Millennials and their mobile devices are nearly inseparable today. But beyond the stereotypical addiction to
Sports is one of the most intriguing areas where this is happening. To meet millennial demand for more interactivity and information, sports teams are making huge technology investments. And it’s paying off. Studies show that teams that leverage technology to successfully engage with supporters and improve the “fan experience” can create real competitive advantage.
During the recession, many sports teams understandably saw huge declines in ticket sales. Now that the economy has improved, teams have to compete with advancements in home entertainment. A recent Cisco study showed that 57% of fans prefer to watch the game at home. Persuading fans to come to the game in person means changing the game, literally, and that equates to more data and a more social experience. It’s no longer about just being a spectator. Millennial fans want to connect, share and engage as part of the game.
But meeting millennial tech demands does not come without challenges. One such challenge is infrastructure. Most stadiums can’t provide even the most basic wireless connectivity at the required capacity. And millennials don’t tend to put up with weak attempts. During pivotal moments during a game, fans want to share the moment with friends and family with photos and videos. Uploads and replays need to happen seamlessly or the team risks fan backlash. As a result, venues are increasingly investing in totally new, state-of-the-art infrastructure.
Take the NBA’s Sacramento Kings for example. The Kings have a new ownership group and a new arena currently under construction, and unlike in prior years, technology will play a huge role in it all. The Kings ownership group is dedicated to making sure the new arena, which is scheduled to be completed in the fall of next year, will be among the most technologically advanced and “smartest” arenas in the world.
“My focus is determining the overall technology and innovation strategy, all within the context of improving the fan experience,” Montoya said. “We want to ensure the fan experience is frictionless, seamless and intuitive, and we want to use technology to enhance and personalize that experience.”
Some of the options fans can opt-in to include automatic check-in upon arrival at the arena and recognition of special events like birthdays or anniversaries.
“We’ll know through your past experiences that you like our star player or that you like a specific soft drink,” said Montoya. “If it's your birthday you may get a special greeting from the star player or you may get that favorite soft drink for free when you visit the concession stand. It’s all about personalizing the experience.”
The NFL is also busy expanding the role tech plays at their stadiums. The Seattle Seahawks and the New England Patriots are both known for delivering great mobile experiences to their demanding fans, while the San Francisco 49ers and the Dallas Cowboys have recently invested in free, in-stadium wireless access through, for fans that can enable everything from video streaming to real-time seat upgrades and in-seat ordering.
One looking for an investment angle might look no further than the networking equipment companies that are doing deal with sports teams. At the Levi’s Stadium in San Francisco, Aruba Networks and Brocade supplied the networking equipment, Comcast is providing the bandwidth and DAS Group Professionals built an antenna system to boost cellular connectivity. At the AT&T Stadium, in preparation for the 2014-2015 NFL season, AT&T increased their cellular network capacity by 50 percent with 1,500 access points and a 1,300-antenna Distributed Antenna System (DAS), which apparently is enough cellular coverage for a small city. 1The Apps Have It
In-stadium apps, however, might hold the greatest potential for making millennial fans feel they are truly part of the game. In addition to WiFi some stadiums, such as the Dallas Cowboys’ AT&T Stadium, are using beacons that, when used with an app, can give fans an even more powerful, personal experience. The beacons trigger notifications to fans when the fan is in range, alerting him or her to a special sale on merchandise, for example, or a shorter line for popcorn. Levi’s Stadium boasts an app developed by VenueNext that offers fans turn-by-turn directions around the venue and lets people see lines and wait times at the nearest bathroom and concessions.
Have you ever been sitting in the cheap seats looking over rows of empty seats with a better view? Seat upgrade apps have been developed by companies like ExpApps and Pogoseat where you can upgrade your seat instantly, usually at a discounted rate.
Of course all this technology is not only for the fans. There’s also an upside for the teams. Not only do they potentially attract more millennial fans, they also get to collect huge amounts of data about fan behavior, from what they are buying to what they are watching. And as teams gather more information about their fans, the opportunity to use personalized marketing messages grows significantly.
These types of capabilities have the potential to truly disrupt the traditional game experience and I see enormous opportunity for investors to capture profits from the businesses delivering these solutions.
