Morgan Stanley Research looks at how changes in demographics, ownership, and distribution can boost tech adoption to revolutionize the global sports industry.
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Cesar Medina: Welcome to Thoughts on the Market. I’m Cesar Medina, Morgan Stanley’s Latin America Technology, Media, and Telecom Analyst. Today – we discuss what’s driving the digital revolution in global sports. And what it means for fans as well as investors.
It’s Monday, August 11th, at 10am in New York.
These days, watching a sporting event at home usually means streaming the big game on a large 4K HDR screen. Maybe even 8K for premium events. You might access real time stats from a supporting app or social media on a secondary device. Maybe even have a group chat with friends.
But imagine a game with real-time personalized stats. Immersive alternate camera angles. Or even experiencing the match from a player's perspective—all powered by AI. These innovations are already being tested and rolled out in select leagues.
Global sports generates half a trillion dollars in annual revenues. Despite all that cash, until very recently the industry was slow to embrace digital technology, lagging behind movies and music. Now that’s changing – and fast.
So, what’s driving this transformation?
Three powerful forces are closing this digital gap. One – younger, tech-savvy audiences demanding more immersive and personalized experiences. Two – new distribution models, with digital platforms stepping into the arena. And three – institutional investment, bringing capital and a push for modernization.
You might ask – what does this all mean for fans, investors, and the future of entertainment?
Let’s start with fans. Today’s sports fans aren’t just watching—they’re interacting, betting, gaming, and sharing. And younger fans are leading the charge. They are spending more time online and expect hyper-personalized content. They're more interested in individual athletes than teams, and they engage through social media, fantasy sports, and interactive platforms.
Surveys show that fans under 35 are significantly more likely to spend money on sports if the experience is digital-first. Some leagues have seen viewership jump by 40 percent after introducing interactive features. Others are using AI to personalize content, boosting engagement and revenue.
Digital transformation isn’t just about watching games though—it’s about reimagining the entire ecosystem. When it comes to live events, smart venues are using AI to adjust ticket prices based on weather, opposing team, and demand. Some are even using facial recognition for faster entry and purchases. Streaming platforms are making broadcasts more interactive, while combating piracy with predictive tech. As for engagement, fantasy sports, esports, and betting are booming. AI-driven platforms are helping fans make smarter picks—and spend more.
Altogether, these innovations could boost global sports revenues by over 25 percent, adding more than $130 billion in value.
While North America leads in monetization, Emerging Markets are catching up fast. In India, Brazil, and the Middle East, for example, sports franchises are seeing double-digit growth in value—sometimes outpacing traditional media.
And here’s the kicker: many of these regions have younger populations and faster-growing digital adoption. That’s a recipe for serious growth. Meanwhile, niche sports and women’s leagues are also gaining global traction, expanding the definition of mainstream entertainment.
Of course, this transformation of the sports industry faces real hurdles—technical expertise, budget constraints, and cultural resistance among coaches and athletes. But the incentives are clear. And as more capital flows into sports—from private equity to sovereign wealth funds—digital transformation is becoming a strategic priority.
So, what’s the biggest takeaway?
Global sports is no longer just about what happens on the field. It’s about how fans experience it—on their phones, in their homes, and in the stadiums of the future. So whether you’re an investor, a fan, or just someone who loves a good underdog story, this is a game worth watching.
Thanks for listening. If you enjoy the show, please leave us a review wherever you listen and share Thoughts on the Market with a friend or colleague today.
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