Cisco's New Business Model: Luring Millennials to Stadiums
Cisco is currently in the throes of drastic internal restructuring and product cycle transitions under the tutelage of chief executive John Chambers. The networking equipment maker has, as a result, been struggling to find a regular cadence of revenue as it continues to evolve its product portfolio. Not surprisingly, the company has been looking for new revenue streams to replace its rapidly fading ones.
One of these involves offering added connectivity, such as HD Wi-Fi access, to stadiums to help lure back young fans. According to a recent Cisco report, one out of three college students and young professionals consider Internet access as important as food and shelter. According to the report, 57% of young fans prefer watching games at home since they view stadiums as a black hole of connectivity with limited Internet access.
Stadiums are increasingly using Wi-Fi as a churn-reduction strategy to attract and retain young fans. Cisco, together with companies such as Comcast and AT&T is at the forefront of digitizing stadiums and concert halls both in the U.S. and abroad.