Value of Digital Sports rights predicted to grow by 10% over next five years

A new report from PricewaterhouseCoopers suggests that the value of digital sports rights will grow by 9.7% over the next five years, ahead of overall sports industry growth of 6.4% over the same period.
The fourth edition of PwC Sports Survey gathered the views of 580 industry leaders from 49 countries on growth expectations and a wide range of strategic and organisational topics.
Revealing that digital media rights are expected to be the key driver for the growth of the sport industry over the next five years, the paper revealed that sports industry leaders expect the sector’s growth to continue at a healthy annual rate of 6.4% in the next three to five years, albeit below the 7.4% seen in the past three to five years.
The report also reveals that while the digital sector is expected to achieve growth of up to 9.7%, traditional media streams will experience ‘much lower growth rates’ during the same period, which are estimated to be at no more than 4.1%.
Enthusiastic on the unrealised potential of digital, the PwC paper does cast doubts as to whether sports organisations can benefit from online growth, with concerns that the major technology firms will instead be the ones to reap the benefits as both gatekeepers and producers of content.
Significantly when compared to last year, this year’s edition of the report sees respondents predicting slightly lower growth rates overall and across revenue streams over the coming years, a potential area of concern and uncertainty given the business impact of changing consumption behaviour of younger generations.
While over-the-top (OTT) platforms look set to play a role in the growth of digital rights, the PwC study suggests the ‘hype’ of a ‘commercial silver bullet’ for rights holders provided by direct-to-consumers offerings is over.
This is due to doubts over quality and long-term interest, as cited by the majority of those surveyed, who also rated the current OTT space as being below expectations or disappointing.
Related Articles
20th September 2019 - WTTC and Deloitte unveil initiative to ensure tourism success during the digital revolution
9th August 2019 - Poll shows multichannel marketing now ‘essential’ for sport brands
17th July 2019 - Industry innovations to get boost through Australia Sports Technology Week
9th July 2019 - Sport governing bodies need to diversify beyond pay-TV to grow audiences
24th May 2019 - Marina Go named first chair of Suncorp Super Netball Commission
6th March 2019 - Melbourne Cricket Club announce leadership changes
15th November 2018 - Sydney FC Chief Executive stresses vital role of fans
12th September 2018 - Basketball Australia transfers online activities to new digital home
12th August 2018 - PwC report says Sydney is ‘no fun’ for residents
4th June 2018 - NRL welcomes strong initial returns on digital investment
11th May 2018 - FFA looks to enhance fan engagement with new digital strategy partnership
17th April 2017 - Increasing recognition of the value of stadium advertising
7th July 2016 - New appointment marks further PMY Group expansion
13th December 2011 - PwC predict global sports revenues to reach US$145.3 billion
29th May 2010 - PwC predicts strong recovery for sports industry