November 20, 2024
Andrew Petcash

Everything is Fragmenting: How Sports (and the world) is Breaking into Niches

I’ve been thinking about this a lot lately…

For decades, society seemed to value the centralized, the standardized, and the universal.

We tuned in to the same TV channels, bought products from big-box stores, and worked in centralized office spaces.

Consolidation has reached its peak, especially on the media side:

But now, that foundation is splintering, and we’re entering a world of niches (this is extremely evident in sports).

Let’s Dive In 👇

Shifting of the Guard

The world is shifting, and the big is breaking into the small.

Fragmentation is everywhere—and it’s changing how we live, work, play, and connect.

Here’s a snapshot of some macro shifts:

Radio → Podcasts
Search Engines →AI
Fiat → Digital Currency
In-Office → Work Anywhere
Mainstream Stores → Thrifting
Big Brands → Personal Brands
Shopping Malls → E-commerce
Big Corporations → Freelancers
Big Pharma → Holistic Wellness
Mainstream Media → Influencers
Mass Advertising → Microtargeting
Wide Socials → Personalized Algorithms
National Identity → Localized Movements
Big Box Gyms → Boutique Fitness Studios
Traditional Employment → Freelance/Gig Work
Formal Education → Tailored Learning Platforms
Centralized Platforms → Decentralized Ecosystems
Mass Appeal Entertainment → Niche Communities

Fragmentation isn’t just a trend—it’s a cultural shift driven forward by the rapid transformation in the technology space.

The beauty in all this…

Is that the fragmentation will lead to a push for new forms of consolidation, which drives acquisitions and IPOs.

It seems as if we’re entering the best time in all of history to build!

The most important variable will be distribution.

Why?

Because the costs are lower than ever before, and barriers to entry for building tech products are less than ever before (especially with AI).

A strong brand presence and deep network are the best ways to differentiate.

The Fragmentation of Sports

For decades, sports were dominated by a few centralized powerhouses.

Fans watched the same leagues, idolized the same stars, and tuned in to the same games — you rooted for whoever was on TV.

But today, just like in other industries, the foundation is splintering, and sports are becoming increasingly fragmented.

old man watching cable tv sports with granddaughter watching on tablet

Some notable examples:

Big Leagues → Niche Sports: While powerhouse leagues like the NFL and EPL dominate traditional media, smaller sports like pickleball, Formula E, and esports are building dedicated audiences. Niche leagues aren’t just surviving—they’re thriving with loyal fans and tailored sponsorships.
Team Allegiance → Player Fandom: Thanks to social media, younger fans now follow athletes over teams. Caitlin Clark and Travis Hunter are bigger brands than the organizations they play for.
Cable Deals → Streaming Platforms: Sports consumption is no longer tied to cable packages. Streaming services and platforms like YouTube and Twitch have democratized access to live sports and highlights.
Big Sponsorships → Athlete-Driven Brands: Athletes are no longer just endorsers— they’re creators, brand builders, media platforms, and investment funds.
Amateur Athletes → Pro Athletes Everywhere: NIL and sponsorship money is now available for athletes of all ages.
Prime Time Events → Year-Round Content: Fans now demand 24/7 access, from behind-the-scenes social media posts to documentaries.
Live Attendance → Virtual Engagement: Virtual watch parties, metaverse experiences, and social media commentary are becoming as important as in-stadium attendance.
Traditional Coaching → Digital Training Tools: Platforms, apps, and wearable tech are transforming how athletes train.
National Audiences → Global Fanbases: Leagues are building international fanbases, making geography less relevant.
Sports Fans → Gamified Viewers: Fantasy leagues, sports betting, and gamified experiences are turning viewers into active participants in the game.
Linear Highlights → Creator Content: Sports creators on TikTok, YouTube, and Instagram remix moments into viral content, shaping how fans consume sports.
On-course Golf → Off-Course Golf: Simulators are drastically pulling people into the digital tech world.
Retail Malls → Sports Malls: From shopping for clothes to playing sports, facilities are transforming retail areas.

Fragmentation in sports means we all have more choices than ever before…

Whether it’s a globally followed soccer league or a local spikeball tournament, there’s a sport, team, or athlete for every niche interest.

Why It Matters

This shift changes the playbook for everyone involved in sports.

For leagues, it’s no longer about dominating the masses — but creating deep engagement with core audiences.
Smaller sports have more opportunities to gain visibility and connect with sponsors.
And for athletes, fragmentation offers more control over their personal brands and revenue streams.

Change in Racquet Sports Participation (England)

Take esports as an example…

It’s a fragmented ecosystem of games, players, and communities.

Yet, this fragmentation has created a massive global audience, with each niche growing exponentially.

Similarly, women’s sports, long underserved by traditional media, are seeing surges in viewership and investment by tapping into underrepresented communities.

Fragmentation Is The Opportunity

For entrepreneurs and innovators, the fragmentation of sports opens new opportunities.

Niche sports and underrepresented markets need better technology, media coverage, and fan experiences.

At the same time, fragmentation is forcing the big players to adapt.

Whether it’s the NFL experimenting with global games or the NBA targeting GenZ on TikTok, even legacy organizations must find ways to engage with fragmented audiences.