Streaming Platforms Transforming Live Sports Media Landscape

Streaming platforms are revolutionizing live sports consumption with substantial media rights investments.

### Streaming Revolution: The Impact of New Media Rights Deals in Sports
* 🏀 In July, the NBA announced a **groundbreaking media rights deal valued at $76 billion over 11 years**, with Amazon committing **$1.8 billion annually** to stream select live games.
* 📺 This deal highlights the **increasing penetration of streaming platforms into live sports**, with Amazon already holding rights to other major events like the **UEFA Champions League** and the **NFL**.
* ⚽ AppleTV+ is also involved, carrying **Major League Baseball games** in the US and securing **global rights for Major League Soccer**.
* 📈 YouTube entered the fray last year with a **$14 billion contract** to stream NFL games, while Netflix plans to showcase live WWE wrestling starting in 2025 for **$500 million annually**.
* 💻 Historically, streaming services hesitated to invest in live sports due to **high rights costs and technical challenges**, but advancements have made live streaming **more viable**.
* 📊 Live sports not only attract **diverse demographic segments** but also drive **subscription growth and ad revenue**, making them appealing to streamers.
* 🌍 With Netflix boasting over **270 million subscribers**, the global reach of streamers is enticing for sports leagues, despite traditional broadcasters like Fox and Disney launching **competing platforms**.
* 💰 However, the competition has escalated prices, with the US sports rights market seeing a **54% increase** from 2019 to 2024, contrasting sharply with the overall TV industry growth of **15%**.

In July this year, the NBA announced a blockbuster new media rights deal worth $76bn over 11 years. As part of that deal, Amazon will pay the NBA $1.8bn per year to screen a selection of live games in the US and internationally. It’s just another example of the way streaming platforms are pushing into live sport globally. Amazon has other deals to show the UEFA Champions League, the NFL, and the French Open tennis tournament. AppleTV+ carries Major League Baseball matches in the US and has global rights to Major League Soccer. Last year, YouTube began showing NFL matches through a seven-year contract worth $14bn. And earlier this year, Netflix announced it would be screening live WWE wrestling for $500mn a year from 2025. Until recently, streamers had often avoided live sports, largely due to the high costs of rights and technical challenges involved. But the technology has improved to the point where former sticking points such as picture quality and time lag are now acceptable to many fans.

And while expensive, live sports are a powerful way of targeting multiple demographic segments and driving new subscriptions. Ad revenues are also becoming an increasingly important component of streamers’ income, and few things can attract advertisers like live sporting events. For the sports leagues, streamers have a global reach that is particularly attractive. Netflix alone has more than 270 million subscribers worldwide. But traditional broadcasters are fighting back. Earlier this year, Fox, Disney, and Warner Bros announced the launch of a new streaming platform, Venu Sports, although the venture is tied up in a legal challenge alleging it is anti-competitive. Those three companies own 55 percent of US sports rights. Meanwhile, in the UK, Sky Sports launched a new sports streaming service this summer to run alongside its traditional broadcast platform. Another challenge for streamers is that their interest in sports rights has helped drive up prices. For example, between 2019 and 2024,

the value of the US sports rights market grew by 54 percent, compared to an overall TV industry revenue growth of just 15 percent. While streamers’ spending on sports rights has soared recently, that explosive growth may ease off in the coming years, not least because many of the major sports rights deals still have years to run before renewal. But despite that, we may have reached a tipping point in the way viewers consume live sports.

What’s behind streamers’ hunger for live sport? | FT Tech

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Streaming Platforms' Impact on Live Sports

The NBA's new media rights deal with Amazon, worth $76bn over 11 years, highlights the growing influence of streaming platforms in live sports.

Amazon, AppleTV+, YouTube, and Netflix are all making significant investments in sports broadcasting, driven by the potential for new subscriptions and ad revenue.

However, traditional broadcasters are also responding with their own streaming services, leading to a competitive landscape for sports rights.

The US sports rights market has grown by 54%, outpacing the TV industry revenue growth of 15%.

Streamers' spending on sports rights has surged, but this growth may slow down as major deals have years left before renewal.

However, a tipping point in the way viewers consume live sports may have been reached.