screen devices (e.g. via Apple
                                                                           TV, Roku, Xbox, Playstation, Chromecast etc.) also
                                                                           puts more pressure on the clubs to spend more on
                                                                           production – cutting into margins and production
                                                                           lexibility

                                                                       •   YouTube has built a strong relationship with many
                                                                           of the clubs, encouraging them to engage with their
                                                                           global fan base via their YouTube channel – all of these
                                                                           services are ofered free to consumers with advertising
                                                                           sold by YouTube and shared with the clubs

                                                                       The other factor inluencing the OTT strategy for clubs
                                                                       and teams is the growing importance of social platforms
        Despite the recent expansion in the value                      as destinations for video content discovery, consumption
        of commercial broadcast and TV rights for                      and sharing. Subscription and pay-per-view (PPV) video
        the major leagues, there is growing concern                    propositions are not available as native experiences on
        that these revenues will peak as TV viewing                    social media given the open and viral nature of these
        plateaus and consumption accelerates on                        platforms. The growth of Facebook video has been
        other digital and connected platforms - with                   particularly important, giving teams the opportunity to
        mobile at the heart of this growth.                            share short-form videos with millions of fans across the
                                                                       globe using Facebook as the distribution channel. The

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BUILDING GLOBAL SPORTS BRANDS IN A DIGITAL WORLD - CONNECTING WITH MOBILE/SOCIAL AUDIENCES THROUGH NATIVE VIDEO - Grabyo
curation and discovery role that Facebook plays in the video             Facebook video was reinvented by the ice bucket challenge
ecosystem is key as the data that Facebook carries on users              – a global video event played out on the social web.
makes it easy to identify fans of a speciic sport or team and            Twitter now have over 130 media partners for its premium
surface relevant content within their feeds.Moreover, video              sponsored video programme (Twitter Amplify) and recently
shared using the native video player on the social platform              rolled out native video within its app to make a play to use
performs 20-30x better than videos hosted on a club’s own                video as the driver of premium content and advertising on
website (or YouTube channel).                                            its platform. Snapchat has launched generated content
                                                                         and videos ads within its Snapchat Discover feature that
                    THE RISE OF SOCIAL VIDEO                             showcases content from media partners such as Vice and
                                                                         MTV as well as video curated from users within its Live
                                                                         Stories section.

                                                8.4bn
                                                4bn
                                                4bn
        4bn

       25%                               50-65%

       User generated                    UGC / Premium

        2012                               2015

   Source: YouTube Statistics / Reuters (2013) , Facebook Insights
                 (2014), Grabyo platform metrics

THE GROWTH OF MOBILE (AND SOCIAL)
AUDIENCES

Nearly half of the world’s adult population now owns a
smartphone; by 2020, it will be 80%. Mobile app usage
dominates digital media consumption and Facebook is the
most popular app of all. With the shift to mobile continuing
apace, social mobile apps such as Facebook, Twitter and                  Meanwhile, YouTube has evolved to become both a
Snapchat will play an increasingly important role in the                 platform and rights owner and is nurturing a stable of
media industry.                                                          new ‘YouTube stars’ whose subscriber numbers dwarf the
                                                                         population of many countries. With a mission to maximize
As social platforms have evolved, a common theme has                     their ad revenues, the vastly superior ad rates for premium
emerged: from text and links to photos and now videos.                   video formats are irresistible.

                                                                                Facebook counts over 1.4bn users, 844m of
                                                                                which access the platform using their mobile
                                                                                everyday with 50% of users watching at least
                          “Five years ago Facebook was all                      one video daily
                          about text, today it’s all about
                          images, in ive years it will be
                          about video.”
                                                                         Facebook’s scale means the social media audience for
                          (Mark Zuckerberg, Facebook - Feb 2015)
                                                                         broadcasters and rights holders has received a signiicant
                                                                         and timely boost, it counts over 1.4bn users, 844m of which
                                                                         access the platform using their mobile everyday. Twitter
                                                                         now has over 300m monthly active users, Snapchat has

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BUILDING GLOBAL SPORTS BRANDS IN A DIGITAL WORLD - CONNECTING WITH MOBILE/SOCIAL AUDIENCES THROUGH NATIVE VIDEO - Grabyo
more than 100m and YouTube has over a billion users
logging in each month and half of these are mobile.                                                            Native video has always been the most
                                                                                                               successful way to deliver a great video
These vast numbers exclude the hundreds of millions                                                            experience, particularly for short-form, and
of users that access video via other social platforms and                                                      especially on mobile.
messaging apps including WhatsApp, Line, WeChat, Tango,
Instagram, Vine, Tumblr, Tencent, Sina Weibo and more.

       ACTIVE USERS BY SOCIAL PLATFORM - GLOBAL 2015
                                                                                                           SOCIAL VIDEO CONSUMPTION (FACEBOOK): NATIVE VS.
                                                                                                                          NON-NATIVE PLAYER
           Facebook                                                       1.366

                  QQ                                                829                                    5.000
              Qzone                                           629

                                                                                      AVERAGE VIEWS/HOUR
           Whatsapp                                           600                                          3.750                   Facebook native player
Facebook Messenger                                      500                                                                        3rd party video player
             WeChat                               468
                                                                                                           2.500
            Google+                         343

               Skype                  300
                                                                                                           1.250
           Instagram                  300

              Twitter                284
                                                                                                           0
            TUMBLR               230                                                                                     10           20           30         40
                Viber          209                                                                                        Source: Grabyo Q1 2015
         Baidu Tieba           230

                 Line      170                                                        YouTube was the irst platform to build a native experience
          Sina Weibo      157                                                         and then consolidate within applications owned and
                                                                                      managed by Google; the move away from an integrated
           Vkontakte     100                                                          experience within iOS for example driven by the desire to
           Snapchat                                                                   control the UX and advertising experience on mobile. One
                         100
                                                                                      of the deining aspects of the YouTube video ecosystem
                                                                                      is that although it’s relatively simple for content owners to
                           Messenger / Chat APP / VOIP                                publish content to YouTube and embed a YouTube video
                           Social Network                                             in their website or apps, the video experience presented
                                                                                      to the user is a ‘YouTube’ experience and not a white label
                                                                                      service. When a clip ends viewers are recommended other
 Source: We are social analysis of Facebook data, Q1 2015; latest
          company statements, correct as 17 Jan 2015
                                                                                      videos to watch from YouTube, or encouraged to subscribe
                                                                                      to a YouTube channel, thus reinforcing the need for
                                                                                      content owners to publish more content to the YouTube
NATIVE VIDEO AND SOCIAL DISCOVERY                                                     platform.

For social platforms competing to dominate video                                      Facebook and Twitter extend this concept by providing
consumption, user experience matters. Every click away                                a social video discovery service as part of their native
from an app, timeline or newsfeed can mean thousands,                                 video proposition. Facebook knows a lot about its users,
if not millions, of lost views. This is why Twitter, Facebook                         from opt-in engagement data such as ‘likes, comments
and other platforms have spent so much time and money                                 and shares’ in addition to how they spend their time
building their own native digital propositions for their users.                       and attention within the newsfeed. The picture of user
If you provide the best video solution ‘on platform’ you are                          behaviour is further enhanced by data coming from
likely to attract the best content (and advertising partners);                        millions of mobile apps that use Facebook Open Graph for
but more importantly, you create the best experience,                                 authentication and login. As such Facebook can use this
which in turn leads to higher engagement. Facebook                                    data to present videos to its users that are both relevant
launched its own (native) video player to ensure that a                               and in context - which means users are much more likely
Facebook video experience is ‘the best video experience’ on                           to watch them. Thanks to Facebook’s algorithm and the
Facebook. Facebook’s rapid growth to more than 4bn video                              reinforcing behaviour of the viral content loop, the most
views a day in a little over 12 months shows how efective                             popular content also remains in the user’s newsfeed even
this strategy has been.                                                               as new content is shared.

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BUILDING GLOBAL SPORTS BRANDS IN A DIGITAL WORLD - CONNECTING WITH MOBILE/SOCIAL AUDIENCES THROUGH NATIVE VIDEO - Grabyo
In July earlier this year Facebook announced that it would            Twitter is now working on its own feature “Project Lightning”
be introducing a new pilot feature called ‘Suggested Videos’,         to enhance video discovery and bring users the most
an alternative News Feed dedicated to videos, in order to             relevant content, rather than simply the latest tweets.
explore engagement and potential video monetisaiton on                Examples of this trend include video recommendations and
the platform. Once a user has watched a video from their              “whilst you were away” lists of relevant content which are
newsfeed, a list of algorithmically created ‘high quality’            already live within the Twitter mobile apps.
video suggestions appear from media partners such as Fox
Sports and the NBA, interspersed with regular content. This           A recent study by BuzzFeed highlights the importance
new functionality will likely lead to increased engagement            of using the social platforms as channels rather than
levels by presenting relevant, premium videos to users and            mechanisms to drive traic to rights holder’s owned and
the advertising experience is similar to traditional television       operated digital platforms. Whilst the volume of traic
with video adverts added as interstitials between clips.              sourced from social networks is impressive – Facebook
Facebook has already closed its irst deals with the likes             alone drove 350m visits to BuzzFeed in 2014 – this traic is
of NBA, Hearst, Fox Sports and Funny or Die for this pilot            dwarfed by the volume of engagement generated by native
programme with the business model based on publishing                 consumption on the social platforms themselves.
partners taking a share of 55% of revenue generated by
the video ads sold by Facebook that appear alongside their
content.

                                                                                   349M                              11.3B

                                                                                   12.5M                             847M

                                                                                   60M                               6.4B

                                                                         REFERRALS TO BUZZFEED            IMPRESSIONS IN THE STREAM

                                                                                           Source: Buzzfeed 2015

                                                                      AUTOPLAY: SOCIAL VIDEO’S SECRET WEAPON

                                                                      Building on Facebook’s understanding of user behaviour
                                                                      and interests, the platform has delivered a simple, yet
                                                                      highly efective user experience for getting customers
                                                                      to watch more video – autoplay. This is the single most
                                                                      important feature in the recent history of online (and
                                                                      especially mobile) video. This is not a new trick. For
                                                                      years we have turned on our TV in “autoplay mode” and
                                                                      understood this to be the standard experience for watching
                                                                      video. In many ways it is surprising that it took so long to
                                                                      reach the digital ecosystem. The data shows that it works.
                    Source: Facebook 2015

                                                                      The success of autoplay on Facebook prompted Twitter to
                                                                      launch its own autoplay variant as part of the native Twitter
Using their growing knowledge of user data to surface                 video experience for users on Twitter.com and mobile
relevant content and advertisements in the suggested                  apps. No such plans have been announced by YouTube,
videos feed, Facebook can deliver mutual beneits for both             but it would seem likely that the platform may test this
the viewer and content owners. This new model may turn                feature at some point in the future, particularly for mobile
out to be a major source of revenue growth for Facebook               users or in combination with its Google search driven
within the next year, considering the rapid growth of video           experiences (OneBox and Google Now).
consumption on the Facebook platform.

                                                                      THE VALUE FOR RIGHTS HOLDERS
      Social is now a destination for content, not
      just a communications and discovery tool.                       The NFL was among the early partners for Twitter Amplify,
                                                                      the social network’s lagship initiative to bring sponsored
                                                                      video content from media companies and rights holders

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BUILDING GLOBAL SPORTS BRANDS IN A DIGITAL WORLD - CONNECTING WITH MOBILE/SOCIAL AUDIENCES THROUGH NATIVE VIDEO - Grabyo
onto its platform. As a result, the NFL enjoyed digital
engagement at a scale typically unavailable outside of                                      Rights holders are also building scalable
television and has generated signiicant revenue from                                        audiences on social platforms that are
brand partners. In December 2014, the NFL partnered with                                    always-on and span multiple geographies and
Facebook to deliver real-time video content from live games                                 demographic groups worldwide.
through the Championship play-ofs and the Superbowl
with the clips sponsored by Verizon and Salesforce and
viewable to all of Facebook’s users in the U.S.A.
                                                                                  Chelsea FC has 40m fans on Facebook, this is nearly 1000x
The digital video rights owned by the NFL are understood                          more people than could it into its Stamford Bridge stadium
to be some of the most valuable sports rights in the world                        for an average game (and probably higher than the total
- so why are major rights holders like the NFL sharing                            number of football fans in the UK). FC Barcelona has 98m
content for ‘free’ on social platforms?                                           fans across Facebook and Twitter, Real Madrid has 87m
                                                                                  fans, Manchester United has 70m...the list goes on. Sharing
Rights holders have been evaluating social platforms as                           video content with these audiences generates signiicant
video publishing destinations in response to key trends                           reach and consumption; both with the initial spike in real-
in user behaviour and media attention. Firstly, millions                          time engagement and the proliferation of viral sharing
of consumers visit social platforms such as Facebook up                           throughout the following 24-48hrs as users from diferent
to 15x per day - no publisher or rights holder is likely to                       parts of the globe discover, view and share the clips with
command this level of engagement for its own website or                           friends. This process is enhanced by Facebook’s discovery
mobile apps. Secondly, the viral nature of social platforms                       and curation (EdgeRank) algorithms, which recognise this
means that when social media users discover a great                               spike in content engagement and surface clips to a relevant
piece of content, it is distributed far more quickly and                          user community.
broadly than a publisher could achieve through traditional
channels. Video is also becoming an increasingly important                        The Facebook pilot deal with the NFL and Verizon, the
part of the social ecosystem; it drives increased dwell                           growing scale of Twitter Amplify, the deals between
time, engagement and higher advertising and sponsorship                           YouTube and major rights holders such as the NFL, NBA,
revenues.                                                                         NHL and LaLiga and the launch of Discover and Stories
                                                                                  on Snapchat, highlights that it is now possible to monteise
                                                                                  short-form video on the largest platforms.

                                           WORL’S MOST POPULAR SPORTS TEAMS ON SOCIAL MEDIA

                    Barcelona              15.9                                                                       86.7   102.6

                  Real Madrid                  17                                                                     84.2   101.2

           Manchester United       5.97                                                              66.2     72.17

                      Chelsea      6.04                                            43.4      49.44

                      Arsenal       6.28                                  33.4      39.68

               Bayern Munich 2.32                                 31.9      34.22

                    Liverpool     4.75                        26.1        30.85

                        Milan    2.81                      24.5       27.31

                    LA Lakers     4.47                 21.2          25.9

                         PSG     2.54               20.5          23.04

              Manchester City    2.67               19.5       22.17
                                                                                                      Total
                 Chicago bulls   2.34             17.9        20.24
                                                                                                      Facebook
                  Miami Heat     3.15             16          19.5
                                                                                                      Twitter
                  Galatasaray       5.7    12.5        18.2

                  Fenerbahce      4.02 10.43        14.45

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BUILDING GLOBAL SPORTS BRANDS IN A DIGITAL WORLD - CONNECTING WITH MOBILE/SOCIAL AUDIENCES THROUGH NATIVE VIDEO - Grabyo
The ability to target fans using paid media campaigns
on social networks is also important from a commercial
perspective. Brand sponsors can beneit from a wave of
initial distribution for the content or campaign, driven by
the scale and organic reach of the rights holder whose
videos carry their advertising message. The reach of this
content can then be ampliied through paid media buying
across each target social platform. The resulting huge
volume of engagement is good for content owners too:
it builds following and reach, activates key sponsorship
and advertising messages, engages fans through organic,
earned and paid-media and enhances the value of future
campaigns.

In sport it is not only the rights holders that have a
substantial following on social media; the athletes
themselves have large and, more importantly, highly
engaged social audiences. Sports stars are able to
accelerate viral distribution and social discovery of content
through their unparalleled reach and superior engagement.
Each time an athlete shares a piece of content on
Facebook, many thousands (or even millions) of fans
consume and re-share their posts, generating rapid spikes
in real-time engagement, multiplying reach and extending
the lifetime of content. ‘Talent-as-a-channel’ is important
for the redistribution and ampliication of content owned
by rights holders, but also as a mechanism for the athlete’s
to share their own unique content with their audience,
building the scale of their fan base and supporting sponsor
activation and brand endorsements.

       Video engagement on social is higher than
       any other content type (such as text or video)
       therefore video content has a greater chance
       of surfacing in a newsfeed or timeline.

                                                SHARE OF NUMBER OF VIDEO POSTS 2014

                                                        Source: Grabyo Q1 2015

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Major sports stars are capable of building social fan bases
of tens of millions of consumers and social video provides
exciting new opportunities for expanding the range
and scope of sponsorship deals in this emerging digital
channel. Rights holders can guarantee millions of clip
views via their organic audience on social platforms.
The additional opportunity multiply this engagement
via talent- based distribution marks a signiicant new
commercial opportunity for talent and rights holders alike.
The inluence of stars is not only attractive to sponsors
wanting to leverage their athlete partnerships and activate
endorsement deals, but also for global brands wanting to
connect TV activity and sports sponsorship with social apps
around major live events.

       Given social video is now a key consideration
       for any integrated media campaign, the
       profound impact that talent can have on
       media discovery and distribution becomes                                          Fan engagement :
       enormously valuable to global brands.                                   • 20x higher than broadcasters
                                                                               • 3-5x higher than rights holders

                                                                   Yet this is just the beginning of social video evolution – just
                                                                   a handful of major rights holders are sharing content and
                                                                   the social video ecosystem continues to change.

                                                                   A signiicant percentage of the world’s population regularly
                                                                   checks into social apps. The native formats of these can
                                                                   be enhanced by the unparalleled social inluence of stars
                                                                   and clubs all of which can be used to accelerate media
                                                                   discovery and distribution.

                                                                   Real-time social video will play a very powerful role in
                                                                   building global fan bases and driving audience activation in
                                                                   years to come.

                                                                   Before we are able to fully leverage the value of social
                                                                   media as a key channel for video distribution and
                                          894k Views               engagement, there are a number of key questions that
                                            24k Likes              need to be answered:
                                       300 Comments

                                                                   •   What is the relationship between fan engagement and
                                                                       revenue in this new social video ecosystem?

                                                                   •   What are the opportunities for club’s and leagues to
                                                                       build new commercial models and revenue streams
SO WHAT ROLE COULD SOCIAL VIDEO PLAY IN                                using social video?
THE FUTURE FOR RIGHTS HOLDERS AND BRANDS?
                                                                   •   How do these emerging social video commercial
Video consumption on social platforms has grown                        opportunities integrate with traditional sponsorship
exponentially in the last twelve months, reaching scale                deals sold by the clubs and leagues?
which compares with the reach of traditional TV.
                                                                   •   What are the trade ofs in income and margin for clubs
                                                                       that choose to share content, and commercialise this
       Thanks to the power of native video and                         content, via social platforms rather than traditional
       social discovery on Facebook and Twitter,                       owned-and-operated properties?
       rights holders are now generating millions of
                                                                   •   Are there other opportunities to build value for the
       video views from individual real-time clips.
                                                                       club beyond digital sponsorships and advertising?

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NEW NATIVE VIDEO DELIVERY: VASTLY INCREASED
                                                                                    VIDEO VIEWS AND ENGAGEMENT:
SOCIAL VIDEO CASE STUDY: ATP MEDIA (TENNISTV)

As the combined oicial live video streaming service of the
ATP World Tour and WTA - men’s and women’s respective
governing bodies for tennis - TennisTV broadcasts more
than 2,000 live matches a year across website, mobile and
tablet.

Goals:

•   Create and share exciting moments from oicial tennis
    coverage in real-time
•   Drive social engagement through real-time video
•   Promote the TennisTV brand and oicial live streaming
    services

Strategy: TennisTV partnered with Grabyo in 2014 to
share the best rallies and most dazzling shots from the
courts on Facebook in real time.

How: During live tennis matches the editorial team at
TennisTV use Grabyo to instantly capture the most exciting
moments from oicial live streams as they happen and
share them in real time to their fans on Facebook. All
videos are served in the Facebook native video player with
auto-play functionality and integrated Call to Action (CTA)
to promote the TennisTV brand and drive viewers to watch
more oicial TennisTV content via web and connected
devices. In addition, Grabyo’s Facebook Video API                  gating.
integration enables TennisTV to take advantage of
features including content scheduling, expiration and geo-         Results: The combined power of social discovery, auto-play
                                                                   and the viral distribution and strong user engagement of
                                                                   Facebook native video led to:
          OLD NON-NATIVE VIDEO DELIVERY, LESS VIDEO
                  VIEWS AND ENGAGEMENT:                            •   95% increase in video views in less than 6 months
                                                                   •   44m users reached on Facebook in irst four months
                                                                       of 2015
                                                                   •   90m video impressions in Q1 2015
                                                                   •   Page likes up 72% YoY
                                                                   •   The average organic reach of a native video post was
                                                                       four times higher than a photo post
                                                                   •   Total post engagement for native video was 13x higher
                                                                       than for photos
                                                                   •   Total engagement for native video was more than
                                                                       3x higher than any other content type on TennisTV’s
                                                                       Facebook posts

                                                                   Moreover, the switch to using Facebook native video, rather
                                                                   than a third party player, has led to a signiicant increase in
                                                                   engagement and reach for TennisTV’s real-time video clips:

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REFERENCES

BBC (2015). Premier League in record £5.14bn TV rights
deal. [Online]. BBC Business. Avaialble from: http://www.
bbc.co.uk/news/business-31379128.

Facebook. Statistics. [Online]. Available from: http://
newsroom.fb.com/company-info/. (Accessed on 16th
September 2015).

Ericsson (2015). Ericsson Mobility Report: On the Pulse of
the Networked Society.

ESPN (2014). NBA extends television deals. [Online]
ESPN. Available from: http://espn.go.com/nba/story/_/
id/11652297/nba-extends-television-deals-espn-tnt.

Kemp, S. (2015). Digital, Social, and Mobile in APAC 2015.
We Are Social. Available from: http://www.slideshare.net/
wearesocialsg/digital-social-mobile-in-apac-in-2015.

Kemp, S. (2015). Digital, Social and Mobile Worldwide in
2015. We Are Social. Available from: http://wearesocial.net/
blog/2015/01/digital-social-mobile-worldwide-2015/.

Oreskovic, A. (2012). YouTube hits 4 billion daily video
views. [Online]. Reuters. Available from: http://www.
reuters.com/article/2012/01/23/us-google-youtube-
idUSTRE80M0TS20120123.

Peretti, J. (2015). Lessons from Buzzfeed. SXSW.

Rodriguez, S. (2015). Snapchat now gets 4 billion video
views per day and is challenging Facebook video.
[Online]. Business Insider. Available from: http://www.
businessinsider.com/snapchat-gets-4-billion-video-views-
per-day-2015-9?IR=T.

SocialBakers. (2015). FC Barcelona Facebook Statistics.
Available from: http://www.socialbakers.com/statistics/
facebook/pages/detail/197394889304-fc-barcelona.

The Economist (2015). Planet of the phones: The
smartphone is ubiquitous, addictive and transformative.

[Online]. Available from: http://www.economist.com/news/
leaders/21645180-smartphone-ubiquitous-addictive-and-
transformative-planet-phones.

The Guardian (2015). Premier League top of the rich list
with record income of £3.26bn. [Online]. Available from:
http://www.theguardian.com/football/2015/jun/04/premier-
league-tv-income-la-liga-deloitte.

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