The way people watch television has changed. People no longer have to work on the networks’ timelines. Instead, thanks to on-demand streaming options, people can watch their shows whenever is best for them. That is why the exclusive rights to event programming, like live sports, have become so valuable to linear and digital TV networks.
Pro leagues and major college conferences have already enjoyed massive paydays, but S&P Global Market Intelligence thinks it is just the beginning. According to their data, live sports rights will generate more than $30 billion annually by 2025.
In recent years, major new deals have been signed by the NFL, the Big Ten, and the NHL. The Pac-12 is currently searching for its next TV deal while negotiations on new TV contracts for the NBA and NASCAR are expected to begin soon.
Streaming platforms entering the fight for these rights have increased their value in a major way. The NBA, for instance, would reportedly like to generate $75 billion with its next TV deals.
While that is good for the leagues, Axios’s Tim Baysinger wonders how good it is for linear networks. If they cannot justify the costs, could fans be asked to open their wallets to follow their teams?
“It’s getting harder for media companies, especially those tied to the fading cable TV bundle, to justify these high prices,” he writes. “This threatens to push sports into a subscription-based environment.”
