Sociologists and anthropologists call it cultural lag. As a rule of thumb, it takes 20 years for a new technology or transformative policy to be embraced by a society. Some early adopters embrace the change almost immediately. For some strange reason, the early adopters are younger than the older laggards.
Americans are facing so many cultural upheavals that our heads are spinning. We are now confronted with a cultural lag in the way we consume sports.
A slight majority of Americans born before 1960 still have landline telephones. About 30% of those born between 1961 and 1980 also have landlines. Needless to say, most people born after 1980 do not have landlines. 57% of Americans older than 16 still watch traditional broadcast television. Predictably, 16 to 24-year-olds split their viewing between traditional and streaming television. For many reasons, overall television viewing increases with age.
People born before 1980 tend to watch news, sports, dramas, and comedies. Those born between 1981 and 2012 tend to watch reality TV and dramas about the younger generations. Interestingly, the percentage of Americans who watch sports on television increases with age. Thus, 82% of those 65 and older watch sports, while only 54% of those 18 to 29 do so. This is counterintuitive because most of us assume that younger people (particularly men) love to watch sports.
Undoubtedly, to attract more young viewers, ESPN has recently announced a new all-inclusive sports streaming service. I am sure there will be a transition period, and there will be some mandatory viewing requirements (e.g., teams must allow the local viewing areas to see home games). However, this new streaming service might wreak havoc with traditional cable and satellite television. ESPN’s action is likely to cause conventional television viewers to change their habits and be the death sentence for traditional television. Traditional television is expected to become like old-school landlines. Traditional television delivery services like cable and satellite services that send bills of $170 or more to their customers each month are likely to suffer catastrophic declines in revenue over the coming years.
There is one fly in the ointment. The people who watch more sports are Baby Boomers, born before 1965. This age cohort is also less likely to use streaming services. So, ESPN is rolling out streaming services, but its most captive, older audience is less likely to use streaming. However, going full bore with streaming is their way to attract younger audiences.
There is another dimension to ESPN’s rollout. A new feature called “StreamCenter” will synchronize a customer’s app and television. Under the covers, ESPN will use AI and personalization to make ESPN’s streaming service HIGHLY ADDICTIVE. They intend to add gambling, selling merchandise, and getting the daily “inside” scoop and rumors on their favorite stars. These services will be PERSONALIZED to individuals because the ESPN AI will know everything about their marks customers. Like any addictive service or product, once the AI realizes you have an interest in betting on games or buying $100 logo jackets, the AI will be unrelenting in its pursuit of your money and excitement about its services.
Like most streaming services, there is an à la carte pricing structure. The basic service will cost less, but if we desire the complete package, then it will cost a lot more.
So, fasten your belts, sports fans. It’s going to be a bumpy ride!
American sports entrepreneurs need to find ways to pay all the superstars in professional football, basketball, baseball, and all the other sports. There are also superstars in the college ranks, and now they can be paid like professionals.
