Mobile Data Consumption Set to Explode- Will Sports Cash in?

A recent report is highlighting the massive growth that is expected in mobile data consumption as users of smartphones increasingly use their devices for watching video, playing games, interacting with a variety of social media and other uses.

According a report from Informa Telecoms & Media, by the year 2016 mobile users will consume eight times more social media than currently, downloading 14 times as many megabytes of applications and browsing will increase six fold.

The two driving factors will be the increased use of smartphones, which currently are roughly half the handsets sold and the increase in overall mobile users. Not listed in the report but most likely also a driving factor is faster networks.

This presents a major opportunity not only for sports teams and leagues but also for the growing ecosystem of app developers involved in this space, from office league sponsored developments such as MLB At Bat 12 to sports aggregation news readers such as Recapp. With smartphones increasing in storage capacity app developers can also make larger, fuller featured products to grab users attention.

Currently mobile users can get access to a growing number of live sporting events including a wide range of college football, Major League Baseball, National Football League, National Hockey League and Soccer matches are all available, however they are often limited to a single carrier of you need to subscribe to the correct cable network.

If sports continue this path it seems that they will be missing out on a larger opportunity. It is nice that Verizon has hockey, but I don’t have Verizon. If I want NFL and hockey do I need two phones? To really cash in the leagues will need to come up with something other than exclusive deals with a single carrier, otherwise they are intentionally missing a huge segment of the market.

Pew Research says sports viewing on smartphones, iPads has room to grow

Nonpartisan fact tank Pew Research issued Tuesday Oct. 4 a report that said 20 percent of U.S. adults get sports scores and updates on smartphones or iPads, but only a small percent of Americans use social networks as their primary source of information, sports or otherwise. The research indicates that sports viewing on mobile devices and sports social media is a market primed for growth, but that it is also early enough for new competitors to get into the fray.

Sports information trailed weather (36%), locating restaurants or local business (31%) and news (25%) as a smartphone activity, but outpaced community news alerts (13%) and news via smartphone applications (11%) in the Pew Research study. A total of 16 activities were measured, and 2,251 adults age 18 or older responded.

The report dovetails with research from eMarketer Inc., which reported Sept. 15 that the sports audience must grow in order for sports content providers to expand the number of mobile subscription and ad-supported online offerings to viewers. eMarketer said the sports audience is perfect for mobile applications because they are loyal, passionate and large in number.

“The situation will change dramatically as more fans assimilate streaming into their media consumption routines, which, in turn, will compel leagues, broadcasters and marketers to make better use of digital platforms to reach their target audiences,” said eMarketer senior analyst Paul Verna.

EMarketer said 2010 digital revenues for the top U.S. Sports leagues was $1.295 billion. Courtesy of eMarketer, here is how the NFL, NBA, MLB and the NHL measured up: 

Source eMarketer.com, by permission

 

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