THE DIGITAL TRANSFORMATION OF THE SPORTS INDUSTRY

Abstract

The sports industry has undergone a significant transformation driven by digital advancements and the emergence of social media platforms. These platforms, including Twitter, Instagram, and TikTok, have redefined fan interactions, allowing sports organizations to engage with their audience directly and share exclusive content, thereby enhancing brand loyalty (Moyer et al., 2015; Thompson et al., 2018). Moreover, the digital landscape has opened new revenue streams, such as subscriptions to over-the-top platforms, advertising, and sponsorships, particularly in the booming esports sector, projected to reach $3 billion in annual revenue (Lehnert et al., 2020). The evolution of competitive gaming has attracted considerable investment and global viewership, often surpassing traditional sporting events (Cranmer et al., 2020). However, this digital transformation has brought challenges, including digital piracy, which undermines legitimate revenue sources and hinders investment in sports development (Eisend, 2019). Additionally, the monopolization of content distribution by a few dominant platforms poses concerns over competition and market diversity (Naha & Hassan, 2017). The literature highlights the need for innovative strategies to combat piracy and promote equitable access to sports content (Stephanie et al., 2012; Zheng & Mason, 2018). Policymakers and sports organizations must collaborate to create a sustainable digital environment that maximizes technological benefits while addressing these challenges. Overall, the ongoing digital evolution presents both opportunities and obstacles, shaping the future landscape of the sports industry and influencing fan engagement.