One of the biggest challenges and opportunities in sports media and technology in the coming years will revolve around consumer data and tracking. Who has it, what do they have, how is it being used, when will it be used, how secure is it, can it be monetized and when…are all very legitimate questions not just for consumers, but for teams, leagues and brands as the battle for both a better user experience and for information keeps moving in various directions.
One of the fast-moving players in the secure data world is CLEAR, and we have gotten to know their head of sports, Ed O’Brien, in the past few weeks a bit (listen to a podcast with Ed here). While we have enjoyed the ease of TSA PRE at airports (gained through a flawless sign up at Met Life Stadium before a Jets game last year), CLEAR has aggressively expanded into stadia partnerships, and the ease of use after signup at venues like Citifield and Yankee Stadium has been amazing. Where can the CLEAR business go in and around sports in the coming years? This week CLEAR announced a partnership with MLB for biometric data being used for ticketing, so that’s one area.
We thought it would be good to grab a few q’s with Ed, an industry vet who has had stops at MLB Advanced Media and Neulion before joining the company, do be more, ahem, clear on CLEAR.
For those who don’t know, explain the business model of CLEAR today?
CLEAR uses biometrics to create a connected world that is smarter and more secure. From airports to arenas, our platform powers secure, frictionless customer experiences at more than 35 airports and stadiums nationwide.
From a consumer business model perspective, CLEAR is a two-tiered freemium product. The premium, paying level is required for use at airports and also includes access to all of our sports venues. Additionally, we have a free to the consumer option which grants use of the CLEAR lane at all our sports venues. Our members can easily upgrade from the free to paid level. Today, we are available at 25 airports and partnered with 13 sports teams nationwide.
How is it different from others in the market?
Our number one priority when evaluating a potential partnership is the integration opportunity to improve the fan experience. We are focused on using biometric technology to make the fan experience safer, faster and more enjoyable at the venue. We would not enter into a partnership that did not include fans being able to use CLEAR at the venue from day one.
You have team partnerships, how do they work and where else can you grow the sports space?
Our team partnerships are mutually beneficial with a focus on leveraging CLEAR technology to improve the in-venue experience. Teams are challenged with a macro level issue of fans having so many consumption options outside of going to a game. Making the venue experience as safe, fast and enjoyable as possible will help teams to keep the venues full. Our growth in the sports space will be focused on adding new teams/venues and additional touchpoints, past entry, within a venue including ticketing, age validation for alcohol sales and payment. The goal is to create a fully walletless experience.
What is the marketplace like for the technology; how will it extend beyond sports?
The demand for consumer biometric technology is growing rapidly and CLEAR has been the industry pioneer for years. With the current state of events, the need for increased safety is paramount across so many verticals. Additionally, the requirements from consumers for faster options across many parts of their lives is growing and sometimes those two demands can be difficult to execute on simultaneously. Biometrics provide the safest method of speeding up these processes. We are exploring extensions past airports and sports in many verticals where positive identity, ease of use and speed are requirements.
What has been the consumer response to date?
We have received a great response from our members and fans. We see an increased satisfaction rate the more times a member uses CLEAR. They come to expect that consistent, predictable experience every time they come to the venue. Additionally, the network effect of having the same experience and option across multiple venues and verticals (airports and sports) leads to higher NPS.
In an age of consumer ID protection, how do you alleviate concerns over theft?
Privacy and data security are at the center of everything we do at CLEAR. Whether boarding a plane or making a purchase, our members rely on us to keep them—and their information—secure. We are fully committed to protecting our customers’ data in all our technology systems and operations processes. A few examples include:
- Our biometric platform is SAFETY Act Certified as a Qualified Anti-Terrorism Technology
- Biometrics are encrypted at all times, in transit and at rest
- We operate a closed network meaning it is not exposed to the internet and this network is controlled and managed by CLEAR
Our team is dedicated to studying the evolving environment around us and evaluating opportunities to continue strengthening our systems.
Is the CLEAR technology sponsorable for teams and buildings?
To date, we have not sponsored the technology but we are starting to explore those conversations as the product evolves and usage grows.
Who controls the data?
CLEAR controls the data and has very strict guidelines. CLEAR’s robust privacy policy ensures that member data is not shared with any third party inappropriately. CLEAR’s never sells or rents member data. We also never share biometrics with any third-party.
If you look at this fast moving business in 18 months where will people see CLEAR they don’t today?
Overall, people will see CLEAR at verticals outside of airports and sports which will increase that network effect that we discussed. In sports specifically, you’ll see the expansion into ticketing and concessions integration to create that single option (biometrics) to complete a multitude of transactions across an event. These new touchpoints will be CLEAR integrating as the identity and safety layer into the current provider.
