The global sports industry is on the brink of “unprecedented commercial growth” as digital technology innovation kicks in, according to a new report.
Broadcasters, rights holders and sports organisations are set to see a huge boost in revenues thanks to the rise of new tech such as streaming platforms, esports and virtual reality (VR), a report by Tata Communications has stated.
The company said the new innovations are becoming a key driving force behind sports revenue alongside media rights, attendance, sponsorship and merchandise.
The technology can help expand a sport’s global audience and boost engagement among fans, creating a more attractive environment for advertising, Tata said.
“This report demonstrates that 2019 can be a defining tipping point for the sports industry,” said Mehul Kapadia, global head of marketing at Tata Communications.
“Digital technologies are kick-starting a new era of fan engagement, and it’s going to be fascinating to see where the journey takes us.”
The report, which features insights from Formula 1, Moto GP and European Tour, comes amid a growing shift in viewing habits among sports fans.
Last year London-based streaming service Dazn unveiled a $1bn (£778m) deal to live-stream boxing matches in a huge shake-up of the traditional pay-per-view model.
Marcus Parnwell, director of product, new markets and strategic initiatives at Dazn, said the move had turned the sport into a “collective fan experience which can be shared and augmented through over-the-top (OTT) broadcasting, live-streaming and social media”.
The streaming service has also secured deals to televise football matches as it looks to pull viewers away from broadcasters such as Sky and BT.