Hey everyone - welcome to today’s edition of The SEG3 Report!

It’s all the threes (#33) for any of you bingo enthusiasts out there…

We have quite the varied coverage today - with a focus on shared reality venues, UGC and web3 loyalty programs whilst diving into the NFL & Cosm’s partnership, Fortnite being used as the latest battleground in the US Presidential Election & the Cleveland Cavaliers launching a web3 rewards program, Cavs Rewards.

Contents: Edition #33

• NFL partners with Cosm for shared reality

• Harris & Walz campaign release Fortnite map called Freedom Town, USA

• Cleveland Cavaliers launch web3 loyalty program ‘Cavs Rewards’

Without further ado, let’s get into it…

NFL partners with Cosm for shared reality experience

Cosm, an immersive entertainment company, has partnered with the NFL to provide a unique "shared reality" experience for live game broadcasts in 2024. Using 8K resolution and a 100-foot, 180-degree domed screen, Cosm’s venues in Los Angeles and Dallas leverages a host of technologies (Spatial Audio, Game Engines, AI etc) to deliver a stadium-like feel for fans.

Why You Should Care

In the week that news broke that Apple plans to stop production of the Apple Vision Pro by the end of 2024, it’s another form of immersive experience that is catching the attention of sports leagues and their fans…

Cosm; purpose built venues that play host to a 100-foot, 180-degree domed screen with 8k resolution, has acquired the rights from the NFL to produce and distribute games at its venues until the end of 2024.

Cosm has had some good PR recently - with Twitter losing its mind when videos of the experience first broke during a Man Utd & Fulham game in August.

And since then, they have raised an additional $250m to acquire new content (like the NFL), accelerate the development of new venues (like in Atlanta) and broaden further into other areas of entertainment (music, esports, art etc).

So, why is this proposition attractive to fans?

In my mind, the main element that helps to make live sports events the spectacle they are is the shared ecstasy and toil that the game brings. You get boat-loads of this watching Arsenal…

It’s the collective watching, experiencing and reacting to what you’re seeing that is the secret sauce that has kept drawing in fans for decades.

But, it has, perhaps until now, been largely impossible to replicate a similar kind of atmosphere and shared experience outside of the stadium. 

The games are broadcast - sure, but it has lacked the same ‘umph’. Cosm, with the seismic screens, enhanced audio capabilities and its group setting feels like it has the potential to be the happy median.

And fans in the US seem to be agreeing with their wallets - with tickets for the first game of the World Series featuring the Los Angeles Dodgers and the New York Yankees sold out in seven minutes, and the second game selling out in just one minute.

That’ll tell you there is demand, which is why the likes of the NFL are interested.

So, what is the attraction for sports brands?

Simply, it is engaging and monetising the 99% of the fanbase that can’t make it to the stadium. We’ve discussed this a lot in this newsletter, but it truly is the holy grail for sports brands and something that is very important to their future growth.

We all know there is only a finite amount of seats that can be sold each week. We all know there are some fans that’ll never make it to the stadium IRL. So providing experiences that services these fans is just is becoming just as important as the 60,000 in the stadium.

And so the NFL’s collaboration with Cosm (as it stands) looks like it can be a win-win for them given it will:

A) Drive guaranteed new revenue for them from the rights deal

B) Deliver an entertaining, communal environment for their fans to experience the game, without the NFL having to invest in technology and infrastructure to make it happen themselves

C) Allow the NFL to reach into new markets across the US (and you’d imagine, beyond the US) given Cosm’s aggressive plans to launch new sites.

Overall - there’s a definite need for technology to be leveraged to enhance various elements of the fan experience, and immersive tech will have an important part to play in making that a reality, but my thoughts are that those businesses that focus on how to amplify the social element of sports will be the ones that are the most successful.

And with Cosm, they certainly seem to be living by that mantra and now have a pretty large moat and tailwind to capitalise on and take the concept globally, which will inevitably see them welcoming more sports, entertainment & gaming brands and their fans through their doors over the coming months and years.

Harris & Walz campaign release Fortnite map called Freedom Town, USA

Vice President Kamala Harris has introduced a custom Fortnite map titled "Freedom Town, USA" as part of her 2024 campaign, targeting young gamers ahead of Election Day. The map, accessible via a unique code, is designed to immerse players in themes related to her campaign, including support for small businesses and affordable housing. The initiative, supported by a number of popular Fortnite streamers, aims to engage younger voters and offer a creative political message in a familiar, interactive format.

Why you should care?

I think the interesting thing about this story is the shift we’ve seen during the duration of the election towards new media channels being the primary channels that this presidential campaign is being fought across.

Social has undoubtedly been the place of conversation. Elon Musk has made sure of that…

Podcasts have replaced talk shows for their relevance and reach. Trump carving out hours to sit with Joe Rogan is a nod to the power and influence of creators and their communities…

And now the Harris campaign targeted voters through games. We all know storytelling through interactive and games is becoming the medium of choice for many brands, but now also presidential candidates too…

Although there isn’t too much to glean from this activation given it is extremely short term and election campaigns are scattergun in their approach to media at best, the fact stands that games and creators are being utilised by both sides to drive conversation for the running of perhaps the most powerful office in the globe, which shows just how firmly cemented creators and games alike have become as part of any successful marketing strategy.

This shift we’re seeing reinforces the need for brands to challenge their traditional ways of producing and distributing their content, and the channels they’re using to market to their fans and engage audiences.

This is something the NBA are actively doing as in the last week they have unlocked over 25,000 hours of content to a select group of 6 Youtubers so that they can create longer-form videos for their communities.

This would’ve been unthinkable only a couple of years ago, and still is for some brands as their approach to rights/IP is enforcement rather than collaboration - whereas the latter could actually help to grow the pie rather than take a slice.

The quote from Bob Carney, SVP Social & Digital Content @ NBA summarises their thinking and the benefits well:

Empowering diverse creators with diverse audiences to work with your brand/identity/content/game and re-package it in ways that is authentic to them and their communities (with sensible guidelines in place) will only improve the delivery of the message you’re trying to portray.

We all place value on the things said/recommended to us by people we trust, and creators have spent a lifetime curating their audience around their passion points, so can be powerful partners when they’re given the tools and access to activate their community properly around a campaign or cause.

So whether you’re Kamala Harris, the NBA, or anyone else for that matter, leveraging UGC is a strategy that is here to stay.

Cleveland Cavaliers launch loyalty program ‘Cavs Rewards’

The Cleveland Cavaliers recently launched an updated Cavs Rewards program for the 2024-2025 NBA season, offering fans various incentives to engage more deeply with the team. This revamped rewards system is designed to enhance fan experiences both at games and online, allowing participants to earn points through activities like attending games, purchasing tickets, and interacting with team content. Points earned can be redeemed for exclusive merchandise, event access, and unique in-game experiences. The program is part of a broader initiative by the Cavaliers to boost fan engagement and loyalty by rewarding active participation in the team’s community.

Why you should care

Incentivising and rewarding behaviours that you’d like to see as a brand is undoubtedly where things are heading.

And I think the Cavs have this completely right by focusing on their local community and partners as the centrepiece of the program. 

It works that fans can earn Cavs Points by signing up for a free Cavs Rewards account and linking an existing debit or credit card to the program. Once registered, fans can begin accumulating points by making purchases at preferred Cavs locations such as:

• In-Store & Online Purchases: Fans can shop at any participating partner location or online with the credit or debit card they have linked to their Cavs Rewards account. 

• Select In-Venue Purchases: Fans can earn points with select purchases made at the Cavs stadium - including concessions and bars in the arena and Center Court, the Cavaliers team shop. 

• Specific Products: Fans can earn points by purchasing eligible consumer packaged goods and scanning their receipts through the Cavs Rewards experience.

I’m a fan of the approach because:

A) It helps to drive tangible outcomes for the Cavs local community partners (which should help drive renewals)

B) It places the Cavs at the centre of commerce within the city (fans will be incentivised to shop where they are rewarded, which may help to drive more businesses to become part of the Cavs ecosystem)

C) They’re smartly leveraging web3 to streamline and enhance the rewards experience, but not making the technology the centrepiece of the program

As the industry looks for ways to diversify its revenue and reclaim ownership of its fanbase, loyalty and rewards programs are a very logical first step to help capture data, encourage behaviour that benefits the organisation (and it’s partners) and provide a true value-exchange for fans for actions they have been completing for many years without reward.

As I wrote about two weeks ago in edition #31, the approach to rack & stack their audience, find out who their super fans are, what they’re spending their time and money on, and then using that insight to service the fanbase more efficiently and deliver more of what they want (and likely expect) is a necessary step to help brands reconnect on a deeper level with their fanbase.

And for the Cavs fans that accumulate points, they will have the opportunity to redeem them for an array of rewards such as:

• Game Day Tickets

• Exclusive VIP Experiences: Behind-the-scenes access, meet-and-greets and other unique opportunities.

• Official Team Merchandise

• Cavs Memorabilia: Limited-edition items and autographed gear.

• Digital Badges: As fans accumulate points and complete certain actions, they will be able to unlock limited edition digital badges (powered by Avalanche), commemorating their achievements and fandom.

The shift to a direct-to-consumer business model may not be quick for the industry - it may even not happen to the degree we think it will. But having direct touch points like loyalty & reward programs that can enable organisations to have improved insights on their fanbase as well as the opportunity to drive further engagement with the local business community and global sponsors feels like a smart hedge to make, so kudos to the Cavs on taking the first step.

In other news this week…

A quick round-up of other stories you should be across from the past 7 days:

• MLS partners with Sweet to launch MLS Quest

• OpenAI & Agora collaborate for real-time AI Hackathon

• Coinbase becomes Official Cryptocurrency Platform And Blockchain Partner of Golden State Warriors 

• Meta Quest partner with Wrexham AFC as Official Mixed Reality partner

• Buenos Aires launches Digital ID service on zkSync

• Universal Music partners with AI company building ‘ethical’ music generator

• The Simpsons are to host Monday Night Football on December 9th

Working on anything cool, or have a press release you would like us to cover? Send it in for the chance for it to be covered in next week’s edition!

That’s all for now - thanks again for reading the latest edition of The SEG3 Report!

If you enjoyed it, please consider sharing it with a friend or colleague 🤝