Are Premium Streaming Sports Rights Deals Worth the Investment?
Premium streaming platforms are making a big bet on sports rights—but are they paying off? During a recent debate at Streaming Media Connect 2025, experts weighed in on the topic.
Michael Frank from Omdia kicked things off by questioning if the surge in subscriptions to platforms like Netflix and Prime Video is directly linked to their sports content. He pointed out that people always have an appetite for sports, leading to continuous growth. Is sports the last piece of content people are willing to pay for?
Jason Thibeault, CEO of the Streaming Video Technology Alliance, focused on ad revenue as the main driver for purchasing sports rights. He explained that live sports bring in large audiences simultaneously, resulting in higher ad revenue and better targeting. This makes sports a lucrative investment for streamers.
Joe Caporoso from Team Whistle echoed the importance of ad revenue but acknowledged the shift away from ads in streaming. He highlighted the huge monetization potential in sports, calling it the last bastion of appointment viewing.
Corey Smith from Tata Communications emphasized the financial necessity of ads to offset the high costs of sports rights. He emphasized that subscription revenue alone wouldn’t cover the expenses. In the end, the experts agreed that ads are crucial to profitability, even if they risk alienating sports fans.
Thibeault summed it up by highlighting the complex nature of the issue. In the end, streaming sports rights, like many aspects of the industry, present a challenging dilemma. Stay tuned for more insights and discussions in May 2025 at Streaming Media Connect.