How we monetize fandom in an increasingly online world is a question that doesn’t just exist in music, but also in sports. As such we can learn from each other. Brand new American football club Inter Miami just launched a video strategy that is all about engagement. Let’s see what they’re doing, how they do it, and what it means for those monetization strategies. But first
Some background into US sports on TV
In the US, sports on TV is having a hard time of it. Its ratings having been decreasing for years with a hard slump during the pandemic. Taking the Major League Baseball as a quick example this is what that decline looks like:
There are some signs that viewership for sports in the US will stabilize and, as The Hollywood Reporter recently reported, TV networks on the one hand have too much money – roughly $140 billion – invested in sports over the course of the next 10 years. On the other hand, shrinking overall TV subscribers may make sports’ appointment viewing even more valuable. At the same time, shifting audiences will require changes in how live sports will be offered. There are already some examples that try to incorporate other franchises, such as Star Wars or Marvel, into the live broadcast. But other experiments are more interesting to analyse from a music perspective.
The Inter Miami case
A totally new football club dreamed up by David Beckham, perhaps it’s not strange that they also think about branding like Beckham. Last week, the club released an app, which they dub ‘an immersive fan video engagement experience.‘
What fans get
- Watch Party, viewing with up to 8 people
- Live chat, with co-viewers
- Real-time stats, directly on screen
- Social engagement, focuses on being to share and like while staying with the live video of the game
Many of these elements resemble things that already exist in other live video spaces such as games like Fortnite, streaming services like Twitch, and SVOD services like Disney+. While I’m most excited about the watch party integration, it’s actually the combination of elements that music should look at when it comes to livestreaming, the total package that will help fuel a collective watching experience. This type of live and simulaneous watching is also YouTube‘s number one highlight from their recent Culture and Trends Report.
Inter Miami partnered with a company called StreamLayer on the app. Just last summer, they raised $4 million and their unique selling point is that they create overlays on any video stream. Their first focus is on mobile, because “the proclivity on mobile to interact is just dramatically higher,” as Head of Product Strategy Tim Ganschow told Forbes. The next step will focus on connected, or smart, TVs, which is also an exciting space for music.
Monetization strategies
Interaction and engagement are the key elements of this new football viewing experience. Those are two elements that musicians on Twitch or StageIt, for example, have also learned to utilize and control. However, the watch party element is something that can come in and make a big change for music livestreaming, especially when it comes to monetization. There could be, for example, ‘normal’ tickets, but also ‘watch-party’ tickets that allow you to set up a room with up to 8 friends. This wouldn’t be too dissimilar to group tickets for festivals.
Besides thinking about bringing in extra revenues through a variety of tickets, there are many more possibilities. Overlays present opportunities to show sponsors in a livestream without the need to cut out the live video. Or, it’s possible to do direct merch calls directly related to what’s happening in the livestream. Of course, the livestream itself would need to be unique and different to create interesting moments to print on a t-shirt or mint into an NFT and, most importantly, to warrant interest from fans.
In sum
We need to keep thinking about new ways to create more interactive and engaging livestreams. One way to do so is to look at what others do and develop. Just like StreamLayer looked at Twitch and tried to bring more engagement into sports livestreaming, so musicians, managers, labels, venues, and platforms can look at Inter Miami’s app and copy the watch party. Moreover, these types of developments will continue to give livestreaming a differentiating edge against in-person concerts. Novel ways to connect, interact and engage with fellow fans will be one way to keep people at home with their screen instead of in a venue or at a festival.