Changing the revenue channels for sports broadcasting

A quick review of some of the potential scenarios for the future of sport broadcasting.

For a while now, those at the top of elite sport have been impervious to adapting the traditional broadcast model (on which their fortunes have been built). However, COVID has highlighted fragilities in the foundations, causing the penthouse-dwellers to fret. So, “What does the future of sports broadcasting look like?”

Here’s 3 potential scenarios; 

  • Incentive-based profit-sharing model

Inspired by the commercial model established between music labels and music streaming services such as Spotify, DAZN aims to redefine the sports rights modeland move away from legacy arrangements based solely on fixed license fees.

Earlier this week, DAZN and J League announced a two-year extension and restructure of their existing ten-year broadcast partnership. This involved a reduced rights free, but also included an incentive-based profit-sharing model which could boost the value of the contract overall. 

  • Clubs create their own channels  

Inter Miami have become the first club in Major League Soccer (MLS) to roll out their own streaming platform to air locally broadcast matches for free (to fans residing within a 100-mile radius of the city), according to a report from SportsPro.

  • Free, ad-supported sports streaming 

SportBusiness recently announced that SportsTribal TV, a free, ad-supported sports streaming service that will use Red Bee Media’s OTT platform, is set to launch later this year.

Not all sports teams and leagues have the financial and technical resources to launch their own direct-to-consumer OTT offering, therefore, free ad-supported sports streaming from SportsTribal TV could be the answer to provide them with a wide reach while also monetising their content.   

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