Web 3.0 technologies set for growing role in sports ecosystem in 2023, says Seven League – SportsPro Media
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The IMG-owned digital advisory specialist Seven League has released its annual digital trends forecast for 2023, including a prediction for a significant evolution in the adoption of Web 3.0 technology in the sports industry.
Seven League is confident concerns regarding the complexities of Web 3.0 would gradually subside, but asserts that the optimal way to use the technologies is to foster fan communities. The agency pointed to its work with Formula One team Red Bull Racing to launch a Discord server to grow the fanbase for the racing and esports teams, as well as their non-fungible token (NFT) projects.
Despite a slower conversion of fans to Web 3.0 technologies, which was impacted by the ‘crypto winter’ and the collapse of cryptocurrency exchange FTX, Seven League cited the inclusion of NFT activity by Meta and Apple on their respective platforms as positives for the sector. It pointed at areas such as ticketing, fan engagement and resaleable digital merchandise, as well as loyalty programmes, that were ripe for greater evolution using Web 3.0 technologies.
The report also stated: ‘It’s also likely we’ll stop using phrases like NFTs and move towards more fan-friendly language. As it becomes more common, there will be less inclination for anyone to focus on the complexities of the technology, and instead think about its use.’
The digital firm also predicted a strong year for the integration of artificial intelligence (AI) into sports content. With the industry set to see early experiments using motion capture technologies and gaming engines to recreate sporting moments miles away in different environments. Hyper-realistic clips of historical moments, 3D content and alternative commentary formats using AI-generated speech were also all highlighted as areas to watch out for in 2023.
However, Seven League did caution that these trials would in turn lead to debates on copyright and intellectual property (IP), with artificially generated content trained on proprietary IP a potential legal issue to overcome. Athlete image rights and the genuine legitimacy of content are pointed out as key conditions to monitor and police.
In terms of other predictions, Seven League said that sports needed to improve its own digital standards to remain attractive for streaming services, showing broadcast partners evidence of a highly engaged fan community. It also said bolder innovation in content was needed in order to stand out from the increasing number of sports jockeying for the attention of fans.
When taking a direct-to-consumer (DTC) approach, the digital firm raised the point that sports companies needed to consider enlisting the support of a trusted third party to help facilitate growth, rather than venturing out on its own.
Greater engagement with fan communities, on platforms such as Reddit and Discord, and a greater willingness to invest in women’s sport were additionally said to be on the horizon for the industry in 2023.
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