In July 2023, cable and broadcast television viewership in the U.S. dropped below 50% of total TV usage for the first time, a stark indicator of shifting media consumption patterns, according to Georgetown Law Technology Review. Streaming services simultaneously accounted for a record 38.7% of total TV consumption during the same period, according to Georgetown Law Technology Review. This fundamental shift in consumption creates fertile ground for new players and technologies to redefine sports media economics, with AI-led systems altering the financial models of live sports media, as reported by Exchange4Media.
Live sports viewership remains incredibly high, but the traditional broadcast channels that historically delivered these events are rapidly losing market share to streaming platforms. Even content as powerful as regular-season NFL games, which attract 16 million viewers, cannot prevent the migration to fragmented digital platforms.
The landscape of sports broadcasting will likely become dominated by tech companies leveraging exclusive content and advanced AI to create highly personalized and interactive viewing experiences, potentially at the cost of universal access.
1. Exclusive Sports Streaming Rights Deals
Best for: Sports leagues seeking new revenue streams and tech companies aiming for subscriber growth
Major sports leagues are increasingly granting exclusive rights to streaming platforms, moving away from traditional broadcasters. The NFL granted Amazon Prime exclusive rights to air Thursday Night Football in March 2021, according to Georgetown Law Technology Review. This deal has since been updated. Major League Soccer (MLS) followed suit, giving exclusive rights to Apple TV in June 2022. This deal has since been updated. World Wrestling Entertainment (WWE) provided Netflix with exclusive rights to its flagship 'Raw' show in January 2024. This deal has since been updated. Streaming services accounting for a record 38.7% of total TV consumption in July 2023, while cable and broadcast viewership dropped below 50%, directly alters the economics of live sports media.
