“What they are doing for our fans – on a daily basis, at every one of our games, be it during the day or at night – is truly remarkable. We are able to create a better experience for our fans using this technology. Our only wish is that we had done this a little bit earlier.” Todd Goldstein, President, AEG Global Partnerships
Cisco recently upgraded the digital capabilities at STAPLES Center, one of the premier sports and entertainment venues in the world that hosts four major sports franchises (LA Lakers, LA Clippers, LA Kings, and LA Sparks) and more than 250 events a year (Grammy’s, concerts, etc.), so the venue could better service its fans.
The result? Over the past year AEG (the operator of the facility) has been able to deliver a more engaged fan experience and is seeing a strong return on its investment from the digital and dynamic menu boards at concession stands. For example, AEG saw a 9 percent increase in revenue (year over year) from concessions for Los Angeles Kings games. Even more impressive was the 400 percent increase in revenue (year over year) from select promotions offered this past season (2011).
Cisco delivered a Connected Stadium environment, including Cisco StadiumVision, an innovative digital video and content delivery system that transformed STAPLES Center and provides fans with a more memorable experience. All of this was done over the course of just a few months and AEG never missed a beat in hosting world class events at the venue.
Today more than 30 marquee properties are operating new business and revenue models with Cisco digital sports technologies at the center. From Real Madrid to the Pittsburgh Penguins to Sporting KC to Eden Park, Cisco is transforming the sports and entertainment environment around the world.
I witnessed the transformation earlier this year at the Grammy’s…and I just might have sat next to a couple of celebrities – well, that was where my friends told me I was going to sit!
“The value that we are receiving from Cisco StadiumVision far outweighs just a financial investment. We can easily justify it financially, but the value to our brand identity is immeasurable. We can demonstrate to sponsors and fans that they gain a far better experience, and there is not a more effective way to do it.” David Peart, Senior Vice President of Sales and Service, CONSOL Energy Center
As many sports organizations are finding out today, technology is a strategic investment, not an expense. The return on that investment can be immediate, powerful, and often the dividends end up reshaping the approach to fan engagement, sales, advertising and sponsorship.
The state-of-the-art CONSOL Energy Center, which opened in 2010, is home to the Pittsburgh Penguins and approximately 170 ticketed events per year. In the planning and building process, the venue decided to install a Cisco Connected Stadium platform to operate Cisco StadiumVision, an innovative digital video and content distribution system that centrally controls and delivers targeted high-definition video and highly relevant digital content to guests. The venue put 781 HD screens and 44 digital menu boards throughout its 18,000+ seat venue, and over the course of the last year the system has paid incredible dividends.
Today the Penguins are reporting that the team and facility have seen a 200% increase in the number of advertisers and a 300% increase in concourse advertising and sponsorship revenues – all directly related to StadiumVision.
Perhaps even more valuable is that the Penguins young, highly connected fan base has had a more memorable and impactful brand experience with 80 percent of fans retaining the digital content they viewed.
“We understood the capabilities of Cisco StadiumVision when it was purchased, but it completely changed our way of thinking to ‘now what else can we do with it?’ The more interactive we become with the StadiumVision system, the more often new things come to mind. Advertising is a moving target, and the Cisco StadiumVision system gives us the ability to innovate at a more rapid pace over time.” Erik Watts, Senior Director, Technology, Pittsburgh Penguins
What a powerful statement – Cisco technology fostering a wellspring of new ideas and creative capabilities…it orchestrated a shift in the mindset of the organization, thereby setting them on a new course to greater profitability and opportunity.
Later this week, keep a look out for a follow-up post and video on another marquee venue here in the United States seeing incredible returns from this Cisco Sports & Entertainment technology consultation and deployment.
As David Holland said in his last post we have reached a tipping point.