Talent and sports agency Endeavor is thinking small to grow big. The behemoth company, formerly known as WME-IMG, is eyeing the niche sports streaming market as a way to expand beyond its core business.
According to The Information, Endeavor, which already owns and streams bull fighting and martial arts properties, has begun talks with the World Surf League. This comes after a $250 million acquisition of streaming technology firm NeuLion, which has contracts with the NBA, NFL, and UFC.
Niche sports are proving to be a profitable business for streaming. The National Lacrosse League, which recently penned a deal with Turner’s Bleacher Report Live, drew an audience of 1.2 million viewers for its box lacrosse playoff series last year.
“We’re a lot more affordable. We’re less expensive. We’re an emerging sport with an emerging demographic,” said NLL commissioner Nick Sakiewicz.
While streaming niche sports has yet to become a surefire success for broadcasters, advances in technology are lowering costs, reducing the investment needed to provide a quality stream.
Endeavor will also have an advantage in acquiring viewers through social media, able to leverage the reach of stars within its agency. A refined ability to target viewers is a critical element to winning in this space, said Trevor Doerksen, founder of Mobovivo, a company that provides solutions that gamify the viewer experience for clients such as ESPN and the Lakers. “In the past, we couldn’t target the way we can today,” Doerksen said. “Americans can target Americans in niche sports using social media in ways that are effective today more so than five years ago.”
SportTechie Takeaway
This is not the first time streaming has revolutionized an industry. Look no further than the music sector to see how record labels increased profits by streaming in the wake of illegal downloads. By making music more accessible, the industry focused on creating super fans for niche artists, and moving those fans along a purchase pipeline. A similar movement could be on the horizon in sports. And with Apple possibly jumping into the sports streaming game, the ecosystem might already be in place.