Cracking the Code: Strategies to Engage Gen Z in Sports Viewing

The declining enthusiasm among young audiences for spectating sporting events poses a significant challenge to the traditional broadcasting rights-based business model, prompting concerns about its sustainability.

This summer on Place de la Concorde in Paris, the quest for Olympic gold will unfold among athletes known as Phil Wizard, Shigekix, and 671. These individuals rank among the elite B-boys and B-girls in the competitive breaking scene, marking the debut of breaking — officially termed competitive breaking — at the Olympic Games in the French capital. This addition to the Olympics aligns with other recent inclusions such as surfing, skateboarding, and sport climbing.

The introduction of such events aims to capture the interest of a demographic that research suggests is gradually losing interest not only in the Olympics but in live sports in general: young people.

There is mounting evidence of a decline in youth engagement with live sports. According to a YouGov report last year, only 31% of global sports fans aged 18-24 watched live matches, a stark contrast to the 75% reported among those aged 55 and above. Instead of tuning in to full matches, younger viewers are more inclined to watch highlights clips or interact with their favorite athletes on social media. Additionally, a significant portion of young sports enthusiasts engage with their preferred sports through video games.

A separate survey conducted by Morning Consult in the US revealed that nearly half of Gen Z individuals — defined as those born between 1997 and 2012 — had never experienced attending a live professional sporting event. Additionally, only 53% identified themselves as sports fans, a lower percentage compared to 69% of millennials. Morning Consult's accompanying report highlighted that "Gen Z’s overall interest in sports remains significantly below that of older generations."

The reasons behind these shifting habits are diverse. They range from the escalating costs of tickets and TV subscriptions, which have become prohibitive for younger demographics, to a preference for consuming short-form content. Another factor is the abundance of alternative entertainment options that were not available when older generations first engaged with live sports.

Regardless of the cause, such trends pose a threat to the long-term sustainability of a business model reliant on multibillion-dollar live broadcasting agreements. These trends have sparked concern throughout the industry.

In response, investors and industry leaders overseeing clubs and competitions are exploring various new strategies. These include reevaluating how live sports are delivered, packaged, and even played. Some optimists see this shift in consumer preferences as an opportunity for sports to broaden their appeal beyond their traditional fan bases, potentially attracting millions of new enthusiasts.

The rapid expansion of women's sports is attracting a new wave of fans. In the United States, the rise in popularity of basketball player Caitlin Clark has been instrumental in smashing TV ratings records for the University of Iowa women’s basketball team throughout the season. The collegiate national championship game, in particular, attracted nearly 19 million viewers, marking it as the most-watched sports program in the US outside of gridiron football in at least five years. Deloitte forecasts that women’s professional sports will generate revenue of $1.3 billion this year, a significant increase from $981 million in 2023.

Gareth Balch, co-founder of consultancy Two Circles, which advises prominent sports entities such as the National Football League, the English Premier League, and the Wimbledon tennis championships, acknowledges the prevailing concerns about the industry's future. He describes the current climate as more of a bear market than a bull market. Nevertheless, Balch remains optimistic, citing hope for the industry's future.

Source: Financial Times