The business of sports is undergoing tremendous change, impacted by higher costs, economic pressures, and an improved home viewing experience. Cisco’s Internet Business Solutions Group (IBSG), in collaboration with Cisco’s Sports Entertainment Solutions Group, has conducted extensive research to uncover key insights about the expectations and desires of sports fans, and how video and communications technology might bring the best of the “at home” sports experience into the stadium. More info: http://cs.co/IBSG-SportsFan

1. Cisco IBSG
Horizons
T
M
Connected Sports Fan
Insights from the
Cisco IBSG Horizons Study
September 2012
Cisco IBSG
Horizons
For more information:
http://cs.co/IBSG-SportsFan
Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 1

2. Cisco IBSG
Horizons
Key Questions for Franchises and
Venue Operators
1. How do fans currently consume sports?
2. What do they value?
3. Why should fans pay to attend events?
Where will growth come from?
Source: Cisco IBSG, 2012
Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 2

3. Cisco IBSG
Horizons
HorizonsConnected Sports Fan Study
33% 33% Home
1,842 Viewer:
37%
Stadium
Goer:
63%
Consumers
25% 9%
 Self-described sports fans (mean = 8.6 / 10 agreement on
“I consider myself a fan of professional sports”)
 Watch professional sports on TV at least monthly
 68% male, 32% female
Source: Cisco IBSG, 2012
Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 3

4. Cisco IBSG
Horizons
What We Found
 Fans are highly ambivalent about in-venue vs. at-home
consumption experiences
 Aside from economic constraints, no factor explains fan
attendance or satisfaction as much as quality of the
venue experience
 Fans want the best of the at-home experience in the
venue
Source: Cisco IBSG, 2012
Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 4

5. Cisco IBSG
Horizons
A Dual Imperative for Change
Economic At-home
pressures are experience
constraining is improving
growth rapidly, and
customer
behaviors are
changing
What’s needed:
transformation
of overall experience,
not incremental growth
among existing fans
Source: Cisco IBSG, 2012
Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 5

6. Cisco IBSG
Horizons
Attendance Flat in the Face of Economic
Uncertainty, Competition for Mindshare
Fans who have decreased frequency of
attendance over past two years “somewhat”
29% or “significantly” (20% increased, 50% no
change)
Top two drivers for decreased attendance
$$ were economic: higher ticket prices (65%)
and lower disposable income (50%)
Source: Cisco IBSG, 2012 N = 1,165 “stadium goers”
Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 6

7. Cisco IBSG
Horizons
Fans Attend Live Sports for the
Intangibles
0% 10% 20% 30% 40% 50% 60% 70%
Enjoy the atmosphere of the venue 63%
Fun pastime with friends / family 43%
Passionate fan and want to show my support for my favorite
42%
team / athlete
Enjoy being part of the crowd or with fellow fans 41%
Want to create memories of the sports experience (i.e., for
20%
myself, for my kids)
Watching from home does not give an authentic feel for the
19%
game
Attend because a friend / family member loves sports and
13%
wants me to join them
Usually attend only when I receive free tickets 6%
Can see the team warm up / practice before game 5%
Can get autographs / interact with athletes before and after
3%
game
It is helpful for my job (i.e., go to the game with
3%
clients, colleagues)
Other 1%
Source: Cisco IBSG, 2012 N = 1,165 “stadium goers”
Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 7

8. Cisco IBSG
Horizons
A Majority of Avid Fans Prefer
To Consume Sports at Home
8.2 Level of satisfaction with the in-venue
experience (out of 10)
8.3 Level of satisfaction with the at-home
experience
57% Fans who would, on balance, prefer to watch
sports at home
Source: Cisco IBSG, 2012 N = 1,842
Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 8

9. Cisco IBSG
Horizons
The “Single Seat Experience” Limits
Fan Engagement
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Sit too far from the action to see what is happening clearly 39%
Limited opportunities to watch replays 32%
Can only really watch a single view of the game 32%
Hard to hear what is happening 17%
Do not have detailed information about the game
(e.g., statistics, box scores, player profiles) 15%
Miss the action while away from my seat (e.g., using
restroom, purchasing concessions) 9%
Not able to access the Internet (or slow Internet connection) 6%
Other 6%
Hard to stay connected with other things happening in my life
(e.g., keep tabs on kids at home) 4%
Hard for me to interact with other fans or share the experience
with friends 4%
None of the above 20%
Source: Cisco IBSG, 2012 N = 1,165 “stadium goers”
Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 9

10. Cisco IBSG
Horizons
Technology Is Integral to the
At-Home Experience…
It is less expensive 68%
Can “multitask” (i.e., take care of other things around the
home while I watch) 34%
Can watch replays 33%
No traffic or parking delays 31%
Can hear the announcers calling / explaining action 26%
High-definition video viewing experience at home is
good enough or better than event 22%
Can watch at my convenience using my DVR 18%
Can see coverage of other games 17%
No lines for food / restrooms 17%
Other 3%
None of the above 1%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Source: Cisco IBSG, 2012 N = 1,044 “stadium goers” and “home viewers”
Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 10

11. Cisco IBSG
Horizons
…and Underpins the In-Venue Experience
of the Future
HD video throughout the venue would
74% “somewhat” or “significantly” enhance the
game-day experience
7 or higher (10-point scale) on importance of
56% HD video throughout the venue to overall
game-day experience
Source: Cisco IBSG, 2012 N = 1,842
Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 11

12. Cisco IBSG
Horizons
Video Innovation Can Unlock Growth
Opportunities...
Somewhat or significantly more likely to
leave their seats during play if HD video
36% displays were available throughout the
venue
Somewhat or significantly more likely to
28% attend if the venue offered HD video
capabilities throughout
Source: Cisco IBSG, 2012 N = 1,842
Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 12

13. Cisco IBSG
Horizons
…Especially in Critical Fan Segments
Home viewers “somewhat” or “significantly”
21% more likely to attend
Share of premium fans* who would be
35% “somewhat” or “significantly” more likely to
attend
Share of premium fans* who would be willing
45% to pay higher ticket prices
*Premium fans “always” or “often” buy season tickets, ticket blocks, or club-level / box seats
Source: Cisco IBSG, 2012 N = 1,842
Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 13

14. Cisco IBSG
Horizons
In-Venue Mobile Use Is Reaching an
Inflection Point
Fans who are “very likely” to have their
73% mobile phone with them in the venue
Mobile connectivity is “somewhat” or “very
44% important” to overall venue experience
Tablet owners who have already brought a
19% tablet device to an event
Source: Cisco IBSG, 2012 N = 1,165 “stadium goers”
Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 14

15. Cisco IBSG
Horizons
Mobile Is a Platform for Breakthrough
Innovations in Fan Experience
Send / receive text messages
Take photos of the event
Check scores or results
Voice call with family or friends who are also in the venue or watching from home
Keep track of highlights and scores from other games
Access a social network to share the sports experience with others
Access the Internet for a reason other than sports
Record videos of the action
Get information about the venue (e.g., parking, directions)
Get detail on players or teams
Connect to a Wi-Fi hotspot
View pre-game or post-game content
Have a video call with a friend / family member
Get game commentary
Watch replays
Scan a bar code or QR code for a coupon / promotion
Order or pay for something (e.g., sports jersey, beverage)
0% 10% 20% 30% 40% 50% 60% 70% 80%
Already do this Interested in doing this
Source: Cisco IBSG, 2012 N = 1,165 “stadium goers”
Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 15

16. Cisco IBSG
Horizons
Call to Action
 Don’t be fooled: good enough, isn’t
 Amplify the intangible—replicate the at-home
experience in the venue
 No “silver bullets” for growth—enable innovation on
multiple fronts through connectivity
For more information:
http://cs.co/IBSG-SportsFan
Source: Cisco IBSG, 2012
Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 16

17. Cisco IBSG
Horizons
For more information:
http://cs.co/IBSG-SportsFan
Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 17