LaSource Monthly Insights - January 2025
Our Take on the Australian Open’s Animated Livestream & The Rise and Fall of Venu Sports.
Australian Open's animated livestream, a strategic 'loophole' to get around broadcast rights
🔎 Our Take:
The use of animated broadcasts in sports is not a new concept, with similar trials by the NFL, NHL, and even earlier editions of the Australian Open. Enabled by advancements in ball and skeleton tracking technology, backed by sophisticated multi-camera setups, what was once a performance analysis tool has now evolved into a medium for fan engagement.
This innovation reflects an urgent need to capture the attention of younger audiences, especially in tennis, where fan demographics are ageing. While format changes like the Ultimate Tennis Showdown or Next Gen Masters have aimed to modernise the sport, this initiative shows a shift towards content innovation.
The use of YouTube is no coincidence either. The platform continues to dominate market share, particularly with Gen Z and Gen Alpha, who turn to it as the primary source for video content. It also provides opportunities for interactivity through live chat features—an essential aspect of sports media for younger audiences—and for monetising content outside traditional media rights deals.
Though the rendering still faces limitations, with occasional glitches and less-than-perfect accuracy, the reception has been positive. Viewership figures are encouraging, with some streams, such as the quarter final Djokovic vs Alcaraz, surpassing 350,000 views in 24 hours. The initiative has generated buzz, proving that experimental approaches can draw interest.
As this technology matures, it could open the door to entirely new media rights packages and establish benchmarks for how sports organisations create and monetise content. Whether this will fundamentally change how fans consume live sports remains to be seen, but it’s certainly a step towards bridging the gap between traditional broadcasts and the expectations of a digital-first generation.
Venu Sports, the rise and fall of a streaming giant in the making
🔎 Our Take:
In February 2024, the venture aimed to create a sports virtual MVPD (Multichannel Video Programming Distributor), pooling over 50% of all U.S. sports rights from ESPN, Fox, and WBD into one service.
But trouble emerged before its planned launch. FuboTV filed an antitrust lawsuit, alleging anti-competitive behaviour by the three JV companies. Then, in a surprise move almost one year after the JV’s announcement, Disney reached a $220 million settlement with Fubo, merging its Hulu + LiveTV package with FuboTV to create a streaming service 70% owned by Disney.
So why did the JV companies stop what was heralded as the biggest change in the media landscape of the sports industry since decades?
One obvious reason is the legal headaches Venu generated. From the contract terms between the three companies, to how they would share the purchase of media rights, or the fact that every competitor would want to sue them, Venu faced significant obstacles at every turn.
Another possibility is the massive loss of the NBA by WBD to Amazon Prime Video, Peacock and…Disney- the NBA being what WBD brought to the JV table. In other words, with NBA covered, WBD was simply no longer needed. And with the acquisition of FuboTV, the combined service creates the second largest MVPD on the market, behind only Youtube. Clearly a sports media story with winners and losers.
Even though this dramatic year-long saga came to its final chapter, it contributed to changing market dynamics and it led people to reflect on the global media rights landscape. Is the market oversaturated with offers? Are broadcasters truly prioritising consumer needs? Is it in the interest of legacy broadcasters to work together rather than competing with one another?
Venu’s rise and downfall is yet another writing on the wall about the sports media landscape facing a significant challenge of balancing competition and collaboration in today’s crowded media landscape.
LaSource is a sports consulting agency working closely with startups, sports tech companies, and sports and media organisations to create and implement business strategies that accelerate growth and shape the future of the Sports industry. Explore our services by clicking the link below