Sports rights are more fragmented than ever – who are the winners and losers?

As streaming giants, traditional broadcasters and niche entrants battle over sports media rights, more viewers are watching sports than ever. Dani Benowitz, global and US president, MAGNA, explores how viewers benefit from higher-quality broadcasts and more options, while sports organizations and streaming services gain new audiences and subscribers, but the fragmented landscape poses challenges of its own.

As streaming giants, traditional broadcasters and niche entrants battle over sports media rights, more viewers are watching sports than ever.

Viewers benefit from higher-quality broadcasts and more options, while sports organizations and streaming services gain new audiences and subscribers. Brands partnering with streaming services enjoy engaging ad formats and precise audience targeting.

However, the fragmented landscape poses challenges for platforms seeking ROI, partners allocating advertising spend, and fans managing multiple subscriptions.

Why are streaming services targeting sports rights?

In recent years, major streaming platforms have had great success in bringing behind-the-scenes sports documentaries to screens around the globe, growing the global following of various sports teams (think Amazon’s All or Nothing series, Disney’s Welcome to Wrexham, and Netflix’s Full Swing and Drive to Survive).

Alongside these documentaries, streaming platforms have also made inroads into live sports media rights, hoping to draw in new subscribers and attract viewers of traditional broadcast TV.

Sports drive the most reliable scale and audiences in media, which is why we see these companies pay up for sports rights at the expense of other programming such as scripted entertainment.

Sports organizations are undoubtedly winning

The clear winners from the fragmentation of sports broadcasting are sports organizations and teams. Increased competition continues to drive up the price of media rights, all the while growing the global appeal of their product.

Sports leagues and organizations are also exploring direct-to-consumer offerings, bypassing traditional broadcasters, and partnering directly with streaming platforms to distribute their content, giving them greater control.

Streaming platforms and traditional broadcasters do battle

Major streaming platforms are competing not only against each other, but against traditional broadcasters and emerging specialized streaming services such as DAZN, which focuses on specific sports or leagues (ie boxing).

The bet is a big one – competition is driving up the price of sports rights and streaming platforms will need to make a return on this investment, through their subscriber base, brand partnerships, and ad sales.

Disney, Fox and Warner Bros Discovery React

In a move to address the fragmented sports rights landscape, Disney, Fox, and Warner Bros Discovery launched Venu Sports in early 2024, a joint venture (JV) that combines 15 sports TV networks under one roof. Initially, ads will run in the same way as on linear TV, before shifting to dynamic ad insertion (DAI) after six months, enabling better targeting for advertisers. In August, a judge delayed Venu’s launch by granting FuboTV’s request for a preliminary injunction against the JV, with Fubo arguing the bundle would violate anti-trust laws. However, this decision is a temporary delay, not a permanent block – a trial date for the anti-trust lawsuit has been set for October 2025.

Cord-cutters benefit

For cord-cutters, defined as people who have moved away from cable or satellite TV subscriptions, streaming platforms enable them to access their desired content without paying for extras. And typically, these are younger audiences, ages 18-34, interested in sports more so than news.

Streaming platforms also cater to fans who are seeking a future-facing viewing experience, which is available across a variety of mobile devices, as well as those investing in new tech, eg 4K/8K video, VR experiences and interactive features.

As viewing behaviors change, traditional cable sports must adapt to stay competitive. Otherwise, the future of traditional cable remains uncertain amidst these shifts.

How do fans fare with rights split?

The downside to the current streaming landscape for fans is the ever-increasing number of subscription services required to watch multiple sports, and sometimes even to follow the same team.

The number of places where the 272 regular season NFL games are set to be aired is now seven: four broadcast TV networks, with a handful airing on streaming.

In July, the NBA officially announced a record 11-year media rights deal with Disney, NBC and Amazon, which successfully outbid incumbent Warner Bros Discovery. NBC and Amazon’s streaming capabilities were a major decision in winning those rights.

Fans and viewers will ultimately decide how many streaming subscriptions are too many, and whether the proliferation of so many different platforms is detrimental to their sports viewing experience. Will new tech and more customizable viewing experiences prove to be enough?

Should it survive legal challenge, the Venu JV will provide an interesting litmus test for consolidation in the industry and may pave the way for more strategic partnerships.

What does this mean for media providers and advertisers?

To navigate an evolving market, media providers will need to diversify their distribution channels, incorporating streaming platforms, social media and digital services alongside traditional TV broadcasting to reach a broader audience and cater to diverse viewing preferences.

As with the JV, collaboration with other media providers, sports leagues or tech companies could pave the way to reducing costs and offering fans more comprehensive sports coverage.

Adopting flexible pricing models, such as subscriptions, pay-per-view, or ad-supported options, will enable media providers to appeal to different consumer segments and maximize revenue.

Advertisers, on the other hand, should leverage data analytics to understand how and where sports fans consume content across various platforms, and adopt a multi-platform approach that allocates budgets across traditional TV, streaming services, social media, and digital platforms to ensure maximal reach and engagement.

Measuring the effectiveness of campaigns is essential for advertisers, and providing robust measurement tools and data points will differentiate those media providers that invest in this area. Monitoring industry trends and consumer preferences, and testing new technologies, formats and partnerships will help advertisers stay ahead of the game.