Alternative Television Sports Distribution Shaping Up Due to Cord-Cutting

Alternative Television Sports Distribution Shaping Up Due to Cord-Cutting

The battle for TV sports distribution rights is heating up, with streaming services and traditional TV distributors battling to get their hands on the best live sports content. As the NAB Show Sports Summit kicks off, the race to secure premier live TV sports rights is gathering momentum, reshaping how sports content is created, delivered, and consumed across various platforms.

"The competition is fierce, with over $12 billion expected to be spent this year on sports rights," says Cathy Rasenberger, co-founder of media consulting firm Rasenberger Media LLC. Streaming services are aggressively chasing national live sports properties, a trend highlighted by a recent Nielsen Gracenote report. Five leading SVOD services—Amazon Prime Video, Apple TV+, Disney+, Netflix, and Paramount+—have increased the volume of live sports programming available via their services by a whopping 72% since 2024, according to the report.

"Live sports programming continues to be a critical driver of growth, retention, and engagement for streaming services," says Gracenote Chief Product Officer Bill Michels. Streaming services are becoming a major player in the distribution of live sports content, as evident in Amazon's 11-year deal for NBA rights beginning in 2025-26 and Netflix's acquisition of exclusive U.S. rights to the FIFA Women's World Cup in 2027 and 2031.

Streamers are also making a play for Major League Baseball's upcoming lineup of games available after the 2025 season. ESPN opted out of its current baseball television deal, which would have run through 2028, creating an opportunity for streamers to move in. The regional sports business sector is also undergoing changes as teams explore more cost-effective ways to reach their fans beyond the struggling pay TV RSN model.

However, even with streaming's rise, TV sports analyst Lee Berke says that broadcasters and traditional TV providers remain essential to reach both loyal and casual fans. "Streaming is critical in reaching the younger demographic and for selling advertisements and digital ad sales," Berke notes.

Meanwhile, Free Ad-Supported Television (FAST) channels are emerging as another platform for sports distribution. The hours of live sports content offered on FAST channels increased by 65% in 2024, as more major sports properties strike deals with these platforms. The Super Bowl, for example, was live on Tubi TV in 2024, generating 13 million viewers.

This heated competition between streaming and linear broadcast and cable will have significant ramifications on the consumption of live sports content as fans watch their favorite teams across multiple platforms. As a result, sports programming will continue to evolve, offering more personalized, flexible, and immersive experiences for viewers while driving innovation in the sports broadcasting industry.

1. Cathy Rasenberger suggests that the competition for TV sports distribution rights is intensifying, with an estimated $12 billion to be spent this year.
2. Streaming services are significantly increasing the amount of live sports programming available, with a 72% jump since 2024, according to a Nielsen Gracenote report.
3. Gracenote's Chief Product Officer, Bill Michels, stated that live sports programming is crucial for streaming services, driving growth, retention, and engagement.
4. Amazon and Netflix are among the streaming services aggressively pursuing live sports content; Amazon has secured an 11-year deal for NBA rights starting in 2025-26, while Netflix acquired exclusive U.S. rights for the FIFA Women's World Cup in 2027 and 2031.
5. Streamers are also eyeing Major League Baseball's future lineup of games, as ESPN opted out of its current baseball television deal, potentially paving the way for streamers to enter the scene.
6. FAST channels are another emerging platform for sports distribution, with live sports content on FAST channels increasing by 65% in 2024, as more major sports properties strike deals with these platforms.
7. The increased competition between streaming and linear broadcast and cable will influence the consumption of live sports content, leading to continued evolution in sports programming, offering more personalized, flexible, and immersive experiences for viewers, and driving innovation in the sports broadcasting industry.

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