One in four US subscribers will sign up to a new streaming service to watch the Olympics

Rhea-AI Summary

According to a new report by Bango, 29% of US subscribers plan to sign up for a new streaming service to watch the Olympic Games this July, with this figure rising to 66% among current SportsVOD subscribers. Peacock, which holds the rights to stream the Paris Olympics, stands to benefit. The average SportsVOD user subscribes to seven services and spends $1,440 annually, compared to the US average of $77 per month. Despite the high market value, fragmentation in sports streaming services is driving demand for centralized platforms. Over half of SportsVOD users find multiple subscriptions unaffordable, and 87% want a single content hub. This fragmentation has led to a rise in piracy, with 55% of sports streamers using illegal services. ESPN, Fox, and WB Discovery are working on a combined sports streaming platform to address these issues. Bango's report highlights the potential of Super Bundling, with 70% of SportsVOD users wanting all-in-one packages from their cell phone providers, and 76% willing to pay more for such services.

Positive

• 29% of US subscribers plan to sign up for a new streaming service for the Olympics.
• 66% of current SportsVOD subscribers will add new services for the Olympics.
• Peacock holds streaming rights for the Paris Olympics, likely increasing its subscriber base.
• SportsVOD users have higher average subscriptions (seven) compared to the US average (five).
• The average annual spending per SportsVOD user is $1,440, significantly higher than the US average.
• 70% of SportsVOD users want all-in-one packages from cell phone providers.
• 76% of SportsVOD users are willing to pay more for centralized services.

Negative

• Over half of SportsVOD users find multiple subscriptions unaffordable.
• 73% of SportsVOD users believe there are too many subscription services.
• 55% of sports streamers resort to piracy due to lack of centralized services.
• Fragmentation in sports streaming drives demand for more centralized platforms.

New report predicts an Olympic streaming boom, with SportsVOD proving the real MVP in the streaming wars

SAN JOSE, Calif., May 14, 2024 (GLOBE NEWSWIRE) -- One in four American subscribers (29%) will sign up to a new streaming service to watch the Olympic Games this July. For those who already pay for at least one ‘SportsVOD’ streaming platform, this figure jumps to a massive 66%.

That’s according to the latest research from subscription Super Bundling provider Bango, released in its new Going for Gold report.

The research, which calls on data from 2,000 SportsVOD subscription users and 3,000 general subscribers, could be good news for NBCUniversal’s Peacock platform, which secured the rights to stream the Paris Olympic Games this July.

But it’s not just Peacock that will benefit, Bango’s report also points to a booming SportsVOD sector across the USA.

Not only do SportsVOD subscribers typically adopt more subscriptions — 7 per person compared to a US average of 5 — they’re also willing to pay significantly more for those services.

According to Bango’s analysis, the average SportsVOD subscriber pays a massive $1,440 per year for all of their subscription services — $120 per month. In contrast, the average US subscriber pays just $77 per month (66% less).

Despite this high market value however, Bango’s analysis also points to challenges in the booming sports streaming space. According to the report, a combination of diverse broadcasting rights, disjointed platforms, and rising prices is driving demand for more centralized streaming services.

Over half of SportsVOD subscribers say they can’t afford all the subscriptions they want, while 73% agree that there are simply too many different subscription services needed to cover the sports they’re interested in.

Given this fragmentation, 87% of those paying for SportsVOD subscriptions are calling for a single 'content hub’ to centralize all of their sports subscriptions (and more) into one place. Without this sort of all-in-one solution, 55% of sports streamers admit to using pirate streaming services to access all of their favorite content in one place.

As Paul Larbey, CEO at Bango explains, “When half of all sports fans admit to online piracy, you know something’s gone wrong. Clearly there’s a huge demand for sports streaming, but the current lack of centralization is undermining this incredibly valuable market.

“This fragmentation means that new alliances are forming among competitors. The combined effort by ESPN, Fox, and WB Discovery to build a single sports streaming platform is just one example, but we predict other collaborations will continue to define this space.”

In terms of what this collaboration could look like, Bango’s report points to the rise of Super Bundling, with a growing number of sports fans combining different sports packages through a third-party such as their wireless or cell phone provider. In fact, Bango’s research shows that 70% of SportsVOD subscribers want their cell phone provider to offer an all-in-one subscription platform. Three quarters (76%) even say they’d pay a higher monthly bill if this service was included.

As Paul Larbey comments, “Sports fans want choice. They are willing to pay to watch the content they are interested in, and the reality is that this content will come from different providers. As a result, sports fans want to simplify this arrangement through easy billing and control of subscriptions. And they want flexibility and the ability to build their own bundles. 

“Super Bundling finally brings that level of flexibility to the sports industry by collating disjointed services into one singular platform. Already, Verizon is bringing multiple SportsVOD services under one roof, including the NBA and NFL+, as well as sporting news subscriptions like The Athletic. This approach puts the subscriber first, creating the opportunity for people to mix and match. That's good news for sports fans and will bring more paid subscribers to the sports broadcasting industry as a whole.”

About Bango
Bango enables content providers to reach more paying customers through global partnerships. Bango revolutionized the monetization of digital content and services, by opening-up online payments to mobile phone users worldwide. Today, the Digital Vending Machine® is driving the rapid growth of the subscriptions economy, powering choice and control for subscribers.

The world's largest content providers, including Amazon, Google and Microsoft trust Bango technology to reach subscribers everywhere.

Bango, where people subscribe. For more information, visit www.bango.com

Media contact
Luke Proctor / Tina Sang
Wildfire
bango@wildfirepr.com

FAQ

What percentage of US subscribers plan to sign up for a new streaming service for the Olympics?

29% of US subscribers plan to sign up for a new streaming service to watch the Olympic Games this July.

How many SportsVOD subscribers are willing to add new services for the Olympics?

66% of current SportsVOD subscribers will add new services to watch the Olympic Games.

Which platform has secured the rights to stream the Paris Olympics?

Peacock has secured the rights to stream the Paris Olympic Games in July.

What is the average annual spending of a SportsVOD user on subscriptions?

The average annual spending of a SportsVOD user on subscriptions is $1,440.

How many subscription services does the average SportsVOD user have?

The average SportsVOD user subscribes to seven different services.

What percentage of SportsVOD users find multiple subscriptions unaffordable?

Over half of SportsVOD users, specifically 55%, find multiple subscriptions unaffordable.

What do SportsVOD users want to centralize their subscriptions?

87% of SportsVOD users want a single content hub to centralize all their sports subscriptions.

What percentage of SportsVOD users are turning to piracy for content?

55% of sports streamers admit to using pirate streaming services to access their favorite content.

Which companies are working on a combined sports streaming platform?

ESPN, Fox, and WB Discovery are collaborating to build a combined sports streaming platform.

What is the concept of Super Bundling in sports streaming?

Super Bundling involves combining different sports packages through a third-party provider to centralize subscriptions.