Students will begin the final project process by individually preparing an executive summary on the current streaming marketplace, the current industry players, their current sports content activity as well as consumer segmentation. Some themes you should consider in your executive summary.●Summarize the existing streaming marketplace in terms of users, providers, revenues, growth rates and consumer segmentation●Summarize, in depth, each existing streaming platform in terms of their user base, their revenues, growth rates and their content portfolio●Identify the competitive advantages of streaming platforms vs. traditional linear platforms●Summarize the existing sports media marketplace as defined in our class discussion and through your own research○Include information on current digital sports content consumption trends●Utilize secondary market research data, trade press, consumer press and business press to support the premise that streaming platforms should invest in sports to grow their businesses. Your research should include, but not be limited to:○PwC Beyond the Gate report○PwC Streaming Shakeup reportMKT 428 | Business of Sports and the Media
Final Project Guidelines
OVERVIEW
The final project will unfold in stages over the remainder of the semester. The project will
consist of one individual research paper, one group presentation and one group marketing
plan submission.
The final project will prompt you to reflect on the current yet changing sports-media nexus
and apply your course learning to the development of a marketing plan for a digital
platform that has theoretically acquired one of the major sports properties that we will
discuss during the semester. In this activity, you will act as a marketing representative for
the platform and prepare the marketing plan that will help shape the platform’s consumer
launch campaign.
As you prepare your work, consider

The current sports-media nexus landscape

The current streaming media landscape

How the sports property matches the platform’s mission and SWOT

How the sports property meets the needs and wants of the platform’s consumer
base

How the content would grow the consumer base and/or build value for existing
customers

How marketing can ensure the initiative is successful
INDIVIDUAL ASSIGNMENT

Streaming Industry Executive Summary

4 to 5 pages

Due – Wed, March 4

Submit hardcopy in class and upload to Blackboard assignment
Students will begin the final project process by individually preparing an executive
summary on the current streaming marketplace, the current industry players, their current
sports content activity as well as consumer segmentation. Some themes you should
2
consider in your executive summary.

Summarize the existing streaming marketplace in terms of users, providers,
revenues, growth rates and consumer segmentation

Summarize, in depth, each existing streaming platform in terms of their user base,
their revenues, growth rates and their content portfolio

Identify the competitive advantages of streaming platforms vs. traditional linear
platforms

Summarize the existing sports media marketplace as defined in our class discussion
and through your own research


Include information on current digital sports content consumption trends
Utilize secondary market research data, trade press, consumer press and business
press to support the premise that streaming platforms should invest in sports to
grow their businesses. Your research should include, but not be limited to:

PwC Beyond the Gate report

PwC Streaming Shakeup report
GROUP DELIVERABLES

Student pairs to instructor – March 16 (ungraded)

8-10 minute presentation on their proposal on April 15 or 22 (Group order TBD)

10-15 page marketing plan on April 27
Once the industry summaries are complete, students will work in groups of two. Please
make every effort to find a partner for your final project. While students can work in groups
of three, this is not preferable, and I will require a 15-20 page marketing plan for groups of
three students.
Your proposal should follow the marketing planning process, borrowed from MKT210, and
reinforced throughout the semester.
PLANNING
Mission & Objectives

Identify your digital platform

Communicate your platform’s mission

Communicate how the content acquisition fits with your platform’s mission and
meets its business objectives
2
3
Executive Summary (Consolidate your individual research into a summary for just one
platform)

Summarize, in depth, the platforms in terms of its user base, revenues, growth rates
and content portfolio

Secondary market research data, trade press, consumer press and business press
that supports the premise that streaming platforms should invest in sports to grow
their businesses. Your research should include, but not be limited to:


PwC Beyond the Gate report

PwC Streaming Shakeup report
The existing sports media marketplace as defined in our class discussion, but also
including your own research

Include information on current digital sports content consumption trends
Situation Analysis

Build a SWOT for the platform in comparison to other competitive digital and
incumbent “non-digital” platforms.

After you have completed your SWOT, think about the larger implications of your
analysis.

What strengths can the client leverage to take advantage of opportunities or
mitigate threats?
In light of the current business environment, what weaknesses are most

pressing to address or what strengths should they further develop?
IMPLEMENTATION
Segmentation, Targeting, and Positioning (Planning)

Building off your research, explain in-depth the segmentation of the sports
consumption audience including the pros and cons of each segment

Identify your target market(s) and the rationale for choosing this segment using
secondary market segmentation research (Targeting)

Explain how you would position this content as you go to market (Positioning)
Marketing Mix
Product

Provide details on the content that you expect to offer. Please consider live games
and other content opportunities

Using your research, justify your content decisions (Needs and wants)

Assume a contract that extends five-years
3
4
Pricing

Estimate the purchase price for your platform’s acquisition of the content

Translate that purchase price into a consumer pricing strategy (make the math
work)

Communicate your strategy behind pricing the content as it relates to the consumer
needs and wants as well as your competitors in the digital and linear space

Assume you are in a competitive bidding process with traditional and digital
competitors for a five-year deal
Place

Provide details on where the content would live on your platform

Communicate your distribution reach of this content. Is it a national, regional,
international or global play? (Your purchase price must reflect this distribution)
Promotion

Explain how you will leverage your platform and your ownership’s reach to promote
the product

Communicate other ways in which you would promote the product

What is your paid media strategy? What are the expected costs?
MEASUREMENT

Customer-generated revenue and advertising revenue projections

Customer acquisition or customer retention
EXPECTATIONS

Each group will present for 8-10 minutes (PowerPoint, Keynote, et al.)

Be prepared for questions from fellow students and the instructor

Dress professionally

Use marketing theory to explain the strategy

Creativity is encouraged

Stay within the time limit

Both group members must participate in presentation of the proposal

Turn in hardcopy of all assignments on due date

Upload final materials to Blackboard assignments on due date
4
5
COURSE WEIGHT

Individual Executive Summary – 20 percent (change from syllabus)

Final Project Marketing Plan – 20 percent

Final Project Presentation – 20 percent
5
6
PRESENTATION GRADING RUBRIC
Does Not Meet
Expectations – 1 pt
Content




The slide and
presentation material
does not
demonstrate an
understanding of the
marketing planning
process
The slide and
presentation material
are not original
The content shows a
lack of outside
research
The content fails to
cite accurate
references
Meets Expectations – 3 pts




Slide and presentation
material demonstrate
some understanding of
the marketing planning
process, but not a
mastery
Slide and presentation
material is original
The content
demonstrates some
outside research
All sources accurately
referenced
Exceeds Expectation – 5 pts




Writing/
Formatting


Significant copy
editing and/or
grammatical errors
on the slides (3 or
more)
Formatting shows no
effort to make
content engaging


Slides are free of
editing or grammatical
errors (2 or less)
Formatting shows
some effort to make
content engaging


Slide and
presentation material
demonstrate a clear
understanding of the
marketing planning
process
Slide and
presentation material
is original
The content
demonstrates a
substantial amount of
outside additional
research and
supporting facts that
add value to the
presentation
All sources accurately
referenced
Slides are free of
editing or grammatical
errors
Formatting shows an
effort to make the
presentation engaging
via design, animation
and supporting
material
6
7
Individual
Participation





Logistics
Score/Grade
Range

The student fails to
participate in the
presentation
The student is not
familiar with material
during the
presentation and
requires aid (screen
or notes)
The student is not
professional in
his/her presentation
(engaged; makes
eye contact with
class)
The student does not
participate in the
Q&A
The student is not
dressed
professionally (as if
participating in a
corporate setting).

Group does not
follow instructions as
outlined above

1 – 12 ( < 70) ● ● ● ● The student participates in the presentation The student is familiar with material during the presentation with some reliance on aids (screen or notes) The student is professional (engaged; makes eye contact with class) The student participates in the Q&A, but is not fully knowledgeable The student is somewhat dressed professionally (as if participating in a corporate setting). ● Group somewhat follows instructions ● 13 - 28 ( 70 - 88) ● ● ● ● The student participates in presentation and demonstrates group leadership The student is familiar with material during the presentation and requires no aid The student is professional and enthusiastic (engaged; makes eye contact with class) The student takes leadership in the Q&A and is fully knowledgeable The student is dressed professionally (as if participating in a corporate setting). Group follows all instructions 29 - 36 (90 - 98) 7 8 INDIVIDUAL EXECUTIVE SUMMARY & FINAL PAPER GRADING RUBRIC Does Not Meet Expectations - 1 pt Content ● ● ● ● The submission does not demonstrate an understanding of the marketing planning process The submission does not present a clear proposal The submission shows a lack of outside research The submission fails to cite references Meets Expectations - 3 pts ● ● ● ● The submission demonstrates some understanding of the marketing planning process, but not a mastery The submission presents a clear proposal The submission demonstrates some outside research that supports the proposal All sources accurately referenced Exceeds Expectation - 5 pts ● ● ● ● Writing/ Formatting ● ● Logistics ● ● Score/Grade Range Significant copy editing and/or grammatical errors (5 or more) The assignment is not clearly organized and does not provide clarity ● Student fails to meet due date Student does not submit hardcopy or uploaded to Blackboard ● 1 - 8 ( < 70) ● ● The content is generally free of editing or grammatical errors (5 or less) The assignment shows good structure and is clearly communicated ● The student meets submission deadline The student does not provide hardcopy and digital copy to Blackboard ● 9 - 20 ( 70 - 88) ● ● The submission demonstrates a clear understanding of the marketing planning process The submission is original and offers a unique perspective The submission demonstrates a substantial amount of outside additional research and supporting facts that add value to the presentation All sources are correctly referenced Content is free of editing or grammatical errors The assignment shows good structure and the ideas The student meets submission deadline The student provides both hardcopy and digital copy to Blackboard 21 - 24 (90 - 98) 8 The streaming shakeup A battle for video consumers in 2020 pwc.com/CISvideo Table of contents Introduction ....................................................................................................................... 03 Key findings ...................................................................................................................... 04 Pumping the brakes on the cord-cutting revolution The calm before the streaming storm? The streaming wars are intensifying ................................. 05 .............................................................. 07 ................................................................... 09 How many subscriptions can one consumer really handle? .................... 11 The golden era of streaming could be coming to an end: A few things to consider as the streaming wars heat up in 2020 ......... 13 Get in touch ........................................................................................................................ 15 Consumers have found their video consumption groove, evidenced by three key trends: 1. Cord cutting has come to a lull – consumers who still have pay-TV recognize that it fulfills a need in their video service portfolio. 2. Once a revolutionary shift, streaming has become commonplace – 90% of consumers are watching video content over the internet. 3. Consumers have seemingly settled into their video service portfolios, having curated a selection of services that meets their content needs. However, this might be the calm before the streaming storm. As enticing new players enter the market and content libraries become more fragmented, consumers must prioritize and strategically manage their video service portfolios to ensure access to the content they want or to even know what is available to them. The question for consumers is no longer “How do I watch?”, but “What do I keep and what do I cut?”. Services that don’t provide their audience with a clear value proposition and a seamless user experience run a real risk of attrition in the future. Methodology: In October 2019, PwC surveyed a sample of 2,016 people in the United States, ages 18-59, with annual household incomes above $40,000. We analyzed our results against similar studies we administered in past years, from 2013 to 2018. PwC | Consumer Intelligence Series: The streaming shakeup 3 Key findings • The percentage of total pay-TV users remained stable at 68% in 2019, compared to 67% last year. This is in stark contrast to the 6% decline we saw from 2017 to 2018. • While usage of Netflix continues to surpass that of pay-TV, its usage showed signs of slowing this year. Other players in the market, such as Hulu and HBO Go, continue to grow and gain market share. • Consumers are happy about the state of video today, with 76% saying they are satisfied with their current video services. • Though satisfied today, consumers surveyed are still looking for the next big thing. 50% say they intend on subscribing to new entrants in the market, such as the just-launched Disney+ and Apple TV+ and the muchanticipated launches of HBO Max and NBCU’s “Peacock.” • And consumers know how to get the content they want – 64% of respondents who intend on subscribing to new a new video entrant say they would downgrade or terminate one of their current video services to do so. PwC | Consumer Intelligence Series: The streaming shakeup 4 Pumping the brakes on the cord-cutting revolution In 2019, those who had a tumultuous relationship with cable cut the cord, and those who stuck with it recognize that it fulfills a need in their overall video portfolio. Total payTV subscribers remained consistent at 68%, compared to 67% in 2018. Traditional pay-TV subscribers also remained consistent year-onyear (YOY). In contrast, cord-cutters saw a YOY decline for the first time in five years. Distribution of pay-TV relationships over time 2015 61% 18% 16% 5% 2016 54% 23% 17% 6% 2017 46% 27% 19% 8% 2018 40% 27% 25% 8% 2019 Traditional pay-TV subscriber 39% 29% 23% 9% Cord-trimmer Cord-cutter Cord-never Q: Which of the following best describes your current relationship with pay-TV? Source: PwC Consumer Intelligence Series 2019 video survey PwC | Consumer Intelligence Series: The streaming shakeup 5 Netflix continues to dominate the market and surpass pay-TV in usage; however, their growth has noticeably slowed in recent years. Amazon Prime and Hulu, on the contrary, continue to gain market share. It helps that fewer and fewer pay-TV subscribers are solely watching TV through their cable subscription – 77% are accessing TV content on the internet, up from 72% in 2018. Pay-TV users also account for the lion’s share of streaming subscription growth: • On average, pay-TV users also subscribe to five additional video services in 2019, up from four in 2018. • Cord-trimmers spread their wings the furthest, averaging 10 additional video services alongside their pay-TV subscription; however, they are also the least committed. Cordtrimmers are the most agile at managing their video content portfolios because they are primarily motivated by content – they are more likely to start or stop a subscription because of content. In fact, 40% told us they are actively looking to unsubscribe from at least one of their current services. Pay-TV vs. streaming service subscribers 2017 73% 73% 41% 25% 2018 67% 76% 55% 32% 2019 All pay-TV subscribers 68% 81% 67% 48% Netflix users Amazon Prime users Hulu users Q: Which of the following best describes your current relationship with pay-TV? Which of the following TV/video services do you currently use, have used in the past, or never used? Source: PwC Consumer Intelligence Series 2019 video survey PwC | Consumer Intelligence Series: The streaming shakeup 6 The calm before the streaming storm? Just two years ago, 60% of consumers said the video content space was more overwhelming than ever before. Today, the majority of consumers are decidedly happy: 76% say they are satisfied with their video subscriptions and 73% are satisfied with the quality of original content offered. When asked specifically about the abundance of options in the streaming space today, consumers say they’re “happy,” “fulfilled,” and “excited,” suggesting that most have curated an ideal combination of video content options for their needs. Emotions associated with the abundance of options in the video space today Excited 50% 40% Angry Happy 30% 20% 10% Fulfilled/ Satisfied Anxious Curious Frustrated Confused Average consumer Age 18-24 Age 50-59 Q: Which emotion(s) best describes how you feel about the abundance of options in the video streaming space today? Choose up to three. Source: PwC Consumer Intelligence Series 2019 video survey PwC | Consumer Intelligence Series: The streaming shakeup 7 A happy outlook persists even as the cost for video content rises. In recent years, consumers were optimistic that video content costs would decline, but this year we see that trend reverse – on average, consumers are spending roughly $76 a month on video content, an increase of $5/ month year-on-year. When asked if they expect to pay more or less for video content one year from now, 60% said they expect to pay more. For one, there’s a general expectation that current services will continue to increase their prices; yet, more notably, 33% expect to invest more in new services that are launching this coming year, and 21% are willing to pay more to gain access to ad-free content. Reasons why consumers think they’ll pay more for video next year I expect the prices of my current subscription to go up 64% There are new options on the market that I want to subscribe to 33% I want access to ad-free content 21% My current services don't fulfill all of my content needs and wants 21% I want more access to premium content 18% Q: Why do you expect to pay more one year from now for video content? Source: PwC Consumer Intelligence Series 2019 video survey PwC | Consumer Intelligence Series: The streaming shakeup 8 The streaming wars are intensifying Bottom line – consumers are willing to spend more to get the content they want, which is good news for brands launching new streaming services. Half of all consumers surveyed indicated some level of interest in subscribing to at least one of the new video services to be launched in the next 6-12 months. However, unaided awareness of new streaming services could use improvement. When asked if they could name any new market entrants, 51% of consumers said they couldn’t think of any. When prompted with brand names for level of interest, consumers are especially excited for Disney+ – not surprising given Disney’s significant promotional campaign for their launch this past November. ­ It’s important to note that streaming services scheduled for 2020 launch, like NBCU’s “Peacock” and WarnerMedia’s “HBO Max” may not have yet ramped up their promotional marketing campaigns. Especially in the case of “Peacock,” we anticipate interest to be higher as more details emerge related to the likely adsupported offering. Percent of consumers who plan to subscribe to the following new streaming services Disney+ 33% Apple TV+ 17% HBO Max 11% Discovery/BBC 6% NBCUniversal Peacock 4% Q: Several brands have announced new video service launches in the next year. Do you plan to subscribe to any of them? Please select all that apply. Source: PwC Consumer Intelligence Series 2019 video survey PwC | Consumer Intelligence Series: The streaming shakeup 9 Consumers are largely interested in new streaming services for original and exclusive content. Yet, a closer look at individual services reveals some differences: Family matters Prospective Disney+ subscribers are attracted to its historically familyfriendly selections: • 59% are motivated by original content • 49% are motivated by exclusive content • 28% believe they’ll always be able to find something enjoyable to watch • 22% say they’ll subscribe because the content appeals to their family Ease of use Prospective Apple+ subscribers are motivated by the company’s reputation for easy-to-use products: • 48% say they’ll subscribe because of its original content • 31% are motivated by exclusive content • 30% think it’ll be easy to use Blockbuster hits Primed by HBO’s production history, consumers have high expectations for HBO Max’s expansive content library: • 56% are motivated by original content, like Game of Thrones and Sex and the City • 48% are motivated by exclusive content, like Friends, South Park, and The Big Bang Theory PwC | Consumer Intelligence Series: The streaming shakeup 10 How many subscriptions can one really handle? Though consumers are settled into streaming and are largely happy with today’s video content landscape, rising costs and an ever-greater abundance of options have brought us to the precipice of yet another great shift, in which consumers have the confidence to decide exactly what they want in their video service portfolio. A quarter of all consumers are actively looking to unsubscribe from some of their services, citing a lack of need, perceived worth, and making room for another service as top reasons to terminate. Reasons motivating streaming subscription cancellations I didn’t need it anymore 24% It was too expensive 20% I felt I didn’t get my money’s worth 17% I wanted to try another service 17% It didn’t have a wide enough selection of content 13% I was overwhelmed by the number of subscriptions I had 12% Its original content didn’t suit my taste or was not of good quality 11% New content wasn’t refreshed often enough 11% The show I signed up to watch had ended 10% It removed content that I liked to watch 10% Q: Why did you stop subscribing to these services? Source: PwC Consumer Intelligence Series 2019 video survey PwC | Consumer Intelligence Series: The streaming shakeup 11 Many consumers already know how to get the content they want, strategically maneuvering in and out of subscriptions to curate their library of content. This mindset may likely only increase in popularity as an onslaught of new services enter the market. Nearly two-thirds of consumers who intend on subscribing to a new video service would terminate or downgrade one or more of their current subscriptions to make room for a new one. Actions consumers are willing to take in order to make room for a new video subscription 64% terminate or downgrade one or more current services 36% make no changes to current services Q: Several brands have announced new video service launches in the next year. Would you make any changes to your current subscriptions in order to subscribe to these new services? Please select all that apply. Source: PwC Consumer Intelligence Series 2019 video survey; base: consumers who intend on subscribing to at least one new video service within the next year PwC | Consumer Intelligence Series: The streaming shakeup 12 The golden era of streaming could be coming to an end: a few points to consider as the streaming wars heat up in 2020 • Price yourself right. Video consumers are • Streamline their streaming experience. particularly cost sensitive. Of all possible Having access to a lot of content can be factors, a lower monthly cost has the strongest overwhelming for many, but as we’ve seen, influence on a consumer’s decision to it’s a key ingredient to gaining and maintaining subscribe (or not) to a service, and too high of subscribers. Ease of use and reliability are a cost is largely responsible for subscription linked to depth of engagement and are cancellations. As competing services continue essential for driving retention and preference to crowd the market, pricing will increasingly among video services. Make it easy. Make be key to customer acquisition, churn, product it fun. Make it cool. Make it something sustainability and success. However, don’t consumers will want to tell their friends about confuse this with a race to the bottom. Create a or post on social media. value proposition by pricing your differentiation • Outskill your competition. Is your resource with an entry point that wouldn’t turn away mix capable of delivering next generation curious consumers. strategies and solutions? Companies are in • Design your content strategy with your fierce competition to leverage the newest target segments in mind. Our research tells technologies in order to deliver products and us that the most important factor (after price) services to tomorrow’s market. To produce for growing subscriptions and developing at this caliber, teams will have to address if brand loyalty is still content. If you are sitting their existing resource mix, which has been on a library of any size, monetize it! The barrier delivering today’s products and services based to entry to create digital channels is very low. on yesterday’s capabilities, has the skills, How can you bundle your library into content experience, resourcefulness, and drive to packages that can appeal to audiences? produce for the markets of the future. Use data gathered from the success of those library-based channels to consider investments in original programming that would appeal to your base. PwC | Consumer Intelligence Series: The streaming shakeup 13 • Explore strategic content partnerships. Thinking outside the box with strategic partnerships can help drive, en masse, demographic categories to your products and services. Sports and News are the last mile for streaming and need to be considered within the overall portfolio mix. Whether it be a unique take on a content offering, entry into an adjacent space, or partnering to create a new capability, innovative strategies and risktaking are necessary to stay relevant in today’s and tomorrow’s markets. • Keep a lens on privacy regulations and embrace them. Consumer privacy is at the forefront of companies everywhere, and will become even more prevalent within the media ecosystem. Instead of treating the oncoming PwC | Consumer Intelligence Series: The streaming shakeup wave of privacy regulations as a negative, view it as an opportunity to learn about the consumer and earn their trust. In this highly competitive market where privacy is nonnegotiable, companies that solely look to check the box by doing the bare-minimum without embracing consumer experience may find that their consumers are unwilling to risk their privacy and would switch to a more secure provider. • Consider a tiered model and loyalty programs. Explore loyalty programs that are cornerstones of hotel chains and airlines; for example, customers logging enough viewing hours can either get a discount on a sole-priced model or a free upgrade in a tiered-model. 14 Get in touch Mark McCaffrey US Technology, Media and Telecommunications Leader, PwC US +1 (408) 817 4199 mark.mccaffrey@pwc.com Paige Hayes Technology, Media and Telecommunications Advisory Leader, PwC US +1 (213) 217 3506 paige.k.hayes@pwc.com Gregory Boyer Technology, Media and Telecommunications Partner, PwC US +1 (646) 471 5882 gregory.a.boyer@pwc.com Todd Supplee Technology, Media and Telecommunications Partner, PwC US +1 (310) 210 2228 todd.supplee@pwc.com © 2019 PwC. All rights reserved. PwC refers to the US member firm or one of its subsidiaries or affiliates, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details. 664176-2020. GF. PwC | Consumer Intelligence Series: The streaming shakeup 15 Purchase answer to see full attachment




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