The Advantages and Disadvantages of Streaming Sports
The landscape of sports streaming has evolved immensely, offering both advantages and disadvantages to fans and viewers. With the increasing number of media providers investing in exclusive streaming rights, the cost and complexity of accessing sports content have become significant challenges. While this influx of providers has been beneficial for sports leagues who earn top dollar for streaming rights, it has created a fragmented environment for sports enthusiasts to follow their favorite teams. In this article, we will explore the pros and cons of sports streaming and how it impacts viewership.
The Boon of Media Rights Competition
The competition among media providers for streaming rights has proven advantageous for sports leagues. With providers bidding large sums of money, leagues are now able to command significant revenue from streaming deals. For example, Amazon’s bid of $100 million per year for streaming F1 demonstrates the immense value attached to sports media rights. This influx of funds allows leagues to invest more in player development, infrastructure, and overall growth.
On the other hand, the proliferation of streaming providers can also benefit sports enthusiasts. It addresses long-standing complaints of certain sports lacking adequate coverage. Major League Soccer (MLS) fans, for instance, have long yearned for better access to matches, and the availability of Apple TV+ now provides them with the opportunity to watch every game. Additionally, fans of US-based cricket can enjoy more Indian Premier League (IPL) matches through platforms like Times Internet and Willow TV. The increased presence of providers broadens the range of sports content available to viewers.
The Complexities of Exclusive Rights and Fragmented Viewership
While the availability of more streaming providers may seem like a positive development, the slicing and dicing of media rights has created a cumbersome landscape for viewers. Some leagues have granted exclusive coverage rights to multiple providers, making it more challenging and expensive for fans to access the games they want to watch. Major League Baseball (MLB), for instance, has partnered with both Peacock and Apple TV+, dividing their coverage between the two platforms.
This fragmentation of media rights poses significant challenges, particularly for older and more loyal fans. The average age of MLB viewers, according to a 2017 Sports Business Journal survey, is 57 years old, which is higher than other major league sports. While MLB may hope that offering more streaming options will attract younger viewers, it risks alienating its current demographic. Many loyal fans have expressed frustration with the exclusive pay-per-view model and the additional costs associated with accessing their favorite teams.
Tweets like the following are becoming increasingly common:
“The weekly reminder, @MLB, you are screwing over baseball fans with your Sunday morning pay-per-view game. Dad’s been watching the Mets for 60 years, pays $250/month for cable, and had to pay $5 to watch the game, plus help signing up. No one in the family has the premium.” – BBK8_e (@BBK8_e)
Carving Up NFL Media Rights
The NFL is also headed down the path of dividing its media rights among streaming providers. NFL Commissioner Roger Goodell recently shared that the NFL Sunday Ticket, a popular option for fans, will be transitioning to a sports streaming service in 2023. Companies like Amazon, Apple, and Disney’s ESPN are currently competing for the rights, which may result in an additional expense for fans, with subscription prices possibly reaching around $300 per year.
In response to these changes, regional media players are entering the arena as well. NESN, for example, is planning to offer a Boston-focused streaming service for $30 per month. Bally Sports, operated by Sinclair Broadcast Group, is also set to launch a streaming service covering various regions such as Milwaukee, Detroit, Tampa, Miami, and Kansas City at a cost of $20 per month.
The Impact on Sports Bettors and the Pivot to Sports Betting
The increasing costs and complexities of sports streaming also have implications for sports bettors. Leagues and media providers recognize that individuals who engage in sports betting tend to be more dedicated and spend more time watching games. This realization has led to a shift in strategy, with leagues aiming to personalize streaming experiences for each fan.
However, it is important to note that while users can personalize their streaming experience, direct to consumer streaming platforms like Bally Sports+ do not offer betting functionalities. Instead, they direct users to licensed sports betting partners. The inclusion of sports betting in the streaming ecosystem is a significant part of leagues’ strategies, and they are banking on the revenue generated from this industry to compensate for any potential loss of viewers due to increased expenses.
This shift towards sports betting is evident in recent developments, such as the Las Vegas Raiders hiring Sandra Douglas Morgan, formerly the chairwoman of the Nevada Gaming Control Board. The NFL has also appointed its first executive devoted to sports betting, demonstrating the league’s recognition of its importance in driving engagement and revenue.
Conclusion
In summary, the world of sports streaming has experienced both positive and negative impacts due to the increasing number of media providers vying for exclusive rights. While this competition has resulted in greater revenue for sports leagues, it has led to increased costs and complexity for viewers. Boomer and middle-class fans may find themselves at a disadvantage as they navigate the fragmented streaming landscape. However, the inclusion of sports betting in the streaming ecosystem presents an opportunity for leagues and media providers to sustain revenue growth. As the industry continues to evolve, it is essential for stakeholders to strike a balance between accessibility, affordability, and personalization to ensure both the fans and the sports leagues can thrive.
FAQs
1. Will the rise of exclusive streaming rights lead to higher subscription costs?
The rise of exclusive streaming rights may result in higher subscription costs for fans who want access to a variety of sports content. With multiple providers acquiring these rights, fans may need to subscribe to multiple platforms to watch their favorite teams or leagues.
2. How will the shift to sports betting impact the streaming experience?
The inclusion of sports betting in the streaming experience is primarily focused on personalization. Direct to consumer streaming platforms may offer tailored content to sports bettors. However, it is crucial to note that betting functionality itself is not directly integrated into these platforms and users are typically redirected to licensed sports betting partners.
3. What challenges does the fragmentation of media rights present for viewers?
The fragmentation of media rights can make it more challenging for viewers to access the games they want to watch. Exclusive deals with multiple providers may result in the need for separate subscriptions, leading to higher costs. Additionally, loyal fans who have been accustomed to a particular viewing experience may find it more difficult to access the games they have been following for years.
4. How do sports leagues benefit from the rise of sports betting?
Sports leagues see sports betting as a significant revenue opportunity. By integrating sports betting partnerships and personalization options into streaming platforms, leagues aim to increase engagement and attract a more dedicated audience. The revenue generated from sports betting can help offset potential losses due to higher subscription costs or a shift in viewership demographics.
5. Will the streaming landscape continue to evolve in the future?
Yes, the streaming landscape is likely to continue evolving as more media providers enter the market and leagues explore new ways to engage viewers. It is important for stakeholders to adapt to changing consumer preferences while ensuring accessibility and affordability for fans.
