“Traditional” Beats “New” When It Comes to Live Sports (Despite Red Bull)

This past fall the Red Bull Stratos jump had at its peak 8 million concurrent views on YouTube. That annihilated the streaming of last years Super Bowl which had 2.1 million uniques which was on NBCSports.com. No one knew what would happen when the streams hit that 8 million mark and there was some genuine concern among the engineers but the system held up. A major part of the system though hasn’t held up well this past year.

Amazon Web Services (AWS) is rapidly becoming a leader in the cloud space. According to a Bloomberg report by Cory Johnson AWS will generate $1.6 billion in revenue in 2012. It’s not all fun and games for AWS though. Christmas Eve saw Netflix go down. According a Wall Street Journal article 95% of Netflix computational and storage needs are handled by AWS. Netflix in turn accounts for 33% of peak downstream residential internet traffic in North America so if AWS goes down, which it’s done a few times this year, it’s a problem.

If YouTube (who’s parent company is Google) would have failed during the Red Bull Stratos jump one could argue about the level of consumer outrage it would have received from the public. If YouTube was hosting the Super Bowl or the BCS National TItle Game on the other hand and the stream fails then there is a pretty good chance that the level of consumer outrage would be significantly higher.

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For all of the the mocking and criticism that goes toward broadcast television, cable and satellite providers they have something that people will continue to pay for, reliability. If the Super Bowl is on you can bet that you are going to be able to find a reliable “old school” way to watch it. The broadcast, cable or satellite signal does not get weighed down by the amount of people using it. It does not need to be ‘throttled down’ just to be able to continue showing you the game or event.

Strip away the economics of this argument and just look at the stability of the platforms and on that alone it is easy to see why live sports will continue to be the lifeblood of “traditional” outlets like broadcast, cable and satellite. While leagues like the NFL, MLB, NBA, MLS and UFC will continue to offer live streams of games and events they will not be able to deliver the same experience or reliability night in and night out like the “traditional” outlets can.

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