Revolutionizing Customer Experience: How Technology Is Transforming The Sports And Entertainment Industries

Baraa Khamis, Chief Digital & Technology Officer, Ethara.

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Cutting-edge technologies and social media have sparked a profound industry transformation, which is also being driven by customers' preferences. We, as promoters, need to anticipate and respond.

If we are to enhance the overall customer journey and satisfy the ever-increasing appetite for new experiences, we'll need to harness the latest technologies across sports and entertainment to craft and deliver immersive and unforgettable entertainment for audiences.

Industry Transformation Amid Crisis

In the U.S. alone, in the first wave of Covid, sports and entertainment teams, promoters and facilities were facing an estimated revenue shortfall of over $61 billion, according to research by sports marketing agency Two Circles. The pandemic led to the increased use of contactless technology. Sports venues and theatres implemented mobile ticketing and cashless payments to ensure a safe and hygienic experience. While the pandemic has subsided, contactless payment systems still remain, and we can expect to see more advancements in the future.

A Global Phenomenon

Fortune Business Insights predicts the global esports market is projected to grow from $2.06 billion in 2024 to $9.29 billion by 2032. Platforms like Twitch and YouTube have become prominent hubs where esports enthusiasts can watch live matches, interact with players, and engage within the gaming community, and have made esports accessible to a global audience.

The genre's popularity has also seen rising viewership, ticket sales, engagement activity and demand for league tournament infrastructure, according to that same report. Merchandising and sponsorships are also adding financial value.

Revolutionizing Fan Engagement

Equipped with high-speed Wi-Fi, beacon technology and interactive displays, smart stadiums can deliver real-time updates such as player stats, instant replays and concession wait times. Personalized content based on fan preferences and their location within the venue can also be created.

A report by Grand View Research on sports technology trends says the smart stadium segment accounted for over 54% of the total revenue share in 2022—demonstrating the increased popularity of smart venues and their range of benefits to spectators and owners, such as efficiencies stemming from smart lighting, integrated security systems and emergency response management platforms.

Amplifying Fan Connection

Smartphones have had a truly transformative effect on sports and entertainment.

Interestingly, data from Capgemini shows that "over two-thirds (68%) of fans have used a mobile device to receive regular game/player information while watching the game live, and 65% have used mobiles for 360-degree video replays." What's more, the research found that "77% of Gen Z and 75% of Millennials say they prefer to watch sports outside of venues, compared to 53% of Baby Boomers and 32% above 70 years old."

Dedicated mobile apps now offer real-time statistics, livestreaming and interactive features. These apps allow fans to order concessions, purchase tickets and engage in augmented reality games, fostering deeper connections with their favorite teams and artists.

We know well that social media platforms have long been the fundamental drivers to more direct fan interaction. During Abu Dhabi Grand Prix weekend, live posting, exclusive content and interactive challenges helped sustain excitement and deepen fan connections. As a sponsor of this event, we witnessed the 2023 Abu Dhabi Grand Prix attract over 170,000 fans and set new records for spectator engagement.

Redefining Immersive Experiences

There's no doubt the advent of augmented reality (AR) and virtual reality (VR) technologies has significantly enriched the fan experience. Sports enthusiasts can now immerse themselves in 360-degree VR environments that place them at the heart of the action.

Artificial intelligence (AI) is now playing a pivotal role in enhancing customer support. AI-powered chatbots deployed on websites—including ours at Yas Marina Circuit—and apps efficiently address common queries, assist with ticket purchases and provide real-time updates, enhancing the customer experience by minimizing wait times and boosting user satisfaction.

Personalization In Sports And Entertainment

The sports and entertainment industry is harnessing the power of big data and analytics to curate personalized content. For example, data analysis from Deloitte's 2023 Sports Fans Insights survey revealed that fans prefer more interaction with the event while in the venue. In fact, the report adds: "58% of sports fans say that when they are at a live professional sporting event, they wish they had access to the same statistics, analysis, and re plays that they get while watching at home. This figure jumps closer to 70% for Gen Z and millennial sports fans surveyed."

Venue owners and sports teams need to explore the potential of data collection, analysis and metric-based opportunities. Similar to streaming giants like Netflix and Spotify, which use algorithms to suggest content based on user preferences, sports teams and event promoters can use data analytics to offer more bespoke experiences, such as recommending personalized playlists for concerts to highlight specific sporting moments.

Implementation Learning Curves

Of course, the adoption of new technology can present challenges to promoters and venue teams. While new tech can enhance the customer experience, it also offers a steep learning curve to implement.

Augmented and virtual reality requires specialist knowledge and training to integrate. AI-driven personalization—and its large reliance on big data management and machine-learning algorithms—means that innovation can come at a cost.

Even digitizing sales channels through online and social platforms can meet resistance from within the organization as it requires extra training and support to ensure everyone is proficient and maximizing the new opportunities. Additionally, contactless payments need a whole new level of cybersecurity to establish consumer trust, and of course, the transition to smart stadiums and related infrastructure requires a significant investment in terms of both software and hardware.

Embracing Innovation For Unforgettable Experiences

The boundaries of technology are no longer perceived as limitations but as opportunities to deliver even more powerful, memorable and emotionally charged experiences to fans worldwide, whether in person or behind a screen.

As leaders in live entertainment, our goal should be to always create moments that matter while leading the entertainment innovation curve.

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