Sports Fans Still Glued to TV

The rise of the internet does not seem to be nudging sports fans off of their couches. Knowing the result and watching the action unfold is part of the culture of sports. The single biggest entertainment vehicle in the country, and the companies with the most advertising bargaining power in the US are sports leagues. Any big game that the country has marked on its national calendar spells big bucks for TV networks and advertisers. They can justify top dollar commercial space and spending by knowing how many pairs of eyeballs are going to be fixated on a particular game at any time. It is in the best interest of all parties involved to keep TV networks from losing a grip on sports fans. Internet streaming is secondary. Of course, there are people abroad who consume US sports and people who don't have access to traditional TVs who stream games, but this is not the primary audience of a game. The majority of Americans are still tuning into their HD flatscreen TVs when game time starts. The same TV networks have found a way to monetize the internet streamers as well. In order to stream most games, you have to be subscribed to that particular network's TV package.

It does not seem like the market, as a whole, is ready to accept moving away from traditional TV just yet. Andy Vuong from the Denver Post supports this claim in a recent article that found the nation's pay-TV companies grew subscribers in the 4th quarter of 2012 based on a report by SNL Kagan. The subscription bump resulted in the pay-TV companies posting a gain for 2012 and avoiding their first full-year drop. The study by SNL Kagan, cited by the Denver Post, noted that pay-TV providers added 51,000 new subscribers to total 100.4 million subscribers in total. They also estimated that cable companies finished with 56.4 million subscribers, 34.1 million for satellite, and 9.9 million for telecom video services. These results indicate that consumers still find value in the content available on pay-TV services. Consumers have become accustomed to watching a program, sitting through commercials, and having the freedom to browse with their beloved remotes. 

As an avid sports fan myself, I've tried the stream, but it gives me more anxiety than watching the game itself sometimes. For one, I am nervous about the stability of my connection and having to deal with a choppy stream. Two, I really want a high quality picture when I am watching my favorite team. Lastly, I can't stand to know that I am at least 30 seconds behind the live game. The worst thing that can happen in this scenario is to have one of your friends call you about the big play that was made when you're still waiting for the ball to be inbounded after the last timeout. 

An article from Yahoo! Sports quoted Ed Desser from Desser Sports Media saying, "Many people insist on watching sporting events live." The article goes on to say:

And "if you want to get live sports, you pretty much have to buy the video packages from cable and satellite operators," says Desser. He notes that while some streaming subscriptions provide access to television shows and movies, these streaming options are limited in live sports coverage.

But what's so great about live coverage, anyways? Social interaction. Whether it's trash-talking, commiserating, or celebrating, socializing is an integral part of watching games, matches, and competitions.

The social interaction part is a critical piece to the whole puzzle. If fans are experiencing the game at different times, some of the fun and appeal is lost. What does this result in? Making sure that everyone is on the same page and you aren't behind the Eight Ball when it comes to the action unfolding live (aka watch it on TV). I think that there is something deeper in this too. Traditional TV is somewhat cultural as well. Throwing on a game and watching it with family and friends can be a bonding experience.

The Yahoo! Sports article also cites a Consumer Reports article that states, "Broadcasters and TV providers are giving customers more ways to view the content they're already paying for," To further this point, the internet is seen as a substitute for traditional TV. Living in Atlanta but want to watch your hometown team in Dallas? You can do that with a subscription to the right cable TV package. It provides you with a tremendous flexibility. If you're on the road, or can't access your normal TV at home, you can use the internet on your smartphone, laptop, or tablet to access your sports subscription package as a last resort to catch the game you're trying to watch. The advent of these types of subscriptions and sports packages has slowed the Cord Cutting movement because people have not come to rely on internet to get their TV content. Their TV package works just fine, it is reliable, and they can watch it on a big screen with HD quality picture. Worst comes to worst, a mobile device works just fine. 

Desser states that, "Sports has become one of the primary reasons for people to keep cable and satellite packages," and as long as sports is a centerpiece in American culture, cutting the cord for a sports fan is not happening any time soon. 

Shawn

Source: http://homes.yahoo.com/news/sports-fans-need-cable-001155500.html

Cutting the Cord: The Introduction

If you're like me, you've probably spent a lot of time caught up (or catching up) in this whirlwind of technology. Wireless technology has infiltrated products we never thought they could (pill bottles, clothing, watches, wristbands, etc.) A phone's voice capacity is often seen as a last resort of a communication if our intended recipient is not responding to our texts. We have a laptop, tablet, phone, headphones, and bluetooth as standard office equipment. For some, it's overwhelming, and for others, it's exciting.  In my generation, the Internet has been the single biggest driving force of change and impact. I stumbled across the below clip that was made a year after my youngest brother was born (1994).

I showed my brother this clip, and he was speechless. My brother is a freshman in college right now, and he represents a wave of kids who have never grown up a day without access to the internet. To further that, the elementary school kids who grow up today, in the US at least, will never know what painstaking agony a 56k modem would cause an eager internet user every time she signed on. They will never hear the scrambled sound you heard when you called from your landline to your friend's house and couldn't get through. You justified it to yourself by saying, "No problem, they're just being flattered by the iconic AOL phrase of "You've Got Mail!" for a few minutes. I'll try to call them back later." Now, if it goes straight to voicemail, they're ignoring you, on a flight, or their battery died. It's changed dramatically, and it will continue to change. We're standing at the foot of a mountain that we can't see the peak of yet.

The purpose of my writing is to examine how the internet and TV in conjunction are changing the way we live, the way it impacts companies, and the way companies do business because the internet is something we've come to rely on. We feel stuck in the mud without it. I'm coupling my thoughts with an invention that some people rely on every day as well, television. Two of the most revolutionary technologies of the last century collide in today's world in a way that changes how we consume and interact with both technologies, and furthermore, how businesses interact with us as consumers. We have traditionally viewed both TV and the internet as two separate mediums, but their fusion has forced us and companies to adapt.

The issue of how TV networks and cable networks reach consumers in the Digital Age is intriguing because examining and understanding how we are affected today may give us a glimpse into what we can do in the future. If we can grasp this understanding maybe we can drive this further and faster than we think it can go.

Shawn