Telecom Business Segments Analysis

Part
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Part
01

Business Managed WiFi Services: Overview

Top players that offer business managed Wi-Fi services are AT&T, Verizon, and Charter Communications. These services have a growing demand in the market due to the higher rate of adoption by companies. It is a very cost-effective service. The requested information has been entered in the spreadsheet.

TOP TELECOM PLAYERS OFFERING BUSINESS MANAGED WI-FI SERVICES

BENEFITS OF PURCHASING BUSINESS MANAGED WI-FI SERVICES

  • It increases security over the internal network of the business and protects the company from external and internal data leaks.
  • It operates at peak productivity with a managed Wi-Fi solution. This helps the business to focus on other pressing business matters and increase productivity.

KEY FACTORS THAT PROMPT THE TELECOMMUNICATION INDUSTRY TO OFFER BUSINESS MANAGED WI-FI SERVICES

  • There is a growing demand for high-speed and widespread network coverage and an increasing adoption rate of managed Wi-Fi solutions.
  • Wi-Fi, as a service market is projected to grow from $2.1B in 2018 to $6.1B by 2023 and the managed WI-FI services segment, is expected to lead the Wi-Fi as a service market.
  • It provides opportunities for various growth strategies such as partnerships, agreements, and collaborations, new product launches, product enhancements, expansions, and acquisitions to expand their presence in the market.

Research Strategy

Based on the request first, we looked into telecommunication companies with the biggest revenues that offer business managed Wi-Fi services and then we selected 3 top companies. Considering the benefits of using the managed Wi-Fi services we were able to find direct sources for the request. We were not able to find a direct article or a report which mentioned the factors for key players to enter the managed services field but we were able to find separate articles and reports that mention the factors and opportunities for key players to enter the market.


Part
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Part
02

Business Managed WiFi Services: Competitive Landscape

AT&T believes businesses should have managed WiFi because of risk management, end-user technical support, and customer engagement. The company uses a managed cloud solution which is robust and includes analytics and is operable on public or private networks. Spectrum's business managed Wi-Fi is a turnkey solution with reliability and security for fiber internet access, Ethernet, managed SD-WAN, wavelengths, managed Wi-Fi, managed router, and managed security. Verizon has received recognition from Gartner for its products and services as "a leader in the magic quadrant for network services, global".

BUSINESS MANAGED WI-FI SERVICES FOR AT&T, VERIZON, AND SPECTRUM

OVERVIEW
  • AT&T believes businesses should have managed WiFi because of risk management, end-user technical support, and customer engagement. It uses a managed cloud solution which is robust and includes analytics, and is operable on public or private networks.
  • The features and options provided include AT&T Business Wi-Fi, AT&T Wi-Fi Small Site, AT&T Business Wif-Fi with Cisco Meraki, and AT&T Managed LAN Service which deploys easily, is secure, scales effortlessly, and allows users to gain insight.
  • Other AT&T products include a dedicated internet, high-speed internet for small business and MPLS VPN.
  • Verizon's business managed Wi-Fi services include Managed WAN, Managed SD-WAN, Managed WAN Optimization Services, Managed Wireless LAN, Virtual Network Services, Software Defined Perimeter and Digital Advisory Services. All of these are provided by time tested expertise and customer data analytics which reduce training time for IT staff and provide a secured, virtual network.
  • The products offered by Verizon include Security Monitoring Operations, VoIP Services, and Business Connection which are done through enhanced connectivity collaborations.
  • Spectrum's business managed Wi-Fi is a turnkey solution with reliability and security for fiber internet access, Ethernet, managed SD-WAN, wavelengths, managed Wi-Fi, managed router, and managed security.
  • This Wi-Fi solution is seamless, has online management tools, 24/7 monitoring and is managed end-to-end and its features are said to be fast, reliable, flexible, secure, monitored and managed.
  • Spectrum Enterprise offers "fiber-optic Internet services, video solutions, voice technology, wavelength division multiplexing, and unified communications solutions that help enterprises solve technological challenges and achieve greater success."

BRAND POSITIONING

AT&T
  • AT&T provides business managed Wi-Fi services for as low as $60 per month for high-speed internet and offers customers (including small businesses) products that can be used with multiple carriers with 24/7 support provided.
  • To attract more customers and provide better Wi-Fi services, AT&T has introduced 5G in Business which will be based on Mobile 5G, Fixed Wireless, and Edge Computing.
  • Some of the company's messaging include " "We've got connections", "We also opened a space within in our AT&T Foundry in Plano, Texas specifically dedicated to prototyping solutions for industry verticals", and "We’re the first to bring everything together for businesses."
  • AT&T promotes its pride in innovativeness and speaks with confidence.

VERIZON
  • Verizon has received recognition from Gartner for its products and services as "a leader in the Magic Quadrant for Network Services, Global."
  • To gain the confidence of customers, Verizon offers 24/7 security operations center worldwide that fights against threats.
  • The company has offered different portfolios of their products that can pull more customers who have different needs. These include network, mobility, security, business communications, customer experience services, and the Internet of things.
  • Verizon places their phone contact information at the top of the page where it is easy to see and more likely to prompt consumers.
  • Some of the company's messaging include "More awards. More reliability. From the network that gives you more", and "We’ll help you identify disruptors and desired outcomes, and build the right road map to accelerate your goals."
  • Verizon speaks of the company with confidence, showing reliability, and providing value for customers.
  • Some of Verizon's customers are businesses.

CHARTER COMMUNICATIONS (SPECTRUM)
  • Spectrum promises to provide consistency in a fully managed solution at a low price.
  • The company engages the customers in the decision process by allowing them to calculate their desired/ required bandwidth.
  • Utilizing Spectrum's business managed Wi-Fi products/ services reduce cost, improve risk management, and gives IT teams more time to work on strategies.
  • Some of the company's messaging include "Focus on their experience, we'll manage the WiFi" and "We’re excited to learn more about how we can partner with you."
  • Spectrum speaks of itself as customer-friendly, willing and able for partnerships, and having good management capabilities.

MARKETING CHANNELS

AT&T
  • AT&T advertises its business managed Wi-Fi on several social media platforms including Facebook, Twitter, YouTube, Instagram, and LinkedIn.
  • The company also targets small businesses that have not yet installed or offered Wi-Fi services to their customers. Another marketing channel that AT&T relies on include Direct Mail.
  • AT&T also provides several forums for consumers to have discussions, learn and share their experiences with others and this serves as a form of marketing as well.
VERIZON
  • Verizon does some of its marketing through social media platforms like LinkedIn, Twitter, and YouTube as well as through the company's website.
  • Verizon's website visitors have the option of sharing the information about products/ services and this can be done through the same social media pages with the inclusion of Facebook.
  • There is also the option of using direct mail or simply copying the link.
CHARTER COMMUNICATIONS (SPECTRUM)

  • Spectrum does some of its marketing through social media platforms such as Twitter, YouTube, Facebook and LinkedIn in addition to the company's website.
  • There is also the option of making prints available to customers by the click of a button and direct mail.
  • The company also provides the option of contacting a sales representative directly or a customer can request to be contacted through a separate customer support option.

  • Kindly find more details in the attached spreadsheet.
Part
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Part
03

Business Surveillance Services: Overview

Three of the top telecom players that offer surveillance services to businesses in the US are Verizon, Comcast, and Sprint Corporation.

TOP TELECOM PLAYERS OFFERING SURVEILLANCE SERVICES TO BUSINESSES


DIFFERENCES BETWEEN THE SURVEILLANCE SERVICES OFFERED BY TELECOMS AND SERVICES OFFERED BY TRADITIONAL SURVEILLANCE COMPANIES

  • When it comes to telecom surveillance systems versus traditional surveillance systems, one of the main differences is that telecom solutions might cost less, especially if the customer already has an existing telecommunications package.
  • Because telecoms offer a wide variety of services based on different technologies, and the businesses that they work with have different needs and priorities, their sales process can seem slow and difficult.
  • They may seem like the better solution when compared to traditional security solutions.
  • However, when compared to newer IT-based competitors, they are behind in terms of technical capabilities and expertise.
  • Compared to traditional security solutions, telecom surveillance solutions are more convenient to purchase. These companies have already developed automation solutions. Their customers can already control their surroundings using a single device. The surveillance solutions would be one other addition to an already existing system. However, these may work better for smaller businesses and individuals.
  • Newer IT-based companies, however, have a simpler selling process, are more focused on the customer, and can afford to invest in innovation more.


ALTERNATIVE NAMES FOR SURVEILLANCE SYSTEMS


KEY CHALLENGES TELECOM COMPANIES FACE WHEN SELLING THESE SERVICES TO BUSINESSES

  • If the company's reputation is problematic, and they're viewed as a mediocre service provider, their surveillance systems will be regarded with the same mistrust.
  • Telecommunication companies are dealing with increasing competition. When it comes to IT services, such as automation or surveillance systems, telecoms are competing with new companies that have superior technical capabilities and a level of expertise that telecoms lack.
  • Telecom operators find it hard to limit costs and create innovation. This is because they offer a wide array of products and services. Some of these products rely on legacy technology, while others, such as business and operations support systems, require cutting-edge solutions. Moreover, the revenue that telecoms previously obtained from selling traditional communication services is now stagnating. At the same time, IT-based offerings don't sell well enough to compensate for that loss.
  • This challenge applies to all types of services that a telecommunication company has to offer because all of their services are characterized by complexity. At the same time, each business has different needs and priorities. Understanding the needs that each business might have, and demonstrating value based on those needs can be a challenge. [17]
  • Another challenge that applies to all types of telecom services is “a long sales pipe.” Because each business has different needs, creating custom configurations and waiting for the decision-makers’ approval can slow down the sales process significantly.


RESEARCH STRATEGY:

We started our project by trying to identify the top telecom companies in the United States. We found out that the top companies were AT&T, Verizon, Comcast, Charter, T-Mobile, Sprint, CenturyLink, Dish Network, Cox, and US Cellular. This list of the top companies was created by taking into account revenue, subscribers, and profit. From an Inc article, we had found out that some of these companies offered home security solutions. To check if they also offered business surveillance, we went ahead and visited their official websites. To make sure that we were looking at the top the surveillance solutions for business offered by the top telecom companies, we began our investigation with AT&T, which is the #1 telecom company, based on the previously mentioned list of the top telecom companies. Thus, we found that AT&T only offers home surveillance. Verizon and Comcast, on the other hand, do offer business security solutions. Charter Communications and T-Mobile do not offer this service. However, Sprint Corporation does offer surveillance products for businesses. Therefore, three of the top telecom players that offer surveillance services to businesses in the US are Verizon, Comcast [source 14], and Sprint Corporation.

A Safety article discusses why telecommunication companies are trying to access the home security market. The article doesn't mention business surveillance. However, they do mention that if a household is already a customer of a telecommunications company, the cost of adding maximum security wouldn't be that high. Therefore, price would be one of the differences between the two types of companies. However, so far, we only know that this applies to home security as compared to traditional security solutions.

To find out if this holds true for business surveillance systems, we decided to check the pricing that Verizon, Comcast, and Sprint Corporation offer for business security solutions. We wanted to see whether they offer any telecommunication + surveillance systems packages, and we wanted to compare their pricing with the pricing offered by the top business surveillance companies. We found a precompiled list and determined that the top three security systems in 2019 come from Frontpoint, ADT, and SafeMart. Unfortunately, none of these companies list their business surveillance system prices. Nevertheless, knowing that businesses also need telecommunication services, we assumed that if businesses were to add security solutions to their existing telecommunication packages, then they could benefit from lower rates. However, this is likely to be the case when surveillance systems are added to an existing package. It is important to keep in mind that the article compares telecom surveillance systems only to traditional alarms systems.

Because telecoms offer more than just surveillance systems, and because each business has different needs and priorities, customizing the right solution for each business can be a slow and confusing process that may not appeal to modern business customers. The business customer would find telecoms to be inefficient, and their sales process complicated. Furthermore, because telecoms offer different types of services based on different types of technologies, they cannot invest in innovation as much as their newer competitors can.

On the one hand, it may seem to be more convenient for businesses and individuals to opt for surveillance services offered by telecom companies. These companies have been developing automation solutions for a while now. Small businesses and individuals can already control their surroundings using a single device, usually a smartphone, via WiFi. Therefore, the investment that a telecom company might need to make in order to develop surveillance systems will be smaller when compared to that of a traditional surveillance company. On the other hand, telecommunication companies cannot innovate at the rate that newer IT-based competitors can. New market players have more expertise and superior technical capability. They are more customer-focused and their selling process is simpler.
Part
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Part
04

Business Surveillance Services: Competitive Landscape

The research team has provided the required information concerning the Verizon, Comcast, and Sprint Corporation regarding their business surveillance products and services in the "Business Surveillance" tab of the attached spreadsheet, rows 3-7, columns C-E. Below is an overview of our findings.


VERIZON OVERVIEW

  • This company offers various surveillance solutions that help to minimize risk and identify potential security threats.
  • An example of Verizon surveillance product is Canary View. This product provides a complete home security system.
  • Canary View has various features such as ability to detect security threats around the facility, send HD video alerts to the users' computer or smartphone based on the configuration preferences and it is compatible with Google Home and Amazon’s Alexa.

COMCAST OVERVIEW

  • This company provides a surveillance solution called SmartOffice, a video surveillance solution designed to improve efficiency for small and medium-sized businesses (SMBs) through advanced monitoring.
  • SmartOffice can record, store, access, and share surveillance video on a 24x7 basis to oversee the organization. It also provides secure cloud storage and instant access via mobile devices.

SPRINT CORPORATION


RESEARCH STRATEGY

To address the research request, our initial approach was to search through the websites of the Verizon, Comcast, and Sprint Corporation regarding their business surveillance products and services, target market, pricing, and competitive advantage. Here, we were able to determine the description of each company's business surveillance products and services, target market, and competitive advantages. Also, we were able to identify the various prices of Verizon and Comcast for their business surveillance products, but we could not identify the pricing model for Sprint Corporation through this strategy.

Next, we scoured through Sprint Corporation white papers, blogs, and newsroom to determine their pricing models for business surveillance products. Again, we could not identify the companies' pricing model through this strategy. Information we found here was general about the company's various operations.

Next, we searched through third party reports and articles such as CNN, PRNewswire, Business News Daily, Forbes among others, to identify the pricing model for Sprint Corporation regarding their business surveillance products. Again, we could not retrieve the pricing model for Sprint Corporation through this strategy. Information we identified here was typically about various products offered by the company and their distributions.

Furthermore, we endeavored to search for Sprint Corporation pricing model regarding their business surveillance products by looking into their annual reports and company profiling databases such as Pitchbook, Bloomberg, Crunchbase, among others. Here, we were able to identify the status of the company, revenue, and competitors, but no information was found on the company's pricing model for business surveillance products. However, we concluded that the lack of retrieval of Sprint Corporation pricing model for their business surveillance products could be due to competitive reasons or as a result of lack of publication of such information on public data.























Part
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Part
05

IPTV: Overview

The top providers for residential IPTV services in the US are typically telecom service providers, cable service providers, ISP providers, or OTT service providers, and while revenues for these companies have dropped due to decreasing telephone services these companies have replaced the revenue by providing IPTV services. The top three providers in the US that offer services to residential communities are Verizon, ATT, and Comcast. The customer benefits of IPTV and the challenges that telecom companies face are given below. They were added to the spreadsheet here and findings are summarized below.

BENEFITS OF IPTV

  • IPTV only requires an internet connection or network, delivers high-quality effective content that the user selects, is compatible with all devices, and it is cost-effective for consumers.
  • When told that IPTV allows for TV, VoD and broadband access through one telecom provider, three out of five US consumers would cancel cable or satellite services because it is cheaper, for the ability to watch what they want on demand, and the ability to watch content-specific programs. 52% said they would be interested in buying cable TV services from their telecom company.
  • 57% cited access to original programming and 44% cited avoiding advertising as reasons to pay for Internet services.

CHALLENGES FOR TELECOM COMPANIES

  • A challenge for offering video services, especially for smaller service providers, is gaining access to content at a price that allows for a profitable pay-TV service. However, a bigger challenge is competition from OTT providers like Netflix and Amazon (43% of service providers) and bandwidth requirements (41%).
  • 40% of service providers believe video will be essential to the success of telecom companies, and 40% believe they will at least be useful. Nearly 30% believe it is essential to keep from losing business to their OTT competitors.
  • 60% of people that cut cable services cited streaming services such as Netflix and Hulu, and 44% expressed a desire for more integrated solutions that combines TV providers such as Amazon, Netflix, Hulu all in one place. Dish Network and ATT operate Sling TV and Direct TV NOW have garnered more than 4 million users demonstrates how telecom companies can offer bundled services to retain customers that may otherwise change services.
  • 69% of consumers now pay more for internet than for cable TV services, 65%, for the first time, and this trend is strongest among Gen Y and Gen Z, 88% and 80% respectively, more likely to subscribe to Internet video. However, the survey also found frustration with the number of subscription services, and major telecom providers like Comcast and ATT are benefiting as they provide internet services and acquisitions such as NBC Universal and Time Warner, respectively.

STRATEGY

The top providers of IPTV are major and regional telecom and cable providers, therefore we used the top US cable and internet providers as they are the medium used by all devices to access residential IPTV services. Verizon was identified as being the first to offer IPTV in the US and one of the biggest companies in addition to their proclamation to be the first to offer 5G. ATT and Dish Network were found to be the next biggest companies due to their existing digital reach, whereas Comcast is also one of the biggest internet providers.

Part
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Part
06

IPTV Competitive Landscape

The top three telecom companies in terms of IPTV product/services included Verizon, AT&T, Dish Network. The requested information is provided in the attached spreadsheet, rows 3-7, columns C-E of the 'IPTV' tab.

VERIZON

  • The IPTV service of Verizon was integrated into their Fios TV platform.
  • Fios TV offers more than 400 channels, including all the major as well as international channels. Features include VOD, 4K HD, Multi-Room DVR (control and watch DVR programs from multiple rooms), Netflix Integration, and Wi-Fi connection.
  • The pricing is around $79.99 but can change depending on the region.
BRAND POSITIONING
  • Verizon wants their IPTV service to extend its reach and then to compete within the markets of the cable providers.
  • The director of Verizon's IPTV service wants to provide the right content to each of the company's customers.
  • According to the director of product marketing of Verizon Digital Media Services, the message of Verizon is to "deliver large-scale TV Everywhere" and make their customers "experience television as they previously knew it, no matter where they are.
MARKETING CHANNELS
  • Commercials of Fios TV are uploaded on social media, more specific YouTube, and TV.
  • Verizon collaborates with YouTube, whereby this partnership will give every new Fios subscriber a free month of YouTube TV with any internet package.
  • Verizon also uses the press to promote their Fios TV.
COMPETITIVE ADVANTAGE
  • Verizon focuses more on data and personalization (personalized content, advertising, and user experience).
  • The core business of Verizon is in enterprise IT and mobile network, which makes them have a mass connection with their customers daily. They understand what their customers want to watch, and because of that, Verizon can provide the right content to their customers.
  • As a tech company, Verizon focuses on developing their TV’s large-scale technology to "make it easier for content owners to get up and running," which means they can provide their IPTV service with high quality anywhere the customers go.

AT&T

BRAND POSITIONING
  • AT&T wants its IPTV service, the U-verse, become the leader in the market.
  • U-verse competes and directly rivals with the cable companies.
  • AT&T not just want their U-verse to rival with their competitors like Comcast and Verizon in its traditional market, but the company also wants to compete with the service of tech giants like Google, Facebook, Netflix.
MARKETING CHANNELS
COMPETITIVE ADVANTAGE

DISH NETWORK

BRAND POSITIONING
MARKETING CHANNELS
COMPETITIVE ADVANTAGE

The IPTV service of Dish is different from others in several points:
  • Dish has "Hopper" system that provides customers with the ability to skip commercials automatically.
  • Dish provides customers to record the shows and then to transfer them to different devices to watch offline.
  • The company launched IPTV service, which can be paid with Bitcoin.

RESEARCH STRATEGY

The research team started by accessing the official websites of all three companies to study detailed information related to the IPTV services of the three. We also consulted press releases and articles from different reliable online publications to synthesize the final results. Within this research, we used some older sources. However, we can confirm that all the info we used had been cross-checked again with the recent info.

To be more specific, for Verizon and AT&T, we did consult information from a list of top IPTV providers in the United States dated back in 2010. From this list, we only used the information about the features, which each company provides within their IPTV services. We checked back this piece of info with the recent official information from both companies before concluding the result.

For the case of Verizon, we also used another source dated back in 2010. The article talked about the launching of Fios TV - IPTV service of Verizon and the ambition of this company to compete directly with cable network companies. We had expanded our research and found some more sources, and we can confirm that this is still the main goal of the company; IPTV service of Verizon still rivals with cable network companies. The newer source had been included within the finding.

For AT&T, we found another source that dated back to 2015. The article stated that AT&T wanted their service to the leader of the market. We had double-checked this info with another newer source and confirmed that they still maintain this goal.

For Dish Network, we searched for the partnership of this company with some marketing agencies and from that, managed to find out some useful info that has also been provided.
Part
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Part
07

Sports Programming Evolution

ESPN adopting a multi-screen approach around big events and Big Ten Network shifting conference content to Fox Sports app are some of the examples on how sports networks have evolved over the past few years.

Dedicated Sports Networks and Sub-Networks

  • ESPN has adopted a multi-screen approach around big events such as the College Football Playoff Championship Megacast, the NBA Sidecast, the Tournament Challenge, Fantasy Football Marathons, and the Women’s Final Four.
  • ESPN, CBS, NBC, and Turner are direct to consumer networks. Some of them have added new content and shifted a few programs from current networks. For instance, ESPN added MLB and NHL to ESPN3 content from its BAM acquisition.
  • With the evolution of digital-only content socially and the ESPN App, ESPN has re-introduced their flagship program, SportsCenter with Scott Van Pelt and the launch of SC6 with Michael Smith and Jemele Hill.
  • "In 2016, ESPN introduced a Snapchat version of its weekly pregame show “College GameDay” in addition to its daily channel (that show ran every week in the 2018 college football season). In 2017, ESPN swapped its original text-heavy publisher channel for twice-daily “SportsCenter” show on Snapchat. In 2018, ESPN added a weekday afternoon show called “ESPN Daily” to Snapchat and changed “SportsCenter” to only mornings. In 2019, it started the MMA show, which now has aired nine episodes".
  • Big Ten Network has recently shifted conference content to Fox Sports app. Francois McGillicuddy, president of BTN said, "It's important to note that between BTN, Fox, and Fox Sports 1, we're talking about the broadcast rights for over 7% of Big Ten football inventory. So, with so many games now in our family of networks, it no longer made sense to drive fans to separate locations".
  • According to the International Telecommunication Union, monthly TV viewing time started to significantly decline after 2015, when OTT subscribers stood at 40% in the US.

Regional Sports Networks

  • The acquisition of Fox Sports' 22 Regional Sports Networks by Disney/ESPN for $20 billion, along with many regional sports networks changing hands will have a significant impact on sports beyond MLB, NHL, and NBA (no NFL regular-season games on RSN's).
  • "NBC Sports Films, a division of NBC Sports Group, was founded in 2015 and produces sports documentaries that air across NBC, NBCSN, NBC Sports Regional Networks, and NBC Sports Digital’s platforms.
  • Using the storytelling abilities of the Emmy Award-winning production units that produce NBC Sports’ coverage of the Olympics, Sunday Night Football, and the Stanley Cup Final, NBC Sports Films shines a spotlight on historical moments and compelling stories that stem from the myriad of signature sports properties in the NBC Sports Group portfolio".

YOUR RESEARCH TEAM APPLIED THE FOLLOWING STRATEGY:

In order to understand how sports programming on dedicated sports networks have evolved over the past five years and how it is different from sub-networks and regional sports networks, we commenced our research with sports news and media coverage on the subject. We thoroughly examined sources such as Forbes, sportspromedia, sportseta, sportsbusinessdaily, and many others. These sources threw light on the evolution of programming and content for dedicated sports networks as well as regional sports networks in digital space and digital platforms only. None of the found sources highlighted any evolution in programming in their cable/satellite offerings.

As our second approach, we switched our focus to publications, blogs, fact sheets, timelines, and reports by individual dedicated and regional sports networks such as ESPN, NBC, NFL Network, Big Ten Network, and CBS among others. We compared the old and new resources to find changes/evolution in programming and content to understand the transformations that have taken place. However, all the updates from 2015 to 2019 focused on marketing strategy as well as content in direct-to-consumer and other digital channels. The networks did not share any old or new updates on programming on their cable/satellite offerings. Therefore, the strategy did not yield any fruitful results.

Lastly, we scanned studies conducted on the evolution of cable/satellite offerings over the past five years for all segments in sources such as study.com, itu.int, calcable.org, and many more. The found information only threw light on how the usage of cable/satellite has diminished due to digital mediums and no information relevant to sports networks could be garnered through this strategy.

As per the research conducted, the viewership of sports networks on cable/satellite is declining and therefore, updates, content, and studies conducted to understand the evolution, revolve around the digital space only.
Part
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Part
08

Sports Programming Content

The type of content most popular on dedicated sports networks in the US include NFL, CFB, MLB, CBB, Horse Racing, PGA, and NASCAR.

Popular Types of Content on Dedicated Sports Networks

According to a sports analysis report by Sports Media Watch, type of content is most popular on dedicated sports networks in the US in 2018 included:

1. Sports Network: NBC Sports

2. Sports Network: ESPN, ESPN2, ESPNU

3. Sports Network: FOX Sports

4. Sports Network: Turner Sports

5. Sports Network: NBC Sports

6. Sports Network: CBS

7. Sports Network: FOX Sports


Research Strategy:

We were able to determine the type of content is most popular on dedicated sports networks in the US from a 2019 sports analysis report by Sports Media Watch. According to the report, the analysis of the most popular sports content on different sports networks in the US was ranked according to the total number of viewership of the sports content on different sports networks.
Part
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Part
09

Sports Programming and Cord Cutters

As streaming services begin to include live sports programming, the act of cutting the cord has caused cable viewership for sports to drop.


VIEWERSHIP IMPACT OVERVIEW

  • In 2018, there were 127.59 million households. Of those 127.59 million, 94% (or 119.9 million) had television.
  • In the third quarter of 2018, pay TV lost 1.8 million subscribers. Additionally, 1.1 million subscribers left cable and 726,000 left satellite TV.
  • The price of cable service was cited as the primary reason for cord cutting.
  • From 2017 to 2018, cord cutting grew 22% to a total of 33 million people. It is expected to reach 55.1 million by 2022.
  • In a recent survey reported on eMarketer, cord cutters were asked what they missed most after cutting the cord. Of the respondents, 52% said they did not miss anything, 23% missed live events on TV, 22% missed the local or national news, 19% missed live sports, 8% missed finding out about new products, and 7% missed live talk shows.
  • A Deloitte survey shows that 71% of subscribers pay for cable TV in order to watch live broadcasts, while 56% say that bundling phone, TV, and Internet was cheaper than getting each service alone.
  • A Price Waterhouse survey reflect cord-cutting Americans by age groups: 87% of 18 to 25-year-olds, 90% of 25 to 34-year-olds, 78% of 35 to 49-year-olds, and 63% of 50 to 59-year-olds. The same survey shows that 82% of sports fans surveyed said they would cut the cord if they did need pay TV to watch live sports.


SPORTS VIEWERSHIP IMPACT

  • Ratings for sports on TV are dropping among younger viewers with 48% of Gen Xers following sports verses 38% of Millennials.
  • Esports has experienced a major increase in viewership. It is one of the fastest growing sectors in the last 10 years. There were 380 million total esports viewers worldwide in 2018 and is expected to reach approximately 557 million by 2021.
  • There also has been a shift from watching live sports to watching summaries and highlights.
  • Last year, YouTube shows an 80% increase in viewers who watch sports highlight videos.


NEW DISTRIBUTION

  • Skinny bundles are cheaper streamlined channel packages.
  • FuboTV, Sling, Hulu, PlayStation Vue, and DirectTV Now all offer skinny bundles for sports fans.
  • FuboTV has upgraded some of its sport programs to 4K.
  • Disney is launching a new streaming service which will include ESPN+, with NHL, MLB, and college games not on ESPN.
  • The NFL is looking for new proposals for its Thursday Night Football broadcast. Amazon Prime currently streams the program, but Amazon is looking to buy the broadcast rights. This would make Thursday Night Football the first streaming-only major sporting event.
  • Twitter and Facebook are investing in sports streaming. Currently, both offer free streaming of select MLB games. However, Facebook is looking to get some exclusive streaming rights in the future.
  • ESPN can be streamed on Sling, Hulu, PlayStation Vue, DirectTV Now, and YouTube TV. They offer ESPN and ESPN2, with other ESPN channels with additional packages.
  • Each of the Major Leagues, the MLB, the NHL, the NFL, and the NBA, have their own live streaming networks.
  • The WWE has its own streaming service, with over 1.5 million subscribers.


REGIONAL SPORTS NETWORKS

  • Due to a federal ruling, Disney was required to sell the 22 regional sports networks it acquired in its purchase of Fox.
  • One regional network, YES, was sold to the New York Yankees and Amazon.
  • The other 21 networks were sold to Sinclair, the largest TV station owner in the US, with exclusive rights to 14 MLB teams, 12 NHL teams, and 16 NBA teams.
  • In 2018, the regional sports networks had a combined total of 74 million subscribers with $3.8 billion in revenue.
  • The sale price for the regional networks, $10.6 million, was lower than the $20 billion minimum Disney was looking for. This was due in part to the high retransmission fees these networks have.
  • Another reason for the lower price is ratings, which for sports networks is completely dependent on the team's performance.
  • Cord cutters are another factor for the price of the regional sports networks package.
  • Sinclair may bundle the regional sports networks with its other channels to multichannel video programming distributors (i.e., cable companies) and virtual multichannel video programming distributors like Sling.
  • Stadium, a digital TV and internet streaming sports network, is also partially owned by Sinclair.
  • July 22, 2019, Disney made a temporary deal for Dish Network and Sling to continue to carry the Fox Regional Sports Networks and other networks while the Sinclair deal is still ongoing.
Part
10
of ten
Part
10

Sport Programming: Future

Dedicated sports networks like ESPN, CBS, NBC, and TURNER will diversify away from Multichannel Video Programming Distributors (MVPD) operations. Also, it is expected that there will be many novel multichannel fan experiences in traditional and digital platforms. The sports network audience is expected to pay for the subscription not just to watch the game but to watch multiple sports games, live, and due to the changing market, subscription fees will increase because sports network license fees will also increase.

U.S. SPORTS MARKET OVERVIEW

  • The market size of the sports market is $20 billion, and it is expected to reach $24 billion in the next five years.
  • The sports media rights, sponsorship, merchandise, and ticket sales revenues are expected to increase up to 17.9%, 7.6%, 2.1%, and 6.5% in the next five years.

US SPORTS NETWORK FIVE YEARS OUTLOOK

PROGRAMMING FORMATS
  • Sports networks like ESPN, CBS, NBC, and TURNER will diversify away from Multichannel Video Programming Distributors (MVPD) operations.
  • To be able to strengthen the revenue outflow, sports networks will go against password sharing by providing a limited number of allowed simultaneous streams and MVPDs, and charging for mobile access rather than providing TV everywhere, as the added value which will perpetuate shrinkage via perfect substitute.
  • Sports networks will go digital. ESPN has already shifted to digital to adapt to the younger consumer preferences, and other sports networks will make soon adopt this trend like cable's "dual-revenue stream."
  • "The importance of sports in programming bundles will diminish over time."
  • It is expected that sports networks will increase the audit performance for MVPDs the most, especially when it comes to small discrepancies.
  • There will be replacements in the programming formats of sports networks. Sports networks will realize vast expenses in rights fees. Due to these changes, sports networks are expected to cut down on low return on investment (ROI) packages, which will generate similar viewer ratings without the rights fee risk.
  • ESPN expects that programming formats will improve as more states support underwritten content.
TYPES OF CONTENT
  • The content is expected to have a microscopic focus from management layers to travel cost and less R&D for V&R and 4K.
  • The market is in flux due to the evolving market (digital revolution).
  • There are high expectations for novel multichannel fan experiences in traditional and digital platforms due to the changing audience viewing pattern.
  • According to PwC, "by 2022, sports consumption may look very different than it does today."
  • ESPN is expected to focus on the digital era, where they will prioritize social video through apps, as apps are where sports fans get good content experience.
  • Through the use of the radio, there will be a growth area for sports betting content in the future.
AUDIENCE
  • The audience is expected to take control of their content and enjoy it on their terms rather than just broadcasting.
  • The sports network audience is expected to pay for the subscription used not only to watch the game but to watch multiple sports games, live.
  • The next-generation sports audience will demand more novel multichannel fan experiences.
  • Fewer sports audiences are choosing to use conventional pay-TV. Instead, large numbers of the sports audience are turned to video consumption on the internet. However, ESPN remained as a streaming version unbundled to other networks.

OTHER SPORTS NETWORK OUTLOOK

  • Due to the changing market, subscription fees will increase because the sports network license fees will also increase.
  • According to a media analyst named Ben Swinburne, sports networks are expected to make a financial windfall on ads as the Supreme Court opened the legal sports gambling across the United States.
  • The media analyst added that sports networks like ESPN, CBS, ESPNU, ESPN 2, and NBCSN would benefit more with the opening of legal sports gambling across the country.
  • The "New Fox" is expected to gain a 2% revenue increase while CBN is expected to achieve a 1.5% revenue increase as well.
  • Sports networks are anticipated to open their doors to gambling advertisements for revenue.
  • Sports networks are expected to obtain broader rights grants for the use of co-owned properties.
  • An example of this is the NBC buying Spanish rights to use Telemundo, or ESPN buying rights for its newly launched products.
  • Due to the changing market, this expectation will drive some rights grants in the opposite direction resulting in slow rights growth.
  • Well-known announcers will replace sports networks' big talent names.
  • There will be consolidations on dedicated sports networks or regional sports networks.
  • In 2015, Bob Iger, Disney CEO previously stated intentions to sell ESPN as a direct-to-consumer streaming service.
Sources
Sources

From Part 06
Quotes
  • "There has been a revolution in the TV industry in recent years, driven by mobile, streaming content and the virtual ubiquity of smartphones. The shift in the content industry of direct-to-consumer services (DTC) and skinny bundles is both threatening and enhancing traditional pay-TV offers. Verizon Digital Media Services is prepared to take advantage with next-generation streaming solutions. "
Quotes
  • "If you're in the market for an IPTV service and you live in the U.S., chances are two companies come to mind: AT&T and Verizon."
Quotes
  • "Verizon is in the early phases of deploying an Internet Protocol television (IPTV) system in a move to bring its FiOS brand to the Web, according to a well-placed source within the company. "
Quotes
  • "Verizon's Fios TV subscribers continue to slip away, but the company is redirecting observers' attention away from that loss and toward the telco's fiber broadband success and the promised introduction of a new over-the-top video service. "
Quotes
  • "Earlier this year, Verizon announced a partnership with Google to promote YouTube TV. This week, that partnership is starting to take effect with a new promo that gives Verizon Fios subscribers a free month of YouTube TV with any internet package."
Quotes
  • "The upgrade, which Verizon said has been deployed to a limited number of Fios subscribers in upstate New York and New York City; Pittsburgh and Harrisburg, Pa.; Massachusetts markets; Richmond, Va., and several other markets, includes a voice remote and secondary receivers that are WiFi connected, meaning they don’t have to be placed near coax."
Quotes
  • "Verizon’s traditional pay TV service is getting a substantial update, dubbed Fios TV One, which includes a new voice remote and Netflix integration. "
Quotes
  • "When 2018 began, AT&T did not have a massive media and advertising business. But the telecom giant is closing the year with a portfolio of TV networks, multiple direct-to-consumer streaming video services and an advertising division that spans traditional and digital media. "
Quotes
  • "Frost & Sullivan recognized AT&T** for its leadership in high-speed Internet services, awarding the company the 2015 North American Competitive Strategy and Innovation Leadership of the Year Award for Broadband. The analyst firm praised AT&T for its “aggressive pursuit of higher bandwidth access” for customers through its U-verse with AT&T GigaPowerSM initiative. "
Quotes
  • "This year, AT&T is sponsoring the 2019 Masters Tournament and the inaugural Augusta National Women’s Amateur Tournament. "
Quotes
  • "Dish Network, rebranded as Dish, will unveil a new internet television service (IPTV) at the 2015 Consumer Electronics Show. The service will operate separately from standard Dish lineups. Users will be able to buy packages that allow them to stream their favorite shows over the internet, if they have an existing cable or satellite subscription. "
Quotes
  • "ENGLEWOOD, Colo.--(BUSINESS WIRE)--DISH (NASDAQ: DISH) selected Havas WW as its new digital agency of record to support its general market and Latino digital marketing needs. Havas WW was chosen after a comprehensive agency review led by Keith Nyhouse, vice president of digital marketing. "
Quotes
  • "Dish has decided to go one step further when it comes to their Primetime Anytime service. If you remember when the Hopper system launched, Primetime Anytime allows you to record all four broadcast networks every day during primetime viewing hours. Hopper automatically saves these recordings for eight days."
Quotes
  • "Verizon Fios and Xfinity fight for a lot of the same customers. Between Fios’s fiber-optic technology and Xfinity’s massive cable network, users expect consistent and cutting-edge service. "
From Part 07
Quotes
  • "NBC Sports Films, a division of NBC Sports Group, was founded in 2015 and produces sports documentaries that air across NBC, NBCSN, NBC Sports Regional Networks, and NBC Sports Digital’s platforms. Using the story telling abilities of the Emmy Award-winning production units that produce NBC Sports’ coverage of the Olympics, Sunday Night Football, and the Stanley Cup Final, NBC Sports Films shines a spotlight on historical moments and compelling stories that stem from the myriad of signature sports properties in the NBC Sports Group portfolio."
From Part 09
Quotes
  • "Will the era of traditional TV come to an end in the near future?"
Quotes
  • "As we’ve covered before, watching major leagues like the NFL without a cable package is infuriatingly difficult, because major media companies — in the case of the NFL, NBC and CBS — own the broadcast rights, and dictate which channel a game will be on, and where."
Quotes
  • "Historically, sports streaming has been tough for cord-cutters. But as more people cut the cord on cable, sports streaming services are popping up to air football, soccer, baseball, hockey, and most other sports."
Quotes
  • "The status quo of sports TV may be unraveling, but brands can always find new ways to reach the fans."