Subscriptions make the world go round. This isn't news to anyone who watches their favorite show on Netflix, Amazon or Hulu. Interestingly enough, subscriptions have also been around for sometime, as magazines including Sports Illustrated and GQ have made their living off of annual subscriptions. Simply put, you get what you pay for with subscriptions, but subscriptions have also changed with the rise of digital technology.
Want to try a service but not sure you want it? Start a free trial for Youtube TV, Sling TV and cancel before a week is up. Spotify Premium takes advantage of this model by even removing subscriptions from your streaming if you pay 5.99 a month or less if you have a family plan. Ordering groceries? Try Hello Fresh or Blue Apron, and if you love it, start paying them a monthly fee and life is good. More than ever, consumers have the ability to pay for things that they love on a month-to-month basis. This type of occurrence has become so ingrained within society that it is easy to think of it as another monthly expense item similar to a monthly internet bill. (Because no one has cable and everyone needs 400 mbps to stream their favorite show, of course) However, if you do not want to subscribe to a service anymore, you can stop paying it and your service will end. Think of subscriptions as an added benefit to your life. This is where I see sports utilizing subscriptions to attract fans, especially the casual one.
Tickets for sporting events fall in a few categories: day of game tickets, season tickets and group tickets. (that are a lot of time purchased by corporate sponsors for company outings or community groups) These ticket offerings are here to stay, but there does seem to be a major shift to month-to-month access for entertainment that will inevitably seep into sports. Let's be clear though: unless you are a hardcore season-ticket holder that has had season tickets for 30 years, the marketplace is undoubtedly very different now for fans looking to enjoy live sports. There are so many entertainment options available, and for some consumers, watching sports or other entertainment at home is more convenient and exciting than going to a game 41 or 81 times year. This is the argument against buying season tickets, but is where subscription-based ticketing model comes into play for the in-game experience.
The San Antonio Spurs announced in late 2018 that they are releasing a subscription-based mobile monthly ticketing package for $44.99 a month that allows fans standing-room only access to Spurs games. (Sport Techie's paywall allows for 6 free articles, so browse wisely) While this might sound like a lot at first glance, think about it: you won't be paying any more than this monthly price, and they can anticipate this monthly cost ahead of time. They will also know when they can cancel if they find themselves not using it, compared to paying money for an entertainment option they may or may not use. Millenials are known to be non-committal is many areas of their lives, and paying for things far in advance with the rise of student loans and other expenses and entertainment options is just not as realistic as it was 20 years ago with season tickets.
Sport Techie agrees: 'The mobile subscription packages are intended to attract millennial-and-younger demographics with lower-cost ticketing options." While this pricing tier is meant for a younger audience, it seems that this type of model could be advantageous for people once they get older and don't care for other ticketing plans. Season tickets are not going anywhere, but there might be less familiar faces of season ticket holders on a game-to-game basis if there are more conveniently priced options for fans including mini plans and flex packages. When thinking about how to price and market this monthly subscription-based ticketing model, hockey, basketball, baseball and soccer can all benefit greatly from the amount of home offered compared to football, where there are 8 home games, not including playoffs. Pricing this package anywhere from $19.99 to $34.99 is my recommendation and can be altered once an analysis is done on consumers' price sensitivity and sales for this package.
Of course, with any ticketing model there needs to be a cost-benefit analysis. There might even need to be a cap on subscription based tickets if there is a decline in other areas of ticketing. This model works best as a supplement, not something that will replace the lifeblood of sports organizations' ticketing measures. That said, it could be a valuable asset if pricing is as much or more than say, a half season plan for an NFL team similar to the New York Jets who offered a $725 monthly "boarding price" plan that gave fans access to home games at different areas of stadium. (package decreased to $375 for 300 level seating the next season) The A's launched a monthly ticketing service in 2017 through the MLB Ballpark App for $19.99 a month. The Miami Marlins offered a similar pass in 2018 during the holidays for $49.99 a month.
Taking it a step further, tying in this subscription-based package to a team's app is the perfect way to gather data, engage users to use the app more and ultimately, leverage the team's product and brand in a cohesive, easy-to-use way. When thinking about my own brand affinity and purchasing habits, a few that come to mind are companies that have an extremely easy-to-use interface and seamless experience within their apps. (Spotify, Google, Amazon Video)
Team's could set up push notifications and in-app content including exclusive video content, provide users with additional rewards points for coming to games and in-stadium discounts on food, drinks and merchandise and pre-sale access to non-game events including concerts. Doing this will provide more value for fans who may be considering this monthly-subscription next to their Netflix subscription that boasts thousands of shows and movies at their fingertips. We will have to watch and see how it all unfolds, but prepare to see more teams experiment with monthly ticketing plans that appeal to younger fans and attract new ones.