AI & Innovation: Transforming the Sports Landscape
Chapter 4: Altman Solon's 2024 Global Sports Survey
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Welcome to our breakdown of Chapter 4 from Altman Solon's 2024 Global Sports Survey. This is the fourth instalment in our series where we explore key findings from this comprehensive industry report.
Previous chapters in this series:
Chapter 1: "Winning Tomorrow's Sports Fans" – Insights on engaging digital-native audiences
Chapter 2: "Rethinking Sports Rights Monetisation" – Strategies for maximising value from sports media rights
Chapter 3: "Investor Perspectives" – Understanding investment trends in sports media
Introduction: The AI Revolution in Sports
The sports industry stands on the brink of a technological transformation, with Artificial Intelligence (AI) emerging as a pivotal force of change. The survey captures a critical moment where technology is not just supporting sports but fundamentally reshaping how the industry operates, generates revenue, and engages with fans.
Survey Snapshot
Respondents: 220 senior sports executives globally
Key Finding: 90% anticipate AI will have a medium to high impact on sports by 2030
Market Context: AI market projected to reach $1,800 billion by 2030
Market Context and Pressure
The sports media industry is currently experiencing significant disruption, with streaming challenges and reconsolidating attempts creating a complex landscape. AI emerges as a key strategic tool to navigate these challenges, offering innovative solutions for distribution and monetisation strategies.
Looking Ahead
The message is unequivocal: AI is no longer a futuristic concept but an immediate necessity. Sports organisations are not just preparing for an AI-driven future—they are actively shaping it, recognising that technological adaptation is crucial for sustained relevance and competitive advantage.
Sports Rights Monetisation: AI as a Strategic Enabler
A constant theme throughout all four chapters of this survey, the sports media industry is navigating a critical inflection point. Traditional broadcast models are increasingly challenged by streaming services struggling to generate equivalent revenue. In this complex landscape, artificial intelligence emerges as a strategic solution to reimagine how sports rights are valued, distributed, and monetised.
Key AI-Driven Monetisation Strategies
Data Licensing Executives see significant potential in licensing athlete performance and consumer data, with 53% predicting high or utmost impact on revenue generation. The model is already established in sports betting and is now expanding into AI applications. A prime example is Stats Perform's data-licensing agreement with Football DataCo, which creates new revenue streams for major football leagues through AI-backed insights.
Intellectual Property (IP) Licensing: AI is opening innovative pathways for IP management and monetisation. Initiatives like CAAvault, a collaboration between Veritone and CAA, demonstrate how AI can securely store and manage digital talent assets, creating novel income streams from digital likenesses.
Emerging Sponsor Categories: A groundbreaking opportunity lies in establishing "AI sponsor" categories. The International Olympic Committee's partnership with Intel as the Official Worldwide AI Platform Partner for Paris 2024 Olympics illustrates the potential of this new sponsorship model.
AI-Powered Fan Products: Personalised content represents a powerful monetisation strategy. With 68% of executives anticipating high impact from AI-based products, solutions like the NBA's partnership with WSC Sports—which generates individualised highlight packages—showcase how AI can drive fan engagement and revenue.
The Broader Vision
Sports rights owners are increasingly complementing traditional business-to-business (B2B) models with direct-to-consumer (DTC) platforms. AI will be crucial in accelerating these efforts, helping organisations build scalable digital ecosystems that provide personalised, on-demand content and foster community-driven experiences.
The key lies in leveraging data analytics and AI to deeply understand fan preferences, ultimately driving long-term engagement, loyalty, and monetisation.
AI Revenue Opportunities: Unlocking New Income Streams
The sports industry is experiencing a remarkable transformation, with Artificial Intelligence emerging as a powerful catalyst for revenue generation. The survey reveals four key avenues through which AI is creating unprecedented monetisation opportunities.
1. Data Licensing: The New Digital Asset
Data has become the new gold in the sports ecosystem. With 53% of executives predicting high impact from data licensing, this revenue stream is rapidly evolving. The model, already proven in sports betting, is now expanding into AI applications.
A standout example is Stats Perform's partnership with Football DataCo, which demonstrates how performance and consumer data can be transformed into valuable AI-backed insights. This approach not only generates additional revenue but also creates new ways of understanding and engaging with sports.
2. Intellectual Property (IP) Licensing & Management
AI is revolutionising how intellectual property is managed and monetised. Initiatives like CAAvault, a collaboration between Veritone and CAA, showcase the potential of AI in:
Securely storing digital talent assets
Creating new income streams from digital likenesses
Optimising the IP licensing process
The ability to efficiently manage and license IP represents a significant breakthrough for sports organisations looking to maximise the value of their digital assets.
3. Emerging Sponsor Categories
The rise of AI has birthed an entirely new sponsorship ecosystem. The International Olympic Committee's partnership with Intel as the Official Worldwide AI Platform Partner for the Paris 2024 Olympics is a prime example of this emerging trend. These "AI sponsor" categories offer:
Strong near-term revenue opportunities
Innovative marketing partnerships
A new approach to corporate sponsorships
4. AI-Powered Fan Products
Personalisation is the future of fan engagement, and AI is leading the charge. With 68% of executives anticipating high impact from AI-based products, the potential is immense. The NBA's partnership with WSC Sports illustrates this perfectly, using AI to automatically generate personalised highlight packages that:
Enhance fan experience
Drive organic consumer growth
Create new monetisation channels
The Strategic Approach
Altman Solon emphasises that successfully capitalising on these opportunities requires a structured approach:
Identify impactful use cases
Prioritise revenue and cost opportunities
Develop comprehensive implementation strategies
Foster adoption across technology, people, and processes
Leading organisations like the Premier League are already demonstrating that by embracing new technologies and innovative commercial models, sports can overcome traditional market challenges and secure long-term success.
AI Optimising Operations: A Comprehensive Transformation
Artificial Intelligence is revolutionising sports operations across multiple dimensions, offering unprecedented opportunities for optimisation and efficiency. Altman Solon's 2024 Global Sports Survey reveals a landscape where AI is not just a technological tool, but a strategic imperative for competitive success.
Performance Analytics: Redefining Athletic Excellence
With 85% of executives anticipating a high or utmost impact, performance analytics stands at the forefront of AI's operational potential. The Digital Athlete initiative, powered by AWS technology, exemplifies this transformation by:
Creating virtual player representations
Enabling advanced injury prevention simulations
Developing personalised training plans
Extending athletic careers
Reducing injury-related costs
Business Operations & Efficiency: Streamlining Organisational Capabilities
AI is optimising critical business functions through:
Advanced scenario planning
Sophisticated market screening
Campaign optimisation
Media valuation improvements
Venue planning
Content management automation
These applications promise significant bottom-line growth and enhanced fan satisfaction by making organisational processes more intelligent and responsive.
Media and Content Generation: Revolutionising Fan Experience
AI is transforming content creation with 81% of executives recognising its potential. Key innovations include:
Automated image and graphic design
AI-generated live commentary
Intelligent live stats and graphics generation
WSC Sports' technology for the NBA demonstrates this potential, generating individualised highlight packages that generated over 1 billion views in the 2023 season. Similarly, IBM's AI powers Wimbledon's highlight commentaries, showcasing the technology's versatility.
Fan Analytics and Engagement: Personalising the Fan Journey
With 82% of executives highlighting its importance, AI is reshaping fan interactions through:
Personalised marketing campaigns
Enhanced content delivery
Improved customer acquisition strategies
The Orlando Magic's partnership with SAS and MLB's AI-driven engagement strategies illustrate this approach. MLB's implementation resulted in a remarkable 50% increase in interaction rates and successfully connected with younger fan demographics.
The Strategic Approach to AI Optimisation
Altman Solon recommends a structured approach to capturing these opportunities:
Identify and assess potential use cases
Prioritise based on revenue and cost potential
Develop a comprehensive implementation roadmap
Foster adoption across technology, people, and processes
The message is clear: AI optimisation is no longer optional. It's a fundamental requirement for sports organisations seeking to maintain a competitive edge in an increasingly digital landscape.
Fan Engagement: Personalising the Sports Experience
Artificial intelligence is revolutionising how sports organisations connect with fans, moving beyond traditional broadcast models to create deeply personalised, interactive experiences. With 82% of executives anticipating a high impact on fan analytics, AI is becoming the cornerstone of modern fan engagement strategies.
Personalised Experiences: The New Fan Relationship
Leading organisations are leveraging AI to transform fan interactions:
The Orlando Magic's partnership with SAS uses machine learning to personalise marketing campaigns
MLB's AI-driven approach with Adobe technology resulted in a 50% increase in interaction rates
These innovations are particularly effective in attracting and retaining younger fan demographics
AI-Powered Products: Reimagining Content Consumption
Personalisation is taking centre stage through innovative AI-powered products:
The NBA's collaboration with WSC Sports generates individualised highlight packages
Over 1 billion views were recorded on the reimagined NBA App
IBM's AI-generated commentaries for Wimbledon create more dynamic viewing experiences
Deep Fan Analytics: Understanding Audience Insights
AI enables unprecedented insights into fan behaviour:
Sophisticated data analysis of fan preferences
Optimisation of products through personalisation
Tailored engagement strategies that resonate with individual fans
Content Enhancement: Beyond Traditional Viewing
AI is transforming content delivery through:
Dynamic live stats and graphics
Enhanced visual experiences
More engaging and interactive content formats
Direct-to-Fan Platforms: The Future of Sports Consumption
The rise of direct-to-consumer (DTC) platforms is being accelerated by AI:
Personalised content recommendations
On-demand, interactive viewing experiences
Improved long-term fan loyalty and engagement
The Strategic Vision
Industry experts like Guy Horne envision a future of on-demand, interactive sports consumption powered by AI. The key lies in a structured approach:
Identify relevant use cases
Prioritise based on potential impact
Develop comprehensive implementation strategies
Create scalable digital ecosystems
As Motasem El Bawab of N3XT Sports suggests, the goal is to build personalised, community-driven experiences that drive long-term engagement.
Conclusion: AI as the Catalyst of Fan Connection
AI is more than a technological tool—it's reshaping the fundamental relationship between sports organisations and fans. By enabling personalised experiences, innovative products, and deeper insights, AI is creating a more engaging, interactive, and responsive sports ecosystem.
Final Thoughts: The AI Revolution in Sports
The survey paints a compelling picture of artificial intelligence as more than just a technological trend—it's a transformative force reshaping the entire sports ecosystem. From revenue generation to operational efficiency, and from performance analytics to fan engagement, AI is proving to be the ultimate game-changer.
Key Takeaways:
90% of executives anticipate AI's medium to high impact by 2030
AI presents opportunities across revenue, operations, and fan experience
A structured, holistic approach is crucial for successful AI integration
Early adopters will gain significant competitive advantages
The message is clear: AI is not a future possibility, but a present-day necessity. Sports organisations that embrace this technology will be best positioned to thrive in an increasingly digital, data-driven landscape.
Coming Next Month: Chapter 5 - Middle East's Sports Growth
Stay tuned for our final instalment, where we'll dive into the explosive growth of sports in the Middle East, exploring emerging markets, investment trends, and the region's strategic positioning in the global sports ecosystem. Stay tuned for next Monday's roundup as we continue tracking the transformative developments reshaping the global sports technology landscape.
Track the Trends. Spot the plays. Shape the game.
Thanks for reading,
Dean
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