Monday, October 14, 2013

Wiring the Stadium

Attending a Bears game at Soldier Field this week, I was surprised at the advancement of mobile capability in a stadium I have often frequented over the years. No season before had wi-fi been available stadium wide. It is a major investment for most teams to equip the stadium and outfit it for wireless connection stadium wide, particularly capabilities normally demanded like video streaming or constant reloading of web pages.
The Sporting Kansas City soccer team recently made the most significant advancement in such technology. They built an outdoor stadium that holds approximately 18,000 people for $220M, $6M of which was spent to wire the stadium for internet connectivity. That may seem like a small overall percentage of the investment, but consider that the stadium is being designed and constructed to support the network.  Trying to rewire a currently existing stadium or arena would be a much costlier expense. Then consider that 18,000 is nowhere near size you will find in any NFL stadium and in most major college football stadiums. Finally, the largest expense for the any team will not be made in initial investment but the ongoing transfer of data in the long-term.

These costs have historically been unbearable, deemed not worth improving the fan experience by increasing the bandwidth to support mass video download and app usage. In interviewing some teams recently, most don’t seem to have plans to outfit the stadium and are opting for different, lower cost solutions such as hot spots or geo access.

In addition to just improving the experience, there also remains a large opportunity for teams and brands to locate and advertise to mobile users who are in the stadium. Kansas City Sporting is unveiling its new stadium alongside a fully immersive  app that will scan tickets, provide food ordering, bathroom and parking maps and info, and discounts from partners throughout the game. Ads and other branded content will be delivered throughout the game. They are now trying to further monetize this app by providing the technology to other sports teams, and some have already signed up.


Slowly but surely, over the next few years I would expect most teams to begin to make such investments as the Bears and Sporting KC. The consumer will soon expect wi-fi everywhere and the frustration can take from the experience so much so as to deter people from attending. If tied in with proprietary apps and well strategized, this advancement can bring greater delivery of sponsorship messages, discounts, etc. 

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