By 2027, revenue from sports streaming services overall is expected to reach 22.6 billion, according to data from Parks Associates.
Purchasing sports media rights is becoming a leading acquisition strategy for services to gain new customers, according to Eric Sorensen, Parks Associates’ streaming video director. In addition, due to the “limited inventory” of sports, the rights aren’t cheap. This greatly reduces the companies who can afford to buy them. The premium charge to watch sports on these services is a way for the streamers to recoup finances.
Sorensen said the “long game” for many services is to create a sports tier or bundle within their service for an additional fee. We’re already seeing evidence of streamers playing the “long game” Sorensen described.
From the article, "NFL Football is Winning More Fans Thanks to Widening Broadcast TV and Streaming Reach" by Shelby Brown
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