Online football match could have scored more

22 October 2009

The England versus Ukraine qualifying match on 8 October demonstrated that issues remain before mass viewing via the web is a commercial reality. It has been reported that Kentaro turned down a six-figure sum from ITV in favour of a web pay-per-view deal, restricting access to just 1m subscribers (most likely down to bandwidth and simultaneous streaming restrictions) willing to pay between £4.99 and £11.99.

Kentaro’s decision to distribute the match solely online seems absurd, when the number of simultaneous consumers could easily be extended by adding more delivery channels such as mobile and 3G video calling to receive live streams or highlights. Multi-channel distribution best suits minority interests considered too small for major broadcasters. The variety of incremental billing options available allows small amounts of revenue to be generated that can supplement ad revenues.

One main advantage of online and mobile distribution channels is that they enable the football club to create a direct relationship with the fan, billing them directly for access to live events and other content. As it’s web based, this could encourage significantly more revenue from a worldwide fan base while enabling value add-ons such as direct betting during the event or fantasy sports applications that enable interaction as well as revenue and advertising opportunities even after the event.

While Kentaro may have missed an open goal, the future revenues of many sports organisations are firmly staked in web and mobile distribution.

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