Featured image credit: Jimmy Conover on Unsplash
A new report from sports marketing agency Two Circles has predicted that the global sports industry will be worth $260bn (£203bn/€238bn) by 2033.
The report explores how organisations across the sports industry can “ride the wave” over the coming decade. According to Two Circles, the sports industry currently boasts $159bn in annual revenues generated by sports intellectual property owners, and this is expected to increase significantly.
Sports properties are forecasted to grow by +5% CAGR (Compound Annual Growth Rate) between now and 2033, with sports set to overtake traditional television for revenue generated through advertising and subscriptions.
The report states that the growth will be fuelled by the biggest sports properties, with 55% of the top 20 organisations projected to outperform the market.
Two Circles works with more than 400 sports properties around the world and manages fan data interactions on behalf of its clients.
Gareth Balch, chief executive and co-founder of Two Circles, said: “By knowing fans best, sports organisations will build better sports products, experiences and opportunities, creating better value for everyone. Ultimately, the fans will be the real winners of this exciting growth in years to come.
“As the global sports industry stands on the brink of this transformative growth, the Two Circles magazine serves as both a forecast and a call to action. It is essential for sports IP owners to adapt, innovate, and focus on the fan experience to realise their full potential in the coming decade.”
The report identified three primary levers that will drive the growth over the next decade: more fans, diversified sports experiences, and direct value capture. Two Circles said the first lever will hinge on the growing engagement of audiences with sports content.
Sports properties are also predicted to evolve their offerings to present more varied experiences, engaging broader demographics and better serving existing casual fans. Additionally, sports IP owners are expected to leverage direct relationships with their fan base and business partners.
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