Meta-Sports: The Way the Metaverse will Transform the Sports Industry.

DISCLAIMER: The use of generative AI tools was applied in the content of this blog. Chat GPT and Bing AI were used for the creation of the structure and relevant topics to cover. The information provided by these tools was double-checked through reliable sources available in the internet to ensure that misinformation will not be spread through this blog. The AI tool Pictory was used to generate the informational video that can be seen later in the blog post.

"Welcome to the era of the metaverse, a digital realm where virtual and physical realities converge, enabling immersive and interconnected experiences like never before." A good majority of you might feel like you've heard a similar statement to the one mentioned previously, this statement was actually generated by the AI tool Chat GPT. The prompt asked for a brief explanation of what metaverse and an immersive virtual experience is, and how they are connected to relevant technologies such as AR and VR. The key here is to understand that the metaverse represents a collective 3D virtual space where individuals can interact, socialize, work, and play in a simulated environment(McKinsey & Company, 2022). It is a place where technologies like VR or AR can be utilized to enhance the immersive experience and combine or mirror the physical world with a "digital twin world" enabling interaction in different ways.

I speak personally when I say that the sports industry is one of the greatest inventions in the rich history of humanity. However, I believe I do speak for a considerable portion of the population when I say that athletic competition, the human emotion and the euphoric experiences produced by sports are something that connects the world and makes us feel a sense of pride, unity and competition. The sports industry encompasses a wide range of activities, organizations, and businesses that revolve around sports and athletic competition. It includes professional sports leagues, sports teams, athletes, sports media, sports equipment manufacturers, sports facilities, and more. The industry is substantial in size, with its global value estimated to be $512 billion dollars (GlobeNewswire News Room, 2023). The sports industry generates revenue through various channels, including ticket sales for live events, broadcasting rights for television and digital platforms, sponsorships and endorsements, merchandise sales, licensing agreements, and advertising.

At this point you may be wondering how it all connects. I have spoken about metaverse and I have spoken about the sports industry, where this all connects is how the use of the metaverse is and can be utilized to transform the sports industry. The opportunity to explore this new virtual frontier allows for a whole new range of possibilities. Including the creation of new business models, discover new forms of revenue and provide fans with never-before seen forms of engagement and competition.

The evolution of sports fan engagement has witnessed a remarkable transformation over the years, driven by advancements in technology and changing consumer expectations. In the past, fan engagement primarily revolved around attending live sporting events, watching games on television, and reading about sports in print media. The advancement of technologies such as social media gave fans a new outlet to engage with their favourite teams and players. Now, with the emergence of the metaverse and related technologies like AR and VR, new immersive experiences have been made possible. For example, the NBA courtside with Meta. This partnership enables basketball fans who own an nba league pass account to watch the game through VR. This experience enables you to have the best seat in the arena while being in the comfort of your home and saving yourself a couple thousand dollars in the process. Additionally, we can see the use of virtual stadiums, as Manchester City announce a partnership with Sony in which they will create a virtual replica of the Etihad stadium inside the metaverse (Manchester City FC, n.d.).

Sports gaming has caught the eyes of many as popular games such as Fifa or NBA 2k have developed to a point where it almost feels like you are watching a live game. As these games and their player base developed, the world also saw the rise of Esports, where gamers could showcase their talents and skills in a competitive and profitable environment. The metaverse allows for games like these to go to the next level. Providing a truly immersive first person experience, that could provide to a new industry merging physical aspects of real world sports with the virtual aspect of Esports.

Advertising, endorsement deals and brand building are a couple of the most important aspects for a player or team to have in order to increase their revenue in the sports industry. The metaverse opens the door to a whole new world of advertising possibilities, for instance, an endorsement could be made between a player and a metaverse business where the player would have a digital copy of themselves in the form of an AI avatar. Deals like this will be beneficial for both parties as the business gets to have the AI avatar in the metaverse 24/7, while the player won't have to actually go anywhere or even interact. The possibility to generate and sell digital merchandise is another way to utilize their already existing brands to generate new sources of income.

An important thing to consider whenever exploring the opportunities of a new technology is the challenges that are associated. First, the ability to create a truly realistic immersive virtual experience, as realism is crucial to the success of any metaverse recreation. Secondly, it is crucial to be aware of the ethical aspects of a metaverse business and experience, you are dealing with personal information and must keep that data secure so it doesn't fall into the wrong hands. In the third place, it is important to be aware that this is an unregulated technology, and there are still no laws in place that specify what are legal guidelines of metaverse businesses. However, issues like IP and copyright infringement are very possible to commit which makes due diligence in this subject very important.

In conclusion, the metaverse opens a world of new possibilities to the sports industry, it will change the way teams and leagues interact and engage with their audiences. Additionally, it will provide a range of new business opportunities for players with an existing fan base, empowering them to promote their brand and receive endorsements in way that we haven't seen before. I don't believe that any actors in the industry should be afraid of this new technology, instead they should all embrace it as it will likely have a massive impact in the coming years.

References:

GlobeNewswire News Room. (2023). Global Sports Market Forecast to 2032: Sector is Expected to Reach $623.63 Billion in 2027 at a CAGR of 5%. [online] Available at: https://www.globenewswire.com/en/news-release/2023/05/03/2660537/28124/en/Global-Sports-Market-Forecast-to-2032-Sector-is-Expected-to-Reach-623-63-Billion-in-2027-at-a-CAGR-of-5.html#:~:text=The%20global%20sports%20market%20grew.

Manchester City FC. (n.d.). SONY. [online] Available at: https://www.mancity.com/club/partners/sony.

McKinsey & Company (2022). What is the metaverse and where will it lead next? | McKinsey. [online] www.mckinsey.com. Available at: https://www.mckinsey.com/featured-insights/mckinsey-explainers/what-is-the-metaverse.‌

www.oculus.com. (2021). Go Courtside in VR with NBA League Pass Games in Venues on Oculus Quest | Meta Quest Blog. [online] Available at: https://www.meta.com/blog/quest/go-courtside-in-vr-with-nba-league-pass-games-in-venues-on-oculus-quest/ [Accessed 17 Jun. 2023].