What Does Foundational Success Look Like for Sports Streamers?
Delivering live sports in the direct-to-consumer (D2C) era isn't just about streaming content—it’s about mastering and harmonizing that complex blend of technology, scalability, and user expectations. Whether the event is the Super Bowl or an international cricket match, live events now attract massive global audiences who demand seamless, real-time access. But what does it take to succeed in this high-stakes arena?
At IBC 2024, executives from Google Cloud, Paramount and Evergent shared the stage to swap stories and insights on the evolving D2C landscape. Those tales revealed the pivotal technical challenges, successes, and strategic decisions required to deliver live sports effectively.
Here's what we learned.
1. Scalability Isn’t Optional—It’s Essential
Evergent’s Founder & CEO, Vijay Sajja, highlighted the extreme scalability demands of live sports, citing examples such as the global audience that intently follows the games and activities of the NBA. “Two-thirds of NBA fans are outside the U.S., across 180 countries,” he noted. That type of global reach, Sajja highlighted, requires platforms to handle surges in traffic during key moments, such as game starts, while also accommodating localized preferences.
For Phil Wiser, the Executive Vice President and Global CTO of Paramount, a massive undertaking like the Super Bowl was described as a “make-or-break” event for them. “The Super Bowl is the biggest driver of new subscribers out of anything we do,” he shared, underscoring how critical these moments are. Paramount’s infrastructure must handle millions of authentications and sign-ups within a few minutes before the game. Learning from previous peaks, Paramount, which streamed the 2024 Super Bowl, has refined its registration systems to ensure flawless execution during these critical moments.
The sports streaming landscape is forever changed by cloud-based platform offerings and other such innovations, per Anshul Kapoor, Head of Media & Games Market Development at Google Cloud. By leveraging the cloud’s scalability and security, he said, providers can meet consumer expectations for seamless 4K live sports streaming and personalized content delivery.
Kapoor used Paramount’s success as an example of starting with the right foundation: “The customers who succeed year after year are those who plan for innovation and scale from the beginning.”
2. Flexibility Drives Profitability
Kapoor talked about today’s overall mindset transition from ‘growth at all costs’ to ‘profitable growth’ and the outsized role that business model possibilities play in that change. “It used to be you’re ad-funded or subscription, but now you could be both, and you could have transaction services on top of it,” he said, in describing how customers are able to experiment with different business models.
Hybrid monetization models—blending subscription, ad-supported, and pay-per-view options—are redefining live sports delivery. Sajja discussed Evergent’s work with Sony, showcasing a decade-long journey from ad-supported streaming to a hybrid model incorporating subscriptions, pay-per-view, and live sports.
The ability to adapt pricing and offerings in real-time has proven essential. “Sony found ways to synergistically feed these products into each other,” Sajja said, illustrating how platforms can transition users from free content to pay-per-view events and long-term subscriptions. This flexibility not only maximizes revenue but also enhances retention.
3. Peak Moments Define Platforms
The Super Bowl’s role in Paramount’s strategy has been a masterclass in leveraging peak moments for growth. “When the Super Bowl pregame starts, our ramp-up in authentications and sign-ups is immense,” Wiser explained during the panel session. Paramount, he said, has tailored its systems to excel during these surges, recognizing that even a brief failure in these moments can lead to lost subscribers and significant revenue impact.
For Evergent, scaling platforms for peak sports events has been a recurring success. Sajja highlighted how scaling platforms for peak sports events has been a recurring success at Evergent. This is possible, he noted, by flexible backend systems that allow for rapid customization based on regional preferences. That flexibility ensures a smooth user experience whether the event is a cricket match in India or basketball in Jordan.
4. Streaming Tech: Moving Toward Commoditization
Wiser reflected on how early streaming platforms invested heavily in custom-built technology but are now shifting toward commoditized solutions. “Streaming is realizing that no single media company can build all the technology themselves,” he said. For Paramount, collaborating with industry-leading partners has reduced costs and enabled faster adaptation to market demands.
This approach has been pivotal for live sports, where pre-built solutions streamline workflows, reduce latency, and ensure high-quality playback for millions of simultaneous viewers.
5. Data’s Role: Balancing Insights and Execution
In the aforementioned move toward a profitability mindset, Kapoor cited how Google Cloud is seeing the increased emphasis on data in decision-making, including customers “having to make decisions using data, knowing which part of the business is doing well, what piece of content should be released on ad-funded versus subscription versus transaction, and when you should do it.”
Wiser cautioned that while data is a critical tool for personalization, there could be a tendency toward over-reliance. “Data is oversold...if you don’t have good content, they’re going to churn,” he said. For Paramount, data is used to identify and engage fans of specific sports like the NFL, ensuring tailored content delivery. However, Wiser stressed that great content remains the ultimate retention driver.
The use of data by Evergent in live sports, per Sajja, has highlighted another key learning: personalization at scale. By understanding what resonates with audiences in different regions, platforms can create micro-targeted offers and experiences that keep users engaged.
Learning From Success: Building for the Future
The executives on the panel offered a roadmap for success based on their experiences:
- Plan for growth: Platforms, as all executives stressed on multiple occasions, must prepare for peak moments and global scalability from the outset.
- Prioritize user experience: Seamless authentication, reliable streaming, and tailored content delivery are essential to winning and retaining viewers.
- Leverage hybrid models: Offering diverse monetization options—ads, subscriptions, and pay-per-view—ensures platforms can cater to a wide range of audience preferences.
- Collaborate smartly: By adopting commoditized technology and leveraging third-party expertise, platforms can focus on what they do best: delivering great content.
You can view the IBC 2024 session, “Under the Hood of D2C Business Model Transformation: The Role of Hybrid Monetization, the Cloud and Generative AI” in its entirety here.
The Stakes Are Higher Than Ever
In an era where buffering screens are intolerable and competition is fierce, delivering live sports successfully requires both technical excellence and strategic foresight. Scalability, flexibility, and real-time responsiveness are non-negotiables. As the D2C market matures, only those who get these fundamentals right will thrive.
For platforms navigating this space, the message is clear: plan for success, leverage scalable technologies and never lose sight of the moments that matter most to your audience. To learn more about how the full-stack monetization solutions and strategies of Evergent can help set your sports streaming operation up for success, set up some time with one of our monetization experts today.