FIFA undervaluing online World Cup rights as global audiences pay for sports content online.
May 26, 2010
LONDON, (May 26 2010) - With kick off of the football World Cup less than a month away, the latest research from the Global Web Index (www.globalwebindex.net), a collaboration between online market research provider Lightspeed Research and Trendstream, demonstrates the massive potential for generating revenue from online sports rights.The survey of 16,000 internet users includes people in many of the countries who will be taking part in the tournament in South Africa including the USA, England, Mexico and South Korea.
Massive potential for streaming online
This year’s football World Cup will be the first where mass market online video streaming is a reality across the globe. Typically online rights are bundled with the TV deal as an ‘add on’, but the Global Web Index demonstrates that these rights are seriously undervalued, with FIFA potentially missing out on millions in revenue. The research shows there is already massive take-up of sports highlights and full length programming online (Chart 1). The Chinese lead the way where thanks to video platforms such as Youku and Tudou that carry full length programming as standard, 35% had watched full length programmers online in the last month and 27% had watched sports highlights. Other countries are not far behind.
Won’t pay, will pay
More crucially there is huge, untapped potential for monetizing streamed sport content. When asked what method of accessing live sports streams, there are very interesting differences in behaviour by country (Chart 2). Sports fans in India, South Korea, China, Mexico and Italy are most likely to choose to pay for their fix. Indians are most likely to pay to enjoy streamed sports without advertising (37%) followed by South Koreans (32%). In direct comparison, those living in the US and European markets in the study – prefer free access, with ads. However there is still a very large interest in paying, and one that if monetized could be far more lucrative than the advertising revenue. It is a similar picture for watching clips of sporting highlights.
“This research shows that online football rights for the 2010 World Cup are massively undervalued” said Tom Smith Director of Global Web Index. “There is proven appetite for streaming all sports online and more importantly, consumers are increasingly paying for it. There’s a whole new generation of younger consumers, as well as specific markets like China and South Korea where paying for sports online is quickly becoming the norm. This research shows that the days when online sports rights are thrown in as a sweetener with the TV rights may be about to be shown the red card. “
Ends
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Geraldine Gitel, PR Consultant – Greenfields Communications
ggitel@greenfieldscommunications.com Tel: + 44 (0) 07917 855380
Ralph Risk, Marketing Director Europe – Lightspeed Research
Tel office +44 (0)20 7896 1950 mobile +44 (0)787 650 7689 rrisk@lightspeedresearch.com
About Global Web Index
Trendstream created the Global Web Index to derive insights on the global impact of web usage and social web involvement. GWI is a collaboration between Trendstream and panel provider Lightspeed Research. The research programme interviews 16,000 web users twice a year in 16 markets to provide a unique perspective on web behaviour and its impact on consumer behaviour, technology involvement, purchasing, content consumption, the effectiveness of marketing communications and the role for brands. It provides detailed insight into how web behaviour and the value of consumer driven communications differs by country, category and different consumer segments. www.globalwebindex.net
About Lightspeed Research
Lightspeed Research delivers valuable data to help clients make informed business decisions. With proprietary online panels throughout the world, our verified, engaged, and deeply profiled survey respondents can support research studies that vary in scope and complexity. Lightspeed Research’s expert Client Operations Team offers data collection services including survey design, sample management, programming, and reporting. The company has offices throughout the United States, Europe, and Asia Pacific. Lightspeed Research is part of Kantar, the information insight and consultancy division of WPP. For more information, please visit www.lightspeedresearch.com.
About Trendstream
Trendstream is a research consultancy dedicated to understanding the global impact of technology change. The company produces primary and secondary research to help clients understand the impact of the web, social technologies, mobile and consumer electronics and the resulting implications for consumer behaviour, marketing communications, content and business models. The company also advises clients on social web strategy, business models and monetising content online.
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